Business
Nigeria names buyers of five state power plants
Power pylons in Nigeria. PHOTO/File
(Reuters) – Nigeria announced on Tuesday the preferred bidders for five state power generation plants, part of plans to privatize the country’s electricity sector to boost growth in Africa’s second largest economy.
Despite holding the world’s seventh largest gas reserves, Nigeria only produces around 4,000 megawatts (MW) of electricity for its 160 million people, less than a tenth of the amount South Africa provides for a population a third of the size.
In 2010, President Goodluck Jonathan announced plans to break up the state power company and sell it off as 11 distribution and six generation companies. He has promised a marked improvement in power output next year.
The highest bidders for the electricity distribution companies are due to be announced on October 16.
“This is a milestone in the power privatization process,” Minister of State for Power, Darius Ishaku, said at a ceremony announcing the winners for generation firms in Abuja.
“I’m sure each and every one of you would agree the process has been transparent,” he told a room of bidding firms.
A consortium including Nigerian firm Transcorp was the highest bidder for the Ughelli Power company, offering US$300 million, while Geregu Power plant was won with a bid of US$132 million by a group which includes Forte Oil, a firm majority-owned by Nigerian billionaire oil tycoon Femi Otedola.
