TCN laments N600bn ground rent demand from state governors

The Transmission Company of Nigeria has expressed concern over the heavy burden imposed by ground rent demands, dating back to the 1970s.

This issue was brought to light by TCN’s Managing Director, Sule Abdulaziz, during a meeting with the House of Representatives Committee on Power in Abuja on Monday.

Abdulaziz revealed that TCN has been receiving numerous letters from state governors across the country demanding payment of ground rent for the company’s substations.

“We have a lot of letters from almost all the 36 governors demanding for ground rent of our substations. And these ground rents have been coming since the 70s. And that time there was no TCN; they will calculate everything and send TCN. What we have now is over N600bn, which TCN cannot pay,” he explained.

The TCN boss also highlighted several challenges currently facing the company.

These include the payment of compensation for the acquisition of transmission lines’ Right of Way for various projects nationwide, reliance on manual operations, aging equipment, and the vandalisation of transmission infrastructure.

Financial issues, exacerbated by the non-payment of debts by distribution companies , further compound these challenges.

In addition to these issues, Abdulaziz noted the lack of modern tools, such as helicopters and drones, for effective surveillance of transmission lines.

He also lamented the Federal Ministry of Finance’s delay in paying its counterpart funding, as well as the enforcement of Value Added Tax on offshore equipment, which has created bottlenecks in the progress of TCN’s projects.

To address these challenges, Abdulaziz recommended that the government make provisions for funds to complete critical projects and acquire the necessary Right of Way.

He also emphasised the need for the automation of TCN’s operations and the deployment of helicopters and drones to combat vandalism effectively.

Appealing to the Minister of Finance, Wale Edun, Abdulaziz urged the government to expedite the payment of its counterpart funds to facilitate the quick delivery of TCN projects.

“Interest of the minister is required for a Value Added Tax waiver on all power equipment at the port for quick delivery of our projects,” he added.