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Nigeria launches investor road shows ahead of power privatization

Nigeria has begun a series of investor road shows to generate interest in its planned power sector privatization of electricity distribution companies and power plants.
 
The Bureau of Public Enterprises (BPE), the country’s privatization agency, met with investors in the commercial hub, Lagos and will hold similar events in Dubai, London, New York and Johannesburg over the next three weeks, according to Reuters.
 
Africa’s most populous nation, plagued by blackouts, wants to privatize power generation and distribution. The federal government will continue to own the national grid but its management will be privatized.
 
The investor meetings come ahead of a February 18 deadline for expressions of interest in 11 distribution companies, two thermal generating firms and two hydropower stations.
 
They also come ahead of presidential and parliamentary elections in April, which have meant the original timetable has fallen behind. Some investors have said they are reluctant to commit until the political uncertainty has cleared.
 
President Goodluck Jonathan unveiled the privatization plans last August. Nigeria estimates it will need $10bn a year of investment over the next decade to meet its energy needs. The 11 distribution companies up for grabs are in the capital Abuja in central Nigeria, the cities of Benin, Enugu, Eko, Ibadan, Ikeja, and Port Harcourt in the south and those of Jos, Kaduna, Kano, and Yola in the north.
 
The thermal power stations are Ughelli Power Plc, in Delta state in the southern Niger Delta oil region, and Geregu Power Plc in Kogi state in north-central Nigeria.
 
The hydro power companies, for which concessionaires are sought, are Kainji Power Plc — comprising power stations in Niger and Kwara states in north-central Nigeria – and Shiroro Power Plc, also in Niger state.