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Ibadan Disco Commits N5.5bn on Network Expansion in 12 Months

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Kano
  • Ibadan Disco Commits N5.5bn on Network Expansion in 12 Months

The Ibadan Electricity Distribution Company (IBEDC) has committed to invest N5.5 billion in the expansion of its network and supply of meters to all categories of customers between January and December 2016.

Speaking during a joint press conference to display a total of 210 11KVA panels; 33KV Circuit breakers and other equipment procured at the cost of billions of Naira to develop its network, the Managing Director of the company, Mr. John Donnachie, and his deputy, Mr. John Ayodele revealed that the company had spent a total of N4.5 billion on metering and N1 billion on equipment for network development.

On his part, Donnachie said the new equipment would be used for some of the 122 substations within its franchise coverage area.

“We are focused on metering and we will ensure that we develop proper metering programmes for our customers so that we can get out of estimated billing, and that is going to take some time. We have spent about N4.5bn on metering so far this year, and we will continue to drive this progress. The other key element is the network development, and what we are here to do today is to share what we are trying to do in this regard. You are going to see investment of over N1bn that just arrived in order to enhance customer service through network stabilisation and network development,” Donnachie said.

Speaking at the press conference held at the Eleyele 2x15MVA 33/11KV injection substation, Ayodele said the IBEDC had put in place a new billing system to improve customer service.

He said the cost of running the business had increased dramatically, adding, “Our bill last month from the generator was N5.7 billion, compared to N3 billion in May. We could only charge N6 billion to the customers. So, if we collected 100 per cent of everything that we billed, we will not be able to pay salaries with the money left over,” Ayodele said.

According to him, the company loses at least N1.8 billion monthly or 30 per cent of N6 billion due to refusal of customers to pay their bills.

“We are begging our consumers to please pay us, if the consumers of electricity don’t pay their electric bills, then there won’t be money to fund the project because we can say that a minimum of 46 per cent of our customers are not paying. One way or the other they get electricity and this is not fair to the industry,” he explained.

“Fundamentally, the liquidity issues in the business are well known. We are short at list a trillion naira in the industry, we currently have issues around last year and the exchange issues are currently affecting us and we have no way of currently collecting the money that people owe us,” he added.

“The exchange rate going close to ₦450 is a major problem to our industry and how to solve this issue is still yet unknown to us at the moment, and we currently owe N45 billion to supply and that is why we don’t have money.

Any of our charges has to be at the exchange rate of what we have at the moment, and people keep saying we are charging high. We are committed this year to deliver our best and more will be spent this year,” Ayodele said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns

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Crude oil

Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

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Crude Oil

Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm

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Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

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Energy

NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade

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Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

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