TCN, GenCos Disagree Over Stranded Electricity As Six-Month Loss Hits ₦110.56 Billion
By NINI NDUONOFIT-AKOH
GenCos Report Massive Revenue Loss Amid Grid Constraints
ELECTRICITY Generation Companies (GenCos) say they lost ₦110.56 billion in the first six months of 2026 because thousands of megawatts of electricity generated across the country could not be delivered to consumers.
The companies attributed the losses to stranded electricity, describing it as power generated but left unused because of transmission limitations, inadequate evacuation infrastructure and weak demand across parts of the electricity market.
Industry data showed that the national grid stranded an average of 3,124.50 megawatts between January and June.
In January alone, about 2,985MW remained unutilised, leading to a revenue loss of ₦18.10 billion. The figure rose to 3,274MW in February with losses of ₦17.93 billion.
March recorded the highest stranded capacity of 3,650MW, translating into ₦22.13 billion in lost revenue. The trend continued in April with 3,193MW stranded and ₦18.74 billion in losses.
Although stranded capacity dropped to 2,710MW in May, GenCos still lost ₦16.43 billion. In June, unused electricity increased again to 2,935MW, resulting in another ₦17.22 billion loss.
The figures have renewed concerns about inefficiencies within Nigeria’s electricity value chain and the growing financial pressure on power generation companies.
TCN Rejects Responsibility
The Transmission Company of Nigeria (TCN) has rejected allegations that inadequate transmission capacity is responsible for the stranded electricity.
The company said data published by the Nigerian Electricity Regulatory Commission (NERC) does not support the claims made by the Association of Power Generation Companies (APGC).
According to TCN, NERC’s audited first-quarter 2026 report showed that GenCos declared an average available generation capacity of 4,457.96MW, far below the installed capacity often cited by industry operators.
TCN also disputed claims that the national grid can only wheel about 4,500MW despite an installed generation capacity exceeding 15,500MW.
It maintained that its verified transmission wheeling capacity currently stands at 8,700MW following investments in transmission infrastructure, including substations, transformers and transmission lines.
The company further pointed to its record transmission performance of 5,801.84MW peak generation and 128,370.75MWh daily energy delivery achieved in March 2025 as evidence that the network has expanded significantly.
Generation Challenges Persist
TCN argued that the main challenge lies in limited electricity generation rather than transmission constraints.
It cited NERC’s Plant Availability Factor of 32.72 per cent for the first quarter of 2026, indicating that more than two-thirds of installed generation capacity remained unavailable because of gas shortages, equipment failures and maintenance outages.
According to the transmission company, these operational challenges continue to limit the volume of electricity available for dispatch.
Experts Call for Comprehensive Reform
Energy experts say the debate reflects deeper structural weaknesses in Nigeria’s electricity industry.
President of the Nigeria Consumer Protection Network, Kunle Olubiyo, said stranded generation has remained unresolved since the power sector was privatised in 2013.
He noted that uncertainty still exists over who should bear the financial burden arising from stranded electricity.
Olubiyo argued that the problem will persist unless transmission infrastructure is strengthened and electricity distribution companies improve their capacity to accept and distribute available power.
He said meaningful reforms across generation, transmission and distribution remain essential to reducing stranded electricity, improving power supply and restoring investor confidence in Nigeria’s electricity market.
