- Nigeria’s Federal Government is partnering with Welbeck Electricity to ensure reliable power supply for free trade zones.
- Trade Minister, Dr Doris Uzoka-Anite and Welbeck CEO, Afolabi Aiyelar, are exploring initiatives to lower manufacturing costs and enhance industrial growth.
The Nigerian Federal Government and Welbeck Electricity are negotiating to provide reliable power to free trade zones, aiming to boost the manufacturing sector and job creation in line with the Renewed Hope Agenda.
The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite and Welbeck Electricity Distribution CEO, Afolabi Aiyelar, are exploring partnerships to reduce manufacturing costs and enhance industrial growth. They are focusing on a stable power supply and potentially pricing gas in naira.
The Federal Government of Nigeria, in partnership with Welbeck Electricity Distribution, is exploring plans to supply reliable electricity to the country’s free trade zones to revitalise the manufacturing sector, boost GDP, and create job opportunities for youth.
The minister stated that power costs account for about 60% of manufacturers’ operating expenses in Nigeria. During a recent meeting with the Welbeck CEO, Uzoka-Anite emphasised the government’s commitment to supporting Independent Power Producers (IPPs) in providing sustainable and affordable energy for the manufacturing sector.
“Reliable power is crucial for driving economic growth and meeting our industrialisation goals. We are committed to supporting Welbeck and other IPPs to ensure our industrial sectors receive the energy they need at a sustainable cost,” she added.
The discussion focused on the pivotal role of a stable power supply in enhancing Nigeria’s manufacturing capabilities and explored potential collaborations to strengthen industrial capacity across the nation.
On his part, Aiyelar proposed partnering with the Ministry of Industry, Trade, and Investment and the Nigerian Export Processing Zones Authority (NEPZA) to establish power plants dedicated to providing constant electricity to Nigeria’s free trade zones and industrial clusters.
Aiyelar also urged the government to consider pricing natural gas in naira instead of US dollars. He argued that such a move would lower energy costs, stabilise supply, and enhance the competitiveness of Nigerian manufacturers.
He highlighted that reducing energy costs would aid local industries and align Nigeria more closely with its West African peers, like Ghana and Senegal, which have lower energy costs due to better power infrastructure.
He praised the Minister for supporting the industry through various initiatives, including the recent disbursement of the Industry Revitalization Roadmap Fund, which benefits micro and nano enterprises. Furthermore, he stressed that these efforts are vital for sustainable industrial development and economic growth.
The dialogue between Welbeck and the Ministry marks a promising step towards creating a more resilient manufacturing sector through consistent and affordable power supply. The proposed collaboration between Welbeck, NEPZA, and the Ministry could set a new benchmark for industrial power supply in Nigeria, unlocking the full potential of the country’s industrial zones and free trade areas.