The Federal Government of Nigeria have officially handed over Zungeru Hydroelectric Power Plant to Penstock Limited, a concessionaire.
This development was announced on Tuesday during the first meeting of the National Council on Privatisation (NCP) in 2024, which took place at the Presidential Villa in Abuja.
This transfer of operations is expected to have a positive impact on Nigeria’s power generation capacity and will play a significant role in meeting the country’s increasing energy demands.
The concession Agreement between the Bureau of Public Enterprises (BPE) and Penstock Limited was signed on December 13, 2023.
Following the approval from the NCP, the concessionaire fulfilled its obligations by making a payment of 50 per cent of the commencement fees on January 5, 2024.
During the meeting, Vice President Kashim Shettima, who chaired the gathering, also revealed the government’s plans to recapitalize and restructure the Bank of Agriculture (BOA). These measures aim to strengthen Nigeria’s agricultural sector and achieve national food security.
During the meeting, Vice President Shettima highlighted the BOA’s capability to contribute significantly to national food security through its widespread branch network covering all senatorial districts in the country.
Nonetheless, he raised apprehensions regarding the bank’s current procedures, specifically its inclination towards issuing loans that are not financially viable.
Shettima proposed the modernization of BOA, stressing the importance of utilizing technology and enhancing branch infrastructure. He mentioned that adopting contemporary financial systems would enhance the bank’s efficiency and enable it to effectively support agricultural growth.
