FG finalises bid process to sell 5 power plants for $1.15bn – Adelabu
The Federal Government of Nigeria, through the Ministry of Power, has concluded the sale of five power plants under the National Integrated Power Projects (NIPP) for approximately $1.15 billion.
Adebayo Adelabu, the Minister of Power, announced the finalisation of the bidding process and the submission of the final report to the National Council of Privatisation (NCP), chaired by Vice President Kashim Shettima.
A technical committee led by Lagos State Governor Babatunde Sanwo-Olu oversaw the process. The power plants, jointly owned by the federal, state, and local governments, were constructed with funds from the Federation Account.
Adelabu highlighted a few remaining issues, such as bid quotes and payment modes, which are being resolved.
The NCP will announce the preferred bidders in its next meeting. The sale is expected to enhance revenue and efficiency for all levels of government.
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Power Plants for Sale
1. Geregu II (Kogi) – 434 MW, $215 million
2. Omotosho II (Ondo) – 451 MW, $85 million
3. Olorunsogo II (Ogun) – 750 MW, $170 million
4. Odukpami (Cross River) – 563 MW, $260 million
5. Benin-Ihovbor (Edo) – 451 MW, $420 million
In December 2022, the federal government and state governors agreed to sell these plants to fund the 2023 budget, following years of disputes and legal issues.
Previous Developments
In April 2021, the NCP approved the sale of the five NIPPs. In March 2022, the Nigerian National Petroleum Corporation expressed interest in acquiring some plants. By December 2022, an agreement was confirmed by Alex Okoh, former Director-General of the Bureau of Public Enterprises.
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