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Home Welbeck CEO Seeks Partnership with Federal Government to Improve Power Supply

Welbeck CEO Seeks Partnership with Federal Government to Improve Power Supply

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By Oni Isaiah on August 26, 2024 Naija News
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Afolabi Aiyela, the CEO of Welbeck Electricity Distribution, is looking to partner with the Federal Government to enhance power supply in Nigeria’s industrial areas and free zones. He proposed this partnership during a recent meeting with the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, in Abuja.

Aiyela explained that a reliable power supply has greatly benefited Welbeck’s customers, especially manufacturers. He said that consistent power has allowed these businesses to keep production running smoothly, expand their operations, and create more jobs.

“Our clients, mainly manufacturers, have grown significantly because of the steady power we provide. This has helped them keep production constant, expand their operations, and create more jobs,” Aiyela said.

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Welbeck is interested in setting up dedicated power plants to serve Nigeria’s free zones and industrial clusters. Aiyela also suggested that domestic Nigerian gas should be priced in naira instead of U.S. dollars. He believes this change would help reduce energy costs for manufacturers, allowing them to grow their businesses and make Nigerian products more competitive both locally and globally.

Aiyela noted that lower energy costs would not only help the manufacturing sector but also boost Nigeria’s overall economy by supporting business expansion and job creation.

Minister Uzoka-Anite acknowledged that power costs make up about 60% of manufacturing expenses in Nigeria. She said the Federal Government is committed to supporting independent power producers like Welbeck to ensure that industries receive affordable and reliable energy.

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The minister mentioned that countries like Ghana and Senegal have lower energy costs because of stable power supplies, which has helped their manufacturing sectors become more competitive.

The Federal Government aims to reduce electricity costs in Nigeria to below N150 per kWh to match regional standards and support the manufacturing sector.

Aiyela expressed appreciation for the government’s efforts, including the Industry Revitalisation Roadmap Fund, which he believes will benefit the real sector, particularly small businesses, and help develop Nigeria’s industrial base sustainably.

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Oni Isaiah

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