Transcorp acquires 966MW Afam GenCo

The Transcorp Power Consortium has acquired the 966 megawatts (MW) capacity Afam electricity generation company (GenCo) at N105 billion.

The federal government and the Transcorp group, on Thursday, signed a share sale and purchase agreement for the Afam Power Plc and Afam III Fast Power Ltd at the Presidential Villa, Abuja.

Alex Okoh, director-general of the Bureau of Public Enterprises (BPE), signed of behalf of the federal government, while Tony Elumelu, chairman of Transcorp Group, signed on behalf of the company.

The National Council on Privatisation had approved the privatisation of the Afam GenCo in 2017.

Speaking during the event, Vice-President Yemi Osinbajo, said the transaction is a confirmation of the government’s reform of the power sector.

“Today marks a milestone for the country with a return to private sector investment in the power sector,” Osinbajo said.

“This investment by Transcorp in acquiring ‘Afam Power Plc’ and ‘Afam Three Fast Power’ is the first of many new investments planned in the sector across the value chain. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.

“We have seen the progress that Transcorp has made with the Ughelli Power Plant in raising the operational capacity significantly, since it acquired the plant in 2013, and we expect nothing less from the Afam acquisitions.

“We have no doubt that the addition of Transcorp to the Afam community, will come with the forward thinking Corporate Social Responsibility initiatives that Tony and his team are known for. This transaction is a confirmation of the reform trajectory the Administration is leading in the power sector.”

Elumelu said the acquisition shows the company’s contribution to the economic transformation of the country.

“Bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission. Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable of,” he said.

“Power remains the single most critical factor for lifting our people out of poverty and job creation for our teaming youth. The acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria.

“I am honoured to be working with the Federal Government and urge it to continue its policy of creating an enabling environment, that sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek.”