The Bureau of Public Enterprises (BPE) is actively engaged in the sale of five power plants under the National Integrated Power Projects, aiming to generate approximately $1.15 billion. Despite suggestions that the plants could be valued at over $5 billion internationally, the BPE plans to sell them at a slightly higher price.
Acting Director-General of BPE, Ignatius Ayewoh, confirmed the ongoing transaction but withheld specific details. The power plants in question include Geregu II, Omotosho II, Olorunshogo II, Odukpami, and Benin-Ihovbor, with varying capacities.
Sources reveal estimated sale prices for individual plants, ranging from $85 million to $420 million, depending on factors such as capacity and turbine specifications. These Siemens turbines, capable of generating approximately 115MW each, contribute to the overall valuation.
While the cost of constructing a 1MW power plant can vary based on factors like technology and location, insiders indicate that valuing the five NIPP plants at $1 million per MW would surpass $5 billion. The BPE aims to conclude the transaction, following a history of discussions and disputes dating back to 2021.
In December 2022, an agreement between the Federal Government and state governors paved the way for the sale of these NIPP plants, with proceeds intended for the 2023 budget. The sale’s specifics remain under scrutiny, with concerns raised about its impact on budget deficits.
As of now, the sale is yet to be finalized, and the Niger Delta Power Holding Company, responsible for managing the NIPPs, has not confirmed the transaction. Despite speculation about initial estimates ranging from $300 million to $500 million for individual NIPPs, official confirmation on the cost is pending.
