Transcorp Group, an indigenous Nigerian firm, has been selected as the preferred bidder for the Abuja Electricity Distribution Company, according to Vice President of Nigeria, Prof. Yemi Osinbajo. This announcement was made during the inauguration of the Afam Power Plant in Rivers state.
The privatisation process of the power sector began in 2005-2006 but had been plagued by a lack of private investment and insufficient cash injections. However, Transcorp Power and Heirs Holding have been making significant investments, such as the 100 percent acquisition of Afam Power Plc and Afam Three Fast Power Limited, which are jointly referred to as Afam GenCo. The cost of the acquisition was N105.3 trillion.
Furthermore, the National Council on Privatisation (NCP) has recently approved the Transcorp Power Consortium as the preferred bidder for the acquisition of the Abuja Distribution Company. This marks yet another successful investment by Transcorp Power, which was formerly known as Ughelli Power Plc. The NCP also formally delisted Transcorp Power Plc from routine monitoring and evaluation by the Bureau of Public Enterprises, further highlighting the company’s success in the power sector.
In December 2021, United Bank of Africa (UBA) took over the Abuja Electricity Distribution Company due to the inability of its major stakeholder, Kann Consortium, to service the $122 million debt owed to the bank. Kann Consortium had secured a loan from UBA in 2013 to acquire AEDC, giving it a 60 percent stake in the DisCo.
Overall, Transcorp Power’s success in the power sector highlights the potential for private investment in Nigeria’s power sector and its ability to address the country’s electricity challenges.
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