July 21, 2024

Nigerian Govt. places NIPP, hydro plants for sale, sets to use proceeds to finance 2023 budget

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Oredola Adeola

The Nigerian Government is planning to raise N206.18 billion through the sales of some national power assets including all the gas-fired plants under the National Integrated Power Project (NIPP), Zungeru Hydro plant, 12 other small hydro-plants and other key national assets, spread across the country to finance the 2023 proposed budget deficit of N10.78 trillion.

This was confirmed by President Muhammadu Buhari, when he presented the Appropriation Bill of N20.51 trillion for 2023 to the Senate and the House of Representatives at a joint session of the National Assembly on Friday.

According to him the budget deficit of N10.78 trillion would be funded by borrowing, sales of national assets and project-specific loans.

EnergyDay however gathered Bureau of Public Enterprises (BPE) had in February, 2022, Olorunsogo II Power Plant among and 10 other energy firms as part of the 42 concessionary transactions to be undertaken before the end of the year.

The National Council on Privatisation (NCP), had also approved the Bureau’s 2022 work plan for tracking the implementation and realisation of the sales of the national assets.

The key national assets being considered by the President and the BPE, based on EnergyDay’s check includes eleven power plants,10 in industries and services assets, eight in the agriculture and natural services sector assets and 13 Infrastructure and Public Private Partnership (IPPP).

Some of the projects captured in the BPE’s work plan are Olorunsogo II Power Plant (NIPP); Calabar II power plant (NIPP); Benin (Ihovbor) II Power Plant (NIPP); Omotosho II Power Plant (NIPP); Geregu II Power Plant (NIPP); Afam Power And Afam Three Fast Power Ltd.

Others are Yola Electricity Distribution Company and Zungeru Hydro Power. Meanwhile, 16 private companies have already  been pre-qualified to acquire 5 power plants  under the National Integrated Power Project (NIPP) of the Niger Delta Power Holding Company.

There is however, no clarity on the actual cost of each of the assets being considered for sale.

EnergyDay’s check showed that some of the assets are expected to be sold through a ‘core investor sale’ approach. This involves the sale of at least 51 per cent of the shares of an entity, while other transactions would take the form of asset sales or commercialisation and concession.

Further findings showed that the BPE is also giving consideration for the concession of 12 small hydro plants including eight green-fields and four brown-fields located in Adamawa, Benue, Kogi, Ogun, Taraba states, as well as the Federal Capital Territory.

The small hydro plants are Gimi Earth Hydro Power Plant; Lower Usuma Hydro Power Plant; Oyan Hydro Power Plant; Markurdi Hydro Power Plant Hydro Power Plants Assets for Concession Oguma Hydro Power Plant (700mw) Onitsha Hydro Power Plant (441mw) Dasin Hausa Hydro Power Plant (138mw) Katsina-Ala Hydro Power Plant (109mw) Garin Dalli Hydro Power Plant (92mw) Kiri Hydro Power Plant (36m).

 

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