NDPHC Adds 625MW to National Grid Despite N600bn Debt and Stranded Power Challenges

The Niger Delta Power Holding Company (NDPHC) has made a significant contribution of 625 megawatts (MW) to Nigeria’s national power grid despite being bogged down by systemic obstacles, including over N600 billion in debts owed by the Nigeria Bulk Electricity Trading Plc (NBET) and other market players. The company is also grappling with over 2,000MW of stranded power—energy that could be delivered to the national grid but remains unutilised due to infrastructural and market inefficiencies.

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The development was announced in Abuja over the weekend through a statement signed by Adesanya Adejokun, Technical Adviser (Media) to the company’s Managing Director, Jennifer Adighije. The NDPHC boss revealed that recent interventions by the company’s new leadership had resulted in the restoration of five previously non-operational turbine units at the Calabar, Omotosho, Sapele, and Ihovbor power plants. These revived turbines are now injecting an extra 625MW into the national grid.

Adighije, however, lamented the persistent challenges facing the company, particularly poor offtake by distribution companies (DisCos), inadequate transmission infrastructure, and unresolved gas supply bottlenecks.

NDPHC Pushes Through Systemic Barriers to Revive Power Contributions

“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations, in addition to dwindling offtake by the DisCos,” she stated.

She further explained that although the National Integrated Power Project (NIPP) plants managed by NDPHC play a vital role in maintaining grid stability through frequency control and other ancillary services, the company is not compensated for these efforts. According to Adighije, the plants are frequently directed by the System Operator to start up or shut down without compensation, leading to operational strain and underutilisation of assets.

“In accordance with the grid code, such services should be monetised, yet the NIPP plants receive no form of compensation,” she noted, highlighting the adverse impact this has on turbine performance and financial sustainability.

Adighije acknowledged that the Federal Ministry of Power, under Chief Bayo Adelabu, is actively working to resolve transmission grid inadequacies. Nevertheless, she pointed out that power generation is fundamentally driven by demand, which remains severely constrained due to weak downstream market dynamics.

“It is important to note that power generation is driven by demand. If the demand isn’t made, the plants will not generate. Even when demand arises, we often face inadequate dispatch corridors or limited wheeling capacity through the grid,” she said.

In the face of these limitations, NDPHC has not relented in driving national grid expansion and improving access to underserved areas. The company disclosed that it has invested more than N500 billion in transmission infrastructure since the inception of NIPP. These projects include substations, transformers, transmission lines, and switchyards—many of which are now being operated by the Transmission Company of Nigeria (TCN).

Commenting on the Alaoji power plant, which is currently offline, Adighije said the plant was shut down due to a dispute over gas supply metering. However, she confirmed that measures are underway to restore operations at the plant before year-end, including the reconstruction of the Gas Metering Station to eliminate losses and ensure continuous supply.

She also addressed the company’s failed attempts to enter into a Power Purchase Agreement (PPA) with NBET, which would have improved its dispatch priority in the national merit order. “Currently, NDPHC is placed in the least priority bucket for dispatch despite having daily dispatch capability of around 2,000MW,” she lamented.

The financial implications of the stalled PPA negotiations, combined with low dispatch, have been devastating for the company. “By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector. Yet, much of that capacity remains stranded due to these impediments,” she stated.

In a bid to bypass some of these systemic roadblocks, the NDPHC is now leveraging a July 25 directive from the Nigerian Electricity Regulatory Commission (NERC) that allows generation companies to sell power directly to eligible customers through bilateral agreements.

Adighije revealed that the company is close to finalizing several such agreements with large industrial and commercial users. “The strategy of the new management is to unlock stranded energy by dedicating significant portions to eligible customers and bilateral trading,” she affirmed.

By adopting this alternative model, NDPHC hopes to recover lost revenue, reduce idle capacity, and ensure that more Nigerians can benefit from the available power supply. The move could mark a turning point in how stranded capacity is managed and monetized within Nigeria’s troubled power sector.