The Nigerian government and the Transcorp Power Consortium have signed a share sale and purchase agreement in relation to Afam Power Plc and Afam III Fast Power Ltd, which is expected to add 966 megawatts to the national grid.
The deal was signed on Thursday by the Director-General, Bureau of Public Enterprises (BPE), Alex Okoh, and the Chairman of the Transcorp Group, Tony Elumelu, at brief ceremony at the State House, witnessed by Vice President Yemi Osinbajo, who is the chairman of the National Council on Privatisation (NCP).
The NCP had approved the privatisation of the Afam Power Plant at its meeting held between August 22-23 2017. Following the approval, a competitive bidding for the plant, involving 12 prospective investors, was held with Transcorp Power Consortium emerging the preferred bidder with a combined offer of N105billion.
Speaking at the signing ceremony, Prof. Osinbajo said the event was a milestone in the Nigerian government’s continued effort to accelerate reforms in the power sector. He said the acquisition of Afam Power PLC and Afam III Fast Power Ltd by the Transcorp Power Consortium was the first of many new investments in the sector across value chain from generation to distribution. Osinbajo said: “The Buhari administration’s goal is to eliminate the challenges in the power sector by improving liquidity in the market through a host of measures, including the recently announced national mass metering programme and the transition to a service-based tariff.