The Niger Delta Power Holding Company (NDPHC) has raised alarm over a staggering N600 billion debt owed by Nigeria Bulk Electricity Trading Plc (NBET) and other bilateral entities, a situation severely hampering its power generation operations. This debt, alongside ongoing gas supply and transmission challenges, has resulted in approximately 2,000 megawatts (MW) of electricity generation capacity being stranded, according to the company’s management.
Jennifer Adighije, the Managing Director of NDPHC, disclosed this in an exclusive statement shared via her Technical Adviser on Media, Adesanya Adejokun. She explained that despite NDPHC’s sizeable installed generation capacity of over 4,000MW, operational issues and financial constraints continue to affect the company’s ability to fully supply electricity to Nigeria’s national grid.
Adighije highlighted that the company has successfully rehabilitated five turbine units across its Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625MW to the grid. However, about 2,000MW of the company’s generation capacity remains stranded due to factors including gas supply disruptions, transmission bottlenecks, and low electricity demand from distribution companies (DisCos).
“Our generation capacity is currently mechanically available but significantly underutilized because of these challenges. Transmission constraints and gas transportation issues continue to restrict power flow, while the low demand from the downstream market reduces generation incentives,” she said.
Adighije also pointed out that the National Integrated Power Project (NIPP) plants under NDPHC have been frequently deployed for primary frequency response—an ancillary service critical for grid stability but often uncompensated. “These services should be monetized in accordance with grid codes, but unfortunately, NIPP plants are instructed to start and shut down by the system operator without compensation. This leads to low plant utilization and operational wear and tear,” she explained.
She further lamented the lack of a Power Purchase Agreement (PPA) with NBET, which would have improved NDPHC’s position in the power dispatch merit order. Without such agreements, NDPHC is relegated to the lowest dispatch priority, limiting its generation to below its actual capacity despite available infrastructure.
Despite these setbacks, NDPHC has invested over N500 billion in transmission infrastructure, including transformers, substations, switchyards, and transmission lines to enhance grid capacity and reliability. Adighije praised the efforts of the Federal Ministry of Power under Chief Bayo Adelabu for tackling grid availability issues.
She also disclosed plans to revive the dormant Alaoji Power Plant by resolving gas supply metering disputes, aiming to bring the plant back online before the end of the year.
To mitigate stranded capacity, NDPHC is pursuing bilateral trading arrangements as directed by the Nigerian Electricity Regulatory Commission (NERC). This allows the company to sell power directly to eligible customers, bypassing traditional market constraints.
Recent data from NERC indicates a troubling trend of underperformance across most NDPHC power plants. While the Ihovbor 2 plant operates at near full capacity (97%), other plants like Olorunsogo 2 and Omotosho 2 generate below 10% of their installed capacities. For example, Olorunsogo 2 generated only 24MW out of 750MW capacity in April, while Omotosho 2 contributed a mere 21MW.
These figures reveal systemic inefficiencies and highlight the urgent need for reforms to optimize Nigeria’s electricity generation and distribution systems.
NDPHC’s revelations expose deep-rooted issues within Nigeria’s power sector, especially concerning financial sustainability, gas supply logistics, and infrastructure gaps. Unlocking the stranded 2,000MW capacity could significantly boost national power availability, benefiting millions of Nigerians and stimulating economic growth.
Addressing the N600 billion debt owed to NDPHC and enabling better grid infrastructure remain critical steps toward improving electricity supply. The company’s strategy to leverage NERC’s directive on bilateral trading offers a promising avenue to commercialize unused capacity and increase power generation output.