11 DisCos in need of N1.5trn for new transformers, injection substations—TCN
The Managing Director of Transmission Company of Nigeria (TCN), Mr. Usman Gur Mohammed, has disclosed that all the 11 Distribution Companies (DisCos) operating in Nigeria are currently shopping for $4.262 billion (about N1.549 trillion) funding for new transformers and injection substations.
Speaking at an interactive forum for retired NEPA/PHCN/TCN staff in Abuja, he said TCN launched a Transmission Master Plan in February, 2018, that showed the DisCos needed the fund to expand their networks for over 20,000 megawatts (MW) of electricity in few years.
According to him, “When we simulated our investments, we also simulated the DisCos’ investments. The investment requirement of the DisCos is $4.2bn as hard investment in injection substations, feeders and transformers.
“What we are suggesting is that the DisCos need capitalisation. Capitalisation will come with new management for efficiency.
“If government increases the capital requirement of the DisCos, they will go and look for other competent investors and we believe this is our position,” Mohammed hinted, meaning that DisCos are currently in need of heavy funding to remain in business.
Over time, analysts had been worried on why DisCos have not shown seriousness in injecting fund into their businesses which was key in the agreement signed during the privatization time some years ago.