The National Council on Privatisation on Thursday approved the request by the Bureau of Public Enterprise to proceed with its engagement with Transcorp Power Consortium for the execution of the Performance Agreements on the sale of Afam Power Plc and Afam III Fast Power Limited. According to officials, the goal is to regularise outstanding conditions and operational targets in the post-acquisition plan and ensure long-term commercial viability of the power plant, which is considered a key national energy asset.
This development came as the Chairman of the Council and Vice President Kashim Shettima called for a major shift in Nigeria’s privatisation agenda, stressing that the country must move beyond selling state-owned enterprises and begin focusing on asset optimisation capable of helping Nigeria achieve its trillion-dollar economy ambition.
The approval followed a memo presented by the Director General of the Bureau of Public Enterprise, Ayodeji Ariyo Gbeleyi, during the Council’s third meeting held at the Presidential Villa, Abuja. Gbeleyi said the Federal Government had completed the sale process of the Afam Power Plant, confirming that N53.9 billion had already been collected as privatisation proceeds.
He explained that although the asset has been fully handed over to Transcorp Power Consortium, the government restructured parts of the transaction this year to align with emerging needs in the power sector. He noted that the sale, completed in November 2020, required the execution of Performance Agreements, which are a standard part of Nigeria’s post-acquisition framework. These agreements outline specific commitments by the investor, including clear performance benchmarks and timelines for increasing the plant’s operational capacity.
Gbeleyi added that the execution of these agreements now allows the Bureau to begin mandatory post-privatisation monitoring of the investor’s performance obligations. He also briefed the Council on the Bureau’s activities in 2025, noting achievements such as the unbundling of the Transmission Company of Nigeria into two separate entities: the Nigerian Independent System Operator and the Transmission Service Provider.
“As you heard at the meeting, the unbundling of the Transmission Company of Nigeria into two entities, Nigerian Independent System Operator, as well as the Transmission Service Provider, was achieved in the course of this year,” he said.
Before the approval was granted, Vice President Shettima strongly advocated a redesign of Nigeria’s privatisation strategy. He said Nigeria must shift from simply selling public enterprises to embracing asset optimisation that can unlock new revenue streams and support economic growth.
He urged Council members to maintain discipline and clarity of purpose, warning that without a strategic approach to managing national assets, the country’s economic projections would remain theoretical.
“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. Without such a compass, our economic projections would amount to nothing more than an exercise in theory formation,” he said.
Shettima proposed that the Council focus on unlocking value from Nigeria’s dormant assets, describing them as an untapped reservoir of wealth. He mentioned underutilised land, dormant real estate, and unused intellectual property as areas that could attract major investment if properly managed.
He added that the Council must replace bureaucracy with commercial agility, reduce the cost of subsidising inefficient state enterprises, and provide investors with a transparent and reliable system. “The necessity of this Council has never been in doubt. We replace bureaucratic bottlenecks with commercial agility, relieve government of the costly burden of subsidising inefficient state-owned enterprises, and attract vital investment,” he said.
To drive this new direction, the Vice President instructed the Council to explore modern investment models, including long-term concessions, asset-backed securitisation, and core investor sales tied to strict performance benchmarks. He further warned that all transactions must be free of ambiguities to avoid costly litigation and send a strong signal of stability to global investors.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, commended the BPE team and emphasised the need for continued commitment to international best practices.
Other contributors at the meeting included the Minister of Power, Adebayo Adelabu; the Minister of Budget and Economic Planning, Atiku Bagudu; the Attorney General of the Federation, Lateef Fagbemi; and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.
