₦600 Billion Debt Stalls NDPHC Operations, Seeks Presidential Intervention

The Niger Delta Power Holding Company (NDPHC) has raised alarm over a staggering ₦600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc, citing the burden as a major disruption to its operations in the power sector. The company has called for presidential intervention to access funding needed to support ongoing power projects and enhance electricity supply nationwide.

This revelation was made in a statement released by the Managing Director/CEO of NDPHC, Engr. Jennifer Adighije, through her Technical Adviser (Media), Mr. Adesanya Adejokun.

Systemic Debts Threaten Nigeria’s Power Sector

NDPHC’s concerns come amid a broader crisis in the sector, as the Federal Government’s total debt to Generation Companies (GenCos) is reportedly nearing ₦4 trillion, leaving the power generation industry in a state of financial paralysis.

Engr. Adighije noted that the debt owed by NBET alone is placing severe strain on the company’s operations, compounded by several other issues such as:

• Inconsistent gas supply

• Transmission constraints

• Operational challenges with bilateral partners

Despite Challenges, NDPHC Adds 625MW to Grid

In spite of the obstacles, NDPHC has made tangible progress. The new management team has successfully revived five idle turbine units across the Calabar, Omotosho, Sapele, and Ihovbor power plants, injecting an additional 625 megawatts (MW) into the national grid.

Adighije explained that NDPHC currently has 2,000MW of mechanically available generation capacity. However, most of this remains stranded due to infrastructure bottlenecks and weak demand from Distribution Companies (DisCos).

“Power generation is demand-driven. If demand is not there, we can’t generate,” she said.
“Even when demand arises, wheeling capacity through the transmission grid is often inadequate.”

Grid Services Still Uncompensated

NDPHC’s fleet of power plants under the National Integrated Power Projects (NIPP) has provided essential ancillary services to support grid stability through primary frequency response. However, Adighije emphasized that these services remain unmonetized, in violation of the Grid Code and other industry regulations.

She also highlighted that dispatch restrictions, stemming from limited grid availability and low market demand, continue to hinder the company’s performance.

Over ₦500 Billion Invested in Grid Infrastructure

To combat these issues, Adighije stated that NDPHC continues to lead efforts in grid expansion and distribution network interventions to reach underserved areas. Since the inception of the NIPP, the company has invested over ₦500 billion in:

• Transformers

• Transmission substations

• Switch gears and yards

• Transmission lines

• Line bay extensions

These assets are now operated by the Transmission Company of Nigeria (TCN).

Alaoji Plant to Return Online Soon

On the Alaoji Power Plant, Adighije disclosed that the plant had been shut down due to a metering dispute with its gas supplier. However, the issue is being resolved, and the plant is expected to resume operations before the end of the year. Plans are underway to restore the Gas Metering Station (GMS) to eliminate future gas losses.

Exploring Bilateral Power Sales

Adighije also lamented NDPHC’s unsuccessful efforts to secure a Power Purchase Agreement (PPA) with NBET, a situation that continues to limit the company’s inclusion in the national dispatch merit order.

“We have the largest fleet of turbine units in Nigeria’s power sector, but much of it remains stranded because of structural and financial constraints,” she said.

In a bid to reverse this trend, NDPHC is now leveraging the Nigerian Electricity Regulatory Commission (NERC) order of July 25, which permits GenCos to enter bilateral agreements and sell power directly to eligible customers.

“We’re finalizing several deals to commercialize our stranded capacity through bilateral trading,” Adighije confirmed.

Tags: NDPHC, Power Generation, NBET Debt, Jennifer Adighije, Transmission Challenges, NERC Order, Bilateral Power Sales, Nigeria Energy Sector, GenCos, Electricity Market, National Grid