Council Approves Privatisation Of Afam Power Plants, Others
Nigeria’s power sector is one that has gulped a significant amount of the nation’s budget without much improvement in power supply
Some power plants in Rivers State are up for sale and the government hopes the decision will improve power supply to the nation.
The approval for the commencement of the privatisation process of Afam Power plants 1 to 5 in was given by the National Council on Privatisation (NCP), which is chaired by the Vice President, Professor Yemi Osinbajo.
A statement issued by a spokesman for the Vice Presidential, Mr Laolu Akande, on Monday said the measure is to inject additional kilowatts into the national grid.
The NCP is the highest decision making body on policies relating to the privatisation and commercialisation policies of the Federal Government.
According to Akande, the Council also approved the pursuit of an out-of-court settlement involving the privatisation of Aluminium Smelter Company of Nigeria (ALSCON).
The move is aimed at resolving the lingering dispute between the Federal Government, BFIG and United Company RUSAL through the mediation of the Secretariat with the active collaboration of the Federal Ministry of Mines and Steel Development.
The council advised that “the mediation efforts should take a holistic view of the entire sector and the overriding national interests to jumpstart industrial development through the steel sector in arriving at a resolution on the matter.”
There was also a review of proposals presented by its Secretariat, the Bureau of Public Enterprises (BPE), for the reform and restructuring of various sectors of the economy.
After going through the proposal, approval was given to the immediate revocation of the concession of the Lagos International Trade Fair Complex and the immediate commencement of a fresh privatisation of Yola Electricity Distribution Company.
Members of the council hope the approval will give traction to key infrastructure facilities in Nigeria presently under concessions but had been adjudged to be performing sub-optimally.
Other key decisions taken by the council include:
- The approval of the amendments to the Work Plan for the conclusion of the transaction involving the concessioning of Terminal “B” Warri Old Port
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Restructuring and recapitalisation of Bank of Agriculture.
“The restructuring of the BOA is in alignment with the Government’s desire to make financing options readily available to farmers for an aggressive diversification of the Nigerian economy.”
Reform and commercialisation of the River Basin Development Authorities to revitalise the irrigation and river basin potential for agricultural purposes is also expected to begin soon.
Nigeria’s tourism sector has remained untapped and the council approved the partial commercialisation of the National Parks using 3 key national parks as pilot projects.
