36 State Governors to review FG’s privatization of 10 generating power plants – Nairametrics

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36 State Governors to review FG’s privatization of 10 generating power plants – Nairametrics

The 36 state governors under the aegis of the Nigeria Governors Forum (NGF) have announced plans to review the proposed privatization of the 10 generating plants across the country under the National Integrated Power Projects (NIPPs) by the Federal Government.

The resolution was made by the governors after receiving a detailed presentation by the Director-General of the Bureau of Public Enterprises (BPE), Mr Alex Okoh.

According to NAN, this disclosure is contained in a communique issued in Abuja and signed by the NGF Chairman, Governor Kayode Fayemi of Ekiti State, at the end of a teleconference.

What the 36 State Governors are saying

The NGF in its statement stated, “The governors resolved to review and communicate through their board representatives, their assessment and position on the privatisation of what they consider critical national assets.

“States currently own a total of 53% equity in NIPPs while the Federal Government owns a 47% stake.’’

The governors as part of the decision, resolved to set up a committee to scrutinise the Electric Power Sector Reform (EPSRA) Bill 2021, which has passed its second reading at the Senate.

This according to the governors followed a presentation by the Chief Executive of New Hampshire Capital Limited, Mr Odion Omonfoman, on the implications the new bill has for state governments.

It stated, “The Forum thereafter set up a Committee comprising the Governors of Edo and Lagos State to scrutinize the new Bill.

“The committee is to advice the Forum on a position that will ensure that the Bill, when signed, will be a tool to strengthen the course of policy direction, design and implementation of the Nigerian Electricity Supply Industry (NESI), and address critical issues in the country’s power sector.”

The governors also listened to the World Bank Country Director for Nigeria, Shubham Chaudhur, who talked about the rollout of a World Bank financed $800 million dollars facility designed to fund a large-Scale conditional cash transfer (CCT) program in the country.

The NGF resolved that each State Governor will establish and Chair a Steering Committee to oversee the Conditional Cash Transfer (CCT) initiative to ensure that the program aligns with the vision of the State Government.

What you should know

Recall that earlier in the year, the BPE had said that it will privatise the remaining 10 Nigerian National Integrated Power Projects (NIPPs), as part of efforts by the Federal Government to boost power supply in the country , in line with its work plan for 2021 as approved by the National Council on Privatization (NCP).

BPE had stated earlier in July 2021, that 36 power sector investors have submitted Expressions of Interest (EoIs) for 5 NIPP put up for sale by the federal government in line with President Muhhamdu Buhari administration’s determination to resuscitate the power plants and put them to full use for the much needed power needs of the economy.

State governments own 53% share of the NIPPs, while the Federal Government owns the remaining 47%.