‘Stakeholders not carried along’ — reps ask BPE to halt privatisation of integrated power plants

The house of representatives has asked the Bureau of Public Enterprises (BPE) to halt the sale of five National Integrated Power Projects (NIPPs). 

The five power projects include the Benin Generation Company Limited at Ihovba, Edo state; Calabar Generation Company Limited, Cross River state; Geregu Generation Company Limited, Kogi state; Olorunsogo Generation Company Limited, Ogun state and Omotosho Generation Company Limited, Ondo state.

On July 7, Alex Okoh, director-general of the Bureau of Public Enterprises (BPE), said the federal government had pre-qualified 16 firms for the privatisation of the five NIPPs.

However, on Thursday, the house halted the sales of the plants following a motion of urgent public importance moved by Magaji Aliyu, chairman of the house of representatives committee on power.

Magaji said the national council on privatisation and board of directors of the Niger Delta Power Holding Company (NDPHC) in collaboration with BPE, had advertised a request for expression of interest to purchase the power plants, even though the assets belonged to the three tiers of government. 

He added that the federal government’s share was 47 percent while states and local governments owned 53 percent.

According to Magaji, the federal government was bent on selling the assets to fund the deficit in the budget without the consent of the other tiers of government and other shareholders.

“The house is worried that the federal government insists to proceed with the sale of these assets despite the fact that the consent of the other shareholder states and local governments, the appropriate legal framework/policy to apply relating to the procurement or disposal of shares or assets by the federal government or its agencies giving the joint shareholding of the state and local governments have not been resolved,” Magaji said.

He said the government made a similar attempt in 2013 but the process failed.

“Current timing of the privatisation — even if it is approved by the prospective shareholders — may not enable the greatest financial value due to current commercial and technical constraints in the industry associated with the poor state of transmission and distribution capacity, underpayment/liquidity in the market aggravated by global economic recession which will make the assets to be sold at undervalue price and cause avoidable lost (sic) to the shareholders,” he added.

Also commenting on the motion, Uzoma Abonta, a lawmaker representing Ukwa East/West Constituency, Abia, urged the committees on power and privatisation to investigate issues surrounding the assets.

Consequently, the house asked Alex Okoh, director-general, BPE, to desist from any act that will facilitate the sales of the five power plants until duly authorised by the shareholders in a formal meeting as stipulated by the Companies and Allied Matters Act (CAMA) 2020.

The motion was passed after Idris Wase, deputy speaker, who presided over the session, put it to vote.