Nigeria to sell five power firms to fund 2023 budget

By Innocent Obasi

The Nigeria government has said five electricity-generation firms under the National Integrated Power Projects (NIPP) will be sold in the first quarter of 2023 to help fund next year’s budget.

Alex Okoh,  director-general of the Bureau of Public Enterprises, in an interview with newsmen in Abuja, said the government is likely to open bids for the asset in December and reach financial close by the end of March.

The generation companies scheduled for sale include Geregu power plant, a 562-megawatt facility in Calabar, Cross River State, and the Olorunsogo power plant in Ogun State.

The power assets scheduled for sale are part of the power projects that were shortlisted for privatisation in July.

Okoh also revealed that the United Bank for Africa (UBA) had secured a core investor to acquire 60 per cent stake in Abuja Electricity Distribution Company (AEDC), while efforts were ongoing to get competent investors to repossess the majority shares in other four Discos that were recently taken over by financial institutions

The announcement came six months after the federal government disclosed plans to restructure power distribution firms and privatise five energy projects.

Prior to this development,  the Nigeria Governors’ Forum (NGF), led by Governor Aminu Tambuwal of Sokoto State, rejected the sale of 10 power plants and sought a court order to stop the move of privatisation of the plants by the federal government.

Okoh,however, disclosed that the matter had been resolved, adding that proceeds from the assets would be used to fund the 2023 budget.

According to him, the expectation of BPE in the fiscal plan for 2023 is N260 billion and the key assets being considered are the power assets.

“And that is what has dragged this transaction for at least the past two years; just getting a common stakeholder understanding on the critical need to realise value from these assets now, before they depreciate beyond value.