Stakeholder seeks decentralization of power generation, distribution

The Chairman, Harvest Feeds Agro-Processing, Goke Adeyemi, has called on the government to decentralize power generation and distribution such that individuals and state governments could tap into it and distribute to companies and industries that needs power seriously.

He said most industries in Nigeria were starved of power supply which makes them (industries) run their activities with diesels, which consequently increases the cost of production.

Adeyemi who spoke with Tribune Online on Thursday, said efforts of the government in power generation and distribution are not being felt at the rural areas where industries are located.

“President Muhammadu Buhari made a speech on 1st January, and in the speech there are few items that I think is good, but however it depends on the deliverable, how it will benefit Nigerians especially cassava agro-processing in Nigeria.

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“One of the things the president mentioned was power supply. All the efforts of the government in the last many years, we are still unable to feel it in the industry especially those of us that are in the rural areas.

“As I speak to you now, I use generator up to about 95 per cent of my production time and that it adding close to 27 per cent in terms of cost of production, that is too high and that will make us not competitive”, Adeyemi noted.

He, therefore called for the total decoupling of the power generation administration in Nigeria and allow individuals and state governments to get involved, while the Federal Government regulates it.

“So, what I think the government can do is to totally decouple the power generation administration in Nigeria whereby we will have satellite power generation and distribution companies or units, it could be owned by the government or individuals but government can regulate it.

“You can imagine people sitting down in Abuja making power policies for all the nooks and crannies in Nigeria, it cannot work”, he said.

Furthermore, the Cassava Processor explained “example in Ogun state, we know where the industries located far better than someone in Abuja, in Abia state, the people there will know where industries are constituted far more than someone in Abuja, people in Nasarawa state will know where they need power to support the industries far more than somebody in Abuja”.

“My thinking is that they need to do a further decentralization of power in Abuja such that states and willing individuals can be a generation and distribution to where power is needed.

“I know with gas, we can have low cost of production, but the gas network is still very inadequate. In most places where the industries are in my area, there is no gas line there.

“Am prepared to use gas, but there is no gas line in my area. I think as the President has said something, I believe he will work on it.

“I think we can do a little bit more in the area of generation and distribution of power and localize it, make it decentralized, but you can regulate it such that individuals and states that know where the energy requirements are, can support those people with power, and that will make us competitive”, he added.