The Niger Delta Power Holding Company (NDPHC) has called for urgent presidential intervention to secure funding for ongoing power projects and settle outstanding payments owed to Generation Companies (GenCos), as part of efforts to improve electricity supply across Nigeria.
The appeal was made by the Managing Director of NDPHC, Jennifer Adighije, during an inspection tour of the Egbema National Integrated Power Plant (NIPP) in Imo State, alongside members of the House Committee on Power led by Chairman Rep. Victor Nwokolo, the News Agency of Nigeria (NAN) reports.
Adighije highlighted the severe liquidity challenges facing the power sector, with over N4 trillion owed to GenCos, which has hindered their ability to operate efficiently.
She stressed the need for federal government intervention to ensure timely project completion and payment of debts to improve nationwide electricity access.
She stated that the power sector is grappling with a liquidity crisis, and without prompt intervention, the progress of critical projects like the Egbema NIPP could be stalled.
However, the GenCo boss did not provide specific details on how the necessary funds would be sourced or the exact mechanisms for raising them.
Egbema Power Plant Progress
The 375MW Egbema Power Plant, awarded to China Machinery Engineering Company (CMEC) in 2023, is a key project under the National Integrated Power Project (NIPP) initiative, with a scheduled completion date of 2025. Despite initial delays caused by litigation, NDPHC confirmed that 60% of the work has been completed, and the project remains on track for inauguration.
Adighije assured that NDPHC is closely monitoring the project to ensure adherence to timelines, emphasizing its importance in boosting Nigeria’s power generation capacity.
House Committee Commends NDPHC, Highlights Impact of Electricity Act
Rep. Victor Nwokolo praised NDPHC’s management for revitalizing the Egbema project and expressed optimism about its completion. He also commended President Bola Tinubu for signing the Electricity Act 2023 into law, which has introduced market-reflective tariffs and improved the financial viability of the power sector.
Nwokolo said the new tariff regime is attracting more investors into the sector and Nigeria’s power challenges will be significantly reduced.
Legislative Support for Power Sector Funding
The House Committee on Power assured NDPHC of continued legislative backing to address funding gaps and other sectoral challenges. Nwokolo emphasized the need for adequate budgetary allocations and alternative financing mechanisms to ensure the completion of critical power infrastructure.
More insights
The Special Adviser to the President on Energy, Olu Verheijen, has said the Federal Government’s policies are designed to strengthen investor confidence and enhance liquidity across Nigeria’s power sector.
Verheijen noted that Nigeria’s power sector privatization did not follow the same rigorous standards applied to the upstream oil and gas sector. Many of the private sector players who acquired distribution companies (DisCos) lacked the financial and technical capacity to make the required investments to improve reliability and expand access.
