State Governors Called For The Refund Of State Governments’ Full Equity Investments In The $10bn National Integrated Power Projects That Are Under The Management Of The Niger Delta Power Holding Company.
In further explanation to this, the governors under their umbrella body-Nigeria Governors’ Forum-said the Federal Government should refund an equitable rate of return on their investments in the power plants.
They made the demands in the document titled, “Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments,’ which was submitted to the Federal Ministry of Power.
“The investments by states in the NDPHC need to be clearly defined. States advocate for a refund by the Federal Government of the states’ full equity investments in the NIPPs plus an equitable rate of return on their investment.
“The refund of states’ investments in the NIPPs is without prejudice to the ability of the Federal Government to privatise or sell the NIPPs,” the governors stated.
State governments have now been empowered under the Electricity Act 2023 to operate and regulate their own electricity markets outside the control of the Nigerian Electricity Regulatory Commission, an agency of the Federal Government.
NIPPs refer to a government-led initiative launched in 2004 to improve Nigeria’s electricity generation capacity. The NIPPs involved the construction of several gas-powered plants across the country. The goal was to address the nation’s long-standing power shortages.
NIPPs are owned by the federal, state, and Local Governments through the Niger Delta Power Holding Company. The NDPHC is a limited liability company specifically created to manage NIPP assets.
There are currently 10 operational NIPP plants across Nigeria. However, there are plans to build more. There have been discussions and plans for the privatisation of some NIPP plants. In December 2022, the Federal Government and states agreed to sell five NIPP plants to raise funds.
$10bn spent on NIPPs
The exact final amount invested in the National Integrated Power Projects may be difficult to pinpoint. However, sources point to an initial commitment of around $2.5bn as a seed fund, and the project involved further investments throughout its development.
The project was initially envisioned with a total outlay of $9bn, but the Socio – Economic Rights And Accountability Project, a non-governmental organisation, said about $10bn was spent on the projects.
“The Obasanjo’s administration spent $10bn on NIPP with no results in terms of increase in power generation. $13.278,937,409.94 was expended on the power sector in eight years while unfunded commitments amounted to $12bn,” the NGO had stated in a statement in August.
While Awaiting FMoP’s reaction
When told what the states were demanding, the media aide to the Minister of Power, Bolaji Tunji, said the Federal Ministry of Power received the document from the NGF.
He promised to revert with respect to the demand by the governors.
However, he had yet to revert till when this report was filed
Christianah ogunyemi
Deputy News editor
Clarion News Channel.