NDPHC MD Jennifer Adighije urges removal of electricity subsidies and adoption of cost-reflective tariffs to restore financial stability in Nigeria’s power sector

The Jennifer Adighije has called on the Federal Government of Nigeria to remove electricity subsidies and implement fully cost-reflective tariffs for all customers to restore financial stability in Nigeria’s power sector.

Also read: FG to Share Electricity Subsidy Costs Across All Tiers

Adighije highlighted structural and liquidity challenges that continue to constrain the electricity market. She revealed that only about 30 per cent of sector invoices are currently settled, placing significant financial strain across the electricity value chain.

“In addition, liquidity constraints remain a major concern, as only about 30 per cent of sector invoices are currently settled, creating financial strain across the value chain.

To address these systemic issues, there should be decoupling of government subsidies from electricity tariffs and gradual implementation of fully cost-reflective tariffs across all customer segments,” she stated.

The NDPHC boss also identified gas supply shortages as a persistent challenge, explaining that gas procurement alone accounts for nearly 60 per cent of operational costs for thermal generation plants.

She noted a mismatch between installed generation capacity and the transmission network’s ability to deliver power efficiently as another limiting factor.

Adighije provided an update on the company’s operations, stating that NDPHC has constructed ten power plants under the National Integrated Power Project, with eight commissioned and six currently in commercial operation.

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

In the past year, NDPHC recovered about 900 megawatts of previously dormant capacity through plant optimisation, operational discipline, and predictive maintenance strategies.

Additionally, the company recently recovered 110 abandoned containers and 216 packages of critical power equipment worth millions of dollars, which will be deployed to accelerate ongoing generation, transmission, and distribution projects nationwide.

Beyond tariff reforms, Adighije said NDPHC is diversifying into renewable energy and direct electricity supply to industrial clusters.

Projects include solar and small hydro power, with a pilot solar initiative planned for industrial clusters in Kano State under the company’s ‘Light Up Nigeria’ programme, aimed at delivering reliable electricity to commercial, industrial, and residential communities.

She emphasised that consistent implementation of government policies, particularly the Electricity Act 2023, is critical to attracting investment, strengthening infrastructure, and stimulating electricity demand.

Also read: Nigeria Raises N501bn to Settle Electricity Sector Debts

Adighije reaffirmed NDPHC’s commitment to supporting national development through reliable power supply and expressed optimism that ongoing reforms and targeted investments will significantly improve electricity reliability in the coming years.