Welbeck Proposes Constant Power Supply in Free Zones, Industrial Areas to Boost Production

Emma Okonji

The CEO of Welbeck Electricity Distribution, Mr. Afolabi Aiyela has proposed a strategic partnership deal with the Ministry of Industry, Trade and Investment that will enable Welbeck supply constant electricity to Nigeria’s free zones and special industrial clusters, to boost production. 

Aiyela gave the assurance when he paid a courtesy visit to the Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite at the ministry’s office in Abuja.

The visit focused on the critical role of constant power supply in the growth of Nigeria’s manufacturing sector and explored potential partnerships to further enhance industrial capacity across the country.

During the visit, Aiyela highlighted the significant benefits that Welbeck Electricity’s customers, particularly manufacturers, have experienced as a result of a reliable and uninterrupted power supply. “Our customers, who are primarily manufacturers, have not only been able to maintain constant production but have also expanded their capacity and employed more staff,” he stated, adding that the growth is directly linked to the steady power supply they now enjoy from Welbeck distribution network.

Aiyela also discussed the possibility of partnering the Ministry of Industry, Trade, and Investment, as well as the Nigerian Export Processing Zones Authority (NEPZA), to build power plants dedicated to supplying constant electricity to Nigeria’s free zones and special industrial clusters.

“If domestic Nigerian gas were priced in naira rather than in US dollars, it would greatly benefit Welbeck and help our customers, especially manufacturers, to increase their capacity. The pricing strategy will not only enable us to grow but also provide a more stable and affordable energy supply to our industrial partners,” Aiyela said.

The benefits of pricing natural gas in naira for Nigerian manufacturers are substantial. It would reduce energy costs, protect against currency fluctuations, and enhance the competitiveness of Nigerian products in both local and international markets. By ensuring a reliable and cost-effective energy supply, manufacturers can expand their operations, create more jobs, and contribute significantly to the country’s economic growth, Aiyela further said.

The Minister expressed her strong support for the proposed partnership and acknowledged the importance of power in reducing operational costs for manufacturers.

“Power constitutes about 60 per cent of the operating costs for manufacturers in Nigeria. We are committed to supporting Welbeck and other Independent Power Producers (IPPs) to ensure that our industrial sectors receive the energy they need at a sustainable cost. This is critical to driving economic growth and achieving our industrialization goals,” Uzoka-Anite said.

Reducing the cost of electricity in Nigeria to below N150 per kilowatts, as discussed by the minister during the visit, would align the country more closely with its regional peers and provide a much-needed boost to the manufacturing sector.

Aiyela commended the minister and her team for their efforts in supporting the industry through various initiatives. “The first round of disbursements to the 700,000 beneficiaries under the Industry Revitalization Roadmap Fund is a remarkable step. I expect this to greatly benefit the real sector, especially micro and nano enterprises. These efforts are essential for the sustainable development of our industrial base and the overall economy,” Aiyela added.

According to him, the proposed collaboration between Welbeck Electricity, NEPZA, and the Ministry of Industry, Trade, and Investment, can set a new standard for industrial power supply in the country, helping to unlock the full potential of Nigeria’s industrial clusters and free zones.