By Daniel Alfred
Elswedy Electric Nigeria Limited, a joint venture firm between the Lagos State Government and an Egypt_based power firm said it plans to invest about $120million or N18billion in the nation’s power sector.

The amount would be expended on the construction of a power generation plant, estimated at $100m (N15bn) and a meter manufacturing factory valued at $20m (N3bn).

The company’s Chief Investment Officer, Mr. Mohammed Radwan, disclosed this at the commissioning of its transformer manufacturing plant in Lagos recently.

He said the new generation plant is expected to produce another 15megawatt, MW, of electricity by the first quarter of next year, to complement the state’s existing 12MW from the Akute Power Plant, built by Oando Power and capacity from the Power Holding Company of Nigeria, PHCN.

The Lagos State Governor, Babatunde Raji Fashola, said, “The reality is that as we take steps to improve the stock of power generation in the country, the power that is eventually generated will have to be distributed to houses and consumers through cables and transformers, measured through electricity meters in order to facilitate fair and proper billing.”

This, he said, is the critical role the company will play through the state’s intervention programme, saying, “It will manufacture and supply transformers locally, which will significantly bridge the delay and gap that importation of transformers will entail and very soon the company will start the local manufacture of electricity meters in Lagos to bridge the gap of importation and develop a local capacity.”

He also explained that the power generated from the new plant would serve the General Hospital, Island Maternity, the High Court, Magistrate Court and about 30 street lighting projects slated for the Island.
Fashola revealed that the transformer factory has a capacity of about 1,400 transformers per annum and would be expanded as the company grows, adding that about 200 transformers were already allocated to some communities in 2009.

He therefore appealed to the Federal Government to review downwards the existing tariffs on imported raw materials for the manufacture of transformers, to encourage companies like Elswede and other prospective investors to reach their full potential, while also stimulating local production and protecting manufacturers against foreign competition.

Fashola noted that investment such as this would reduce unemployment and save foreign exchange, saying, “It may interest you to note that the factory presently has in its employment not less than 100 workers and intends to employ additional 30 workers within the next one month.

“Aside from employment opportunities, this factory also affords the opportunity of saving the huge foreign exchange previously spent on importation of transformers and also guarantees readily available products.” He added.