The Ajaokuta-Kaduna-Kano (AKK) gas pipeline is expected to provide the fuel for a N50 billion, 50-megawatt (MW) power project being developed by Welbeck Electricity Distribution Limited for the Idu Industrial Cluster in Abuja.
The first phase of the project, comprising 10MW, is expected to be completed by December and will provide dedicated electricity to manufacturers in the industrial cluster, the Managing Director of Welbeck Electricity Distribution Limited, Chief Afolabi Aiyela, said at the groundbreaking ceremony in Zuba, Abuja yesterday.
The project is designed to use gas available along the AKK pipeline at Zuba and transmit the generated electricity through a 16-kilometre, 33-kilovolt line to the Idu Industrial Estate.
Aiyela said the company was engaging the Nigerian National Petroleum Company Gas Marketing Limited (NGML) and NNPCL Gas Infrastructure Company (NGIC) to secure a consistent supply of gas for the plant.
He said: ‘We are starting with 10 megawatts here because it is close to the gas line. I am running a 33KV line down to Idu Estates.
‘That 10 megawatts will take care of the people that need it the most, the Nigerian factories that need it the most.’
According to him, the remaining 40MW would be developed within the Idu Industrial Estate, closer to the customers.
The project is expected to provide 24-hour electricity to the first cluster of manufacturers in Idu and reduce their dependence on diesel and low-pour fuel oil (LPFO), which are used to power their operations.
The project is being developed under the framework allowing embedded and decentralised power generation, while the company is expected to work with the Abuja Electricity Distribution Company (AEDC) on distribution. Existing plans for improving power supply to the Idu Industrial Cluster have also included embedded-generation arrangements involving AEDC.
The Minister of Power, Chief Joseph Olasunkanmi Tegbe, who led the groundbreaking ceremony, pledged Federal Government support for the project and said President Bola Ahmed Tinubu was committed to its actualisation. Tegbe has been Minister of Power since June 2026.
Tegbe said the government would review the most cost-effective option for transmitting electricity from the Zuba plant to the Idu Industrial Cluster.
‘We need to ensure the transmission happens. And then even distribution. I am sure Abuja Disco is represented here. Because if you want to actually distribute to you, there must be a handshake,’ he said.
The minister said the project was consistent with the decentralisation provisions of the Electricity Act 2023, which opened greater opportunities for private-sector participation in electricity generation, transmission and distribution.
He said empowering private investors was essential to increasing participation across the electricity value chain and improving access to power for end users.
Tegbe also disclosed that the Federal Government was conducting a technical audit of the nation’s power infrastructure, with the initial focus on three major energy zones.
He said the Lagos axis accounted for about 40 per cent of Nigeria’s electricity demand, followed by the Abuja-Kaduna-Kano axis.
The minister identified vandalism of electricity infrastructure as one of the major challenges confronting the sector.
Aiyela said the N50 billion project would be financed with the support of Wema Bank, Bank of Industry and Sterling Bank, while Mikano would provide the generating engine.
He said the need for reliable electricity in Idu informed the decision to commence the 10MW phase before completing the entire 50MW capacity.
The Secretary-General of the Idu Industrial Cluster, Yakubu Mohammed, commended Welbeck Electricity for fulfilling its promise to provide dedicated power to the area.
Mohammed said electricity was critical to industrialisation and job creation, adding that the cluster has more than 50 factory owners whose businesses require reliable electricity to operate efficiently.
The Idu initiative is also being developed within the broader Federal Government effort to improve electricity supply to industrial clusters and reduce energy costs for manufacturers.