In this exclusive interview with Sule Ahmed Abdulaziz, the MD and CEO of Transmission Company Nigeria (TCN), we unpack the intricacies of Nigeria’s recent grid collapse, the steps being taken to address it and the long-term strategies for the country’s transmission network.
In recent months, Nigeria has grappled with a severe power crisis, marked by a significant grid collapse that left millions without electricity. The situation has not only underscored the challenges facing the nation’s power sector but has also raised questions about the resilience and reliability of the transmission infrastructure.
To gain deeper insight into the root causes, the recovery efforts and the broader implications for Nigeria’s energy landscape, we sat down with Sule Ahmed Abdulaziz, the Managing Director/Chief Executive Officer of Transmission Company Nigeria (TCN). With a wealth of experience in the energy sector, Abdulaziz sheds light on the intricacies of the recent grid collapse, the steps being taken to address it and the long-term strategies for ensuring a robust and sustainable power transmission network in Nigeria.
“ We are working to establish more robust communication channels and agreements to ensure a steady and reliable supply of gas to power plants.“
Mediacy Mudekwa (MM): Please provide ESI Africa readers with a brief overview of the events that led to this crisis.
Sule Ahmed Abdulaziz (SAA): The recent grid collapse in Nigeria was primarily triggered by a series of factors, the foremost being an imbalance between electricity generation and demand. The increasing demand for power, combined with technical challenges at generation power plants, contributed to the strain on the system. Additionally, issues related to infrastructure maintenance and grid stability played a role in the cascading failure we experienced. A complete grid collapse was recorded as 11 power plants went offline due to lack of gas supply and load rejections by power distribution companies due to ageing infrastructure.
MM: Understanding these factors, how has TCN responded to the crisis, and what measures are being implemented to ensure a swift recovery?
SAA: TCN has been working tirelessly to address the immediate issues that led to the grid collapse. We immediately focused on restoring stability and ensuring that the transmission infrastructure can handle demand. Our teams conducted thorough assessments of the affected areas, identifying weak points in the system and implementing necessary upgrades.
Furthermore, we are collaborating closely with stakeholders in the power sector such as generation and distribution companies, to coordinate efforts to build resilience into the grid and map out a plan to comprehensively deal with future events.
MM: Given the recurring nature of power crises in Nigeria, what long-term strategies is TCN considering to enhance the resilience and reliability of the transmission infrastructure?
SAA: It’s imperative that we take a holistic approach to address the long-term challenges facing the power sector in Nigeria. TCN is investing in modernising and expanding the transmission network, incorporating advanced technologies to monitor and manage the system more effectively.
Additionally, we are advocating for increased collaboration between all stakeholders to streamline processes and ensure a seamless flow of power from generation to distribution. The deployment of smart grid solutions and prioritising preventive maintenance will also play a crucial role in bolstering the resilience of our transmission infrastructure.
The Nigeria Distribution Sector Recovery Programme will improve financial and technical performance of the electricity distribution companies. To turn around the Nigerian power sector, the Federal Government of Nigeria is committed to the implementation of the Power Sector Recovery Programme framework, which addresses the key pillars of sector performance:
• (Pillar I) policy and regulatory environment;
• (Pillar II) network infrastructure;
• (Pillar III) operational efficiency; and (Pillar IV) financial sustainability.
The Distribution Sector Recover Program for Result (DISREP PforR) component will provide funds to the early stages of Performance Improvement Plan (PIP) implementation to improve Distribution Company (DisCos) technical and financial performance, eventually enabling them to raise the private financing required to fully strengthen both the grid and the transmission sector.
” Creating a conducive regulatory environment and offering attractive investment opportunities will be key to attracting private sector players.”
MM: The gas supply issues you mentioned are central to the power generation challenges. How is TCN collaborating with gas suppliers and power generation companies to mitigate these issues?
SAA: Gas supply is indeed a critical aspect of power generation, and TCN is actively engaging with gas suppliers and power generation companies to address the bottlenecks in the system. We are working to establish more robust communication channels and agreements to ensure a steady and reliable supply of gas to power plants. Additionally, exploring alternative sources of energy, such as renewables, is part of our strategy to diversify the energy mix and reduce dependency on a single source.
MM: Beyond the technical challenges, there is often a lack of transparency in the power sector. How is TCN addressing issues related to accountability and communication with the public?
SAA: Transparency and accountability are paramount in fostering public trust and confidence in the power sector. TCN is committed to enhancing communication with the public by providing timely and accurate information about the status of the transmission network. We are actively working on improving our communication channels, engaging with the media and holding regular briefings to keep the public informed about the steps being taken to address challenges and improve the overall performance of the power sector.
MM: In light of the recent grid collapse, there has been increased scrutiny on the regulatory framework governing the power sector in Nigeria. What changes or reforms do you believe are necessary to create a more resilient and sustainable energy landscape?
“ TCN is investing in modernising and expanding the transmission network, incorporating advanced technologies to monitor and manage the system more effectively.”
SAA: The regulatory framework is a cornerstone of a well-functioning power sector. TCN advocates for a comprehensive review of existing regulations to ensure they align with the current challenges and future needs of the sector. This includes revisiting tariff structures to incentivise investment in critical infrastructure, streamlining regulatory processes to facilitate quicker decision-making and creating an environment that encourages private sector participation. Collaborative efforts between government agencies, regulators and industry stakeholders are essential to drive the necessary reforms.
In June 2023, President Bola Tinubu signed the Electricity Bill (now the Electricity Act, 2023) into law, therefore repealing the Electric Power Sector Reform Act (EPSRA) 2005. The emergence of the Electricity Act was the climax of a series of policy and regulatory reforms in the Nigerian electricity sector in the past two years.
The act allows constituent states within the Nigerian federation to generate, transmit and distribute electricity in areas covered by the national grid. The Electricity Act provides a detailed mechanism for the operation of an industry with a dual regulatory structure at federal and state levels. We believe that, in the long run, such policies will strengthen the grid.
MM: Given the economic impact of power outages, what role do you see the private sector playing in addressing the challenges faced by the power sector in Nigeria?
SAA: The private sector is a crucial partner in addressing the challenges faced by the power sector. TCN actively encourages private sector participation in various aspects, including investment in transmission infrastructure, operation and maintenance.
Public-Private Partnerships (PPPs) play a significant role in leveraging the expertise and resources of the private sector to enhance the efficiency and reliability of the power supply chain. Creating a conducive regulatory environment and offering attractive investment opportunities will be key in attracting private sector players to contribute to the growth and sustainability of the power sector in Nigeria.
MM: As we look ahead, what key milestones or initiatives can we expect from TCN to ensure a resilient and reliable power transmission network in Nigeria?
SAA: TCN has a comprehensive roadmap that includes both shortterm and long-term initiatives. In the short term, we are focused on stabilising the transmission network, addressing immediate challenges and improving the overall reliability of the system.
In the long term, we are committed to implementing strategic projects that will modernise and expand the transmission infrastructure, incorporating advanced technologies to ensure efficiency and reliability. Collaborative efforts with other stakeholders including the government, regulators and the private sector, are integral to achieving these milestones. Lastly, I would like to assure you and by extension, the rest of the world, that TCN is fully committed to addressing the challenges in the power sector and ensuring a reliable and stable power supply. We understand the impact of power outages on daily life, businesses and the overall economy. Our teams are working tirelessly to implement short-term solutions and long-term strategies to improve the resilience of the transmission network. ESI
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