• Monday, May 27, 2024
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Ogun mulls alternative energy supply for manufacturing companies


The Ogun State Government has mulled the option of generating alternative energy for manufacturing industries by collaborating with the Nigeria Gas Company (NGC). Already, the NGC has been asked to work out the modalities of having gas pipelines laid to reach manufacturing companies across in order to aid the production capacity and reduce cost.

The move was prompted by the call made by the Nestle Nigeria plc and the Flower Gate Industrial Estate at the Sagamu-interchange, along Lagos-Ibadan expressway, soliciting Ogun state government’s support on alternative energy supply to manufacturing companies operating in the state.

Bimbo Ashiru, the commissioner for Commerce and Industry, who disclosed this said having considered the importance of gas to industrialisation, the State government is beginning to collaborate with Nigeria Gas Company on possibility of laying gas pipelines to different manufacturing industries for optimal production capacity and reduced cost of production.

Ashiru, who spoke in Abeokuta at a meeting with owners and operators of industrial concerns within the Flower Gate Industrial Estate along Sagamu-Lagos interchange, indicated that the move was part of measures by government to support industrial revolution, employment and increased Gross Domestic Product (GDP).

According to him, ‘’the agricultural and industrialisation policies of government meant to, among other things generate employment, would flourish when companies have regular access to energy without restriction. Gas as an alternative source of energy is cheap and of minimal environmental hazard compared with other sources of energy.”

He stated that it was a deliberate policy of government to ensure that companies with value chain advantages are concentrated in the same area to make raw materials and packaging easily accessible and in the long run, reduce cost, pledging that it would not relent to take steps to create enabling environment for investors to operate.

“That is the reason government is careful in allocating land to companies, the Governor is constantly monitoring the allocation of lands to ensure that only companies of same scheme of operation are located around same particular area,” Ashiru explained.

The Commissioner expressed satisfaction about the cordial relationship among companies in the industrial estate, disclosing that no fewer than 25 companies had established their businesses in the State since the inception of the present government and expressed optimism that more are still coming.

Martin Woolnough, managing director, Nestle Nigeria plc, had solicited earlier on behalf of other industrialists for government’s support on having alternative energy supply in order to increase production capacity and reduced production cost.

Woolnough commended the State Government for its untiring efforts to enhance security, infrastructure and skill development which he said are factors needed for industrial success, noting that collaborative efforts among industries within the estate were being intensified for optimal advantage.