Afam Power Dispute Ignites Fresh Demands for Investigation into Nigeria's Electricity Sector
Fresh allegations of fraud, obstruction, and favoritism have intensified scrutiny of Nigeria's electricity sector, as a dispute involving Trans Afam Power Limited and the Nigeria Electricity Liability Management Company (NELMCO) raises serious concerns about transparency and accountability. What began as a government-approved auction of non-core assets at the Afam Power Station in Port Harcourt has evolved into a prolonged controversy that now threatens confidence in the sector's privatization process.
Core of the Dispute: Delayed Asset Release Despite Full Payment
At the heart of the dispute is the delayed release of assets formerly owned by the defunct Power Holding Company of Nigeria (PHCN), despite full payment by the winning bidder, Lord Apple Properties Limited. NELMCO had in February 2021 appointed Yahim Group Limited to oversee the auction of 129 obsolete assets, including industrial machinery, transformers, and vehicles, with Lord Apple Properties emerging as the successful bidder after a competitive process. The company completed payment through the federal government's Remita platform, fulfilling all requirements for ownership transfer and asset collection.
However, the process stalled when Trans Afam Power Limited, the operator of the facility, allegedly refused to release some key assets, including a 7.5 MVA transformer. The company reportedly justified its actions by claiming certain assets belonged to the Okoloma Afam Community and required local consent, a position said to contradict earlier confirmations from NELMCO that the assets were free of encumbrances. Subsequent documents, including letters from NELMCO and the community's paramount ruler, reportedly indicated there were no objections to the removal of the items.
Escalating Controversy and Regulatory Inaction
Further controversy emerged following claims that Trans Afam Power later sought to acquire some of the same assets, leading to a settlement arrangement with the original buyer, although several items remain unreleased. Petitions submitted to agencies including the Department of State Services, the Bureau of Public Procurement, and NELMCO have so far yielded no visible action, prompting criticism over regulatory inaction.
Industry observers warn that the unresolved dispute could undermine investor confidence in Nigeria's already fragile power sector, where consistent policy enforcement is seen as critical to attracting investment. Analysts say the situation has grown beyond a contractual disagreement and now represents a broader test of institutional integrity, as stakeholders call for a thorough investigation to restore trust in public asset management and the country's electricity reform framework.
Key Points:
- The dispute centers on assets at Afam Power Station, with allegations of fraud and favoritism.
- Lord Apple Properties paid fully for assets but faces delays from Trans Afam Power.
- Contradictory claims about community consent have complicated the issue.
- Petitions to regulatory bodies have not resulted in action, raising concerns about accountability.
- Experts warn this could deter investment in Nigeria's power sector.
This case highlights ongoing challenges in Nigeria's electricity privatization efforts, emphasizing the need for stronger oversight and transparency to prevent similar issues in the future.
