NDPHC Urges Federal Government to Phase Out Electricity Subsidies
The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, has called on the federal government to eliminate electricity subsidies and implement fully cost-reflective tariffs for all consumer categories. This recommendation was made in a statement delivered to journalists in Lagos, where Adighije outlined the persistent financial and structural challenges facing Nigeria's power sector.
Addressing Liquidity Challenges in the Electricity Market
Adighije expressed significant concern over the liquidity crisis affecting the sector, revealing that only about 30% of electricity market invoices are currently being settled. This severe shortfall has created substantial financial pressure across the entire electricity value chain, from generation to distribution. She emphasized that separating government subsidies from electricity tariffs and gradually implementing cost-reflective pricing would help stabilize the market and restore investor confidence.
"Building a financially sustainable market is crucial to restoring investor confidence, encouraging private sector participation and driving long-term growth in the sector," Adighije stated.
Gas Supply Constraints and Operational Costs
The NDPHC chief also highlighted gas supply shortages as a major constraint on thermal power generation. She noted that gas procurement accounts for nearly 60% of operational costs for generation companies, making this a critical factor in the sector's financial viability. Additionally, Adighije pointed to the imbalance between installed generation capacity and the transmission network's ability to efficiently evacuate electricity to distribution companies and end-users.
NDPHC's Operational Achievements and Future Plans
Providing updates on the company's operations, Adighije disclosed that NDPHC has built 10 power plants across 10 states under the National Integrated Power Project (NIPP). Eight of these plants have been commissioned, with six currently in commercial operation. The company's installed generation capacity stands at approximately 4,000 megawatts, representing roughly 30% of Nigeria's total grid-connected capacity.
Over the past year, NDPHC recovered approximately 900 megawatts of previously idle generation capacity through improved plant optimisation, stronger operational discipline and predictive maintenance strategies. "These improvements demonstrate NDPHC's commitment to maximising existing assets before embarking on new-generation projects," she explained.
Infrastructure Recovery and Renewable Energy Transition
Adighije revealed that the company recently retrieved 110 abandoned containers and 216 packages of critical power equipment valued at millions of dollars from Nigerian ports after prolonged delays. This recovered equipment will be deployed to complete ongoing generation, transmission and distribution projects nationwide, helping to fast-track infrastructure delivery.
Beyond tariff reforms, the NDPHC is diversifying into renewable energy and direct power supply to industrial clusters. The company is gradually transitioning to cleaner energy sources, including solar and small hydro projects, to complement its existing gas-fired plants. A solar power project is being developed for industrial clusters in Kano State, which will serve as a pilot for similar projects in other industrial hubs across the country.
Policy Implementation and Sector Growth
Adighije stressed that consistent implementation of government policies, particularly the provisions of the Electricity Act 2023, is vital to attracting investment, strengthening infrastructure and stimulating electricity demand. She reaffirmed NDPHC's commitment to supporting national development through improved power supply, expressing optimism that ongoing reforms and targeted investments would enhance electricity reliability in the coming years.
Under its "Light Up Nigeria" initiative, the company plans to provide reliable and affordable electricity to industrial and commercial clusters, markets, universities and residential communities through embedded and independent power solutions.
