The contract awarded for the supply of power to the production hub located off the Benin-Sapele road, has been completed, and the small scale businesses in the hub are reaping the benefits.
Lucky Lumac Nigeria Limited completed the project, which was contracted on 15-01-2019 with contract number ocds-fmoaoq-edsg-ghp9-00002, for a total of 39.979 million naira.
At the time of inspection, the production hub was receiving full power from the Ossisimo power plant. Ossiomo Power in Benin City is an independent power plant that was built to supply power to the Benin Industrial and Enterprise Park as well as the surrounding local communities in Ologbo, Ikpoba Okha Local Government Area, Edo State.
The project’s completion is in line with the Governor, Godwin Obaseki’s promise of ensuring reliable power supply, as well as his efforts on infrastructure renewal, industrialisation, and social development through the establishment of production and innovation hubs in the state
In an interview with the Dataphyte project tracking team, manager of one of the companies in the hub; Ms. Iyalome of Eco Waste to Wealth Ltd confirmed that her manufacturing plant has benefited from the power plant’s electricity supply since the project’s completion.
Another resident, who requested anonymity, stated that the Benin Electricity Distribution Company (BEDC’s) supply of electricity has been on the decline, putting small business owners in the hub in a difficult position and forcing them to rely on alternative sources of power, which only added to the cost of production.
While applauding the government’s efforts to provide a 24-hour supply of electricity to the hub, both respondents expressed concern that, while the supply is consistent, the cost of purchasing electricity is high due to high tariffs. They called on the government to look into the situation to help reduce the cost of production so as to maximise profit.
Electricity’s global industrial applications have advanced rapidly, with industries utilising large amounts of electrification to generate power to all technologies required for production.
According to Samson Aladejare, a Lecturer of the Department of Economics, Federal University Wukari, Nigeria, accurate supplies of modern electricity for the commercial sector is now an indication of a country’s economic health. Edo state’s electrification projects that especially target production hubs could boost socio-economic outcomes across the state.