After years of underperformance and stranded capacity, the Niger Delta Power Holding Company (NDPHC) is repositioning itself as a key player in Nigeria’s electricity market by embracing direct power sales to eligible customers.
This bold step, which marks a shift from over-reliance on the national grid, could unlock billions in revenue, revive idle plants, and improve power supply to industries starved of stable electricity.
NDPHC, operator of several National Integrated Power Projects (NIPPs), has for years struggled with dormant turbines and stranded electricity.
Despite an installed capacity exceeding 4,000MW, the company consistently delivered less than 1,000MW to the grid.
Plants like Alaoji, Olorunsogo, and Sapele generated far below capacity, while others like Ihovbor 2 stood out as rare exceptions with utilization above 90 per cent.
Reports from the Nigerian Electricity Regulatory Commission (NERC) repeatedly flagged the inefficiency, showing how 2,000MW of potential output remained untapped due to poor commercial viability, subsidy delays, and distribution bottlenecks.
A senior official in the Ministry of Power recently admitted that generating more electricity made little financial sense for NDPHC, since consumers were reluctant to pay, government subsidies were irregular, and distribution companies (DisCos) lacked cost-reflective tariffs beyond Band A customers.
“Every additional kilowatt becomes a loss when supplied outside Band A,” the official stressed, highlighting the unsustainable structure of Nigeria’s power market.
Since assuming office in 2024, NDPHC’s Managing Director, Jennifer Adighije, has prioritized commercial sustainability over merely adding megawatts.
She confronted an acute liquidity crisis—exacerbated by N600bn in unpaid debts owed by the Nigerian Bulk Electricity Trading Plc (NBET) and bilateral buyers—by rethinking the company’s sales model.
Her approach includes:
Restructuring sales strategy toward bilateral contracts with large, creditworthy consumers.
Exploring embedded power projects to bypass grid bottlenecks.
Recovering idle assets, including five turbine units across Calabar, Omotosho, Sapele, and Ihovbor, adding 625MW to the national grid.
Negotiating gas supply agreements to ease recurring fuel shortages.
Adighije confirmed that NDPHC has already signed power purchase agreements (PPAs) with off-takers and traders, now awaiting NERC approval.
The plan is to commercialize 200MW of stranded capacity by end of 2025.
One of the strongest endorsements for NDPHC’s strategy comes from the Manufacturers Association of Nigeria (MAN) in Kano, whose members face crippling electricity shortages.
Dala Foods MD, Ali Madugu, led a delegation urging the power firm to extend its Eligible Customer Programme to Kano industries.
“Direct supply from NDPHC will revive local manufacturing by cutting reliance on unreliable and costly distribution networks,” Madugu said.
However, the move has triggered friction with Kano Electricity Distribution Plc, which accused MAN of antagonism despite receiving N3bn in discounts over 12 months.
DisCos across Nigeria worry that bypass arrangements could erode their customer base and revenues.
Key Wins So Far
Asset recovery: 625MW added to grid in the past year.
Stakeholder confidence: Renewed interest from manufacturers and industrial clusters.
Commercial shift: Signed PPAs with eligible customers awaiting regulatory approval.
Operational revival: Dormant plants like Alaoji now set for recommissioning.
These gains, Adighije insists, prove that bilateral sales are the only sustainable way to unlock stranded power and reposition NDPHC.
Despite progress, three major challenges remain:
Regulatory approval delays – NERC must fast-track licenses for bilateral sales.
Debt recovery – NBET and other off-takers owe NDPHC over N600bn.
DisCo resistance – Distribution companies are lobbying against direct sales, fearing revenue loss.
Energy analysts warn that without tariff reforms, the liquidity crisis could persist.
“NDPHC’s plan is the right step, but without market discipline and a truly cost-reflective tariff regime, bilateral sales may only solve part of the problem,” said Lagos-based analyst, Chinedu Obi.
Adighije has pledged to intensify bilateral sales in 2026 while completing critical projects like Egbema and fully integrating Alaoji.
She also emphasized renewable energy expansion and rural electrification projects as part of NDPHC’s future roadmap.
“In the coming year, our focus remains on commercial viability, asset optimization, and direct engagement with large consumers who can pay cost-reflective tariffs. That is the only way forward,” she said.
NDPHC’s pivot to direct power sales could be the turning point Nigeria’s troubled electricity market needs.
By bypassing structural inefficiencies, unlocking stranded capacity, and restoring confidence among industrial users, the company is edging closer to relevance.
But success will depend heavily on tariff reforms, regulatory backing, and debt resolution.
If executed effectively, the model could set a new template for state-owned power firms struggling with liquidity and underutilized assets.
