AKINWALE ABOLUWADE
The Niger Delta Power Holding Company (NDPHC) has raised concerns over a mounting electricity debt of nearly N600 billion, which it says is severely hampering its operations.
According to the company, the debt—owed by the Nigerian Bulk Electricity Trading Plc (NBET) and other bilateral entities—alongside poor offtake from the electricity market, is weighing heavily on its performance.
In a statement released by her Technical Adviser on Media, Adesanya Adejokun, NDPHC’s Managing Director, Jennifer Adighije, highlighted several operational challenges. These include limited gas supply, transmission bottlenecks, and the significant financial burden from unpaid electricity bills.
Adighije revealed that the company’s new management has successfully revived five turbine units across its Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625 megawatts to the national grid. However, she lamented that about 2,000 megawatts of generation capacity remains stranded due to a combination of factors.
“NDPHC currently has a mechanically available generation capacity of about 2,000MW that is significantly underutilised due to transmission constraints, gas supply and transportation issues, and reduced offtake by distribution companies,” she said.
She also noted that the National Integrated Power Project (NIPP) plants are grappling with severe monetisation challenges. Since the inception of NIPP, NDPHC has invested over N500 billion in transmission infrastructure—ranging from transformers and substations to transmission lines and switchyards—now operated by the Transmission Company of Nigeria (TCN).
Commenting on the Alaoji Power Plant, which has been inactive for months, Adighije said a dispute over gas supply metering was responsible for the shutdown. However, she assured that the plant would resume operations before the end of the year, following efforts to restore its Gas Metering Station and prevent further gas losses.
Adighije also disclosed that the company’s attempts to secure a Power Purchase Agreement with NBET had been unsuccessful. She explained that such an agreement would have improved NDPHC’s placement on the national grid’s dispatch priority schedule, boosting its financial stability.
To mitigate the effects of the stranded capacity, she said NDPHC is now exploring opportunities under a Nigerian Electricity Regulatory Commission (NERC) order, which allows for bilateral power sales. According to her, the company is close to finalising several deals with potential off-takers.
