Onome Amuge

Axxela Integrated Power, part of Lagos-based Axxela Limited, has signed a power purchase agreement with Evans Industries, a leading producer of home and personal care goods, in a move that highlights how industrial players are seeking alternatives to the country’s unreliable electricity grid.

Under the deal, Axxela will supply Evans Industries with integrated gas-to-power solutions aimed at lowering energy costs, reducing downtime and improving operational efficiency. The company did not disclose the value or volume of supply under the agreement.

Olufisayo Duduyemi, managing director of Axxela Integrated Power, described the partnership as more than just a contractual relationship, casting it as a strategic collaboration designed to safeguard Evans’ competitiveness.

“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,” Duduyemi said at the signing ceremony in Lagos. 

Nigeria has installed electricity generation capacity of over 13,000 megawatts but rarely delivers more than 4,000MW to the grid, according to official figures. Years of underinvestment, gas supply disruptions and infrastructure bottlenecks have left businesses dependent on diesel or gas-fired generators, often at costs several times higher than grid tariffs.

For manufacturers such as Evans Industries, which produces soaps, detergents and personal care products for Nigeria’s mass market, securing reliable energy is a matter of survival in a sector already squeezed by high inflation, foreign exchange volatility and rising input costs.

Axxela, majority-owned by Helios Investment Partners and Mitsubishi Corporation, has positioned itself as a provider of decentralised energy solutions, with a focus on natural gas distribution and captive power generation. The company says the Evans deal underscores its role in bridging Nigeria’s energy gap through bespoke partnerships with industrial customers.

Duduyemi said the agreement also aligned with federal government ambitions to expand domestic use of natural gas, a resource in which Nigeria holds Africa’s largest proven reserves. 

“For us at Axxela, these challenges are opportunities to support the government’s efforts in harnessing the immense benefits of natural gas and gas-to-power solutions,” Duduyemi said.

For Evans Industries, the partnership is set to offer a hedge against one of the most persistent operational risks in Nigerian manufacturing: energy insecurity. By cutting energy costs and ensuring greater reliability, the company aims to reinforce its competitive edge in a fast-moving consumer goods market dominated by both multinational and local players.

“Energy reliability is not just an operational concern; it is a strategic driver of competitiveness and resilience,” Duduyemi said.