The Federal Government has approved Transcorp Power as the preferred bidder for the Abuja Electricity Distribution Company (AEDC).
This was even as a 240-megawatt turbine, Afam Three-Fast Power Plant, was unveiled.
Speaking on Tuesday, at the commissioning of the Afam Three-Fast Power Plant in Oyigbo LGA, Rivers State, the Vice President, Prof. Yemi Osinbajo, revealed that the approval was given by the National Council on Privatisation (NCP).
He described the development as a significant breakthrough in the country’s power sector – an industry he said has been lacking private sector finance.
“A major breakthrough of our privatisation process, which of course, as you know, started in 2005-2006, was and has been inadequate of private investments and real cash injections.
“From the time we started, an indigenous firm such as Transcorp Power and Heirs Holding have been making significant investments such as this 100 per cent acquisition of installed capacity Afam Power Plc and Afam Three-Fast Power Limited, jointly referred to as Afam GenCo. The acquisition cost, I am sure you have heard already, is N105.3 trillion.
“Only yesterday (Monday), the National Council on Privatisation (NCP) formally delisted Transcorp Power Plc, formerly known as Ughelli Power Plc, from routine monitoring and evaluation by the BPE, indicating yet another successful power investment.
“I can say the last few days belong to Transcorp Power because at the meeting of the National Council on Privatisation (NCP), the council approved Transcorp Power Consortium as the preferred bidder of the acquisition of the Abuja Distribution Company,” he said.
Nigerian Anchor reports that the United Bank of Africa (UBA) took over the AEDC in December 2021, over the inability of its major stakeholder, Kann Consortium, to service the $122 million debt owed to the Bank.
Kann Consortium had secured a loan from UBA to acquire AEDC in 2013, making it hold a 60 per cent stake in the DisCo.
However, in April 2023, the bank said it would sell AEDC to recover the $122 million debt.
Osinbajo also spoke of the Afam Three-Fast Power Plant.
“In 2020, electricity subsidies reached N584 billion, but service-based tariffs have led to a doubling of collection in the Nigeria Electricity Supply Industry (NESI) from N40 billion in 2020 to N80 billion in the first quarter of 2023.
“If this trajectory continues, the Nigeria Electricity Supply Industry will be able to pay for itself. Our administration has also created programmes for off-grid electrification. Rural Electrification Agency (REA) now has the capacity to provide electricity supply on a first-class basis.
“We are on track to electrify all Nigerians in the next decade. However, we will not make progress if our gas supply does not improve. The gas supply challenges are hampering improvements,” Osinbajo said.
The project, a subsidiary of the Transcorp Group, is located in Oyigbo, on the outskirts of Port Harcourt in Rivers State.
