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FG Offers To Sell Omotosho Power Plant To Chinese Firm

The federal government has offered to sell the Omotosho Power Station to Chinese engineering firm that upgraded the plant, the Bureau of Public Enterprise (BPE) … Continue reading FG Offers To Sell Omotosho Power Plant To Chinese Firm


The federal government has offered to sell the Omotosho Power Station to Chinese engineering firm that upgraded the plant, the Bureau of Public Enterprise (BPE) stated. 

State-owned China Machinery Engineering Corporation (CMEC) completed the second phase of the Omotosho power plant in southwest Nigeria last month, taking total output from 375 megawatts (MW) to 500 MW. This represents more than 10 percent of the West African country’s total capacity.

The federal government wants to sell the plant to CMEC for $217.5 million, although $104 million would be offset against debts the government owes CMEC and a further $30 million would be kept for further work to be done by the Chinese firm, the BPE said in a statement on Wednesday.

China has made a number of loans in recent years to Nigeria to fund projects including a railway, aviation works, roads and power plants such as Omotosho, cementing its relationship with the energy-rich African country and also subsidising its construction industry.

Nigeria is now offering to sell the plant partly to pay back the loan. Industry experts also say power assets will be better managed and produce more electricity in company hands.

The government is breaking up the Power Holding Company of Nigeria (PHCN) into 15 firms handling generation or distribution in different parts of the country.

All of the preferred bidders for the firms that Nigeria is privatising met a deadline last week to pay a quarter of their bids, a landmark step in the process.

Although Nigeria holds the world’s ninth largest gas reserves, its total power output is around 4,000 megawatts.