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FG To Sell Benin-Ihovbor Power Plant, Four Others For $1bn

Published

4 months ago

January 24, 2024

The Federal Government through the Bureau of Public Enterprises is currently carrying out transactions for the sale of five power plants under the National Integrated Power Projects at a cost of about $1.15bn, it was gathered on Tuesday.

Although sources familiar with the development explained that the cost of the plants should exceed $5bn based on international benchmark, they revealed that the BPE was planning to sell the facilities at a price that is a little above $1.1bn

The acting Director-General, BPE, Ignatius Ayewoh, confirmed to The PUNCH in a brief telephone conversation that “the transaction is ongoing,” adding that “it is not concluded.”

The BPE boss did not disclose the cost for the five plants, as he quickly stated that he was in a meeting and would not be able to give additional details.

However, impeccable sources at the bureau named the five power plants to include the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.

Others include the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.

It was gathered that the Omotosho plant, which has four power generating turbines, would be sold at about $85m; while the Olorunsogo NIPP with also four turbines would cost $170m.

The Benin-Ihovbor plant with five power generating turbines would go for $420m; Calabar Odukpami plant with five turbines would be sold at about $260m; while the Geregu plant with four turbines would go $215m.

“These are Siemens turbines and each of the turbine can generate about 115MW of electricity,” one of the sources, who pleaded not to be named due to lack of authorisation, stated.

The official went ahead to explain that it would cost about $1m to construct a plant that could generate 1MW of electricity, stressing that if the five NIPP plants were valued on this basis, they would cost more than $5bn.

It was, however, gathered that the cost of constructing 1MW power plant vary depending on several factors, including type of power plant, location, technological advancements, etc.

“But a general range for the cost of constructing a 1MW power plant based on different technologies is that for a solar power plant, it is between $1m to $2m per MW.

“For wind power plant, it is between $1.5m to $2.5m per MW. For natural gas-fired power plant, such as the NIPPs, it is between $1m to $2m per MW, while for coal power plants, it is between $2m and $3m per MW,” another source in the sector explained.

In December 2022, The PUNCH reported that the Federal Government and the 36 state governors finally agreed to sell five power plants under the National Integrated Power Projects and use the proceeds to fund the 2023 budget.

Parties in the deal reached the agreement in December after over two years of disputes and legal tussle as regards the sale of the NIPP plants being managed by the Niger Delta Power Holding Company.

The NDPHC, owned by the federal, state, and local government councils, is a power generation and distribution company that oversees the implementation of the NIPPs.

The former Director-General, Bureau of Public Enterprises, Alex Okoh, had disclosed the agreement between the Federal Government and the states as regards the NIPP plants to journalists in Abuja during an interview. The disclosure was, however, opposed by various groups.

There have been discussions and plans for the sale of the NIPPs by the Bureau of Public Enterprises for several years, with the specific details and target sale amount evolving over time.

In April 2021, the National Council on Privatisation approved the sale of five NIPPs through a fast-track strategy. The estimated value of these five plants was not publicly disclosed at the time.

In March 2022, the Nigerian National Petroleum Corporation expressed interest in acquiring some NIPPs, indicating continued progress with the sale.

In December 2022, the former BPE boss, Okoh, confirmed an agreement between the Federal Government and states for the sale of five NIPPs.

He projected the sale to generate over N260bn (around $600m). However, some many sources and CSOs expressed concerns that this amount wouldn’t significantly impact the rising budget deficits at the time.

As of today, and going by what the acting DG of the BPE states, the sale of the NIPPs has not been finalised. The Niger Delta Power Holding Company, which manages the NIPPs, has also not confirmed its sale.

Meanwhile, it should be stated that while there is no official confirmation on the cost of the NIPPs, some sources speculate that the initial estimates for individual NIPPs could have ranged from $300m to $500m.

PUNCH

Related Topics:Electricity grid Power plant

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Primary School Pupil Bags N21m Scholarship For Scoring 100% In Maths Competition

Published

8 hours ago

May 20, 2024

Editor

A young mathematics prodigy, Ugwoezuonu Ogechi Zara, has reportedly been awarded a N21 million scholarship after scoring a perfect score of 100% in the primary category of the National Mathematics Competition organised by the Mathematics Association of Nigeria.

An education activist and Chief Executive Officer of Educare, Alex Onyia, disclosed this on Friday via X while expressing pride in Zara’s exceptional performance.

“Ugwoezuonu Ogechi Zara scored a perfect score of 100% in the primary category of National Mathematics Competition organised by Mathematics Association of Nigeria (MAN),” Onyia stated.

Accordingly, Zara’s outstanding achievement has secured her a full six-year scholarship at Evergreen College in Enugu.

“She has been awarded a full scholarship worth N21 million to study for six years at Evergreen College, Enugu,” Onyia added.

The National Mathematics Competition, organised annually by MAN, is a highly competitive event that attracts the brightest young minds from across the country.

On Monday, six students of Divine Rays British School in Idemili North Local Government Area of Anambra State emerged tops in the just-concluded 2024 National Mathematics Competition, organised by Catalyst Consulting and held across designated states of the country.

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[UPDATED] N30,000 Minimum Wage: Labour Issues Two-week Ultimatum To Defaulting States

Published

8 hours ago

May 20, 2024

Editor

The organised labour comprising of the Nigeria Labour Congress and Trade Union Congress, on Monday, ordered state chapters to issue two weeks ultimatum to states that have failed to implement the old N30,000 minimum wage.

The NLC and TUC took this decision during a jointly held National Executive Council meeting which took place on Monday.

Today’s meeting was held ahead of the meeting with the Tripartite Committee on minimum wage which is slated for

The committee is expected to meet Tuesday after negotiations failed last week following the walkout by Labour as the FG proposed the sum of N48,000 as the new minimum wage.

The Chairman, Tripartite Committee on National Minimum Wage, Bukar Goni, indicated in a letter of invitation to labour leaders that negotiations would continue on Tuesday.

The Organised Private Sector, on the other hand, proposed an initial offer of N54,000. After dumping the talks, the labour leaders addressed a press conference where they expressed their anger over the FG’s offer.

The National President, Nigeria Labour Congress, Joe Ajaero, insisted on N615,000 minimum wage, arguing that the amount was arrived at after an analysis of the current economic situation and the needs of an average Nigerian family of six.

He blamed the government and the OPS for the breakdown in negotiation, saying, “Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the Government and the Organised Private Sector has led to a breakdown in negotiations.”

In a statement released at the end of the jointly held NEC meeting by the NLC and TUC which was signed by Ajaero and TUC President Festus Osifo, the unions said, “The NEC acknowledges the ongoing negotiations between the NLC/TUC, the Organised Private Sector and the Federal Government regarding the new national minimum wage.

“While appreciating the efforts made thus far, the NEC emphasises the urgency of reaching a fair and equitable agreement that reflects the true value of Nigerian workers’ contributions to the nation’s development and the current crisis of survival facing Nigerians as a result of government’s policies. The NEC affirms its commitment to ensuring that the interests and welfare of workers are adequately protected in the negotiation process.

“The NEC-in-session, therefore, reiterates the ultimatum issued by the NLC and TUC to the Federal Government, which expires on the last day of this month. It emphasises the non-negotiable nature of the demands put forth by Nigerian workers and urges the government to prioritise the resolution of these issues in the best interest of industrial peace.

“NEC-in-session further directed all state councils whose State Governments are yet to fully implement the N30,000 National Minimum Wage and its consequential adjustments to issue immediately a joint two-week ultimatum to the culpable State Governments to avert industrial action.”

The unionists directed that all “affiliates and workers in the Anambra State council mobilise their members to ensure a successful action in the event the State Government fails to meet the demands of workers by Thursday, the 23rd of May, 2024.”

“NEC therefore calls on all affiliate unions, and workers including Civil Society Organisations across Nigeria to remain united and steadfast in solidarity during this critical period. Together, we shall prevail in our pursuit of a fair and just society that guarantees the dignity and well-being of all its citizens.

“The NECs – in – session finally affirms its unwavering commitment to championing the cause of Nigerian workers and ensuring that their rights and interests are upheld at all times,” the statement concluded.

Tinubu through Vice President Kashim Shettima, on January 30, 2024, inaugurated the 37-member Tripartite Committee on Minimum Wage to come up with a new minimum wage ahead of the expiration of the current N30,000 wage on April 18, 2024.

With its membership cutting across Federal and State Governments, the private sector, and organised labour; the panel is to recommend a new national minimum wage for the country’s workers.

During the inauguration of the panel, Shettima urged the members to “speedily” arrive at a resolution and submit their reports early.

“This timely submission is crucial to ensure the emergence of a new minimum wage,” Shettima said.

In furtherance of its assignment, a zonal public hearing was held simultaneously on March 7 in Lagos, Kano, Enugu, Akwa Ibom, Adamawa states, and Abuja.

The NLC and the TUC, in different states, proposed various figures as a living wage, referencing the current economic crunch and the high costs of living.

In their different proposals on the minimum wage, the NLC members in the South-West states demanded N794,000 as the TUC suggested N447,000.

At the North-Central zonal hearing in Abuja, the workers demanded N709,000 as the new national minimum wage, while their counterparts in the South-South clamoured for N850,000.

In the North-West, N485,000 was proposed, while the South-East stakeholders demanded N540,000 minimum wage.

However, the organised labour settled for N615,000 as a living wage.
PUNCH

News

JUST IN: NLC To Picket Turkish Airline

Published

9 hours ago

May 20, 2024

Editor

The national secretariat of the Nigeria Labour Congress has ordered its members in Lagos State to shut down Turkish Airlines in the state on Tuesday over the sacking of seven of its members.

The NLC stated that it would ensure the picketing of the airlines until its management reinstates the affected workers.

According to an NLC statement signed by the union’s General Secretary, Chris Uyot, on Monday, the NLC noted that seven of its members working with the airlines were sacked for unionising under the umbrella of the National Union of Air Transport Employees.

In April, NUATE threatened to picket airlines operating in the country after they had refused their staff the opportunity to join trade unions of their choice.

NUATE said such an act was against labour law for some airlines to make employment conditional upon not joining a trade union, adding that those who threaten workers with sacks, if they join unions, are working against Nigerian laws.

Aside from the seven persons earlier sacked, the NLC noted that it has gathered that the airline is attempting to lay off four other members of the union.

“By the above action of unjustifiable dismissal of their workers, the management of Turkish Airlines has put to waste 10-14 years of service. And this fate has befallen these hapless workers purely on account of exercising their constitutional rights to belong to a trade union. Congress will not tolerate this situation.

“Therefore, the Lagos State Council of NLC is hereby directed to commence picketing of Turkish Airlines in Lagos with effect from Tuesday 21st May 2024 until all staff of Turkish Airlines who have been sacked, dismissed, forced to abandon duty, or forced to resign under duress, including those victimised for their union membership in 2020, have been fully restored to their jobs without any losses of any kind.

“All affiliate unions in aviation are particularly charged to mobilise heavily for the picketing action without fail, please.” the union’s statement read partly.

Meanwhile, the union further stated that the Federal Capital Territory Council would be standing by in case “the need arises to escalate the matter to the Abuja airport.”