Tariff adjustment saves GENCOs from collapse, says Adighije

The Managing Director of the Niger Delta Power Holding Company, Jennifer Adighije, says the recent electricity tariff adjustment, particularly the cost-reflective Band A tariff, has saved Generation Companies from financial collapse. Speaking in an interview monitored by Radio Now’s Newsdesk, she credited the Minister of Power, Adebayo Adelabu, for the move that boosted liquidity in the sector by 70 percent, from ₦1 trillion to ₦1.7 trillion.

Adighije explained that before the Band A tariff reform, only 10 percent of GENCO invoices were paid, but that figure has now risen to 30 percent. She said GENCOs are still owed ₦600 billion, with the federal government accounting for ₦400 billion of the debt through the Bulk Electricity Trading Company.

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She added that Nigerians must be prepared to pay optimally for 24-hour power supply or the government must apply smarter subsidies, such as those that can be managed through smart meters to ensure targeted and efficient support.

Defending the Tinubu administration’s record, Adighije said a peak generation of 6,000 megawatts was achieved in March, marking a key milestone. She said new policies and the Electricity Act have set a solid foundation for the sector’s long-term growth.