Nigerian logistics tycoon Taiwo Afolabi’s Sifax Group plans strategic move into energy sector

Sifax Group, a diversified conglomerate, has made a strategic move into the energy sector, with its subsidiary Sifax Energy joining 14 other companies as prequalified bidders for the privatization of five power projects in Nigeria.

Founded in 1988 by Nigerian lawyer and logistics tycoon Taiwo Afolabi, Sifax Group is one of the country’s leading conglomerates, with investments and operations in aviation, oil and gas, maritime, haulage, logistics, and hospitality.

Its foray into the Nigerian energy sector comes not long after the company expanded the capacity of its subsidiary Sifax Shipping ICT Limited, the operator of an inland container terminal in Lagos, to alleviate the difficulties experienced by port users, such as truckers, shipping lines, agents, and consignees.

As one of 15 firms shortlisted as prequalified bidders by the Bureau of Public Enterprise for the privatization of power projects in Nigeria, Sifax Group, through its subsidiary Sifax Energy, is on track to take over at least one of the government’s five National Integrated Power Projects. They include: Benin Generation Company Limited in Ihovba, Edo State; Calabar Generation Company Limited in Cross River State; Geregu Generation Company Limited in Kogi State; Olorunsogo Generation Company Limited in Ogun State; and, Omotosho Generation Company Limited in Ondo State.

The decision is part of the company’s strategic effort to diversify its business base while gaining exposure to the vast opportunities in Nigeria’s energy sector, particularly the power value chain.

Afolabi, who founded Sifax Group more than three decades ago, was appointed as the company’s new chairman of the board nearly two months ago after the death of former Chairman Adegboyega Dosunmu, a Nigerian traditional ruler who passed away on Dec. 12, 2021.