Nigeria Government Move to Sell Benin Generation Company Ltd and four other Generating Companies

 The Nigerian government has announced its decision to sell five power generating companies.

Constructed under the National Integrated Power Project (NIPP), the sale of the companies will done through the Bureau of Public Enterprises (BPE), which handles the sale of public assets.

A document signed by the Director-General of the BPE, Alex Okoh, and made available to the media called for bids for the 100 percent shareholding of the government in any of the five companies.

According to the News Agency of Nigeria, the development is part of ongoing reform in the Nigerian Electricity Supply Industry and in line with the Nigerian Electric Power Policy and Electric Power Sector Reform (EPSR) Act, 2005.

The companies constructed under the NIPP are located in Edo, Kogi, Cross River, Ogun and Ondo states.

It was stated that the Board of Directors of the Niger Delta Power Holding Company (NDPHC) and the National Council on Privatisation had approved the sale of the companies but the amount expected from the sale was not stated.

The five power plants were identified as Geregu Generation Company Ltd with gross installed capacity at ISO condition of 506 Megawatts (MW), Benin (Ihovbor) Generation Company Ltd with 507 MW, Calabar Generation Ltd with 634MW, Omotosho Generation Ltd with 513MW and Olorunsogo Generation Company Ltd with 754MW.

The document said, “Each bidder must be an experienced power generation company that owns and/or operates utility size power plants.

“In case of a consortium, at least one of the consortium members must be an experienced power generation company (the “Technical Partner”).

“The technical partner shall be responsible for providing operation, maintenance and management services under a long term agreement.”

The federal government had in November 2021 said it hoped to realise N434 billion from the sale of three power plants in Geregu, Omotosho and Calabar, which it said would shore up the Federation Account.

According to the breakdown at the time, Geregu power plant was billed to be sold for N140.7 billion; Omotosho Power Plant was to be sold for N151.4 billion while Calabar plant would be available for sale for N143.4 billion.

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