Chiedu Ugbo, former Managing Director of the Niger Delta Power Holding Company (NDPHC), has called for the adoption of the Independent Transmission Project (ITP) model through public–private partnership (PPP) to address Nigeria’s persistent electricity transmission challenges.
Speaking at a power sector summit organised by the House of Representatives Committee on Privatisation and Commercialisation, Ugbo emphasised that Nigeria’s public treasury alone cannot fund the rehabilitation and expansion of its ageing transmission infrastructure.
He described the ITP model as a practical and proven approach to unlocking private sector investment in the country’s power grid.
The summit was convened to assess the progress of power sector reforms, tackle ongoing challenges, and explore strategies for improved sector performance.
In his presentation, Ugbo—now a senior partner at Power Matters Consulting—explained that the ITP model enables private capital and expertise to finance, construct, and operate transmission infrastructure under a clearly defined regulatory framework.
He cited global examples from Brazil and India, where similar models have enabled major expansion and modernisation of power transmission networks.
“This model has been successfully applied in countries such as Brazil and India, where private capital has significantly expanded transmission infrastructure under clear regulatory frameworks,” he noted.
Ugbo identified the transmission segment of Nigeria’s electricity value chain as the weakest link. Unlike the generation and distribution segments, which have been largely privatised, transmission remains entirely government-owned, making it ripe for PPP intervention under the ITP framework.
He highlighted key provisions in the Electricity Act 2023, which now permit the establishment of Independent Transmission Providers, creating a strong legal foundation for the ITP model. He stressed that the success of this initiative will depend on commercially viable project structures, fair risk-sharing mechanisms, and unwavering political support.
Ugbo also noted that Nigeria has set a target of generating 30,000 megawatts (MW) of electricity by 2030. Achieving this, he said, would require an estimated $262 billion in sector-wide investment. Of that, the Transmission Company of Nigeria (TCN) alone requires around $2.2 billion to complete 149 critical projects aimed at enhancing grid capacity and reliability.
Reflecting on past successes, Ugbo pointed to transmission projects delivered under NDPHC as proof that effective collaboration between the public and private sectors is possible and impactful.
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He urged generation companies (GenCos)—who rely on efficient transmission to evacuate power—to take the lead in championing the ITP initiative.
He likened the ITP model to the Independent Power Producer (IPP) model, which successfully opened up Nigeria’s generation segment to private investment. Projects such as the AES, Shell JV IPP, and Azura-Edo IPP, he said, helped lay the foundation for the privatisation of PHCN successor companies and boosted generation capacity.
“In the same way IPPs revolutionised power generation, ITPs can transform transmission—if backed by clear regulation, sound policy, and bankable commercial structures,” Ugbo said.
He concluded by calling for strong political will and unified stakeholder collaboration to make the ITP model a central part of Nigeria’s transition to a stable, reliable, and investor-friendly electricity supply system.
“These efforts must be backed by coherent policy direction and robust regulatory oversight to create a stable and attractive environment for private investment in transmission,” he added.
