NDPHC Decries N300bn Stranded Capacity Loss, N400bn NBET Debt

• Says only 500MW of 1,500MW available capacity allocated  

•Recovers $12m from cross-border bilateral customers

• Seeks regulatory intervention, lawmakers’ help  

•Eyes solar, mini-hydro projects for North in NIPP phase 2

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Niger Delta Power Holding Company (NDPHC) has said it’s suffering a revenue loss estimated at more than N300 billion resulting from suppressed and stranded generation capacity, disclosing that the company is also grappling with over N400 billion in unpaid liabilities by the Nigeria Bulk Electricity Trading Plc (NBET), Distribution Companies (Discos) and other market players.

Managing Director and Chief Executive Officer of NDPHC, Jennifer Adighije, revealed this in Abuja during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, chaired by Hon. Victor Nwokolo.

In a statement issued yesterday in Abuja, and signed by the Head of Corporate Communications and External Relations, Nazo Agim, Adighije said the company currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, representing about 30 per cent.

However, she identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges affecting operations.

She said the most pressing challenge was suppressed dispatch.

“NDPHC had more than 1,500MW of mechanically available generation capacity but was allocated an hourly dispatch of about 500MW, resulting in significant suppressed and stranded capacity”, she said.

Adighije estimated that the situation had cost the company more than N300 billion and called for regulatory intervention to review the dispatch merit order.

The NDPHC boss also appealed to the committee to intervene in outstanding debts owed NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc (NBET), which she said had accumulated liabilities of more than N400 billion.

 She said the company was also seeking the settlement of obligations arising from its assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).

Under NIPP Phase 1, she said NDPHC built 10 power plants, seven of which are commercially operational, while two are under construction and one is undergoing upgrades.

She also highlighted interventions in transmission and distribution, mentioning that NDPHC had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects, with installed transformer capacity exceeding 10,000MVA.

According to her, the company has also undertaken hundreds of distribution projects, including the installation of distribution transformers and 33kV and 11kV lines across the country.

Further on the achievements under her administration, Adighije said NDPHC had recovered 110 abandoned containers and 216 packages within its first 100 days, saving the company more than N30 billion.

She also listed debt recovery, digitalisation, improved procurement practices, asset restoration, completion of distribution projects and the recovery of several generation units among the administration’s key achievements.

According to her, NDPHC had also recovered several turbines across its power plants, contributing about 470MW to the national grid.

She said the company had recovered about $12 million from cross-border bilateral customers in Togo and other debtors from an outstanding debt of more than $50 million.

Looking ahead, she said NDPHC was preparing to transition to the second phase of the National Integrated Power Project (NIPP) with a focus on renewable energy for northern Nigeria.

“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 stated

The NDPHC CEO assured that the phase would harness solar and tidal resources in northern Nigeria, and would include off-grid solutions and mini-hydropower projects as part of the strategy to address power supply gaps across the country.

Responding to the presentation, the Chairman of the House Committee on Power, Nwokolo, commended NDPHC management for its efforts, describing the company’s work as critical to the entire power value chain.

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

He noted that the success of the power sector depended on the effective performance of generation, transmission and distribution.

“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”, the lawmaker stated.

Nwokolo cited the Alaoji power plant as an example of proactive intervention by NDPHC management and assured the company that the committee would examine the concerns raised and work with relevant 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.

The committee chairman further commended NDPHC for welcoming legislative oversight, noting that such visits provided an opportunity for public agencies to demonstrate their achievements, explain their challenges and receive necessary support from the legislature.