AfrElec: Nigeria shortlists 16 firms allowed to buy five energy grid assets

The Nigerian government has shortlisted 16 firms it has approved to privatise five of the country’s National Integrated Power Projects (NIPPs): Geregu, Omotosho, Olorunsogo, Calabar and Benin-Ihovbor.

Nigeria's decision to restructure and privatise a significant proportion of its power sector brings changes that impact the distribution companies, known as DISCOs, which have struggled to reliably provide power to the nation since 2013, when the government ceded overall control over distribution.

The low per-capita megawatt production in Nigeria means there is a significant opportunity for growth and profit for companies that opt to enter the sector. Through privatisation, Nigeria hopes to transform its current infrastructure into world-class facilities.

The National Council on Privatisation (NCP) approved the adoption of a fast-track strategy for the privatisation of the five NIPP plants in April 2021.