Nige­ri­ans should ex­pect im­proved power sup­ply from next year – Wel­beck Elec­tric­ity boss

Business Day (Nigeria) - - NEWS -

The Man­ag­ing Direc­tor and Chief Ex­ec­u­tive Of­fi­cer, Wel­beck Elec­tric­ity Dis­tri­bu­tion Lim­ited, Afo­labi Aiyela has said that Nige­ri­ans should ex­pect im­proved power sup­ply by next year as mas­sive for­eign and lo­cal in­vest­ments would be wit­nessed due to the Fed­eral Gov­ern­ment’s new Cost Re­flec­tive Tar­iff for elec­tric­ity.

Aiyela gave the as­sur­ance dur­ing a visit by the of­fi­cials of the La­gos State Min­istry of En­ergy & Min­eral Re­sources, led by Mustapha Ab­dul-ahmed Olorun­femi, per­ma­nent sec­re­tary of the min­istry, to the Ojota Power Plant of the com­pany.

He noted that the sec­tor has be­come ex­tremely at­trac­tive to for­eign in­vestors who are now con­fi­dent of mak­ing a re­turn on any in­vest­ment they make in the big­gest power mar­ket in sub-sa­ha­ran Africa, in terms of de­mand.

Dur­ing the visit, Aiyela re­called that “The ex­pert con­sen­sus world­wide is that fos­sil fuel sub­si­dies have a net neg­a­tive ef­fect, both in in­di­vid­ual coun­tries and on a global scale. Elec­tric­ity sub­si­dies ar­ti­fi­cially lower prices, lead­ing to mar­ket dis­tor­tions and con­sumer wastage.”

Ac­cord­ing to him, “Such con­se­quences in­clude en­vi­ron­men­tal, eco­nomic and so­cial im­pacts.”

He fur­ther noted that “In Nige­ria in par­tic­u­lar, sub­si­dies have led to the in­crease in en­ergy con­sump­tion, strain on gov­ern­ment bud­gets and di­ver­sion of funds that could oth­er­wise be spent on so­cial pri­or­i­ties (such as health­care or ed­u­ca­tion) and re­duce the prof­itabil­ity of al­ter­na­tive en­ergy sources.”

Aiyela also praised the La­gos and Fed­eral Gov­ern­ments for the sup­port and en­abling en­vi­ron­ment they have cre­ated that had helped Wel­beck Elec­tric­ity to thrive.

“One thing is cer­tain; you can’t com­pare La­gos State to any other state when it comes to In­de­pen­dent Power. If you look at the IPP ca­pac­ity of La­gos State now, there is no other state to com­pare.

“We ap­pre­ci­ate the en­cour­age­ment and sup­port given by Fed­eral Gov­ern­ment and La­gos State and we look for­ward to work­ing closely with La­gos to re­alise the gover­nor’s plan to in­crease power sup­ply across the state,” he said.

He fur­ther ex­plained that “Wel­beck Elec­tric­ity is one of the fastest grow­ing IPP (In­de­pen­dent Power Pro­ducer) com­pa­nies in Nige­ria. With three IPP’S rang­ing from 2.5MW to 5.5MW in La­gos and more up­com­ing this year; we are in the right po­si­tion to of­fer cus­tomers an in­de­pen­dent source of un­in­ter­rupted power.

“Our clients range from Switch/data cen­tres, such as MTN Nige­ria Plc; as­sem­bly plants such as CIG Mo­tors and Kin­star Out­door and man­u­fac­tur­ing plants such as Daily Need In­dus­tries, Poly Prod­ucts Plc, Lon­tor and FAMAD Plc.”

L-R: Hafeez Mo­moh, head of en­ergy, La­gos State Min­istry of En­ergy and Min­eral Re­sources; Mustapha Ab­dul-ahmed Olorun­femi, per­ma­nent sec­re­tary, La­gos State Min­istry of En­ergy and Min­eral Re­sources; Afo­labi Aiyela, MD/CEO, Wel­beck Elec­tric­ity Dis­tri­bu­tion Lim­ited, and Michael Ono­jafe, GM, op­er­a­tions, Wel­beck Elec­tric­ity Dis­tri­bu­tion Lim­ited, dur­ing the visit of of­fi­cials of the min­istry to Wel­beck’s Ojota power plant. Pic by Pius Okeo­sisi

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