2023 Budget Funding: Nigerian Government to Sell Five Electricity Companies

Six months after announcing the restructuring of power distribution companies and the privatization of five power projects, the Nigerian government says it plans to sell some of the country’s electricity-generation companies.

According to Bloomberg, the sale will take place in the first quarter of 2023, with the proceeds going toward funding the 2023 budget.

President Muhammadu Buhari presented a record budget of N20.5 trillion for next year in October, with N10.78 trillion not supported by revenue, resulting in a budget deficit of 4.8% of GDP.

The generating companies of Gencos for sale are the Geregu power plant, a 562-megawatt facility in Calabar, Cross River State, and the Olorunsogo power plant.

The director-general of the Bureau of Public Enterprises, Alex Okoh, told Bloomberg on Thursday that bids for the companies will be opened this month and will close at the end of March.

The power plants are part of the power projects that were shortlisted for privatisation in July.

Since the government handed over authority in 2013, privately owned businesses have had difficulty supplying electricity.

Nigeria’s power system has mostly remained dysfunctional, producing and distributing an average of 4,000 megawatts to around 200 million people.

 

 

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