Geregu Power plc has announced plans to ramp up generation to 1,300 megawatts (mw) within three years. According to Akin Akinfenwa, the company plans to achieve this after it must have run combined circle operations on the basis of the two existing plants in Geregu.
The managing director and CEO said the company already has a 435mw plant. In addition, it intends to purchase a nearby plant with a 440mw installed capacity.
Akinfenwa in an interview with AriseTV said that the company would run a combined circle operation on the basis of the existing plants to ramp up capacity to 1,300mw after obtaining the plant.
“So, we are looking at expansion of 900mw within a short period of two to three years,” he said.
Also, Akinfenwa talked about why the Fund for Export Development In Africa (FEDA), the impact development unit of Africa Export and Import Bank (Afreximbank), has decided to acquire five percent equity in the company.
The first reason, according to him, is adherence to world-class corporate governance and practices, which is driven by good leadership at both the board and management levels.
The second reason is FEDA’s firm belief in the company’s short, medium, and long-term goals of becoming the preferred power company in Nigeria and the West African sub-region.
The third, he believes, is FEDA’s belief in the Nigerian electricity supply industry as a key driver of structural transformation for trade on the African continent. “These are the three broad messages that are responsible for this transaction, in my opinion.”
He also said that the acquisition is a signal to other interested parties, especially given the status of Afreximbank and Geregu Power Plc in Nigeria’s power sector.
Akinfenwa did not rule out the possibility of FEDA taking a strategic position in the company.