The Federal Government of Nigeria through the Bureau of Public Enterprises (BPE) is advancing with the sale of five power plants under the National Integrated Power Projects (NIPP) at a cost of about $1.15 billion.
While industry insiders suggest that the international benchmark for these facilities exceeds $5 billion, the BPE is reportedly aiming to conclude the transaction at a slightly above $1.1 billion.
The identified power plants involved in this initiative are the 434MW Geregu II in Kogi, the 451MW Omotosho II in Ondo, the 750MW Olorunshogo II in Ogun, the 563MW Odukpami in Cross River, and the 451MW Benin-Ihovbor in Edo.
These facilities are equipped with Siemens turbines capable of generating approximately 115MW each and form a crucial part of Nigeria’s power infrastructure.
While BPE Acting Director-General Ignatius Ayewoh confirmed the ongoing transaction, he refrained from disclosing specific financial details.
However, sources revealed individual cost estimates for the plants, with the Omotosho plant valued at around $85 million, Olorunsogo at $170 million, Benin-Ihovbor at $420 million, Odukpami at $260 million, and Geregu at $215 million.
This strategic move aligns with the federal government’s efforts to optimize assets, reduce financial burdens, and encourage efficiency within the power sector.
The sale of these power plants while addressing financial considerations, is expected to have far-reaching implications on Nigeria’s power landscape and the broader economy.