The Niger Delta Power Holding Company (NDPHC) Limited has expressed deep concern over a growing financial burden stemming from a N600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc. This massive unpaid sum, according to the company, is crippling its ability to operate effectively and deliver power to Nigerians.

NDPHC’s Managing Director, Jennifer Adighije, made this known in a statement released in Abuja on Sunday through her Technical Adviser on Media, Mr. Adesanya Adejokun. She detailed a number of challenges weighing down the company, including chronic gas supply shortages, weak transmission capacity, disputes with bilateral electricity market participants, and poor offtake by electricity distribution companies (DisCos).

Despite these roadblocks, Adighije stated that the new management team had successfully brought back to life five dormant turbine units spread across the Calabar, Omotosho, Sapele, and Ihovbor power plants. This revival has added a combined 625 megawatts (MW) of electricity to the national grid, a move aimed at mitigating Nigeria’s persistent power supply shortfalls.

Power Capacity Held Hostage by Infrastructure and Market Failures

Adighije highlighted that the company currently has a mechanical generation capacity of 2,000MW. However, much of this power remains stranded and unavailable to the national grid due to several structural bottlenecks.

She explained, “NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations, in addition to the dwindling offtake by the Electricity Distribution Companies (DisCos).”

Adighije stressed that NDPHC’s power plants, constructed under the National Integrated Power Projects (NIPP), have historically played a vital role in stabilizing the national grid by providing frequency support. Yet, she lamented that these essential ancillary services have never been monetised as stipulated by Nigeria’s Grid Code and energy sector regulations.

Furthermore, she explained that the company’s inability to dispatch generated power is often due to two major external challenges—limited grid availability and low market demand. These factors, she said, are entirely outside NDPHC’s control but have had significant operational consequences.

“In accordance with the Grid Code, we are placed on restrictions for a number of reasons—chief among them being inadequate transmission grid availability and low demand from the downstream electricity market,” she stated. “It is important to note that power generation is driven by demand, and therefore, if the demand isn’t met, the plants will not generate. In certain cases when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network.”

Infrastructural Investment Undermined by Policy Gaps

Despite these persistent hurdles, Adighije emphasized that NDPHC has continued to invest heavily in Nigeria’s power infrastructure, particularly in expanding transmission networks and intervening in distribution systems to connect underserved communities to electricity.

She revealed that since the establishment of the NIPP, the company has injected over N500 billion into developing transmission assets, which include transformers, substations, switchgears, and transmission lines—many of which are now being operated by the Transmission Company of Nigeria (TCN).

However, she also pointed to a recent metering dispute with a gas supplier, which has resulted in the shutdown of the Alaoji Power Plant. Although the situation has disrupted operations, she confirmed that plans are underway to restore the plant before the end of the year by reactivating the Gas Metering Station and resolving issues tied to gas losses.

Stalled Power Purchase Agreement and Unfair Dispatch Prioritization

A major concern raised by Adighije was NDPHC’s inability to secure a Power Purchase Agreement (PPA) with NBET, despite several attempts. This failure, she said, has had dire financial consequences for the company and has contributed to the prolonged idleness of its generation capacity.

“Currently, NDPHC is placed in the least priority bucket for dispatch in spite of its available daily dispatch capacity of about 2,000MW,” she said. “By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector. Conversely, much of that capacity remains stranded due to these impediments that constrain the company from generating optimally.”

She stressed that the absence of a formal agreement with NBET not only affects the company’s cash flow but also undermines its ability to maintain and expand operations.

Turning to Bilateral Trade as a Lifeline

To navigate this impasse, Adighije disclosed that NDPHC is now capitalizing on a policy directive from the Nigerian Electricity Regulatory Commission (NERC) issued on July 25, which allows generation companies to enter into bilateral power supply agreements with eligible customers. This policy shift enables firms like NDPHC to bypass the traditional NBET-offtake system and sell power directly to consumers who qualify under NERC guidelines.

According to her, the company is currently finalizing several deals with eligible customers aimed at utilizing its stranded power capacity.

“This move aligns with the NERC July 25 order, which permits generation companies to trade directly with eligible customers, a step aimed at addressing the issue of stranded capacity,” she noted.

Government Owes Power Sector Over N4 Trillion

The NDPHC’s outcry over NBET’s N600 billion debt is part of a much larger financial crisis gripping Nigeria’s electricity sector. In March, the NDPHC had already appealed for presidential intervention to secure funding for stalled power infrastructure projects and settle mounting debts owed to generation companies (GenCos).

As of April, the federal government owed GenCos over N4 trillion for electricity that had already been generated and injected into the national grid. In response, the government recently announced plans to begin settling some of this debt, though progress remains slow and fraught with bureaucratic hurdles.

A Bleak Outlook Without Urgent Reform

With 2,000MW of stranded capacity, more than N500 billion already invested in transmission assets, and over N600 billion owed in unpaid power sales, the NDPHC finds itself in a precarious position. Unless decisive action is taken to resolve gas supply issues, expand transmission corridors, ensure fair market dispatch, and pay off long-standing debts, the potential for long-term stability and improved electricity supply will remain elusive.

Adighije concluded by reaffirming NDPHC’s commitment to overcoming these structural obstacles through innovative strategies, partnerships, and policy-driven solutions, but warned that without urgent financial and regulatory support, Nigeria’s power ambitions could remain stuck in darkness.