Amid Poor Electricity Supply, FG Finalizes Bid Process for $1.15 Billion Power Plant Sales
- The FG has completed the sale of five power plants for a combined sum of $1.15 billion in the hopes of attracting investors to the power sector
- The move is part of the National Integrated Power Projects following an agreement reached by governors of all 36 states of Nigeria
- The five power plants sold through the Bureau of Public Enterprises (BPE) are located in Kogi, Ondo, Ogun, Cross River and Edo States
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The federal government has completed the sale of five power plants, amounting to approximately $1.15 billion, as part of the National Integrated Power Projects.
Adebayo Adelabu, the minister of power, announced in Lagos that the bidding process is now finished, with the final report submitted to the National Council of Privatisation (NCP), chaired by Nigeria's Vice President Kashim Shettima.
Source: Getty Images
FG wraps up bidding for power plant sales
Adelabu disclosed this while speaking at the BusinessDay conference titled "Powering Nigeria's Energy Future: Addressing Infrastructural Challenges for Sustainable Energy Development."
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
In January 2024, Legit.ng reported that the FG, through the Bureau of Public Enterprises (BPE), had decided to sell the power plants.
The federal government anticipates that the sale of these assets will attract interest from both local and international investors eager to participate in modernising and expanding Nigeria's energy infrastructure.
According to Leadership, it was reported in 2022 that the federal government and the governors of all 36 states reached an agreement to sell five power plants under the National Integrated Power Projects.
This agreement was achieved after more than two years of disputes and legal battles concerning the sale of the NIPP plants, which are managed by the Niger Delta Power Holding Company (NDPHC).
The five power plants up for sale are the 434-megawatt gas-fired Geregu II power plant in Kogi, the 451MW Omotosho II plant in Ondo, and the 750MW Olorunsogo II plant in Ogun State.
The 563MW Odukpami power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State are also included.
Adelabu mentioned that a comprehensive metering of all unmetered Band A electricity customers is in progress and is expected to be completed by the end of September.
Nigeria will benefit from sale of the plants
Reacting to the development, Wale Ogundeji, an energy analyst told Legit.ng that selling Nigeria's power plants to investors offers several benefits.
He said:
"It can attract substantial domestic and international investment, which is crucial for modernizing and expanding the nation's energy infrastructure. This influx of capital and expertise can enhance operational efficiency and reliability, leading to more consistent power supply.
"Additionally, privatization can foster competitive practices, drive innovation, and reduce costs. The funds generated from these sales can be reinvested into other critical sectors of the economy, promoting overall economic growth."
He added that the move can help meet Nigeria's population's growing energy demands and support sustainable development initiatives.
Band A electricity consumers to pay N337m
In related news, Legit.ng reported that 1.5 million electricity consumers categorised under Band A would have to cough out a considerable amount of money as bill.
This information is based on findings derived from an updated electricity tariff structure analysis.
Legit. ng's deeper analysis showed that DisCos' revenue generation can be calculated by multiplying the tariff rate of N225 per kilowatt hour by the 1.5 million electricity consumers.
PAY ATTENTION: Stay Informed and follow us on Google News!
Source: Legit.ng
