ABUJA, Nigeria — The Niger Delta Power Holding Company (NDPHC) is preparing to launch the second phase of the National Integrated Power Project (NIPP), with renewable energy investments in solar and mini-hydropower expected to play a central role in expanding electricity access, particularly across northern Nigeria.
The planned transition represents a shift from NIPP’s first phase, which was largely built around gas-fired power generation, towards a more diversified electricity mix aligned with Nigeria’s Energy Transition Plan.
NDPHC Managing Director and Chief Executive Officer, Jennifer Adighije, disclosed the plans on Wednesday in Abuja during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, led by its chairman, Victor Nwokolo.
Adighije said the company was evaluating a range of renewable-energy and decentralised power solutions, including solar projects, off-grid systems and mini-hydropower schemes, to address persistent electricity supply gaps.
“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.
NDPHC targets northern Nigeria’s renewable potential
The NDPHC chief said northern Nigeria offers significant potential for renewable-energy development, particularly solar power, which could be deployed through a combination of grid-connected and off-grid projects.
The strategy is expected to complement conventional generation and provide electricity to communities and economic centres that remain poorly served by the national grid.
For Nigeria, expanding distributed renewable generation could also help reduce pressure on the country’s constrained transmission network while improving electricity access in areas where extending conventional grid infrastructure is costly or technically difficult.
NIPP accounts for about 4,000MW
Adighije said NDPHC currently contributes approximately 4,000 megawatts (MW) to Nigeria’s installed generation capacity of about 12,000MW, representing roughly one-third of the country’s installed capacity.
Under NIPP Phase 1, the company developed 10 power plants. Seven are commercially operational, while two are under construction and another is undergoing rehabilitation and upgrading.
However, the company said the country’s electricity challenge is not simply a shortage of generation capacity.
Transmission limitations, gas supply constraints, market liquidity problems and inadequate dispatch continue to prevent available generation from reaching consumers.
NDPHC completes 120 transmission projects
Beyond generation, NDPHC has also invested significantly in transmission infrastructure.
Adighije said the company had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects.
The projects have increased installed transformer capacity by more than 10,000MVA, she said.
NDPHC has also implemented hundreds of distribution projects, including the installation of distribution transformers and construction of 33kV and 11kV lines across different parts of the country.
The investments are intended to strengthen the electricity value chain from generation through transmission to distribution.
NDPHC says stranded capacity exceeds 1,500MW
Despite its generation assets, NDPHC said a substantial amount of available electricity remains underutilised because of constraints within the power market.
Adighije said NDPHC has more than 1,500MW of mechanically available generation capacity, but is allocated an average hourly dispatch of only about 500MW.
The resulting suppressed and stranded capacity has, according to the company, created substantial financial losses.
Adighije estimated that the situation had cost NDPHC more than N300 billion, and called for regulatory intervention to review the existing electricity dispatch merit order.
She also identified low electricity tariffs, inadequate market settlements, unpaid debts, gas supply problems, transmission constraints and vandalism as major challenges affecting the company’s operations.
NDPHC seeks recovery of more than N400bn market debt
The company is also seeking government and legislative intervention to resolve outstanding liabilities owed by participants in the electricity market.
Adighije said debts owed to NDPHC by market participants, including the Nigerian Bulk Electricity Trading Plc (NBET), had exceeded N400 billion.
She also called for the settlement of obligations associated with NDPHC assets that have been recognised within the regulated asset base of the Transmission Company of Nigeria (TCN).
The company argues that resolving these financial obligations is necessary to improve liquidity, sustain investment and maximise the utilisation of its generation and transmission assets.
NDPHC reports N30bn savings from asset recovery
Adighije also highlighted measures taken by the current management to recover assets and reduce operational costs.
She said NDPHC had recovered 110 abandoned containers and 216 packages within its first 100 days in office, generating savings of more than N30 billion for the company.
Other initiatives highlighted included debt recovery, digitalisation, procurement reforms, restoration of assets, completion of distribution projects and the recovery of generation units.
According to Adighije, the company recovered about $12 million from cross-border bilateral customers in Togo and other debtors from outstanding obligations exceeding $50 million.
NDPHC also recovered several turbines across its power plants, contributing an estimated 470MW to available national generation capacity.
House committee pledges support for power-sector reforms
Nwokolo commended the NDPHC management for its efforts to improve electricity generation and infrastructure, describing the company’s operations as critical to the entire power value chain.
He said effective performance in generation, transmission and distribution was interconnected, stressing that weakness in any segment would undermine the entire electricity system.
“If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing for me to distribute,” Nwokolo said.
The committee chairman also praised Adighije for what he described as a proactive approach to addressing operational problems at NDPHC’s power plants, citing the Alaoji power plant as an example.
He said the National Assembly would examine the challenges raised by the company and work with relevant government agencies and stakeholders to develop solutions.
Nwokolo stressed that legislative oversight should not be viewed as an adversarial exercise, but as a mechanism for identifying institutional challenges, assessing performance and providing support where necessary.
Renewable energy marks next phase of Nigeria’s power strategy
The planned NIPP Phase 2 comes as Nigeria seeks to expand electricity supply while reducing dependence on conventional generation and improving the resilience of its power system.
For northern Nigeria, increased investment in solar, mini-hydropower and decentralised electricity systems could provide an additional pathway to closing the region’s energy-access gap.
The success of the programme, however, will depend on more than adding new generation capacity. Resolving transmission bottlenecks, improving electricity-market liquidity, securing reliable gas supplies for existing plants, addressing tariff and settlement challenges, and protecting infrastructure from vandalism will remain critical to converting available capacity into dependable electricity for households and businesses.
NDPHC’s transition from gas-fired NIPP Phase 1 to a renewable-focused Phase 2 therefore signals a broader shift in Nigeria’s power strategy—from simply building generation capacity to creating a more diversified, financially sustainable and geographically inclusive electricity system.