Economy

Nigerian Governors Forum Rejects Sale of 10 Power Plants by FG, Considers Legal Action

The 36 state governors in Nigeria under the aegis of the Nigerian Governors Forum (NGF) have announced their rejection of the sale of 10 power plants in the country.

The governors who issued a communique noted that they going to file a lawsuit against the federal government to stop the privatisation.

According to the communique which was signed by the chairman of the Nigerian Governors Forum, Aminu Tambuwal, the forum has ordered its lawyers to approach the federal high court to stop the privatisation. 

They argued that the power plants which are under the National Integrated Power Projects (NIPPs) and managed by the Niger Delta Power Holding Company (NDPHC) are owned by the three tiers of government. That is the federal, state governments, and local government councils.

Investors King could recall that in 2021, the National Council on Privatisation (NCP) approved the adoption of a fast-track strategy for the privatisation of five major power plants. The power plants include Geregu II in Kogi State, Omotosho II in Ondo State, Ihovbor in Edo State, Olorunsogo II in Ogun State, and Calabar power plants.

Other power-generating companies lined up for privatisation include Omoku Generation Company, Ogorode Generation Company, Gbarain Generation Company, Alaoji Generation Company, and Egebma Generation Company.

Although the House of Representatives had also objected to the privatisation, the Bureau of Public Enterprises (BPE) nonetheless announced that it has commenced due diligence assessment of the 16 pre-qualified investors shortlisted for the acquisition of the plants. A development that is in contrast to the position of the state governors. 

Meanwhile, the governors’ forum also noted that it is working with the federal government to address the issue of flooding which has ravaged many homes and farmlands across the country. 

The forum stated that all the affected states are collaborating with the Ministry of Agriculture and Rural Development, Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, National Emergency Management Agency, the CBN, and the World Bank to ensure emergency interventions to ameliorate the adverse impact of the devastating flood. 

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