The National Council on Privatisation (NCP) has approved Transcorp Power Consortium as the preferred bidder for Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited) with a winning bid of N105.3 billion ($343.6 million). This bid surpasses the $265 million offer made during the 2013 privatization round, demonstrating renewed investor confidence in Nigeria’s power sector.
The Bureau of Public Enterprises (BPE) confirmed the development in a statement issued by Amina Othman, Head of Public Communications. The Council, chaired by Vice President Yemi Osinbajo, made the decision during its second NCP meeting of 2019 at the Presidential Villa, Aso Rock, Abuja.
The Diamond Stripes Consortium was named as the reserve bidder, offering N102.3 billion ($333.7 million). Meanwhile, the NCP also approved Quest Electricity Nigeria Limited as the preferred bidder for the reprivatised Yola Electricity Distribution Company (YEDC) with a N19 billion ($62 million) bid, which exceeded the $59 million paid by the previous core investor in 2013.
Transcorp to Invest $350 Million in Afam Power
Following the approval, Transcorp Power Consortium has committed to investing $350 million over the next five years to enhance the power plant’s operations. This investment is expected to drive efficiency, improve power generation, and strengthen Nigeria’s energy sector.
The approval follows the NCP’s first meeting of 2019, where Diamond Stripes Consortium, Transcorp Power Consortium, and Unicorn Consortium were given the green light to proceed to the financial bid opening stage after meeting the benchmark score of 750 points set in the Requests for Proposal (RfP). Quest Electricity Nigeria Limited was similarly approved to proceed with the financial bid process for YEDC.
Afam Power’s Privatization: A Second Attempt After Taleveras’ Failed Bid
The Afam Electricity Generation Company was originally part of the 2013 power sector privatization, but the sale to Taleveras Group fell through due to gas supply challenges.
In 2016, the Federal Government terminated the Share Purchase Agreement (SPA) with Taleveras, after which the NCP, in 2017, approved a new privatization strategy for the power plant. The successful completion of this new transaction marks a critical step in Nigeria’s ongoing power sector reforms.
Yola DisCo Reprivatization Following 2015 Force Majeure
Unlike Afam Power, the Yola Electricity Distribution Company (YEDC) was successfully privatized in 2013 but was later repossessed by the Federal Government in 2015. The core investor had declared force majeure, citing security challenges in the Northeast region.
The new privatisation process ensures that the winning bidders will now be responsible for:
• Operating the generation and distribution companies efficiently
• Making necessary infrastructure investments
• Enhancing customer service and supply reliability
These moves align with the Federal Government’s National Electric Power Policy, which aims to drive private sector participation and improve Nigeria’s electricity supply.
With Transcorp Power Consortium now set to take over Afam Power, and Quest Electricity Nigeria Limited taking over YEDC, the coming years will determine whether these investments can finally deliver the much-needed turnaround in Nigeria’s electricity sector.
