The Niger Delta Power Holding Company (NDPHC) is set to enter the second phase of the National Integrated Power Project (NIPP) with a major shift towards renewable energy, particularly solar and mini-hydropower projects in northern Nigeria.
The move is part of efforts to diversify Nigeria’s electricity generation mix and address persistent power supply gaps across the country.
Managing Director and Chief Executive Officer of NDPHC, Engr. 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, chaired by Hon. Victor Nwokolo.
According to Adighije, NIPP Phase 2 would focus on harnessing the renewable energy potential of northern Nigeria, particularly solar and tidal resources.
She said the company was also considering off-grid solutions, mini-hydropower projects and other solar interventions to expand electricity access to underserved communities.
“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.
Adighije explained that NDPHC currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, representing about 30 per cent.
She said the company had built 10 power plants under NIPP Phase 1, with seven already commercially operational, two under construction and one undergoing upgrades.
The NDPHC boss also highlighted the company’s interventions in transmission and distribution, saying it had completed 120 transmission projects comprising 60 330kV substations, 31 132kV substations and 37 expansion projects.
According to her, the projects have resulted in installed transformer capacity exceeding 10,000MVA.
She added that NDPHC had executed hundreds of distribution projects involving the installation of distribution transformers and 33kV and 11kV lines across the country.
Giving an account of achievements under her administration, Adighije said the company had recovered 110 abandoned containers and 216 packages within its first 100 days, saving more than N30 billion.
She listed debt recovery, digitalisation, improved procurement processes, asset restoration, completion of distribution projects and the recovery of generation units among other achievements.
The NDPHC chief executive also disclosed that 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.
She said several turbines had also been recovered across NDPHC power plants, adding about 470MW to the national grid.
However, Adighije identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges confronting the company.
She said NDPHC currently had more than 1,500MW of mechanically available generation capacity but was allocated an hourly dispatch of only about 500MW.
According to her, the situation had resulted in significant suppressed and stranded generation capacity and cost the company more than N300 billion.
She called for regulatory intervention to review the dispatch merit order and ensure that available generation capacity could be effectively utilised.
Adighije also appealed to the House Committee on Power to intervene in outstanding debts owed NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc (NBET).
She said NBET’s liabilities to the company had exceeded N400 billion.
The NDPHC boss further sought the settlement of obligations arising from the company’s assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).
Responding to the presentation, Chairman of the House Committee on Power, Hon. Victor Nwokolo, commended NDPHC management for its efforts to improve electricity generation.
Nwokolo described the company’s role as critical to the entire power value chain, stressing that generation, transmission and distribution must work together for Nigerians to enjoy reliable 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.
He noted that a failure in one segment of the power chain would inevitably affect the others.
“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,” he said.
Nwokolo also praised Adighije for what he described as a proactive approach to managing NDPHC and addressing challenges confronting its power plants.
He cited the Alaoji power plant as an example of a facility that could have suffered a worse fate without proactive intervention by the management.
The committee chairman assured NDPHC of legislative support where necessary, noting that the company could not resolve all the challenges confronting Nigeria’s power sector alone.
He said the committee would examine the concerns raised by the company and engage relevant stakeholders towards finding solutions.
According to him, the oversight visit was aimed at understanding the challenges facing NDPHC and supporting the company in resolving them, rather than creating an adversarial relationship between lawmakers and the agency.
Nwokolo further commended NDPHC for welcoming legislative oversight, saying such engagements provide opportunities for government agencies to showcase their achievements, explain challenges and receive necessary support from the legislature.
