Nigeria Power Plants Sale 'Still On'

A Nigerian parliamentarian has told NGW that three gas-fired power plants are still on course to be privatised.

Following earlier reports that the federal government plans to sell off some gas assets, Nigerian House of Representatives' Gas and Power committee member Garba Mohammed Gololo told NGW December 8 that the sale of gas-fired power plants is a valid agreement under the Niger Delta Power Holding Company (NDPHC). 

The federal government had given approvals to sell three power plants that were a part of the National Integrated Power Project (NIPPs), said Gololo, naming them as the 634-megawatt Calabar plant, the 1,076 MW Alaoji combined cycle (CCGT) plant, and 506 MW Geregu unit. 

"The initial plan, when NDPHC was conceived, was to sell the power plants and finance another project involving yet-to-be-executed solar projects," he told NGW.

NDPHC managing director Chiedu Ugbo told stakeholders at the 20th monthly power sector meeting in Owerri, Imo State, in October that the process of selling the three power plants had been in play since 2012, but that several issues ranging from the gas supply chain to completion of the power plants had delayed the process: "We have received approval to start with three: Calabar, Geregu and Alaoji. Discussions have advanced; except for market issues, liquidity problems, we would have closed by now. Once we get the necessary approvals we close the sale."

Nigeria's federal government in 2005 incorporated NDPHC as a limited liability company to serve as the legal vehicle to hold the NIPP assets using private sector-orientated best business practices.

In 2004, National Integrated Power Project (NIPP) was established to stabilise Nigeria's electricity supply system.