The Niger Delta Power Holding Company (NDPHC) says it is set to begin the second phase of the National Integrated Power Project (NIPP), with a major focus on renewable energy investments, particularly solar and mini-hydropower projects in northern Nigeria.
The Managing Director and Chief Executive Officer of NDPHC, Jennifer Adighije, disclosed this in Abuja during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, chaired by Mr Victor Nwokolo.
Adighije said the planned NIPP Phase 2 would diversify Nigeria’s electricity generation mix by harnessing the country’s renewable energy resources, particularly in the northern region.
She said the company was considering off-grid solutions, mini-hydropower projects and solar interventions to bridge electricity supply gaps across the country.
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“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.”
The NDPHC chief executive said the company currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, accounting for about 30 per cent.
According to her, NDPHC constructed 10 power plants under NIPP Phase 1, with seven currently commercially operational, two under construction and one undergoing upgrades.
Adighije also highlighted the company’s contribution to the transmission and distribution segments of the electricity value chain.
She said NDPHC had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects, with installed transformer capacity exceeding 10,000MVA, stressing that the company had executed hundreds of distribution projects involving distribution transformers as well as 33kV and 11kV lines across the country.
The NDPHC boss said the company had also recorded significant achievements within her first 100 days in office, including the recovery of 110 abandoned containers and 216 packages, which she said saved the company more than N30 billion.
She listed debt recovery, digitalisation, improved procurement practices, asset restoration, completion of distribution projects and recovery of generation units among the administration’s key achievements.
According to Adighije, NDPHC has recovered about 12 million dollars from cross-border bilateral customers in Togo and other debtors from an outstanding debt of more than 50 million dollars.
She said several turbines had also been recovered across NDPHC power plants, contributing approximately 470MW to the national grid.
Despite the gains, Adighije identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges affecting NDPHC’s operations.
Mechanically Available
She said the company currently had more than 1,500MW of mechanically available generation capacity, but was being allocated an hourly dispatch of only about 500MW.
This, she explained, had resulted in significant suppressed and stranded generation capacity.
Adighije estimated that the situation had cost the company more than N300 billion, and called for regulatory intervention to review the electricity dispatch merit order.
She 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), which she said had accumulated liabilities of more than N400 billion.
The company, she added, was also seeking settlement of obligations arising from its assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).
Lawmakers pledge support
Responding to the presentation, the Chairman of the House Committee on Power, Victor Nwokolo, commended the NDPHC management for its efforts to improve electricity generation and described the company’s work as critical to the entire power value chain.
Nwokolo said effective performance across generation, transmission and distribution was essential to improving electricity supply in the country.
He noted that without generation there would be nothing to transmit, while without transmission, electricity could not reach the distribution companies and consumers.
The committee chairman also commended Adighije for what he described as her 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 faced more serious challenges without proactive intervention by the current management.
Nwokolo assured NDPHC that the legislature would examine the concerns raised during the oversight visit and work with relevant stakeholders to address them.
He stressed that the committee’s oversight role was aimed at understanding the challenges confronting the company and supporting efforts to improve its performance, rather than creating an adversarial relationship with the agency.
He further commended NDPHC for welcoming legislative oversight, saying such engagements provided an opportunity for public institutions to showcase their achievements, explain their challenges and receive necessary support from the legislature.
