Transafam Power Limited and Abuja Electricity Distribution Company (AEDC), both subsidiaries of Heirs Holdings investee company, Transnational Corporation (Transcorp Group), have signed a Memorandum of Understanding (MoU) to implement a 50MW embedded power generation project for the Idu Commercial Hub in Abuja, Nigeria.
The Idu Hub, an industrial district in the nation’s capital city, has long grappled with power fluctuations that disrupt operations and necessitate costly interventions by special aid technology to safeguard sensitive equipment. In response, many businesses have resorted to self-generation via diesel, an expensive alternative that significantly increases operational costs.
The new agreement represents a major milestone in AEDC’s transformation agenda following Transcorp’s acquisition of a 60% stake in the utility company. This partnership will enable over 250 businesses within the district to reduce their energy costs and, consequently, their overall operational expenses. The cost savings from more reliable and affordable power can be redirected towards other growth areas, driving further business development.
Additionally, the new development will benefit the four communities surrounding the hub, encompassing over 1,000 residences.
The AEDC/Transafam partnership marks a significant step forward in delivering reliable and sustainable power to Nigerians. This collaboration is poised to enhance the overall power landscape in Nigeria, fostering growth and economic prosperity for all. It exemplifies Africapitalism, the guiding philosophy of Heirs Holdings that emphasises the role of the private sector in driving social good.