Succor has come the way of manufacturers and business owners in Amuwo-Odofin, Ilupeju and Henry Carr (Ikeja) axes of Lagos as the industrial clusters in the area will get modular power supply in four to six months. This development is as a result of the private investors who have been engaged by the Manufacturers Association of Nigeria (MAN) to provide electricity.
According to the board chairman of the Manufacturers Power Development Company Limited, Ibrahim Usman, “arrangements have been concluded with three undisclosed companies to supply up to 10 megawatts t each of the industrial clusters, while a memorandum of understanding will be signed in not more than two weeks.”
Usman stressed that the power project is structured on a build-own-operate, which is a system where a private company is granted the right to develop, finance, design, build, own, operate, and maintain project. “Manufacturers in the industrial clusters will sign an agreement with private power suppliers which will mandate them to pay for the electricity they consume.” Usman said.
While commenting that the process will be replicated in other industrial clusters in the Eastern-Nigeria, Ibadan, and Kano, among others, Usman stressed that “we are not going to deploy too much. It will be in a modular form, in small units, but there will be efficiency, such that if there is any servicing going on, manufacturers will still have power. There will be power for 24 hours.”
Nigerian manufacturers floated Power Development Company Limited in the first quarter of 2016 to cushion the harsh impact of poor electricity supply in industrial zones.
Local manufacturers devote between 30 and 40 percent of their expenditure to energy. While multinationals and large companies have expensive gas and coal-fired plants, the majority of medium, small and micro players use diesel and fuel to power generation.