Vice President flags off Light Up Nigeria project for South East zone, in Enugu
By MAURICE OKAFOR
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Vice President Kashim Shettima yesterday flagged off the Light Up Nigeria project in Enugu, an initiative of the federal government to improve power supply in the South East zone of the country. He described the project as transformative and a renewal of hope for industrialists and investors in the southeast zone of the country.
He said the light-up project is part of the federal government’s effort for improved acceleration of power supply to industrial clusters in the South East zone.
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The Vice President stated: “The long-awaited solution to the epileptic power supply is finally here and this project will help to stabilize Nigeria because if there is no power there can be industrialization.
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“The economic fortune of Nigeria remains the critical concern of President Tinubu as we believe that if the power sector works, Nigeria works too so we must make the project work and make Southeast work,” he said.
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The Enugu Governor Peter Mbah described the Light-Up Nigeria Project signals a new dawn for power and industrialization of the Southeast zone, stating the initiative aligns with his administration’s disruptive approach to governance underpinned by thinking outside the box.
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Mbah, while commending the Federal Government and the Niger Delta Power Holding Company (NDPHC) for coming up with the project to ramp up power supply to industrial clusters in the South East, enjoined industrialists of the region to fully key into it and take advantage of the initiative to remove any bottlenecks they face regarding power availability.
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.His words, “The Light up Nigeria Project Today is, in my view, a new dawn for power in the South East and one of the most innovative initiatives in the power sector. This project is of critical importance since it deals with the power sector, which I believe is pivotal to economic growth. Indeed, if we fix power, a lot of other sectors would fall into place.
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“This project ensures efficient dispatch of power to the largest consumers via bilateral sales agreements, which overrides the existing bulk purchase arrangements through NBET, leveraging on a willing buyer, willing seller structure.
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“The Programme will certainly bring improved access to affordable power to the South East. This will in turn result in reduced power costs for the productive sector and enable them to improve enhanced productivity and generate jobs. This is critical in this day where the country is pushing to boost production and drive up exports to ultimately shore up our domestic currency.
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“Therefore, this project aligns completely with our approach to governance in Enugu in the sense that it is a very disruptive initiative, which shows a deep ability to think outside the box. Today’s Nigeria requires a marked departure from business as usual to business unusual.
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He pledged his government’s continued support to industrialists and other private investors across the state to complement the undeniable boost that the Light-up Nigeria Project would bring.
Earlier in his welcome address, the Managing Director/Chief Executive Officer of Niger Delta Power Holding Company Ltd (NDPHC) Chiedu Ugbo said the event provided an opportunity for the business community in the South-East Zone to interact with His Excellency, the Vice President of Nigeria, adding that it marked the formal launch of the South-East phase of the strategic collaboration between NDPHC and other project parties to provide steady and reliable electricity supply to industrial and business clusters across Nigeria.
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His words: “We are honoured to have you all here today. This event is part of a series of initiatives led by His Excellency, the Vice President, who serves as the Chairman of Niger Delta Power Holding Company.
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“These initiatives demonstrate the commitment and determination of President Tinubu’s administration, working through NDPHC, to
provide reliable and sustainable solutions to the electricity challenge in the country, starting with reliable and affordable supply to industries.
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“The first event in this series took place on October 12, 2023, in Agbara, Ogun State, South-West Nigeria, where His Excellency
engaged with the business community and committed to providing the required electricity to power businesses in industrial areas across
the country through NDPHC.
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“Since then, significant progress has been made on the Agbara Project including identifying and signing on key industrial customers,
conducting engineering surveys, negotiating transaction agreements, and procuring OEM/EPC providers for the required transmission and distribution projects.
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“Additionally, NDPHC has worked closely with the Transmission Company of Nigeria (TCN) and FGN Power Company to conduct engineering surveys, identify sites, and acquire a mobile transmission substation for the project.
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“TCN has approved the connection of the new substation to the national grid, and efforts are underway to deploy this fast-track transmission substation.
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“Today’s event builds on the commitment made by His Excellency at
Agbara and will be replicated in other geopolitical zones across the country.
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“The Light up Nigeria project, which is the focus of today’s event, is led by Niger Delta Power Holding Company Limited (NDPHC).
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“NDPHC, a government-owned company, is responsible for
implementing the National Integrated Power Project (NIPP) and operating a portfolio of gas-thermal electricity generation assets in Nigeria.
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“However, the optimal utilization of these assets has been hindered by technical challenges and market constraints.
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“One major challenge is the lack of sufficient transmission and distribution infrastructure to transport power from the plants. To underscore this point, just last Friday, we received the Honourable
Minister of Power at our 500MW Benin (Ihovbor) Power Plant.
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“This power plant shares the transmission facilities with Azura-Edo Power plant next door with over 460 MW. The two plants together can
generate over 900MW. The Honourable Minister witnessed first-hand the level of underutilisation of the NDPHC generation plant as a result of the transmission constraint.
The company of Nigeria is now working assiduously towards resolving that constraint in that power plant.
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“Another challenge stems from financial difficulties in the electric power sector here in Nigeria, leading to inadequate payments by distribution companies and Nigeria Bulk Electricity Trading company (NBET) to generation companies like NDPHC. The huge indebtedness to the generation companies affects the ability of the generation companies to pay for gas supply leading to gas supply shortage and the resulting low generation.
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Ugbo recalled, “On 31st January 2024, the Honourable Minister of Power visited our Olorunsogo Power Plant (near Papalanto in Ogun State and Omotosho Power Plant nnear Ore in Ondo State) and saw first-hand the extent of gas supply constraint to the two power plants which put together have over 1000MW installed capacity. At a recent press conference, the
Honourable Minister of Power, rightly identified this severe liquidity crisis as a major impediment to electricity supply in the country with over N1.3 trillion owed to generation companies. NDPHC alone is
owed close to N200bn out of that.
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“These challenges of lack of sufficient transmission and distribution infrastructure to transport electricity from the plants and the sector market liquidity crisis have resulted in a gross underestimation of
installed generation assets with unversed potential grid electricity consumers, particularly industries (some of which are represented here today), resorting to expensive and often inefficient self-generation.
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“In response to these challenges, NDPHC initiated the Light up Nigeria Project, which aims to provide reliable and affordable electricity supply to industries and homes by utilizing underutilized generation capacity, establishing trading agreements with bulk
purchasers of electricity, and mobilizing investments to address technical, commercial, and collection losses in the supply chain.
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“Additionally, NDPHC aims to receive full payment for the electricity generated and delivered, without relying on the Federal Government for such payments.
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“The project aligns with the Electricity Act of 2023 (graciously signed
into law by His Excellency Present Bola Tinubu GCFR), which provides a strong framework for state governments to develop
electricity markets at the sub-national level, with the aim of
delivering consistent and affordable electricity to residents.
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“Through the Light up Nigeria project, state governments will derive the benefit of increased access to electricity, attraction of investment opportunities, revenue generation and economic growth.
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“At the Federal level, the project will help to reduce the financial burden on FGN’s balance sheet from the debt exposure of NBET.
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“The project is further reinforced by NERC’s MYTO 2024 which mandates distribution companies to secure adequate bilateral
contracts and exit from contractual relationships with NBET. NDPHC remains at the forefront in pursuing bilateral electric power sales and other projects that ensure efficient and targeted electricity
delivery to end-users.
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He assured South-East Governors and business community that the Light up Nigeria Project would
have the dedicated and diligent attention of the team of NDPHC and its project parties devising creative and bankable solutions to addressing power supply challenges to industries in the Zone.
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“We are grateful for the support and leadership of His Excellency, the Vice President, in these roadshow events. We also extend our appreciation to Your Excellencies, the State Governors, especially
those in the South-East, for your support of NDPHC projects in your respective states. Special thanks go to the Governor of Enugu State for hosting this event.
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“We would also like to express our gratitude to EEDC, EnerixOne, Electric Utilities Limi
We are excited about the collaboration and opportunities that lie ahead.
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“Together, we can make a significant impact on the electric power sector and contribute to the growth and development of our nation.
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Some of the dignitaries in attendance were the governor of Imo State and the Chairman, of the South-East Governors’ Forum, Senator Hope Uzodinma, the Governor of Enugu State, Dr Peter Mba, the Governor of Anambra State, Prof. Charles Chukwuma Soludo and the Governor of Ebonyi State, Hon. Francis Nwifuru, former senate President Pius Anyim, Minister of Power, Adebayo Adelabu, Emeka Offor, the Chairman, Board of Directors, Enugu Electricity Distribution Company, (EEDC) among other dignitaries.
