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NDPHC CEO calls for subsidy removal, fully cost-reflective tariffs as only 30% of sector invoices are settled

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… announces strategic shift to renewable energy, direct industrial power supply

 

Oredola Adeola

Engr. Jennifer Adighije, Managing Director and Chief Executive Officer (CEO), Niger Delta Power Holding Company (NDPHC), has called for the decoupling of subsidy from electricity tariffs and the gradual implementation of fully cost-reflective tariffs across all customer segments, lamenting that only about 30% of sector invoices are currently settled.

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Acknowledging structural challenges that limit the impact of available generation capacity, she emphasized that establishing a financially viable electricity market is crucial to restore investor confidence, attract private sector participation, and drive sustainable growth in Nigeria’s power sector.

She disclosed this during a recent television programme monitored in Lagos.

The MD/CEO further noted that persistent gas supply shortages and other systemic challenges affecting thermal power generation remain major obstacles to achieving efficiency and reliability in the electricity system.

Adighije highlighted that NDPHC is strategically diversifying into renewable energy development and direct electricity supply to industrial clusters to enhance power reliability and support economic growth across Nigeria.

She explained that the company’s evolving strategy is anchored on long-term sustainability, improved operational efficiency, and closing critical electricity supply gaps affecting industrial productivity nationwide.

According to her, NDPHC is gradually transitioning towards cleaner energy sources, including solar and small hydro power projects, to complement its existing gas-fired generation assets developed under the National Integrated Power Project (NIPP).

Renewable energy integration, she added, would diversify Nigeria’s energy mix and strengthen resilience within the power sector.

Adighije revealed that the company is developing a solar power concept targeted at industrial clusters in Kano State, which will serve as a pilot for similar interventions across other industrial hubs.

The initiative aims to provide dedicated and reliable electricity to manufacturing zones, reducing dependence on diesel generators, lowering production costs, and improving competitiveness for Nigerian industries.

She also disclosed that NDPHC is exploring opportunities for direct electricity supply arrangements with electricity distribution companies (DisCos) and eligible customers under existing regulatory frameworks to ensure power is efficiently delivered to high-demand clusters with maximum economic impact.

Under its flagship “Light Up Nigeria” initiative, the company aims to deliver reliable and affordable electricity to industrial and commercial clusters, markets, universities, and residential communities through embedded and independent power solutions.

The programme is expected to stimulate job creation, attract investments, and support small and medium-scale enterprises impacted by unreliable electricity supply.

Providing an update on NDPHC’s infrastructure portfolio, Adighije stated that the company has constructed 10 power plants across 10 states under the NIPP programme, with eight already commissioned and six currently in commercial operation.

She added that NDPHC’s installed generation capacity stands at approximately 4,000 megawatts, representing nearly 30% of Nigeria’s total grid-connected capacity.

Within the past year, the company successfully recovered about 900 megawatts of previously dormant generation capacity through plant optimisation, enhanced operational discipline, and predictive maintenance strategies.

These improvements demonstrate NDPHC’s commitment to maximising existing assets before embarking on new generation projects.

In addition, the company recently recovered 110 abandoned containers and 216 packages of critical power equipment worth millions of dollars from Nigerian ports.

The recovered equipment will be deployed to complete ongoing generation, transmission, and distribution projects, accelerating infrastructure delivery timelines.

She stressed that consistent implementation of government policies, particularly the Electricity Act 2023, is critical to unlocking investments, strengthening infrastructure, and stimulating electricity demand across Nigeria’s expanding economy.

She reiterated NDPHC’s commitment to supporting national development through reliable power supply, noting that improved electricity access is fundamental to industrialisation, economic diversification, and improved living standards.

She expressed optimism that ongoing reforms, combined with targeted investments in renewable energy, industrial power solutions, and infrastructure optimisation, would significantly improve power reliability in the coming years.

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