NDPHC Takes “Light Up Nigeria” To Anambra, Kano Despite N190 Billion Debt, Vandalization

By LOVETH AZODO, Lagos

Despite the huge sum of N190 billion owed to the Niger Delta Power Holding Company (NDPHC) and incessant vandalization of its infrastructures, the company has resolved not to be deterred from its plans to take ‘Light Up Nigeria’ initiative to Anambra and Kano states.

This is just as the Managing Director, Mr. Chiedu Ugbo has called for private investors to curb the challenges faced by the company.

The NDPHC boss who spoke while briefing Journalists on the progress and challenges of its “Light up Nigeria” initiative, revealed that the federal government owned company, if paid what it is owed would transform the electricity sector and generate more energy.

According to him, the huge debt is affecting the company negatively no doubt and assured that the company won’t stop in ensuring it carries out its obligations

“We will continue to do our bit, in spite of those challenges we are still doing our work and that is because we have a purpose and the purpose is to light up Nigeria,” he said.

Highlighting the challenges, he said unavailability of sufficient volumes of gas to guarantee generation up to TCN-allocated evacuation capacity of its power plants, he added that calabar is the only plant with full gas supply.

On transmission constraints, he said inadequate T&D capacity to evacuate energy generated from the power plants. “Evacuation limitation is further exacerbated by SO’s frequent startup and shut down instructions to the plants ostensibly for frequency and load control to ensure system safety and reliability but resulting in increased turbine stress, move unscheduled outages and significant maintenance costs.”

On macroeconomic challenges, he noted that huge impact on USD denominated cost increases the costs of gas and spares.

“Gas is denominated in USD but we pay in Naira, We paid for gas at the official rate, the moment we unified the I and E goes up high and gas takes 60percent of cost which means cost will be so high which is a lot of impact, and that would have impacted so much on the carrier but government has analyzed it and doesn’t want to add it to the burden of the consumers so they subsidize it. So macro economic is affecting everyone but government is addressing it.”

However, he stated that foregoing may be seen as challenges but they indeed present good private investments opportunities.

Also speaking on the N190bn debt, the Executive Director of Finance, Babawa Seun stated that the company also have creditors which also keeps them under pressure “for every kobo we are owed we also have our creditors, the bulk of our creditors are the gas suppliers and transporters. We are also under pressure but they also understand. It is the market, the cost of electricity is not cost reflective. If it is cost reflective it will do the needful but because government is concerned about the welfare of Nigerians,” he said.

On Vandalization, Seun lamented that in some of the company’s projects, the cost of securing the infrastructure is more costly than the project itself.

“It is a monumental tragedy done by citizens of Nigeria. They will climb a 330KV tower and begin to dismember it. We have a particular project that the cost of putting security to prevent vandalization on that route is more than the cost of the project. We have to use army, police, local vigilante and even buy boat for them to patrol that place.

“That is why Nigeria is busy grappling with repairing and catching up whereas we should be far ahead other nations. It is becoming a culture and I am very pained talking about this issue of vandalization.”