Axxela Integrated Power has signed a Power Purchase Agreement with Evans Industries Limited, one of Nigeria’s leading manufacturers of home and personal care products, in a move designed to improve energy reliability and reduce production costs for the company.
The agreement, announced in a statement and formalised at a signing ceremony in Lagos, will see Axxela Integrated Power provide Evans Industries with cost-effective and reliable integrated power solutions. Both companies say the deal is aimed at cutting energy costs, reducing downtime, and improving efficiency in a sector where electricity supply challenges remain a major barrier to competitiveness.
Speaking at the ceremony, the Managing Director of Axxela Integrated Power, Mr. Olufisayo Duduyemi, said the agreement was more than a commercial deal but a long-term partnership focused on creating value. “This agreement represents more than just a contractual relationship. We believe it marks the beginning of a partnership built on trust and a commitment to delivering reliable energy solutions that create long-term value for Evans Industries,” he said.
Duduyemi explained that many Nigerian industries struggle with unreliable electricity supply, forcing them to rely on self-generated power, usually diesel generators, at much higher costs. He noted that this situation has weakened companies’ profit margins and slowed down industrial growth. “We recognise that one of the biggest challenges facing industries in Nigeria is the lack of reliable, affordable, and sustainable energy. Too often, manufacturers and businesses have been compelled to self-generate power at higher costs, with the resulting impact on revenue, profitability, and growth,” he said.
The Axxela boss added that his company views these challenges as opportunities to support the Federal Government’s efforts to harness the benefits of natural gas and gas-to-power solutions. He stressed that Axxela aims to work with forward-looking companies like Evans Industries to deliver customised, innovative energy solutions. “Energy reliability is not just an operational concern; it is a strategic driver of competitiveness and resilience,” Duduyemi said.
Evans Industries, a household name in the production of home and personal care items in Nigeria, has faced the same energy challenges that affect most manufacturers in the country. The company has expressed optimism that the new deal will allow it to strengthen its operations, reduce production downtime, and cut costs associated with power generation.
Industry experts note that power supply remains one of the greatest obstacles to industrialisation in Nigeria. Many businesses spend a significant portion of their operating budgets on diesel, gas, or other alternative energy sources due to unstable grid supply. According to analysts, deals like the one between Axxela Integrated Power and Evans Industries highlight a growing trend of private sector solutions to address the country’s energy gap.
Axxela, which has been expanding its portfolio of decentralised power solutions across Nigeria, says the partnership reflects its commitment to supporting the nation’s industrial growth. By providing reliable and cheaper energy, the company believes it can play a key role in strengthening manufacturing competitiveness, improving job creation, and boosting overall economic performance.
The company stated, “We are proud to welcome Evans Industries on board as a long-term partner. This partnership underscores our commitment to supporting Nigeria’s industrial growth by delivering decentralised, innovative power solutions that bridge the nation’s energy gap.”
Nigeria’s manufacturing sector has consistently identified power supply as a critical factor affecting its ability to compete with imports and expand into export markets. The Manufacturers Association of Nigeria (MAN) has repeatedly called for sustainable power solutions that would reduce production costs and enhance growth in the sector. Partnerships such as the Axxela-Evans deal are therefore seen as a step in the right direction to bridge the gap between energy supply and industrial demand.
Observers believe that if more companies adopt such partnerships, it could significantly improve productivity in Nigeria’s manufacturing sector, which contributes about 8 percent to the nation’s GDP. Reliable energy, they argue, could also support Nigeria’s drive toward diversification of its economy beyond oil, with industries like homecare, food processing, textiles, and cement standing to benefit.
The new agreement between Axxela and Evans Industries comes at a time when government policies are increasingly encouraging private sector participation in the power sector, especially through gas-to-power projects. With natural gas reserves among the largest in Africa, Nigeria has the potential to use gas as a cleaner and more affordable fuel to power its industries.
For Evans Industries, the partnership is expected to strengthen its market position by ensuring steady production, better cost management, and improved competitiveness in the fast-moving consumer goods sector. For Axxela, it is another opportunity to demonstrate how private-led power solutions can complement national efforts to solve Nigeria’s long-standing electricity challenges.
