Nigerian States Demand Refund For Investments In $10B National Power Initiative

Governors across Nigeria have demanded a refund for their states' investments in the $10 billion National Integrated Power Projects (NIPP), managed by the Niger Delta Power Holding Company (NDPHC).

Moreover, the governors also want the federal government to reimburse them for the profits they believe they should have earned from their investments in these power plants.

The demands were shared in a document, titled "Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments," which the governors submitted to the Federal Ministry of Power.

"The investments by states in the NDPHC need to be clearly defined. States advocate for a refund by the Federal Government of the states' full equity investments in the NIPPs plus an equitable rate of return on their investment," the governors mentioned, News Now Nigeria reported.

"The refund of states' investments in the NIPPs is without prejudice to the ability of the Federal Government to privatize or sell the NIPPs."

As per the new Electricity Act 2023, the state governments can now manage and regulate their own electricity markets independently of the Nigerian Electricity Regulatory Commission.

NIPPs were launched by the government in 2004 to boost Nigeria's electricity generation. It involves building several gas-powered plants across the country to tackle the nation's ongoing power shortages.

These projects are jointly owned by the federal, state, and local governments through the NDPHC, a limited liability company created to manage these assets.

Currently, there are 10 operational NIPP plants across Nigeria, with plans to build more. There have also been talks about privatizing some of these plants. In December 2022, the federal and state governments agreed to sell five NIPP plants to generate funds.

While it is difficult to find out the exact amount of investment in the National Integrated Power Projects, it started with an initial fund of around $2.5 billion, and more money was invested as the project developed.

Initially, the project was planned to cost $9 billion but the Socio-Economic Rights and Accountability Project, a non-governmental organization, reported that about $10 billion was eventually spent.