The Nigerian government is set to sell five National Integrated Power Projects (NIPPs), and have shortlisted 16 firms. Among the front runners is Geregu Power owned by Femi Oteldola, son of a former governor of Lagos state.
Observers believe that Geregu Power made provision in its 2022 financials, and has raised over N40 billion for the bid. Government sources said the NIPPs are being sold to raise about N260 billion.
Bureau of Public Enterprises (BPE) sources said about 16 companies are bidding to acquire the power generation companies. They include Calabar Generation Company Limited, Omotosho Generation Company Limited, Olorunsogo Generation Company Limited, Benin Generation Company Limited Geregu Generation Company Limited, Kogi state.
Others are Ardova Plc, Sifax Energy, Quantum Megawatt Consortium, Geoplex Drillteq Limited, and Mota-Engil Nig. Globeleq Africa Limited, Pacific Energy Company Ltd., Asfalizo Acquisition Limited, and Central Electric and Utilities Ltd.
There are also Launderhill PJB, North South Power Consortium Unicorn Power Genco Limited, ENL Consortium Limited, Lauderhill Tata, and Connaught Energy Services Limited. Check on Geregu’s financial statement for the period of 2022 submitted on the Nigerian Exchange shows that Otedola company approached the debt market to raise N40.08 billion to finance its bid and boost its chance of acquiring the firm’s preferred power plant.
A part of the Geregu’s financial statement reads: “In July 2022, the company issued N40.085billion unsecured corporate bond for a 7-year tenor and at a coupon and effective interest rate of 14.5% and 14.7% respectively.
“The net proceeds would be used to finance the acquisition of one of the power generation companies which is currently in the final stage of bidding processes by the Bureau of Public Enterprises (BPE).”