In ongoing developments, the Federal Government, through the Bureau of Public Enterprises (BPE), is in the process of selling five power plants under the National Integrated Power Projects (NIPPs) at an estimated cost of $1.15 billion. Despite sources indicating that the international benchmark values these plants at over $5 billion, the BPE plans to sell them at a slightly higher price of around $1.1 billion.
Acting Director-General of the BPE, Ignatius Ayewoh, confirmed the ongoing transaction, emphasizing that it has not been concluded. However, he did not disclose the specific cost of the five power plants, citing an ongoing meeting.
The identified power plants in question include the 434 MW Geregu II gas-fired power plant in Kogi, the 451 MW Omotosho II plant in Ondo, and the 750 MW Olorunshogo II plant in Ogun State. Additionally, the 563 MW Odukpami power plant in Calabar, Cross River State, and the 451 MW Benin-Ihovbor plant in Edo State are part of the proposed sale.
Insider information suggests that the Omotosho plant, equipped with four power-generating turbines, is slated to be sold at approximately $85 million, while the Olorunsogo NIPP, also featuring four turbines, is priced at $170 million.
The Benin-Ihovbor plant, boasting five power-generating turbines, carries a price tag of $420 million. The Calabar Odukpami plant with five turbines is estimated to be sold at around $260 million, and the Geregu plant with four turbines is set at $215 million.
These power plants utilize Siemens turbines, with each capable of generating approximately 115 MW of electricity, as per unnamed sources. While it’s noted that the cost of constructing a 1 MW power plant can vary, estimates suggest that, based on various technologies, the total value of the five NIPP plants could exceed $5 billion.
The sale of these power plants has been a subject of discussion for several years. In December 2022, the Federal Government and state governors reached an agreement to sell the NIPPs, with proceeds intended to fund the 2023 budget. The Niger Delta Power Holding Company manages these plants, and its confirmation of the sale is still pending.
It’s worth noting that while the former BPE boss projected the sale to generate over N260 billion (around $600 million), there has been no official confirmation on the cost of the NIPPs.
Speculations suggest initial estimates could have ranged from $300 million to $500 million for individual NIPPs. The sale, according to the acting DG of the BPE, is yet to be finalized.
