From David Onuoja, Abuja
The Abuja Electricity Distribution Company (AEDC), has signed a Memorandum of Understanding (MoU) with TransAfam Power Limited.
The MoU which was executed by AEDC Ag. MD/CEO, Chijioke Okwuokenye and MD/CEO, Transafam Power Limited, Vincent Ozoude, is a 50MW power generation project for the Idu Commercial Hub in Abuja.
In a press statement released and signed by the Head, Marketing and Corporate Communications, AEDC, Adefisayo Akinsanya, said the MoU will Scale-Up the Renewable and Distributed Energy Resources in Nigeria.
The statement also said that, AEDC will fulfill the 82% of the Nigerian Electricity Regulatory Commission’s requirement for embedded power generation, ensuring reliable and consistent power supply to the Idu Cluster.
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The deal marks a further demonstration of AEDC’s transformation agenda, entering the power generation sector and reducing reliance on the local grid.
The investment is the evidence of the turnaround strategy following Transcorp’s acquisition of 60% of AEDC.
According to the statement, “the partnership demonstrates the strategy of Transafam, a leading power generator and subsidiary of Nigeria’s largest, listed conglomerate, Transcorp Group, to further expand its power portfolio to provide on-grid and embedded generation.
“The deal is further evidence of Tony Elumelu led Transcorp’s championing of its integrated energy strategy, bringing Nigeria’s natural resources and power infrastructure together to catalyse growth.
“Robust electricity supply is crucial for Nigeria’s economic renaissance. Therefore, AEDC/Transcorp partnership is a significant advancement towards delivering reliable and sustainable power and enhancing the overall power landscape in Nigeria.
“The demonstration of Africapitalism, Elumelu’s philosophy of the private sector, driven social good about AEDC”, it said.
In May 2023, a Transcorp-led consortium became the core investor in AEDC, following its 60% acquisition of the company’s shares. Since this strategic acquisition, the company has intensified efforts to upgrade substations, expand distribution networks, and integrate cutting-edge technologies to enhance power supply reliability and operational efficiency.
