Governors Demand $10 Billion Refund from FG in NIPPs Project

State governors in Nigeria have called on the Federal Government to refund the $10 billion equity investments made by state governments in the National Integrated Power Projects (NIPPs), which are managed by the Niger Delta Power Holding Company.

Represented by the Nigeria Governors’ Forum (NGF), the 36 state governors have requested an equitable return on their investments in these power plants. This demand was outlined in a document submitted to the Ministry of Power, titled “Development of the National Integrated Electricity Policy and Strategic Implementation Plan Policy Recommendations by State Governments.”

While the Federal Ministry of Power has acknowledged the receipt of the document, it has not commented on the governors’ demands.

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“The refund of states’ investments in the NIPPs is without prejudice to the ability of the Federal Government to privatize or sell the NIPPs,” the governors stated in their submission.

This development coincides with recent efforts to implement the 2023 Electricity Act, which grants state governments the authority to establish their own electricity industries. Consequently, the Nigerian Electricity Regulatory Commission (NERC) has transferred oversight powers to the states of Enugu, Ondo, and Ekiti, allowing them to manage their respective electricity supply industries independently.