Business / Economy

Add as a preferred source on Google

Nigeria's Federal Government Works on Alaoji-Agbara Power Link Model

Power Minister Joseph Olasunkanmi Tegbe said the connection model is still being worked out, according to BusinessDay, which gave no capacity, cost or construction timetable.

Updated 2 min read
Manufacturers gather for an industry summit in Lagos, Nigeria. (AI-generated image / EconoTimes)
Manufacturers gather for an industry summit in Lagos, Nigeria. (AI-generated image / EconoTimes)

Nigeria's Federal Government is working on an Alaoji-to-Agbara transmission model to direct power toward industrial demand, Power Minister Joseph Olasunkanmi Tegbe said Tuesday, Nov. 3, according to BusinessDay.

At a manufacturers' summit in Lagos, Tegbe presented the idea as a way to make better use of power assets, BusinessDay reported. He said, “That model is being worked out.” The outlet did not report a capacity, cost or construction schedule for the proposed connection, or identify its operator or financing plan.

THISDAY reported Oct. 29 that Tegbe had earlier discussed a similar Alaoji-Agbara connection, potentially using a separate line or reconducting an existing one. The reports describe a concept for moving power to an industrial cluster; neither establishes that the connection has been approved, funded or scheduled for construction.

BusinessDay also reported that Tegbe outlined four parts of the government’s electricity strategy: asset optimization, energy zones, sector liquidity and sustainability, and infrastructure expansion. He said eight substations had been commissioned in the two months before Nov. 3, adding 1,300 MVA, the outlet reported.

Manufacturers are also pursuing energy measures of their own. Manufacturers Association of Nigeria (MAN) President Ifeanyi Okoye said the association launched an Industrial Energy Cost Reduction and Adoption Programme at the summit, according to BusinessDay. The outlet said the initiative includes rooftop solar, battery storage, captive natural gas and smart energy-management networks. MAN describes its Manufacturers Power Development Company Limited as supporting sustainable energy solutions for manufacturers.

John Aluya, chairman of the Manufacturers Power Development Company, said energy spending exceeds 40% of manufacturers’ operating expenditure, BusinessDay reported. The outlet attributed concerns about high tariffs, unreliable electricity and reliance on fossil-fuel generation to MAN officials.

Related articles

View all