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NDPHC IDENTIFIES INADEQUATE GAS SUPPLY, OTHERS AS MAJOR CHALLENGES FACING POWER GENERATION

Admin
Friday, 16 October 2020

The Managing Director of the Niger Delta Power Holding Company Limited (NDPHC), Mr.Chiedu Ugbo, yesterday said that the inadequate gas supply and evacuation of power generated among others were the major problems facing the power generating companies in Nigeria. 

Ugbo made the revelation when he conducted members of the House of Representatives Committee on Power led by Hon. Magaji Aliyu on a tour of the power plants in Ogorode, Sapele, Delta State and the Benin generation company, Ihovbor in Edo state. 

Ugbo, while conducting the National Assembly members round the Benin generation company lamented that gas supply was one of the major challenges faced by generating plant. 

As is that of liquidity and if we have the money we can get the gas company to be involved in the investment. We have abundant gas resources in Nigeria, but there is an inadequate fund to access the gas to the Power value chain. 

“This is because people are not paying appropriate tariff in any of the value chains which is affecting all the systems from the gas producers to generation, to transmission to the distributors. 

Again there is collection inefficiencies in power sector, from the generation to distribution to bulk trader down the chain are not paying the generation companies enough.” 

The Managing Director, however, commended President Muhammadu Buhari for the presidential power initiative, adding that the Siemens project would provide a holistic approach to the power sector problems. 

He also said that the Siemens project would help to clean up the transmission and distribution networks to take the available megawatt sitting idle in the power plants. 

Hon. Magaji Aliyu, the Chairman of the House Committee on Power, noted that Nigeria had the potential to generate over 10,000 megawatt of electricity from existing plants. 

At the moment, according to him, Nigeria was currently generating about 3,000 MW, which he said was insufficient, stressing that the NIPP alone had above 4,000 megawatt installed capacity. 

“I sincerely believe that the problem is not about generation, the problem must be from the transmission or the distribution,” he said. 

About IWIN

The Independent Energy Watch Initiative (I-WIN), an enterprise of Energy ConServ and the Roundtable for the Growth and Development of Power (RODEP), is an online/web based power sector portal that strives to engage stakeholders and the Nigerian public on topical issues in the power sector.

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