The Niger Delta Power Holding Company (NDPHC) has disclosed that the Central Bank of Nigeria (CBN), the Nigerian Bulk Electricity Trading Plc (NBET), and the Nigerian Electricity Liability Management Company owe the Federal Government a total of N190 billion for electricity supply. Chiedu Ugbo, the Managing Director and Chief Executive Officer of NDPHC, provided this information during a media briefing in Lagos.
According to Ugbo, the estimated debt stems from unpaid invoices for electricity supply dating from 2015 until May 2023. He emphasized that the major share of the N190 billion debt is owed by NBET, though he did not specify the exact amount.
Ugbo highlighted the challenges caused by the significant indebtedness, affecting NDPHC’s ability to meet operational expenditures, pay gas suppliers, and fulfill other obligations. He explained that the accumulated debt has resulted in difficulties in generating power, as gas suppliers are not willing to provide gas when payments are pending.
The NDPHC currently operates at a capacity of 975MW, out of its nameplate capacity of 4000MW, due to the challenges created by the outstanding debts. Ugbo noted that the company has been able to sustain operations through internally generated revenue and interventions by the Federal Government. However, he emphasized the urgent need for private capital mobilization to address the liquidity challenges.
Engr. Abdullahi Kassim, the Executive Director of Generation, outlined the company’s plan to address the challenges through the ‘Light-up Nigeria Initiative.’ This program aims to leverage NDPHC’s generation assets to provide reliable power to eligible customers, distribution companies, and third-party project developers. The initiative, led by NDPHC’s Chairman and Vice President, Sen. Kashim Shettima, focuses on selling power to bulk purchasers and developers that aggregate load, offering a path to utilize NDPHC’s stranded capacity and illuminate businesses and homes.
The ultimate goal of the ‘Light Up Nigeria Initiative’ is to deliver more than 97% of generated power to the masses.
