Tue May 27 13:20:00 UTC 2025: **Here’s a summary of the text:**
The Niger Delta Power Holding Company (NDPHC) is facing significant operational challenges in Nigeria’s power sector, with nearly 2,000 MW of its generation capacity stranded due to transmission bottlenecks, gas supply issues, and low demand from distribution companies. The company is also burdened by a debt of nearly N600 billion owed by NBET and other entities. Despite efforts to increase power generation, NDPHC is operating with underutilized capacity. The company also faces market failures, including a low dispatch priority and lack of compensation for providing ancillary services. NDPHC is now focusing on direct power sales to eligible customers to commercialize its stranded capacity and improve its financial position. The company is working to resolve the shutdown of the Alaoji Power Plant and has invested heavily in transmission and distribution infrastructure. The managing director has called for comprehensive reforms to realign supply, demand, and grid capacity.
**Here’s the news article:**
**NDPHC Sounds Alarm on Stranded Power, Financial Woes in Nigeria’s Energy Sector**
Abuja, Nigeria – The Niger Delta Power Holding Company (NDPHC) has issued a stark warning about the deteriorating state of Nigeria’s power sector, revealing that nearly 2,000 megawatts of its electricity generation capacity remains stranded due to a combination of transmission bottlenecks, gas supply limitations, and weak demand from distribution companies (Discos).
According to NDPHC Managing Director Jennifer Adighije, the company is struggling under a heavy burden of systemic inefficiencies and staggering financial liabilities, including a debt of nearly N600 billion owed by the Nigerian Bulk Electricity Trading (NBET) and other bilateral entities.
“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded,” Adighije stated, citing transmission constraints, gas supply issues, and dwindling offtake by Discos.
Despite efforts to revive dormant turbine units and add 625MW to the national grid, much of this capacity remains underutilized. Adighije also highlighted the uncompensated provision of critical ancillary services, and a dispatch framework that prioritizes other power plants over NDPHC’s.
To address these challenges, NDPHC is now pivoting towards direct power sales to eligible customers, leveraging a Nigerian Electricity Regulatory Commission (NERC) order that allows generation companies to bypass the centralized market.
The company is also working to resolve the prolonged shutdown of the Alaoji Power Plant and has invested over N500 billion in transmission and distribution infrastructure, despite these being operated by the Transmission Company of Nigeria (TCN).
Adighije emphasized the urgent need for comprehensive reforms to realign supply, demand, and grid capacity.