The Federal government – through the Ministry of Power – has concluded plans to sell five power plants under the National Integrated Power Projects (NIPP) at a projected price of $1.15bllion.
The Minister of Power, Adebayo Adelabu, confirmed that the bidding process has been finalised and a final report submitted to the National Council of Privatisation (NCP), which has Vice President Kashim Shettima as chairman.
“A technical committee was set up headed by Babajide Sanwo-Olu, 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 said during BusinessDay’s energy event on Friday.
He noted there are a few teething problems, such as the bid quotes and payment mode of dollars and Naira and other issue,s which are already being resolved
“At the next NCP meeting, a final announcement of the preferred bidders will be made public; The assets will not only increase revenue for the three levels of government, but they will also bring better efficiency for the three levels of government,” Adelabu added.
Reports listed the five power plants to include the 434 megawatts Geregu II gas-fired in Kogi State, the 451MW Omotosho II plant in Ondo State, and the 750MW Olorunshogo II plant in Ogun State.
Others include the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.
The Benin-Ihovbor plant with five power-generating turbines would go for $420million; Calabar Odukpami plant with five turbines would be sold at about $260million; and the Geregu plant with four turbines would go for $215million.
Reports said the Omotosho plant, which has four power-generating turbines, would be sold for about $85million; while the Olorunsogo National Integrated Power Project (NIPP), which also has four turbines, would cost $170million.
Reports in December 2022 said the Federal government and the 36 State governors agreed to sell five power plants under the National Integrated Power Projects and use the proceeds to fund the 2023 budget.
The agreement came after over two years of disputes and legal tussles regarding the sale of the NIPP plants managed by the Niger Delta Power Holding Company (NDPH).
The former Director General of the Bureau of Public Enterprises, Alex Okoh, disclosed the agreement between the Federal government and the states as regards the NIPP plants to journalists in Abuja during an interview. The disclosure was, however, opposed by various groups.
There have been discussions and plans for the sale of the NIPPs by the Bureau of Public Enterprises for several years, with the specific details and target sale amount evolving over time.
In April 2021, the National Council on Privatisation approved the sale of five NIPPs through a fast-track strategy. The estimated value of these five plants was not publicly disclosed at the time.
In March 2022, the Nigerian National Petroleum Corporation expressed interest in acquiring some NIPPs, indicating continued progress with the sale.