Over 70 manufacturing companies operating in Lagos and Ogun States are set to experience a major relief as the federal government through the Niger Delta Power Holding Company (NDPHC) has begun the process of sustainably solving their energy challenge with the introduction of an efficient and stable Bilateral power project for them.
The Vice President, Senator Kashim Shettima, accompanied by the Governors of Lagos and Ogun States, Mr. Babajide Sanwo-Olu and Dapo Abiodun, respectively and the Managing Director of NDPHC, Mr. Chiedu Ugbo, yesterday kick off the
NDPHC/Agbara Industries Bilateral Energy Sales Roadshow.
The roadshow was an avenue for the federal government, the two state governments, NDPHC and the technical and financial partners to present to meet and interact with the companies, assuring them of the opportunities inherent in the proposed bilateral power project for them.
The Vice president directed the NDPHC to ensure that the power project for the Agbara Industrial Cluster was implemented within the next six months to improve power supply to the over 70 companies.
Also speaking at the Agbara Business Roundtable, an integral part of the Light up Nigeria Programme of the NDPHC and part of the activities for the roadshow, the vice president expressed the commitment of the federal government to tackle power challenges facing businesses in the country.
He assured the companies operating within the industrial clusters of the commitment of the government through the NDPHC, the operator and implementer of the National Integrated Power Project (NIPP) to provide them with efficient, stable and affordable electricity.
In his remarks, the Managing Director of NDPHC, said the event, which was under the leadership of the Vice President and Chairman of the government-owned power firm, signified the unwavering commitment and preparedness of NDPHC in strategic collaboration with their esteemed partners, to undertake bilateral electricity sales to end-users.
Ugbo, said the primary objective of the initiative was to ensure a consistent, reliable, and cost-effective supply of electricity from their power plants to the extensive industrial and business clusters in Agbara and throughout Nigeria.
He explained that the NIPP aimed to enhance electricity generation with associated electricity transmission and distribution infrastructure for the benefit of Nigerians.
He further said the NDPHC had successfully constructed eight power plants with a combined capacity of approximately 4000 megawatts (MW) as well as various transmission and distribution infrastructure.
Ugbo noted, however, that a significant portion of the capacity remained stranded due to constraints within the transmission and distribution system, distribution losses, gas limitations, and the financial burden on the federal government’s balance sheet through Nigeria Bulk Electricity Trading Plc (NBET), the FGN-owned primary bulk purchaser of electricity that on-sells to electricity distribution companies in Nigeria.
He added, “With the evolving regulatory framework of the Nigerian Electricity Supply Industry (NESI) and the declaration of Eligible Customers, we identified opportunities to revolutionize the industry through end-to-end solutions that increase electricity access for Nigerian homes and businesses and reduce the financial burden on FGN’s balance sheet.
‘This event is a public manifestation of the months of diligent work by the NDPHC team and our project partners, devising creative and viable solutions to address power supply challenges in NESI.
“NDPHC remains at the forefront of the industry in pursuing bilateral power sales and other projects that ensure efficient and targeted power delivery to end-users. We are delighted to witness the incremental results of our collaborative efforts with our partners during today’s events.
“We are grateful for the political support of the Federal Government, represented by our Board Chairman, His Excellency the Vice President, and the state governments, represented by the Executive Governors of Ogun, and Lagos States.”
Beyond the celebration that accompanied the event, Ugbo noted that there remained a substantial amount of work to be done to successfully implement the programme and deliver steady, reliable, and affordable electricity to Nigerian industrial clusters.
He affirmed NDPHC’s unwavering commitment to the successful execution of the bilateral power project not only in Agbara but also in various locations across the country.
“We recognise the significant multiplier effect this project will have on Nigeria’s industrial, economic, and infrastructural development, and the value it will bring to the Nigerian people, our ultimate benefactors.
“We extend our gratitude to our Board Chairman, His Excellency the Vice President, for continually challenging NDPHC’s management to enhance our company’s operations and fulfill our mandate of improving electricity supply to Nigerians”, he added.