The Bureau of Public Enterprises (BPE), acting on behalf of the Federal Government, is in the process of selling five power plants under the National Integrated Power Projects (NIPPs) at an estimated cost of $1.15 billion. While sources suggest an international benchmark valuation exceeding $5 billion, the BPE plans to finalize the transaction at a slightly above $1.1 billion.
The power plants include Geregu II (434MW), Omotosho II (451MW), Olorunshogo II (750MW), Odukpami (563MW), and Benin-Ihovbor (451MW). Siemens turbines power these plants, each capable of generating about 115MW.
The ongoing transaction follows a December 2022 agreement between the Federal Government and state governors to sell NIPPs and use the proceeds for the 2023 budget. However, the sale has not been finalized, and the Niger Delta Power Holding Company, managing the NIPPs, has not confirmed the transaction.
The estimated sale amount in 2022 was projected to generate over N260 billion (approximately $600 million), though concerns were raised about its impact on budget deficits. As of now, the sale remains pending, with no official confirmation on the costs.
The complexities and uncertainties surrounding the NIPPs sale underscore the challenges in navigating energy privatization
