VP Shettima Flags Off South East Light Up Project In Enugu

Vice President Kashim Shettima launched the Light Up project in Enugu on Monday, as part of the Nigerian government’s efforts to improve energy supply to industrial clusters in the South East.

The Light up Nigeria South-East project/Business Roundtable, which was launched in Enugu on Monday, is a collaboration between Niger Delta Power Holding Company Limited (NDPHC) and partners.

Senator Hope Uzodinma, Governor of Imo State and Chairman of the South-East Governors’ Forum, attended the event, as did Dr. Peter Mba, Governor of Enugu State, Prof. Charles Chukwuma Soludo, Governor of Anambra State, and Hon. Francis Nwifuru, Governor of Ebonyi State.

Others include former Senate President Pius Anyim, the Managing Director of NDPHC, Chiedu Ugbo, Minister of Power Adebayo Adelabu, Emeka Offor, Chairman of the Board of Directors of Enugu Electricity Distribution Company (EEDC), and other dignitaries.

The Vice President described the project as a transformational journey that will renew hope for regional industrialists and investors.

According to him, the light-up project is important to President Bola Tinubu, demonstrating Tinubu’s administration’s commitment to improving the speed of power supply to industrial clusters in the South East.

The Vice President, who assured everyone that the project was doable, urged all stakeholders to work together to ensure its success.

He stated, “The long-awaited solution to epileptic power supply is finally here, and this project will help to stabilise Nigeria because, without power, there can be no industrialization.

“The economic fortune of Nigeria remains a critical concern of President Tinubu because we believe that if the power sector works, Nigeria works as well, so we must make this project work and the South East work,” he stated.

Governor Peter Mbah of Enugu State, who virtually spoke for his colleagues, stated that the Light-Up Nigeria Project marks a new dawn for power and industrialization in the South East region, citing the initiative’s alignment with his administration’s disruptive approach to governance, which is based on thinking outside the box.

Mbah commended the Federal Government and the Niger Delta Power Holding Company (NDPHC) for initiating the project to increase power supply to industrial clusters in the South East and urged regional industrialists to fully embrace it and take advantage of the initiative to remove any bottlenecks in power availability.

“The Light up Nigeria Project Today, in my opinion, represents a new dawn for power in the South East and is one of the most innovative initiatives in the power sector. This project is critical because it involves the power sector, which I believe is critical to economic growth. Indeed, if we fix power, several other sectors will fall into place.

“This project ensures efficient power delivery to the largest consumers through bilateral sales agreements, which supersede existing bulk purchase arrangements through NBET and rely on a willing buyer, willing seller structure.

“The Programme will undoubtedly improve access to affordable power in the South East. As a result, the productive sector’s power costs will be reduced, allowing them to increase productivity and create jobs. This is critical in this day and age when the country is pushing to increase production and exports to shore up our domestic currency.

“As a result, this project is completely consistent with our approach to governance in Enugu in the sense that it is a very disruptive initiative that demonstrates a strong ability to think outside the box. Today’s Nigeria demands a significant shift from business as usual to business unusual.

He pledged his government’s continued support for industrialists and other private investors across the state, in addition to the undeniable boost that the Light-up Nigeria Project would provide.

The governors of Anambra, Enugu, Imo, and Ebonyi states also addressed the audience.

In his welcome address, the Managing Director/Chief Executive Officer of Niger Delta Power Holding Company Ltd (NDPHC), Chiedu Ugbo, said the event provided an opportunity for the business community in the South-East Zone to interact with His Excellency, the Vice President of Nigeria, and that it marked the formal launch of the South-East phase of the strategic collaboration between NDPHC and other project parties to provide steady and reliable electricity supply to

He stated: “We are honoured to have you all here today. This event is one of several initiatives spearheaded by His Excellency, the Vice President, who also serves as the Chairman of Niger Delta Power Holding Company.

“These initiatives demonstrate the commitment and determination of the President Tinubu administration, working through the NDPHC, to
Provide dependable and long-term solutions to the country’s electricity challenges, beginning with dependable and affordable industrial supply.

“The first event in this series took place on October 12, 2023, at Agbara, Ogun State, South-West Nigeria, where His Excellency
engaged with the business community and committed to providing the necessary electricity to power businesses in industrial areas throughout
the country via NDPHC.

“Since then, significant progress has been made on the Agbara Project, including the identification and signing of key industrial customers.
Conducting engineering surveys, negotiating transaction agreements, and selecting OEM/EPC providers for transmission and distribution projects.

In addition, NDPHC has
We collaborated closely with the Transmission Company of Nigeria (TCN) and FGN Power Company to conduct engineering surveys, identify sites, and acquire a mobile transmission substation for the project.

“TCN has approved the connection of the new substation to the national grid, and plans are underway to deploy this fast-track transmission substation.

“Today’s event builds on the commitment made by His Excellency in
Agbara will be replicated in other geopolitical zones throughout the country.

“The Light up Nigeria project, the focus of today’s event, is being led by Niger Delta Power Holding Company Limited (NDPHC).

“NDPHC, a government-owned company, is accountable for
Implementing the National Integrated Power Project (NIPP) and managing a portfolio of gas thermal electricity generation assets in Nigeria.

“However, technical challenges and market constraints have hampered the best use of these assets.

“One major challenge is the lack of adequate gearbox, and
The distribution infrastructure is used to transport power from the plants. To emphasise this point, we just last Friday received the Honourable
Minister of Power visits our 500MW Benin (Ihovbor) Power Plant.

“This power plant shares transmission facilities with the Azura-Edo Power Plant next door, which has over 460 MW. The two plants combined can
produce more than 900MW. The Honourable Minister saw firsthand the extent of underutilization of the NDPHC generation plant as a result of the gearbox constraints.

“However, Transmission
The company of Nigeria is now working hard to resolve the constraint in that power plant.

“Another issue is financial difficulties in Nigeria’s electric power sector, which has resulted in insufficient payments from distribution companies and the Nigeria Bulk Electricity Trading Company (NBET) to generation companies such as NDPHC. The huge debt to the generation companies affects their ability to pay for gas supply, resulting in gas supply.
shortage, resulting in low generation.

“On January 31, 2024.
The Honourable Minister of Power paid a visit to our Olorunsogo Power Plant (near Papalanto in Ogun State and Omotosho Power Plant near Ore in Ondo State) and witnessed firsthand the extent of gas supply constraints to the two power plants, which have a combined installed capacity of over 1,000MW. During a recent press conference,
The Honourable Minister of Power correctly identified the severe liquidity crisis as a major impediment to electricity supply in the country, with more than N1.3 trillion owed to generation companies. NDPHC alone is
Approximately N200 billion was owed out of that.

“The lack of sufficient transmission and distribution infrastructure to transport electricity from the plants, combined with the sector market liquidity crisis, has resulted in gross underutilisation of
installed generation assets with untapped potential grid electricity consumers, particularly industries (some of which are represented here today), resorting to costly and often inefficient self-generation.

“In response to these challenges, NDPHC launched the Light up Nigeria Project, which aims to provide reliable and affordable electricity supply to industries and homes by utilising underutilised generation capacity, establishing trading agreements with bulk
Electricity buyers are mobilising investments to address technical, commercial, and collection losses in the supply chain.

“Additionally, NDPHC intends to receive full payment for electricity generated and delivered without relying on the Federal Government for such payments.

“The project aligns with the Electricity Act of 2023 (graciously signed).
His Excellency Present Bola Tinubu GCFR) signed it into law, creating a strong framework for state governments to develop
electricity markets at the subnational level, with the intention of
Residents receive consistent and affordable electricity.

“The Light up Nigeria project will benefit state governments by increasing access to electricity, attracting investment opportunities, generating revenue, and promoting economic growth.”

“At the federal level, the project will help to reduce the financial burden on the FGN’s balance sheet resulting from NBET’s debt exposure.”

“The project is further reinforced by NERC’s MYTO 2024, which requires distribution companies to secure adequate bilateral contracts and terminate contractual relationships with NBET. NDPHC continues to lead the way in pursuing bilateral electric power sales and other projects that ensure efficient and targeted electricity delivery to end users,” he stated.

He then assured the South-East Governors and the business community that the Light up Nigeria Project would have the dedicated and diligent attention of the NDPHC team and its project partners devising creative and bankable solutions to addressing power supply challenges for industries in the Zone.

“We are grateful for His Excellency, the Vice President,’s support and leadership during these roadshow events. We also express our gratitude to Your Excellencies, the State Governors, particularly
Those in the South-East, thank you for supporting NDPHC projects in your respective states.
Special thanks to the governor of Enugu State for hosting this.
event.

“We would also like to express our gratitude to EEDC, EnerixOne, and Electric Utilities Limited We are excited about the collaboration and opportunities that lie ahead.

“Together, we can make a significant impact on the electric power sector and contribute to the growth and development of our country,” he said.