July 20, 2024

Electricity: Governors ask Nigeria govt to refund $10bn equity investment in power plants

State governors have called for the refund of state governments’ full equity investments in the estimated sum of $10 billion in National Integrated Power Projects that are under the management of the Niger Delta Power Holding Company.

The 36 state governors under the Nigeria Governors’ Forum said the Federal Government should refund an equitable rate of return on their investments in the power plants.

They made the demands in a recent document submitted to the Ministry of Power, titled, ‘Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments’.

The Federal Ministry of Power confirmed the document but remained mum on the governor’s demand.

“The refund of states’ investments in the NIPPs is without prejudice to the ability of the Federal Government to privatize or sell the NIPPs,” the governors stated.

The development comes with recent efforts to implement the 2023 Electricity Act, which empowered the state government to establish its electricity industry.

Recently, the Nigerian Electricity Regulatory Commission transferred the power of oversight to Enugu, Ondo and Ekiti states.

The implication is that the states will oversee the electricity supply industry within their jurisdiction.

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