By Mary Izuaka

 

The Niger Delta Power Holding Company (NDPHC) says it is moving into the second phase of the National Integrated Power Project (NIPP) with a renewed focus on renewable energy, targeting solar and mini-hydro investments to address electricity gaps in Northern Nigeria.

The Managing Director and Chief Executive Officer of NDPHC, Jennifer Adighije, disclosed this on Wednesday in Abuja during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, led by its Chairman, Victor Nwokolo.

Ms Adighije said NIPP Phase 2 would diversify the country’s generation mix by harnessing the renewable energy potential in northern Nigeria, particularly solar and tidal resources.

“Where we are currently is NIPP Phase 1, which is power generation from fossil fuels, from gas. The NIPP Phase 2, in line with the Energy Transition Plan, is where we are diversifying our generation mix and preparing to transition to renewable energy,” she said.

She added the company was considering off-grid solutions, mini-hydropower projects and other solar power interventions as part of its strategy to address power supply gaps across the country.

Current contribution and infrastructure

Ms Adighije said NDPHC currently contributes about 4,000 megawatts to the country’s installed generation capacity of approximately 12,000MW, representing roughly 30 per cent.

Under NIPP Phase 1, she said the company built 10 power plants. Seven are commercially operational, two are under construction and one is undergoing upgrades.

The company has also invested heavily in the grid. According to her, NDPHC has completed 120 transmission projects made up of 60 330kV substations, 31 132kV substations and 37 expansion projects. Installed transformer capacity now exceeds 10,000MVA.

On distribution, she said hundreds of projects had been executed, including the installation of distribution transformers and 33kV and 11kV lines across the country.

Recoveries and operational gains

Highlighting achievements in her first 100 days, Ms Adighije said the management had recovered 110 abandoned containers and 216 packages, saving the company more than N30 billion.

She also reported progress on debt recovery and asset restoration. NDPHC, she said, has recovered about $12 million from cross-border bilateral customers in Togo and other debtors out of an outstanding debt of more than $50 million.

The company also recovered several turbines across its plants, adding about 470MW to the national grid. Other gains listed include digitalisation, improved procurement practices, completion of distribution projects and restoration of generation units.

Stranded capacity and funding challenges

Despite the progress, she said NDPHC continues to grapple with structural challenges in the power sector.

She listed transmission constraints, low tariffs, inadequate market settlements, gas supply problems, unpaid debts and vandalism as key issues.

A major concern, she said, is suppressed generation. NDPHC has more than 1,500MW of mechanically available capacity but receives an hourly dispatch of only about 500MW.

“This has resulted in significant suppressed and stranded capacity,” she added, estimating that the situation has cost the company more than N300 billion. She called for regulatory intervention to review the dispatch merit order.

The NDPHC boss also appealed to the lawmakers to help recover outstanding debts owed by market participants. The Nigerian Bulk Electricity Trading Plc (NBET), she said, alone owes more than N400 billion.

She further urged settlement of obligations arising from NDPHC assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).

Lawmakers commend NDPHC

Responding, Mr Nwokolo commended NDPHC for what he described as “very reasonable actions” toward improving access to electricity.

“We have also been to their power stations. And, honestly, they are taking some reasonable, very reasonable actions towards making Nigeria’s access to electricity,” he said.

The committee chairman stressed that the power sector depends on the performance of all three segments (generation, transmission and distribution).

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“If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing for me to distribute. So I must commend them,” Mr Nwokolo added.

He cited the Alaoji power plant as an example of proactive management that averted a worse outcome, and assured that the committee would examine the concerns raised and work with stakeholders to address them.

He said the oversight visit was intended to understand the challenges confronting NDPHC and support the company in finding solutions, rather than create an adversarial relationship.

Mr Nwokolo also praised the company for welcoming legislative oversight, noting that such engagements allow public agencies to showcase achievements, explain their challenges and receive necessary support from the legislature.

The oversight comes as the federal government pushes to close Nigeria’s power deficit and integrate more renewables ahead of the 2030 energy transition targets.