In a significant move, the Federal Government of Nigeria has revealed plans to auction off five power plants under the National Integrated Power Projects for approximately $1.15 billion. This development was confirmed by Ignatius Ayewoh, the Director-General of the Bureau of Public Enterprises (BPE). Ayewoh emphasized that while the transaction is ongoing, it has not reached its conclusion, withholding specific details at this stage.
Sources familiar with the matter have indicated that the value of these power plants could surpass $5 billion when measured against international standards. However, the BPE intends to pursue the sale of these facilities slightly above the $1.1 billion mark.
The five power plants set for sale are the 434-megawatt gas-fired Geregu II power plant located in Kogi; the 451-megawatt Omotosho II plant in Ondo; and the 750-megawatt Olorunshogo II plant in Ogun State. Additionally, the 563-megawatt Odukpani power plant in Calabar, Cross River State, and the 451-megawatt Benin-Ihovbor plant in Edo State are also included in this sale.
Insights into the pricing reveal that the Omotosho plant, equipped with four power-generating turbines, is estimated to be auctioned for approximately $85 million. Meanwhile, the Olorunsogo NIPP, also featuring four turbines, is anticipated to fetch around $170 million. The Benin-Ihovbor plant, boasting five power-generating turbines, carries an expected price tag of $420 million. Similarly, the Calabar Odukpami plant, equipped with five turbines, is projected to be sold for about $260 million. Lastly, the Geregu plant, furnished with four turbines, is estimated to be priced at $215 million.
This bold move by the Nigerian government is poised to have ripple effects, influencing the country’s energy landscape and potentially attracting interest from global stakeholders monitoring the power sector. As developments unfold, the international community will be closely tracking this high-stakes auction, poised to impact Nigeria’s power infrastructure and investment opportunities.
