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The National Electric Power Policy, which was approved in April 2001, expresses the determination of the Federal Government of Nigeria to reform the electric power sector and to modernize and expand the Nigerian Electricity Supply Industry using private sector funding. The Electric Power Sector Reform Act was enacted in 2005 to provide the legal framework for the reform objectives of the Policy and provide a roadmap and timeframe for the implementation of the reform and privatisation strategy.

The National Integrated Power Project (‘NIPP’) is an integral part of Federal Government’s efforts to combat the power shortages in the country. It was conceived in 2004 as a fast-track public sector funded initiative to add significant new generation capacity to Nigeria’s electricity supply system along with the electricity transmission and distribution and natural gas supply infrastructure required to deliver the additional capacity to consumers throughout the country.

In 2005, the Federal Government incorporated Niger Delta Power Holding Company Limited (‘NDPHC’) to serve as the legal vehicle to contract for, hold, manage and operate the assets developed and built under the NIPP using private sector best practices.