The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company, Jennifer Adighije, has urged the Federal Government to remove electricity subsidies for all customers and implement fully cost-reflective tariffs to restore financial stability in Nigeria’s power sector.
Adighije made the call in a statement made available to our correspondent in Lagos.
The MD, while highlighting deep-rooted structural and liquidity challenges constraining the performance of the electricity market, advocated the decoupling of government subsidies from electricity tariffs and the gradual implementation of fully cost-reflective tariffs across all customer segments.
According to her, establishing a financially viable electricity market is essential for restoring investor confidence, attracting private sector participation and ensuring sustainable sector growth.
The NDPHC boss lamented that liquidity constraints remain a major concern in the sector, revealing that only about 30 per cent of market invoices are currently settled, thereby creating financial strain across the electricity value chain.
She also identified gas supply shortages as a persistent challenge affecting thermal generation plants, explaining that gas procurement alone accounts for nearly 60 per cent of operational costs for power generation companies.
“In addition, liquidity constraints within the electricity market remain a major concern, as only about 30 per cent of sector invoices are currently settled, creating financial strain across the value chain. To address these systemic issues, there should be the decoupling of government subsidies from electricity tariffs and the gradual implementation of fully cost-reflective tariffs across all customer segments.
