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Federal Government to Sell Five Power Plants for an Estimated $1 Billion to Fund the 2023 Budget

The Federal Government of Nigeria is in the process of selling five power plants under the National Integrated Power Projects (NIPPs), according to the Bureau of Public Enterprises (BPE). The estimated value of the sale is around $1.15 billion.

The power plants up for sale include the following:

  • 434 MW Geregu II gas-fired power plant in Kogi State
  • 451 MW Omotosho II power plant in Ondo State
  • 750 MW Olorunshogo II power plant in Ogun State
  • 563 MW Odukpami power plant in Cross River State
  • 451 MW Benin-Ihovbor power plant in Edo State

These plants have advanced Siemens turbines, with each turbine capable of generating around 115 MW of electricity.

Ignatius Ayewoh, Acting Director-General of the BPE, confirmed that the privatisation transaction is ongoing but did not disclose further details like the valuation and timeline.

According to sources familiar with the power sector benchmarks, the total value of the five plants could exceed $5 billion based on international standards of $1–2 million per 1 MW of generation capacity.

However, the agreed tentative valuation is around $1.15 billion, with the following breakdown:

  • Omotosho Plant: $85 million
  • Olorunsogo Plant: $170 million
  • Benin-Ihovbor Plant: $420 million
  • Odukpami Plant: $260 million
  • Geregu Plant: $215 million

The privatisation deal aims to support Nigeria’s 2023 budget of over N21 trillion amidst revenue shortfalls and rising deficits. Both the Federal Government and State Governors agreed to the sale of the NIPPs in December 2022.

The finalisation of the deal is still pending. The Niger Delta Power Holding Company (NDPHC), which oversees the NIPPs, has yet to confirm the divestment. Concerns remain around the valuation and whether it would significantly impact Nigeria’s fiscal revenues.

As the government continues to push ahead with the privatisation, industry analysts reiterate that more transparent benchmarks and an optimal sale strategy focused on capable private sector partners could unlock greater value and efficiency gains from these plants.


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