Federal Government Expands Power Distribution: Signs 250MW Agreement with Utility Companies

The Federal Government, through the Niger Delta Power Holding Company (NDPHC), has inked a Power Purchase Agreement with various utility companies, paving the way for the distribution of approximately 250MW of electricity nationwide.

This initiative is part of the ongoing ‘Light Up Nigeria’ program led by Vice President Shettima.

According to documents obtained from NDPHC, the signed power purchase transactions involve several Distribution Companies (Discos) as offtakers, including Eko Electricity Distribution Plc, Compagnie d’Energie Electrique du Togo, Sunflag Steel Industries Limited, and others.

NDPHC clarified that the ‘Light Up Nigeria’ program aims to utilize the existing capacity and develop more, with the power generation projects funded through the Excess Crude Account between 2005 and 2009.

The company’s installed capacity currently stands at 4,000MW.

Despite these achievements, NDPHC faces systemic challenges affecting its operations, notably transmission constraints, gas supply and transportation issues, and low gas pressure on pipelines.

Calabar is the only power plant with full gas supply, while others face obstacles in meeting evacuation capacity.

Acknowledging the need for additional investments, NDPHC emphasized that government efforts alone cannot address transmission challenges, urging urgent private capital mobilization for the sector’s advancement.

The company also highlighted the impact of outstanding debts, emphasizing the requirement for substantial investments to overcome existing hurdles.