By Adedapo Adesanya
Nigerian state governors have made their intentions known to divest from the $10 billion National Integrated Power Projects (NIPP) under the management of the Niger Delta Power Holding Company (NDPHC).
Business Post gathered that the Nigeria Governors’ Forum submitted its move to the Federal Ministry of Power in a document titled Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments.
The governors also said the federal government should refund an equitable rate of return on their investments in the power plants.
In the document, the sub-nationals demanded that “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 refund of states’ investments in the NIPPs is without prejudice to the ability of the Federal Government to privatise or sell the NIPPs.”
NIPPs is a government-led initiative launched in 2004 by former President Olusegun Obasanjo to improve Nigeria’s electricity generation capacity. The NIPPs involved the construction of several gas-powered plants across the country. The goal was to address the nation’s long-standing power shortages.
NIPPs are owned by the federal, state, and Local Governments through the Niger Delta Power Holding Company. The NDPHC is a limited liability company specifically created to manage NIPP assets.
There are currently 10 operational NIPP plants across Nigeria. However, there are plans to build more. There have been discussions and plans for the privatisation of some NIPP plants.
In December 2022, the federal government under then President Muhammadu Buhari and the state governors agreed to sell five NIPP plants to raise much-needed funds and stop relying on borrowing.