The Niger Delta Power Holding Company (NDPHC) has sounded the alarm over worsening operational conditions in Nigeria’s power sector, as nearly 2,000 megawatts of its own electricity generation capacity is stranded due to transmission bottlenecks, gas supply limitations, and weak demand from distribution companies (Discos).
Managing director of NDPHC Jennifer Adighije, said the company is struggling under a combined burden of systemic inefficiencies and staggering financial liabilities, including a debt of nearly N600 billion owed by the Nigerian Bulk Electricity Trading (NBET) and other bilateral entities.
She said these issues have significantly weighed down the company’s performance despite notable efforts to ramp up power generation.
The NDPHC chief revealed that five previously dormant turbine units at the Calabar, Omotosho, Sapele, and Ihovbor power plants have been resuscitated, contributing an additional 625MW to the national grid. But she expressed frustration that much of this capacity remains underutilised.
“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations in addition to dwindling offtake by the distribution companies,” she stated.
She further disclosed that the NIPPs are frequently directed by the system operator to provide critical ancillary services like grid stabilisation without compensation, which ought to be monetised in line with the grid code and industry regulations.
“However, NIPP plants are ordered to startup and shut down at the prerogative of the system operator without any form of compensation thus leading to low utilisation of capacity and operational stress on the generating turbine units, ” she said.
According to Adighije, the challenges extend beyond technical hurdles to structural market failures, including a dispatch framework that ranks NDPHC plants among the lowest priorities.
She lamented that NDPHC is placed in the least priority bucket for dispatch in spite of its available daily dispatch capacity of about 2,000MW.
“By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector. Conversely, much of that capacity remains stranded.”
She emphasised that NDPHC plants are often kept idle not due to lack of readiness but because of inadequate transmission corridors and limited demand from the downstream electricity market.
“Power generation is driven by demand, and therefore, if the demand isn’t made, the plants will not generate. In certain cases, when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network,” she explained.
On the issue of funding, she decried NBET’s failure to finalise a Power Purchase Agreement (PPA) with NDPHC, a deal that would have enhanced the company’s dispatch ranking and improved cash flow.
The absence of a PPA, she noted, has further eroded the company’s financial position and forced a strategic pivot toward bilateral power trading.
Adighije announced that NDPHC is now leveraging a Nigerian Electricity Regulatory Commission (NERC) order that allows direct power sales to eligible customers
The company currently has a generation capacity in excess of demand from the national grid, and is thus prioritising direct supply to bilateral and eligible customers to commercialise its stranded capacity
She said the NERC directive, which empowers generation companies to bypass the centralised market and sell directly to qualified buyers, has become crucial to NDPHC’s new operational model.
“This strategy seeks to unlock that stranded energy by dedicating significant portions of it now to eligible customers and bilateral trading arrangements,” she noted.
She also addressed the prolonged shutdown of Alaoji Power Plant, attributing it to a metering dispute with the gas supplier. However, she assured that substantial progress has been made in restoring the gas metering infrastructure, and the plant is expected back online before year-end. “Significant steps have been taken to restore the Gas Metering Station (GMS) to provide a lasting solution to gas losses to the plant,” she said.
Despite these setbacks, NDPHC has continued to invest heavily in transmission and distribution infrastructure, committing over N500 billion to projects such as substations, transformers, transmission lines, switchgear, and line bay extensions—many of which are now operated by the Transmission Company of Nigeria (TCN).
Adighije acknowledged the ongoing efforts of Bayo Adelabu, minister of Power, in addressing transmission issues but emphasised the urgent need for comprehensive reforms to realign supply, demand, and grid capacity.
“In spite of these limitations, NDPHC continues to spearhead transmission grid expansion plans and distribution network interventions to enable power generation to be delivered to the last mile underserved communities,” she stated.
