NDPHC Calls for Removal of Electricity Subsidies in Nigeria

Jennifer Adighij, the Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), has called on the federal government to remove electricity subsidies for all customers. She emphasized the need to implement fully cost-reflective tariffs to restore financial stability in Nigeria's power sector.

Adighij highlighted the deep-rooted structural liquidity challenges that constrain the performance of the electricity market, advocating for the decoupling of government subsidies from electricity tariffs. She noted that 30 percent of market invoices are currently unsettled, creating financial strain across the electricity value chain.

Additionally, she identified gas supply shortages as a persistent challenge affecting thermal generation plants, with gas procurement accounting for nearly 60 percent of operational costs for power generation companies. Adighij also mentioned that NDPHC is constructing ten power plants across ten states, with eight already commissioned.

The company's installed generation capacity stands at approximately 4,000 megawatts, representing nearly 30 percent of Nigeria's total grid-connected capacity.