The Niger Delta Power Holding Company has called for the settlement of more than N400 billion owed to it by participants in Nigeria’s electricity market.
The company said the outstanding liabilities were affecting its operations and limiting its ability to support the development of the power sector.
The Managing Director and Chief Executive Officer of NDPHC, Jennifer Adighije, made the disclosure during an oversight visit to the company’s headquarters in Abuja by the House of Representatives Committee on Power.
The committee is chaired by Hon. Victor Nwokolo.
NDPHC Appeals to House Committee
According to a statement signed by NDPHC’s Head of Corporate Communication and External Relations, Nazo Agim, Adighije appealed to the committee to intervene in the outstanding debts owed to the company.
She identified electricity market participants, including the Nigerian Bulk Electricity Trading Plc, as some of the entities with significant financial obligations to NDPHC.
Adighije said the liabilities owed by NBET and other participants had accumulated to more than N400 billion.
She therefore urged the lawmakers to support efforts to resolve the debts and improve the financial position of the company.
Company Seeks Settlement of TCN-Related Obligations
The NDPHC chief executive also requested the settlement of obligations arising from the company’s assets recognised in the regulated asset base of the Transmission Company of Nigeria.
The regulated asset base is used in determining the value of assets considered in the regulation of electricity transmission services.
According to the company, resolving the outstanding obligations would help improve its operational capacity and support the wider development of Nigeria’s electricity infrastructure.
Debt Remains a Major Challenge
The electricity market has continued to face liquidity challenges.
Several operators across the power value chain have struggled with unpaid obligations. These challenges affect the ability of companies to invest in infrastructure, maintain facilities and improve service delivery.
For NDPHC, the recovery of outstanding debts is important because the company plays a major role in the development and management of power generation and transmission assets.
However, unpaid market obligations can weaken the financial position of operators and delay planned investments.
Why the Intervention Matters
The intervention of the House Committee on Power could help bring greater attention to the financial obligations owed to NDPHC.
It may also support discussions on how to improve payment discipline within the electricity market.
A sustainable settlement mechanism would be important for the stability of the sector. It would also help reduce financial pressure on companies responsible for delivering electricity infrastructure.
Outlook for the Power Sector
Nigeria’s electricity sector requires significant investment to improve generation, transmission and distribution.
However, such investment depends partly on the financial health of market participants.
The NDPHC’s appeal highlights the need for stronger financial coordination across the electricity value chain.
It also reinforces the importance of resolving outstanding debts as part of efforts to improve the reliability and sustainability of Nigeria’s power sector.
