FG will collaborate with South East, others to end power supply challenges in the zone – Shettima

The Federal Government has promised to collaborate with the Southeast governors and other stakeholders to solve the challenges hampering power supply in the geo-political zone.

The promise was made in Enugu on Monday by Vice President Kashim Shettima.

Shettima flagged off the Light Up project programme during the South East Business Roundtable in Enugu as part of the Federal Government’s efforts to improve energy supply to industrial clusters in the South East Zone.

The Vice President described the project as a transformation journey and renewed hope for industrialists and investors in the region.

He also said that President Bola Ahmed Tinubu was at the forefront of the Light Up Nigeria project and that South East was the second zone after Agbara in Ogun state where the programme was launched. This, he said, explained the President’s determination to ensure power supply to in­dustrial clusters in South East.

He described the South East as the business hub of Nigeria and called on the stakeholders to collaborate to make the project a success.

“The long-awaited solution to epileptic power supply is finally here and this project will help to stabilise Nigeria because if there is no power, there cannot be industrialisation.

“The economic fortune of Nigeria remains the critical concern of President Tinubu as we believe that if power sector works, every other thing in Nigeria will works,” he said.

Governors of Anambra, Enugu, Imo, and Ebonyi States took their turn to address the audience.

The Governor of Anambra State, Chukwuma Soludo said the people of the zone should put an end to lamentation and go straight into action, looking for solutions to solve their problems.

Earlier, the Managing Director/Chief Executive Officer of Niger Delta Power Holding Company Ltd (NDPHC), Chiedu Ugbo said the event provided an opportunity for the business community in the South-East Zone to interact with the Vice President of Nigeria, adding that it marked the formal launch of the South-East phase of the strategic collaboration between NDPHC and other project parties to provide steady and reliable electricity supply to industrial and business clusters across Nigeria.

“We are honoured to have you all here today. This event is part of a series of initiatives led by His Excellency, the Vice President, who serves as the Chairman of Niger Delta Power Holding Company.

“These initiatives demonstrate the commitment and determination of President Tinubu’s administration, working through NDPHC, to provide reliable and sustainable solutions to the electricity challenge in the country, starting with reliable and affordable supply to industries.

“The first event in this series took place on October 12, 2023, in Agbara, Ogun State, South-West Nigeria, where His Excellency engaged with the business community and committed to providing the required electricity to power businesses in industrial areas across the country through NDPHC.

“Since then, significant progress has been made on the Agbara project including identifying and signing on key industrial customers.

“Today’s event builds on the commitment made by His Excellency at Agbara and will be replicated in other geopolitical zones across the country.

“The Light Up Nigeria project, which is the focus of today’s event, is led by Niger Delta Power Holding Company Limited (NDPHC).

“NDPHC, a government-owned company, is responsible for implementing the National Integrated Power Project (NIPP) and operates a portfolio of gas thermal electricity generation assets in Nigeria.

“However, the optimal utilisation of these assets has been hindered by technical challenges and market constraints. One major challenge is the lack of sufficient transmission and distribution infrastructure to transport power from the plants. To underscore this point, just last Friday, we received the Honourable Minister of Power at our 500MW Benin (Ihovbor) Power Plant.

“This power plant shares the transmission facilities with Azura-Edo Power plant next door with over 460 MW. The two plants together can generate over 900MW. The Honourable Minister witnessed first-hand the level of under-utilisation of the NDPHC generation plant as a result of the transmission constraint.

“However, Transmission Company of Nigeria is now working assiduously towards resolving that constraint in that power plant.

“Another challenge stems from financial difficulties in the electric power sector here in Nigeria, leading to inadequate payments by distribution companies and Nigeria Bulk Electricity Trading Company (NBET) to generation companies like NDPHC. The huge indebtedness to the generation companies affects the ability of the generation companies to pay for gas supply leading to gas supply shortage and the resulting low generation.

“On 31st January 2024, the Honourable Minister of Power visited our Olorunsogo Power Plant (near Papalanto in Ogun State and Omotosho Power Plant nnear Ore in Ondo State) and saw first-hand the extent of gas supply constraint to the two power plants which put together has over 1000MW installed capacity. At a recent press conference, the Honourable Minister of Power, rightly identified this severe liquidity crisis as a major impediment to electricity supply in the country with over N1.3 trillion owed to generation companies. NDPHC alone is owed close to N200bn out of that.

“These challenges of lack of sufficient transmission and distribution infrastructure to transport electricity from the plants and the sector market liquidity crisis have resulted in gross under utilisation of installed generation assets with unserved potential grid electricity consumers, particularly industries (some of which are represented here today), resorting to expensive and often inefficient self-generation.

“In response to these challenges, NDPHC initiated the Light Up Nigeria project, which aims to provide reliable and affordable electricity supply to industries and homes by utilising underutilised generation capacity, establishing trading agreements with bulk purchasers of electricity, and mobilising investments to address technical, commercial, and collection losses in the supply chain.

“Additionally, NDPHC aims to receive full payment for the electricity generated and delivered, without relying on the Federal Government for such payments.

“The project aligns with the Electricity Act of 2023 (graciously signed into law by His Excellency President Bola Tinubu GCFR), which provides a strong framework for state governments to develop

electricity markets at the sub-national level, with the aim of delivering consistent and affordable electricity to residents.

“Through the Light Up Nigeria project, state governments will derive the benefit of increased access to electricity, attraction of investment opportunities, revenue generation and economic growth.

Some of the dignitaries in attendance include Governor of Imo State, Hope Uzodinma; the Governor of Enugu State, Peter Mbah; Governor of Anambra State, Charles Chukwuma Soludo; Governor of Ebonyi State, Francis Nwifuru; former Senate president, Pius Anyim; Minister of Power, Adebayo Adelabu; Emeka Offor, chairman, Board of Directors, Enugu Electricity Distribution Company, (EEDC), among others.