The Niger Delta Power Holding Company has announced the restoration of the 450-megawatt Alaoji Open Cycle Power Plant in Abia State after 36 months of shutdown caused by gas supply disruptions, metering disputes and mounting debts.
The Managing Director and Chief Executive Officer of the NDPHC, Jennifer Adighije, disclosed this during a meeting with the Governor of Abia State, Alex Otti, where she briefed the state government on efforts undertaken to revive the facility.
According to a statement issued on Thursday by the Head of Corporate Communications and External Relations at NDPHC, Emmanuel Ojor, the plant was shut down in 2023 after disputes emerged over gas metering and trading points, prompting gas supplier TotalEnergies to suspend supply to the station.
The shutdown also led to the accumulation of outstanding financial obligations owed to the gas supplier, worsening operational challenges at the facility.
The Alaoji Power Plant is one of Nigeria’s major government-owned power generation facilities developed under the National Integrated Power Projects aimed at addressing the country’s long-standing electricity shortages.
Located in Alaoji, near Aba in Abia State, the plant was conceived during the administration of former President Olusegun Obasanjo as part of efforts to expand generation capacity using proceeds from excess crude oil savings.
The project is managed by the Niger Delta Power Holding Company, the special purpose vehicle established to execute the National Integrated Power Projects across the country.
The Alaoji facility was designed primarily as a gas-fired power plant because of its strategic proximity to gas reserves in the Niger Delta region. It operates as an Open Cycle Gas Turbine plant and was built in phases to support electricity supply to the South-East and the national grid.
Despite its potential, the plant has experienced recurring shutdowns and underutilisation over the years. One of the major challenges has been inconsistent gas supply caused by pipeline vandalism, commercial disputes, metering disagreements and debts owed to gas suppliers.
Speaking during the meeting, Adighije, an indigene of the state, said restoring the Alaoji plant became a top priority after she assumed office in 2024, given the strategic importance of the plant to the national grid and power supply in the South-East region.
She explained that the company undertook extensive technical and financial interventions to bring the facility back into operation.
“The Niger Delta Power Holding Company, led by Engr. Jennifer Adighije, has restored operations at the 450-megawatt Alaoji Open Cycle Power Plant in Abia State after it was shut down in 2023 over gas supply and metering disputes.
“The good news is that we have carried out and fixed all the remedial works on the defective gas line. We’ve also been able to completely defray our past due obligations to Total, and Total has restored gas supply to the plant,” she said.
The NDPHC boss disclosed that the company had also completed major electromechanical works on the facility, leading to the restoration of three generating units identified as GT1, GT22 and GT23.
According to her, the revived units are now capable of dispatching about 375 megawatts of electricity to the national grid.
She added that the plant possesses adequate transmission infrastructure with no significant evacuation constraints, making it a critical asset for electricity generation and supply.
“We have completed extensive electromechanical restoration works on the generating units. The plant is now positioned to contribute meaningfully to grid stability and improved electricity supply,” Adighije stated.
She commended the Abia State Government for ongoing reforms in the electricity sector, particularly the Aba ring-fenced electricity arrangement and the establishment of a state electricity regulatory agency.
Adighije said the evolving electricity market under the Electricity Act was creating opportunities for partnerships between power generation companies, state governments and eligible customers.
“We would love to form a strategic alliance with Abia State considering the fact that you are very driven and determined to secure uninterrupted electricity for the good people of Abia State,” she said.
Responding, Otti described the revival of the Alaoji power plant as a major development capable of stimulating industrialisation, economic growth and improved living conditions in the state.
“The last time I visited the Alaoji plant, it was regrettable that such capacity was wasting away. I’m glad to learn that you have brought it back to life,” the governor said.
Otti disclosed that the plant has the potential to expand beyond its current installed capacity, noting that it could eventually generate up to 800 megawatts and later scale up to about 1,100 megawatts, depending on funding availability.
He reiterated that electricity remained one of the most important drivers of economic development and said his administration had prioritised power infrastructure since assuming office in 2023.
According to him, the state government had already ring-fenced the Umuahia electricity market and entered into agreements with the Enugu Electricity Distribution Company to acquire electricity distribution assets covering Umuahia and surrounding communities.
The governor said the Umuahia ring-fence alone would require about 100 megawatts of electricity to serve the eight local government areas within the axis.
He added that the state government was also investing in renewable energy projects and mini-grid systems to strengthen electricity access.
Otti directed the Abia State Commissioner for Power and Public Utility to begin discussions with NDPHC officials on modalities for wheeling electricity from the Alaoji plant to Umuahia and other parts of the state.
“We are determined to ensure stable electricity supply because power is central to industrialisation, business growth and economic transformation,” the governor stated.
He assured the management of NDPHC of the state government’s support and urged the company to sustain efforts aimed at improving electricity generation despite challenges facing Nigeria’s power sector.
Speaking after touring the facility, the Abia State Commissioner for Power and Public Utility, Monday Ikechukwu, assured the company of the government’s readiness to commence commercial negotiations with NDPHC.
He said the state remained committed to strategic partnerships that would improve electricity supply and support economic activities across Abia.
Earlier, the Acting Chief Operating Officer of the Alaoji Power Plant, Emenogu Augustine Uzoma, stated that the facility was fully prepared for operations following the restoration works.
Nigeria has continued to struggle with inadequate electricity supply for decades due to gas shortages, weak transmission infrastructure, vandalism, liquidity crises and operational constraints affecting generation companies and distribution firms.
The revival of the plant is seen as critical to improving electricity supply in the South-East and strengthening grid stability nationwide, especially as states increasingly seek direct electricity arrangements under the amended Electricity Act.
The plant is expected to play a major role in Nigeria’s transition towards a more decentralised electricity market, where states and large industrial consumers procure power directly from generation companies through bilateral agreements.
