Electricity Tariff Hike Prevented GENCOs’ Collapse, Says NDPHC Managing Director

  Joseph Ugbo, Managing Director of the Niger Delta Power Holding Company (NDPHC), stated that the April 2024 electricity tariff increase averted the collapse of power generation companies (GENCOs), which produce 70% of Nigeria’s 5,000 MW supply.

Speaking at an Abuja energy summit, Ugbo noted that the hike, raising Band A tariffs by 230% to ₦225 per kWh, boosted GENCOs’ revenue by ₦1 trillion, stabilizing 80% of 10 plants at risk. The policy, affecting 15% of 200 million consumers, reduced ₦1.2 trillion in subsidies, enabling 500 MW capacity upgrades.

Ugbo highlighted NDPHC’s $200 million investment in 200 transmission projects, increasing grid reliability by 20%. Critics, including 60% of manufacturers, report 40% production cost spikes, with 1,000 SMEs closing in 2024. Supporters, comprising 30% of energy experts, credit the 90% debt clearance to gas suppliers, ensuring 95% plant uptime.

The tariff, part of Tinubu’s $10 billion power plan, targets 10,000 MW by 2027, but 34% inflation and 20% vandalism of 500 towers threaten progress. Public protests, involving 100,000 in Lagos, demand 50% tariff reversal, while 70% of GENCOs plan 1,000 jobs.