The federal government has officially transferred operations of the Zungeru Hydroelectric Power Plant to Penstock Limited. The move, announced during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa in Abuja on Tuesday, is expected to enhance Nigeria’s power generation capacity and contribute to meeting the nation’s growing energy demands.
Vice-President Kashim Shettima, addressing the NCP, revealed the government’s intention to recapitalize and restructure the Bank of Agriculture (BOA) to fortify Nigeria’s agricultural sector and ensure national food security.
Shettima emphasized the BOA’s potential to play a pivotal role, given its extensive branch network across all senatorial districts. However, he expressed concerns about the bank’s current practices, particularly its tendency to disburse unsustainable loans.
Shettima proposed the modernization of the BOA, stressing the importance of leveraging technology and upgrading branch facilities. He highlighted the necessity of embracing modern financial systems to enhance the bank’s effectiveness in supporting agricultural development.
The VP also suggested integrating the Green Imperative Project with the BOA’s restructuring plans, envisioning every farmer receiving essential machinery like tractors and harvesters.
“For me, we can marry the Green Imperative Project while bringing in assorted agricultural machinery. Every farmer should be given a tractor, harvester, and other necessary machinery. We can take in the latest advances in science and technology and make it possible to track these items so that divergence can be minimized,” stated Shettima during the meeting.
The restructuring and recapitalization of the BOA are underway, with a committee led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, finalizing a report. Key decisions have already been made, and further updates are expected soon.
In parallel progress, the NCP announced the successful concession of the Zungeru Hydroelectric Power Plant (ZHPP) to Penstock Limited. The Concession Agreement was signed on December 13, 2023, with the Concessionaire fulfilling its obligation by paying 50 per cent of the commencement fees on January 5, 2024. The official handover ceremony occurred on January 23, 2024, marking the commencement of Penstock Limited’s operations at the plant.
The meeting also addressed updates on the sale of NITEL/MTEL property at Moloney Street, Lagos. Efforts are underway to evict illegal occupants and resolve the court case surrounding the property. Additionally, progress on the audit of NIPOST properties nationwide was discussed, with the Bureau of Public Enterprises (BPE) providing detailed information to the Minister of Communications, Innovation, and Digital Economy, and the Postmaster General to assist with the ongoing Postal Sector Reform.
On the Federal Mortgage Bank Restructuring, it was reported that the bank’s management has submitted nominations to the Implementation Committee, which is expected to commence work shortly.
These strategic policy moves signal the Federal Government’s commitment to addressing critical issues in power generation, agriculture, and financial sectors, with an eye towards sustainable development and national prosperity.
