FG targets revival of ALSCON with national grid connection

The Federal Government has unveiled plans to reconnect the Aluminium Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State, to the national power grid, as part of renewed efforts to revive the long-dormant industrial facility.

The company, established 27 years ago, halted production over a decade ago due to unreliable electricity and gas supply.

The decision was reached on Tuesday during a high-level meeting between the Minister of Power, Adebayo Adelabu, and the management of ALSCON, alongside officials from the Transmission Company of Nigeria (TCN) and the Niger Delta Power Holding Company (NDPHC).

Adelabu told journalists after the meeting that President Bola Tinubu’s administration is committed to restoring ALSCON’s operations, describing the project as key to job creation and industrial growth.

“This company has enormous potential in aluminium processing and can generate thousands of jobs. It can also supply raw materials for downstream industries, saving Nigeria huge foreign exchange,” Adelabu said.

He noted that an agreement had been reached on both short- and medium-term measures to connect ALSCON to the national grid through a 330kV substation being built by the NDPHC.

The minister revealed that the company’s gas turbines, which have a combined installed capacity of 540 megawatts, are in good condition and could supply power to the grid once operations resume.

“When fully activated, ALSCON can supply up to 540 megawatts, and possibly expand to 660 megawatts. This will be a major boost to the national grid and the economy,” he said.

Adelabu added that within 90 days, the government expects to achieve a short-term solution that will pave the way for the plant’s restart, generating about 3,000 direct jobs and supporting aluminium-related industries across the country.

On the issue of gas supply, the minister said the company already has an existing pipeline infrastructure, noting that supply could resume once a commercially viable pricing agreement is reached with gas suppliers.

“Gas is not the main problem here. It’s a matter of appropriate pricing. With nearby sources like Ibom Power getting gas, we’re optimistic ALSCON will soon be powered again,” he said.

Adelabu affirmed that he would personally oversee the implementation of the agreed action plan, expressing confidence that the plant’s revival would significantly contribute to Nigeria’s energy security, job creation, and economic growth.