Power Play: CBN, NBET, and More Accumulate N180 Billion Debt for Electricity Supply, Reveals NDPHC

The Director-General of the Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo, recently shed light on the complex financial landscape within Nigeria’s power sector, revealing that the combined debt burden of the Central Bank of Nigeria and the Nigeria Bulk Electricity Trading Company (NBET) currently stands between the substantial range of N150 billion and N180 billion.

During a media roundtable held in Lagos on Monday, Ugbo expressed concern about the extensive indebtedness of the power market to NDPHC, citing a staggering N190 billion as of May, representing unpaid invoices. This financial strain, according to Ugbo, is exacerbated by the fact that NDPHC is not remunerated for availability but only for dispatched power, leading to a significant revenue shortfall since the declaration of the Transitional Electricity Market in 2015. The accumulated deficit has, in turn, denied the government revenue estimated to be as high as N3 trillion.

Despite these financial challenges, Ugbo underscored that NDPHC’s dedication to the Light Up Nigeria Project remains unwavering. The commitment to illuminating the nation through various initiatives continues, with ongoing efforts such as supplying Ota Industrial Clusters through collaboration with the Ibadan Electricity Distribution Company (IBEDC). Additionally, Ugbo highlighted several other projects in progress with different Distribution Companies (DisCos) as part of the overarching Light Up Nigeria Project.

However, Ugbo also acknowledged that NDPHC itself is not exempt from financial obligations within the power value chain. The company finds itself indebted to various entities, including gas producers, adding another layer of complexity to the financial dynamics of Nigeria’s power sector.

Addressing another significant aspect of NDPHC’s involvement in the power sector, Ugbo mentioned the stake in 10 Integrated Power Plants (NIPPs), revealing that the status of these assets remains in limbo due to the indecision of the owners regarding the sale of the business.

In his words, Ugbo explained, “The owners of the business have not come up with a decision to sell. We at the NDPHC are just caretakers.” This statement emphasizes the crucial role of the federal and state governments as the ultimate decision-makers in determining the fate of these power assets. Until a concrete decision is made by the owners, NDPHC is in a holding pattern, ready to act based on the directives from the relevant government authorities.

In conclusion, Chiedu Ugbo’s revelations provide a comprehensive snapshot of the intricate financial challenges faced by NDPHC and the broader power sector in Nigeria. The interplay of debts, revenue shortfalls, and unresolved issues surrounding power assets underscores the need for strategic and decisive actions to ensure the sustainability and growth of Nigeria’s power infrastructure. As the government grapples with these complexities, the Light Up Nigeria Project remains a beacon of hope, driving ongoing efforts to illuminate the nation and power its economic development. Infostride News will continue to monitor and report on developments in this critical sector, providing insights into the evolving landscape of Nigeria’s power industry.