The Bureau of Public Enterprises is currently in the process of conducting transactions for the sale of five power plants under the National Integrated Power Projects, with an estimated total cost of about $1.15 billion, according to sources.
Although international benchmarks suggest a valuation exceeding $5 billion, the BPE is planning to sell the facilities for slightly above $1.1 billion.
According to The Punch, the acting Director-General of BPE, Ignatius Ayewoh, confirmed the ongoing nature of the transactions but emphasized that they have not been concluded.
The five power plants involved in the sale are the 434MW Geregu II power plant in Kogi, 451MW Omotosho II plant in Ondo, 750MW Olorunshogo II plant in Ogun State, 563MW Odukpami power plant in Calabar, Cross River State, and 451MW Benin-Ihovbor plant in Edo State.
Sources at the BPE disclosed anticipated sale prices for some of the plants, with the Omotosho plant expected to be sold at about $85 million, Olorunsogo NIPP at $170 million, Benin-Ihovbor at $420 million, Calabar Odukpami at approximately $260 million, and Geregu at $215 million.
The plants are equipped with Siemens turbines, each capable of generating around 115MW of electricity.
While the industry norm indicates that it costs approximately $1 million to construct a 1MW power plant, variations exist based on factors such as technology, location, and type of power plant. If valued based on the construction cost per MW, the five NIPP plants could potentially be worth over $5 billion.
The decision to sell the power plants was reached in December 2022, with the Federal Government and state governors agreeing to utilize the proceeds to fund the 2023 budget.
The sale, managed by the BPE, has been under discussion and planning for several years, with changing details and target sale amounts. The Nigerian National Petroleum Corporation has also expressed interest in acquiring some NIPPs, indicating ongoing progress with the sale.
While former BPE Director-General Alex Okoh projected the sale to generate over N260 billion , there is currently no official confirmation on the sale’s finalization or the cost of the NIPPs. Various sources speculate that the initial estimates for individual NIPPs could have ranged from $300 million to $500 million.
In response to queries, Ignatius Ayewoh, the acting Director-General of BPE, stated, “The transaction is ongoing. It is not concluded.” However, Ayewoh did not disclose the specific cost for the five power plants, citing an ongoing meeting and an inability to provide additional details.
