By Sulaimon Salau
The quest to build an Independent Power Project (IPP) in Lagos State begun in the administration of Former Governor Bola Ahmed Tinubu, when he invited the Enron Power Company to construct a 270mega watts power plant in Ikorodu area of Lagos.
The project, being the first of such initiavite by any state government in the country, generated so much controversy, as to its legality and finally became a mirage, through a well-synchronized political antics of the then federal government.
This heralded the interest of some other state governments that are quick to reckon with the insignificant impact of regular power supply to the economic base of their territory to adopte the independent power project formula.
In good faith, the states have put in place facilities that could foster their agenda and deliver their people from the wrath of the national power grid, even though the Federal Government has not relented in dolling out promises to revitalize the ailing sector.
In December 2010, the federal government, through the Minister of State Power, Mr. Nuhu Somo Wya, came out in clear terms to make a strong case for states and local governments to take advantage of the power sector reforms to embark on self power generation projects.
Wya said: “when local and state governments are allowed to generate and distribute electricity, at that level, the reform that we are pursuing will make life much more meaningful. The more energy we have, the more employment we will have.”
Some of the states that have put power projects in place includes; Cross River, Edo, Akwa Ibom, Rivers, Lagos and Ogun States, among others, which have also expressed the challenge impose on them by the monopoly of distribution owned by the Power Holding Company of Nigeria.
As good the moves are, this major part of the power chain has remained a great challenge for them to get the power generated from the facilities to the required destination, hence the need to strategize for proper distribution of power, which has recently caught the attention of the government.
Redefining its strategies, the Lagos State government has blaze the trail by erecting IPPs close to the deserved network, in other to harmonise the system for a smooth distribution of power.
One of such move was recently switched on in Lagos Island last week to generate 10 mega watts of electricity to power some public utilities on Lagos Island, while plans at advanced stage to proceed to mainland.
The plant will generate power by utilizing Compressed Natural Gas (CNG), which is a purer and cleaner alternative to diesel-powered Plants. It is the first of its kind in Lagos and has been built to the highest global thermal operating standards aimed at delivering uninterrupted supply of electricity to street lighting on 20 streets, the Lagos High Court as well as Island Maternity, General Hospital and some other facilities within the Lagos Island Central Business District (CBD).
Already, it was estimated that the state would require between 12,000mega watts (mw) to 14,000mw of electricity in short term, and expected to rise geometrically owing to the booming commercial activities in the state.
Governor of Lagos State, Babatunde Raji Fashola said that his administration has taken up the responsibility of electrifying the nook and crannies of Lagos State through its “Light up Lagos” agenda.
As part of this measure, the governor said he has commenced a power audit on the whole state which has been concluded in some locations including Shomolu, Matori and Lagos State Secretariat, Alausa, Ikeja among others.
Relating the moves to the national power aspirations, Fashola said: “We intend to embrace the power sector reforms programme driven by Mr. President, we hope that those entrusted with the responsibility of driving that reform will have the courage, the sense of urgency and the dedication that is necessary to finally free-up the sector and let private capital come in. The possibilities have already become manifest in Lagos State.”
“Already, we have received many entreaties to expand the project. And we are committed to do so. It is not the Island alone that we are concerned about, but the whole of Lagos State. We have completed the power audit of at least 500 buildings on the central business district of Lagos Island in the axis of Broad Street, Marina and its immediate environs.
“And that indicates to us that we will need a 114mw of power to power the entire Lagos Island Central Business District. The experts told me that it is possible to deliver this in 24 months. The only problem that stands on our way is to get gas across from to the Lagos Island. There is a group that is already showing interest, but whatever it takes, I intend to leap from the front to take that gas across the Lagoon.
“The short term benefit of this project, apart from providing electricity uninterrupted and in an efficient manner, it saves Lagos state at least 46 per cent of the revenues that it spent currently on diesel and on generators over the life of this project. Secondly, it reduces the emission and the noise that has a very adverse impact on our life expectancy. In a short term, we will be taking off at least 30 generators, out of the system.
On the mainland, Fashola said his government has completed the power audit for Shomolu, which is a hub of printing business in Nigeria. “Power audit has been completed, our biggest challenge now is land. Im told that we need nothing less that a 4,000 square meters of land.”
He therefore appealed to any public-spirited person in Shomolu area to lease or sell the land, indicating the government’s interest in buying without any delay.
“We have also completed the power audit for the Lagos State Secretarial in Alausa and we are rising very quickly now to procurement, in other to build an independent power plant for the whole of the secretariat in Alausa and take our government off the power grid. In that way we expect that the power that we do not take would be available to PHCN to feed consumers who are yearning for power.
“So, in every place where we find it possible to generate power without necessarily distributing it and there is stock of off-takers in that environment, our government will be ready to pursue projects like this. Also the power audit is almost completed in Matori industrial estate so that we can also provide power to help entrepreneurs and manufacturers.”
Lagos State, given its peculiarity, as the economic hub of Nigeria and the West African sub-region, with a population of 18 million people is projected to emerge the third largest mega city in the world after Tokyo (Japan) and Bombay (India) by year 2015 (UN-Habitat).
In addition, the state accommodates 22 industrial Estates, 2,000 Industrial complexes, 10, 000 Commercial Ventures, Sea and Air ports. It also serves as host to Head Offices of Financial Institutions, Telecommunication Giants, Oil Companies and upcoming Information and Communication Technology Players.
Permanent Secretary, Office of Works, Lagos State Ministry of Works and Infrastructure, Engr. Bambgose-Martins said: “It is therefore pertinent that an efficient and reliable power supply network will serve as key infrastructure needed to revamp the economy, alleviate poverty through the creation of wealth and job opportunities, increase productivity as well as enhance security. In addition, a healthier environment and improved quality of life is guaranteed through a drastic reduction in the greenhouse effect arising from the air pollution emitted from the extensive use of Power Generating Sets as a secondary means of providing power to our homes, places of work and industries.”
Investors have however continued to scramble to secure such humanitarian projects to boost their corporate profile. This was obvious between the First Bank and Fidelity Bank bosses, as they jokingly sought for stakes in similar projects planned for the state.
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