NDPHC Struggles with N600bn Debt, 2,000MW Stranded Power Capacity

The Niger Delta Power Holding Company (NDPHC) is facing severe operational challenges due to a N600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc.

This financial burden is hindering power generation, with 2,000 megawatts (MW) of capacity stranded due to transmission constraints, gas supply issues, and low market demand.

Despite these setbacks, NDPHC has managed to revive five previously idle turbine units across the Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625MW to the national grid. However, the company continues to struggle with dispatch restrictions, inadequate transmission corridors, and unresolved financial agreements.

The company has invested over N500 billion in transmission infrastructure since the inception of the National Integrated Power Projects (NIPP), including transformers, substations, switch gears, and transmission lines. However, a metering dispute with a gas supplier led to the shutdown of the Alaoji Power Plant, though efforts are underway to restore it before year-end.

NDPHC has also faced difficulties securing a Power Purchase Agreement (PPA) with NBET, which has negatively impacted its financial position and further exacerbated its stranded capacity. To address this, the company is leveraging a Nigerian Electricity Regulatory Commission (NERC) order allowing power generation companies to enter into bilateral agreements. Several deals are being finalized to sell its stranded capacity directly to eligible customers1.