Olufemi Adeyemi ![]() |
Vice president Yemi Osinbajo presenting Transcorp Power with a Certificate of Discharge… PHOTO: Twitter/ProfOsinbajo |
Vice-President Yemi Osinbajo says Transcorp Power has been approved as the preferred bidder for the Abuja Electricity Distribution Company (AEDC).
He spoke on Tuesday at the commissioning of the Afam
three-fast power plant in Oyigbo LGA, Rivers state.
Osinbajo said the approval was given by the national council
on privatisation (NCP).
The politician described the development as a significant
breakthrough in the country’s power sector — an industry he said has been
lacking private-sector finance.
“A major breakthrough of our privatisation process, which of
course, as you know, started in 2005-2006, was and has been inadequate of
private investments and real cash injections,” he said.
“From the time we started, an indigenous firm such as
Transcorp Power and Heirs Holding have been making significant investments such
as this 100 percent acquisition of installed capacity Afam Power Plc and Afam
Three Fast Power Limited, jointly referred to as Afam GenCo. The acquisition
cost, I am sure you have heard already, is N105.3 trillion.
“Only yesterday, the national council on privatisation (NCP)
formally delisted Transcorp Power Plc, formerly known as Ughelli Power Plc,
from routine monitoring and evaluation by the BPE, indicating yet another
successful power investment.
“I can say the last few days belong to Transcorp Power
because at the meeting of the national council on privatisation (NCP), the
council approved Transcorp Power Consortium as the preferred bidder of the
acquisition of the Abuja Distribution Company.”
Similarly, the Chairman of Transcorp Group, Mr. Tony Elumelu,
who promised to continuously invest in the sector, said: “We all know the
importance of power in Nigeria, we all experience the consequences of power
deficit, implications for our people, our businesses, our schools, our
hospitals and our institutions. Therefore, I am proud today that we have been
able to put together so many key stakeholders.
“Why am I proud and happy, I would like us to tell a success
story out of Nigeria. A story that can be repeated over and over again if
government, community and the private sector work together as we have worked
together here at Afam.
“The Transcorp Group Partnership began in November
2020. When we signed the Afam power,
share sale, and purchase agreement at a ceremony presided over by the Vice
President of Nigeria. The journey has not always been easy but we have
delivered, capacity recovery, plant investment, infrastructure improvement,
excellent community relationships, and a transformed and motivated Nigerian
workforce. We are fulfilling our promises to the government.
“Transcorp Group, is a stakeholder in the power sector, we
recognize power is the single most critical factor to lifting our people out of
poverty and enabling job creation. It is a sector that has been a strategic
priority for us since the inception of our journey at Hairs Holdings. Why is it
so, it is because to do well, is to do good. Power is a public good, a right,
and a catalyst for a better Nigeria.
“I am delighted to welcome you, Mr. Vice President to the
inauguration of this project; it is a testament to your legacy as chairman of
the National Council of Privatisation and reinforces our country’s confidence
in the ability serious-minded private sector leader to drive economic growth
and progress.
“Transcorp has since inception in 2006 laid the way in
demonstrating the success of successful revitalization programmes. Transcorp
executed the largest capacity recovery in the privatisation power sector in
Nigeria by increasing generated electricity of Transcorp power plant in Ugheli
by 60 megawatts to over 6080 within five years. We transformed.
“I call on the Federal Government to please resolve the gas
and power evacuation challenges that exist in this region so that the capacity
we are covering in the plants is optimized for the good of Nigerians.”
He said: “I want to use this opportunity to urge the
incoming administration also to improve gas supply to our industry and our Afam
plants, ensure the completion of the 330 KVF tubor circuit Afam/Ikot Ekpene
transmission lines which will increase the capacity of Afam corridor. And
success has been built on the partnership with our host community.”
Earlier in his remarks, Rivers State Head of Service, Dr.
Rufus Godwin, who represented Gov. Nyesom Wike, thanked the Vice President for
his love and commitment for the wellbeing of Rivers people and Nigerians at
large, stating that “the VP has become a son of Rivers and is welcome to the
State anytime.”
Also, the President of General Electric in Nigeria, Muhammed
Mijindadi recalled how on some difficult occasions in the process of delivering
the project, the US-based company sought the quick interventions of the Vice
President.
He said: “The Vice
President promptly intervened several times,” he disclosed adding that there
were times when things were proving rather difficult. He praised the VP, the
late Chief of Staff, Abba Kyari, the BPE, and Ministers of Power and Finance,
for their support.”
Dignitaries at the event were the Permanent Secretary in the
Ministry of Power, Mr. Temitope Fashedemi, who represented the Minister, and
the Director General, BPE, Mr. Alex Okoh, among other officials.
In December 2021, United Bank of Africa (UBA) took over AEDC
over 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 to acquire AEDC
in 2013, making it hold a 60 percent stake in the DisCo.
However, in April 2023, the bank said it would sell AEDC to recover the $122 million debt.