June 7, 2024.
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The Federal Government of Nigeria, through the Ministry of Power, has finalized the sale of five power plants for approximately $1.15 billion under the National Integrated Power Projects. The bidding process has been completed, and a final report has been submitted to the National Council of Privatisation (NCP), chaired by Vice President Kashim Shettima.
Minister of Power Adebayo Adelabu announced the development at a BusinessDay energy event, noting the setup of a technical committee led by Lagos State Governor Babatunde Sanwolu to oversee the process. These power plants, funded by the Federation Account, are co-owned by federal, state, and local governments.
Adelabu mentioned a few issues such as bid quotes and payment methods, which are being resolved. The final announcement of the preferred bidders will be made at the next NCP meeting. The sale aims to increase government revenue and improve efficiency in power management.
The five power plants include:
– 434 MW Geregu II gas-fired plant in Kogi State
– 451 MW Omotosho II plant in Ondo State
– 750 MW Olorunsogo II plant in Ogun State
– 563 MW Odukpami plant in Calabar, Cross River State
– 451 MW Benin-Ihovbor plant in Edo State
Specific sale prices for the plants are:
– Benin-Ihovbor: $420 million
– Calabar Odukpami: $260 million
– Geregu: $215 million
– Omotosho: $85 million
– Olorunsogo: $170 million
The sale follows a December 2022 agreement between the federal and state governments to fund the 2023 budget through the proceeds. The decision concludes years of disputes and legal challenges regarding the sale of the NIPP plants managed by the Niger Delta Power Holding Company (NDPH).
Former Director General of the Bureau of Public Enterprises Alex Okoh confirmed the agreement in late 2022, despite opposition from various groups. The privatisation of these plants has been a long-standing issue, with plans evolving over several years.(www.naija247news.com).
