Transcorp’s N105bn AFAM Genco Acquisition Raises Capacity To 1,936mw

The Federal Government through the Bureau of Public Enterprises (BPE) and the National Committee on Privatisation (NCP), on Thursday, sold its entire stake in AFAM Power Generation Company (Genco) to Transnational Corporation of Nigeria Plc (Transcorp).

With the Privatization of Afam Power Plc and Afam 3 Fast Power Limited, Transcorp which is the core investor in the Abuja Hilton (now Transcorp Hilton) and Ughelli Genco, is now positioned to become Nigeria’s largest electricity producer.

The new plants acquired for N105bn have a combined capacity of almost 1,000MW, shooting generation capacity to 1,936MW, in addition to the 972mw present capacity of its Ughelli Genco.

The various parties to the transactions signed the Share Sale Purchase Agreement (SSPA), with the Federal Government team led by Vice President of Nigeria, Prof Yemi Osinbajo, chairman of the National Privatisation Council.

Other members of the FG team who signed the SPA at the State House included the Director-General of Bureau of Public Enterprises (BPE), Alex Okoh.

In a series of tweets on its official handle, Transcorp said the acquisition of “Afam GenCo, a natural-gas-fired power generation facility in Oyigbo, Rivers State with a combined installed capacity of 966 mega watts,” is in line with its aspiration to generate 25% of Nigeria’s electricity requirements.

The Vice President expressed confidence at the “the opportunity that the Transcorp acquisition can bring,” while Tony Elumelu, chairman of Transcorp Plc said the sale is an expression of private sector confidence in the reforms of the Muhamadu Buhari administration.

The main objective of developing a power sector that will steadily deliver quality service and sustain itself, a statement by the office of the Vice President, quoted Osinbajo as saying, “is on track with the successful acquisition of Afam Power Plc and Afam Three Fast Power, by the Transcorp Consortium.”