Plans to increase Nigeria’s national grid by 700 megawatts (MW), may be taking shape as Tony Elumelu, chairman of Transcorp Nigeria Plc, has pledged to invest as much as $2.5 billion in power projects across the country.
According to Bloomberg, Elumelu revealed that investments in the power sector will be made through Transcorp Power Ltd, a subsidiary company.
Although a time frame was not given, Elumelu said the company is ready to “spend a lot of money” on the 987MW capacity Afam Power Plant which is up for privatisation.
On March 15, the company along with two others, had launched a bid for Afam Power Plant which operates a natural-gas-fired power generation facility in Rivers state.
He said If Transcorp Power successfully acquires the facility, the firm’s daily power output will increase by 700MW, adding 1400MW to the national grid.
“We’ve expressed interest in the acquisition of Afam power plant, which we’re going to spend a lot of money on. It’ll give us 1,400 megawatts and we can do more,” he said.
Speaking on a N90 billion naira debt owed Transcorp Power, Elumelu said such has the tendency to hamper growth in the sector.
“If they’re owing you that kind of money, it affects your ability to do more and more importantly, slows your enthusiasm,” he said.