The immediate past managing director of the Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo, has called for the adoption of an Independent Transmission Project (ITP) model within a public-private partnership (PPP) framework to address Nigeria’s persistent electricity deficit.
Ugbo, now a senior partner at Power Matters Consulting, made the recommendation during a power sector summit organised by the House of Representatives Committee on Privatisation and Commercialisation.
He argued that the national treasury cannot fund the extensive rehabilitation and expansion required to modernise Nigeria’s electricity transmission.
Transmission, he noted, remains the weakest link in the electricity value chain, impeding efforts to achieve a stable and reliable power supply.
The summit was convened to assess the progress of ongoing power sector reforms, address persistent challenges, and explore practical strategies for improving sector performance.
In his presentation on the role of PPPs in revitalising Nigeria’s electricity sector, Ugbo observed that while the generation and distribution segments have undergone substantial privatisation, the transmission segment remains wholly owned and operated by the Federal Government.
The arrangement, he explained, continues to constrain the sector’s overall efficiency and performance. He argued that transmission was ripe for PPP intervention, particularly through the ITP model, which offers a pathway to attract private sector investment and technical expertise to expand and modernise the national transmission infrastructure.
“This model has been successfully implemented in countries such as Brazil and India, where private capital significantly improved transmission infrastructure under well-defined regulatory frameworks,” he said.
Ugbo highlighted that the Electricity Act of 2023 provides a strong foundation for such innovation, establishing a clear licensing regime for independent transmission providers.
“Given the enormous capital required to overhaul Nigeria’s transmission infrastructure,” he said, adding: “It is clear that public funding alone is insufficient. Mobilising private sector finance through the ITP model is, therefore, essential.”
The Federal Government has set an ambitious target of generating 30,000 megawatts of electricity by 2030, a goal that will require an estimated investment of $262 billion. Of this, the Transmission Company of Nigeria (TCN), which is solely responsible for electricity transmission, requires about $2.2 billion to execute 149 priority projects aimed at enhancing transmission capacity.
Ugbo, an infrastructure regulation expert, noted that the NDPHC had already delivered several high-voltage transmission projects, demonstrating the feasibility of third-party collaboration, particularly with private sector partners, in delivering critical transmission infrastructure.
For the ITP model to succeed, he stressed, there is a need for commercially-viable project structures with equitable risk allocation.
This must be underpinned by strong political will, coherent policy direction, and robust regulatory oversight to ensure a stable and attractive investment environment,” he said.
Ugbo likened the ITP model to a transmission-focused counterpart of the Independent Power Producer (IPP) model, which had earlier played a transformative role in Nigeria’s power sector.
IPPs such as AES, the Shell JV IPP, Agip JV IPP and more recently the Azura-Edo IPP, he said, were instrumental in building investor confidence and catalysing private investment in electricity generation.
The early ventures laid the groundwork for the eventual privatisation of PHCN’s successor generation companies, many of which have since expanded their installed capacity and improved operational performance in line with contractual expectations.
He noted that the ITP model could modernise Nigeria’s transmission infrastructure through private sector participation, guided by clear regulation and commercially bankable structures.
He urged Generation Companies (GenCos) to act as “first responders” in championing the ITP model, given their direct interest in expanding evacuation capacity and improving overall system efficiency.
