The Federal Government has called on power companies operating in Nigeria to improve the local content of their activities to enhance sustainability.
The Minister of Power, Chief Afe Bayo Adelabu, made this appeal during a facility tour of MBH Power Ltd. at the weekend in Mowe, Ogun State. Impressed by the company’s assembly plant and operations, the minister urged the firm to implement a formal integration plan to improve the local content of its activities.
Additionally, he appealed to the power company to engage more Nigerians in its operations to promote job creation and boost the overall economic activity of the country.
The minister said: “One issue of our interest is local content; we expect that you have a formal integration plan to ensure that you continuously improve the local content of your activities. That would greatly benefit us. We need to reduce our over-dependence on imported components. This will alleviate the pressure on foreign exchange-related issues.
“Secondly, with a high proportion of local content in your production line, the turnaround time for orders will decrease. You won’t have to transport components from China or India, nor deal with lengthy customs processes. It’s a matter of simply placing orders.
“And lastly, job creation and boosting overall economic activity are crucial. I’m pleased with the contribution towards reducing unemployment in Nigeria and increasing the economic power of our youth. Job creation is very important. As we increase local components, you also need to engage more people.”
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He expressed excitement about the company’s foray into renewable energy, stating this would expand energy access to rural areas where less than 50 percent are connected to the national grid.
Director/COO of MBH Power Limited, Rakesh Mahapatra, informed the minister that the firm has installed 9 megawatts of electricity, built substations, and power transformers to boost power supply across Nigeria. He mentioned that, apart from completing 40 substations and 35 power transformers of different grades, the firm has an installed capacity of 9 megawatts of power to support multiple companies in Lekki and Ikorodu, Lagos.
He also noted that the company has provided solar solutions to many customers in Nigeria and supplied more than 700,000 meters through various distribution companies and the Transmission Company of Nigeria (TCN) since inception.
He said, “Our meters have been successfully tested by NEMSA. They have been in use across Nigeria’s grid, industrial, and residential networks for more than two decades. In addition to supplying transformers, we have completed almost 40 substations to date and are set to commission eight more.”
“We are also working toward commissioning 17 more power transformers by the first quarter of 2025 under TCN. We have commissioned mobile substations in Ajah and Jebba under the federal government. We have completed many air-insulated substations in Nigeria and are currently working with GE to commission a 330/132KV gas-insulated substation in Abuja Lugbe. We have also completed numerous distribution line projects, including those under NIPP and TCN,” he said.
Through its operations in Mowe, the company has employed more than 200 Nigerians. “Our factory is mainly run by Nigerian staff and has generated significant employment for Nigerian citizens over the years. We have a presence in almost all states in Nigeria, including Abuja, Bauchi, Kaduna, Maiduguri, Biu, Mayobelwa, Yola, Sokoto, Potiskum, Ibadan, Kano, and Damaturu,” he said.
Appealing to the Minister, he expressed MBH Power Limited’s interest in partnering with the Federal Government to address challenges associated with the national power grid and to provide universal metering for households.