The Federal Government, yesterday, admitted that the state- controlled Transmission Company of Nigeria (TCN) remains the weakest link in the energy chain, and as such, must be split into two separate entities for efficiency.

While the generation aspect of the power sector is controlled by the private sector, 40 per cent of each of the 11 distribution companies (DisCos) is held by the government, as well as the transmission segment.

Minister of Power, Adebayo Adelabu, who was speaking at a programme, stated that TCN would be unbundled to align with the Electricity Act 2023 and the industry’s demands.

“It is time to restructure the Transmission Company of Nigeria (TCN) into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP). This restructuring must synchronise with the evolving landscape of state electricity markets, addressing calls for the decentralisation of the national grid into regional grids interconnected by a new higher voltage national or super-grid,” he said.

Coming in the wake of repeated failing of the national grid, the minister said the government was deciding on how to handle subsidies, cross-subsidies and Rural Electrification Agency (REA) along with emerging state markets.

Adelabu, at the Ministerial Retreat on Integrated National Electricity Policy and Strategic Implementation Plan, said increasing the country’s Gross Domestic Product (GDP) to $1 trillion by 2030 as projected by President Bola Tinubu, would require massive investments in electricity provision nationwide.

He stressed that Nigeria now generates over 98 per cent of electricity through renewable energy, as against the 70.5 per cent generated last year.

Adelabu said the Federal Government must work with the states and local councils to increase coverage and distribution of electricity nationwide.

He advised that the states, council areas and DisCos must collaboratively invest in reinforcing and extending local distribution infrastructure in a way that enhances competition wherever possible, while also recognising the equitable vested interest that states have, historically, had in the shareholding of the distribution companies.

In his remarks, Minister of the Economy, Wale Edun, said privatisation of the power sector had performed poorly.

Minister of Budget and National Planning, Abubakar Atiku Bagudu, noted that of the $100 billion investment in power yearly, only 14 per cent comes from the public sector.