TCN capacity rises as fresh energy investment puts transmissio

Nigeria’s push to attract fresh investment across its energy sector is placing greater emphasis on the capacity of the national transmission network to absorb and deliver additional electricity as industrial and economic activity expands.

The Transmission Company of Nigeria (TCN) says its network now has a simulated transmission capacity of more than 8,700 megawatts, with over 8,500 megavolt-amperes of transformation capacity available to transmit bulk electricity to distribution companies.

The development comes as Nigeria seeks new investment in its oil, gas and wider energy sectors, with Indonesia’s state-owned energy company, Pertamina, among foreign investors examining opportunities in the country.

Pertamina is considering producing and near-production oil assets as well as participation in Nigeria’s 2026 licensing round, according to the Nigerian Upstream Petroleum Regulatory Commission. The company said it was looking to expand international upstream operations as domestic production in Indonesia declines.

While the proposed oil investments are separate from TCN’s mandate, increased industrial activity and expansion of gas-based power generation will ultimately require a transmission network capable of moving more electricity to businesses and households.

That is where the transmission system becomes critical to the broader investment agenda.

TCN said it successfully wheeled a record 5,801.84MW across the national grid in 2025, demonstrating that the network can handle higher electricity flows. The company has also been expanding and rehabilitating substations and transmission lines to remove bottlenecks.

Recent investments include the upgrade of transmission infrastructure in major commercial corridors. At Apapa Road in Lagos, TCN increased substation capacity from 60MVA to 180MVA after installing two 60MVA transformers and associated gas-insulated switchgear, providing additional bulk power capacity to one of Nigeria’s most economically important industrial and port corridors.

The economic significance is substantial. Reliable transmission is essential if additional generation capacity is to translate into actual electricity for manufacturers, logistics companies, commercial centres and households.

TCN’s expanding capacity also gives greater relevance to the government’s push for private-sector participation in electricity generation and distribution under the Electricity Act 2023. But generation investment without corresponding transmission and distribution capacity risks leaving more electricity stranded rather than converting it into productive economic activity.

The challenge is therefore becoming one of coordination. New oil and gas investment can increase government revenue, foreign exchange earnings and industrial activity, while additional power generation can reduce the cost of electricity for businesses. But the economic benefits will depend on whether the transmission network can move that power reliably to demand centres.

TCN’s current 8,700MW simulated capacity is therefore an important indicator of progress, but the company has acknowledged that the figure is based on system simulations and has not yet been physically tested at that level.

For Nigeria, the next stage of the energy transition is increasingly about removing the bottlenecks between investment and economic output. Attracting capital into generation, gas and industry is only one part of the equation; the transmission network must have the capacity to carry the resulting electricity to where businesses and households need it most.