The Federal Government and the 36 state governors have finally agreed to sell five power plants under the National Integrated Power Projects and use the proceeds to fund the 2023 budget.
Parties in the deal reached the agreement last week after over two years of disputes and legal tussle as regards the sale of the NIPP plants being managed by the Niger Delta Power Holding Company.
The NDPHC, owned by the federal, state, and local government councils, is a power generation and distribution company that oversees the implementation of the NIPPs.
The Director-General, Bureau of Public Enterprises, Alex Okoh, disclosed this in an interview with select journalists in Abuja on Tuesday
He also revealed that the United Bank for Africa had secured a core investor to acquire 60 per cent stake in Abuja Electricity Distribution Company, while efforts were ongoing to get competent investors to repossess the majority shares in other four Discos that were recently taken over by financial institutions.
The BPE boss, who further hinted that the Federal Government was trying to restructure Nigeria’s healthcare delivery after the United Kingdom system, stated that there had been progress with the proposed sale of five NIPP power plants.
The BPE boss had announced this in Abuja at the Investor Pre-bid Conference for the privatisation of the five plants and gave the names of 16 pre-qualified bidding firms.
But last month, the Nigeria Governors’ Forum, through their Chairman, Governor Aminu Tambuwal of Sokoto State, rejected the sale of 10 power plants and headed to court to stop the move of privatisation of the plants by the Federal Government.
The NGF disclosed that its lawyers had moved to prevent the regime of the President, Major General Muhammadu Buhari (retd.), from selling the power plants.
Reacting to this on Tuesday, the BPE stated that the matter was resolved last week, as proceeds from the assets would be used to fund the 2023 budget.
Okoh said, “The expectation (of BPE) in the fiscal plan for 2023 is N260bn and the key assets that we are looking at are the power assets. Five of the NIPP plants; incidentally we are reaching some understanding with the state governors for the sale of those five power plants.