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Government to Commission More Power Projects This Year

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electricity
  • Government to Commission More Power Projects This Year

The Minister of Power, Works and Housing, Babatunde Fashola has unveiled plans to commission some electricity projects this year.

Fashola, who made this revelation in Lagos during the 11th Monthly Stakeholders meeting, said some of the projects to be commissioned in the course of the year include the completion of the Kaduna 215 megawatt power plant; the Gurara project and the Gardin Kowa plant. Others are switching of the Gudenda substation, as well as the conclusion of the Katsina wind and the Abuja solar farms.

The second phase of the Abuja solar project, he noted would run-up from 800watts to 1.2 megawatt and possibility of partnerships in the area of development of hydro dams.

He also disclosed that there are 14 projects for transmission in Lagos State and Ikeja West, which is the largest in terms of transformer capacity, is currently undergoing expansion to respond to the growing needs of population. “This tells you clearly that the transmission system is not static, it is dynamic and expanding.”

According to him, the evacuation of power at the Ikot Ekpene switching station is what has kept the grid to almost 4,000 megawatts. “We still have 3,000 megawatt out from the damage of the excado and vocado, so if that comes back, we are almost at 7,000 megawatts, so the target is incremental power.”

Fashola, who acknowledged the challenges operators are facing, expressed worries over consumer service as the focus of the power sector, saying “it remains the top burner issue because our staff must understand that without the customers, they do not have jobs and if they lack the skill and patients to serve, then they should leave.”

“Various distribution areas should improve the quality of service and recognize the customer as king, if we cannot solve the problem, we owe them some explanation. The issues around metering and billing should be addressed with trust,” he added.

On behalf of the operator, the Chief Executive Officer, Ikeja Electric, Mr Anthony Youdeiwoe stated that though the expectations of the Nigerian public have not been fully met, operators are working hard in the midst of the volatility of the operating grounds to meet up.

“We are not just in the business of providing power; we are in the business of providing hope, and so on behalf of the operators, we are committed to attain success.”

Meanwhile on the problem of liquidity, the power minister noted that government was working with both local and international development partners to ascertain the role they can play in the market. “We are trying to see what we can do together in order to bring the liquidity issues under some control and from there eventually solve it.”

“As pioneers you would carry some burdens, but am optimistic that together we can win,” he added.

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 Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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