NCP moves to regularise Afam Power Plant sale to Transcorp

…As VP Shettima demands shift to asset optimisation.

The National Council on Privatisation (NCP) has approved the Bureau of Public Enterprises’ (BPE) request to conclude its engagement with Transcorp Power Consortium for the execution of Performance Agreements (PAs) on the sale of Afam Power Plc and Afam III Fast Power Ltd.

The move is aimed at regularising outstanding conditions in the post-acquisition plan and ensuring the plant’s commercial viability.

The approval followed a memo presented by BPE Director-General Ayodeji Ariyo Gbeleyi during the Council’s third meeting at the Presidential Villa, Abuja.

Gbeleyi disclosed that the Federal Government had completed the sale of the Afam power assets, with N53.9 billion already received as privatisation proceeds.

Although the plant has been fully handed over to Transcorp Power Consortium, the DG noted that the government restructured the transaction earlier this year and needed to execute the standard post-acquisition Performance Agreements, which outline the investor’s obligations, including boosting the plant’s operational capacity.

He added that once the agreements are signed, the BPE will begin mandatory post-privatisation monitoring of the investor’s performance. Gbeleyi also reported progress in the Council’s 2025 activities, highlighting the unbundling of the Transmission Company of Nigeria (TCN) into the Nigerian Independent System Operator and the Transmission Service Provider.

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Presiding over the meeting, Vice President Kashim Shettima, who chairs the NCP, called for a fundamental shift in Nigeria’s privatisation approach. Adding that the country must move beyond selling state assets to a long-term asset-optimisation model capable of supporting the ambition of building a trillion-dollar economy.

Shettima described the new direction as an “economic necessity,” urging the Council to unlock the value of dormant national assets, including unused land, real estate and intellectual property. He said the NCP must serve as the “economic compass” guiding Nigeria’s investment decisions.

“Our aspiration to build a trillion-dollar economy demands discipline, vision, and strict adherence to the compass produced by this Council. Without it, our projections remain mere theory,” he said.

The Vice President directed the Council to explore modern privatisation models, including long-term concessions, asset-backed securitisation and strict performance-based investor sales.

He also warned against transaction ambiguities, saying they expose the country to costly litigation and undermine investor confidence.

Minister of Finance Wale Edun commended the BPE’s diligence and urged the agency to maintain high professional standards.

Other contributors at the meeting included the Minister of Power, Adebayo Adelabu; Minister of Budget and Economic Planning, Atiku Bagudu; Attorney-General Lateef Fagbemi; and CBN Governor Olayemi Cardoso.