Kassim Shettima has highlighted the critical role the South East region plays in Nigeria’s overall success during the launch of the South East Business Roundtable “Light up Nigeria Program.”
Shettima expressed the belief that Nigeria will thrive when the South East achieves optimal industrialization and ensures a reliable power supply.
Drawing parallels with the Jews, Shettima lauded the South East as “practically mobile, economically enterprising, and educationally ambitious.” He disclosed that he rejected a proposal to cut off electricity to the region due to a debt profile, emphasising Chief Bola Tinubu’s commitment to the nation.
Governor Peter Mbah of Enugu State echoed the sentiment, stating that the “Light-Up Nigeria Project” symbolizes a new era for power and industrialization in the South East. He emphasised that the initiative aligns with his administration’s innovative governance approach, thinking outside the box.
According to Shettima, “We have to make the South East work; we’re targeting the south east for a two million job for women and the youths. We’re proceeding to Abia state to commission the power station built by the elder statesman, Prof Barth Nnaji and we will also commission some road projects and back to Enugu to commission the Smart school because education is the greatest gift you can give a generation.”
Managing Director/CEO of NDPHC, Engr. Chinedu Ugbo, discussed the challenges faced by the NDPHC, including insufficient transmission infrastructure and financial difficulties in the power sector. Ugbo highlighted the NDPHC’s “Light up Nigeria Project,” aiming to provide reliable and affordable electricity to industries and homes. The project aligns with the Electricity Act of 2023, supporting state governments in developing electricity markets at the sub-national level.
Ugbo emphasised that the project aims to reduce the financial burden on the Federal Government’s balance sheet from debt exposure while promoting economic growth, increased access to electricity, and investment opportunities at both state and federal levels.
“The huge indebtedness to the generation companies affects the ability of the generation companies to pay for gas supply leading to gas supply shortage and the resulting low generation. At a recent press conference, the Honourable Minister of Power, rightly identified this severe liquidity crisis as a major impediment to electricity supply in the country with over N1.3 trillion owed to generation companies. NDPHC alone is owed close to N200bn out of that.
“These challenges of lack of sufficient transmission and distribution infrastructure to transport electricity from the plants and the sector market liquidity crisis have resulted in gross underutilisation of installed generation assets with unserved potential grid electricity consumers, particularly industries (some of which are represented here today), resorting to expensive and often inefficient self generation.
“In response to these challenges, NDPHC initiated the Light up Nigeria Project, which aims to provide reliable and affordable electricity supply to industries and homes by utilizing underutilized generation capacity, establishing trading agreements with bulk purchasers of electricity, and mobilizing investments to address technical, commercial, and collection losses in the supply chain. Additionally, NDPHC aims to receive full payment for the electricity generated and delivered, without relying on the Federal Government for such payments.
“The project aligns with the Electricity Act of 2023 (graciously signed into law by His Excellency Present Bola Tinubu GCFR), which provides a strong framework for state governments to develop electricity markets at the sub-national level, with the aim of delivering consistent and affordable electricity to residents. Through the Light up Nigeria project, state governments will derive the benefit of increased access to electricity, attraction of investment opportunities, revenue generation and economic growth. At the Federal level, the project will help to reduce the financial burden on FGN’s balance sheet from debt exposure of NBET.
“The project is further reinforced by NERC’s MYTO 2024 which mandates distribution companies to secure adequate bilateral contracts and exit from contractual relationships with NBET. NDPHC remains at the forefront in pursuing bilateral electric power sales and other projects that ensure efficient and targeted electricity delivery to end-users.”
