NDPHC to commercialise 200MW of stranded electricity

The Niger Delta Power Holding Company (NDPHC) has said it is poised to unlock and commercialise 200 megawatts of stranded electricity before year-end, as part of broader efforts to improve liquidity and ensure operational sustainability.

The Managing Director, Jennifer Adighije, disclosed that Power Purchase Agreements (PPAs) have been signed with private traders and off-takers and are currently awaiting regulatory approval from the Nigerian Electricity Regulatory Commission (NERC).

The initiative comes as the government-owned generation firm continues to grapple with low electricity uptake by distribution companies and mounting unpaid invoices. Adighije noted that only around 30 per cent of the company’s earnings are currently realised, leaving a large portion of its 2,000MW capacity dormant.

“The Electricity Act has empowered us to directly engage with bankable off-takers. We have signed PPAs, and once the regulator approves them, we can begin freeing up 200MW,” she said during a visit to the Nigerian Independent System Operator (NISO) in Abuja.

She added that recent technical improvements at key plants, including Omotosho and Alaoji, would enhance power availability, positioning the NDPHC to deliver more supply once dispatch levels improve.

Despite its role as the government’s flagship generation company, NDPHC remains without a formal PPA with the Nigerian Bulk Electricity Trading Plc, limiting its ability to dispatch power through official market channels. Adighije urged NISO to support a fairer dispatch framework that reflects the company’s infrastructure contributions.

During the meeting, she also emphasised the need for better alignment between public and private operators under the evolving Electricity Act, particularly in procurement and financial processes.

The stalled offtake and outstanding debts have placed pressure on the company’s operations. However, officials believe that unlocking bilateral sales will ease cash flow constraints and restore investor confidence in the sector.

As the electricity market evolves under the new legislation, the NDPHC’s move to seek direct commercial arrangements is a shift toward decentralised power transactions a long-touted but slowly implemented reform within Nigeria’s power sector.

Join Our Channels