The National Council on Privatisation has approved the Bureau of Public Enterprise’s request to monitor Transcorp Power Consortium’s compliance with the performance agreements for the acquisition of Afam Power Plc and Afam Three Fast Power Limited.
Performance agreements typically define the responsibilities and expectations of both parties in a business arrangement.
The decision to supervise Transcorp’s adherence comes exactly five years after the company acquired the plants in 2020.
In a statement on Thursday, the senior special assistant to the president on media, Stanley Nkwocha, said the approval is intended to regularise outstanding obligations and operational targets under the post-acquisition plan, ensuring the long-term commercial viability of the plants.
The special assistant said the move follows a memo submitted to the NCP by the director-general of the BPE, Ayodeji Gbeleyi, during its third meeting at the Presidential Villa, Abuja.
Notably, in March 2019, Tony Elumelu, chairman of Transcorp Nigeria Plc, pledged to invest up to $2.5 billion in power projects nationwide.
In November 2020, Transcorp Power Consortium announced the completion of its acquisition of the 966-megawatt Afam Electricity Generation Company for N105 billion, following a competitive bidding process involving 12 firms.
Afam Power Plc and Afam Three Fast Power Limited are both components of the Afam GenCo power plant complex.
Commenting on the acquisition, Gbeleyi stated that the federal government had concluded the sale of the power plant, with N53.9 billion realised as privatisation proceeds.
He noted that the asset had been fully handed over to Transcorp Power Consortium, the core investor, with the government restructuring the transaction earlier this year.
Gbeleyi added that, with the execution of the performance agreements to formalise the transactions, the BPE can now commence “the mandatory post-privatisation monitoring of the core investor’s performance obligations.”
The director-general also revealed that the council held extensive deliberations on its own performance and that of the BPE in 2025, reviewing key achievements such as the unbundling of the Transmission Company of Nigeria.
“As you heard at the meeting, the unbundling of the Transmission Company of Nigeria into two entities, Nigerian Independent System Operator, as well as the Transmission Service Provider, was achieved in the course of this year,” Gbeleyi was quoted as saying.
“Before the approval, Chairman of the NCP, Vice President Shettima, who demanded a fundamental shift in Nigeria’s privatisation agenda, said there is a need to shift from simply selling state-owned enterprises to asset optimisation designed to power the nation’s trillion-dollar economy ambition.”
