Nigeria’s power transmission sector is facing fresh scrutiny as an energy expert, Kunle Olubiyo, has alleged that six years of mismanagement, wasteful spending, and institutional capture have pushed the Transmission Company of Nigeria (TCN) to the brink of collapse.
Olubiyo, who is also President of the Nigeria Consumer Protection Network, described developments within the agency since 2020 as a “very serious matter,” warning that recurring patterns of questionable expenditures and weak investment in core infrastructure have undermined the stability of Nigeria’s national grid.
His claims align with concerns raised by the Nigeria Labour Congress (NLC), which in a formal petition accused officials within TCN of orchestrating what it described as an “imminent, large-scale heist” capable of crippling the company’s operations.
Billions Spent, Little Impact on Grid Performance
According to Olubiyo in a reaction shared with Datavox Media on Wednesday, the period between April 2020 and March 2026 has been characterised by spending on projects that have little or no direct impact on transmission efficiency. He alleged that the company embarked on “frivolous” and, in some cases, “non-existing emergency contracts,” diverting resources away from critical grid maintenance and expansion.
He cited contracts for cleaning services running into several billions of naira, alongside nationwide landscaping of transmission corridors and substations—projects he argued do not address the fundamental challenges of vegetation management and grid reliability.
Olubiyo further criticised large-scale fencing contracts across substations nationwide, claiming they were awarded at costs he described as excessive and unjustifiable when compared to global benchmarks. He maintained that such expenditures do not align with TCN’s engineering and operational priorities.
“The so-called projects may not even be done… as with past emergency exercises… which usually ended as a ruse and mirage,” he said, suggesting a pattern of inflated or poorly executed interventions.
Questions Over Legacy Funds and Utilisation
The expert also raised concerns over financial stewardship, noting that former Managing Director Usman Gur Mohammed reportedly left about $480 million in TCN’s coffers in 2020.
He argued that despite the availability of such resources, there has been no commensurate improvement in transmission infrastructure, with key investments in grid expansion, maintenance, and system protection allegedly neglected.
Instead, he said, funds were “misapplied or misappropriated to non-relevant areas,” leaving critical equipment such as transmission towers, breakers, and protection systems in deteriorating condition.
Labour Movement Raises Alarm Over
“Systematic Disembowelment”
These allegations were reinforced by the NLC in its March 1, 2026 letter to the Minister of Power, signed by its President, Joe Ajaero. The union warned that TCN is being “systematically disemboweled” by insiders acting under the cover of emergency procurement.
The NLC claimed that nearly N20 billion in planned “emergency refurbishment” spending appears designed to “convert public funds into private fortunes,” pointing to specific cases involving hundreds of millions of naira allocated to single towers and substation works that it described as excessive and questionable.
It further alleged procurement irregularities, including repeated purchases of similar equipment from the same suppliers at escalating costs, describing the process as “money laundering disguised as grid expansion.”
The union warned that if such practices continue, TCN’s operational capacity could be weakened for years, leaving the national grid in a persistent state of instability.
Grid Instability Linked to Underinvestment
Olubiyo linked Nigeria’s recurring grid disturbances to what he described as sustained underinvestment in core transmission infrastructure. He pointed to frequency deviations, power swings, and repeated partial and total grid collapses as symptoms of systemic neglect.
He emphasised that vegetation encroachment, one of the primary causes of transmission faults, has not been effectively addressed, despite the scale of spending claimed by the agency.
The NLC echoed similar concerns, warning that misdirected procurement and inflated contracts could leave the grid as “a permanent patient in the emergency room,” not due to lack of technology but because funds meant for upgrades are diverted.
Governance Concerns and Tenure Controversy
The controversy also extends to leadership and governance within TCN. Olubiyo noted that the current Managing Director, Suleiman Ahmed Abdulaziz, appointed in 2020, would have spent six years in office by April 2026, exceeding the standard four-year tenure.
He described the period under review as marked by “monumental failure,” alleging institutional capture involving political actors and vested interests. According to him, TCN has effectively been transformed into a “cash cow” used to service patronage networks rather than deliver on its technical mandate.
He further alleged that resources were diverted to non-core expenditures, including the purchase of high-end vehicles for political office holders, while essential grid infrastructure continued to deteriorate.
Calls for Urgent Intervention
Both Olubiyo and the NLC called for immediate intervention to prevent further decline in the transmission subsector. The expert urged anti-corruption agencies, including the Independent Corrupt Practices Commission and the Nigeria Financial Intelligence Unit, to investigate alleged financial mismanagement within the company.
The NLC also demanded a halt to ongoing procurement processes, a comprehensive forensic audit, and investigations into key officials responsible for procurement and financial decisions.
The union stressed that failure to act could lead to long-term damage to the country’s electricity transmission capacity, warning that TCN risks being “bled to death” if current trends persist.
Sector at a Critical Juncture
The convergence of expert analysis and labour concerns highlights growing unease over the direction of Nigeria’s transmission sector. As the backbone of the electricity value chain, TCN’s performance remains critical to improving power supply nationwide.
With allegations of mismanagement, weak governance, and declining infrastructure now at the forefront, stakeholders say urgent reforms will be required to restore confidence, strengthen operational efficiency, and prevent further deterioration of the national grid.
No official response from the TCN to this allegation as at the time of filing this report.
