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The Managing Director, Niger Delta Power Holding Company, Chiedu Ugbo, tells OKECHUKWU NNODIM that the firm has the ability to provide about 7,000 megawatts of transmission capacity to distribution companies, among other industry issues
Where are some of the power plants of the NDPHC located and who owns the company?
We have power plants in Calabar, Cross River State; in Omokhu, Rivers State, which is still under construction; in Alaoji, Abia State; in Gbarian, Bayelsa State; in Egbema, Imo state, that is still under construction; and in Sapele, Delta State. We also have in Benin, Edo State, which is close to Azura; in Omotosho, Ondo State. So these are core states, and they are eight of them. Then we have in Olorunsogo, Ogun State. The company belongs to the federation because it was funded in the initial stages from the Federation Account, then through the Excess Crude Account, which are monies belonging to all the states and the Federal Government. So the company belongs to the states and the Federal Government. Of course, the states and their local governments, and the Federal Government.
Does the company have transmission projects and what’s the impact on power distribution?
Now, not only have we delivered 4,000 megawatts installed capacity in terms of power generation, we have also done a lot of transmission work, for instance, we have a transmission line running from Calabar to Ikot-Ekpene, and joining the Ikot-Ekpene line all the way to Enugu, Makurdi and then to Jos, constructed by the NDPHC. Of course, on these transmission lines, we have transmission substations that transform the electricity that travels on the lines to very high voltage and steps it down where necessary. So as at today, the company should be able to make available for distribution companies, about 7,000MW in terms of transmission capacity from NDPHC alone. So we have substations that can, if you like, call it convert, or step-down rather, and make the electricity available for distribution companies to the tune of over 7,000MW, all by the NDPHC alone. So when you hear that the NIPP (National Integrated Power Project) was made to stabilise the provision of electricity in Nigeria and it is not doing so, that is not correct. I think the true position should be, if the government did not invest in NIPP, probably we would have been in complete darkness as of today, I can tell you of a truth. Because what will be available might not be able to sustain the grid and the grid might not be able to make much power available to distribution companies to serve Nigerians. So NIPP alone has provided transmission capacity of over 7,000MW, which is about 9,000MVA in terms of substations. Of course, there are several kilometres of transmission lines across the country, including 330kV lines and 132kV lines done by the NDPHC. The Ikot-Ekpene substation, for instance, was commissioned by the government in 2017. It is a 12-circuit substation, that means you have 330kV lines in 12 places that are in and out of that substation.
Are there distribution projects, considering the challenges in this arm of the business?
I don’t think there is any local government in Nigeria that we do not have our footprint in distribution projects. We don’t talk much about it because we should not be shouting for doing our work. We are virtually in every local government, in terms of distribution projects. Our distribution substations are countless across the country. Our 32kV lines, in terms of kilometres are enumerable. Now some of them may not have been put into service by the distribution companies, based on some reasons by the Discos, but that does not mean that the infrastructure is not there. So the NDPHC is implementing the National Integrated Power Project, which has brought countless number of projects for the electricity across the country. As it stands today, was it not for the government’s initiative in the NIPP, probably we would have been in more darkness than we have presently in Nigeria. However, that is not to say that there is no more work to be done. There’s a lot of work to be done.
What then are the challenges stopping the reliable supply of electricity?
There are challenges, but our responsibility is to light up Nigeria by providing electricity to Nigerians. Infrastructure is nothing if no electricity is provided to homes and businesses, and we will continue to strive to provide this electricity. I mentioned our power generation capacity. For clarity, we’ve delivered about 4,000MW, yes, that is what we put on ground. However, as you would have heard, there are challenges, for instance, the generation company in Calabar is a massive project, it is a 625MW power plant. It requires transmission to get the power out. We did the transmission line, but effective transmission is dependent on a number of factors. It is dependent on generation and on distribution. It is also dependent on the transmission itself, in terms of the quality of infrastructure across the country, because it is one network. So there could be host community issues, as well as other concerns that could impede the generated power from not reaching the target customers, who are Nigerians.
Aside from transmission constraints, we have gas supply constraint in most power plants. This is in terms of the availability of the molecules and the network itself. On network, it could be about how it is run, in terms of the pressure and demand. However, let me quickly say that we have full gas to run the Calabar power plant, as we are doing all we can to keep our plants running for the benefit of Nigerians.
However, we implore you to join us in appealing to every Nigerian and every community where we have installations to see those projects as theirs, and to protect them from theft and vandalism. This is more important in network assets of transmission and distribution. Within the last one year, we’ve witnessed some setbacks through such actions, when gas pipelines were damaged, and also recently, when high tension transmission towers were pulled down and the component parts carted away, somewhere in Rivers State.
Are there other constraints limiting power delivery, aside from the ones highlighted?
I’ve mentioned generation, gas and transmission constraints, as well as acts of vandalism and theft. But another constraint impeding power generation is the market liquidity issues and it is impacting us seriously. But I also want to commend our regulator. The power sector is like a moving part that shifts everyday; it is dynamic, challenges come and the sector moves in one particular way, but the regulator has been on its toes. It has been working with the operators, but on each way we meet challenges. We (NDPHC) are being owed billions of naira for electricity generated and put on the grid. And that is because of some problems downstream, with regards to the service of customers by distribution companies. At some point, it was attributed to what they call tariff issues, and at another point, it was attributed to what they call market issues. But the point for us is that the Niger Delta Power Holding Company is being owed. So just imagine a company that is being owed billions of naira and the company is still standing on its feet. Then without blowing our trumpet, there must be something the company is doing right. And despite this, we are still able to intervene in transmission and distribution assets for the benefit of Nigerians. This is because we believe that this project was set up for the benefit of Nigerians and that every state and local government has to benefit from this project.
The call for renewables is on the rise. How is the NDPHC keying into this?
It is an initiative that we started in 2016/2017, which is being handled by our renewable energy department. The idea is to ensure that every Nigerian has access to electricity. We started through our solar home systems and we did the first 20,000 SHS, which was well received. Those who we call the under-privileged people are the beneficiaries and they are paying for it. We’ve completed the 20,000 SHS and they are paying. We are now in the 100,000 SHS phase. Now because of the success of the first phase, the Federal Government mandated us, under the Economic Sustainability Plan, to work more on the solar off-grid connections and we are doing another 100,000 solar connections to Nigerians. Again, we are doing all this because of our conviction that everybody is entitled to access to electricity in Nigeria. We are doing our best, Nigeria is a big country and so the impact might not be felt immediately, but sooner than later the impact will be felt.
There is this push for gas as transitional fuel in Nigeria. What are your views about this?
The truth is that we have serious demand for electricity across the country. We also have gas in the ground across the country and we have gas thermal power plants. Therefore, we must as a matter of principle and policy optimise the use of this gas to provide electricity for Nigerians. There is no two ways about that. Out of the 14,000 megawatts contracted to power generation firms by NBET (Nigerian Bulk Electricity Trading Plc), well over 85 per cent of that are for gas thermal power plants. So, what are you going to do with these plants if you are going to cut down to renewables?
Also, where are we with regards to renewables? Again, I know it is government policy to increase renewables over time. But as of today, about 85 per cent of the contracted 14,000MW is supposed to be fueled by gas and we need to harness this gas, get electricity to consumers, develop our country and then begin to increase other sources of electricity. It has been stated that our electricity demand is somewhere around 28,000MW, perhaps we can then use other sources of renewables such as solar, small hydro plants, wind and others to develop the rest amount of electricity that is required.
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