21st July, 2022
By Femi Ogunshola
The House of Representatives has resolved to stop the privatisation of five power plants of Niger Delta Power Holding Company in Nigeria.
This followed the adoption of a motion of urgent public importance by Rep Magaji Aliyu, the Chairman House Committee on Power at the plenary in Abuja on Thursday.
He noted that the National Council on Privatisation and Board of Directors of Niger Delta Power Holding Company (NDPHC), in collaboration with the Bureau of Public Enterprises (PBE), had resolved to sell the power plants.
Aliyu listed the five places to include Calabar in Cross River State, Ihorbor in Edo State, Olorunsigbo, Omotosho and Geregu in Kogi.
He stated that the plants were constructed under the National Integrated Power Project (NIPP) with gross installed capacities at 150 condition -SO6MW, 507MW, 634MW, 513MW and 754MW respectively.
This he said, was to support the delivery of core mandate of Niger Delta Power Holding Company at ensuring the stability of Nigeria’s Power Sector.
The lawmaker said that the shareholding of the NDPHC was held by the Federal Government which is 47 per cent, while states and local governments held 53 per cent.
“The privatisation Act which listed the enterprises to be privatised did not list NDPHC or any of its subsidiary generation companies.
“This was on the ground that it was not wholly owned by the Federal Government; yet, the BPE encouraged it to proceed without corresponding approval of all the shareholders to validate the process.
“If the current timing of the privatisation is approved by the prospective shareholders, it may not enable the greatest financial value.
“This is due to current commercial and technical constraints in the industry associated with poor state transmission, distribution capacity, underpayment and liquidity in the market,’’ he said.
Aliyu noted that it was aggravated by global economic recession which would make the assets to be sold at undervalue price and cause avoidable loss to shareholders.
The House cautioned the director general, BPE to desist from any act to facilitate the sales of the five generation power plants, until duly authorised by shareholders in a formal meeting as stipulated by the companies and Allied Matters Act 2020.