The Federal Government says it has generated N135b. from the provitisation of the Afam power generation company (Genco), Afam Three Fast Power Genco, the re-sale of government shares in the Yola electricity distribution company (Disco) as well as the sale of 29 per cent of the federal government’s shares in the Geregu Genco.
In a statement issued by the Bureau of Public Enterprises (BPE), the agency was given a target of N220 billion for budget funding by the federal government.
The agency Director-General, Alex Okoh at a meeting with the National Assembly disclosed that the National Council on Privatisation (NCP) had recently approved Transcorp Power Consortium as the preferred bidder for the Afam Genco which included the Afam fast power in a renewed privatisation of the power assets with a bid price of N105.3 billion or $343.6 million as well as Diamond Stripes Consortium as the reserve bidder with a price of N102.3 billion.
The winning bid of $343.6 million for the power plant is above the winning bid of $265 million in the previous privatisation transaction conducted in 2013. Transcorp Power Consortium has said it plans to invest $350 million in the firm over a period of five years after taking over.
It equally approved Quest Electricity Nigeria Limited as the preferred bidder for the re-privatised Yola Disco with a bid price of N19 billion or about $62 million which it added was above the $59 million paid by the previous core investor of the Disco in 2013.
The statement said Okoh advised the government to consider privatising its enterprises to fund the N10.33 trillion 2020 budget, with a total deficit of N2.28 trillion.
He equally noted that there was no justification for the yearly budget deficit with local and external borrowings when there were national assets that could be converted into liquidity to fund the government’s fiscal programmes.
“It is not good to keep borrowing on a yearly basis to finance deficit budget when a lot of very valuable national assets are lying fallow and moribund.
“Proceeds from outright privatisation or concession of the moribund assets, should serve as veritable sources in funding the budget since the assets are more or less, becoming national liabilities,” said Okoh.
(C) Control TV 2019.
