Success Nwogu 
Following the need to improve power generation in the country, the Federal Government has been advised to be transparent in any future arrangements aimed at disposing of power plants to private investors. According to the Chief Executive Officer, BIC Consultancy Services, Dr. Boniface Chizea, the Federal Government should avoid selling the five plants proposed for sale to its officials or cronies of government officials.
He stated that it would amount to conflict of interest if the power plants are sold to government officials or their fronts. In an interview with New Telegraph over the weekend, he also called on the Bureau of Public Enterprises (BPE) to ensure transparency in the transactions. The Federal Government has started transactions for the sale of five power plants under the National Integrated Power Projects at a cost of about $1.15 billion. The acting Director-General of BPE, Ignatius Ayewoh, confirmed the development, saying that “the transaction is ongoing. It is not concluded.” He, however, did not disclose the cost of the five plants. But sources familiar with the development opined that the cost of the plants should exceed $5 billion based on international benchmark. According to them, the BPE s planning to sell the facilities at a price that is a little above $1.1 billion. The official went ahead to explain that it would cost about $1 million to construct a plant that can generate 1MW of electricity, stressing that if the five NIPP plants were valued on this basis, they would cost more than $5 billion. Sources also said the cost of constructing 1MW power plant vary depending on several factors, including type of power plant, location, technological advancements, etc. “But a general range for the cost of constructing a 1MW power plant based on different technologies is that for a solar power plant, it is between $1 million and $2 million per MW,” one of the sources said. “For wind power plant, it is between $1.5 million to $2.5 million per MW.
For natural gas-fired power plants, such as the NIPPs, it is between $1 million and $2 million per MW, while for coal power plants, it is between $2 million and $3 million per MW,” another source in the sector explained. According to the sources, the affected power plants for sale are the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State. Others are the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State. It was gathered that the Omotosho plant, which has four power generating turbines, would be sold at about $85 million; while the Olorunsogo NIPP with also four turbines would cost $170 million. The Benin-Ihovbor plant with five power generating turbines would go for $420 million; Calabar Odukpami plant with five turbines would be sold at about $260 million; while the Geregu plant with four turbines would go $215 million. “These are Siemens turbines and each of the turbines can generate about 115MW of electricity,” one of the sources, who pleaded not to be named ,as he was not authorised to divulge details of the ongoing transactions to journalists, said. A report, in April 2021, had disclosed that the National Council on Privatisation had okayed the adoption of a fast-track strategy for the privatisation of the five power plants listed as Geregu, Omotosho, Olorunsogo, Calabar and BeninIhovbor. Chizea, a retired banker and top economist, said it was not surprising the decision of the Federal Government to offload five of the country’s generating plants. According to him, every one in Nigeria must by now share the frustration of pain and costs to all and sundry due to the very poor and deteriorating performance of the power sector in Nigeria.
He stated that it was now difficult to keep a tab of the number of times the national grid has collapsed in the country most especially now and in the recent past. He noted that the lamentable state of affairs had made the Nigerian economy that should have been an investment destination rather unattractive. It added that it also made existing economic agents in the country to operate in an uncompetitive manner as the costs of the provision of power from alternative sources are rather prohibitive particularly under extant scenarios of withdrawal of subsidy on petroleum products and ravaging inflationary pressures aided by the decision to float the exchange rate of the naira. Chizea said: “It also goes without saying that this situation elevates the misery index in the land. As is often the case in this country, eyebrows are already being raised with regard to the indication of what price the assets will be off loaded. We must reach a stage in this country when it must no longer be business as usual with regard to the values we bring to the table when such matters are being discussed.” The Business Development Consultant urged Nigerian stakeholders, including public opinion influencers, civil society organisations and prominent Nigerians to be on guard and ensure that the five power stations are not undervalued and under-sold. He stated that vigilance was necessary to prevent Nigerians from being ripped off to the advantage of few privileged power brokers. “Social media could be leveraged to ensure that such transactions of national importance are handled at arms length. Civil society organisations have their work cut out for them. They must rise to the occasion to hold public sector players accountable. Indeed extra efforts must be made to eschew conflict of interests by ensuring that these deals are not concluded with proxies of those in charge. These transactions must be undertaken in very transparent manner.
