The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company, Jennifer Adighije, has urged the Federal Government to remove electricity subsidies for all customers and adopt fully cost-reflective tariffs to stabilise Nigeria’s struggling power sector.

Adighije said the current electricity subsidy regime has worsened liquidity challenges across the power value chain, with only about 30 per cent of market invoices reportedly being settled.

She stressed that decoupling government subsidies from electricity tariffs would help create a financially viable electricity market capable of attracting private sector investment.

According to her, implementing cost-reflective electricity tariffs is essential for restoring investor confidence, ensuring sustainable power sector growth, and improving electricity supply reliability nationwide.

Nigeria Power Sector Liquidity Crisis

Highlighting structural weaknesses in the electricity market, Adighije noted that liquidity constraints remain a major concern.

She explained that persistent payment shortfalls have created financial strain for generation companies, transmission operators and distribution companies.

Gas supply shortages were also identified as a critical issue affecting thermal power plants.

She revealed that gas procurement accounts for nearly 60 per cent of operational costs for power generation companies, further compounding electricity generation challenges.

NDPHC Generation Capacity and Power Projects

Providing updates on operations, the NDPHC boss disclosed that the company has constructed 10 power plants across 10 states under the National Integrated Power Project.

Eight of these plants have been commissioned, with six currently in commercial operation.
She stated that NDPHC’s installed generation capacity stands at approximately 4,000 megawatts, representing nearly 30 per cent of Nigeria’s total grid-connected electricity capacity.

Over the past year, the company recovered about 900 megawatts of previously idle capacity through plant optimisation and predictive maintenance strategies.

Renewable Energy and Electricity Act 2023

Beyond tariff reforms, Adighije said NDPHC is expanding into renewable energy projects, including solar and small hydro power initiatives targeted at industrial clusters.

She emphasised that consistent implementation of the Electricity Act 2023 is critical to unlocking investment, strengthening power infrastructure, and improving electricity demand across Nigeria’s growing economy.