Nigeria boosts energy sector with $1.15 billion sale of five key power plants

Adebayo Adelabu, the Minister of Power, recently announced the completion of the bidding process, with a final report submitted to the National Council of Privatisation (NCP) chaired by Nigeria's Vice President Kashim Shettima, is expected to make the final announcement of the preferred bidders at its next meeting.

“At the next NCP meeting, a final announcement of the preferred bidders will be made public. The assets will not only increase revenue for the three levels of government, it will also bring better efficiency for the power sector,” Adelabu is quoted by local media BusinessDay.

The five power plants included in the sale are:

• The 434 MW Geregu II gas-fired plant in Kogi State, northcentral Nigeria
• The 451 MW Omotosho II plant in Ondo State, southwestern Nigeria
• The 750 MW Olorunsogo II plant in Ogun State, also in southwestern Nigeria
• The 563 MW Odukpami power plant in Calabar, Cross River State, in the South-South geopolitical zone of Nigeria
• The 451 MW Benin-Ihovbor plant in Edo State, also in the South-South geopolitical zone of the country

The Benin-Ihovbor plant, featuring five power-generating turbines, is priced at $420 million. The Odukpami plant in Calabar, with five turbines, is valued at approximately $260 million. The Geregu plant, with four turbines, is set at $215 million. The Omotosho plant, also with four turbines, will be sold for about $85 million. Lastly, the Olorunsogo National Integrated Power Project (NIPP), with four turbines, is priced at $170 million, according to BusinessDay.

This sale is a key step towards addressing Nigeria's chronic power shortages. The West African nation's power sector faces numerous challenges that have hindered industrialisation and sustainable economic growth.

In 2022, the power grid reportedly collapsed at least four times. In 2023, it was reported that less than 50% of Nigeria's population had access to a regular power supply, forcing many homes and businesses to rely on generators and other alternative sources of electricity.