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