Key people in the hotel business in Delta State are concerned about the ongoing irregular electricity supply causing issues for the industry in the state, especially in Uvwie, Warri, Sapele, Ughelli and Udu areas.
They attributed the problem mainly to what they called “power corruption” among certain officials of the Transmission Company of Nigeria and Benin Electricity Distribution Company.
They claimed that “some officials of TCN and BEDC have been selling and reassigning electricity meant for business areas in the state to residential areas to the highest bidders.”
As a result, they urged the Delta State government “to intervene promptly by instructing the managements of TCN and BEDC Plc to ensure that electricity is provided for the people of the state, particularly business areas.”
Alternatively, they suggested that “the government should take proactive measures to provide alternative electricity supply, similar to what happened recently in Aba, Abia State.”
Speaking with reporters in Warri, Delta State on Tuesday, representing the stakeholders, the Chief Executive Officer and chairman of Lascurt International Hotel in Uvwie, Mr. Austin Wareyai, expressed his sadness that “electricity corruption by officials of TCN is ruining our businesses, due to irregular electricity supply and the high cost of diesel.”
He expressed worry that “the 33 KVA line, which is a dedicated power line for businesses such as hotels and industries, usually provides electricity for at least 18 hours, but has dropped to six hours or even less daily.”
Wareyai explained that “in the last four months, the electricity supply around Effurun, Uvwie, Warri, Udu and Sapele cities has decreased significantly and in some cases, there is no power for weeks, causing hotels, manufacturing companies, and other businesses to rely on diesel and fuel to run their businesses.”
He added, “Many hotels are at risk of failing because all of their income goes into energy (diesel) to run their hotels, making it hard to pay workers’ salaries.”
He stated that “despite the absence of electricity supply, hotel owners are also dealing with extremely high bills from the distribution company.”
Wareyai elaborated, “These are very challenging times for hospitality industry players and investors due to the electricity situation in Effurun, other parts Uvwie, Warri, Udu, and other major cities, including Sapele and Ughelli. The little money we are earning goes back into generating power to keep the hotel operating.
“As I speak, many hotels are on the brink of failing and some are behind on workers’ salaries by over two months. I am spending over N1.5 million to buy diesel every day. Nobody earns that kind of money. We have resorted to borrowing to keep our hotels running. How long can we continue this? This is not good. Businesses cannot survive in this kind of tough environment.
“The government needs to act promptly because the hospitality industry is the largest employer of labor in Delta State. If we can’t pay salaries, it’s a big threat to security in the state because those who are employed by hoteliers are resigning.”
