Major stakeholders in the hospitality business in Delta State have raised the alarm that the persisting epileptic power supply has been killing the industry in the state, particularly in Uvwie, Warri, Sapele, Ughelli and Udu areas.
They blamed the ugly incident mainly on what they tagged “power racketeering” among some unnamed officials of the Transmission Company of Nigeria and Benin Electricity Distribution Company.
The stakeholders alleged that “some officials of TCN and BEDC have been selling and redistributing power (electricity) meant for business areas in the state to residential areas to highest bidders.”
Consequently, they called on the Delta State government “to wade in urgently by calling managements of TCN and BEDC Plc to order by ensuring that electricity is provided for the people of the state, especially business areas.”
In the alternative, they said “government should take proactive steps to provide alternative power supply as witnessed recently in Aba, Abia State.”
Speaking with journalists in Warri, Delta State on Tuesday, on behalf of the stakeholders, the Chief Executive Officer and chairman of Lascurt International Hotel in Uvwie, Mr. Austin Wareyai, lamented that “electricity racketeering by officials of TCN is crumbling and killing our businesses, owing to epileptic power supply and the high cost of diesel.”
He noted with concern that “the 33 KVA line, which is a dedicated power line for businesses such as, hotels and industries usually supplies electricity for at least 18 hours, but has nosedived to six hours or even less daily.”
Wareyai stated that “in the last four months, the electricity supply around Effurun, Uvwie, Warri, Udu and Sapele cities has significantly dropped and in some cases there is no power for weeks as hotels, manufacturing companies and other businesses now rely on diesel and fuel to power their businesses.”
He added, “Many hotels are facing threats of collapsing because all of their revenues go into energy (diesel) to power their hotels thereby making it difficult to pay workers’ salaries.”
He averred that “despite the absence of electricity supply, hoteliers are also battling exorbitant billings by the distribution company.”
Wareyai spoke further, “These are very trying times for hospitality industry players and investors because of the power situation in Effurun, other parts Uvwie, Warri, Udu and other major cities, including Sapele and Ughelli. The little money we are generating returns to generating power to keep the hotel alive.
“As I speak, many hotels are on the verge of collapsing and some are owing workers over two months salaries. I am spending over N1.5 million to buy diesel daily. Nobody makes that kind of money. We have resorted to borrowing to keep our hotels running. How long can we continue this? This is bad. Businesses don’t survive in this kind of harsh environment.
“Government needs to urgently act because the hospitality industry is the highest employer of labour in Delta State. If we can’t pay salaries, it’s a great threat to security in the state because those who are engaged by hoteliers are resigning.”
