15 Indian companies shortlisted in Nigerian power projects

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but does not warrant or guarantee their accuracy or date.
Our site takes no responsibility for any investment decisions based on recommendations provided on website.
Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to to our website and any financial deal should be done on their own sole responsibility.

Around 15 Indian companies, including Tata Power, GMR Group and Adani Power, are among candidates shortlisted by the Nigerian government to participate in the privatisation of power projects of state-owned National Electric Power Authority (NEPA).

Struggling on home ground with multiple issues which have delayed capacity addition, Indian power companies are exploring participation in power generation and distribution projects in Nigeria to fuel their growth despite the civil unrest in the country.
Nigeria is in the process of selling a 51% stake in four thermal and two hydro power generation units and 11 transmission projects since NEPA's poor operational and financial performance has deterred capacity addition in the country.

They have a need and we have the technical, commercial and operational capability," he said. Nigeria is Africa's largest crude oil exporter and has the world's seventh largest gas reserves. But the most populous nation of Africa generates only around 4,000 MW that is enough to power only 40 lakh households. Reports suggest that despite several delays, the country aims to complete the process of privatisation by the second quarter of 2012.

Indian companies are considering Nigeria as a "natural hedge against local slowdown", but the entry into the country would not be easy, given its political and social condition. Some of these Indian companies are already jittery about going ahead in the bidding process as Nigeria struggles with widespread religious violence, labour unrest, crumbling infrastructure and high incidence of corruption.

Sector experts said that Indian companies which have a presence in Africa, particularly in Nigeria, would be well placed to participate in the bids for these projects. Also, the energy security that the country can provide may lure companies to bid actively for these projects.