Geregu: Talks underway to address power evacuation challenges

Geregu Power PLC, a key player in the Nigerian power sector, is currently engaged in discussions with the government and other stakeholders to tackle power evacuation challenges as the company aims to ramp up its generation capacity. In a recent interview with CNBC Africa, Paul Gbededo, an Independent Non-Executive Director at Geregu Power, highlighted the importance of addressing the hurdles faced in power generation, transmission, and distribution. Gbededo emphasized the need for collaboration with various stakeholders to ensure that Nigerians have access to reliable and sustainable power supply. The company's management team recently made a courtesy visit to the Nigerian Exchange Group (NGX), where they received a warm welcome and expressed their commitment to deepening the market. Since Geregu Power's listing in October 2022, the company has witnessed increased activity in its shares, attracting investors like Afrexin, which acquired a 5% stake in the firm. Gbededo underscored the importance of maintaining stakeholders' confidence by delivering on expectations and aspirations. He pointed out the significance of dividend payments and transparent financial reporting in building trust among investors. Looking ahead to 2023, Geregu Power is not only focused on its current performance but also on expanding its operations. With an installed capacity of 435 MW, the company is exploring opportunities for growth despite the existing challenges in the sector. Gbededo highlighted the three main challenges in the power sector: generation, evacuation/transmission, and distribution. While Geregu Power falls into the generation category, the company also faces the critical issue of evacuation capacity. He stressed the importance of collaboration with external parties, including the government, to address these challenges collectively. Discussing the federal government's decentralization policy, which grants states the authority to generate and transmit power, Gbededo acknowledged the need for further clarity on the implementation of the policy. He emphasized the importance of workshops and discussions to iron out any ambiguities and ensure a smooth transition to the new framework. Gbededo expressed Geregu Power's commitment to increasing its generation capacity to align with the government's target of reaching 20,000 MW. He hinted at potential future projects like Geregu 2 and Geregu 3 to bolster the company's position as a leading power generator in Nigeria.