The Federal Government, represented by the Niger Delta Power Holding Company, has signed a Power Purchase Agreement with utility companies to distribute around 250MW of power nationwide.
According to a document from NDPHC, these power sale transactions have been executed as part of the ‘Light Up Nigeria’ program under Vice President Shettima.
The Disco offtakers include Eko Electricity Distribution Plc, Compagnie d’Energie Electrique du Togo, Sunflag Steel Industries Limited (Lagos), Wewood Limited (Omotosho, Ondo State), APLE Electric Limited, Pulkit Alloy & Steel Limited (Lagos), ABV Utility Limited (Lagos), Ayingba Independent Electricity Distribution Network Limited (Ondo South), Avatar New Energy Limited, Phoenix Steel Mills Limited (Agbara Industrial Area), and Ota & Sagamu Interchange.
The document states that the program’s goal is to sell the existing capacity and develop more. The power generation projects have been funded through the Excess Crude Account, appropriately appropriated by the FG and the States between 2005 and 2009. NDPHC’s installed capacity so far is 4000MW.
Despite these achievements, NDPHC notes operational challenges, including transmission constraints, gas supply and transportation constraints, hampering cash flow. Currently, only the Calabar plant has full gas supply. Gas supply to western axis power plants faces challenges such as low pressure on NGIC gas pipelines (ELPS & Oben-Ajaokuta), and gas suppliers demanding higher gas tariffs beyond the industry-approved rate.
The company indicates that resolving these issues requires more investment, suggesting an urgent need for private capital mobilization, as government alone cannot meet these needs. The NDPHC is grappling with operational challenges, including a substantial debt of about N190 billion, mostly owed by government agencies, impacting its operations.
