The long-awaited privatization of Nigeria’s power sector took a significant step forward yesterday as the National Council on Privatization (NCP) held the financial bid opening for 10 power plants under the National Integrated Power Project (NIPP).
Presiding over the session in Abuja, NCP’s Technical Committee Chairman, Mr. Peterside Atedo, announced the preferred bidders for each of the power plants, marking a crucial milestone in Nigeria’s power sector reform. The NIPP plants, jointly owned by the federal, state, and local governments through the Niger Delta Power Holding Company (NDPHC), saw competitive bidding from various consortia.
The Winning Bids and Their Implications
Among the 10 power plants, AITEO Consortium emerged as the preferred bidder for Alaoji Generation Company Limited with a winning bid of $902 million. The company had initially offered $680 million, which fell below the reserve price, but upon being given a second chance, it revised its bid upward to secure the asset.
For Benin Generation Company Limited, EMA Consortium outbid Index Consortium with an offer of $580 million, surpassing Index Consortium’s $575 million bid.
EMA Consortium also secured Calabar Generation Company Limited with $625 million, narrowly defeating Nebula Power Generation Consortium, which bid $623,750,000.
In the case of Egbema Generation Company Limited, Dozzy Integrated Power Limited won with a bid of $415,075,000, while AITEO Consortium, the reserved bidder, placed a bid of $392 million.
For Gbarain Generation Company Limited, KDI Energy Resources emerged victorious with $340 million, while Azikel Power Limited came in as the reserved bidder with a bid of $305 million.
Seoul Electric Power Limited secured Geregu Generation Company Limited with $690 million, beating out Yellow Stone, which placed a bid of $613 million as the reserved bidder.
Ogorode Generation Company Limited went to Daniel Power Consortium, which outpaced three other bidders with an offer of $531,777,777.
For Olorunsogo Generation Company Limited, ENL Consortium Limited emerged as the preferred bidder, putting forward $751,240,000, while Index Consortium came in as the reserved bidder with $730 million. AITEO Consortium, which had initially shown interest, withdrew from the bid, thereby forfeiting its chances and entry funds.
Shayobe International Consortium won Omoku Generation Company Limited with $318,710,840, narrowly surpassing AITEO Consortium’s $312,500,000 bid.
Finally, Omotosho Generation Company Limited saw one of the closest contests, with Omotosho Electric Power Limited securing the plant with a bid of $659,999,000. Interestingly, ENL Consortium, the reserved bidder, also placed a matching bid of $659,999,000.
Government Assurances and Sectoral Impact
The Minister of State for Power, Alhaji Mohammed Wakil, reaffirmed the government’s commitment to providing the necessary support to ensure the success of the power sector privatization.
Speaking on the outcome, the Managing Director of NDPHC, Mr. James Olotu, emphasized that the privatization of these power plants was geared toward improving electricity supply for Nigerians, stimulating economic growth, and reducing the hardship faced by citizens due to unreliable power.
With these developments, stakeholders remain hopeful that private sector involvement will drive much-needed efficiency, expand generation capacity, and contribute to Nigeria’s long-term energy security.
