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A Brazilian Company Offers To Buy PHCN For $100 Billion by gfus: 10:09pm On Aug 25, 2011
Brazillians Want To Buy Phcn For $ 100 Billion

A Brazilian company has offered to buy the Federal Government’s stake in 17 Power Holding Company of Nigeria (PHCN) successor companies for 100 billion dollars (N15 trillion), Prof. Barth Nnaji, the Minister of Power, said.

Nnaji made the fact known in Lagos on Thursday at the 2011 Annual Conference of the National Association of Energy Correspondents (NAEC).

“A Brazilian company, for instance, has offered to buy the Federal Government’s stake in the 17 PHCN successor companies for 100 billion dollars  (N15 trillion),” he said.

http://www.livenigeriapost.com/2011/08/25/brazillians-want-to-buy-phcn-for-100-billion/
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ak47mann(m): 10:43pm On Aug 25, 2011
so what is the next move we are tired of this power problem in nigeria angry
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 11:18pm On Aug 25, 2011
They do not dare sell angry
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ektbear: 11:32pm On Aug 25, 2011
That is a lot of money. Didn't think the assets were worth that much. This is all the PHCN power plants + distribution companies, right?
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 11:38pm On Aug 25, 2011
ekt_bear:

That is a lot of money. Didn't think the assets were worth that much. This is all the PHCN power plants + distribution companies, right?
Yes, the scary part is when these so called investors will try to get their money back to service the loan with which they sealed this deal. I really hope they don't sell it to them.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by U1(m): 2:05am On Aug 26, 2011
Make them kuku sell the thing comot, abeg. angry
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:09am On Aug 26, 2011
U1:

Make them kuku sell the thing comot, abeg. angry
And you go kuku pay the new tariff. Talking before thinking
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by toblosky(m): 2:14am On Aug 26, 2011
U1:

Make them kuku sell the thing comot, abeg. angry
blink182:

And you go kuku pay the new tariff. Talking before thinking
grin grin grin grin grin grin grin
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:19am On Aug 26, 2011
the money too much!
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:23am On Aug 26, 2011
Toaskarity:

the money too much!
If they like they should pay $1trn that is not my business, what bothers me is the monopolistic tendencies that abound
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by premechaz: 2:30am On Aug 26, 2011
ekt_bear:

That is a lot of money. Didn't think the assets were worth that much. This is all the PHCN power plants + distribution companies, right?


Thank you for this insight. I assume you know PHCN more than the Brazilians and definitely more the Barth Nnaji. If I may ask, how much do you think PHCN is worth?
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Afam4eva(m): 2:33am On Aug 26, 2011
I think the should sell it. Anything is better than the current situation.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by premechaz: 2:38am On Aug 26, 2011
afam4eva:

I think the should sell it. Anything is better than the current situation.


I agree with you. If our Black brain cant do it, we should at least have the decency to sell it to the Brazilians. BTW, Brazilians are really smart people. They invented the automatic gear, invented the technology used in converting corn to ethanol on a large scale, maybe they can revive our energy sector, HOPEFULLY.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Afam4eva(m): 2:41am On Aug 26, 2011
If the brazillians can spend that much om PHCN then it means the days of power outage will soon be over. Other power companies should also be allowed to come into the scene so there will be competition like it is in the telecommunication sector.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by 1forall: 2:42am On Aug 26, 2011
Going by the history of public sector privatization in Nigeria, I don't expect it to work. The saboteurs are real and powerful institutions. . . they're like principalities by themselves.

Till today NITEL's status cannot be explained. If someone has an idea he should please explain.

Irresponsible leadership, we have nurtured a culture of shifting away our responsibilities and now we just can't do ANY thing right.

I sure say na that $100b just dey scratch all of dem ear with no bother about what happens after the deal is sealed, and that is if it happens 'cos I don't trust the major beneficiaries of this national darkness shall take this move standing.

Isn't an entire nations electricity supply too strategic a resource to just handover to a foreign organization?

And what's the plan for the $100b?
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ShipIt(m): 2:42am On Aug 26, 2011
Nigeria should not sell! Period, People should think before they comment, what do you think is going to happen if foreigners own the entire country's power infrastructure? In addition to Nigeria's inept regulatory agencies. I personally do not wish to be a colonized all over again by different means. We need to stop thinking foreigners are the answer to all our problems, that's partly how we got to our current situation in the first place.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ektbear: 2:44am On Aug 26, 2011
premechaz:

Thank you for this insight. I assume you know PHCN more than the Brazilians and definitely more the Barth Nnaji. If I may ask, how much do you think PHCN is worth?

I don't know PHCN more than either of them. However, I don't think 6 or 7GW worth of generating capacity is worth $100 billion. I looked at some brand new power projects on a power industry website and I was seeing way different prices.

See this for example: http://www.power-eng.com/articles/2011/08/gas-fired-power-plant-purchased-by-exelon.html

Scaling up, $420 million per GW. So the at most 10 GW Nigeria has capacity now for is worth let's say $4.2 billion. Even scale it up by 5 to account for factors we've not taken into account, this is roughly $20 billion. So I guess most of the value is in the distribution network and monopoly, not the power plants?

Anyway, I'm not claiming to know the answers, I'm just a bit surprised and to be honest suspicious.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:47am On Aug 26, 2011
ShipIt:

Nigeria should not sell! Period,  People should think before they comment, what do you think is going to happen if foreigners own the entire country's power infrastructure? In addition to Nigeria's inept regulatory agencies. I personally do not wish to be a colonized all over again by different means. We need to stop thinking foreigners are the answer to all our problems, that's partly how we got to our current situation in the first place.
I rest my case. Most people lack an indepth understanding of what will happen should this deal be sealed. If they think the recent hike in tariff was something, they should wait for the price hike that will follow the success of this deal
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Afam4eva(m): 2:49am On Aug 26, 2011
@Shiplt
And what is wrong with a foreign company owning PHCN.We've been living in darkness for ages and this is the best you could come up with? At times I wonder what Nigerians want.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ekubear1: 2:50am On Aug 26, 2011
premechaz:


Thank you for this insight. I assume you know PHCN more than the Brazilians and definitely more the Barth Nnaji. If I may ask, how much do you think PHCN is worth?



Previous post gobbled by the spam filter.

In a nutshell, I think we can estimate the value of the power plants pretty weill by comparing with existing power projects elsewhere, right? Doing so, I don't think the PHCN power plants are worth more than $10 or 20 billion. Who knows, maybe the discos are with $80 billion collectively. Sounds like a high price to me. I'm skeptical.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:51am On Aug 26, 2011
afam4eva:

@Shiplt
And what is wrong with a foreign company owning PHCN.We've been living in darkness for ages and this is the best you could come up with? At times I wonder what Nigerians want.
You got him wrong, be slow to critique so you don't undo yourself
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by reindeer: 2:52am On Aug 26, 2011
If there's a price hike and it is always available, people will groan but the economy and the environment(and by extension, health) will be better off for it.
Compared to what obtains now where you pay monthly and get nothing, no customer service, insults and still have to pay exhorbitantly to fuel your generators and service them.
Im sure most people will still pay because if you calculate all you spend in a year on fuel and not having to worry about having generating sets.
Make dem sell am abeg, People who will invest such an amount will make sure it works, thats the only way their investment can be recouped.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:55am On Aug 26, 2011
reindeer:

If there's a price hike and it is always available, people will groan but the economy and the environment(and by extension, health) will be better off for it.
Compared to what obtains now where you pay monthly and get nothing, no customer service, insults and still have to pay exhorbitantly to fuel your generators and service them.
Im sure most people will still pay because if you calculate all you spend in a year on fuel and not having to worry about having generating sets.
Make dem sell am abeg, People who will invest such an amount will make sure it works, thats the only way their investment can be recouped.
Will you pay whatever you are charged? Remember the power of a monopoly.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by premechaz: 2:55am On Aug 26, 2011
ShipIt:

Nigeria should not sell! Period,  People should think before they comment, what do you think is going to happen if foreigners own the entire country's power infrastructure? In addition to Nigeria's inept regulatory agencies. I personally do not wish to be a colonized all over again by different means. We need to stop thinking foreigners are the answer to all our problems, that's partly how we got to our current situation in the first place.

Maybe we should go back to the stone age then. As far as I know, Nigerians did not invent electricity. Even though you dont want to be colonized, you already are, because internet was invented by the foreigners, and it is still being controlled by the Americans.


The point is that, you are right. it is colonization, but a good one for that a matter.

There is nothing wrong with colonization,  i don't get why you are fighting colonization now, when Shell  and other foreign coys control your only source of income, OIL. Stop being delusional, little boy.

As far as I am concerned, I'd rather be colonized by whoever/whomever and have 24/7 electricity than be free and have no access to the finer things of life. And yes 24/7 electricity is one of the finer things.

It is obvious we cant do it ourselves. The Chinese and the Russians helped build our space rockets, the Americans are in control of our oil, the Asians send us food, the Germans  in control of our transportation, it wont kill us to have the Brazilians take over our power sector. After all, We have proven ourselves to be incompetent and incapable of running our country.

To me, good life first, pride second. And what pride are we even talking about?
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:57am On Aug 26, 2011
I'm out of here, when foresight is attained, I will be back.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ekubear1: 3:04am On Aug 26, 2011
People seem to be talking past each other here a bit.

Basically, the point I, blink182 and others have made is pretty simple. If someone is offering you BUY a monopoly over you and it seems like the price is too good to be true, then they'll likely extract their money back from you buy abusing their monopoly powers. If they have to gouge you on electricity price in order to pay back the loan they used to buy PHCN or to satisfy their investors, what recourse will you have? It isn't as if you can change electricity suppliers the same way you change your source of rice or bread, right?

This is why I think it is important to understand if the PHCN assets are really worth anything close to $100 billion right now.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by premechaz: 3:09am On Aug 26, 2011
Monopoly is good for Nigeria, especially in the power sector.


Who is scared of monopoly? Not Nigerians. And BTW, there are alternatives. Ever heard of generators. Who cares what they extract from us. All we are saying, we dont like darkness.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 3:12am On Aug 26, 2011
If this kind of fire sale goes through

Undoubtedly there would be perks involved

End result is arbitrary price burden passed to consumers

No way PHCN is worth a tenth even of the stated amount.  undecided
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 3:18am On Aug 26, 2011
This is always our second problem, too much fear of something new. It's sad many of the people still haven't understand what privatization means. Anyway, there are many countries which power supplies are solely based on private provisions and are  stable.

Somebody is too quick to say they shouldn't sell it and the reason for that is just for monopoly! I do know what it means to have a stable power supply in any nation and in Nigeria case things will get better. If the govt. couldn't fix the problem why waste time and money when the private sector can? Somebody gave an instance with the telecommunication sector and something like that need to take place in the power sector. The erratic system is too bad for the economic and the present generation - for the sake of the future of the nation development.

The govt. can as well allow other companies to get involved. Also provide subsidy because of too many poor Nigerians among who are already complaining. This set of people would like to use electricity without paying their bills, they are also the ones who don't know how to conserve energy. That would be a great lesson for  them on energy conservation. Waste energy and pay a huge bill !

It's about time to address the epileptic power issue, through privatization and given of licenses to other power companies. Shell have their own plants, some states of Nigeria do too, ect. I don't know why people are so scared of this privatization thing.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by premechaz: 3:25am On Aug 26, 2011
donspony:

If this kind of fire sale goes through

Undoubtedly there would be perks involved

End result is arbitrary price burden passed to consumers

No way PHCN is worth a tenth even of the stated amount.  undecided

You dont get it, do you?

There is no monopoly here. They are offering to make PHCN more effective, what is wrong with that. If others are interested, they should apply and should be ready to build tier transmission lines, step down stations etc from the ground up.

The price burden wont be arbitrary, the market would regulate the price, even in a situation like this. Monopoly is not that bad. The US does the same thing, why cant we copy the Americans
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by ShipIt(m): 3:26am On Aug 26, 2011
@ premechaz and afram4eva

I may be a YOUNG MAN but it is obvious I am much more developed than you mentally and intellectually. If you see all those dependencies you mentioned as a positive thing then you are even thicker than you sound. Just because Nigeria has been raped by foreigners since independence does not mean it should open it's legs wider for other foreigners to enjoy it. Nobody is against dealing with foreigners, but there has to be a balance. And handing over a nations power infrastructure to a foreigner ( with a racist mentality at that) is just foolish. You rather be colonized you say? Then migrate to the west and live as a second or third class citizen for the rest of your life, at least you ll have electricity 24/7. As long as you pay your bill that is. I bet your one of those people who have given up on Nigeria and dot even get angry anymore when you see leaders pushing our sovereignty away. I bet you would rather go to the west, marry the ugliest woman you can find just for Kwali, and be her b***h even though you know your better than that. All because you are a quitter who doesn't realize that the better countries got better by facing their problems instead of just blaming others and running away. It's your country and no foreigner is gonna do anything in your interest. If you still want to hear more, reply me nonsense again.
Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Jenifa1: 3:29am On Aug 26, 2011
blink182:

Will you pay whatever you are charged? Remember the power of a monopoly.

if electricity becomes stable, demand will become inelastic (whether due to force or out of necessity) and people will pay whatever they are charged. Brazil will in essence be carting away billions annually from us.

it doesn't even matter what the lay folks think. The real question should be why the government will be willing to even consider such an offer. Besides making huge exploitative sums of money from us, Brazil will also have the power to shut down Nigerian government just by turning off the switch!
They will control our power in every sense of the word  lipsrsealed.



@premechaz,
you really sound like a fool. no offense.

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