Despite boasting over 4,000MW in installed capacity, power plants operated by the Niger Delta Power Holding Company (NDPHC) are currently producing less than 1,000MW, leaving many Nigerians in darkness.
A recent report by the Nigerian Electricity Regulatory Commission (NERC) reveals that only the Ihovbor 2 plant operated at near full capacity in April, delivering 449MW of its 461MW capacity. Most others underperformed drastically. For instance, the 500MW Alaoji 1 plant has generated no power for months, while Olorunsogo 2, with 750MW capacity, produced just 24MW in April and none in March.
Similarly, Sapele 1 and 2 combined delivered only 128MW out of 1,220MW, and Omotosho 2 generated a meagre 21MW from a possible 500MW. Ihovbor 1, despite its 500MW capacity, produced just 83MW. Other plants like Omotosho 1, Olorunsogo 1, and Omoku are all functioning at less than half their capacity.
The national power grid managed to generate just 5,257MW last month—39% of Nigeria’s total installed capacity of 13,625MW—despite government claims of reaching 6,000MW.
NDPHC, created to manage the National Integrated Power Projects (NIPP) and funded by all tiers of government, was meant to resolve Nigeria’s power challenges by integrating fuel supply, generation, transmission, and distribution. However, years later, it has fallen short of expectations.
Former NDPHC Managing Director, Chiedu Ugbo, previously admitted that its 4,000MW capacity remains underutilised due to challenges beyond its control.
In an attempt to revamp the sector, the Federal Government has moved to privatise some NIPP plants, including those in Kogi, Ondo, Ogun, Cross River, and Edo States—worth over $1.15 billion.
Minister of Power, Adebayo Adelabu, acknowledged the investments under President Obasanjo but questioned their optimisation. “We made good investments, but the benefits are not being fully realised,” he said.
Power Ministry spokesperson, Bolaji Tunji, blamed the underperformance on a lack of commercial incentives. He said NDPHC could generate more power but isn’t doing so due to unpaid electricity bills, inadequate government subsidies, and Distribution Companies (DisCos) refusing to take additional load outside Band A customers.
“Every additional kilowatt supplied to non-Band A customers is a financial loss,” Tunji said, adding that poor demand, limited grid capacity, and lack of power purchase agreements (PPAs) have kept many plants idle.
Experts echoed similar sentiments. Adetayo Adegbemle of Power Up Nigeria urged the government to revive industrial demand and halt grid fragmentation. Energy law professor Dayo Ayoade noted that inefficiencies persist because the NDPHC, though structured as a private company, is still government-owned—making it vulnerable to bureaucracy and poor governance.
He advised a systemic overhaul addressing generation, transmission, and distribution simultaneously.
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