State governors have asked for the refund of their state’s full equity investments in the $10bn National Integrated Power Projects that are under the management of the Niger Delta Power Holding Company.
In addition 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 Federal Ministry of Power confirmed receipt of the document when contacted by our correspondent on Wednesday, but was silent on the demands made by the NGF.
“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.
