HomeBUSINESSFG  Plans to Auction  Five Power Plants for $1 Billion

FG  Plans to Auction  Five Power Plants for $1 Billion

The Federal Government is making power moves! Get ready for a shocking sale of five power plants under the National Integrated Power Projects worth a staggering 1.15bn! 

Sources reveal that this cost is significantly lower than the international benchmark of over 1.15bn! Sources reveal that this cost is significantly lower than the international benchmark of over 5bn! 

Ignatius Ayewoh, the acting Director-General of the Bureau of Public Enterprises, confirmed that the transaction is currently in progress, but it’s not yet concluded! While he couldn’t disclose the exact cost. 

Let’s introduce the stars of this electrifying show:  The gas-fired Geregu II power plant in Kogi (434MW), the Omotosho II plant in Ondo (451MW), the Olorunshogo II plant in Ogun (750MW), the Odukpami power plant in Calabar (563MW), and the Benin-Ihovbor plant in Edo (451MW)! 

You won’t believe the jaw-dropping price tags! Brace yourselves because the breathtaking Omotosho plant could be snatched for a mere 85m, while the magnificent Olorunsogo NIPP is priced at 85m,  while the magnificent Olorunsogo NIPP is priced at 170m! 

The incredible Benin-Ihovbor plant could be sold for 420m, the captivating Calabar Odukpami plant for 420m, the captivating Calabar Odukpami plant for260m, and the genius Geregu plant for $215m! 

 Each of these plants houses high-performance Siemens turbines, capable of generating a staggering 115MW of electricity! 

Now, the big question: why are these super-power plants being sold for such a bargain? Well, constructing a 1MW power plant on average would cost around 1m to 1 m to 2 m, depending on the technology used. So, if we do the math, these impressive NIPP plants could easily exceed a mind-blowing $5bn!

Let’s rewind a bit. Remember when we reported that the Federal Government and the 36 state governors finally agreed to sell these power plants to fund the 2023 budget? That was a major plot twist after years of disputes and legal battles! 

The Niger Delta Power Holding Company, responsible for managing the NIPPs, has remained tight-lipped about the sale, leaving us wondering about the final chapter in this electrifying saga! Will this sale bring the much-needed boost to the budget deficit, or will it fall short of expectations? 

Though whispers and rumours speculate the initial estimates ranged from 300m to 300m to 500m for each NIPP, one thing’s for sure—this shocking sale promises to reshape Nigeria’s power landscape! 

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