Nigeria’s hopes for stable electricity continue to dim as government-owned power plants remain largely inactive, failing to supply up to 3,000 megawatts (MW) of energy.
Despite over $8 billion in investment and a combined installed capacity exceeding 4,000 MW, most plants under the Niger Delta Power Holding Company (NDPHC) are operating well below capacity.
A recent report by the Nigerian Electricity Regulatory Commission (NERC) reveals that only Ihovbor 2, located in Edo State, performs optimally, delivering 449 MW out of its 461 MW capacity in April. The rest barely produce enough to justify their existence.
“The Nigerian federation has invested in us so much… but it is grossly underutilised,” said former NDPHC MD Chiedu Ugbo in a local newspaper.
The Alaoji 1 plant, designed for 500 MW, has remained dormant for months. Olorunsogo 2 managed just 24 MW in April, barely 3% of its 750 MW capacity and produced nothing in March. Similarly, Sapele 1 and 2 collectively generated only 128 MW from a combined 1,220 MW capacity.
In total, power plants across Nigeria delivered only 5,257 MW in April, just 39% of the country’s 13,625 MW installed generation potential.
Systemic Breakdown
The collapse isn’t due to lack of infrastructure alone. According to Bolaji Tunji, media aide to the Minister of Power, there is no commercial incentive to generate more electricity.
“Consumers aren’t paying, government subsidies are missing, and distribution companies won’t absorb extra power,” Tunji said. “Every additional kilowatt is a loss unless supplied to Band A customers.”
Even when plants are capable of producing more, grid constraints and inadequate transmission networks prevent the energy from reaching homes and businesses.
“Power generation is demand-driven,” he said, noting that Nigeria’s outdated grid system can’t handle increased output even when available.
NDPHC’s Stranded Potential
Despite being structured as a private company, the NDPHC is fully owned by Nigeria’s three tiers of government. The company was created during President Olusegun Obasanjo’s administration as part of the National Integrated Power Projects (NIPP), a strategy to fix chronic capacity issues.
“The idea was to have an integrated value chain—from fuel supply to distribution—under one national project,” explained a note on NDPHC’s website.
But the result has been a stark mismatch between investment and output.
Omotosho 2, Olorunsogo 1, and Omoku are among the other underperforming assets. Together, they add only a fraction of their combined 1,335MW capacity to the grid. At Omotosho 1 and Olorunsogo 1, both rated at 335MW, only about 42% capacity is being utilised.
Privatisation and policy paralysis
To salvage the sector, the government began selling off NIPP plants. In 2024, it planned to divest five plants, valued at $1.15 billion, including Geregu II (434 MW), Omotosho II (451 MW), and Benin-Ihovbor (451 MW).
While these transactions may reduce financial burden, experts argue that reforms must go deeper.
“To boost grid performance and utilise NDPHC’s capacity, we must bring manufacturers back to the national grid,” said Adetayo Adegbemle, Executive Director at Power Up Nigeria.
“We must also end policies that fragment the grid, it undermines affordable energy access,” he added.
Prof. Dayo Ayoade of the University of Lagos echoed similar sentiments, warning that the government’s heavy hand stifles performance.
“Though NDPHC is registered as a private firm, it behaves like a government agency—and that kills efficiency,” he said.
He urged authorities to fix generation, transmission, and distribution problems in parallel, rather than in isolation.
Outlook: More questions than power
While government officials continue to defend the legacy of past investments, millions of Nigerians remain in darkness. As power generation stagnates, citizens and industries increasingly rely on costly, polluting alternatives like diesel generators.
With no immediate relief in sight, the country’s long-standing energy crisis appears stuck in a loop of underperformance, blame, and unfulfilled promises.
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