FG Moves to Reconnect ALSCON to National Grid, Targets Revival Within 90 Days
The Federal Government has unveiled plans to reconnect the dormant Aluminium Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State, to the national electricity grid as part of ongoing efforts to revive the once-thriving industrial complex.
The company, which halted production nearly 10 years ago due to inadequate power supply, has been identified by the government as a key asset capable of driving industrial growth, generating jobs, and saving foreign exchange through local aluminium production.
The decision followed a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and ALSCON’s management team at the company’s conference hall in Ikot Abasi. The meeting also had in attendance officials from the Transmission Company of Nigeria (TCN) and the Niger Delta Power Holding Company (NDPHC).
During the session, ALSCON’s management, represented by Project Manager Ruslan Matrenin and Acting Managing Director Ime Inyang, highlighted persistent challenges facing the plant, including inadequate gas supply, power shortages, security concerns, and ongoing legal disputes.
Addressing journalists after the meeting, Minister Adelabu reaffirmed President Bola Tinubu’s commitment to restoring ALSCON’s operations, describing the facility as a “strategic national investment” with enormous potential to stimulate industrialization and economic growth.
“This plant has suffered from power issues for nearly three decades and has never been connected to the national grid.
Yet, its potential in the aluminium value chain—spanning upstream, midstream, and downstream—remains enormous,” Adelabu said.
He added that the plant’s revival could create thousands of jobs and serve as a crucial supplier of raw materials to local aluminium manufacturers, thereby reducing import dependency and conserving foreign exchange.
The minister disclosed that an immediate and medium-term plan had been agreed upon to tackle the power supply issue.
“We have made significant progress today. A short-term solution to connect the company to the national grid has been outlined, and I will personally oversee the implementation of the agreed steps,” he stated.
According to Adelabu, ALSCON has the potential to contribute substantially to Nigeria’s power generation capacity once reconnected. The plant’s existing infrastructure includes six turbines with an installed capacity of 540 megawatts, which can be expanded to 660 megawatts.
“With the completion of the 330kVA substation under construction by the Niger Delta Power Holding Company and transmission lines linking Ikot Ekpene to Ikot Abasi, the company will soon be able to evacuate power to the national grid,” he explained.
Adelabu expressed optimism that within 90 days, the short-term objectives of the power reconnection plan would be realized, paving the way for the plant’s gradual return to full operation.
He noted that the facility has the capacity to employ about 3,000 people directly and indirectly, while also supplying critical materials to local industries, significantly boosting Nigeria’s GDP and foreign reserves.
On gas supply challenges, the minister confirmed that ALSCON already has an existing gas pipeline but has not received gas for over a decade. He attributed the delay to pricing issues, emphasizing that the problem could be quickly resolved through commercial negotiation. “The gas issue is primarily about pricing. Once the company and gas suppliers agree on a viable commercial rate, supply will resume immediately. The infrastructure is already in place, and nearby facilities like Ibom Power Company are currently being supplied,” Adelabu said.
He assured that the Federal Government would continue to work closely with all stakeholders to ensure the successful revitalization of ALSCON, describing the project as vital to Nigeria’s industrial future and economic diversification agenda.
