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Sahara Energy earmarks N31.6bn for power projects

By on March 14, 2013

Sahara Energy has earmarked $200 million (N31.6 billion) for the development of the Nigeria’s power sector.

The company, which won bid for the Ikeja Electricity Distribution Company recently, hinted in Lagos last week, that it would be investing heavily on new meters to ensure that consumers within the Ikeja distribution zone feel the impact of the energy company.

Speaking at the Akindelano Legal Practitioners Seminar Series in Lagos, the Executive Director, Sahara Group, Tope Shonubi, lamented the impact of irregular power supply in the country.

According to him, Nigerian’s is spending over N17.5 billion yearly on generators due to inadequate power supply and this is affecting the Small and Medium Enterprises (SMEs) negatively.

“Self generation of electricity cost five to ten times more than Power Holding Company of Nigeria generated power and lead to lack of profitability of SMEs sector due to high self generational costs.

He noted that only 36 per cent of the nation’s populations have access to electricity.

He assured that consumers would, within the Ikeja Electiricty Distribution Company begin to feel the company’s impact in electricity distribution in Lagos state.

He said that funding requirement for the Nigeria power sector is high, adding that,” I am not convinced that Nigerian banks are ready to assist.

“Egbin investment started in 2007 and yet to be completed. It took a lot of efforts to convince foreign investors into investing in the country. There is need for government to utilise the capacity being utilized for growth in the power sector. There is need to increase support for other sectors’ of electricity requirement; decrease cost of living as financial provision is being made in the household sector for power supply at homes; decrease cost of business thus discouraging reducing business profits; encouragement of foreign capital and investors and increase impact on growth in national Gross Domestic Product thus, increase rate of economic development as a nation. The dominance constraint is lack of an enabling economic framework.

The Sahara Energy is at the forefront of the trading business locally (Nigeria), regionally (Ghana and Cote D’Ivoire), and internationally (US Gulf Coast, Europe and Asia). The company services a wide range of customers including independent marketers, major marketers, industrial customers, Exploration and Production companies.

The company’s strength lies in its understanding of the regional and global market place and ability to identify supply and demand opportunities. Effective management and synchronization of Trade, Finance and Operations enables it to maximize efficiency and profitability, while minimizing risks.