The Vice President of Nigeria, Prof. Yemi Osinbajo has commissioned the Afam3 Fast Power 240-megawatt (MW) turbine in Rivers state. The project, which was executed in collaboration with General Electric and the Federal Government, will boost power generation and supply in the country. The project is expected to add 966 MW of electricity to the country’s national grid.
During his keynote address at the commissioning of the Afam 3 Fast power 240-megawatt (MW) turbine inauguration in Rivers state on Tuesday, May 9, 2023, VP Osinbajo noted that the Afam 3 Fast Power project was executed by Transcorp Power, which is a viable investor in Nigeria’s electricity sector.
According to him, the company’s Ughelli power plant has just been delisted from the privatization monitoring initiative of the Bureau of Public Enterprise (BPE) and has shown itself to be an outstanding investor in the country’s power sector.
Prof. Osinbajo noted further that the Buhari administration has worked to increase power supply in the country with a range of projects. He said:
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“In 2020, electricity subsidies reached N584 billion, but service-based tariffs have led to a doubling of collection in the Nigeria Electricity Supply Industry (NESI) from N40 billion in 2020, to N80 billion in the first quarter of 2023.
“If this trajectory continues, the Nigeria Electricity Supply Industry will be able to pay for itself. Our administration has also created programs for off-grid for electrification. Rural Electrification Agency (REA) now has the capacity to provide electricity supply on a first-class basis.
“We are on track to electrify all Nigerians in the next decade. However, we will not make progress if our gas supply does not improve. The gas supply challenges are hampering improvements.”
Prof Osinbajo went further to commend General Electric, the National Council on Privatization as well as the host communities for the project which will increase the country’s power supply capacity.
In November 2020, the federal government and the Transcorp Power Consortium signed a share sale and purchase agreement in relation to Afam Power Plc and Afam 3 Fast Power Limited, which is expected to add 966 megawatts of electricity to the national grid. The National Council on Privatization approved the privatization of the Afam Power Plant at its meeting held on August 22 and 23, 2017.
Following the approval, a competitive bidding for the plant, involving 12 prospective investors, was held with Transcorp Power Consortium emerging as the preferred bidder with a combined offer of N105 billion.