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expansion projects. However, only ₦30 billion
was provided for the company in the 2016
budget. Even as the year comes to an end,
it remains unclear how much has actually
been released by the treasury. Promised
funding from the African Development
bank of about ₦61 billion over two years
remains undisbursed. Notwithstanding the
commissioning of key transmission projects
in Ikot Ekpene recently, efforts to remove
constraints in the transmission network have
to be stepped up by significantly increasing
funding to TCN.
Power peaks and troughs in 2016 – Source: Nigeria Electricity System Operator and SBM Intelligence
Another key action taken in 2016 included
a 45% increase in the average tariffs in
February 2016 for most classes of consumers.
However, the price increase was not enough
given analysts estimated that a price increase
of about 70% was required to meet desired
objectives. The shortfall was to be financed
mainly with subsidy from the federal
government. This did not materialise due to
falling oil receipts. A back up plan to acquire
loans from commercial banks also fell flat
because the inefficiencies in the privatised
power sector has made the Deposit Money
Banks unwilling to provide loans to Gencos
and Discos. Simply put, electricity firms
will have a tough time convincing a bank
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