Nigeria is on the verge of selling five major power plants for a total of $1.15 billion. This marks a significant move in the government’s efforts to revamp the energy sector, enhance efficiency, and attract private investments. In fact, this sale is a crucial milestone in tackling the country’s persistent power shortages and promoting economic development.
The National Council of Privatisation (NCP), led by Kashim Shettima, Nigeria’s vice president, has submitted a comprehensive report. Since the bidding process is over, the NCP will disclose the names of the selected bidders during the upcoming meeting.
The five power plants up for sale include the Geregu II gas-fired plant in Kogi with a capacity of 434 megawatts, the Omotosho II plant in Ondo generating 451 MW, and the Olorunsogo II plant in Ogun State producing 750 MW. Additionally, the Odukpami power plant in Calabar, Cross River State, with a capacity of 563 MW, and the Benin-Ihovbor plant in Edo State, generating 451 MW, are part of the sale.
Specifically, the Benin-Ihovbor plant, with its five power-generating turbines, is priced at $420 million. The Calabar Odukpami plant with five turbines is on the market for around $260 million. The Geregu plant with four turbines is going for $215 million.
In addition, the Omotosho plant with four power-generating turbines is on sale for approximately $85 million. Finally, the Olorunsogo National Integrated Power Project (NIPP) with four turbines is listed at $170 million.
After more than two years of dispute and legal battles, the parties are now reaching this agreement. In March of 2022, the Nigerian National Petroleum Corporation showed interest in purchasing a few NIPPs. In December 2022, Alex Okoh confirmed a deal between Nigeria’s Federal Government and states for the sale of five NIPPs.
