Just In : Government set to take over control of BEDC
The Delta, Edo, Ekiti, and Ondo States’ governments are tinkering with the option of taking over control of the Benin Electricity Distribution Company, BEDC, to access, distribute, and improve power supply in the four South-South and South-West regions.
Governor Sheriff Oborevwori of Delta State, who disclosed this in his address at the 37th Annual General Meeting of the Manufacturers Association of Nigeria, MAN, Edo/Delta branch, in Asaba, said the four states plan to reorganize and fund the BEDC to fulfill the Federal Government’s initial objectives of farming out electricity distribution to third party operators.
Represented by his Senior Policy Adviser, Rt. Hon. Funkekeme Solomon, the governor said that with its abundant gas deposit, Delta intends to collaborate with the private sector to generate its own power.
His words: “One of the options under serious evaluation by the four states – Delta, Edo, Ekiti, and Ondo – under the control of the Benin Electricity Distribution Company (BEDC), is to take over the distribution company…
“Reorganize and fund it to enable it to fulfill the initial objectives of farming out electricity distribution to third party operators by the Federal Government.
“We are also looking to set up mini-grids across the state. Before they removed power generation and distribution from the Exclusive List, the previous administration of Sen. Dr. Ifeanyi Okowa had sought to wean government offices and facilities from the erratic national grid.
“Due to the then limit of 10 megawatts that can generated in a mini grid, a private company, Bastanchury Power Solutions, invested to build, operate, generate and distribute electricity for supply to only government offices.
“This became a successful venture with tremendous savings for the government from fueling and maintaining the generators and of course paying outrageous bills to BEDC for unreliable electricity supply.
“Today, the Government House and the three arms of the State Secretariat enjoy 24-hour power supply. We hope to replicate this option by creating additional mini-grids in the state.
“Access to reliable public power supply or lack of it is the main driver of industrial development. Unfortunately, while Nigeria regaled in wholesale importation of finished and exotic goods, the indigenous manufacturing community contended with serious obstacles, chief of which is the obscene cost of generating their own electricity to power their machines.
“I am sure that your Association must have heaved a collective sigh of relief when the electricity sector was transferred to the Concurrent List.
“Shortly before leaving office, former President Muhammadu Buhari signed a series of constitutional amendments into law. One of the highlights of the amendment was the Fifth Alteration Bill No. 33, Devolution of Powers (National Grid System). This effectively removed the electricity sector from the Exclusive List, enabling states and private organizations to venture into power generation and distribution.
“Under the M.O.R.E. Agenda of my Administration, we are leveraging on this new frontier to explore the options on the road map to generating and providing regular and reliable power supply in Delta State.
“With abundant gas deposits in our state and the entire Niger Delta where gas flaring has become permanent features in our landscape, we intend to tap into this resource and partner with the private sector to generate our own electricity for stable power supply in Delta state.
“When we achieve the provision of reliable power supply, it will be easier to execute our developmental agenda as we believe that unreliable supply of electricity from the public grid has been the major impediment to realizing previous development agenda.
“Our projection is that in the next couple of years, the status of power access in Delta State will be such that manufacturers will find that critical input in production irresistible and move to our state.
“In pursuit of the greater vision of harnessing the enormous opportunities for economic growth and development inherent on international commerce and trade, Delta State has secured a license from the Nigerian Export Processing Zones Authority (NEPZA) for the Delta Special Economic Zone (DSEZ).
“This arrangement will subsume the Agro Processing Zones, the development of which will be funded by the African Development Bank. We will sustain and vigorously pursue these with a view to harnessing the main objectives of the Special Economic Zones, which are the generation of additional economic activities; and the creation of employment opportunities along with the development of infrastructure.
“Generous tax incentives will soon be unveiled for companies that will take advantage of the opportunities on offer.
“We have created special industrial zones in Ogwashi-Uku, Kwale, Warri, and other locations anchored on collaborating with the private sector.
“In effect, the opportunities available to investors in Delta State are many and varied. Mr. President, ladies and gentlemen, Delta State is primed to provide what is required, and desired by the private sector to make them partner with the government.
“For all the opportunities on offer, our game plan is that they will be private-sector driven. As is now generally acknowledged, the government has no business in business but provides a clement environment for businesses to thrive.
“I thank you for choosing our state capital to hold this Annual General Meeting and invite you to partner with the government in executing the road map to making Delta the hub for manufacturing,” he said.
