In order to improve electricity supply around the Ibeju-Lekki area in Lagos and Agbara Industrial area in Ogun State, the Niger Delta Power Holding Company (NDPHC) and Eko Electricity Distribution Company Plc (Eko Disco) have signed a bilateral agreement for the sale of up to 300MW of power from NDPHC’s power plants to customers in these areas within Eko Disco’s franchise areas.
The Lagos State Governor, Mr. Babajide Sanwo-Olu, who hosted the signing of the agreement for the projects in Lagos, recently, was quoted in a statement to have commended the initiative by NDPHC and Eko Disco, saying, he, “will monitor the implementation of the agreement.”
The governor expressed confidence that the collaboration between NDPHC and Eko Disco will complement the current policies of the state government in economic and infrastructure development.
The NDPHC and Eko Disco committed to working together to deliver a safe, reliable and steady supply of power to customers in the areas of collaboration.
“The project will be structured to remove the commercial and technical inefficiencies in the Nigerian electricity market and will mobilise significant capital investment in transmission/distribution infrastructure and metering technology,” the statement added.
In his remarks, the NDPHC Managing Director/CEO, Mr. Chiedu Ugbo, stated that the challenges in the industry inspired NDPHC to, “source alternative means to sell and ensure dispatch of its stranded power generation capacity and explore innovative ways to unlock investment in infrastructure for improved supply to customers.”
In turn, the MD of Eko Disco, Engr. Adeoye Fadeyibi said the partnership aligns with the efforts of the Eko Disco to bridge the metering gap and improve the quality of electricity supply to customers.
He appreciated customers for their continued support for the Company in its quest to continue to empower the quality of lives of all stakeholders.
“The agreement signed between NDPHC and Eko Disco is only the latest milestone in NDPHC’s innovative and ambitious programme to tackle the industry-wide challenges in the Nigerian power sector.
“These challenges have resulted in the inability of the operators in the industry to fulfil their investment and industry payment obligations, and continuing low access to reliable power for industry, businesses and homes.
“Despite a significant installed generation capacity – estimated to be more than 13,000 MW – access to electricity remains acutely low because much of this installed capacity is stranded and cannot be conveyed to customers because of inadequate transmission and distribution capacity.
“Operators insist that tariffs remain at a level that cannot guarantee returns for investors in the sector and as a result, an estimated $20 billion capital investment required to upgrade the transmission and generation infrastructure is not available,” it added.
