A Review of the Nigerian Energy Industry

Govt signs $1bn MoU on 1,000MW plant

The Federal Government has signed a $1bn Memorandum of Understanding with Strancton Limited for the construction of a 1,000 megawatts power plant in Katsina State.

It also signed another MoU with Greenville Oil and Gas Limited for the supply of liquefied natural gas to the Kaduna power plant.

Prof. Chinedu Nebo
Prof. Nebo

The Minister of Power, Prof. Chinedu Nebo, who signed the contracts on behalf of the government, said the proposed power project was highly innovative as its promoter, Strancton, working with Katsina State, would use gas from Niger Republic to fire the plant.

Nebo said the project was a call on Nigerians to take full advantage of gas reserves by building infrastructure for its utilisation, adding that gas alone could boost the country’s economy even without oil.

The minister, in a statement issued by the Deputy Director of Press, Federal Ministry of Power, Mr. Timothy Oyedeji, promised to support the project as it was another way to stabilise the nation’s grid system.

Nebo challenged other states to emulate the Katsina State’s initiative by investing in the sector.

The Minister of State, Mr. Mohammed Wakil, said the signing of the MoUs was a proof that the efforts of the government in wooing investors were yielding positive results.

He said the realisation of the project would bring Nigeria nearer to the target of 20,000MW by 2020 as contained in the vision 2020 document.

He observed that the project, which would run on gas from Niger Republic, would assist in bridging the gap of non-availability of gas, adding that “the planned supply of LNG to Kaduna Plant will give us a good footing.”

Speaking on behalf of the two companies, the Chief Executive Officer, Strancton Limited, Mr. Edozie Njoku, said the plant would be the first gas pipeline-fed electricity project in northern Nigeria.

He said the initial target for the first phase was 300MW with a 30-month construction period, adding that the plan was to move steadily to 1,000MW in years ahead.

The estimated $1bn project, according to Njoku, will lead to reduced energy cost, industrial development, creation of skilled jobs and improve the quality of livelihood in Nigeria.

In this article

Join the Conversation