The Nigerian government has confirmed its plans to sell 10 gas-fired power plants throughout the country, as part of its effort to guarantee an effective and sustainable power supply for its residents.
Nigeria’s 10 power plants to be privatized are located in Abia State (450MW), Edo State (451MW), Cross River State (562MW), Imo State (338MW), Bayelsa State (225MW), Kogi State (434MW), Delta State (451MW), Ogun State (676MW), Rivers State (225MW) and Ondo State (451MW).
Niger Delta Power Holding Company (NDPHC) managing director and CEO James Abiodun Olutu said, "Eighty per cent of shares in the ten power plants are to be sold to investors providing an opportunity for growth as demand far outstrips current supply."
NDPHC is a private company fully subscribed by Federal, state and local governments with a mandate to manage the power projects.
The announcement was made at an investor relations event held in New York, US, to attract international investors.
Nigeria Power Minister Chinedu Nebo said the New York event is the last stage of the international investment drive for the divestment of government stakes in the generation assets of the NDPHC.
"Privatization of all public generation and distribution companies is one of the pillars of the efforts of the Federal Government of Nigeria (FGN) to reform the power sector," Nebo added.
In order to sell the power plants, the country has changed a number of policies and announced incentives such as tax holiday and exemptions, pioneer status, reparation of profits, research and development, as well as low value added tax.