How we’ll deploy our share of N4trn debt repayment

By Adewale Sanyaolu

As the federal government wraps up the audit of the N4 trillion legacy debts owed power generation companies (Gencos), the Niger Delta Power Holding Company (NDPHC) has outlined how it plans to utilise its share of the funds when released.

The Managing Director of NDPHC, Mrs. Jennifer Adighije, revealed the company’s strategy during the 2025 National Association of Energy Correspondents (NAEC) Energy Conference held recently in Lagos.

Adighije commended President Bola Tinubu for approving the long-awaited settlement of the legacy debts, describing it as a critical step toward restoring confidence and liquidity in the power sector.

She said: “With the funds available, we at NDPHC, given our unique mandate as the government’s intervention entity in the power sector, plan to deploy a significant portion of these recovered funds toward converting our power plants from open-cycle to combined-cycle operations,” she stated.

According to her, this conversion will dramatically improve the company’s generation efficiency and help diversify the country’s energy mix.

“This will not only enhance efficiency but also diversify our generation mix, aligning with Nigeria’s Energy Transition Plan,” Adighije explained.

She noted that the company’s approach reflects its commitment to delivering sustainable and reliable electricity while contributing to the nation’s decarbonisation goals.

Adighije further noted that the power sector is currently undergoing a major transition, moving towards bilateral trading and the implementation of a cost-reflective tariff regime.

“What this means for us is that we are beginning to see increased liquidity within the sector, which in turn is making it more bankable and attractive for investment,” she noted.

In July 2025, President Tinubu met with chief executives of all power generation companies, where he emphasised the need for patience from GenCos and financial institutions.

The President had also disclosed that government agencies were engaging audit and legal firms to scrutinise the N4.7 trillion claims.

Adighije described the President’s approval as a landmark decision that would go a long way in restoring the financial health of the sector.

“For us in the power generation space, we understand that cash flow drives efficiency and sustainability. Improved liquidity ensures that generation companies are better positioned to reinvest in the power sector,” Adighije said.

She reaffirmed NDPHC’s commitment to supporting ongoing reforms in the sector and called for sustained collaboration among all stakeholders to ensure energy security and economic growth.

Meanwhile, NAEC at the event conferred on the company, Power Company of the Year Award, for its role in sustaining the power sector.