Transformer Factory Boosts Power Supply

For too long, in the Lagos metropolis transformer explosion has become a common  phenomenon.  This is because over 10, 000 houses were normally connected to a  transformer.  When such explosions occur, the particular community would be left at  the mercy of the Power Holding Company of Nigeria, PHCN, as the residents, in most  cases, would be without power supply for over a year.

With the establishment of the first ever transformer factory in Lagos State,  southwest Nigeria, incidents of transformer explosion may be over. A transformer  factory has been built in Badagry, and it is expected to produce 1,400 units  annually.

Elsewedy Electrical Nigeria Limited, an Egyptian transformer manufacturing company,  is the brain behind the establishment of the factory.  Last year, the company  test-ran its facility and produced 200 transformers, which were distributed to  communities in Lagos State.

Before now, transformers were imported into the country at a very high cost. Between  2007 and 2008, the Lagos State government was only able to supply 108 imported  transformers to communities in the state. This was against the annual average demand  of about 700 transformers.

Last Tuesday, the drums were rolled out for the commissioning of the ultra-modern  factory. At the event were Governor Babatunde Fashola; the Deputy Governor, Princess  Sarah Adebisi Sosan, members of the State Executive Council; members of the  legislature at both the state and national levels; Chairmen of Local Government  Council and Development Areas, traditional rulers which include the Akran of  Badagry, Oba Aholu Menu Toyi I and the Egyptian Charge D’Affaires, Sherif-Elleithy,  among others.

Chief Investment Officer of Elsewedy, Mr Mohammed Radwan, said the successful  completion of the project was an example of mutual co-operation and hard work. He  disclosed that the company was planning to invest about $100 million in electricity  generation and another $20 million in production of meters in the nation..

According to him, Elsewedy has over 70 years experience in producing quality energy  products across the globe and does not consider itself a foreigner anywhere in  Africa. He promised that the company was in Nigeria to provide job opportunities and  transfer technology, explaining that the company saw the opportunity and accepted  the challenge to do what it takes to achieve those goals.

Special Adviser to the Governor on Commerce and Industry, Mrs Sola Oworu said the  completion of the project was another manifestation of the successful collaboration  with the private sector in project implementation.

She disclosed that the project was a joint venture between Elsewedy Group, Egypt,  which provided 94.74 per cent and the Lagos State Government, 5.26 per cent as  equity contributions.

Governor Fashola appealed to the Federal Government to consider a downward review of  the tariff charged on the imported components used in the manufacturing, stressing  that a downward review would encourage more investors like Elsewedy to invest in  Nigeria.

According to him, the successful production of transformers in Nigeria by Elsewedy,  had proved beyond reasonable doubt that it was very possible to generate electricity  locally in Nigeria.

“The fact that electricity has not failed in Cairo, the home base of the company  where it plays a major role in the power sector, is a testimony to the capabilities  of the Elsewedy Company which is also present in many parts of Middle East and  Africa.

“Let us begin to deploy African solution to African problems. There is no rocket  science in what we have done. In many parts of the world, transformer manufacturing  is part of a cottage industry and it should not be different in Lagos or any other  parts of the country”.

“Regular and steady electricity remains the only missing infrastructure that is   mitigating against the growth of the economy of this country and the actualization  of the potential of our people, their freedom from poverty and as long as we remain  in government, we are committed  to putting the misery of electricity behind us once  and for all,” Fashola said.

He added that “if you want to imagine how simple life would be with electricity,  just think of how much extra you pay to grind pepper, how much extra you use to  transport yourself, to get water supply and diesel to power your generator at home,  you will realise that you will save more and be walking away from poverty with  smiles on your faces.”

He stated that his administration had a solid foundation to build on from the  pioneering role played by the last administration in the state which led to the  breakaway from the former National Electric Power Authority’s monopoly by delivering  the first Independent Power Project in the country.

Fashola explained that the present administration had followed on that first by  delivering another Independent Power Project that had delivered 12 megawatts to  Adiyan and Akute waterworks as at today, adding that his the administration had not  stopped there but had put another IPP on stream which would be delivered by the  first quarter of 2011 with another 15 megawatts.

The 15 megawatts, he said, would supply electricity to the whole of the Central  Business District on Lagos Island. Other benefiting areas, he stated were the Island  Maternity Hospital; State House, Marina; Lagos High Court and at least 30 streets.

The governor said the unveiling of the power sector reform by the Federal Government  will even make things easier in the sector and provide the opportunity for the state  to invest.

“We will continue to work with Elsewedy to ensure that their partnership ideals and  their investment intentions are realised for our mutual benefit and the benefit of  our people.

“What has happened here is a simple manifestation of what can happen when a  government has time to plan and to implement the plan. It can only happen in a  democracy. The idea did not start today”

“The first milestone is behind us. What was a dream has become a reality and it  happened in less than two years. We are sure it is not rocket science. Our people  are already employed here, not less than 100 people are already working here.

“The produced transformers are already strengthening the rural electrification  programme of the state government with the entire request for transformers in the  state to be purchased from the factory so that the money, the economy and the jobs  would be kept locally,” he said.

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