Nigeria power privatization attracts strong interest

• 11 years ago (2013-04-16)
• Junior Isles

Africa 320

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At least 30 investors have indicated interest in the 10 power plants put up for sale by the Nigerian government this week, according to officials.

Authorities are offering up to 80 per cent stakes in each of the 10 thermal power plants located across the country, James Olotu, chief executive officer of Niger Delta Power Holding Co, has said. “We have organizations showing interest from all parts of the world,” he confirmed.

Jointly owned by the federal, state and local governments, the power companies were set up from 2004 as a special intervention to boost gas-fired electricity output.

Plants on offer have a combined installed capacity of more than 5000 MW, including the 850 MW Alaoji Generation Co. near Aba, the 754 MW Olorunsogo Generation Co. in southwest Nigeria and the 634 MW Calabar Generation Co. on the coast.

Nigerian authorities previously sold 60 per cent stakes in 10 state owned electricity distributors and five power generators back in February in order to increase output through private investment.

Previous buyers included Siemens AG (SIE), Korea Electric Power Corp. and Transnational Corp. of Nigeria Plc, according to the Nigerian privatisation agency said.

Blackouts remain a daily occurrence in Africa’s top oil producing country, with electricity demand being almost double the 5000 MW generating capacity.