By Stella Odueme
The Niger Delta Power Holding Company (NDPHC) has announced plans to transition to the second phase of the National Integrated Power Project (NIPP), with a focus on renewable energy investments, including solar and mini-hydropower projects, to improve electricity supply, particularly in northern Nigeria.
The Managing Director and Chief Executive Officer of NDPHC, Engr. 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 Hon. Victor Nwokolo.
According to a statement by the Head, Corporate Communication and External Relations, Nazo Agim, on Thursday, Adighije said NIPP Phase 2 would focus on diversifying Nigeria's power generation mix by harnessing renewable energy resources, particularly the vast solar potential in northern Nigeria.
She said the company was also exploring off-grid solutions, mini-hydropower projects and other renewable energy interventions to address electricity supply gaps across the country.
“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,” Adighije said.
The NDPHC boss explained that the company currently contributes about 4,000 megawatts to Nigeria's installed generation capacity of approximately 12,000MW, representing about 30 per cent of the total capacity.
She said NDPHC had constructed 10 power plants under NIPP Phase 1, with seven currently operating commercially, two under construction and one undergoing upgrades.
Adighije also highlighted the company's investments in transmission and distribution infrastructure, noting that NDPHC had completed 120 transmission projects.
According to her, the projects include 60 330kV substations, 31 132kV substations and 37 expansion projects, with an installed transformer capacity exceeding 10,000MVA.
She added that the company had also implemented hundreds of distribution projects nationwide, including the installation of distribution transformers as well as 33kV and 11kV power lines.
On achievements recorded under her administration, Adighije said the company recovered 110 abandoned containers and 216 packages within its first 100 days, saving NDPHC more than N30 billion.
Other achievements, she said, include debt recovery, digitalisation, improved procurement processes, asset restoration, completion of distribution projects and the recovery of several generation units.
She disclosed that NDPHC had recovered about $12 million from cross-border bilateral customers in Togo and other debtors from outstanding obligations exceeding $50 million.
Adighije said the recovery of several turbines across the company's power plants had also contributed approximately 470MW to the national grid.
However, she identified transmission constraints, low electricity tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major obstacles affecting NDPHC's operations.
She said the company currently has more than 1,500MW of mechanically available generation capacity but receives an hourly dispatch allocation of about 500MW, resulting in significant stranded and suppressed generation capacity.
According to her, the situation has cost the company more than N300 billion, prompting a call for regulatory intervention to review the dispatch merit order.
Adighije also appealed to the House Committee on Power to intervene in the recovery of outstanding debts owed to NDPHC by electricity market participants.
She specifically mentioned the Nigerian Bulk Electricity Trading Plc (NBET), which she said had accumulated liabilities of more than N400 billion.
The NDPHC chief executive also called for the settlement of obligations arising from the company's assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).
Responding, the Chairman of the House Committee on Power, Hon. Victor Nwokolo, commended the NDPHC management for its efforts to improve electricity generation and strengthen Nigeria's 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 [to] electricity,” Nwokolo said.
He stressed that the generation, transmission and distribution segments of the electricity sector were interdependent.
“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 her proactive approach to managing NDPHC and addressing challenges affecting its power plants.
He cited the Alaoji power plant as an example of a facility that could have faced more serious challenges without the intervention of the company's management.
The committee chairman assured NDPHC of the legislature's support, noting that the company could not independently resolve all the challenges confronting Nigeria's power sector.
He said the committee would examine the concerns raised by NDPHC and engage relevant stakeholders to find solutions.
Nwokolo explained that the oversight visit was aimed at gaining a better understanding of the company's operations and challenges, rather than creating an adversarial relationship between the legislature and the agency.
He further commended NDPHC for welcoming the legislative oversight, saying such engagements provided an opportunity for public institutions to showcase their achievements, explain operational challenges and receive necessary support.