Power Crisis Deepens as NDPHC Cries Out Over N600 Billion Debt from NBET, Others
The Niger Delta Power Holding Company (NDPHC) has raised alarm over crippling financial and operational challenges, revealing it is being owed nearly ₦600 billion by the Nigeria Bulk Electricity Trading (NBET) Plc and other bilateral entities.
In a strongly worded statement issued on Sunday, Jennifer Adighije, Managing Director of NDPHC, said the massive debt, coupled with gas supply bottlenecks and transmission constraints, is severely hindering the company’s ability to operate efficiently.
“Gas supply challenges, transmission constraints, and close to ₦600 billion in unpaid debts are holding back our operations,” Adighije stated. “We are grappling with limited offtake from the grid and shrinking demand from distribution companies.”
Despite the financial strain, Adighije noted that the new management has managed to restore five previously idle turbine units across its Calabar, Omotosho, Sapele, and Ihovbor plants—adding 625 megawatts (MW) to the national grid.
Still, a significant portion of the company’s 2,000MW generation capacity remains stranded.
“Our capacity is trapped—not due to lack of readiness, but because of inadequate gas transportation, poor grid infrastructure, and low market demand,” she added.
The NDPHC boss also criticised the current utilization of NIPP (National Integrated Power Projects) plants, which, according to her, are often used by the system operator to stabilise the grid without any compensation.
“The system operator orders startups and shutdowns of our turbines at will, yet we’re not compensated. This leads to wear on the equipment and poor utilization of resources,” she lamented.
She emphasised that, following Nigeria’s grid code, power generation should match demand. But with transmission corridors frequently congested and downstream demand declining, much of the company’s power generation is effectively wasted.
“Even when demand rises, there’s often no clear dispatch corridor or wheeling capacity to deliver it,” she said.
Despite the setbacks, NDPHC says it is actively investing in the power sector’s infrastructure. Adighije disclosed that the company has invested over ₦500 billion in transmission projects since the inception of the NIPP. These projects span new substations, transformers, switchyards, and grid expansions—many of which are now operated by the Transmission Company of Nigeria (TCN).
However, some projects, like the Alaoji Power Plant, remain offline due to gas metering disputes, though Adighije assured that efforts are underway to restore functionality before the end of the year.
Adighije also revealed that NDPHC has faced repeated roadblocks in securing a Power Purchase Agreement (PPA) with NBET—a move that could have elevated the company’s place in the national dispatch priority order.
“We are currently in the lowest priority tier for dispatch, despite our 2,000MW daily generation capacity,” she said. “This has impacted us financially and left much of our power stranded.”
In response, NDPHC is turning to direct bilateral trading and eligible customer arrangements, leveraging a NERC directive from July 25 that allows generation companies to bypass traditional channels and trade directly.
“We’re finalizing several agreements to sell power directly to off-takers. It’s part of a bold new strategy to unlock stranded capacity and sustain operations,” she explained.
