Nigerian govt. to review power sector privatisation

Egbin power plant
Egbin power plant

The Nigerian government on Thursday gave an indication that it would soon review the privatisation of power plants in the country to enable government restructure their ownership and capacity to deliver value to the people.

President Muhammadu Buhari said at the closing of the 23rd Nigerian Economic Summit, NES in Abuja that the review would involve the restructuring of the ownership of the power plants to ensure that owners who do not demonstrate sufficient capacity to operate the facilities cede their stakes to new investors.

The President, who was represented by the Minister of State for Budget and National Planning, Zainab Ahmed, said this was to open up the sector for new investors to bring in fresh capital to make the plants more functional.

He said negotiations would commence with power generation companies, DISCOs where the country is having the most difficulties in ensuring adequate power supply.

At the opening session of the summit, the Vice President, Yemi Osinbajo, had rejected a proposal by one of the operators who urged the federal government to inject more money in the power plants sold to private investors.

Mr. Osinbajo said rather than give fresh funding, current owners of those companies who have no capacity to finance their operations should transfer their equity to fresh investors to help realize that objective.

The Chairman, Transcorp Ughelli Power Limited, Tony Elumelu, had urged the federal government to reconsider refinancing the electricity distribution companies, DISCos by acquiring fresh shares of the firms.

Mr. Elumelu had said injecting fresh capital would check the current situation where operators of these power plants were holding the government to ransom with endless demands.

More details later…


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  • SAGI

    DURING THE PIGS YEARS THEY WOULD HAVE THEIR WISH….I KNOW ALL HATERS WILL NOT BE HAPPY

    • Abdulmojeed Nojeemdeen

      Yeske,

  • Dele Awogbeoba

    Good response Mr Vice President. They are private concerns now. There will be now nationalisation of those companies. If they cannot perform then the shares of those companies should be sold at current values to new investors or they list on the NSE as a means of raising valued collateral.

    • Ashibogu

      Bros. nobody will buy those assets. Most o them are dead assets. The cost of replacing them is huge and Nigerians are not ready to pay the economic price that can fund such a replacement. It is the sad truth. Besides, the current government is not investor from friendly. Oyibos won’t tell you but the gist out there particularly in Europe is that Nigerians particularly its government don’t keep to agreements. There is enough money in the International Capital Market to turn around the fortunes of our power sector, sadly, many do not have faith in our country’s legal system to protect their investments. This explains the massive capital flight from our nation wen our President started painting a gloomy picture of our economy. If na you be Oyibo you go put your money for Nigeria? Not with all the roforofo fight currently going on in our Oil Industry.

      • Dele Awogbeoba

        Interesting view point.

      • Powerlessconscious

        But the oil company stay forever? Your analysis is wrong about current state of Nigeria.

        You guys only talk about money you do not talk about INSECURITY caused by militants for so long. Do you think you have to neglect that?

        The current Nigeria govt is more serious and faithful that the past ones especially in power sector. The past govt sold power plants to relations and integrity could not be ascertained coupled with gas pipe bombing. The two factors impact the power sector.

        What the govt can do is to review the privatisation. There are thousands of investors out there both in and outside Nigeria. If Niger militant make peace to allow supply of gas, Nigeria power sector will bounce with faithful investors. No peace in Niger delta, no amount of capital can solve Nigeria power. No amount of CAPITAL.

    • daniel Ekhime

      @deleawogbeoba:disqus

      HOW ABOUT YEMI OSINBAJO NOW SAYING FEW HOURS AGO THAT WHAT HE APPROVED WAS LOAN;

      AND NOT CONTRACT, AS IF ALHAJI BARU CAN personally APPROVE 640 BILLION NAIRA LOAN REQUEST.

      • Dele Awogbeoba

        That changes the analysis significantly. Please post the link to the website for me.

  • Forensico

    @deleawogbeoba:disqus

    Simple question for BUHARI government

    If Alhaji Baru were not a dyed-in-the-wool crook beyond redemption he would apologize for insulting Nigerians
    last week when he said that the contracts as a whole could not be quantified in monetary terms. That was the
    most illiterate statement ever made in Nigeria by a government official. The same NNPC, which Alhaju Baru
    heads, later issued a press statement from its public affairs division yesterday that two of the contracts
    were worth 640 billion Naira which Yemi Osinbajo signed and admitted to have signed (irregularly).

    How did the Public Affairs division of NNPC know the monetary value of each of two
    contracts involved whilst the GMD Alhaji Baru; as GMD of NNPC, did not know any
    value of any of the contracts totaling $25 billion?

    First of all, it means taking just those two contracts alone Alhaji Baru, who is GMD of NNPC, has presumptively
    committed a financial crime by singularly approving 640 billion contracts without recourse to the Board of Directors
    and without recourse to the supervising Minister.That financial crime is a felony under Nigerian law. Alhaji Baru is a
    sitting duck on the facts as they stand today. There will be a lot more to be uncovered; including naming the person
    who signed the remainder $23 billion NNPC contracts, since Yemi Osinbajo admitted to signing only $2billion out of it.

    • Abdulmojeed Nojeemdeen

      Haters will continue to be losers

    • Tola

      You people jump to conclusions without studying the issues. The crude lifting contract is pre-qualification of those to lift crude for the year. The price and value is variable based on platt quotation of Nig crude grades when lifted. It could be at $60/bbl or $30/bbl depending on the market. And it depends on volume lifted by each trader. Once the broad terms have been approved I don’t see the fuse. It is like NBL appointing distributors, once the broad guidelines are approved, no need for recourse each time. That is why government should get off this nnpc. Price is by platt, no credit, bank guarantees from international fin institutions, so no financial exposure what is the fuse about?

      • Akiika

        You just assumed this person will understand your explanation, they don’t care about the real issue, their only job is to twist issue to fit their emotional bias. His/her comment reeks of stark ignorance.

        • Tola

          Thanks. Just for others who care about the issues.

  • Fidelis Obahamor

    @deleawogbeoba:disqus

    PLEASE I WANT THE FEDERAL GOVERNMENT TO CHANGE. We all wanted change when we voted in 2015.
    We are now regretting that we voted for the wrong people. After we made the mistake of our life by voting for
    Muhamadu Buhari as president it has been sorrows tears and blood as our regular trade mark in Nigeria now.
    We want to change from Buhari to another government that will not steal, like stealing $25 billion from NNPC.
    We don’t want any government where the president and the vice president are both criminals and thieves too.

    • Abdulmojeed Nojeemdeen

      “We” you must be broke,because it is no longer business as usual. No more ipod,iPad,ipob or iPork.

      • blueeyedkitten

        you got me rolling on the floor with laughter…lol

        • Abdulmojeed Nojeemdeen

          Keep rolling, dude.

  • kinsly

    The Almighty criminal Jonathan’s Govt gave billions of Naira to the DISCO’s that was sold by thesame JONA govt yet no improvement. They sold our national assets to cronies, crooks, family and political friends, gave out our tax payers money as loans and grants yet all we have are darkness and more cry for funding. Kudos to Buhari and Osinbajo. If they can’t run the business they should selling and disappear.

  • Ashibogu

    Where will Government get funds to acquire fresh shares in the discos? From Ukraine or Uzbekistan? The Federal Government that is flat broke! Tony Elumelu! What it can do is to convert loans already given to the discos as shares, add same to its existing shares and sell to private investors. Unfortunately, I do not see any genuine investor coming to buy such shares as they believe we are not honest in keeping to contracts. Look at the way they bullied MTN. Only yesterday, Intels Pilotage contract for Eastern Ports was terminated, not for non performance but for flimsy reasons. As long as this trend continues we will continue to attract fly by night investors from Tahiti, Fiji, Western Samoa and Tajikistan.

    • princegab

      These so called leaders are not serious bro. Waych them finish their 4 yrs a get put of our ways. Too corrupt to continue

  • thusspokez

    At the opening session of the summit, the Vice President, Yemi Osinbajo, had rejected a proposal by one of the operators who urged the federal government to inject more money in the power plants sold to private investors.

    Like Dangote, they too want federal government handouts!

  • Eyo

    This is long overdue. surely Nigeria will get out of the woods. Thank you Mr President and VP. The criminals gangs can’t their cake and have it. God go punish una for putting Nigeria in darkness

  • arewethishopeless

    Please also check on way forward on TCN. They seem to be part of the problem …