OrderPaperToday – The House of Representatives on Wednesday urged the National Council on Privatisation (NCP) to immediately suspend the process of privatizing Afam power Plc.
The House wants a completion of the repairs of phases 4 & 5 machines as well as the construction and rehabilitation of Afam power plant road being undertaken by Federal Roads Maintenance Agency (FERMA) to enhance its value.
The House also mandated its committee on Privatisation and Commercialization to invite the Director General (DG) of Bureau of Public Enterprises (BPE) to ascertain the status of the transaction with a view to investigating same and report back within four (4) weeks.
The matter was sequel to a motion moved by Mr. Ayodeji Oladimeji (APC, Oyo) that BPE plans to privatize Afam power plant.
According to him, “the Sapele power Plc and the Ughelli power Plc were privatised by the BPE in 2013 in the same manner as the planned privatisation of Afam power Plc and both are now in dire financial constraints along with the other generating companies, resulting in the Central Bank of Nigeria (CBN) intervention with N701 billion payment assurance guarantee due to expire in December, 2018.”
He further expressed concern that the generating companies are still faced with problems of lack of gas and weak infrastructure which cannot take all the generated energy and also serious liquidity crisis.
The lawmaker therefore warned that the sale of Afam power Plc as a dilapidated asset will not yield the envisaged result as planned by the federal government.