FG Announces Plan to Sell Five Power Plants Located in Kogi, 4 Other States For $1Bn

FG Announces Plan to Sell Five Power Plants Located in Kogi, 4 Other States For $1Bn

  • The Bureau of Public Enterprises has announced its intention to sell five power plants under its National Integrated Power Projects
  • The sale is expected to add about $1.15 billion to the account of the Tinubu government when the deal is completed
  • The five power plants that the FG has put up for sale are located in Ogun State, Calabar, Benin, Edo State, and Kogi

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The Federal Government, through the Bureau of Public Enterprises (BPE), is looking at selling five power plants under its National Integrated Power Projects for N1.5 billion.

The federal government of Nigeria
FG looking to raise funds Photo credit: Presidency
Source: Getty Images

Ignatius Ayewoh, BPE's acting Director-General, confirmed an ongoing discussion to complete the sale.

Punch reports that Ayewoh noted that discussion on the transaction is ongoing, but it is yet to be concluded.

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The sale of these assets is expected to attract both domestic and international investors keen on contributing to the modernisation and expansion of Nigeria's energy infrastructure.

The five plants up for sale

The five power plants up for sale are the Geregu II power plant, located in Kogi, which has the capacity to generate 434 megawatts. Another plant for sale is the Olorunshogo II plant in Ogun State, which has a capacity of 451 megawatts.

Others include the 563MW Odukpami power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.

Details of the transaction

The report states that the Omotosho plant, equipped with four power-generating turbines, would be sold for approximately $85 million, while the Olorunsogo NIPP, also featuring four turbines, is priced at $170 million.

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The Benin-Ihovbor plant, boasting five power-generating turbines, is listed at $420 million.

The Calabar Odukpami plant, which has five turbines, is slated for sale at around $260 million, while the Geregu plant, featuring four turbines, carries a price tag of $215 million.

NERC dissolves Kaduna DisCo's board

In another development, Legit.ng reported that NERC dissolved the board of Kaduna DisCo over N110 billion debt.

According to the regulatory agency, dissolution came following the company's inability to meet its obligations, which amounted to N182.16 billion in the last four years.

NERC said in a 9-page order signed by its chairman, Sanusi Garba, and vice chairman, Musiliu Oseni, that the dissolution took effect from January 1, 2024.

The amount includes N51.9 billion market remittance shortfall, N25 billion minimum capital expenditure requirements, and N11.46 billion operations expenses requirement for 20

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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