Nigeria rounded off the privatization of successor companies to Power Holding Company of Nigeria, PHCN, its public utility power company with the formal handing over of Kaduna Distribution Company and Afam Generation Company new owners on Monday.
The Northwest Power Limited emerged the new owner of Kaduna Distribution Company, while Taleveras/ Afam Power Plc, promoted by Taleveras Group got the Afam Generation Company.
Taleveras had earlier been announced as the preferred bidder for Afam Genco with an offer price of $260 million, while Northwest had the highest Aggregate Technical Commercial and Collection Loss reduction (AT&C) of 29.26 per cent for Kaduna Disco in the bid process supervised by the Bureau of Public Enterprises.
“Today we are making history as we come to the end of the privatization of the PHCN’s successor companies,” Benjamin Dikki, the Director General of BPE said at a ceremony organized to hand over the two companies to their new owners after the signing of the Share Purchase Agreement, SPA by representatives of the privatization agency and the private investors in Abuja.
Dikki signed for the Federal Government; Oghens Sanomi signed for Taleveras, while Yusuf Abubakar signed for Northwest.
The BPE DG said the final handing over of the nation’s power sector to private investors will be completed next year as the process of privatization of the nation’s 10 National Integrated Power Project (NIIP) plants is at an advanced stage.
“We have also reached an advance stage in the privatization of the 10 NIPP plants. We shall be holding the financial bid opening for the plants after we have got the approval of the Technical Committee and the National Council on Privatization,” said Dikki.
He added that after this, the power sector will be completely in the hand of the private sector.
He however said government will continue to invest in the sector until Nigeria achieves sufficiency in power supply.