NDPHC Resumes NIPP GENCO Privatisation Process

The Federal Government of Nigeria (FGN) recently announced that it will be recommencing the process for the privatization of three electricity generation assets, viz:
(i) a 634MW gas plant located in Calabar, Cross River State;
(ii) a 1,076MW combined cycle power plant, near Abia State; and
(iii) a 506MW gas power plant located in Ajaokuta, Kogi State.

These power plants form part of the ten (10) gas-propelled power generating plants wholly owned by the NigerDelta Power Holding Company (NDPHC) through separate generation companies (Gencos) under the FGN’s National Integrated Power Projects (NIPP).

The Bureau of Public Enterprises(BPE) and the NDPHC had embarked on the privatisation process for the NIPP assets in 2013. At the time, the NIPP privatisation effort process was billed to one of the largest electricity assets sales in history, with 80% equity interests in each of the Gencos to be sold to core investors and 20% retained by NDPHC.

However, the process stalled due to a number of structural and socio-political issues, including transmission problems and gas supply challenges.

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