Nigerian government to sell off five power companies to fund 2023 budget
The Nigerian government has announced plans to sell some power generation companies in the country, six months after announcing the restructuring of power distribution companies and the privatization of five power projects.
The government said the sale will take place in the first quarter of 2023 and the proceeds will be used to fund the 2023 budget, Bloomberg reported Thursday.
President Muhammadu Buhari presented a record N20.5 trillion budget in October for next year, of which N10.78 trillion is not backed by revenue, leaving a budget deficit of 4.8% of GDP.
Gencos generating companies for sale are Geregu Power Station, a 562 megawatt facility in Calabar, Cross River State, and Olorunsogo Power Station.
Alex Okoh, chief executive of the Office of Public Enterprises, told Bloomberg on Thursday that bids for companies will open this month and close at the end of March.
The power plants are among the energy projects that were shortlisted for privatization in July.
Since the government transferred authority in 2013, private companies have struggled to provide electricity.
Nigeria's electricity system remained largely dysfunctional, generating and distributing an average of 4,000 megawatts to around 200 million people.
The government has urged the private sector to invest in electricity to end shortages.
Similarly, the National Council for Privatization (NCP) has approved a governance framework for the development of a $3 billion factory in Makurdi, Benue State.
The approval was given during the NCP meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa in Abuja.
This is the largest hydroelectric project in West Africa.
The development of the project is to adopt a public-private partnership model and the plant aims to produce 1,650 megawatts of electricity.
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The Nigerian government has announced plans to sell some power generation companies in the country, six months after announcing the restructuring of power distribution companies and the privatization of five power projects.
The government said the sale will take place in the first quarter of 2023 and the proceeds will be used to fund the 2023 budget, Bloomberg reported Thursday.
President Muhammadu Buhari presented a record N20.5 trillion budget in October for next year, of which N10.78 trillion is not backed by revenue, leaving a budget deficit of 4.8% of GDP.
Gencos generating companies for sale are Geregu Power Station, a 562 megawatt facility in Calabar, Cross River State, and Olorunsogo Power Station.
Alex Okoh, chief executive of the Office of Public Enterprises, told Bloomberg on Thursday that bids for companies will open this month and close at the end of March.
The power plants are among the energy projects that were shortlisted for privatization in July.
Since the government transferred authority in 2013, private companies have struggled to provide electricity.
Nigeria's electricity system remained largely dysfunctional, generating and distributing an average of 4,000 megawatts to around 200 million people.
The government has urged the private sector to invest in electricity to end shortages.
Similarly, the National Council for Privatization (NCP) has approved a governance framework for the development of a $3 billion factory in Makurdi, Benue State.
The approval was given during the NCP meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa in Abuja.
This is the largest hydroelectric project in West Africa.
The development of the project is to adopt a public-private partnership model and the plant aims to produce 1,650 megawatts of electricity.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism is very expensive. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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