The Federal Government, through the Niger Delta Power Holding Company, has signed a Power Purchase Agreement with various utility companies for the distribution of approximately 250MW of power across the country. The transactions have been part of the ongoing ‘Light Up Nigeria’ program initiated under Vice President Shettima.
The distribution companies (Discos) involved in the power sale transactions include Eko Electricity Distribution Plc, Compagnie d’Energie Electrique du Togo, Sunflag Steel Industries Limited, Wewood Limited, Omotosho, Ondo State, APLE Electric Limited, Pulkit Alloy & Steel Limited, ABV Utility Limited, Ayingba Independent Electricity Distribution Network Limited, Avatar New Energy Limited, Phoenix Steel Mills Limited, among others.
The goal of the ‘Light Up Nigeria’ program is to sell the current available capacity, develop more capacity, and enhance power generation. The power generation projects were funded through the Excess Crude Account and appropriately appropriated by the Federal Government and the States between 2005 and 2009. The Niger Delta Power Holding Company currently has an installed capacity of 4000MW.
Despite these achievements, NDPHC highlighted systemic challenges affecting its operations, including transmission constraints, gas supply and transportation constraints, and challenges in meeting the full capacity of its power plants. The company emphasized the need for additional investments in transmission and called for urgent private capital mobilization to address these challenges.
