By Milcah Tanimu
Power experts have expressed optimism that the unbundling of the Transmission Company of Nigeria (TCN) will result in improved efficiency, performance, and reliability in the country’s power sector. The Federal Government announced on December 20, 2023, that TCN would be unbundled into two distinct entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP).
Dr. Akinrolabu Olukayode, Chairman of the Customer Consultative Forum EKEDC Festac/Satellite District, highlighted the potential benefits of the unbundling, emphasizing that separating responsibilities could lead to increased efficiency and specialization. The ISO will manage the national power grid, while the TSP will focus on delivering bulk electricity. Olukayode suggested that this restructuring might enhance coordination, system management, and accountability.
However, he emphasized that the success of the restructuring would depend on factors like effective implementation, adequate resources, and proper oversight. Olukayode advised the government to collaborate with stakeholders to develop and implement effective strategies, addressing challenges and improving overall performance in the power sector.
Adetayo Adegbemle, Executive Director of Initiatives for Electricity Rights (PowerUp Nigeria), noted that while the government has announced various initiatives, there is a need for a detailed proposal outlining the benefits and implementation plans for TCN’s unbundling. He acknowledged the challenges faced by TCN but highlighted ongoing investments aimed at increasing the company’s wheeling capacity.
Adegbemle also supported the removal of the subsidy on electricity, emphasizing that government resources could not sustain the subsidy indefinitely. He noted that the subsidy, originally designed to benefit vulnerable Nigerians, was no longer effectively reaching those in need. Adegbemle concluded that the nation needed to prioritize efficiency over subsidies.