2021 Budget: FG plans to sell three power plants for N434bn

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By Joseph Bamigboye

The Federal government has announced its plans to sell three power plants for N434billon.

The power plants proposed for sale are Geregu, Omotosho, Calabar power plants.

The arrangements by the Government are contained in a document submited by the Bureau of Public Enterprises (BPE) to the Senate during the 2021 budget defence in Abuja.

The government explained in the document that the proceeds from the three power plants will be paid into Niger Delta Power Holding Company (NDPHC)

According to the breakdown, Geregu power plant, which it was learnt was contructed at the cost $10 billion, would be sold for N140.7 billion, Omotosho Power Plant will go for M151.4 billion and  Calabar to be sold for N143.4 billion.

BPE has been summoned to appear before the Senator Theodore Orji, Peoples Democratic Party (PDP) Abia Central led Senate Committee on  Privatization and Commercialization to throw more light on the details and its revenue projection in 2021, which consists of sales of Power Plants and concession of government owned properties.

The Committee has also demanded an investigation into the sale of some of the federal government’s shares in the Afam and Geregu Power plants to ensure that the country is not short changed in the transaction.

The Senate Committee has also asked the Director General of BPE, Alex Okoh to provide members with copies of the agreements, reports and approvals from the National Council on Privatization over the transactions of the Afam and Geregu power plants for review.

Orji said: “We also found that in Geregu Power Plant, the core investor already owned 51% shares and that the transaction emanated from a request by the investor for additional 29% of FGN residual 49% shares.

“There was no competition and only BPE and their appointed transaction advisers know how the value was determined and sold for N13billion.

“Afam Power Plant it was mentioned that there are actually two (2) different Power Plants i.e Afam Power Plant and Afam fast power (a brand new plant) built by Seimen yet to be commissioned. Reports have it that it cost about $1million USD to build a Megawatt of Power Plant a megawatt of power plant.”