The Federal Government has taken another decisive step in its power sector reform as the National Council on Privatisation (NCP) on Thursday granted approval for the Bureau of Public Enterprises (BPE) to proceed with its engagement with Transcorp Power Consortium.
This approval authorises the execution of the Performance Agreements (PAs) for the sale of Afam Power Plc and Afam III Fast Power Ltd., based on a memo submitted to the council. The goal is to regularise pending conditions, implement operational benchmarks, and strengthen the commercial sustainability of the plants.
According to the News Agency of Nigeria (NAN), the memorandum was presented by the Director-General of BPE, Ayodeji Gbeleyi, during the council’s third meeting at the Presidential Villa in Abuja.
Speaking at the session, Vice-President Kashim Shettima, who chairs the NCP, called for a significant reorientation of Nigeria’s privatisation strategy. He urged a transition from the traditional disposal of public assets to a broader model of asset optimisation that would support Nigeria’s ambition of achieving a trillion-dollar economy.
He disclosed that the Federal Government had concluded the sale of the Afam Power Plant, noting that N53.9 billion had so far been realised from the transaction. Shettima insisted that the NCP must function as a strategic guide for national investment and policy direction, warning that economic forecasts would remain speculative without decisive action.
He further highlighted the vast untapped potential in Nigeria’s dormant assets—from land to real estate and intellectual property—and stressed the need to unlock these resources. According to him, the council must prioritise mechanisms such as long-term concessions, asset-backed securitisation, and core-investor sales linked to strict performance standards.
Shettima also emphasised the importance of integrity in all transactions, stating that clarity and transparency were essential to preventing legal disputes and boosting investor confidence.
In his remarks, the BPE Director-General explained that although the Afam asset had been fully transferred to Transcorp Power Consortium, the government restructured the transaction earlier this year. He noted that executing the PAs was crucial, as they formally outline the investor’s obligations—such as improving the plant’s operational output within a specified period.
Gbeleyi added that with the agreements now set for execution, the BPE can commence its mandated post-privatisation monitoring to ensure compliance with performance targets.
He also reported that the council reviewed major achievements for 2025, including the unbundling of the Transmission Company of Nigeria (TCN) into the Nigerian Independent System Operator and the Transmission Service Provider—an important milestone in the power sector reform process.
The meeting also featured contributions from key officials, including Minister of Finance Wale Edun, Minister of Power Adebayo Adelabu, Minister of Budget and Economic Planning Atiku Bagudu, Attorney-General of the Federation Lateef Fagbemi (SAN), and CBN Governor Olayemi Cardoso.
With the council’s latest endorsement, stakeholders expect smoother implementation of the Afam Power transaction and stronger oversight of post-privatization commitments.