The Abuja Electricity Distribution Company (AEDC) and Transafam Power have signed a Memorandum of Understanding (MoU) to provide 50 megawatts of embedded power to the Idu commercial hub in Abuja.
The MoU was signed In Abuja on Wednesday by Mr. Chijioke Okwuokenye, Acting Managing Director of AEDC, and Mr. Vincent Ozoude, Managing Director of Transafam Power Ltd.
Okwuokenye stated that the MoU fulfils the Nigerian Electricity Regulatory Commission (NERC) requirement for AEDC to supply 82% of embedded power generation, ensuring a reliable and consistent power supply to the Idu Cluster.
According to him, the deal further demonstrates AEDC’s transformation agenda of entering power generation and reducing reliance on the grid.
”This will significantly advance AEDC’s mission of providing stable and dependable electricity in the Federal Capital Territory (FCT).
”The partnership demonstrates the strategy of Transafam, a leading power generator and subsidiary of Nigeria’s largest, listed conglomerate and Transcorp Group, to further expand its power portfolio, to provide on-grid and embedded generation.
”The investment is further evidence of the turnaround strategy following Transcorp’s acquisition of 60% of AEDC,” he said.
The development is coming three days after AEDC made key leadership changes with the appointment of Okwuokenye as the company’s new acting managing director.
Backstory
In 2023, the federal government assured manufacturers and investors of adequate power supply across the country, especially in industrial clusters.
The vice president, Kasim Shettima, said he aimed to establish bilateral electricity sales directly to end-users at the Agbara industrial cluster within the next six months, as part of the Light Up energy project.
He said the initiative will be facilitated through power generated by the Niger Delta Power Holding Company (NDPHC) power plants.
Prior to this initiative, none of the businesses operating within the Agbara industrial cluster consumed energy from the national grid.
Nairametrics however reported that the federal government confirmed in June the linkage of Agbara Industrial Cluster in Ogun State to the National Grid.
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, made this declaration during the 2024 Manufacturing Association of Nigeria (MAN) summit on Thursday.
Uzoka-Anite said the connection of the industrial hub to the grid is part of the federal government’s ongoing Light Up project to provide sustainable energy to the manufacturing industry.
What you should know
- The Industrial Clusters Power Project is part of the federal government’s ongoing initiative to light up industrial clusters across the country.
- The programme which began in October 2023 is headed by the Vice President of Nigeria, Kasim Shettima.
- Shettima noted that the scheme is part of President Tinubu’s commitment to revamp Nigeria’s Infrastructure framework and provide the much-needed drive to empower Nigerians and strengthen the nation’s economic policies.
