Nigeria $5.6 bln power plants sell-off stalls on gas shortages

Nigeria's privatisation of 10-independent power plants (IPPs) that could fetch up to $5.6 billion is stalling due to a lack of gas supply, the chief executive of Aiteo Power and Gas said.

Africa's biggest economy broke up its monopoly on power generation and distribution by privatizing the sector two years ago, hoping to attract foreign investors.

Since that privatisation, the amount of power produced has stagnated, failing to reach a 2012 peak of 4,500 megawatts of electricity owing to gas constraints, plant outages and tripped circuits, according to Transmission Company of Nigeria.

About 3,346 MW of power was distributed to consumers during this year, it said.

The government also blames gas pipeline vandalism.

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