Transcorp Plc on 5th November , sealed the acquisition of 1000MW of Electricity from the sale of the Federal Government of Nigeria’s 100% equity in Afam Power for N105bn($274.5 million)
The Chairman of Transcorp Group, Tony Elumelu, signed the sale purchase agreement with the Government at a ceremony involving Nigerian Vice President Yemi Osinbajo. The Bureau of Public Enterprises (BPE) orchestrated the sale and the National Council on Privatisation (NCP) witnessed the ceremony.
“Today marks a milestone for the country with a return to private sector investment in the power sector. This investment by Transcorp … is the first of many new investments planned in the sector across the value chain,we expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.”said Yemi Osibanjo
Elumelu said that the provision of “affordable, dependable power to the Nigerian people is core to Transcorp’s mission which reflects in significant investments in the power sector to bring economic transformation in Nigeria”
He called on the Nigerian government to “continue its policy of creating an enabling environment, that sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek”.
He also thanked the Federal Government for their strides in promoting the development of the power sector and the resulting local investments attracted from foreign investors.
In 2013 Transcorp acquired Ughelli Power Plant which surpasses the installed capacity of Afam Power. This move has significantly improved the plant to generate even more electricity for Nigerians.
Besides that, these investments in the power sector will help to create jobs for the youths, eradicate poverty and drive mass economic empowerment.
Afam Power PLC is a premier thermal Power Generating Company Located in Oyigbo LGA of Rivers State Nigeria. The Plant, initially had an installed capacity of 776 megawatts of electricity. It is an open cycle gas turbine plant and was commissioned in phases between 1962 and 2001.
The sale included Afam Power and Afam Three Fast Power.This particular acquisition deal takes Transcorp’s generation capacity to 1,936 MW and the company plans to pump in $350million in Afam over the next 5 years
Afam Power Plant is one of the 23 generating plants connected to Nigeria’s National grid.
The Federal Government earlier in 2013 struck a deal with the Taleras Group to sell Afam but terminated this agreement in 2016. It launched another privatisation effort in 2017.
Transcorp Power is consistently leading power generating companies in Nigeria in electricity generated and wheeled unto the national grid.