The Nigerian power sector is grappling with a severe liquidity crisis, necessitating urgent presidential intervention, according to Jennifer Adighije, Managing Director of the Niger Delta Power Holding Company Limited (NDPHC). Adighije emphasized the critical need to address the over N4 trillion owed to power generating companies and secure funding for ongoing projects aimed at expanding electricity access across the nation. Her appeal was made during a site visit by the House Committee on Power to the Egbema National Integrated Power Project (NIPP) Power Plant, a crucial project under the NIPP initiative conceived in 2004. The visit served as a platform to assess the project’s progress, discuss existing challenges, and explore potential solutions to the broader financial woes of the power sector. Adighije highlighted the NDPHC’s commitment to realizing the presidential vision of providing reliable and affordable electricity, positioning the company as a cornerstone of Nigeria’s power infrastructure.
The Egbema Power Plant, a 375MW facility comprising three generating units, is scheduled for completion by the end of 2025. Awarded to CMEC China Machinery Engineering Company in 2023, the project is under close monitoring by the NDPHC to ensure timely delivery. The plant’s development is seen as pivotal to bolstering Nigeria’s power generation capacity and improving electricity access, particularly in the Niger Delta region. Adighije’s call for presidential intervention underscores the financial hurdles facing the project and the power sector in general, emphasizing the need for government support to overcome these challenges and ensure the project’s successful completion.
Victor Nwokolo, Chairman of the House Committee on Power, commended the NDPHC’s efforts in reviving the Egbema Power Plant, acknowledging the significant progress made despite past delays caused by litigation. He noted that approximately 60% of the project has been completed, expressing optimism about its timely delivery with adequate funding. Nwokolo recognized the financial difficulties facing the power sector, but praised the enactment of the Electricity Act, which he believes has significantly improved the sector’s financial viability.
The Electricity Act, a major legislative reform, is designed to attract much-needed investment into the power sector. By introducing new tariff structures and regulatory frameworks, the act aims to create a more conducive environment for private sector participation and financial sustainability. Nwokolo expressed confidence that these reforms, coupled with the President’s “Renewed Hope Agenda,” demonstrate a commitment to transforming the power sector and ensuring sustainable electricity supply for Nigerians. This positive outlook suggests that the legislation may pave the way for increased investment and improved infrastructure in the sector.
The liquidity crisis in Nigeria’s power sector represents a significant obstacle to achieving stable and reliable electricity supply. The N4 trillion debt owed to generating companies underscores the deep-rooted financial challenges plaguing the sector, hindering its ability to invest in infrastructure upgrades and expansion projects. This financial instability creates a ripple effect, impacting the entire electricity value chain and ultimately affecting the end consumers. Resolving this liquidity crisis is therefore crucial for unlocking the sector’s potential and driving economic growth.
The Egbema Power Plant, a flagship project under the NIPP initiative, carries the weight of expectation for improving electricity access and contributing to Nigeria’s overall power generation capacity. The successful completion of this project is not only crucial for meeting the energy demands of the region but also serves as a litmus test for the effectiveness of government interventions and the viability of power sector reforms. Addressing the financial constraints faced by the project and the broader sector is paramount to ensuring the project’s timely completion and its contribution to the nation’s power generation goals. The government’s commitment to resolving the liquidity crisis and fostering a conducive investment environment will be critical to the long-term success of the power sector and its ability to deliver sustainable and reliable electricity to the Nigerian people.
