Gas disputes, mounting debts and failed infrastructure crippled major Abia power facility for years as authorities now position revived plant as key to regional industrial growth
By Baron Eloagu / May 23, 2026
ABUJA, Nigeria —The Niger Delta Power Holding Company (NDPHC) has officially restarted the 450 megawatts Alaoji Open Cycle Power Plant in Abia State after nearly three years of shutdown caused by gas supply disputes, metering discrepancies, and accumulated financial obligations.
The restoration marks a major intervention in Nigeria’s struggling electricity sector, where repeated infrastructure failures, gas shortages, and weak transmission systems have continued to undermine national power generation capacity.
The plant, located in Alaoji, had been inactive since 2023 after gas supplier TotalEnergies suspended supply following unresolved disputes linked to metering and trading points.
Gas Supply Crisis Crippled Plant Operations
Managing Director and Chief Executive Officer of Niger Delta Power Holding Company, Jennifer Adighije, disclosed that the shutdown exposed deeper structural and operational weaknesses within Nigeria’s power generation ecosystem.
According to Adighije, defective gas infrastructure and unpaid obligations to gas suppliers contributed significantly to the collapse of operations at the facility.
She stated that after assuming office in 2024, reviving the Alaoji plant became one of the company’s top strategic priorities.
“We carried out and fixed all remedial works on the defective gas line. We also completely defrayed our past due obligations to Total, and gas supply has now been restored,” she said during a meeting with Governor Alex Otti.
Three Generating Units Restored
NDPHC confirmed that extensive electro-mechanical rehabilitation works were completed before operations resumed.
The company disclosed that three turbines — GT1, GT22, and GT23 — have now been restored and are capable of dispatching approximately 375 megawatts into Nigeria’s national grid.
Officials say the plant currently faces no major transmission evacuation limitations, making it one of the more strategically viable facilities within the country’s fragile electricity infrastructure network.
Abia Government Eyes Expanded Electricity Market
Governor Otti described the revival of the power plant as critical to industrialisation, investment growth, and economic expansion within Abia State.
The governor lamented that such massive infrastructure had remained dormant for years despite Nigeria’s worsening electricity crisis.
“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,” Otti stated.
He revealed that long-term expansion plans could potentially increase the facility’s generation capacity from 450MW to 800MW and eventually to about 1,100MW if adequate funding becomes available.
Strategic Shift Toward Regional Electricity Independence
The development comes amid growing efforts by several Nigerian states to reduce dependence on the fragile national grid following the implementation of the Electricity Act, which decentralised aspects of electricity regulation and generation.
Adighije praised the Abia State Government for establishing a state electricity regulatory framework and pursuing ring-fenced electricity arrangements aimed at improving local power distribution.
The NDPHC chief said the company intends to leverage Nigeria’s evolving bilateral electricity market to partner directly with states and industrial consumers.
“We would love to form a strategic alliance with Abia State considering the governor’s determination to secure uninterrupted electricity for the people,” she said.
Umuahia Power Expansion Plans Underway
Governor Otti disclosed that Abia State had already ring-fenced the Umuahia electricity market and entered agreements with Enugu Electricity Distribution Company to acquire electricity distribution assets covering Umuahia and nearby communities.
According to the governor, the state would require at least 100MW to service the eight local government areas within the planned Umuahia electricity corridor.
He also revealed that the government is simultaneously investing in renewable energy and mini-grid infrastructure to strengthen power supply resilience.
Longstanding Structural Problems Persist
Despite the restoration, energy analysts warn that Nigeria’s electricity sector still faces systemic risks capable of undermining long-term sustainability.
Among the concerns are:
- Persistent gas supply instability
- Mounting debts owed to generation companies
- Weak transmission infrastructure
- Distribution inefficiencies
- Regulatory uncertainty
The Alaoji shutdown itself exposed how unresolved commercial disputes and infrastructure failures can paralyse strategic national assets for years.
Commercial Negotiations Expected
Abia State Commissioner for Power and Public Utility, Monday Ikechukwu, confirmed that the state government is prepared to begin commercial negotiations with NDPHC regarding electricity wheeling arrangements.
The commissioner assured the company of the state’s willingness to deepen collaboration aimed at improving electricity access and supporting industrial growth.
The revival of the Alaoji Power Plant represents a significant boost for Nigeria’s electricity generation capacity and a symbolic victory in efforts to rehabilitate dormant infrastructure within the power sector.
However, analysts say sustaining operations will depend heavily on resolving deeper structural challenges involving gas supply reliability, market liquidity, transmission capacity, and regulatory coordination.
For many Nigerians facing chronic power shortages, the successful operation of Alaoji may serve as an important test of whether long-promised electricity reforms can finally translate into stable and sustainable power supply.
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