Who are they?

The take-over of the unbundled PHCN firms has generated issues as to the credibility of those behind the purchases and what they are expected to deliver in terms of capacity handling, stock of manpower and expertise, as well as quality service delivery across their areas of jurisdiction. Local owners of the new power companies are mostly investors who had hitherto been fishing in unrelated business waters, with little or no technical knowledge of how these unbundled power firms operate. But checks showed that in all the cases, local investors have partnered with foreign partners with technical expertise in acquiring the plants and are relying on that expertise to turn the plants round.

Owners of the generation companies are: Amperion Limited for Geregu I Genco, Transcorp/Woodrock for Ughelli plant, Mainstream Energy for the Kainji and Jebba generation company (Genco), North South Power for Shiroro plant, and NEDC/KEPCO alongside its local partner, Sahara Energy Resource Nigeria for the Egbin Genco.

Chief Femi Otedola, Chairman of Amperion Ltd, owner of Geregu I Genco is also the Chairman of Forte Oil, a major player in the nation’s oil and gas sector. Otedola is financing 57% of Amperion’s total equity. Its technical partners are BSG Resources Ltd with 38% and Shanghai Municipal Electric Power Company, 5%. Amperion purchased the PHCN firm for $132 million. It plans to jack up power generation at the Geregu plant to 600mw, a 50% increase, in the short-to-medium term.

Mr Tony Elumelu is Chairman of Transcorp/Woodrock Consortium, which acquired the 972mw capacity Ughelli Power firm at $300million. The former Chief Executive Officer (CEO) of United Bank for Africa (UBA), through his Heirs Holdings Limited, committed a $225m fund through debt financing by African Finance Corporation (AFC), UBA and First City Monument Bank. The new owners plan a massive increase of generation capacity to over 1070mw within the next five years.President/Chief Executive Officer of the Transcorp group, Obinna Ufudo, told Sunday Trust that management plans a three-phase operation of “quick wins, refurbishment and expansion.” He explained the quick wins as involving activities that will immediately address the shortage in available capacity. “Our technical experts have identified a number of small fixes which, when carried out in a relatively short time period of no longer than a year after we take over, will lead to an increase in available capacity,” Ufudo said.Elumelu’s Heir Holdings has been promoting businesses, especially small and medium scale enterprises across Africa since its chairman retired as UBA’s group chief executive officer in July 2010. His Tony Elumelu Foundation, a pan-African “not-for-profit” institution dedicates itself to promoting and celebrating entrepreneurship by enhancing the capacity of African businesses and deploying financial capital through impact investments.Elumelu’s philosophical objective is to, in his words, “prove that the African private sector can itself be the primary generator of economic development.” Transcorp, a publicly listed Nigerian company, is one of the firms Heir Holdings has investments in. With the partnership with Woodrock, an American multi-services firm, Elumelu hopes to add further practical vent to that objective, especially on the home front.

Col. Sani Bello (rtd) is the arrowhead of Mainstream Energy Solutions, which got Kainji and Jebba Generation Company (Genco) for N27.2bn ($170m). The deal was financed by Guaranty Trust Bank and the AFC. Bello is a former military administrator of Kano state. He has also been chairman of MTN in the telecoms sector and Amni Oil and Gas. Mainstream partnered with a Russian company, RusHydro to acquire the plant thereby venturing into a third sector of the Nigerian economy.Niger State Government is one of the owners of the North South Power which acquired the Shiroro generation plant at $111.7 million. Other partners are XS Energy Ltd, BP Investment Ltd, Urban Shelter Ltd, Road Nigeria Plc, China International Water Electric and China Three Gorgers Corporation, the corporation handling the Zungeru 700mw hydroelectricity project in the same Niger state.

Tope Sonubi and Tonye Cole’s Sahara Energy Resource Nigeria is the local partner to the NEDC/Korea Electric Power Company (KEPCO), an international investor that acquired the Egbin Power Station located in Ijede, Lagos state for $407 million. Sonubi and Cole are known players in the oil and gas downstream sector company.

For the distribution companies, KANN Consortium acquired the Abuja Distribution Company (Disco), Vigeo got the Benin Disco, West Power and Gas acquired Eko Disco, NEDC/KEPCO bought Ikeja, while Sahelian Power SPV got the Kano disco. Also, Integrated Energy Distribution and Marketing Company acquired both Ibadan and Yola discos, Interstate Electrics got Enugu, Aura Energy got the Jos disco while the 4Power Consortium comprising Bayelsa, Rivers, Cross River and Akwa Ibom state governments acquired the Port Harcourt disco.

Neil Croucher is Managing Director of KANN Utility Consortium Ltd. The company, a joint venture of Copperbelt Energy Corporation (CEC) Plc and Xerxes Global Investments, acquired 60% of the Abuja Electricity Distribution Company (AEDC) at $164 million. Its technical partner, CEC Zambia has a standing history of providing power solutions to mining companies in Zambia, Congo Democratic Republic and South Africa. As an international firm with the required expertise, it is expected to ensure a complete turnaround of the Abuja Disco within a short term. The disco has a franchise for providing electricity services for the Federal Capital Territory, Kogi, Nasarawa and (parts of) Niger states.

Victor Gbolade Osibodu is the owner of Vigeo Power Ltd which acquired the Benin Disco after paying its 75% balance of $96.75. He is the husband of former Managing Director of Union Bank, Mrs Funke Osibodu. Vigeo, established in 1999, is a multi-business group that includes Global Utilities Management Company (GUMC). GUMC has since been providing services in metering system to the Benin Disco. Vigeo plans an additional N40 billion investment in the next five years to turn around its acquired disco.

Mr Charles Momoh, Chairman of West Power and Gas; Dr Tunji Olowolafe and Mr Ernest Orji lead the ownership of Eko Disco. They are partnering with Siemens Ltd of Germany, the executor of the recently commissioned 434mw Geregu II National Integrated Power Projects (NIPP) under the Niger Delta Power Holding Company (NDPHC); Alpha Consortium Ltd, Atlantic Meridian and Africa Infrastructure Investment Fund 2, Mauritius to form the West Power and Gas Consortium. West Power acquired the Eko Disco after full payment of $135 million. Its management disclosed the expansion and rehabilitation of the plant will take another $257 million.

KEPCO/NEDC Consortium also acquired the Ikeja Distribution Company at $134.75 million, making it the only investor to have a stake in both the generation and distribution sections of the nation’s power sector. Experts said the development raises a major concern as to its efficiency and that monitoring efforts by stakeholders and consumer societies must be doubled to sustain performance.

Former Head of State, Gen. Abdulsalam Abubakar is chairman of Integrated Energy Distribution and Marketing Company (IEDMC), which acquired both the Ibadan and Yola discos for $160 million. The oil and gas company is now venturing into power sector operations with technical partnership with the Manila Electric Company (Meralco), the Philippines largest distributor of electric power. IEDMC was among the earliest firms to complete payment for their respective bids.

Alhaji Yusuf Hamisu Abubakar is the Managing Director of the Sahelian Power SPV that acquired the Kano Disco for $102 million. Abubakar is a Commissioner at the Nigerian Communications Commission (NCC), a one-time Executive Secretary of the Petroleum Development Trust Fund (PTDF) and former lecturer at the University of Nigeria, Nsukka and the Ahmadu Bello University, Zaria. He is also board member at Niger Insurance Company and was said to have once been nominated for a ministerial post by Vice President Namadi Sambo.Sir Emeka Offor, is the Chairman of Interstate Electrics which got the Enugu Disco. He is also chairman of Chrome Energy Ltd majoring in oil and gas services, telecommunications and logistics. Interstate made an entry into the power sector with the acquisition of the Enugu Disco for $106.4m. It could not meet up earlier with the 75% payment deadline and had earlier been recommended by the BPE for disqualification in the bidding process as it could not meet up with its technical requirements. It mentioned its partners as the Power House International and Metropolitan Electricity Authority of Thailand.

Alhaji Mohammed Noma, Chairman of the Aura Energy got the Jos Disco. Noma, a politician, is former speaker, House of Assembly in Bauchi State in the second republic. Aura acquired the disco after paying $82 million.

Governments of Bayelsa, Rivers, Cross River and Akwa Ibom state formed the 4Power Consortium which acquired the Port Harcourt Disco. 4Power, which also has some governors and politicians as investors, is also partnering with other private investors to manage the power assets.

Chairman, Disco Roundtable and pioneering Chairman/CEO, Nigerian Electricity Regulatory Commission (NERC), Dr Ransom Owan lamented in an interview failure of an earlier proposed shadow management period which would have given the investors time for better understanding of the facilities. Owan, however, welcomed the test-running period, saying it would help the firms to cope with familiarisation challenges. He assuaged fears of power outages during the testing period.Owan, who assured consumers of consistency in power supply from the new investors further said, “Consumers should realise we bought PHCN problems. The business has not been making money and performing well. So the new investors’ number one goal is to turn the businesses around, but they will have to carry the consumers along because they (consumers) are the ones to pay.”In a phone chat, Croucher expressed KANN Utilities’ eagerness to see government fulfil the pending Conditions Precedents (CPs) leading to the physical hand-over. He said, “We are legally awaiting the completion of the CPs leading to the physical handover. We are waiting for the CPs to be concluded before we enter.” Croucher assured Abuja electricity consumers that with the vast experience at the investor’s disposal, it will deliver optimum services to them.
Although the investors keep reassuring consumers of delivering the desired heartwarming performance during the testing period and thereafter, experts warned consumers should not be unaware of the many challenges that have been bedeviling power generation and distribution, and should, therefore, not be too expectant. For instance, the north eastern axis which harbours the Yola disco has been experiencing challenges of insurgence and wanton destruction of lives and properties in recent times. Such crises have at one point or the other spread to Kano, Jos, Kaduna and even Niger state, which called for heightening of security apparatus and taking proactive measures by the federal government to forestall further reoccurrences.

The western, southern and eastern axes where other generation and distribution companies are located are also not without their pockets of crises. Concentration of power assets in the hands of private investors comes with security challenges, as private investors in the telecommunication sector are experiencing.Another contending issue is that of adequate gas infrastructure and gas supply to power the generators. Vandalism in recent times has accounted for shutdown of power plants like Afam IV, Okpai, thereby reducing the already fluctuation 4000mw total grid to less than 2000mw.

The Federal government, which has been showing commitment to tackling the problem, will need to do more, especially on enhancing the operations of the Gas Aggregation Company of Nigeria (GACN) and adhering to the already available gas supply and infrastructure development policies.Government will also need to ensure hitch-free transmission, as there can be no distribution without a mediating transmission from the generating companies. Government recently recruited 522 engineers for the Transmission Company of Nigeria (TCN), reconstituted the boards and empowered the consultant, Manitoba Hydro International for a turnaround in transmission.
Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi urged government to complement its efforts with requisite corporate governance to achieve optimal result in the transmission company.

While responding to the challenges in the metering and tariff system, Amadi stated that the current tariff system, the Multi Year Tariff Order (MYTO) 2 which the new investors are to comply with, is consumer-friendly. He had earlier disclosed plans by government to assist in an effective metering system for the new investors to ensure that power consumed is fully paid for, adding that a new electricity code will be unveiled soon to tackle problems recorded in the defunct PHCN. With these regulations on ground, the new investors are expected to start test-running immediately, while awaiting the declaration of the Transition Electricity Market (TEM) within the shortest time. The public expect regulators to adequately assess operations of the new investors during the test-run period with a view to ensuring prompt intervention towards achieving uninterrupted power supply.-{Sunday Trust}

Am I the only one asking why the water corporation/Board have not been Privatised?

Your guess is as good as mine.

Vandalism is going to be a big problem for these investors. The generator and petrol sellers are going to cause a lot of frustration for them going forward, and with their local assets (transformers etc) even more accessible than perhaps Telecom masts, they will face a bigger challenge.

geeez: No one from the SE?

I'm not sure if this was done along ethnic lines, but if you look closely, there are a couple of Igbo names (former UBA guy, and a couple others). But as with most things in Nigeria, the Igbos have been quietly shifted to the periphery either by design (I doubt), or just by the socio-political reality of the country (more likely).

It never pays to make too much noise in Nigeria. Even if an Igbo man was given a knife and asked to share the electricity cake, even he would have found it difficult to give anything to an Igbo-owned company in the North or Southwest. You see Abdusalami cornered Ibadan, but Yorubas would not bat an eye lid over that. It's business. But if he had been an Igbo man, there would be some disquiet, because of fear (irrational) of long term industrial sabotage and the likelihood that in a few years time, the Igbo guy would announce to the world that he brought electricity to Ibadan. I guess it is fair to say Igbos would be up in arms if the Enugu disco was awarded to a Yoruba-owned company. Country is messed up, I tell yah!

Another reason is that, when all is said and done, and the noise from all quarters are put aside, I suspect the big money in Nigeria is actually in the hands of the Hausas. The Yorubas - even if they don't have the raw cash, they have the quiet deal-making capacity to put something together. The Igbos - should have several individuals who can raise these sought of money, but they are generally not the best at putting together a sophisticated deal involving multi-parties - they are simply too individualistic.

As for the Ijaws, some of whom I understand are absolutely swimming in money right now, I think there are probably too few of them with the 'capacity' to handle a business of this complexity. Coming into sudden money and having a credible business pedigree to handle stuffs like these are two different things.

Just my opinion. No fight o.

Emeka offor bought Enugu disco but remain controversial

geeez: No one from the SE?

Sir Emeka Offor, is the Chairman of Interstate Electrics which got the Enugu Disco. He is also chairman of Chrome Energy Ltd majoring in oil and gas services, telecommunications and logistics. Interstate made an entry into the power sector with the acquisition of the Enugu Disco for $106.4m. It could not meet up earlier with the 75% payment deadline and had earlier been recommended by the BPE for disqualification in the bidding process as it could not meet up with its technical requirements. It mentioned its partners as the Power House International and Metropolitan Electricity Authority of Thailand.

Nigerians get ready to pay bills western style. I don't mind though I rather pay them then listen to that freaking ear splitting generators. I hope they can keep the resident bills reasonable. I wonder if they will keep the current system of payment as in Enugu with the card. We are going to have to start paying for what we praying for. Water, trash pick up and electricity 24 hours cost about 30,000 - 50,000NGN per house hold in the states. Y'all ready

geeez: No one from the SE?

Emeka Offor = Enugu Disco
Ernest Orji = Eko Disco ( joint ownership)

I am happy , Nigerians bought these company,though not so happy that majority of them stole our money to buy.

There are a few genuine business men on the list

geeez: No one from the SE?

u think this is enuf make me not to bliv that the vast majority of hausas n many Yorubas are poor?

many Igbo ppl can buy those tnz u know but these tnz r rather political than individual.
so, fret not

See my people.
Them no buy anything pass Benin .

The crooked and corrupt jokers sold 972mw capacity Ughelli Power firm at $300million

The crooked and corrupt jokers are now borrowing $1.5 billion to build a common 700mw power plant which is destined to be sold to their cronies pennies..


Only in Nigeria....

DeLaRue:

I'm not sure if this was done along ethnic lines, but if you look closely, there are a couple of Igbo names (former UBA guy, and a couple others). But as with most things in Nigeria, the Igbos have been quietly shifted to the periphery either by design (I doubt), or just by the socio-political reality of the country (more likely).

It never pays to make too much noise in Nigeria. Even if an Igbo man was given a knife and asked to share the electricity cake, even he would have found it difficult to give anything to an Igbo-owned company in the North or Southwest. You see Abdusalami cornered Ibadan, but Yorubas would not bat an eye lid over that. It's business. But if he had been an Igbo man, there would be some disquiet, because of fear (irrational) of long term industrial sabotage and the likelihood that in a few years time, the Igbo guy would announce to the world that he brought electricity to Ibadan. I guess it is fair to say Igbos would be up in arms if the Enugu disco was awarded to a Yoruba-owned company. Country is messed up, I tell yah!

Another reason is that, when all is said and done, and the noise from all quarters are put aside, I suspect the big money in Nigeria is actually in the hands of the Hausas. The Yorubas - even if they don't have the raw cash, they have the quiet deal-making capacity to put something together. The Igbos - should have several individuals who can raise these sought of money, but they are generally not the best at putting together a sophisticated deal involving multi-parties - they are simply too individualistic.

As for the Ijaws, some of whom I understand are absolutely swimming in money right now, I think there are probably too few of them with the 'capacity' to handle a business of this complexity. Coming into sudden money and having a credible business pedigree to handle stuffs like these are two different things.

Just my opinion. No fight o.

y is it dat u yorubas develop mengites wen u hear ibo.let me make it clear d ibos rd greater dam yorubas nd face it dia is no competitn in destiny.if ure lokng for who to knock superorty horns wit i tnk ur felow rbms nd noise makers lyk ur tribe re up north.for u hypocriticle mind emeka off6r bougt d enugu disco nd hes nt an ijebu man.he is ibo.mugu

DeLaRue:

I'm not sure if this was done along ethnic lines, but if you look closely, there are a couple of Igbo names (former UBA guy, and a couple others). But as with most things in Nigeria, the Igbos have been quietly shifted to the periphery either by design (I doubt), or just by the socio-political reality of the country (more likely).

It never pays to make too much noise in Nigeria. Even if an Igbo man was given a knife and asked to share the electricity cake, even he would have found it difficult to give anything to an Igbo-owned company in the North or Southwest. You see Abdusalami cornered Ibadan, but Yorubas would not bat an eye lid over that. It's business. But if he had been an Igbo man, there would be some disquiet, because of fear (irrational) of long term industrial sabotage and the likelihood that in a few years time, the Igbo guy would announce to the world that he brought electricity to Ibadan. I guess it is fair to say Igbos would be up in arms if the Enugu disco was awarded to a Yoruba-owned company. Country is messed up, I tell yah!

Another reason is that, when all is said and done, and the noise from all quarters are put aside, I suspect the big money in Nigeria is actually in the hands of the Hausas. The Yorubas - even if they don't have the raw cash, they have the quiet deal-making capacity to put something together. The Igbos - should have several individuals who can raise these sought of money, but they are generally not the best at putting together a sophisticated deal involving multi-parties - they are simply too individualistic.

As for the Ijaws, some of whom I understand are absolutely swimming in money right now, I think there are probably too few of them with the 'capacity' to handle a business of this complexity. Coming into sudden money and having a credible business pedigree to handle stuffs like these are two different things.

Just my opinion. No fight o.

You r right fundamentally, but what has to be noted here is the fundamentals of why it is so,
After the civil war, when the entire foreign owned corporate world was privatized by Awolowo, only the Yorubas had the capacity to buy into this, after almost 40 years of training, their skills in the corporate world should be far higher,
This is one of the key reasons people like me will keep fighting for resource control, the corporate oil world industry should be in the hands on the Niger delta, that will be one of the fastest routes for our development.

Militants or politicians running into cash cannot be a substitute for the training you get when you pass through the four walls of the corporate world!

ikwere militant: y is it dat u yorubas develop mengites wen u hear ibo.let me make it clear d ibos rd greater dam yorubas nd face it dia is no competitn in destiny.if ure lokng for who to knock superorty horns wit i tnk ur felow rbms nd noise makers lyk ur tribe re up north.for u hypocriticle mind emeka off6r bougt d enugu disco nd hes nt an ijebu man.he is ibo.mugu

Nairaland needs a zoo section so that animals like this can also feel at home.

FG is just making some set of people to be more richer!

Akin-David:
Am I the only one asking why the water corporation/Board have not been Privatised?

Your guess is as good as mine.

Mr McJay:

Nairaland needs a zoo section so that animals like this can also feel at home.

Akin-David:
Am I the only one asking why the water corporation/Board have not been Privatised?

Your guess is as good as mine.

are u lackng company in ur ibadan zoo apartment .relax i wil send u ur brodas to be migratd frm yankari to ibadan zoo for family reunion

DeLaRue:

I'm not sure if this was done along ethnic lines, but if you look closely, there are a couple of Igbo names (former UBA guy, and a couple others). But as with most things in Nigeria, the Igbos have been quietly shifted to the periphery either by design (I doubt), or just by the socio-political reality of the country (more likely).

It never pays to make too much noise in Nigeria. Even if an Igbo man was given a knife and asked to share the electricity cake, even he would have found it difficult to give anything to an Igbo-owned company in the North or Southwest. You see Abdusalami cornered Ibadan, but Yorubas would not bat an eye lid over that. It's business. But if he had been an Igbo man, there would be some disquiet, because of fear (irrational) of long term industrial sabotage and the likelihood that in a few years time, the Igbo guy would announce to the world that he brought electricity to Ibadan. I guess it is fair to say Igbos would be up in arms if the Enugu disco was awarded to a Yoruba-owned company. Country is messed up, I tell yah!

Another reason is that, when all is said and done, and the noise from all quarters are put aside, I suspect the big money in Nigeria is actually in the hands of the Hausas. The Yorubas - even if they don't have the raw cash, they have the quiet deal-making capacity to put something together. The Igbos - should have several individuals who can raise these sought of money, but they are generally not the best at putting together a sophisticated deal involving multi-parties - they are simply too individualistic.

As for the Ijaws, some of whom I understand are absolutely swimming in money right now, I think there are probably too few of them with the 'capacity' to handle a business of this complexity. Coming into sudden money and having a credible business pedigree to handle stuffs like these are two different things.

Just my opinion. No fight o.

Good job vilifying the Ijaws there. Only God will reward you.

Shame on you for not knowing that Tonye Cole of Sahara Energy is Ijaw. Also, the control of 4Power Company by Niger Delta states has strong Ijaw presence from the Rivers & Bayelsa, and to some extent Akwa Ibom.

Even the man in charge of the whole process- Atedo Peterside is Ijaw.

May you remain blind to the progress of the Ijaws forever!

If they like let change the nomenclature 1million times, they will always be called NEPA as far they cant gives us 247 power supply.

Th BIG question is what and where will the money realized from the sale of these assets go? The retardeenic GEJ government is far too corrupt and my guess is he will loot most of these money and certainly has shares or major shareholding in these privatized companies.

Sloan: Th BIG question is what and where will the money realized from the sale of these assets go? The retardeenic GEJ government is far too corrupt and my guess is he will loot most of these money and certainly has shares or major shareholding in these privatized companies.

You think President Jonathan is like your corrupt & clueless Obasanjo?

Sloan: Th BIG question is what and where will the money realized from the sale of these assets go? The retardeenic GEJ government is far too corrupt and my guess is he will loot most of these money and certainly has shares or major shareholding in these privatized companies.

Sadly a huge chunk of that money is been used to pay PHCN workers their severance package..the rest is been used to capitalize the Bulk trader and also to upgrade the transmission network

agbameta: The crooked and corrupt jokers sold 972mw capacity Ughelli Power firm at $300million

The crooked and corrupt jokers are now borrowing $1.5 billion to build a common 700mw power plant which is destined to be sold to their cronies pennies..


Only in Nigeria....

Learn to distinguish between a gas power plant which have undergone some loss in its initial value and building of a brand new Hydro power plant ..

All we needed is steady light and if there's cheating in their dealings the public will not hesitate to show them pepper

I am still a little skeptical about the ownership and the cost at which these plants were sold. It is kinda early to speculate. Sumn tells me this will most likely go the 'Nigerian' way, but I sincerely hope the gut feeling I am having shall be proven wrong in big way.

awodman:
Learn to distinguish between a gas power plant which have undergone some loss in its initial value and building of a brand new Hydro power plant ..

Ode, it lost value because it's pumping out 100 MW instead of the installed 972MW?


What a dullard.