The Abuja Electricity Distribution Company has entered into a significant agreement with Transafam Power Ltd. to provide 50 megawatts of embedded power to the Idu commercial hub in Abuja.
The Memorandum of Understanding was formalized in Abuja on Wednesday, with Mr. Chijioke Okwuokenye, Acting Managing Director of AEDC, and Mr. Vincent Ozoude, Managing Director of Transafam Power Ltd., signing on behalf of their respective organizations.
Mr. Okwuokenye highlighted that this partnership fulfills the Nigerian Electricity Regulatory Commission’s requirement for AEDC to supply 82% of embedded power generation, ensuring a reliable and consistent power supply to the Idu Cluster. He emphasized that the MoU aligns with AEDC’s strategy to diversify into power generation, thereby reducing dependency on the national grid.
“This initiative marks a significant step in advancing AEDC’s mission to provide stable and dependable electricity in the Federal Capital Territory,” said Okwuokenye.
He further underscored the strategic importance of Transafam Power Ltd., a key player in the power generation sector and a subsidiary of Nigeria’s largest listed conglomerate, Transcorp Group. The investment reflects Transafam’s commitment to expanding its power portfolio and enhancing both on-grid and embedded generation capabilities.
The agreement comes shortly after AEDC implemented key leadership changes, appointing Mr. Okwuokenye as the acting managing director, signaling a renewed focus on operational efficiency and strategic growth.
In 2023, the federal government initiated efforts to enhance power supply to industrial clusters across Nigeria. Vice President Kasim Shettima announced plans to establish direct bilateral electricity sales to end-users at the Agbara industrial cluster, part of the government’s broader Light Up energy project facilitated by Niger Delta Power Holding Company (NDPHC) plants.
Recent developments have seen the Agbara Industrial Cluster connected to the national grid, a move affirmed by Minister of Industry, Trade and Investment, Doris Uzoka-Anite, during the 2024 Manufacturing Association of Nigeria summit.
The Industrial Clusters Power Project is integral to the federal government’s commitment to bolstering Nigeria’s infrastructure and supporting economic growth initiatives under President Tinubu’s leadership.
