Geogrid LighTec Limited, an independent power generation company and the Manufacturers Association of Nigeria have signed a Memorandum of Understanding for the delivery of 10 megawatts of embedded generation within the Ikeja industrial cluster.
The Chairman, Manufacturers Power Development Company Limited, Mr. Ibrahim Usman, said the deal was part of efforts to make available alternative power supply to manufacturers amid the inadequate supply from the national grid.
As of today, some companies spend as much as 40 percent of their cost on power and this obviously affects the competitiveness of our products.One of the biggest concerns of the nation as a whole is the issue of diversification, to produce goods that are comparable to those imported; this cannot be done if we don’t have power at the right price; if we don’t produce goods that are not only good in terms of quality but also can be competitive in terms of pricing.
Manufacturers and other businesses in the country have over the years continued to rely heavily on diesel-powered generators for electricity but the recent increase in the price of Automotive Gas Oil (diesel) has pushed up their cost of production.
The Chairman, Geogrid, Mr. Emmanuel Ocholi, said the company secured a license from the Nigerian Electricity Regulatory Commission to produce electricity for 10 years. He also said the company would get gas to run the hybrid plant (with a capacity to generate power from gas and diesel) from Gaslink.
If manufacturers reduce the cost of their production, it will have a positive impact on the price of goods and services and ultimately improve the economy and provide jobs for people