POWER SECTOR REFORMS A LANDMARK ACHIEVEMENT -OSINBAJO

Prof. Osinbajo has evaluated the current reforms in the power sector as a giant stride in repositioning the sector for proper service delivery . The VP stated this on Thursday in Abuja at the signing ceremony of the Share Sale and Purchase Agreements for Afam Power Plc and Afam Three Fast Power Limited.

According to the Vice President, the Buhari Administration’s goal is to eliminate challenges in the Power Sector by improving liquidity in the market through a host of measures, including the recently announced National Mass Metering Program and the transition to Service-Based Tariff.

“We need a power sector that can provide quality service to Nigerian consumers and sustain itself.”

“today is a milestone in our continued efforts to accelerate reforms in the power sector. This investment by Transcorp in acquiring “Afam Power Plc and “Afam Three Fast Power Limited” is the first of many new investments planned in the sector across the value chain from Generation to Distribution.”

Referring to the current capacity of the plants, Prof. Osinbajo who is the Chairman of the National Council for Privatization, expressed optimism that Transcorp Consortium would significantly improve the operational capacity of the plants.

“the Afam Power Plc and Afam Three Fast Power Limited plants have a combined capacity of almost 1,000MW. The current usable (operational) capacity of 240MW from Afam III and about 100MW from Afam Plc speak to the opportunity that the Transcorp acquisition can bring. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity” .

“We have seen the progress that Transcorp has made with the Ughelli Power Plant in raising the operational capacity significantly (since it acquired the plant in 2013) and we expect nothing less from the Afam acquisitions.”

The Vice President noted that the Afam cluster houses multiple power plants outside of those being acquired by Transcorp (including those owned by Shell Petroleum Development Company and Sahara Energy) and is an energy hub for the country.

“We have no doubt that the addition of Transcorp to the community will come with the forward-thinking Corporate Social Responsibility initiatives that Tony and his team are known for.”

Prof. Osinbajo assured investors that the Federal Government in collaboration with other stakeholders will “continue to work on Ease of Doing Business reforms to drive foreign investment, but our local investors are always a great litmus test for the investment environment and this transaction is a confirmation of the reform trajectory the Administration is leading in the power sector.