Niger Delta Power Holding Company (NDPHC) currently has over 3,000MW of electricity ready for delivery to the national grid for use by Nigerians. However, due to various constraints including transmission, distribution and gas, the system only takes just about 800MW of this. As a result, many Nigerian businesses and homes continue to suffer from inadequate supply of electricity thus stunting socioeconomic growth.
To ensure that homes and business premises gain access to much needed electricity, Niger Delta Power Holding Company (NDPHC) Limited pioneered the bilateral and eligible contracting programme to ensure improved utilization and offtake of NIPP power plants despite the grid/network challenges that have seen many power plant capacities stranded in the country.
On February 23, 2022, Managing Director of NDPHC, Mr. Chiedu Ugbo signed a Power Purchase Agreement (PPA) with Engr. Patrick Umeh, Managing Director, APL Electric Company Limited (APLE), the electricity distribution company with franchise to service Aba and its environment in Abia State to deliver 100MW of electricity to the distribution company.
Earlier on February 15, NDPHC had similarly signed a PPA with Eko Electricity Distribution Company (EKEDC) for the direct supply of electricity. That agreement was also penned by Ugbo and Managing Director/Chief Executive Officer, EKEDC, Mr. Adeoye Fadeyiri.
The agreement with APLE Company will see NDPHC delivering 100MW of electricity to the 12th distribution company through its Alaoji Power Plant in Abia State through a dedicated pillar.
Managing Director, NDPHC, Mr. Chiedu Ugbo said before now, Aba was getting a maximum of 60MW of electricity from the national grid but now, APLE will be served directly from NDPHC’s Alaoji Generation Company Limited in Abia State through a dedicated pillar.
Also speaking on the landmark agreement, Executive Director, Corporate Services of NDPHC, Mrs. Nkechi Mba said “we at NDPHC are proud of this strategic partnership with APLE at this threshold of history. It is universally acknowledged that Igbo people are great entrepreneurs and businesspeople, and Aba is one the most important centres of MSMES in Africa.
“This power purchase agreement has the potential to unlock more of the enterprises in our people. With adequate supply of electricity, micro, medium and large-scale businesses will be able to produce to their maximum capacity and expand while foreign investments begin to pour in.
“It will also position Nigeria at the vantage point of getting maximum benefits from the African Continental Free Trade Agreement.”
An important highlight of the agreement is the plan to immediately provide metres in every premise and so, eliminate the estimated billing system.
In the second agreement, NDPHC will deliver about 200MW of electricity directly to EKEDC also through Alaoji.
The pact, which took immediate effect, will ensure adequate electricity supply to manufacturing companies in Agbara, higher institutions within the EKEDC franchise area and other existing customers.
• By Sanya Adejokun, Media Adviser, NDPHC