Reps to probe BPE over Geregu, Afam Plants, others from 2019-2023

The House of Representatives on Tuesday, unanimously adopted a motion moved by Hon. Hassan Shehu Hussain of the NNPP, Kano, mandating its Committee on Privatization and Commercialization to investigate the activities of the Bureau of Public Enterprises (BPE) from 2019–2023, during the second tenure of former President Muhammadu Buhari.

The House also mandated the Committee to probe the BPE’s privatisation of 29 percent of residues of the federal government’s shares in the Geregu Power Plant to the core investors to upgrade it to a combined cycle for a total sum of N13,134,375,000 in 2019 and during the period under review,

While presenting the motion, Hussain noted that during the period under review, about 80 public enterprises were privatised through various modes of privatisation including core investors, concessions, assets sales, and initial public offers (IPO), among others.

“BPE, without the investors fulfilling their obligations to upgrade the plant to a combined cycle, sold an additional 20 percent of the balance of shares meant for IPO to the Nigerian public on the Nigerian Stock Exchange (NSE) to the same investor in 2021,” Hussain said.

The lawmaker also expressed worry that the Geregu Power Plant may never be upgraded to a combined cycle by the investors since BPE has removed the Public Enterprises from Post Privatization Monitoring.

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“The Geregu Power Plant may never be upgraded to a combined cycle by the investors since BPE has removed the public enterprises from post-privatization monitoring.

“The balance of N78bn between Afam Power and Afam Three Fast Power remains outstanding though, the parties signed the Share Sale Purchase Agreement in 2020 and only 25 percent of the purchase consideration was paid and a 100 percent handover to investors on the condition that the balance will be paid upon commissioning of the Afam Three Fast Power which was equally done by former Vice President, Professor Yomi Osinbanjo before leaving office.”

Hussain added that his worries were further fueled when the Federal Ministry of Justice blocked the signing of the Zungeru Power Plant Concession Agreement, which would have generated $350 million US Dollars in concession fees on the ground that there was no express approval by the Federal Executive Council (FEC).

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