The Niger Delta Power Holding Company (NDPHC) has reported more than N300 billion in losses as over 1,500 megawatts (MW) of mechanically available generation capacity remains largely stranded due to transmission and electricity market constraints.
The NDPHC Managing Director and Chief Executive Officer, Jennifer Adighije, disclosed this during an oversight visit to the company’s headquarters in Abuja by the House of Representatives Committee on Power, chaired by Victor Nwokolo.
Adighije said NDPHC currently has more than 1,500MW of mechanically available generation capacity but receives an hourly dispatch allocation of only about 500MW.
The gap between available generation capacity and actual dispatch has limited the company’s ability to fully utilise its assets and has resulted in losses exceeding N300 billion.
Adighije identified transmission constraints, low electricity tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as key challenges affecting NDPHC’s operations.
She called for regulatory intervention to review the electricity market’s dispatch merit order and improve the utilisation of available generation capacity.
The NDPHC chief said the company currently contributes about 4,000MW to Nigeria’s installed generation capacity of approximately 12,000MW, representing about 30 per cent.
Under the first phase of the National Integrated Power Project (NIPP), NDPHC built 10 power plants. Seven are commercially operational, two are under construction, while one is undergoing upgrades.
NDPHC is preparing to commence the second phase of the NIPP, with a shift from its gas-fired generation model towards renewable energy.
According to Adighije, NIPP Phase 2 will focus particularly on Nigeria’s renewable energy potential, especially in the northern region.
The planned projects will include solar, mini-hydropower and off-grid power developments as the company seeks to diversify the country’s generation mix in line with the Energy Transition Plan.
“Where we are currently is NIPP Phase 1, which is power generation from fossil fuels, from gas. The NIPP Phase 2, in line with the Energy Transition Plan, is where we are diversifying our generation mix and preparing to transition to renewable energy,” she said.
NDPHC said the initiative is expected to help close electricity supply gaps and improve the resilience of Nigeria’s power system.
Beyond generation, the company said it has completed 120 transmission projects across the country.
The projects comprise 60 330kV substations, 31 132kV substations and 37 expansion projects, with total installed transformer capacity exceeding 10,000MVA.
NDPHC has also implemented hundreds of distribution projects involving distribution transformers and 33kV and 11kV lines.
Adighije disclosed that the company recovered 110 abandoned containers and 216 packages within her first 100 days in office, saving more than N30 billion.
The company also recovered about $12 million from cross-border bilateral customers in Togo and other debtors from an outstanding liability of more than $50 million.
The NDPHC management also appealed to the House Committee on Power to intervene in outstanding debts owed to the company by participants in the electricity market.
Adighije said liabilities owed by the Nigerian Bulk Electricity Trading Plc had risen above N400 billion.
She also requested the settlement of obligations arising from NDPHC assets recognised in the regulated asset base of the Transmission Company of Nigeria.
According to her, the company has recovered several turbines across its power plants, restoring about 470MW of generation capacity to the national grid.
Responding to the concerns raised by NDPHC, the Chairman of the House Committee on Power, Victor Nwokolo, commended the company’s management for its efforts to improve generation and restore power assets.
Nwokolo said the oversight visit was aimed at understanding the operational and financial challenges facing NDPHC and identifying areas where legislative intervention could support improvements across the power value chain.
“If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing for me to distribute. So I must commend them,” he said.
He assured the company that the committee would examine the issues raised and engage relevant stakeholders towards resolving the challenges.
Nwokolo also cited the Alaoji power plant as an example of NDPHC’s efforts to restore generation assets, noting that the facility could have suffered further deterioration without proactive intervention by the current management.
