Economy
Osinbajo commissions 240MW Afam 3 power plant
By sustaining the significant strides made by the Buhari administration in the electricity sector, with increased investments and improvements in the value chain, Nigeria could become one of the best power markets in the world, according to Vice President Yemi Osinbajo, SAN. Prof. Osinbajo stated this today in his remarks at the official commissioning of the 240MW, AFAM 3 Fast Power Project in Port Harcourt, Rivers State, where he represented the President. According to the VP, “we have all the ingredients to create one of the best power markets in the world. I am also confident it will happen within our lifetimes. “The challenge before us now is for the industry to leverage the improved commercial environment that has been created to sustainably supply electricity and improve service to all citizens. This administration has made significant strides in this direction.” Referencing the efforts of the administration in the sector, the VP said “the complete story is that in the past few years we have seen more new money coming into the power value chain.
“These transactions include, Quest PLC that became core investor in Yola disco in 2020 with the transaction worth N19 billion. Last month the National Council on Privatisation, NCP, approved the 30-year concession on Zungeru Hydro Power Plant at $70 million a year. And overall, the story of the Nigerian electricity supply industry is also getting better.” Continuing, the VP disclosed that “since 2020, the Nigerian Electricity Regulatory Commission has executed all of its bi-annual review processes without fail,” recalling that this was a marked difference from the past. For instance, he said ” in 2019 subsidies reached a peak of N584 billion in an environment that was very burdensome on the Nigerian Government’s fiscal position. But he added that the “introduction of the Service Based Tariff, the Payment Discipline initiative for the sector (through NERC and CBN) and the introduction of the National Mass Metering programme
have led to a doubling of market collections in the Nigerian Electricity Supply Industry from N40 billion per month in 2020 to a record of N80 billion per month in the 1st quarter of 2023. He also stated that in 2021 and 2022 “five underperforming DISCOs were brought into a restructuring program that has led to a N10billion per month reduction in shortfalls. If this trajectory continues, the Nigerian Electricity Supply Industry will attain self-sufficiency by the end of 2023.” Speaking further, the Vice President noted that the Buhari administration has created programmes “for off-grid electrification and revamped the Rural Electrification Agency, such that it now has first rate capacity to provide renewable and off-grid electricity supply. This administration has also completed and concessioned the Zungeru Hydroelectric power plant that will add 700MW of renewable energy to our energy mix. We believe we are on track to electrify all Nigerians in the next decade as we look forward to the next administration scaling up already existing programmes.” While commending the management of Transcorp Power PLC and other investors in the power sector, Prof. Osinbajo said the renewed interest came as a result of deliberate policies of government.
His words: “the tide (inadequacy of investment) is turning with indigenous power entrepreneurs such as Transcorp Power, and Heirs Holding making significant investment such as this hundred percent acquisition of the 966MW installed capacity Afam Power Plc and Afam 3 Fast Power Limited (jointly referred to as “Afam GenCo”), at an acquisition cost of N105.3 billion. Only yesterday, the National Council on Privatisation formally delisted Transcorp Power PLC (formerly known as Ughelli Power PLC) from routine Monitoring & Evaluation by the BPE, indicating yet another successful power investment.” According to the VP “the last few days, I must say belong to Transcorp Power because at the same meeting of the NCP the council approved Transcorp Power consortium as preferred bidder for the acquisition of the Abuja disco.” Besides Transcorp Power, the VP commended the efforts of “the Rivers State Government and the Afam Paramount Ruler and communities adjoining Afam for working constructively with the power companies to ensure continued peace and security in the Afam Cluster, without which we wouldn’t be here today commissioning this project.”
He also commended General Electric “for its continued investments and partnership in Nigeria to improve our electricity industry,” while also adding the DG, the entire BPE team and the National Council on Privatisation for another successfully completed transaction. Prof. Osinbajo however noted that the country “will not make progress if our industrial and urban power supply that is anchored on large scale gas power plants does not improve. Despite having one of the largest gas reserves in the world, the gas supply and security for the power sector has remained inconsistent and is hampering reform efforts.” He further stressed that payment security to gas suppliers remained one of the greatest challenge to electricity supply and encouraged “Gas Power Producers and gas suppliers to have a fundamental re-think about supply security and proffer ways to ensure our gas power supply base can improve and meet the gap and growing demands of the Nigerian Electricity Supply Industry.” Earlier in his remarks, Rivers State Head of Service, Dr. Rufus Godwin, who represented Gov. Nyesom Wike, thanked the Vice President for his love and commitment for the wellbeing of Rivers people and Nigerians at large, stating that “the VP has become a son of Rivers and is welcome to the State anytime.” He equally thanked the Federal Government for Afam Power Project, noting that besides being host to a number of Federal Government projects, “Rivers State is a business hub in the country and contributes 40% of electricity to the country.”
In the same vein, the Group Chairman of Transcorp Plc, Mr Tony Elumelu, praised the Federal Government, President Muhammadu Buhari and Vice President Yemi Osinbajo for their unflinching support to the power sector and for seeing to the completion of Afam Power Project. He added that “it has not been an easy journey to get to the completion of Afam Power Project with 240MW,” which he said would connect one million households in the country. In his own remarks, the President of General Electric in Nigeria, Muhammed Mijindadi recalled how on some difficult occasions in the process of delivering the project, the US-based company sought the quick interventions of the Vice President. “The Vice President promptly intervened several times,” he disclosed adding that there were times when things were proving rather difficult. He praised the VP, the late Chief of Staff, Abba Kyari, the BPE, Ministers of Power and Finance, for their support. General Electric supplied the mobile power generating equipment to the Afam 3 Power Plant, provided the electrical balance, installation, commissioning services and training to the plant operators. Dignitaries at the event were the Permanent Secretary in the Ministry of Power, Mr Temitope Fashedemi, who represented the Minister, and the Director General, BPE, Mr. Alex Okoh, among other officials.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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