Wednesday, Nov 25th 2020 10:08 AM
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Market Digest Nigeria

Economy

Nigerian govt to sign agreement for sale of N105bn Afam Power asset today

The Nigerian government will today (Thursday) complete the sale agreement process of state-owned Afam Power Plant to the Transcorp Power Consortium, a deal valued at N105 billion.

Alex Okoh, the director-general of the Bureau of Public Enterprises BPEO

Alex Okoh, the director-general of the Bureau of Public Enterprises BPE0, told reporters in Abuja on Wednesday that the agency succeeded in furthering the transaction despite the impediments posed by the coronavirus outbreak.

“We had to review our activities as an agency upward instead of downward as a result of the COVID-19 issues. We did not slow down but actually heightened activities basically to help generate revenue to support the fiscal plan for the year,” said the BPE head.

“And incidentally, tomorrow (today) just as an indication of some of the activities that we have heightened up, we are going to be doing the signing ceremony for the sale of Afam Power Plant to the preferred bidder.

“That alone will fetch the federal government a total sum of N105 billion. So, we didn’t slow down our activities at all; business is continuing as usual for us.”

Transcorp, which won the takeover bid of the 12 interested parties, currently operates a power plant in Ughelli, Delta State.

It will pay 25 per cent of the price within 15 days from Thursday and subsequently settle the outstanding 75 per cent.

The Nigerian government also has the Yola Electricity Distribution Company together with nine other power plants and 10 state-owned companies lined up for sale, all expected to bring in N260 billion.

The Transcorp Power Consortium emerged the preferred bidder for the power facility in October 2019 with a bid price of N105.3 billion. Diamond Stripes Consortium with a price of N102.3 billion was selected as the reserved bidder.

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