FG plans dedicated power lines for manufacturers

File Photo: Minister of Power, Joseph Tegbe

The Federal Government is planning dedicated transmission infrastructure to improve electricity supply to major industrial clusters across the country, including a proposed connection between Alaoji and the Agbara industrial area in Ogun State.

The Minister of Power, Joseph Olasunkanmi Tegbe, disclosed this on Monday at the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, saying the government was working to strengthen the connection between available electricity generation and industrial demand.

He said, “We are looking at dedicated transmission infrastructure that will connect available power generation to major manufacturing hubs, including the proposed connection between Alaoji and the Agbara industrial area.”

Tegbe said improving electricity delivery to industrial centres was essential to reducing manufacturers’ dependence on expensive alternative energy sources and lowering production costs.

“Improving the connection between available generation and industrial demand is critical to ensuring that manufacturers have access to more reliable electricity and reducing the cost of production,” he said.

The minister outlined a four-pronged government strategy to address the country’s electricity challenges, focusing on improving liquidity and sustainability in the power sector, optimising existing generation and transmission assets, developing energy zones and expanding critical infrastructure.

“Our approach is focused on improving sector liquidity and sustainability, optimising existing generation and transmission assets, developing energy zones and expanding critical infrastructure,” he said.

His remarks came amid growing concerns over the financial burden of alternative electricity generation on Nigerian manufacturers, many of whom rely on diesel, gas and other independent power sources to sustain operations.

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At the summit, the Manufacturers Association of Nigeria launched the Industrial Energy Cost Reduction and Clean Energy Adoption Programme (IECRECAP), designed to help businesses access more affordable and sustainable energy.

The initiative is being implemented through the Manufacturers Power Development Company Limited, in collaboration with the Nigerian Energy Support Programme, implemented by GIZ, the Federal Ministry of Power and other partners.

MAN President, Dr Ifeanyi Okoye, identified high energy costs, unreliable grid electricity and increasing dependence on self-generation as major challenges confronting manufacturers.

He said, “High energy costs and unreliable grid electricity have continued to undermine industrial productivity and the competitiveness of Nigerian manufacturers.”

Okoye called for sustainable financing models tailored to the needs of industrial energy projects, advocating investments in rooftop solar systems, battery storage, captive gas generation and smart energy management.

“We need practical energy solutions and sustainable financing arrangements that will enable manufacturers to access reliable and affordable electricity without placing additional financial pressure on their businesses,” he said.

He added that improving access to affordable energy was critical to strengthening local manufacturing capacity and positioning Nigerian industries for regional and global competitiveness.

“Reliable and affordable energy is essential to strengthening local manufacturing capacity and ensuring that Nigerian products can compete effectively in regional and international markets,” Okoye said.