N4trn Debt Owed GenCos Causing Liquidity Challenges, Says NDPHC Boss .... Seeks Presidential Intervention

.... As Engr. Jennifer Adighije emphasizes the significance of the Egbema Power Plant as a key project under the National Integrated Power Project (NIPP).

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

Following the challenges bedevilling the Nigerian power sector, especially as it concerns the liquidity crisis, Managing Director/CEO of Niger Delta Power Holding Company NDPHC, Engr Jennifer Adighije has lamented the plight of the Generating Companies, GenCos and therefore, appealed for the intervention of the federal government.

Adighije stated this while playing host to the House Committee on Power, led by its Chairman, Hon. Victor Nwokolo while on a site inspection of the Egbema NIPP Power Plant on Thursday.

A statement signed by Olufunke Nwankwo, General Manager, Communication & Public Relations, NDPHC revealed that the inspection aimed to assess the progress of the ongoing project and discuss challenges facing it as well as the power sector at large.

In her welcome address to the visiting legislators, Engr Jennifer Adighije emphasized the significance of the Egbema Power Plant as a key project under the National Integrated Power Project (NIPP). She provided an overview of the plant’s status.

She pointed out that 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 stressing that the NDPHC was closely monitoring progress to ensure timely completion.

Engr. Adighije highlighted the challenges facing the sector in general, particularly that of liquidity which, according to her, had led to the electricity generating companies (GenCos) being owed over N4 trillion and appealed for presidential intervention to facilitate funding for ongoing projects, settle outstanding payments, and enhance electricity access nationwide.

She reiterated NDPHC’s commitment to advancing Mr President’s vision of reliable, affordable electricity, as well as positioning the company as the backbone of Nigeria’s power sector.

The Chairman of the House Committee on Power commended the NDPHC management for their proactive approach in reviving the Egbema Power Plant, explaining that though the project had faced delays due to litigation issues, the new management and contractor have significantly accelerated execution 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 would deliver on schedule.

Addressing broader sectoral concerns, the lawmakers 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 the new tariff structures are making the sector more attractive to investors and financial institutions.

The Chairman further commended Mr President for his Renewed Hope Agenda and commitment to power sector reforms.

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

Commending the contractors for their commitment to steady progress, Hon. Nwokolo stressed that beyond electricity generation, the project would create jobs, enhance security, and contribute to economic growth in surrounding communities.

The Chairman also relayed the concern of Mr Speaker, House of Representatives, regarding developments in the power sector, as he assured that the National Assembly would continue to support and ensure proper budgetary allocation and its effective utilisation.

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