The Niger Delta Power Holding Company (NDPHC) has announced plans to expand bilateral agreements to sell unused electricity generated by its power plants across Nigeria.

As the largest asset-owning entity in Nigeria’s Electricity Supply Industry (NESI), NDPHC operates eight functional power plants and manages several transmission and distribution substations. Despite this capacity, the company faces challenges with excess power generation that remains unused due to insufficient demand from the National Grid.

Speaking at NDPHC’s end-of-year celebration in Abuja, according to Vanguard, Managing Director/CEO, Engr. Jennifer Adighije, emphasized the company’s intention to leverage the Nigerian Electricity Regulatory Commission’s (NERC) recent directive on bilateral agreements. This strategy, she noted, would enable the company to supply electricity directly to eligible customers, addressing the issue of stranded power.

“We have always had a generation capacity in excess of demand and the demand is coming from the downstream markets,” Vanguard quoted Adighije as saying.

“So, we must understand that the market is driven by demand which has created a lot of stranded energy for us because we have energy generated in excess of demand.

“But with this new management our strategic would unlock that stranded energy by dedicating significant portions of that energy now to eligible customers and bilateral trading arrangements pursuant to the order July 25th order of the NERC directing us now to trade bilaterally with eligible customers so that should be able to address our stranded capacity”.

Adighije highlighted ongoing agreements, including a deal with Zenith Point to offtake 100 megawatts and similar potential arrangements with other companies. She expressed optimism that these partnerships, alongside planned Power Purchase Agreements (PPAs) in 2025, would significantly reduce stranded capacity.

“But we already have a lot of off-takers that have sent expressions of interest like Zenith Point is supposed to off-take about 100 megawatts. We have Function, about 100 megawatts, as well as several other potential PPAs that we are likely to sign in 2025.

“So that would address to a large extent our stranded capacity challenge talking about 2025,” she added.

Adighije also noted the progress made in addressing financial challenges in the power sector, particularly the significant debts owed to NDPHC. Since her appointment in August by President Bola Ahmed Tinubu, the company has recovered $4 million from CEET Togo, a cross-border bilateral customer, and secured a firm monthly payment commitment. Additionally, NDPHC resolved a dispute with Eko Electricity Distribution Company (Eko DisCo), resulting in a guaranteed N500 million payment.

“As you can see, we have also gotten very aggressive after debt recovery from our bilateral customers that were owing us and exposing us to huge amounts of debt,” she said. So with these in place we are able to shore up our liquidity and we are looking forward to the journey ahead.”

She further stressed NDPHC’s commitment to profitability through prudent operations and efficient resource management. The company aims to increase generation capacity utilization while reducing reliance on the Nigerian Bulk Electricity Trading Plc (NBET).

Adighije acknowledged the financial difficulties facing the entire electricity sector, including issues with cash flow and significant indebtedness among stakeholders. Distribution companies (DisCos) claim substantial unpaid debts, while NBET has settled only 35% of NDPHC’s N271 billion invoices.

Despite these challenges, NDPHC remains committed to overcoming sectoral constraints and ensuring its operations are sustainable.

“The overarching goal of the NDPHC is to achieve and maintain profitability year-on-year through prudent operations and efficient resource allocation. NDPHC will increase actual generation from existing capacity while minimising exposure to NBET (Nigerian Bulk Electricity Trading Plc),” she concluded.