The Niger Delta Power Holding Company (NDPHC) has raised alarm over worsening operational constraints in Nigeria’s electricity supply chain, revealing that nearly ₦600 billion in unpaid debts and systemic inefficiencies have severely limited its ability to deliver power across the country.
In a statement released in Abuja, Jennifer Adighije, Managing Director of NDPHC, disclosed that approximately 2,000 megawatts (MW) of its available generation capacity remain stranded due to gas supply shortfalls, transmission infrastructure bottlenecks, and weak demand from distribution companies (Discos).
According to Adighije, the Nigerian Bulk Electricity Trading (NBET) and other bilateral counterparties owe the company almost ₦600 billion, a situation that has placed significant financial strain on its operations and limited its ability to expand or sustain infrastructure development.
“Despite efforts to optimise output, NDPHC is constrained by systemic challenges that prevent us from delivering available capacity to the national grid,” she said. “Much of the electricity we generate cannot be evacuated or consumed due to structural failures across the value chain.”
The company’s performance, she noted, is further impaired by the absence of a formal Power Purchase Agreement (PPA) with NBET. The lack of a binding PPA, she said, has denied NDPHC higher dispatch priority and contributed to deteriorating cash flow.
Adighije highlighted that five previously idle turbines at Calabar, Omotosho, Sapele, and Ihovbor power plants have been revived, contributing an additional 625MW to the grid. However, she lamented that the bulk of this generation remains underutilised.
“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and transportation limitations, as well as dwindling offtake by Discos,” she said.
In addition to stranded capacity, Adighije pointed to the frequent directives from the system operator requiring NDPHC plants to provide ancillary grid services such as start-up and shutdown operations without corresponding compensation. She noted that such interventions increase operational stress on turbine units and are contrary to provisions in the industry’s grid code.
The MD further stated that the company’s power plants are routinely placed in the least priority dispatch category despite their proven generation capacity, contributing to low utilisation and revenue shortfalls.
She added that power generation is fundamentally driven by demand and viable dispatch corridors. “When demand is available, there are usually limitations in the transmission network to wheel power through, and when capacity exists, offtake is often insufficient,” she said.
To address the imbalance, Adighije confirmed that NDPHC is now leveraging the Nigerian Electricity Regulatory Commission’s (NERC) Eligible Customer framework to bypass the centralised market and sell electricity directly to bulk consumers and bilateral buyers.
“This strategy seeks to unlock stranded energy by dedicating significant portions of generation to eligible customers under bilateral agreements,” she said.
On the prolonged outage at the Alaoji Power Plant, she attributed the shutdown to an unresolved metering dispute with the gas supplier but disclosed that restoration works on the Gas Metering Station (GMS) are underway. The facility is expected to return to service before year-end.
Despite the setbacks, NDPHC has committed over ₦500 billion to developing transmission and distribution infrastructure, including substations, transformers, transmission lines, switchgear, and line bay extensions. Many of these assets are now under the operational control of the Transmission Company of Nigeria (TCN).
Adighije acknowledged the support of the Minister of Power, Bayo Adelabu, in addressing some of the transmission issues but stressed the urgent need for comprehensive market reforms and capital recovery frameworks that align supply with offtake and grid capacity.
“In spite of these limitations, NDPHC continues to spearhead grid expansion and distribution interventions aimed at delivering electricity to underserved communities,” she added
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