Shaking up Nigeria's power sector: a new approach
Unbundling TCN

Key questions this article answers:

  1. The TCN comprises two sub-units, one of which is a pseudo-regulator. How is the TCN structured, and what is its function?

  2. There’s a consensus in the power sector that the TCN’s structure contributes to the inefficiency in the sector. What are the merits of unbundling the TCN?

 

Two weeks ago, the Transmission Company of Nigeria (TCN) disconnected parts of two distribution companies from the national grid (Kaduna and Kano discos), plunging millions of Nigerians into darkness for over five days.

The reason? Continued failure to adhere to the market rules on payment of invoices and posting bank guarantees.

You see, while you and I are customers of the discos, the discos are customers of the TCN. The TCN’s primary role is to transmit power from the gencos to the discos. It’s an essential player in the power sector that operates the transmission grid. However, the

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Noelle Okwedy

Noelle Okwedy

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