Nigeria’s government says it plans to sell some of the country’s electricity generation companies, six months after announcing the restructuring of electricity 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 finance the 2023 budget, Bloomberg reported on Thursday.
President Muhammadu Buhari unveiled a record N20.5 trillion for next year in October backed by N10.78 trillion in revenue, leaving a budget deficit of 4.8 percent of GDP.
They are the founders of Gencos for sale Geregu power station562 megawatt facility in Calabar, Cross River State, and Olorunsogo power plant.
Alex Okoh, director general of the Office of Public Enterprises, told Bloomberg on Thursday that the companies’ bids will open this month and close at the end of March.
The plants are part of the electricity projects that were selected for privatization in July.
Since the government gave the power in 2013, privately owned businesses have struggled to supply electricity.
Nigeria’s electricity system has been largely dysfunctional, producing and distributing an average of 4,000 megawatts to about 200 million people.
READ ALSO: Nigerian governors, ministers disagree on power sector reforms
The government asked the private sector to invest in electricity to end the shortage.
In a similar development, the National Council on Privatization (NCP) has approved a government framework for the development of a $3 billion plant in Makurdi, Benue State.
The approval was given at the NCP meeting chaired by Vice President Yemi Osinbajo at the presidential villa, Abuja.
It is expected to be the largest hydroelectric project in West Africa.
The development of the project is to adopt the public-private partnership model and the plant aims to produce 1,650 megawatts of electricity.
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