The recent Vice President, Senator Kashim Shettima, who is the Chairman of the Board of Directors of the Niger Delta Power Holding Company’s (NDPHC) assurance to industry owners that the Federal Government is determined to bypass infrastructure obstacles and supply electricity to them through NDPHC more cheaply and sustainably, would revamp ailing industries. TOPE SUNDAY reports.
Recently, the Vice President, Senator Kashim Shettima as the Chairman of the Board of Directors led the management team of NDPHC to a business roundtable at OPIC Industrial Estate, Agbara in Ogun state where he assured industry owners of the determination by the Federal Government to bypass infrastructure obstacles and supply electricity to them through NDPHC more cheaply and sustainably.
For experts in the Nigeria electricity supply chain, the bilateral electricity purchase agreements are necessary to aid the direct sale of power from Generation Companies (GenCos) to Distribution Companies (DisCos), and they noted that the implementation of these contracts between GenCos and DisCos would address the non-buoyancy of DisCos and pose a serious challenge in the implementation of bilateral power contracts.
This bilateral power contract, according to them, would allow the DisCos to engage directly with willing GenCos for energy supply on mutually agreed terms, which is expected to improve on the Power Purchase Agreement (PPA), boost power generation, and electricity supply in the country.
The NIPP intervention
Recall that the National Integrated Power Project (NIPP) was conceived in 2004 as a fast-track government-funded initiative to stabilize Nigeria’s electricity supply system while the private-sector-led structure of the Electric Power Sector Reform Act (EPSRA) of 2005 took effect. The project, an emergency intervention scheme, was designed to tackle the deficit and expand power sector infrastructure in the country.
Also, NDPHC’s key mandate was to develop 10 power plants with a designed ISO capacity of 5,067MW, and based on the feedback received, it has so far completed eight power plants with a capacity of about 4,000MW.
In power generation, eight of the 10 power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects to support commercial operation, have been commissioned and connected to the national grid contributing over 22,000,000kWh of energy daily subject to the availability of gas.
NPDHC has over 3,000MW of generation capacity available for deployment if the grid permits and this represents the best opportunity for the rapid improvement of power supply to the teaming Nigerians. It is important to note that completed power plants include 750MW Olorunsogo II, 450MW (Ogorode) Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain. The 225MW Omoku, 338MW Egbema, and 530MW Alaoji steam machines would wrap up the total available capacity of the plants to 1,774MW on full completion. Many of the NIPP power plants on the national grid also provide ancillary services like spinning reserves to support the system operations, a contribution critical for stabilizing the national grid.
The presidential move
On Thursday, October 12, Shetima at a business roundtable at OPIC Industrial Estate, Agbara in Ogun State, promised that NDPHC would give the industrialists needed power within the next six months within Agbara industrial cluster because, at the time of his visit, none of them was using energy from the national grid, adding that the ongoing power projects to light up industrial clusters across the country are an indication that the President Bola Ahmed Tinubu administration is on a journey of rekindling the flames of an enterprise.
This is just as he added that the Federal Government’s commitment to revamping Nigeria’s Infrastructure framework was the much-needed drive in empowering Nigerians and strengthening the nation’s economic policies.
“For too long, some of these ventures were forced to pack up, their potential stifled by the persistent energy constraints. Today, we embark on a journey of improvement, a journey aimed at rekindling the flames of enterprise and ensuring that the promise of prosperity prevails over the darkness of past hindrances.
“We have gone a full cycle in the search for solutions to our energy crisis. We have unbundled and privatized the power assets in generation, transmission, and distribution. We have also implemented the National Integrated Power Project through the NDPHC,” he said.
The VP vowed to closely monitor the progress of work in the ongoing power projects to light up industrial clusters across the country and to hold every relevant official accountable.
“I assure you that, in my capacity as the Board Chairman of NDPHC, I will hold every relevant official accountable and closely monitor the progress achieved in this project. We owe Nigerians this success story,” the VP declared.
He reiterated the commitment of the Tinubu administration “to providing the necessary institutional and policy support to ensure the successful delivery” of the project and noted that the partnership between state-owned power companies and the private sector was an embodiment of progress, teamwork, and commitment to fostering synergy to enhance the productivity of businesses and institutions in the country.
The VP stated: “The launch of this strategic collaboration between our company, Niger Delta Power Holding Company Limited (NDPHC), and its key partners for the design, development, and operation of projects to supply dedicated, steady, and quality power to major industrial and commercial clusters in Nigeria echoes His Excellency, President Bola Ahmed Tinubu’s pledge to reinvigorate our nation’s infrastructure framework.
NDPHC’s readiness
Also speaking, the Managing Director of NDPHC, Mr. Chiedu Ugbo, said the business roundtable signified the unwavering commitment and preparedness of NDPHC in strategic collaboration with esteemed partners to undertake bilateral electricity sales to end-users.
According to him, the primary objective of the initiative is to ensure a consistent, reliable, and cost-effective supply of electricity from NDPHC’s power plants to the extensive industrial and business clusters in Agbara and throughout Nigeria.
“As many of you are aware, NDPHC is a wholly-owned government company responsible for implementing the National Integrated Power Project (NIPP), which aims to enhance electricity generation with associated electricity transmission and distribution infrastructure, for the benefit of Nigerians,” he said.
“A significant portion of the capacity remained stranded due to constraints within the transmission and distribution system, distribution losses, gas limitations, and the financial burden on the Federal Government’s balance sheet through NBET, the FGN-owned primary bulk purchaser of electricity that on-sells to electricity distribution companies in Nigeria.
“With the evolving regulatory framework of the Nigerian Electricity Supply Industry (NESI) and the declaration of eligible customers, NDPHC has identified opportunities to revolutionise the industry through end-to-end solutions that increase electricity access for Nigerian homes and businesses and reduce the financial burden on the federal government’s balance sheet.
“This event is a public manifestation of the months of diligent work by the NDPHC team and our project partners, devising creative and viable solutions to address power supply challenges in NESI.
“NDPHC remains at the forefront of the industry in pursuing bilateral power sales and other projects that ensure efficient and targeted power delivery to end-users. We are delighted to witness the incremental results of our collaborative efforts with our partners during today’s events.
“We are grateful for the political support of the Federal Government, represented by our Board Chairman, His Excellency the Vice President, and the state governments, represented by the Executive Governors of Ogun and Lagos States.”
“We are fully aware that beyond the celebrations of today’s event, there remains a substantial amount of work to be done to successfully implement this programme and deliver steady, reliable, and affordable electricity to Nigerian industrial clusters,” he said.
He affirmed NDPHC’s unwavering commitment to the successful execution of the project, not only in Agbara but also in various locations across the country.
“Aside OPIC industrial cluster at Agbara, we are ready to supply electricity to other industrial clusters in Nnewi, Port Harcourt, Kano, and others. We recently signed an agreement with Ibadan Distribution Company. We will put a system in place that will allow us to collect our tariffs and also ensure the security of supply.
Move to unlock potentials in different sectors—Ogun gov
Also speaking, the Governor of Ogun State, Dapo Abiodun, said the location of the pilot phase of the initiative is due to the viability of the Agbara Industrial area as the most successful industrial estate in the country.
He said the initiative aligns with his administration’s drive to provide critical infrastructure in Industrial clusters across the State and thanked President Bola Tinubu and VP Shettima for prioritizing the power sector, noting that it will unlock potentials in different sectors of the economy.
