Jennifer Adighije, the Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), has called on the Federal Government to phase out electricity subsidies and implement fully cost-reflective tariffs across all customer categories to restore financial stability in Nigeria’s power sector.
In a statement made available in Lagos, Adighije highlighted deep-rooted structural and liquidity challenges affecting the electricity market, stressing that reform is critical to ensuring long-term sustainability.
She advocated the decoupling of government subsidies from electricity tariffs and the gradual introduction of cost-reflective pricing to create a financially viable market environment.
“Liquidity constraints within the electricity market remain a major concern, as only about 30 per cent of sector invoices are currently settled, creating financial strain across the value chain,” she said.
According to her, building a financially sustainable electricity market is essential to restoring investor confidence, attracting private sector participation and driving sector growth.
Liquidity and Gas Supply Challenges
Adighije noted that gas supply shortages continue to constrain thermal power generation, explaining that gas procurement accounts for nearly 60 per cent of operational costs for generation companies.
She also pointed to the mismatch between installed generation capacity and the transmission network’s ability to evacuate power efficiently to distribution companies and end-users as a major limitation in the system.
NDPHC Capacity and Asset Optimisation
Providing an operational update, Adighije said the company has constructed 10 power plants across 10 states under the National Integrated Power Project, with eight commissioned and six currently in commercial operation.
She disclosed that the company’s installed generation capacity stands at approximately 4,000 megawatts, representing nearly 30 per cent of Nigeria’s total grid-connected capacity.
Within the past year, NDPHC recovered about 900 megawatts of previously dormant generation capacity through plant optimisation, improved operational discipline and predictive maintenance strategies.
“These improvements demonstrate NDPHC’s commitment to maximising existing assets before embarking on new-generation projects,” she said.
The company also recovered 110 abandoned containers and 216 packages of critical power equipment worth millions of dollars from Nigerian ports after prolonged delays. The equipment will be deployed to complete ongoing generation, transmission and distribution projects nationwide.
Renewable Energy and Industrial Power Solutions
Beyond tariff reforms, Adighije said NDPHC is expanding into renewable energy and direct electricity supply to industrial clusters as part of efforts to improve reliability and support economic growth.
She disclosed that the company is developing solar and small hydro projects to complement its existing gas-fired assets. A solar power concept targeted at industrial clusters in Kano State is currently in development and is expected to serve as a pilot for similar projects across other industrial hubs.
Under its “Light Up Nigeria” initiative, the company aims to deliver reliable electricity to industrial and commercial clusters, markets, universities and residential communities through embedded and independent power solutions.
Adighije emphasised that consistent implementation of the Electricity Act 2023 is critical to unlocking new investments, strengthening infrastructure and stimulating electricity demand.
She reiterated NDPHC’s commitment to supporting national development through improved power supply, expressing optimism that ongoing reforms and targeted investments will enhance electricity reliability in the coming years.
