Federal Government’s Bold Move: Five Power Plants Set for Sale to Boost National Power Infrastructure
In a strategic move aimed at bolstering Nigeria’s energy sector, the Federal Government, through the Bureau of Public Enterprises (BPE), has revealed plans to sell five power plants under its National Integrated Power Projects for a projected total of $1.5 billion. This sale is anticipated to contribute significantly to the coffers of the government, specifically linked to the Tinubu administration.
The five power plants slated for sale are strategically located across Ogun State, Calabar, Benin, Edo State, and Kogi State, presenting a lucrative opportunity for both domestic and international investors interested in enhancing and expanding Nigeria’s energy infrastructure.
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Ignatius Ayewoh, the acting Director-General of BPE, confirmed ongoing discussions surrounding the sale. Although the transaction is in progress, Ayewoh emphasized that it is yet to be finalized, indicating the complex nature of negotiations involved in such a significant divestiture.
Among the power plants on the auction block, the Geregu II power plant in Kogi boasts a capacity of 434 megawatts, while the Olorunshogo II plant in Ogun State can generate 451 megawatts. The 563MW Odukpami power plant in Calabar and the 451MW Benin-Ihovbor plant in Edo State are also part of the sale, each offering substantial power generation capacities.
The transaction details reveal that the Omotosho plant, equipped with four power-generating turbines, is set to be sold for approximately $85 million. The Olorunsogo NIPP, also featuring four turbines, commands a higher price of $170 million. The Benin-Ihovbor plant, with its five power-generating turbines, is listed at a significant $420 million. The Calabar Odukpami plant, housing five turbines, is slated for sale at around $260 million, while the Geregu plant, featuring four turbines, carries a price tag of $215 million.
In a parallel development, the Nigerian Electricity Regulatory Commission (NERC) dissolved the board of Kaduna Electricity Distribution Company (DisCo) due to its inability to meet obligations amounting to N182.16 billion over the last four years.
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This move, effective from January 1, 2024, underlines the regulatory commitment to financial discipline within the sector.
As the discussions progress and the potential sale unfolds, it marks a pivotal moment for Nigeria’s energy landscape, opening doors for strategic investments and advancements in power infrastructure across the nation.
