Adelabu: TCN Requires N2.7 Trillion to Execute 149 Ongoing Projects Nationwide

•Says second phase of Siemens project to commence in Q1 

•Blames obsolete equipment for incessant power grid collapse

Emmanuel Addeh in Abuja

The Minister of Power, Chief Adebayo Adelabu, has disclosed that the Transmission Company of Nigeria (TCN) would require about N2.77 trillion to complete 149 ongoing projects nationwide, an amount bigger than the entire budget of the ministry this year.

A statement in Abuja by the minister’s spokesman, Bolaji Tunji, stated that Adelabu who spoke during a budget presentation at the National Assembly, also disclosed that the completion of the projects will help to markedly improve the country’s electricity supply.

Besides, he informed the lawmakers that approval had also been given for the commencement of the second phase of the Siemens power project under the Presidential Power Initiative (PPI) with 95 per cent completion of the pilot stage in 2024.

Aside from the pilot segment, Phase 1 of the Siemens of Germany deal focuses on quick-win measures to increase the power system’s capacity to 7,000mw, including upgrading and refurbishing existing substations, and installing new substations. The phase also includes installing transformers and mobile substations.

In addition, Phase 2 will address network bottlenecks to increase the power sector’s capacity to 11,000mw, including upgrading existing transmission substations, transformers, and transmission lines.

In the third phase, the partnership will focus on developing Nigeria’s power sector’s capacity to 25,000mw, with the upgrading and expansions to generation, transmission, and distribution.

According to Adelabu, the project will energise power supply as it would involve the construction of five substations across the nation and permanently address the issue of grid collapse.

“I am happy to appear before you today to address you on what we have been able to achieve since last year and what is expected of us as a ministry this year. For the TCN alone, we will need about N2.779 trillion to enable us to execute the about 149 projects we are currently engaged in all over the country.

“Our total budget as a ministry is not even up to this, but as the saying goes, half bread is better than none. I’m telling you so that you can be aware of the kind of money that is needed in the ministry for us to address our electricity challenges. We need your cooperation and collaboration in achieving the mandate of Mr. President in electricity supply to Nigerians,” the minister said.

Speaking further on the Siemens project, Adelabu said the substations to be built across the country would address the nation’s fragile power infrastructure, occasioned by obsolete and outdated equipment.

“The federal government is fully determined to address these challenges and issues that have been blocking our progress in our effort to provide electricity to Nigerians and our consumers. Of particular note is the grid collapse, which has to do with the obsolete and outdated equipment around our power stations.

“To practically address this, the Siemens project will come on board in the first quarter of this year. We have almost concluded the take-off of the project and it will involve building five substations across the country. This will energise our supply so that the issue of grid collapse  will be a thing of the past. By next week, we will begin the contracts for the substations to come on board,” Adelabu said.

Moreover, the minister stressed that when he was appointed, power generation was just about 4100mw but that within a year, the capacity increased by over 1000mw, and had even reached a peak capacity of 5270mw.

The improvement in generation capacity, he said,  was due to improvements  in the operation of existing power plants and the commissioning of new plants, partly driven by efforts to ensure more efficient use of existing infrastructure and completion of some power projects.

He also informed the lawmakers of the need to address the issue of vandalism as it concerns the electricity asset across the country.

“One other critical thing I want to draw your attention to is the issue of vandalism as it concerns our assets. It is important we sensitise our people against this act. We must be involved in serious advocacy on this issue.

“We must jointly address the issue of protecting the power assets. A damage to one is a damage to all, especially the transmission assets, they are so interwoven and a damage to one is a damage to all.

“In this case, we need the cooperation and collaboration of all our security agencies, the Army, the Air Force, the Navy, the Police and the Civil Defence. But more importantly,  we need the cooperation and collaboration of the office of the National Security Adviser (NSA).

“We are not just dealing with those who steal cables but bandits, who use dynamite to blow up towers and transmission lines. There is no amount we can vote for this either as a ministry or in TCN that can solve this.

“I want to assure you that on our part, the federal government is fully ready to address the issues hindering the electricity sector this year, 2025 and we hope the year will be a better one for us in the ministry.

“As I said before, I want to reiterate that we will focus on this Presidential Power Initiative (PPI) in ensuring that our grid is stable and does not suffer collapse and when it does, within the very shortest time, it is restored and brought back on board,” Adelabu added.

The minister also disclosed that the ministry will be working with local contractors in the government’s procurement plans for the year to encourage local content, grow the economy and save foreign exchange.

“I also want to let you know that we are encouraging our local contractors in providing our materials such as cables, poles and so on. This will help us to conserve our foreign exchange and reduce  the transaction cycles we often face while we import. This will save us time in our procurement this year,” he pointed out.

In his remarks, the Chairman of the Senate Committee on Power, Senator Eyinnaya Abaribe  said that there had been improvement in supply, adding however that more needed to be done in order to take Nigeria to where it ought to be.

He was supported by Senator Ashiru Oyetola, representing Osun State, who said the first appearance of the minister before the Senate Committee clearly showed  his understanding of the task before him.

“The knowledge you displayed during your first appearance shows understanding of the industry and this has been reflected in the performance of the ministry under you. I will however state that a lot still has to be done,” he was quoted to have said.

In a separate appearance at the Green chambers, the chairman of the Representatives Committee on power, Victor Nwokolo, Chairman of the Committee on Renewable Energy, Afam Ogene, among others, acknowledged the work done so far by the minister, but called for  more engagements with lawmakers.