KEY POINTS
- NDPHC diversifies into solar and small hydro to complement gas plants.
- The company plans to provide direct electricity supply to industrial clusters, starting in Kano.
- Transmission limits, gas shortages and liquidity gaps remain major sector challenges.
The Niger Delta Power Holding Company is expanding into renewable energy and direct electricity supply to industrial clusters as part of efforts to improve power reliability and support economic growth in Nigeria.
Managing Director and Chief Executive Officer Jennifer Adighije said the shift reflects a broader strategy focused on sustainability, operational efficiency and closing supply gaps that continue to affect industrial output.
She spoke during a television programme monitored in Lagos.
Renewables to complement gas generation
Adighije said NDPHC is gradually integrating cleaner energy sources such as solar and small hydro projects into its portfolio. These projects will complement the company’s existing gas fired plants built under the National Integrated Power Project.
She said diversifying the energy mix will strengthen resilience within the power sector and reduce exposure to fuel supply risks.
The company is developing a solar power concept targeted at industrial clusters in Kano State. The project is expected to serve as a pilot for similar interventions in other industrial hubs.
According to Adighije, the goal is to provide dedicated and reliable electricity to manufacturing zones. She said this will reduce reliance on diesel generators, lower production costs and improve competitiveness for local industries.
Direct supply model for industrial hubs
NDPHC is also exploring direct electricity supply arrangements with distribution companies and eligible customers within existing regulations.
Adighije said the approach will help ensure that electricity generated by NDPHC plants is delivered efficiently to areas with high demand and strong economic potential.
Under its Light Up Nigeria initiative, the company aims to supply reliable and affordable power to industrial and commercial clusters, markets, universities and residential communities. The programme relies on embedded and independent power solutions.
She said the initiative is expected to stimulate job creation, attract investment and support small and medium enterprises that struggle with unreliable electricity.
Infrastructure gains and sector challenges
Adighije said NDPHC has built 10 power plants across 10 states under the NIPP programme. Eight have been commissioned and six are currently in commercial operation.
The company’s installed capacity stands at about 4,000 megawatts, which represents close to 30 percent of Nigeria’s grid connected capacity.
Within the past year, NDPHC recovered about 900 megawatts of dormant capacity by improving plant performance and strengthening maintenance practices. She said the company prioritised optimisation of existing assets before committing to new generation projects.
The company also recovered 110 abandoned containers and 216 packages of power equipment from Nigerian ports after long delays. The equipment will be deployed to complete ongoing generation, transmission and distribution projects.
Adighije acknowledged that structural challenges still constrain the sector. She cited limits in the transmission network, gas supply shortages and liquidity gaps across the electricity market.
Gas procurement accounts for nearly 60 percent of operational costs for thermal plants, she said. She added that only about 30 percent of sector invoices are currently settled.
Adighije called for gradual implementation of cost reflective tariffs and clearer separation of subsidies from electricity pricing. She said consistent enforcement of the Electricity Act 2023 is vital to attract investment and sustain growth.
She expressed optimism that reforms, renewable integration and targeted industrial power solutions will strengthen reliability and support Nigeria’s economic expansion in the years ahead.
