Energy companies and investors from around the world are to play a key role in Nigeria’s power sector after buying assets in a $1 billion sell-off of thermal and hydropower generating assets.
Nigeria’s National Council on Privatization has announced the winning bidders in the sale of five state-owned electricity plants, including a consortium comprising Nigeria’s Transcorp and US company Symbion Power, and another consisting of Forte Oil, Shanghai Municipal Electric Power Company and BSG Power.
The sale is part of a wider privatization programme that includes transmission and distribution assets, and is aimed at encouraging investment in Nigeria’s ailing power sector.
Eight firms prequalified to bid for the five generating companies. Eleven distribution companies will be sold later this year.
The winning bidders have six months to pay for the assets before the plants are handed over. The privatization of a sixth power plant – Afam – has been delayed.
Large parts of Nigeria suffer regular power blackouts because of a lack of generating capacity.
