Nigeria Concludes Sale of Five Power Plants for $1.15 Billion

By Iyojo Ameh

The Federal Government, through the Ministry of Power, has confirmed the sale of these power plants under the National Integrated Power Projects (NIPP) at a total cost of approximately $1.

Speaking at Business Day’s energy event, Adebayo Adelabu, the Minister of Power, revealed that a thorough bidding process had been concluded, with a final report submitted to the National Council of Privatisation (NCP), chaired by Nigeria’s Vice President, Kashim Shettima.

“A technical committee was set up headed by Babatunde Sanwolu, Governor of Lagos State, to oversee the process.

“The power plants were built with the Federation Account, which meant the power plants are jointly owned by the three levels of government.

Adelabu acknowledged some initial challenges in the process, including bid quotes and payment mode discrepancies, but assured that these issues were swiftly being addressed.

“At the next NCP meeting, a final announcement of the preferred bidders will be made public,”* he added. “The assets will not only increase revenue for the three levels of government but also bring better efficiency for all parties involved.”

The five power plants slated for sale include the 434 megawatts Geregu II gas-fired plant in Kogi, the 451MW Omotosho II plant in Ondo, and the 750MW Olorunshogo II plant in Ogun State. Additionally, the 563MW Odukpami plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State are also part of the sale.

According to the breakdown, the Benin-Ihovbor plant, equipped with five power-generating turbines, is set to be sold for $420 million, while the Calabar Odukpami plant, also featuring five turbines, is valued at approximately $260 million. The Geregu plant, housing four turbines, has an estimated price tag of $215 million.

Furthermore, the Omotosho plant, boasting four power-generating turbines, is slated for sale at around $85 million, while the Olorunsogo National Integrated Power Project (NIPP), also featuring four turbines, is priced at $170 million.

This development follows a series of discussions and plans for the sale of NIPPs by the Bureau of Public Enterprises (BPE) over the years. In December 2022, an agreement was reached between the Federal Government and state governors to sell the five NIPP plants, with the proceeds earmarked to fund the 2023 budget.

Alex Okoh, former Director-General of the BPE, had confirmed this agreement, despite opposition from various groups. The sale of these power plants represents a significant step forward in Nigeria’s ongoing efforts to revamp its power sector and meet the nation’s growing energy demands.