Despite Nigeria’s ongoing efforts to tackle power shortages, a critical segment of the country’s electricity generation capacity under government control remains largely dormant. Power plants managed by the Niger Delta Power Holding Company (NDPHC), with a combined installed capacity exceeding 4,000 megawatts (MW), are currently generating less than 1,000MW, leaving millions of Nigerians in darkness.
A recent Nigerian Electricity Regulatory Commission (NERC) report revealed that only the Ihovbor 2 power plant is operating near full capacity, generating 449MW out of its 461MW potential. Conversely, other government-owned plants are operating far below their installed capacities, some even producing negligible power for months.
For instance, the Alaoji 1 power plant, rated at 500MW, has not produced any electricity for several months. The Olorunsogo 2 plant, with a capacity of 750MW, generated just 24MW in April, representing a mere 3% output. Similarly, the Sapele 1 and 2 power plants operated at 3% and 21% capacity, respectively. Other facilities like Omotosho 2 and Ihovbor 1 also recorded very low output, exacerbating the country’s power supply challenges.
The NDPHC was established to oversee the National Integrated Power Projects (NIPP), an initiative launched during President Olusegun Obasanjo’s administration to address Nigeria’s chronic power shortage through massive infrastructure investments. The NIPP aimed to integrate all elements of power generation—from fuel supply to transmission—to provide reliable electricity nationwide.
However, more than two decades later, the results have fallen far short of expectations. Despite the installation of multiple large-scale plants, only about 39% of the total 13,625MW installed capacity was generated last month. The disparity between potential and actual output highlights persistent inefficiencies.
Experts and insiders point to several factors limiting power plant performance:
Gas Supply Constraints: Inadequate and irregular gas supply to power plants significantly hampers generation.
Poor Power Purchase Agreements (PPAs): The ongoing difficulties in securing and enforcing PPAs with the Nigerian Bulk Electricity Trading (NBET) company undermine financial viability.
Weak Transmission and Distribution Networks: Even when power is generated, insufficient grid infrastructure limits delivery to end-users.
Payment and Commercial Viability Issues: Many consumers do not pay for electricity, subsidies are inconsistently funded, and distribution companies hesitate to purchase additional power without cost-reflective tariffs.
Governance and Management Challenges: The government’s ownership and bureaucratic control over NDPHC affect operational efficiency, as noted by energy experts.
Bolaji Tunji, media aide to the Minister of Power, explained that while NDPHC can generate more than 1,000MW, the absence of commercial incentives and grid restrictions prevent full capacity utilization.
In response to the inefficiencies, the Federal Government has privatized some of the NIPP plants and announced plans to sell others, including major plants like Geregu II and Olorunsogo II, to attract private investment and improve management.
Power sector advocates, including Adetayo Adegbemle of Power Up Nigeria, emphasize the need for policies that restore industrial consumption on the grid to boost demand and viability. Professor Dayo Ayoade of the University of Lagos adds that addressing generation alone is insufficient without simultaneous improvements in transmission and distribution.
For Nigeria to end the cycle of blackouts, it must optimize its substantial investments in power infrastructure through enhanced governance, improved gas supply, commercial viability, and comprehensive grid upgrades. Without these changes, the promise of reliable electricity from government power plants remains unfulfilled, and millions of Nigerians will continue to suffer from power outages.