The Managing Director of the Niger Delta Power Holding Company, Mrs. Jennifer Adighije, says the company will reinvest its portion of the recently approved N4tn fund for the payment of the power sector legacy debt.

Adighije said this would help the company to upgrade its plants and improve efficiency.

Speaking at the recent Nigerian Association of Energy Correspondents Energy Summit in Lagos, Adighije said the new management team at NDPHC is committed to strengthening the company’s role as the government’s intervention vehicle in the power sector.

Adighije commended President Bola Tinubu and his team for what she called “the groundbreaking reforms that are going on in the power sector.”

According to her, the President’s insistence on the passage of the Electricity Act has provided the right framework for progress.

“We can see now that the right laws and the right policies and regulations are in place, and we’re leveraging these policies and regulations to be able to shape the market differently, and opportunities are opening up to us in a way like never before,” she said.

Adighije noted that the sector is now transitioning to bilateral trading and cost-reflective tariffs, both of which are boosting liquidity and investor confidence.

“What that is doing for us now is that we’re seeing an increased liquidity in the sector, making the sector even more bankable, making the sector even more attractive for investments. For every business, cash flow is what drives efficiency; cash flow is what drives sustainability. And so, with improved liquidity, power generation companies are assured that we’ll be able to reinvest in the power sector,” she said.

Referring to the N4tn legacy debt approved for settlement by the Federal Government, Adighije said the NDPHC plans to reinvest its share into expanding capacity.

“Very recently, Mr. President graciously approved the N4tn legacy debt, which will now be defrayed by the government in no time. And what that will do for us at NDPHC, knowing that our mandate, which is very pivotal as the intervention entity of the government, is that we plan to reinvest significant portions of those funds in converting our power plants from open cycle to combined cycle.”

She added that the plan will help diversify NDPHC’s generation mix and enhance operational efficiency “in line with the energy transition plan.”

Adighije commended energy correspondents and participants for their support, promising continued collaboration:

“I appreciate energy correspondents. As much as we can at NDPHC, I want you to know that our doors are always open to each and every one of you.”

She recognised the contributions of energy correspondents for their work in promoting accurate narratives about the power sector.

“It’s important that Nigerians know the importance of what we do, and therefore it’s imperative that the right narratives are pushed out. I can see that energy correspondents have been doing a whole lot in ensuring that those right narratives are pushed out there,” she said.

When asked by our correspondent, Adighije declined to state the total amount belonging to NDPHC out of the legacy debt.

However, it could be recalled that she once said the Nigerian Bulk Electricity Trading PLC and other bilateral entities owed the company about N600bn.

Adighije said in May that gas supply challenges and transmission constraints, “as well as close to N600bn debt being owed the company by Nigeria Bulk Electricity Trading and other bilateral entities, are hindering the company’s operations.”

The Minister of Power, Adebayo Adelabu, recently said Tinubu had approved a N4tn bond for the payment of the debts.

The Special Adviser to the President on Energy, Olu Verheijen, held a meeting with top leaders of power generation companies to discuss the next step.