Transcorp Consortium has acquired 100% of the 966MW installed capacity Afam Power Plc and Afam Three Fast Power Limited (jointly referred to as “Afam GenCo”), at N105.3 billion.
The Afam VI Combined Cycle Power Plant in Rivers State achieved a milestone in May 2012 as it delivered some 10 trillion watt-hour (TWh) of electricity into the National grid since first power in 2008.
The announcement was made at the State House, Abuja on Thursday, November 5, 2020, during the signing ceremony between the Federal Government, represented by Nigerian Vice President, Professor Yemi Osinbajo, and Transcorp Consortium represented by the Chairman of Transnational Corporation of Nigeria Plc (Transcorp), Mr. Tony O. Elumelu.
Recall that Professor Yemi Osinbajo, the National Council of Privatization, had approved the privatization of the Afam Power Plants 1-5 and the restructuring/recapitalization of the Bank of Agriculture during its meeting of August 22–23, 2017 in Abuja.
The major step by NCP is to set a pathway, for the repositioning of state enterprises and ventures, to be viable for the nation.
The Afam power plants privatization is geared towards injecting additional power into the National Grid to improving electricity nationwide.
At the ceremony, Osinbajo, said “Today marks a milestone for the country with a return to private sector investment in the power sector. This investment by Transcorp in acquiring ‘Afam Power Plc’ and ‘Afam Three Fast Power’ is the first of many new investments planned in the sector across the value chain. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.”
The Vice President stated “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. We have no doubt that the addition of Transcorp to the Afam community, will come with the forward thinking Corporate Social Responsibility initiatives that Tony and his team are known for. This transaction is a confirmation of the reform trajectory the Administration is leading in the power sector.”
The Director-General of the BPE, Mr. Alex Okoh, said “Transcorp Consortium is one of the success stories of Nigeria’s Privatisation Programme. Through its investments in Transcorp Hotels Plc and Transcorp Ughelli Power Limited, the consortium has consistently achieved its performance targets as contained in the respective post-acquisition plans.”
The Chairman of Transcorp, Tony O. Elumelu, CON, commended the Federal Government for the role it played in making the acquisition a reality.
“Bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission. Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable of. Power remains the single most critical factor for lifting our people out of poverty and job creation for our teaming youth.
“The acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria. I am honoured to be working with the Federal Government and urge it to continue its policy of creating an enabling environment, that sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek.”
