The Transmission Company of Nigeria (TCN) has announced that the country requires around NGN1 trillion to efficiently transmit electricity through the national grid.
Despite sourcing $1.6 billion from various multilateral donor agencies, this would not be enough to stabilise the grid. For some projects, TCN has internally raised funds through the internally generated revenue and the federal government budget system, but TCN still requires another NGN600 billion, which is difficult for the federal government to provide. Investors have been invited to fund some of the projects in TCN, as they would recoup their investments over time. The alternative route for funding projects for TCN is to self-finance them, then look at the cost of energy to be wheeled on that line and spread it over a period of time, in order to facilitate the returns.