The Niger Delta Power Holding Company (NDPHC), a federal government-owned power firm, disclosed that the Central Bank of Nigeria (CBN), the Nigerian Bulk Electricity Trading Plc (NBET), and the Nigerian Electricity Liability Management Company collectively owe the Federal Government a staggering N190 billion for electricity supply.
Chiedu Ugbo, the Managing Director and Chief Executive Officer of NDPHC, shared this revelation during a media briefing in Lagos on Monday.
He explained that the estimated debt of N190 billion had accumulated from outstanding payments for electricity supply dating back to 2015 until May 2023.
Ugbo emphasized that NBET held the majority share of the debt, although the exact amount was not specified.
He pointed out that the significant indebtedness by these government agencies had reached hundreds of billions, affecting NDPHC’s ability to meet various financial obligations.
The NDPHC head highlighted the impact of the debt on the company’s operations, stating that the inability to settle outstanding invoices had repercussions on operational expenditures, including payments to gas suppliers and maintenance of necessary spare parts.
He further clarified that the persistent debt situation had led to a reduction in power generation, highlighting that while NDPHC had the capacity to generate up to 2000MW, the current output stood at 975MW.
In response to the liquidity challenges, Ugbo mentioned that the company had implemented cost-cutting measures and relied on internally generated revenue, with interventions from the Federal Government.
However, he stressed the urgency of private capital mobilization to address the ongoing financial constraints.
Ugbo urged the exploration of independent transmission projects, especially with the involvement of generating companies (Gencos) as investors.
He emphasized that NDPHC’s track record made private capital mobilization feasible in the shortest possible time.
Executive Director, Generation, Engr. Abdullahi Kassim, presented the ‘Light-up Nigeria Initiative’ as part of NDPHC’s strategy to overcome challenges.
The initiative aims to leverage the company’s generation assets to provide reliable power supply to eligible customers, distribution companies, and third-party project developers.
Kassim emphasized that the goal is to deliver more than 97% of generated power to the masses, offering a sustainable solution to NDPHC’s commercially stranded capacity.
