A Review of the Nigerian Energy Industry

Lagos grows IPP capacity to 30Mw

Gov Fashola and Wale Tinubu05 November 2013, Lagos – Alausa, the Secretariat of the Lagos State Government has achieved another significant milestone, becoming the first in the country to run its own power plant, increasing to 30 megawatts the total power generated by the state directly.

Governor Babatunde Fashola, last week officially flagged off the 10.6 Megawatts, MW, Alausa Power Project, with the capacity to power the entire state Secretariat, Alausa and Obafemi Awolowo Way.

The project was executed through Public Private Partnership, PPP, with Oando Gas and Fidelity Bank Plc.
Previously, government had launched similar IPPs across the state, namely: Carter Bridge, Simpson Street in Lagos, ramp on Marina, and Ikorodu Road amongst others.

The Alausa IPP is expected to boost social welfare component for the public officers as the plant has an impact in improving the work environment, the work quality, the work ethics and improved efficiency as well as improve power supply generally in the state.

The power project, will supply power to 62 buildings and 160 departments within the secretariat to bring an end to the usual epileptic power supply in the area.

The governor lamented that, “It is bad enough that we don’t generate our own electricity, the public power is 12. 75k per kilowatts per hour, but we are generating our power at sometimes four or five times more than that.

“In Magodo for example, they spend N8million a day in the whole estate on diesel, when it should have cost them just about N2 million public power. Even Lekki spends about N12m a day, when it should have cost them about N3million a day. So these are the numbers we are seeing. If you buy energy saving bulbs, it may be more costly but you would save seven times more over a longer period when using
it.” Fashola said.

He asserted that the government has made an impactful intervention in terms of safety in motoring, safety for the city and security of life and property through strategic power projects.

He added that 12 streets were recently lit up in Alimosho area and already having enormous benefit, because market women who hitherto closed at 5 or 6 pm, now trade into the wee hours of the night due to improved security.

“The same is happening in the hinterland of Shomolu, people who fry bean cakes “Akara”, locally at the time before we got to Shomolu normally close at 6pm because they said it is not safe. Now the roasted plantain sellers and Akara sellers sell till 11pm”, he stated.

Fashola who re-iterated that the solution to unemployment and jobs creation, improved economic situation lies in made in Nigeria goods, and expressed happiness that the Alausa IPP is another made- in- Nigeria project, delivered by a Nigerian government with two Nigerian companies using largely Nigerian personnel to solve a Nigerian problem.

He disclosed that, according to records, the project would be a substitute for over 120 generators which were being used at the Secretariat at the last count, “which will also translate to an aggregate of 30 inefficient megawatts of power which bothers on lost time, lost accountability, diesel supply and transport cost that will from today on now be history.”
Other areas of focus within the next 12 months are; on public power, schools, hospitals, streetlights, courtrooms, religious institutions, amongst others.

Fresh IPPs were scheduled to also commence in; Lekki to power the Lekki Water Works, Ikeja GRA that will power the General Hospital, High Court, the Police Command and the Ikeja Water Works expected to be fully completed next year.

“We already have a transformer manufacturing plant and so we are going ahead to ensure that when the power is ultimately here, the components to bring it to peoples’ home will be available. What we hear before is that well, there is generation but there is no gas, so we don’t want to get to that when the talk would be there is electricity but there is no transformers, so we are already ahead of the curve and that factory will also be manufacturing meters in the plant,” he said.

The Group Managing Director and Chief Executive Officer of Oando Oil, Mr Wale Tinubu, explained that Alausa IPP will run primarily on gas and reduces pollution that emanates from diesel generation that was hitherto in use across the secretariat.

He added that the Alausa Secretariat campus and Awolowo Road Street light, will also be powered by the power plant, thus enhancing the security of the citizens at night, adding that the strong commitment shown by the Lagos State government before the commencement of the project ensured that the negotiations did not flounder.

Also, General Manager, Lagos State Electricity Board, Mrs. Damilola Ogunbiyi, said that the IPP would save government about N30 million.
*Olasunkanmi Akoni, Vanguard

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