The PPA agreement is expected to lead to the injection of 550MW of power into the national grid at the completion of the power project to be located in Ondo state, South West of Nigeria. Besides being a new power generation firm with Nigeria, Kingline Development Nigeria Limited also has South Korean interests.
Marilyn Amobi, Nigerian Bulk Electricity Trading Plc, Managing Director signed the PPA on behalf of the Federal Government, while the Kingline Development Limited Managing Director Akinnola Fola, signed on behalf of the company.
Signing of the PPA is expected to represent an increase on prospect electricity supply in the country. However, Kingline Development Nigeria Limited is expected to ensure the completion of the project on schedule.
Moreover, the power agreement signing confirms the nation quest for power generation and the government’s commitment to ensure that all the structures that are required to attract and make investors comfortable are on the ground.
Babatunde Fashola, Minister for Power, Works and Housing, has earlier advised industrialists, directors and other employers of labour in the country not to panic or downsize their staff in the face of current power supply challenges adding that the Federal Government has put a roadmap in place that will ensure a progressive power supply countrywide.
According to Minister Fashola, the real problem in the power sector has been lack of sufficient electricity. Fashola added that, the solution to insufficient power supply is to get more power addition to the national grid
Nevertheless, the country achieved the highest generation capacity, in February this year, which was recorded to be at 5074MW for a country of no less than 150 million people as against Chad and Liberia with 84MW and 40MW electricity demands respectively.
Power outages has been a major problem in Nigeria in recent years, but the government has been amassing resources to tackle the issue