The National Council on Privatisation (NCP) has approved a fresh request by the Bureau of Public Enterprises (BPE) to conclude engagements with Transcorp Power Consortium for the execution of the Performance Agreements (PAs) tied to the sale of Afam Power Plc and Afam III Fast Power Limited.
The decision, reached on Thursday at the Council’s third meeting held inside the Presidential Villa, Abuja, is aimed at regularising all outstanding conditions surrounding the transaction, enforcing post-acquisition targets, and restoring commercial viability to the Afam power assets.
According to BPE Director-General, Ayodeji Ariyo Gbeleyi, the Federal Government has already completed the sale process, securing N53.9 billion in privatisation proceeds. While the assets have been fully handed over to the core investor, Transcorp Power Consortium, the government restructured the transaction earlier this year to clear bottlenecks and prepare it for final performance monitoring.
Gbeleyi explained that executing the Performance Agreements is a critical step in Nigeria’s post-acquisition power sector framework. These agreements detail the investor’s commitments, including specific timelines for raising the plant’s operational capacity.
“With the execution of the PAs to regularise the transactions, the BPE can now commence the mandatory post-privatisation monitoring of the core investor’s performance obligations,” he said.
The NCP also reviewed major achievements recorded in 2025, most notably the unbundling of the Transmission Company of Nigeria (TCN) into the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP). According to BPE, the move marks a significant milestone in reforming Nigeria’s power sector.
Shettima Pushes for Major Shift in Privatisation Strategy
Before the Council granted its approval, NCP Chairman and Vice President Kashim Shettima delivered a firm call for Nigeria’s privatisation model to evolve beyond the mere sale of state-owned companies. He argued that Nigeria must now focus on asset optimisation, a strategy he believes is essential for achieving the nation’s trillion-dollar economy aspiration.
Shettima warned that without discipline, vision, and strategic execution, Nigeria’s economic forecasts would remain nothing more than theory.
“Our aspiration to build a trillion-dollar economy is a destination that demands discipline, vision, and absolute adherence to the compass produced by this Council,” he said. “Without such a compass, our economic projections would amount to nothing more than an exercise in theory formation.”
The Vice President described Nigeria’s underutilised land, dormant real estate, and untapped intellectual property as hidden reservoirs capable of transforming the nation’s economic landscape—if properly optimised.
He tasked the NCP with exploring innovative models including:
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Core investor sales tied to stricter performance benchmarks
He added a stern warning on transaction transparency, insisting on zero tolerance for ambiguities that could lead to costly legal battles and damage investor confidence.
Council Members Back Reforms
The meeting drew contributions from key economic and sector leaders.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, praised the BPE for its work so far, urging them to maintain consistency in quality and global best practices.
Other contributors included:
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Minister of Power, Chief Adebayo Adelabu
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Minister of Budget and Economic Planning, Senator Atiku Bagudu
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Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN)
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Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso
Their participation underscored the importance of the Afam power transaction and the broader privatisation agenda in stabilising Nigeria’s power sector and boosting economic growth.
Closing Outlook
The NCP’s latest approval marks a key turning point in the Afam power deal, clearing the path for full performance monitoring and repositioning the plant for higher output.
With Shettima’s push for a shift from asset disposal to long-term, value-driven asset optimisation, Nigeria appears poised to embrace a more strategic phase in its privatisation history—one aimed at unlocking wealth, attracting investment, and powering the country’s quest for a trillion-dollar economy.
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