This was stated in a document signed by Mr. Alex Okoh, the Director-General, and made available to the media on Sunday.
The document stated that it was in line with the Nigerian Electric Power Policy and Electric Power Sector Reform (EPSR) Act, 2005, and continued the Nigerian Electricity Supply Industry’s ongoing reforms.
The Niger Delta Power Holding Company (NDPHC) Board of Directors and the National Council on Privatisation had also approved the selling of the five companies through a competitive bidding procedure, according to the statement.
It did not specify how much money was supposed to be made from the sales, however.
The NIPP companies are based in the states of Kogi, Edo, Cross River, Ondo, and Ogun.
Geregu Generation Company Ltd, with a gross installed capacity of 506 Megawatts (MW) at ISO condition, and Benin (Ihovbor) Generation Company Ltd, with a capacity of 507 MW, were identified as the five in-service generation plants.
Calabar Generation Ltd (634MW), Omotosho Generation Ltd (513MW), and Olorunsogo Generation Company Ltd (754MW) are the others.
Prospective investors are required to send separate Expressions of Interest (EoI) for each generation business, according to the text.
“Each bidder must be an experienced power generation company with utility-scale power plants that it owns and/or operates.
In the case of a consortium, at least one of the consortium members (the “Technical Partner”) must be an experienced power generation company.
“Under a long-term arrangement, the technical partner will be responsible for delivering operation, repair, and management services.”
According to the Nigerian News Agency (NAN), the BPE revealed proposals by the Federal Government to sell some generation companies during its 2021 budget defense in the National Assembly.
The Public Enterprises (Privatisation and Commercialisation) Act 1999, according to NAN, was developed to diversify the economy and strengthen the private sector as Nigeria’s engine of growth and economic driver.