Federal Government’s efforts to improve power supply in the country received a boost following the recent announcement of bid winners for five electricity generation stations across the country. The stations were hitherto under the control of the behemoth, Power Holding Company of Nigeria (PHCN). They consist of three thermal stations and two hydro stations.
The bid winners in the sale supervised by the Bureau of Public Enterprises (BPE) are Transnational Corporation of Nigeria Plc, Amperion Consortium, CMEC/Eurafric Energy Consortium, Mainstream Energy Solutions Ltd, and North-South Power Company Ltd. The five preferred bidders are expected to pay N107 billion for the five electricity generation companies. Transcorp Plc won the bid for Ughelli Thermal Power Plant with an offer of $300 million, Geregu Power Plant went to Amperion Consortium for $132 million, while Sapele Thermal Plant went to CMEC/Eurafric for $201 million.
The preferred bidders for Kainji Hydro Plant and Shiroro Hydro Power Plant are Mainstream Energy Solutions Ltd and North-South Power Company Ltd., for $507.76m and $23.602 million, respectively. However, the investors’ bids can only be deemed consummated after they have fully paid up the sums within a specified period and the transactions are ratified by the National Council on Privatisation (NCP). We heartily welcome the sale and concession of the five power generation stations. It is a step in the right direction.
This is so because, for years, declining power supply has undermined economic development and quality of life of Nigerians. The problem has proved a hard nut to crack for successive governments in the country. Despite billions of dollars invested in the power sector since 1999, government has never come close to generating the needed megawatts it promised. Every glimmer of hope raised has fizzled out shortly after the promise was made.
Undoubtedly, the power sector has become the Achilles heel, and “sick baby” of government for many years now. This has forced many industries to close shop and relocate outside Nigerian shores. However, although the successful bidders reportedly have links with some prominent Nigerians, this concession should not be seen as political patronage. Electricity supply to the nation is too important to be trifled with. We believe that with the successful privatisation of PHCN and the emergence of new investors, the nation will witness a new dawn in the power sector.
There will, hopefully, be light at the end of the dark tunnel of inefficient power generation and distribution in the country. But, before this can become a reality, the preferred bidders must match their promise with the ability to pay the bidded sums. That is the first hurdle towards showing that their bidding is not a fluke. A similar exercise to unbundle PHCN in the past was stalled, and eventually failed, because the preferred winners suddenly developed cold feet and pulled out.
That should not be allowed to happen in the present exercise as we believe that jinx has finally been broken. The successful bidders should demonstrate commitment to ensuring that the reform in the power sector pays off. It is fair to think that the investors have done their homework and it would be a national embarrassment if they fail to deliver after the fanfare that attended their successful biddings. They need reminding that the power sector holds the key to Nigeria’s economic growth. It is a catalyst for development in other sectors of the economy.
In that regard, the successful bidders should be serious. Let them avoid extortionist tendencies in their operations. They should demonstrate zeal and efficiency in service delivery. Arbitrary increase in tariffs should be avoided. They should work hand-in-gloves with Nigerian Electricity Regulatory Commission (NERC) to ensure that the cost of electricity to consumers is affordable, and based on the Multi-Year Tariff Order (MYTO).
The preferred bidders must realise that to whom much is given, much is expected. They should rise to the challenge of generating sufficient electricity to ensure stable power supply in the country.
This seems ridiculous. Appealing to a capitalist investor to avoid tariff increase ? Arbitrary tariff increase or not, appeal do not influence a capitalist. What will drive tariff and performance in the upcoming power sector will be competition more so that demand will remain far above supply for many more years to come. Remember the new owners are not adding new megawatt but are only taking over existing infrastructure. The euphoria of Nigerians over the sale of PHCN public assets to few capitalist who have so far refused to add a single watt by building their own power station is disturbing and could be very disceptive. The Discos are even more different because there will never be competition and there will never be second chance for any customer. Here it is the transferof government monopoly to capitalist monopoly and the result will be as good as your guess can be. Nigerians should be told the truth. Very hard times lies ahead. Let’s pray nigerians are not driven to the wall with theconsequence of fighting back some how.
let us not rejoice over the sale of phcn until we see the seriouseness of the buyers. what happened to other government companies that have been sold is still fress. when finally they start, the regulatry agencies should watch this buyers to avoid high tariff and nigerians should watch the regulatry agencies on curruption.
We have waited for so long since it is the only solution to unemployment. Indeed the past Power Minister only came to prove to us that absence of light is due to human manipulation and not system failure, and no sooner he left the office than the energy issue became reverted to where it was. God save Nigeria.
The main reason why we are experiencing improved power supply in Nigeria is because the same power plant that we have invested huge billions of tax payers money to refurbish will be sold to the CABALS. Of course they will even lobby for the plants to receive the best lift so that when they eventually take pocession of our power plants they will concern themselves with tariff increment and bill collection..Look beyond the smoke Nigerians
Well done job MR. President. but there are more things to privatise, please bid prize for Aso rock, Aso drive, Aso villa, CAN, National mosque, National assembly, or even Bayelsa.
Wt re d bidders doing?wt z d stipulated time 4 dem? Pls let dem do quick
D companies incharge should please remember Ugwuoba town. D first town in Enugu state while entering from anambra state, after Amansea. D town has been suffering from scarcity of electricity 4 a lng tym nw, even d governor incharge cares nt 4 d progress of d town.
This is a welcome development. I hope its purpose would be lived out. I can’t wait to see the much anticipated ‘Industrial Revolution’ of Nigeria through stable and improved power generation and supply.
THE WHOLE EXERCISE IS A CHARADE. WHO VALUED OR BETTER STIL DEVALUED THE WHOLE POWER PLANTS TO ENABLE THEM BUY THEM AT A DASH? WHY ARE THEY STIL SPENDIND PEOPLES MONEY ON THE PLANTS ALREADY SOLD? HAS IT EVER HAPPENED ANYWHERE IN THE WORLD? NIGERIAN “LEADERS” INDEED. YES THEY MISMANAGED POWER TO GIVE PHCN STAFF BAD NAMES TO ENABLE THEM TAKE OVER. THOSE AT NIPP ARE IN THEIR MAJORITY PHCN STAFFs. YOU CAN NOW SEE THE SHAME OF THOSE IN POWER.
This exercise is a useless and convulted,this will not increase power generation in the country,this plan was developed by the World bank more than a decade ago,the same thieves that have plundered the power industry and the economy of the country are now in control of power generation,it is stupid has hell.
Why buy power plants that are comatose?no real business ppl will put their money in this,when you are going to spend 5 times that amount to refurbish it.
These power plants belong to the PEOPLE of this country,they should be under an AUTHORITY to run and operate ,not these uneducated thieves.What do they all know about power generation?
This country is full of stupid actions and the media will follow follow.
It is a welcome development……
Good luck to the winners of all the five power generation companies and good luck to all Nigerians as well.