Nigeria News

NIGERIA: 30 foreign investors eye acquisition of 10 power plants

The Federal Government, Monday, said at least 30 investors have indicated interest in acquiring 10 power plants that it plans to sell.

Speaking in an interview, Mr. James Olotu, Chief Executive Officer, Niger Delta Power Holding Company of Nigeria, said the different organisations from all over the world were presently interested in the acquisition of the power companies.

Olotu said the Federal Government was considering selling off about 80 per cent of its shares in thermal power plants located across the country.

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

With combined installed capacity at more than 5,000 megawatts, they include the 850-megawatt Alaoji Generation Company near the southeastern city of Aba, the 754-megawatt Olorunsogo Generation Company in the southwest and the 634-megawatt Calabar Generation Company on the southeastern coast.

Nigeria sold as much as 60 percent stakes in 10 electricity distribution and five power generators that were part of the former state monopoly on February 22 under a plan to increase output with private investment.

Blackouts are a daily occurrence in Nigeria, where electricity demand is almost double the supply of about 5,000 megawatts.

According to the Bureau of Public Enterprises, BPE, buyers included Siemens AG (SIE), Korea Electric Power Corporation and Transnational Corporation of Nigeria Plc.

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