Over #600bn Ground Rent Demand By Governors A Huge Burden..... TCN Cries Out

Engr Sule Abdullaziz addressing members of the Federal House of Representatives Committee on Power at the company's conference room on Monday in Abuja House 

"TCN has in receipt, letters from state governors demanding payment of ground rent for the company’s substations and installations." TCN managing Director, Engr Sule Abdullaziz

The demand for payment of ground rent for substations and Installations dating back to the 70's by almost all the 36s state governors has become a huge burden.

This was revelation by the Managing Director of the Transmission Company of Nigeria, TCN Engr Sule Abdullaziz when he received in audience, members of the House of Representatives Committee on Power in Abuja on Monday.

Engr Abdulaziz further disclosed that the TCN has in receipt, letters from state governors demanding payment of ground rent for the company’s substations and installations.

Speaking to the House of Representatives Committee members, he said; "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. At that time, remember that there was no TCN; they will calculate everything and send to TCN. What we have now is over N600bn, which TCN cannot pay".

Highlighting the challenges faced by the company, Engr Sule Abdullaziz stressed the list include 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.

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

Abdulaziz further pointed out the lack of modern tools, such as helicopters and drones, for effective surveillance of transmission lines.

He also lamented the delay by the Federal Ministry of Finance’s 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, the TCN MD recommended that the government make provisions for funds to complete critical projects and acquire the necessary Right of Way.

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

Appealing to the federal government, the Managing Director of the company urged the Minister of Finance, Wale Edun, Abdulaziz of the need 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.