The Nation Newspaper

Tag: NIPP

  • NDPHC’s renewed momentum: assessing progress under Adighije

    NDPHC’s renewed momentum: assessing progress under Adighije

    By O’Diakpo Obire

    The Niger Delta Power Holding Company (NDPHC) was established in 2005 as a special-purpose vehicle jointly owned by the Federal, State and Local Governments of Nigeria. It serves as the implementing agency of the National Integrated Power Projects (NIPP), one of the country’s most ambitious power-sector interventions aimed at fast-tracking the expansion of electricity infrastructure nationwide.
    NDPHC’s core mandate spans three critical areas:
    Power Generation; developing, operating and maintaining NIPP power plants capable of adding multiple gigawatts of reliable generation capacity to the national grid.
    Transmission Infrastructure: Constructing transmission lines, substations and evacuation facilities to ensure generated power moves efficiently from plants to the national grid.
    Distribution Infrastructure: Delivering injection substations and distribution assets that strengthen electricity access for communities, industries and households.
    Through these mandates, NDPHC was designed to close long-standing gaps in Nigeria’s electricity supply, optimise under-utilised assets, and provide the critical backbone required to stabilise the grid and energise economic growth.
    It is against this backdrop that the leadership of Engr. Jennifer Adighije, appointed MD/CEO in August 2024, must be assessed.
    Visible progress under the leadership of Engr. Jennifer Adighije includes the 625 MW of Recovered Capacity Added Back to the grid. Within her first year, NDPHC successfully restored and re-activated dormant turbine units across several NIPP power plants. These interventions collectively injected approximately 625 megawatts (MW) of additional capacity into the national grid, a significant boost at a time when Nigeria struggles to meet rising demand.
    This recovery was not theoretical. It resulted from targeted maintenance, fast-tracked procurement, renewed vendor engagement and strengthened gas-supply coordination, all driven by tighter management oversight.
    Another milestone of her administration is the rehabilitation of underperforming assets. Before August 2024, several NIPP power plants suffered from extremely low availability. Plants such as Ihovbor, Alaoji and Omotosho were operating far below technical potential, with availability factors reported in single digits.
    Under Engr. Adighije’s stewardship, these plants saw aggressive turnaround actions: Restart of dormant turbine units, overhaul of critical components, restoration of stranded capacity and closer collaboration with gas suppliers and technical partners.
    One outstanding example is the Ihovbor Power Plant, where output grew dramatically following the revival of previously idle units, providing a meaningful addition to national generation.
    Adighije’s ability to improve governance, accountability and transparency is another success achieved within a short period in the history of the company. With a recurring challenge in public-sector generation companies is the absence of clear performance discipline.
    The current NDPHC administration has introduced reforms including; clear departmental KPIs, quarterly performance reviews, strengthened monitoring and reporting frameworks and more transparent communication on operational challenges. These efforts have helped reposition NDPHC as a more structured and professionally run enterprise.

    Read Also: The Nigerian state as ‘a country without country men’? (2)


    In realigning the company commercial model, Engr. Jennifer, recognised that electricity generation is meaningless without sustainable revenue recovery, her management-initiated reforms that include; exploring bilateral power sale agreements with eligible customers, strengthening commercial viability of assets, addressed liquidity challenges caused by huge market debts and started advocating for structural reforms in transmission capacity and gas supply. Such moves represent an important shift toward a more financially resilient NDPHC capable of sustaining its assets.
    Engr. Adighije’s results have earned recognition across the energy sector and built stakeholders confidence, including awards and commendations from industry groups and civil society bodies. More important than the accolades is the renewed confidence among sector players, contractors, suppliers, regulators and partners, who now see NDPHC as an agency undergoing genuine transformation.
    Though challenges are still ahead; to be clear, Nigeria’s power sector challenges remain deep; Transmission bottlenecks still prevent full evacuation of NDPHC’s capacity, gas supply constraints continue to limit optimal plant output, over ₦600 billion in accumulated debts owed to NDPHC strains its operations and the liquidity crisis within the electricity market remains unresolved.
    Yet, NDPHC’s progress of the past year shows that with focused leadership, measurable improvements are possible.
    In conclusion, as an intervention agency created to accelerate power development, NDPHC plays a crucial role in Nigeria’s economic aspirations. Under Engr. Under Jennifer Adighije’s leadership, the company has demonstrated commendable improvement, with 625 MW restored, idle assets revived, operational discipline strengthened and greater transparency introduced into public discourse.
    These achievements, though early, are meaningful. They also set the foundation for deeper reforms, especially when aligned with government efforts to stabilise generation, expand transmission capacity and ensure more reliable electricity for Nigerians. If sustained, this momentum could help reposition NDPHC as a dependable pillar in Nigeria’s energy transition and national development.

  • Our scorecard, by NIPP

    The three tiers of government, in an effort to overcome challenges in the energy sector, and ensure socio-economic development, set up the Niger Delta Power Holding Company (NDPHC).

    Formed in 2005, as the vehicle to implement the National Integrated Power Project (NIPP), the NDPHC was designed for the 10 gas-fired power stations in the gas-producing states of the Niger Delta.

    Also, the NDPHC embarked on  gas infrastructural projects to  provide adequate gas to fire the power plants.

    The NDPHC and the National Integrated Power Projects have become success stories even more than envisaged by stakeholders. NIPP has become a pillar to Nigeria’s power sector stability.

     

    Intervention in gas supply and transmission

    The ND PHC has successfully intervened in the shortage of gas supply to the NIPP power stations in the Western Delta – Ogorode, Benin (Ihovbor), Omotosho and Olorunsogo. This has led to improved gas supply to these power stations. On the inadequate transmission capacity to evacuate power from the Eastern Delta plants, there was the quick completion of the 12 circuit 330KV Ikot-Ekpene-switching station and the dual circuit 330kV transmission lines from the Alaoji and Calabar power stations. There was also the completion of the first circuit (line 2) of the Ikot-Ekpene to Ugwuaji four circuits 330KV.

    On the inadequate gas pipeline infrastructure in the Eastern Delta (Alaoji and Calabar), there was the completion of the Northern Option Pipeline project (NOPL) by Total for gas supply to Alaoji Power Station and the completion of the Seven Energy dedicated pipeline from Uquo field to Calabar Power Station.

    Magboro and its environs in Ogun State, after 17 years of non-supply, was in 2017 delivered electric power through the intervention of the NDPHC. Having completed the Magboro connection project, electricity was supplied to Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo communities.

    Such has been the magnitude and the trend of the positive activities, including hundreds of distribution projects in various zones, working to optimise the about 3,000 megawatts (Mw) in the NIPP Plants to get to end users.

     

    Renewed commitment

    NDPHC Managing Director Mr. Chiedu Ugbo, said: “We are staying close to the projects and the contractors to know what their problems are. We don’t just sit back in our offices because we are not engaged to do that.

    “The NDPHC has embarked on the construction of additional 120 transmission stations and sub-stations and 10 critical power generation projects that will be transferred to the national grid. This will, ultimately, support power generation and supply in the country. It has been involved in the construction of distribution lines to increase distribution of electricity to even rural communities.

    “The NDPHC, when it sees the need, intervenes in critical areas to ensure stable electric supply. For instance, it recently completed a distribution line for Ibadan Electricity Distribution Company (DisCo) to consolidate the supply of electricity to communities in its franchise area. It provided a 33kv line and every community along that line will tap into it. It is doing unique intervention jobs like this because it believes Nigerians must have public power supply.”

     

    Completed distribution substations

    Some recently completed distribution substations and lines include 1x15MVA, 33/11kV Injection Substation in Tambuwal, Sokoto State; 1x15MVA, 33/11kV, 1X7.5MVA injection substation in Fegge, Anambra State; 1X7.5MVA, 33/11kV injection substationin Potiskum, Yobe State; 1X15MVA, 33/11kV injection substation, Gagi, Sokoto State; 1×7.5MVA, 33/11kV injection substation in Otta, Ogun State; 1X15MVA, 33/11kV injection substation, Angwan Dosa, Kaduna State; 2×7.5 MVA, 33/11kV injection substation, Lamingo, Plateau State; 2X15MVA, 33/11KV injection substation, Zaria Road, Jos; construction of 33kV line from Oke Aro Transmission Station to Mowe SubStation; 2x15MVA, 33/11kv injection substation, Asaba, Delta State; 1×7.5 MVA, 33/11kV injection substation, Saminaka, Kaduna State; 1X7.5kVMVA, 33/11kV injection substation, Iloko, Osun State; 1X15MVA, 33/11kV injection substation, Aminkanle, Lagos State;  1x15MVA, 33/11kv injection substation, Abule Taylor, Lagos State; 1x15MVA, 33/11kv injection substation, Elemoro, Lagos State; 1×7.5MVA, 33/11kv injection substation, Bauchi, Bauchi State; 1x15MVA, 33/11kv injection substation, Farfaru, Sokoto State; 1×7.5MVA, 33/11kv injection substation, Water Works Gusua, Zamfara State; 1×7.5MVA, 33/11kv injection substation, Otowhodo, Delta State and 1×7.5MVA, and 33/11kv injection substations in Ibusa, Delta State.

    Also recent intervention projects in distribution include 78 projects, over 544Km of 33kV Lines, over 130km of 11kV Lines, 199 distribution transformers including 100KVA, 200KVA, 300KVA, 500 KVA; 148MVA Injection Substation Capacity and 108MVA Distribution Transformers Capacity.

    The Ikot Abasi 330/132kv, 3x150MVA substation has been completed. The transmission substation, the largest of the NDPHC projects, is being designed as a power evacuation facility for power generated by the Ibom Power station, Alscon Power station as well as the Qua Iboe power plant of ExxonMobil in Eket.

    In 2016, NDPHC constructed a 330/132kv switching station in Ikot Epkene, Akwa Ibom State. It also constructed six injection distribution substations of various capacities in Akwa Ibom State along with completely Self-Protected transformers (CSP).

     

    Completed power stations, others

    The NDPHC has also completed a couple of projects in the generation. These include the 750 megawatts (Mw) Olorunsogo 11; 450Mw Sapele; 434Mw Geregu 11; 450Mw Omotosho 11; 450Mw Ihovbor; 450MW Alaoji;  563Mw Calabar and 225Mw Gbarain power stations.

    According to the data on its website, NDPHC has completed 2,194km of 330KV transmission lines and 809km of 132KV transmission lines; an increase of 46 per cent and 13 per cent over the pre-NIPP status of grid infrastructure. It has further constructed a total of 2,600km of 11kv and 1,700km of 33kv distribution lines for improving access to electricity. It is trite that there is heavy dependence on the NIPP plants in bringing electricity supply to Nigerians.

    In grid instability, NIPP plants provide about 265Mw of spinning reserves to facilitate grid responsiveness during disturbances on the transmission network. Spinning reserve is practised all over the world. The NDPHC assets are the backbone of Nigeria’s power infrastructure.

    Therefore, a transparent privatisation for credible international firms will push the NIPP across the finishing line. Nigeria’s installed capacity (nationwide) in generation projects pre-NIPP was 5, 329Mw, but by 2006, it had risen 8,440Mw and post-NIPP it is 13,140Mw, an increase of 56 per cent.

    In transmission projects, Nigeria’s 330kV lines pre-NIPP was 4,495km but by 2006, it increased to 4,738km, and post-NIPP is 6,932km, an increase of 46 per cent.

    Nigeria’s 132kV lines pre-NIPP was 5,430km but by 2006, it went up to 6,227km, and post-NIPP it is 7,036km, an increase of 13 per cent.

    Nigeria’s 132/33kV transformer capacity pre-NIPP was 5,700MVA and by 2006, it was 7,805MVA, and post-NIPP is 11,118MVA, an increase of             42 per cent.

    Nigeria’s 330/132kV transformer capacity pre-NIPP was 5,300MVA, which went up to 6,008MVA by 2006, and post-NIPP, it is 11,590MVA, an increase of 93 per cent.

    In national distribution projects, 33kV transmission lines at 2006 was 45,252km, post-NIPP is 47,538km, an increase of five per cent; 11kV transmission lines as at 2006 was 31,973km but post-NIPP, it is 36,648km, an increase of 15 per cent.

    0.415kV transmission lines as at 2006 was 232,862km, post-NIPP it is 245,905km, an increase of six per cent and 33/11kV substations at 2006 was 8,148MVA, post-NIPP it is 11,649MVA, an increase of 43 per cent.

    33kV & 11/0.415kV substations as at 2006, was 11,810MVA, and post NIPP it is 14,878MVA reflecting an increase of 26 per cent; 33kV & 11/0.415kV substations as at 2006 was 32,000, post-NIPP is 84,170, an increase of 163 per cent. Also, 33kV/11kV substations as at 2006 were 1,048, but post-NIPP it is 1,311, an increase of 25 per cent.

     

    Need to commence second phase of NIPP

    In the second phase of NIPP, the NDPHC will build hydro power plants in the North and complete transmission projects carried over from first phase. It will also launch into power generation from alternative renewable sources.

    According to the company, millions of Nigerians daily enjoy power supply, but are not aware of the tremendous efforts put in by various governmental bodies. Though the national energy demand is huge and 100 per cent supply is yet to be met, there are federal agencies working for Nigerians. Some of the improvement in public power supply can be attributed to the NDPHC executing its mandate to add new capacity to public power supply.

    “It is with all earnestness, that this charge has been religiously carried out. The records are in the public domain. Nigerians have also come to appreciate the challenges the NDPHC faced through the years in its inability to deliver its mandate. Some of those challenges still exist. The vision of the NDPHC was clear, but it needed men to drive its corporate mission, to surmount challenges. In taking over management of the NDPHC, the Ugbo-led team hit the ground running.

    “To avoid pitfalls, it introduced international best practices, set clear its bearings and tried to avoid needless controversies and distractions. Like a ship sailing in dangerous waters, it took precautions; it avoided tainted men with baggage; avoided the unseen shoals and rocky reefs of quacks and racketeers. The object of any public service corporation management should be the satisfaction of the people.  The NDPHC was charged to give much attention to more concentrated power infrastructural development to delivering Nigerians stable electric power. Armed with this directive, it has worked to be above board and to ensure its focus is not abridged. The success of the NDPHC will inevitably raise the living standard of all Nigerians,” the company said.

    Ugbo said the success story of the NDPHC has been from the support of the government of Nigeria and its workers who have always been result-oriented and driven with a passion to help the populace. Their job is not a luxury. It comes with a back-breaking schedule of field activities.

    Nigerians need stable electric supply. This will bring joy to their homes and their choice of economic activities will be boosted as electric supply turns the wheels of most of our lives. This has been the major pre-occupation of the NDPHC, continuing in its march to attain stable electric supply for Nigerians. It is using every available means to aid the generation, transmission and distribution of power supply on the principle of best services. The character of the developments, demonstrate that its policy is dominated by public interest rather than private interest.

  • Al-Makura inaugurates power station to boost electricity supply

    Al-Makura inaugurates power station to boost electricity supply

    Gov. Umaru Al-Makura of Nasarawa State on Monday in Lafia inaugurated two 7.5 MVA power injection substation to boost electricity supply to the state capital and environs.

    Al-Makura, while inaugurating the project in company of the Minister of Power, Works and Housing, Mr Babatunde Fashola, said it was a dream come true for the people of Lafia and  environs.

    He said the project was constructed by the Niger Delta Power Holding Company ( NDPHC ) under the National Integrated Power Project ( NIPP ) of the Federal Government.

    The governor said the project would go a long way in boosting the economy of the state through the expansion and sustainability of small scale businesses.

    Read also: Lawmaker seeks more support for Buhari, Al-Makura

    “As from today, the people within the state capital and environs would start benefiting from effective and efficient power supply because the burden of power on the Lafia substation would be reduced,’’ Al-Makura added.

    Al-Makura also commended the Federal Government for various power expansion projects as well as the ongoing construction of a sub-station at Akurba in Lafia with a view to stepping down the 330kva power line running through the state.

    Earlier, Mr Chiedu Ugbo,the  Managing Director of NDPHC, said the project, which commenced in 2007, was completed about three years ago.

    He said the project was, however, vandalised before it could be handed over and had to be rehabilitated by the company.

    Ugbo said the two 7.5 MVA power transformers at the station would inject 13 megawatts of electricity to the existing supply to Lafia and environs.

    According to him, each of the 7.5 MVA power transformers will feed 15 units of 500kv distribution transformers, adding that a 500kv transformer have the capacity of supplying power to about 1,000 households.

    NAN

  • Why NIPP should be sustained

    Why NIPP should be sustained

    The National Integrated Power Project (NIPP) is a programme designed to, not only  boost power supply, but also to actualise the Federal Government’s industrialisation aspiration through an enduring stable power supply. The programme is currently stagnated and faces an uncertain future, reports, EMEKA UGWUANYI.

    Despite the challenges  facing the National Integrated Power Project (NIPP), electricity supply from the power stations built under the initiative, accounts for at least 25 per cent of the total output from the national grid. The percentage contribution by the project excludes capacities of some of the power plants that don’t get gas to fuel the turbines.

    At the moment, the NIPP programme is facing an uncertain future with huge debt overhang as the Niger Delta Power Holding Company (NDPHC) that oversees the project is being owed N64 billion by the Federal Government, work and privatisation schedules have been disrupted and currently at standstill. The NIPP dream according to industry stakeholders, must not be killed if government’s aspirations in the power sector should be achieved.

    The National Integrated Power Project (NIPP) superintended by the Niger Delta Power Holding Company (NDPHC) on behalf of the three tiers of government (federal, state, local government) is a programme conceived in 2004 to fast-track the addition of significant new generation capacity to Nigeria’s electricity supply system. After the establishment of the programme, the government in 2005 incorporated NDPHC to serve as the legal vehicle to contract for, hold, manage and operate the assets developed and built under the NIPP using private sector best practices.

    The original plan was that NDPHC would also build hydropower dams in the North in the second phase of the NIPP after the completion. The 10 power plants built under the NIPP include Alaoji Generation Company in Abia State, Benin Generation Company in Ihovbor, Edo State, Egbema Generation Company in Imo State, Gbarain Generation Company in Bayelsa State, Calabar Generation Company, Cross River and Geregu Generation Company in Kogi State. Others are Omotosho Generation Company in Ondo State, Ogorode Generation Company in Sapele, Delta State,  Omoku Generation Company in Rivers State Olorunsogo Generation Company in Ogun State. They have a combined installed generation capacity of 5,453 megawatts (Mw) and they are all gas powered. Apart from increasing the power supply, the plants were meant to take substantial quantity of natural gas to actualise government’s efforts to end gas flaring and utilise the flared and non-associated gas for the good of the citizenry.

    Besides power generation, the NIPP project factored in construction of complementary electricity transmission and distribution infrastructure, as well as the infrastructure required to deliver the natural gas needed at the power plants. Therefore, investment and provision of infrastructure under the NIPP cut across the entire electricity power value chain but currently the projects seem abandoned.

    The National Integrated Power Project (NIPP) superintended by the Niger Delta Power Holding Company (NDPHC) on behalf of the three tiers of government (federal, state, local government) is a programme conceived in 2004 to fast-track the addition of significant new generation capacity to Nigeria’s electricity supply system

     

    Implications

    Discontinuing the NIPP programme would have far-reaching impact on the power sector. Besides affecting the level of output, the fate of thousands of direct and indirect jobs provided by the project will be hanging. For Dr. Austin Nweze, an oil industry analyst and don at the Pan Atlantic University, Lagos, because of the strategic nature of the project, if the government abandons the project, the current contractors handling the project will leave and certainly government will re-award it to fresh contractors at higher cost. The old contractors in view of their commitments to the financial institutions and breach of contract may take the government to court.

    Nweze said: “It would be unfortunate for the government to abandon the NIPP programme. There should be continuity in government. Government is a continuum. Therefore whoever is there today may be out of there tomorrow but the most important thing is that projects embarked upon by an administration that are beneficial to the populace, should be continued by successive administrations. But this is not the case in Africa and particularly in Nigeria, where governments don’t see anything good in what their predecessors did.

    “It behoves the government in power to continue the project initiated by the previous administration for the benefit of the citizens but in Africa, leaders shove aside all the efforts and projects of their predecessors and this attitude has drawn back  Africa and Nigeria over the years.This has resulted in wasted resources and funds in billions of dollars that were invested in such projects.”

    He said the present government should not throw away the baby with the bath water, adding that the project will be continued so far as it is in the interest of the populace. Abandoning such a huge and calculated project meant to enhance the economy and future of the country will cost the country more in the future, he added. Nweze said: “It will cost us more as a nation if the project is abandoned. The absence of continuity in government and abandonment of projects embarked on by previous government is an attitude that has led to many foreign investors and people not doing business in Nigeria on the long term and this will derail the long term objective of a nation.

    “The United States of America and Europe solved their power problems within 50 years but in Africa and Nigeria, we have been struggling to solve the same problem in over 100 years and this has remained a major setback to industrialisation. In Nigeria, 85 per cent of manufacturing components depend on power, and stable power supply improves the quality of life. With stable power supply, production cost of goods and services will drop substantially.

    “Also if the government directly or indirectly shows disinterestedness in the project, the contractors will abandon it and the same contracts will be re-awarded in the future at a higher cost. Also if the project is abandoned, salaries will not be paid, the contractors can take the government to court for breach of contract, and this may lead stagnation of the economy with the attendant job losses, among others.

    “President Muhammadu Buhari should manage the process well. Irrespective of the past negotiations, government should settle the debts owed NDPHC and keep the project running. Whatever the former President, Goodluck Jonathan did, was not on personal basis but on behalf of the nation, therefore Buhari should continue the project from where the previous government stopped.”

    A source in the power ministry told The Nation that currently as activities on the NIPP and at NDPHC stand still, over $14 billion pledged to be invested in the second phase of NIPP by foreign firms has been stalled.

    According to the source, the second phase projects include construction of large hydropower plants such as Mambilla, Gurara II and 10 small hydropower plants, transmission and distribution facilities and equipment.

    He said the State Grid of China/CET/Westron, had committed to invest over $8 billion in first tranche and additional $4 billion later (on equity/loan participation) in Transmission Company of Nigeria through NDPHC with minimum $600 million contribution by NDPHC. He noted that Africa Group from United States of America has also committed to invest over $2 billion in power projects in Nigeria using NDPHC as a fulcrum. There are some other interested investors committed to self-financing small transmission projects in the range of $50 million and $200 million, citing a firm called Ak-Ay, as an example, he added.

    He stated that the delay in closing transactions on the NIPP first phase and the over N64 billion owed the NDPHC by the Federal Government, the foreign investments seem stalled and when the foreign companies begin to withdraw their commitments, it would be difficult to achieve the second phase of NIPP. Therefore, the earlier the issues confronting the first of NIPP are addressed, the better for Nigerians and the economy.

    He said: “On NIPP phase two programme implementation, the National Economic Council (NEC) approved the construction of some hydro-electric projects and additional strengthening of the transmission network from the proceeds of the sale of 80 per cent shares in NIPP generation projects for implementation as Phase II of NIPP.

    “Meanwhile, 80 per cent share sales transaction  supported by Messr CPCS Transcom International of Canada resulted in $5.7 billion, however, as no payments have been received from the share sales transaction due to gas and market bankability limitations, the NIPP Phase two implementation cannot commence as initially intended.”

     

    Challenges

    Besides the initial problem the NIPP programme had in 2007 when it was alleged that $16 billion was invested in the project with nothing to show for it, the project has been a huge success. The 2007 problem dragged the project into controversy and litigation, and later suspension by the government in power then, which described it as a huge fraud and drainpipe of public funds, but after two years, the suspension was lifted and the government continued with the project.

    By mid 2013, the 10 power plants constructed under NIPP phase one have reached various completion levels generating over 2,000 megawatts (Mw) of electricity. In line with the original plan, 80 per cent stakes in the 10 plants were put up for sale to generate part of the funds that would be used in the second phase. The board of NDPHC comprising representatives of the shareholders and statutorily chaired by the Vice President, had agreed that the $4.3 billion proceeds expected from the sale of the power plants will be reinvested into the project to ensure the country attains the stage of supplying uninterrupted power to its citizenry.

    But currently, the divestiture of NDPHC generation assets is uncertain as the planned privatisation transaction of the 10 power plants is stalled due to inadequate gas for full commercial operation, and partial payment of energy invoices arising from the poor liquidity of the sector and this constitutes a major setback as NDPHC alone is owed over N64 billion. Besides, four of the 10 power plants including Alaoji, Gbarain, Ogorode and Omoku are under litigation. In view of the development, most of the bidders have withdrawn their bid bonds hence the uncertainty on the fate of the transaction.

    According to the industry source, resolution of these issues would pave way for the sale and commencement of new investment under NIPP phase II in which the organisation would invest in transmission infrastructure, large hydropower and 10 other small hydropower plants.

    He stated that following the challenges confronting the project and the over N64 billion owed the NDPHC by the Federal Government, the foreign investments may be stalled. He said: “On NIPP phase two programme implementation, the National Economic Council (NEC) approved the construction of some hydroelectric projects and additional strengthening of the transmission network from the proceeds of the sale of 80 per cent shares in NIPP generation projects for implementation as Phase II of NIPP.

    “Meanwhile, 80 per cent share sales transaction supported by Messrs CPCS Transcom International of Canada resulted in $5.7 billion, however, as no payments have been received from the share sales transaction due to gas and market bankability limitations, the NIPP Phase two implementation cannot commence as initially intended,” adding that the situation is worsened by the withdrawal of bid bonds by the prospective investors.

    He however, stated that the share sales transaction has to be redesigned for phased closure, adding that public procurement process for the engagement of a project management consultant to support NDPHC in project selection, design and implementation of NIPP Phase two projects has been completed with AF-Consult/Otis emerging victorious.

     

    Funding and progress

    The NIPP projects are funded from the excess crude account, with the Federal Government contributing 47 per cent of the funds, while the state governments contribute 35 per cent and the local governments 18 per cent. As at May this year, about $11.1 billion has been committed to the project. Out of the $11.1 billion, $7.1 billion went into the building of the 10 generation plants, $0.5 billion into gas assets, transmission assets $2 billion, and distribution assets $1.5 billion.

    The NIPP plants were designed to deliver combined installed capacity of 5,453 megawatts (Mw). Eight of the 10 power plants are designed as Open Cycle Gas Turbine (OCGT) power plants and the other two as Combined Cycle Gas Turbine (CCGT) power plants. The CCGT power plants can generate power through gas and steam turbines. For instance, the Alaoji power plant was designed as a CCGT project with a plant capacity of 1,131.4 Mw. The NDPHC had projected to attain a combined generation of 5153.1Mw by mid 2014 when it planned to fully privatise the power plants and hand them over to the new investors. However, the projections were disrupted due to lack of gas supply to the power plants and inability of some of the preferred bidders to make payments for the assets they bought.

    Under the NIPP programme, 296 distribution injection substations have been undertaken and 265 completed. The remaining 31 substations are in advanced stages of completion. Also all the High Voltage Distribution System (HVDS) outgoing 11kV feeder networks from 162 of these completed substations have had their CSP transformers fully deployed to serve consumers, The Nation learnt.

    The programme also carried out the installation of 114 transmission lines and substation projects. The projects were done to evacuate power from the new power plants as well as expand the capacity of existing substations to wheel the additional generation. It was also necessary to enhance the grid by closing the loop from South-South via South East and North Central to North East Nigeria. The projects include the Makurdi-Jos  330kv and 330/132/33kv lines; Makurdi 330/132kv; 330kv DC Makurdi-Aliade; 330kv DC Aliade-Ugwuaji and 330/132kv New Haven, Enugu, among other across the country. Some of the project contractors and EPC (enginerring, procurement and construction) contractors include Colenco, North China, Dextron, Energo, CCC International, Payma Bargh and Cartlark, Fichtner, Hoquado Limited.

    But currently, the divestiture of NDPHC generation assets is uncertain as the planned privatisation transaction of the 10 power plants is stalled due to inadequate gas for full commercial operation, and partial payment of energy invoices arising from the poor liquidity of the sector and this constitutes a major setback as NDPHC alone is owed over
    N64 billion

    The Managing Director of NDPHC, James Olotu in a forum in Lagos, said some substantial investments have been made in transmission and distribution. He said 2,370MVA of 330kV and 132kV transformer capacities are in service in the national grid, while over 80 per cent of transmission lines have been strung out of 2,903km line with  substantial transmission lines already in service. He also noted that  substantial upgrade has been carried out to strengthen the weak transmission system along the stretch of the eastern transmission loop which extends from Afam in Rivers State to Ikot Ekpene in Akwa Ibom State, Ugwuaji in Enugu State, Markurdi in Benue State and then Jos in Plateau States.

     

    Why sustenance

    The management of NDPHC, according to records, has shown a measure of accountability. Data obtained by The Nation showed that the NIPP projects were duly processed and approved. The PricewaterhouseCoopers (PwC) has audited the NDPHC accounts for financial years 2005 – 2012, while the audits of 2013 – 2014 accounts are ongoing.  Also external investigations of NDPHC affairs since 2005 to this year, gave the company clean report of integrity, transparency and full accountability. The investigations include those carried out by the National Assembly, SSS/ICPC/EFCC, and the Presidential Project Assessment Committee (PPAC).

    The 10 power plants are still at different levels of completion while there are several uncompleted distribution and transmission jobs ongoing in various parts of the country. Discontinuing the project at this time according to stakeholders, would mean wastage of resources and funds. The $11 billion already invested in the project will not be optimised and the over $14 billion investment foreign firms have committed,  will not only be stalled but the NIPP second phase dream would have been aborted.

     

  • NIPP employee electrocuted in Lagos

    NIPP employee electrocuted in Lagos

    An employee of the Nigerian Independent Power Project (NIPP) in Ikeja was yesterday electrocuted.

    The deceased, attached to the Ikeja Distribution Company (IKDC), was working on an electric pole when he died.

    His face was burnt  and would have fallen off the high tension pole but for his safety belt.

    It was gathered that the deceased was discovered by passers-by, who signalled policemen from the Police College.

    The security officials were said to have brought his body down and rushed him to the General Hospital, Ikeja,  where he was confirmed dead.

    Police spokesperson Patricia Amadin said the incident occurred at about 4.30pm on the Oba Akinjobi Way, GRA, Ikeja.

    “A call came to the command at about 4.30pm that some workers of  NIPP contractors working for the Lagos State Government on cross bar got electrocuted.

    “Some policemen went to the scene and it was discovered that two men were affected, Oluwaseun and Seyi Adekunle.  They were rushed to LASUTH where Oluwaseun was confirmed dead.

    Adekunle sustained injuries and is being treated at the hospital. Both men are employees of J. Plamer NEPA contractors in Ikoyi,” Amadin said.

  • Communities, Nipp/Bedc trade words over epileptic power supply

    Communities, Nipp/Bedc trade words over epileptic power supply

    Residents of Asaba, the Delta State capital since its creation in August 27, 1991, have endured poor public power supply.

    Numerous communities across Aniocha North, Aniocha South, Oshimili North and Oshimili South have suffered worse fate than Asaba with some enduring blackouts for upwards of ten years.

    So, its residents must have heaved a sigh of relief following the commissioning by the Federal Government of the 330/132/33KVA transmission substation located near Asaba after many postponements.

    But several months after the inauguration of the transmission substation, public power supply in Asaba and environs has remained epileptic and unreliable, dashing the high expectations of residents.

    The frustrated communities have led several protests against the Benin Electricity Distribution Company (BEDC) demanding improved services.

    The Supervising Engineer, Nigeria Integrated Power Plant (NIPP), Mr Amobi Odinakachukwu, further stoked the embers of controversy when he criticised BEDC for dereliction of duties, stressing that basic power infrastructure are lacking.

    His words: “If there is any problem that makes power not to get down to consumers, I think it is the responsibility of BEDC to take care of that. I think for my own view, most of the areas in Asaba lack power because there are no distribution poles and high tension lines, but there is ongoing rehabilitation of these lines by the Federal Government bodies – NIPP and Federal Ministry of Power.

    “BEDC also has not come up with serious strategies for solving the problem. May be we will have to wait for them, perhaps they are still sleeping.”

    Amobi accused BEDC of shutting down most of their transformers and were not receiving power from the NIPP, adding if all BEDC’s transformers were working there would be light for all Asaba residents and beyond.

    He added: “BEDC has simply shut down most of their transformers and are not receiving power from the NIPP, if all their transformers within their network is on everybody will have light. If they have been managing a certain megawatts, let say, 10 megawatts, with current local poorly motivated workforce, and are comfortable returning funds based on that, if the manager increases his capacity to say 30 megawatts and is unable to make returns generated don’t you think he will be axed?”

    Also, an advocacy group known as The Concerned Citizens of Aniocha/Oshimili Federal Constituency, in a petition through their counsel, Augustine Elikwu & Co, made available to Niger Delta Report, are threatening mass protest including disrupting electricity supply to ‘favoured  private companies’ and instituting legal redress.

    It also threatened to invoke the Freedom of Information Act to know the modalities with which BEDC obtained the right/licence to distribute electricity within Delta State.

    The petition reads: “It is our client’s demand that you and your company connect/evacuate the light to the various towns and villages in Aniocha/Oshimili Federal Constituency that these substations were meant to serve within two weeks from the date of this letter, failing which our client will stage a mass protest against you and your company and we shall also be forced to do whatever is necessary to stop everybody in Asaba and environs, including the private companies from enjoying electricity.”

    Residents have alleged underhand practices by BEDC, blaming the epileptic power supply to diversion of energy from transmission lines direct from the 330/132/33 KVA substation to major industries , including a major telecommunication, steel smelting and aluminium companies among others in the area.

    NDR gathered that the 330/132/33 KVA substation is equipped with six feeders and that all have been energised, but BEDC has dedicated two feeders for private companies.

    The aggrieved communities’ members also claim that BEDC’s desire to service the high net customers to the detriment of residents was the reason behind the poor power supply.

    Manager, Benin Business District, Dr Abiodun gave credence to these speculations recently in an interview with Niger Delta Report when he said: “As a business person, if you have a product that sells for maybe 10,000  units and that same product sells higher somewhere else, where will you take it to? The tariff structure is not created by BEDC; the BEDC does not have power to fix tariff NERC has the responsibility to do this.”

    But he debunked insinuations that the amount of energy allocated to Asaba and environs have risen since the 330/132/33KVA transmission substation was commissioned.

    According to Abiodun, the energy allocated to BEDC by National Electricity Regulatory Commission (NERC) from power generated nationwide is 9%, adding that this translates to 24megawatts.

    He maintained that available power allocated to Asaba and environs is insufficient  and has not improved with the commissioning of the new substation adding that BEDC in a bid to satisfy all its customers have resorted to load shedding.

    “When BEDC was taking supplies from General Cutting Mill, Onitsha with only single line running from Onitsha to Asaba the power being transferred was about 24 megawatts, that is our allocation. The share of BEDC of the power that is generated nationwide is 9 per cent. BEDC is just one of the 11 DISCO’s in the country. BEDC serves four States – Ondo, Ekiti, Delta and Edo. We have 22 business units.

    “For instance if power generation is 2700MW and our share is 270mw if it is to be divided equally, according to business unit that would be 12.2 mw for each business unit, but energy is shared according to location and customer population. Asaba’s share is about 24 mw.”

    Dr Abiodun describes the 330/132/33 KVA substation thus: “The project can be likened to having a very big pipe and only little water is flowing through the pipe. That is just the problem, not until our allocation of power is increased the epileptic power will continue. For now it is the same 24 mw that we were taking from Onitsha that we are still taking from there. It is because of this allocated power that we have not been able to serve other communities. We want this allocation to be increased so that we can serve other communities.”

    He accused an engineer supervising the NIPP of altering its initial design in favour of Ibusa community, adding that the alteration is posing challenges to efficient evacuation of energy.

    He, however, added that when the power substation has been delivered the BEDC will effect changes that will enhance distribution of electricity.

    He said: “I do not want to mention names; there is a staff of NIPP, this has been an argument, it is that there was supposed to be a line to Ibusa and that was what was shown to me at headquarters now it going to be two lines. That is where the argument comes in. The contractor explained that the 2/15 MVA transformers in Ibusa is to be served with a dedicated line and there will be another line going to Ogwashi-Uku via Ibusa so making two lines to that axis.

    “The NIPP has six lines coming out, initially the BEDC design  and expectation is that of the six lines, the steel companies will have one line each, so they will not have anything to do with other public lines, but the engineer supervising the project altered the design making Asaba have 2 lines which we call Asaba line 1 and Asaba line 2. Asaba line 1 will feed the injection substation near B Division, while line 2 will feed Government/Core area, Okpanam  and the new substation to be commissioned at Government House. Another line will go to Isselu-Uku and environs, the fourth one will go to Ibusa and the fifth one will also go to Ibusa and Ogwashi-Uku because there is a 2/15MVA transformer under construction there, then the other lines will be used for the industries and other businesses,” Dr Abiodun explained.

    On efforts by BEDC to electrify communities that have experienced blackout for several years, he noted that an enumeration exercise was going on in some Issele-Uku, Ubulu-Uku and other communities, stressing that when it is completed power will be restored.

    He added that BEDC chose this option because data from the moribund Power Holding Company of Nigeria (PHCN) could not be relied upon.

    On the vexatious estimated billing system by BEDC, Abiodun maintained that a new billing method was being adopted by his organisation.

    “We have a new method of billing of customers that are not metered. It is called cluster billing, though it may not be 100 per cent correct. The method looks at the cluster which are categorised into A, B, C. We use customers who have functional meters to assess what others will consume.”

     

  • China, U.S to invest $14b in NIPP

    Foreign firms from China and the United States (U.S) have pledged to invest over $14 billion in the second phase of the National Integrated Power Project (NIPP).

    The second phase projects include construction of large hydropower plants such as Mambilla, Gurara II and 10 small hydropower plants, transmission and distribution facilities and equipment.

    A source said the State Grid of China/CET/Westron, had committed to invest over $8 billion in first tranche and additional $4 billion later (on equity/loan participation) in Transmission Company of Nigeria through Niger Delta Power Holding Company (NDPHC)  Limited with a minimum of $600 million contribution by NDPHC which oversees the NIPP projects on behalf of the three tiers of the government.

    The source also noted that Africa Group from U.S. committed to invest over $2 billion in power projects in Nigeria using NDPHC as a fulcrum, adding that there are some other interested investors committed to financing small transmission projects in the range of $50 million and $200 million, citing a firm called Ak-Ay.

    He said following some challenges confronting the project and the over N64 billion owed the NDPHC by the Federal Government, the foreign investments may be stalled.

    He said: “On NIPP phase two programme implementation, the National Economic Council (NEC) approved the construction of some hydroelectric projects and additional strengthening of the transmission network from the proceeds of the sale of 80 per cent shares in NIPP generation projects for implementation as Phase II of NIPP.‘’

    The source said 80 per cent share sales’ transaction supported by Messrs. CPCS Transcom International of Canada resulted in $5.7 billion.

    However, the source added that as no payments had been received from the share sales transaction due to gas and market bankability limitations, the NIPP Phase2 implementation could not commence as planned.

    Earlier, he explained that because of the challenges confronting the NIPP projects, including litigations, bidders have started to withdraw their bid bonds.

    The source stated that share sales transaction has to be redesigned for phased closure, adding that public procurement process for the engagement of a project management consultant to support NDPHC in project selection, design and implementation of NIPP Phase two projects has been completed with AF-Consult/Otis emerging victorious.

    He noted that despite the challenge in gas supply, NIPP currently contributes about 25 per cent of the nation’s generation output.

  • NDPHC prepares for NIPP Phase II

    The Niger Delta Power Holding Company Limited (NDPHC), owners of the National Integrated Power Projects (NIPP), is reorganising  for the implementation of NIPP Phase 11.

    The project will centre on generation from hydro plants as against the Phase 1 that operates on thermal plants. The choice of hydro power is part of the diversification of sources of power supply, especially in the face of the rampant pipeline vandalism.

    The General Manager, Communication and Public Relations, NDPHC, Yakubu Lawal, said the Board, at a meeting in Abuja, approved the implementation of the new structure, which was proposed at its meeting in August, last year.

    Under the new structure, he said the company has four executive directors  to head generation, networks; finance and accounts and corporate services departments. He added that the office of the Company Secretary/Legal Adviser has been upgraded to a director’s status.

    Mr. James Abiodun Olotu retains his position as Managing Director/Chief Executive Officer and the head of the new structure, he said.

    Lawal also dismissed in situations that the Board made the appointments ahead of May 29 swearing in of the new government to avoid changes.

    He said the report could cast aspersions on the integrity, credibility and competence of the chairman and directors of the NDPHC.

    According to him, the National Economic Council (NEC) in April 2013 approved the execution of the second phase of the NIPP projects, which comprise Mambilla hydro power project and 16 other identified medium and small hydro power projects to create a mix of power generation/supply system for the country.

    The Phase 1 NIPP projects have 10 new thermal power stations in the south.

    The second phase will contribute about 4,000 megawatts (MW) to the national grid. It has some critical transmission projects, which are expected to wheel power from the existing and new power stations as it has the capacity to wheel over 20,000MW to the power distribution chain. The projects are being assembled.

    According to the report presented to the Board of NDPHC, four power stations in the NIPP Phase One have been inaugurated by President Jonathan.

    They include Geregu II, 434mw capacity in Kogi state, Omotosho II, 500 MW capacities in Ondo state, 750MW capacity Olorunsogo II power plant in Ogun State and Phase One 504MW Alaoji thermal power station in Abia State. But Benin Generation Company and Ogorode with 450MW capacity each in Edo and Delta states are awaiting opening.

    Other projects for completion are the 21.5km gas pipeline Creek town to Ikot Nyong power plant; 18km  Ikot Nyong-Adiabo 330kV DC lines to evacuate power from Calabar power plant in Cross River State;  completion of 13km 132kv DC Adiabo – Calabar 132/33kV substation and reinforcement of this Calabar 132/33kV substation with 1no 60MVA 132/33kV transformer and bays to accommodate new lines from Adiabo;  completion of the upgrading of Jos 330/132/33kV substation with 1no 150MVA transformer, 1No 75MVA reactor and new 330 and 132kV bays provision to accommodate new lines in and out of Jos 330kV substation.

    Others due for completion are the 286Km 330kv DC Jos-Makurdi transmission line; new Makurdi 330/132/33kv substation; 222km 330kV DC transmission line Geregu-Lokoja-Gwagwalada, linking NIPP power plant at Geregu to FCT, 2x150MVA 330/132/33kV transformer substation at Gwagwalada in Abuja with a further 90km of both 330kV and 132kV lines to reach Katampe and Apo 330/132/33kV substations in Abuja, among projects.

  • ‘Manpower for NIPP’s substations ready by December’

    The National Power Training Institute of Nigeria (NAPTIN), has assured the government and the new investors in the power stations built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Project (NIPP) that it will complete training of personnel that would operate the facilities by December.

    Its Director-General, Mr. Reuben Okeke, told The Nation that the institute is training the personnel that will operate the 234 distribution injection sub-stations bought by the new investors in NIPP facilities as part of their equity, adding that by end of the year, the manpower would be ready. He said NAPTIN is training distribution sub-station operators that would operate both existing and newly acquired substations, adding that they would operate the injection substations for optimum performance.  He said the development became necessary to prevent hitches that arise from poor performance of workers.

    He said: “Over 290 injection substations have been purchased under the National Independent Power Plants (NIPPs) to help drive the initiative.  Out of these, 234 are ready for use and we need Nigerians to man or operate them.  Part of the reasons we flagged off a training programme for technicians in Lagos in October this year was to train people that would operate the substations that would be commissioned soon.

    “One of the companies contracted by the government to handle the issue told me that some of the injection substations would be commissioned before December. That is why NAPTIN is making efforts to train the operators before December.”

    He said the development will help in reducing the skills-gap in the industry, arguing that the sector cannot develop without the necessary workforce. According to him, the government has decided to adopt holistic approach to the training of workers in the sector for growth.

    “All the projects in the sector are going to be manned by well trained workers. The power generation companies (GENCOs) and distribution companies (DISCOs), the NIPPs and other projects in the sector would avail themselves of the opportunities in NAPTIN. The government does not want a situation where there would be dearth of skills in the industry because it has identified poorly equipped workforce as one of the critical problems facing the sector,” he added.

    Okeke said power generation and distribution companies are battling poor workforce, aside gas. He said resources such as gas, good workforce and others are critical to the growth of the industry, adding that the government is not leaving any stone unturned to provide a conducive environment for operators.

    The Bureau of Public Enterprises (BPE), has started the process of selling the plants to new investors. The plants with combined capacity of 5,000 (Mw) of electricity are expected to help improve power supply in the country.

  • ‘Gas supply bottleneck stalls NIPPs’ privatisation’

    ‘Gas supply bottleneck stalls NIPPs’ privatisation’

    The Director General, mBureau of Public Enterprises (BPE), Mr. Benjamin Dikki, has blamed bottleneck in the signing of  gas agreements that would make the transaction bankable for stalling on-going privatisation of the National Integrated Power Project (NIPP) plants.

    He said the process was not  stalled because of politics  as being speculated in some quarters.

    According to Dikki, concerted efforts were being made to secure reliable gas supply that will facilitate the signing of the gas agreements.

    Its Head, Public Communications,  Mr. Chigbo Anichebe in a statement yesterday, made the clarification at a panel discussion titled Making the Power Sector Privatisation Work in a Privatised Environment” organised by the Business Day newspapers, in Lagos.

    Dikki said the privatisation programme was anchored on the attainment of clearly defined goals and parameters, adding that in the case of the generation companies, capacity is expected to be ramped up from the current low levels to those that meet the minimum target capacities specified under the respective business plans submitted by the core investors.

    For the distribution companies, he said the performance of the new owners would be measured on the basis of their abilities to reduce the Aggregate Technical, Commercial and Collection (ATC&C) loss targets specified in their business plans.