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Home Energy

NDPHC Grapples with N600bn Debt and 2,000MW Stranded Power Capacity

Akpan Edidong by Akpan Edidong
May 26, 2025
in Energy
Reading Time: 2 mins read
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Nigerian Electricity Regulatory Commission Remains Silent on Speculated Tariff Increase.
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The Niger Delta Power Holding Company (NDPHC) is facing significant operational challenges due to a N600 billion debt owed by the Nigeria Bulk Electricity Trading Plc (NBET) and other bilateral entities, coupled with a low uptake of electricity from the market. According to NDPHC’s Managing Director, Jennifer Adighije, these financial and operational constraints, alongside gas supply issues and transmission limitations, are severely hampering the company’s ability to function effectively.

In a statement released through her Technical Adviser on Media, Adesanya Adejokun, Adighije highlighted that approximately 2,000 megawatts (MW) of NDPHC’s generation capacity remains stranded due to multiple factors, including transmission constraints, gas supply and transportation limitations, and insufficient demand from distribution companies. Despite these challenges, the company has successfully restored five turbine units across its Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625 MW to the national grid.

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Adighije noted that NDPHC’s National Integrated Power Project (NIPP) plants are often utilized by the system operator for primary frequency response to stabilize the grid, yet they receive no compensation for these ancillary services. Frequent start-up and shutdown orders, issued without financial recourse, lead to low capacity utilization and operational stress on the turbines. She emphasized that power generation is demand-driven, and inadequate demand or transmission capacity often prevents the plants from operating at full potential.

To address transmission bottlenecks, NDPHC has invested over N500 billion in projects, including transformers, transmission substations, switch gears, and transmission lines, many of which are now operated by the Transmission Company of Nigeria (TCN). Efforts are also underway to resolve issues at the Alaoji Power Plant, which has been offline due to a gas supply metering dispute. Adighije confirmed that steps are being taken to restore the plant’s functionality by year-end.

The company’s financial strain is further exacerbated by its inability to secure a Power Purchase Agreement with NBET, which has relegated NDPHC to the lowest priority in the dispatch schedule despite its substantial 2,000 MW capacity. To mitigate this, NDPHC is leveraging a Nigerian Electricity Regulatory Commission order on bilateral agreements to sell its stranded power directly to eligible customers, with deals expected to be finalized soon.

Adighije stressed that NDPHC remains the largest fleet of generating turbine units in Nigeria’s power sector, yet its potential is constrained by these systemic issues. The company is actively pursuing direct supply agreements to commercialize its excess capacity and support last-mile communities through ongoing transmission and distribution network interventions.

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