Alaoji-Onitsha transmission line: 2000 persons affected by destruction

Nigeria's Transmission Company (TCN) has initiated a major infrastructure upgrade along the Alaoji-Onitsha 330-kilovolt transmission line, a critical backbone linking power generation capacity in the Southeast to distribution networks across the region. The reconstruction and modernization project has displaced over 2,000 persons whose properties were destroyed to create right-of-way access for the upgraded infrastructure, according to TCN Managing Director Dr. Ahmed Sule Abdulaziz.

The Alaoji-Onitsha corridor serves as a vital conduit for electricity movement from the Alaoji generation zone toward Onitsha and downstream load centers in Anambra, Imo, and Enugu states. Upgrading this line from 132KV to 330KV capacity is essential to reduce transmission losses and improve voltage stability across Nigeria's fragile grid, which has consistently underperformed against demand.

## What compensation is TCN providing to affected communities?

The company has begun compensating displaced persons and has simultaneously launched a skills development initiative targeting 64 youths from affected communities. This dual approach—financial redress plus human capital investment—reflects growing international pressure on Nigeria's utility operators to embed social responsibility into infrastructure projects. TCN's strategy aligns with World Bank and African Development Bank standards for involuntary resettlement, though implementation details and adequacy of compensation rates remain closely watched by civil society organizations.

## Why is the Alaoji-Onitsha line critical to Nigeria's power sector?

The Southeast transmission corridor has been a chronic bottleneck in Nigeria's grid expansion. The region generates significant hydroelectric and gas-fired capacity but lacked sufficient transmission infrastructure to move that power efficiently to consumer centers. Congestion on the 132KV line has historically forced power curtailment, reducing revenue for generators and limiting load to distribution companies. The 330KV upgrade doubles theoretical capacity, easing congestion and reducing technical losses that currently hover around 7-9% on congested corridors.

## How does this project fit Nigeria's broader grid modernization agenda?

This upgrade is one component of TCN's N2.7 trillion capital expenditure roadmap (2019–2028), which prioritizes closing transmission capacity gaps identified in the 2019 Grid Master Plan. Other ongoing projects include the Kano-Katsina-Jibia 330KV line, Lekki-Ibadancorridor reinforcement, and southern grid interconnection enhancements. Collectively, these projects aim to raise transmission capacity from current 8,500MW to over 10,000MW by 2028—a necessity given Nigeria's target of 30,000MW generation capacity by 2030.

## What are the investor implications?

For power generation and distribution utilities, transmission upgrades reduce technical losses and improve asset utilization rates, directly enhancing profitability. Investors in Dangote Refineries, Notore Chemical, and other large industrial consumers in the Southeast benefit from improved grid stability, reducing self-generation costs. However, project delays—common in Nigerian infrastructure—could push completion beyond 2026, delaying these efficiency gains.

The skills training component signals an emerging model where utilities invest in local youth employment and entrepreneurship, potentially reducing social tension around land acquisition and creating supply chains for future maintenance contracts.

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