N4trn Debt To GenCos: NDPHC Seeks Presidential Intervention

Nigerian National Power Holding Company (NDPHC) is seeking presidential intervention to address the crippling N4 trillion debt owed to electricity Generation Companies (GenCos).

This is in order to ease the funding challenges for ongoing projects in the power sector.
The company also said that the Egbema Power Station, with a capacity of approximately 375 megawatts (MW), is on track for completion by the end of this year.

Managing director/CEO of Niger Delta Power Holding Company (NDPHC) Limited, Jennifer Adighije, made these known during a site inspection of NIPP Egbema Power Plant Egbema by the House of Representatives Committee On Power, on Thursday.

She highlighted the challenges facing the power sector, particularly a liquidity crisis of over N4 trillion owed to GenCos and urged for presidential intervention to facilitate funding for ongoing projects, settle outstanding payments, and enhance electricity access nationwide.

Adighije while welcoming the delegation, emphasised the significance of the Egbema Power Plant as a key project under the National Integrated Power Project (NIPP).

She said the project consists of three generating units with an installed capacity of 375MW and that it was awarded to CMEC China Machinery Engineering Company in 2023, with completion targeted for end of the year.

Adighije also mentioned that NDPHC is closely monitoring progress to ensure timely completion.
Furthermore, she reiterated NDPHC’s commitment to advancing Mr. President’s vision of reliable, affordable electricity, positioning the company as the backbone of Nigeria’s power sector.

The chairman of the House Committee on Power, Hon. Victor Nwokolo, on his part, commended the NDPHC Management for their proactive approach in reviving the Egbema Power Plant and he proceeded to state that the project had faced delays due to litigation issues, but the new management and contractor have significantly accelerated progress.

From the inspection, approximately 60 per cent of the work has been completed, bringing the project closer to commissioning.

He expressed confidence that with proper funding, the contractors will deliver on schedule.

Addressing broader sectoral concerns, he acknowledged the cash crunch in the industry but praised the President for signing the Electricity Act, which has improved the financial viability of the power sector.

He noted that new tariff structures are making the sector more attractive to investors and financial institutions.

He also commended the minister of Power for his leadership and efforts in advancing critical projects.

The contractors were also commended for their dedication to ensuring steady progress.

He emphasised that beyond electricity generation, the project would create jobs, enhance security, and contribute to economic growth in surrounding communities.

The interest of the speaker of the House in Power Sector Developments was also highlighted.

The chairman relayed the concern of the speaker, House of Representatives, regarding developments in the power sector.

He assured that Egbema Power Plant, with adequate funding, will soon reach full operational capacity and align with other functional power plants.

An important question was posed to the chairman as regards budget and sector funding through the supplementary budget, the chairman expressed optimism and he commended Mr. President for increasing the sector’s budget, a reflection of his commitment to power sector development.

He assured that the National Assembly will not distort allocations, ensuring funds are effectively utilised.

He emphasised the strong relationship between NDPHC and the legislative committees on power, which has contributed to smoother legislative oversight and minimal public hearing issues.

The inspection reaffirmed the commitment of both the Executive and Legislative arms of government to enhancing Nigeria’s power sector.

The House Committee on Power expressed confidence in NDPHC’s leadership and assured continued legislative support to address sector challenges, particularly in securing adequate funding for project completion.

NDPHC remains committed to delivering on its mandate to expand power generation capacity and contribute to national energy security and economic development.

The inspection aimed to assess the progress of the ongoing project and discuss challenges facing the project as well as the power sector at large.