NDPHC Demands N400bn Electricity Market Debt Settlement

The Niger Delta Power Holding Company has called for the settlement of more than N400bn owed to it by electricity market participants, including the Nigerian Bulk Electricity Trading Plc, saying the outstanding liabilities are affecting its operations.

The disclosure was made Wednesday by the Managing Director and Chief Executive Officer of NDPHC, Jennifer Adighije, during an oversight visit to the company’s headquarters in Abuja by the House of Representatives Committee on Power, chaired by Hon. Victor Nwokolo.

In a statement signed by NDPHC’s Head of Corporate Communication & External Relations, Nazo Agim, Thursday, Adighije appealed to the committee to intervene in the outstanding debts owed to NDPHC by electricity market participants, including NBET, which she said had accumulated liabilities of more than N400bn.

She also sought the settlement of obligations arising from NDPHC’s assets recognised in the regulated asset base of the Transmission Company of Nigeria.

“Adighije also appealed to the committee to intervene in outstanding debts owed to NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc, which she said had accumulated liabilities of more than N400 billion.

“She said the company was also seeking the settlement of obligations arising from its assets recognised in the regulated asset base of the Transmission Company of Nigeria,” the statement disclosed.

The NDPHC boss identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges affecting the company’s operations.

According to her, the financial constraints were compounded by the company’s inability to fully utilise its available generation capacity.

She said NDPHC had more than 1,500 megawatts of mechanically available generation capacity but was allocated an hourly dispatch of about 500MW.

This, she explained, had resulted in significant suppressed and stranded capacity, costing the company more than N300bn. Adighije called for regulatory intervention to review the dispatch merit order and enable NDPHC to better utilise its available generating capacity.

The NDPHC boss said the company had also made progress in recovering debts from its cross-border bilateral customers. She disclosed that about $12m had been recovered from customers in Togo and other debtors out of an outstanding debt of more than $50m.

The NDPHC boss said the company also recovered several turbines across its power plants, which contributed about 470MW to the national grid. Adighije recalled that NDPHC had recovered 110 abandoned containers and 216 packages within her first 100 days in office, saving the company more than N30bn.

According to her, the power firm is preparing to transition to the second phase of the National Integrated Power Project, with a focus on renewable energy investments to improve electricity supply, particularly in northern Nigeria.

Adighije maintained that NIPP Phase 2 would diversify the country’s generation mix by harnessing the renewable energy potential in northern Nigeria, particularly solar and tidal resources.

She said the company is considering off-grid solutions, mini-hydropower projects and other solar power interventions as part of its strategy to address power 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,” she said.

Adighije explained that NDPHC currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, representing about 30 per cent. She said the company had built 10 power plants under NIPP Phase 1, seven of which are commercially operational, while two are under construction and one is undergoing upgrades.

She listed debt recovery, digitalisation, improved procurement practices, asset restoration, completion of distribution projects and recovery of several generation units among the key achievements of her administration.

The NDPHC chief executive also explained that the company had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects, with installed transformer capacity exceeding 10,000MVA.

She said NDPHC had also undertaken hundreds of distribution projects, including the installation of distribution transformers and 33kV and 11kV lines across the country.

Responding to the presentation, Nwokolo commended the NDPHC management for its efforts to improve electricity generation and address challenges across its facilities. “We have also been to the power stations. And, honestly, NDPHC is taking some very reasonable actions towards aiding Nigeria’s access to electricity,” Nwokolo said.

He stressed that the effective performance of generation, transmission and distribution was critical to the success of the power sector. “If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing to distribute. So I must commend them,” he added.

Nwokolo assured NDPHC that the committee would examine the concerns raised and work with relevant stakeholders to address them. He said the oversight visit was aimed at understanding the challenges confronting the company and supporting it in finding solutions, rather than creating an adversarial relationship.