Power Plant Sales Unveiled: Details of $1.15 Billion Deal Disclosed, Shedding Light on Future of Nigeria’s Energy Sector

Nigeria has reached the final stage of its plan to sell five key power plants at a cost of $1.15 billion and the winning bidder will be announced soon. The move is part of the government’s broader strategy to restructure the energy sector, improve efficiency, and attract private investment.
With the tender process now complete, the sale marks an important step towards addressing the country’s chronic electricity shortages and boosting economic growth. Adebayo Adelabu, Minister of Energy, said the tender process has been completed and the final report has been submitted to the National Council for Privatization (NCP), chaired by Kashim Shettima, Vice President of Nigeria as chairman.
“At the next meeting of the NCP, the final announcement of the preferred bidders will be made public,” Adelabu reported at the Powering Nigeria conference on Friday. “The assets will not only increase the revenue of the three tiers of government but also bring greater efficiency to the power sector,” Adelabu said. He noted that some initial issues such as bid quotation, payment method, and others have been resolved.

Reports indicate that the five power plants include the 434 MW Geregu II gas-fired plant in Kogi, the 451 MW Omotosho II plant in Ondo, and the 750 MW Olorunsogo II plant in Ogun State.
Other projects include the 563 MW Odukpami Power Plant in Calabar, Cross River State; and the 451 MW Benin-Ihovbor Power Plant in Edo State.
The Benin-Ihovbor power plant, equipped with five power-generating turbines, will be sold for $420 million; Calabar’s Odukpami power plant, with five turbines, will be sold for about $260 million; while the Geregu power plant with four turbines will be sold for $215 million.
It is estimated that the Omotosho plant, which has four generating turbines, will be sold for about $85 million; while the Olorunsogo National Integrated Power Project (NIPP), also with four turbines, will cost $170 million. In December 2022, it was reported that the federal government and 36 state governors agreed to sell five power plants under the National Integrated Power Projects and use the proceeds to fund budget 2023.
This agreement comes more than two years later on the disputes and deadlock surrounding the sale of NIPP power plants managed by the Niger Delta Power Corporation (NDPH).

Alex Okoh, former Director General of the Department of Public Enterprises, has revealed the agreement between the Federal Government and the states regarding the NIPP factories to journalists in Abuja in an interview.
However, this revelation was disputed by many groups. The Office of Public Enterprises has been discussing and planning the sale of NIPP for several years, with the specifics and target amount of the sale evolving over time.
In April 2021, the National Privatization Council approved the sale of five NIPPs as part of the acceleration strategy. The estimated value of these five factories was not announced at that time. In March 2022, the Nigerian National Petroleum Corporation expressed interest in acquiring some of NIPP, suggesting the sales process continues to progress.
In December 2022, former BPE boss Okoh confirmed an agreement between the federal government and Länder for the sale of five NIPPs.