The federal government says it will revive the Aluminium Smelting Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom state, and ensure its connection to the national grid as part of efforts to boost power generation.
Adebayo Adelabu, minister of power, made the pledge on Monday during a working visit to the company’s facilities.
Adelabu lamented that 37 years after its establishment, ALSCON was yet to deliver its full potential due to lack of electricity supply.
“These huge investments have suffered from lack of power supply in the last 27 years,” Adelabu said.
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“We are aware of the enormous potential this institution holds for employment, local aluminium production, and saving foreign exchange.”
Adelabu said the government would implement a short-term solution to connect ALSCON to the national grid while pursuing a long-term plan for sustainable supply.
He also promised to ensure the completion of the abandoned 330kV substation in Ikot Abasi, a project of the Niger Delta Power Holding Company (NDPHC) that was about 90 percent finished before being left idle.
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“Efforts will be made to ensure its completion within the shortest possible time, as this is the only way the country can get value for the huge investment in ALSCON,” he said.
ALSCON HAS 540MW TO SUPPORT NATIONAL GRID
The minister disclosed that ALSCON’s power plant has an installed capacity of 540 megawatts (MW), comprising six turbines of 90MW each, all in good condition.
“Once the 330/132kV substation and the 330kV DC lines from Ikot Ekpene to Ikot Abasi are completed, we will be able to evacuate the entire 540MW to the national grid,” he said.
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He added that the plant’s capacity could be expanded by 120MW to reach 660MW through system upgrades, saying the project aligns with the federal government’s plan to provide electricity to most Nigerians by 2030.
“You can imagine what this will add to the national grid capacity. So I’m happy that I came here today. I’ve listened to the company, I’ve listened to all the stakeholders, and we have a solution in sight,” he said.
“All we need to do now is to go back and work on all the agreed action lines, which I will personally supervise. And I believe that once, within the next 90 days, we’re able to achieve the short-term solution, the country will feel the impact of this company beginning operations.
“From the number of employment opportunities they will generate for us in the country, they have the potential of employing up to 3,000 employees here.”
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On the plant’s gas supply challenge, Adelabu said the issue was primarily commercial and could be resolved through fair pricing agreements with gas producers.
“If the price is right, gas companies will supply. It’s a competitive market, and the pipeline here is functional. Once the right price is agreed, the turbines will be fired immediately,” he said.
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Earlier, Viacheslav Krylov, development adviser at ALSCON, said the company had struggled to restart operations despite a presidential directive issued in July 2024.
He said full restoration of operations would enable ALSCON to achieve a production capacity of 200,000 metric tonnes per year within six years and provide more than 15,000 jobs.
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“Smelting is a power-intensive process requiring continuous, stable, and high-volume electricity,” Krylov said.
“The current energy options at the plant are inadequate to restart operations.”
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He appealed for improved grid stability, a dedicated backup supply, and strategic power purchase agreements (PPAs) to secure the plant’s long-term viability.
“Of significant importance is the wheeling of excess power generation from ALSCON to the grid,” he said.
Krylov also said ALSCON’s revival would improve national grid capacity and generate revenue for the company’s sustainability.
