Connect with us

Markets

Fashola Assures Sector Operators, Stakeholders of Improved Power, Gas Supply in 2017

Published

on

The Minister of Power, Works and Housing, Babatunde Fashola
  • Fashola Assures Sector Operators, Stakeholders of Improved Power, Gas Supply in 2017

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, has asked stakeholders in the Power Sector to look forward to the implementation of policies that would improve gas supply and liquidity as well as the completion of several power projects by the Federal Government in 2017.

Fashola, while making his Opening Address as Guest Speaker at the January edition of the Nextier Power Dialogue held at the Thought Pyramid Art Centre, said the Ministry of Power, Works and Housing along with other agencies of the Federal Government, like Ministry of Finance and the World Bank, had put together a policy framework that would help establish stronger and better institutional framework needed to tackle the challenges in the Power Sector.

According to the Minister, such policies would help realise a deepening of metering, sanctions for energy theft and better contract performance from Operators in the Power Sector as well as help achieve the financial strengthening of the Nigerian Bulk Energy Trading PLC (NBET).

He explained that he could not discuss the policies yet in details at the event because they were in the process of being presented for consideration and approval by the Federal Executive Council, but however, assured that when implemented, they would take the nation to more gas and assure payment to gas suppliers and generation companies which was the way forward.

He told his audience, “Clearly these policies constitute the way forward and ensures that everybody in the system gets paid. If we have that, at least, we can be sure that those who are supplying gas will not be shutting down because their creditors are pulling them. Then we go to the other side that are angry to see what we can do because gas problem is exacerbated on both sides”.

While explaining the current decreased power supply and outages across the country, he blamed the sabotage of gas pipelines by “some of our angry brothers”, adding that because of the debt owed gas companies by the DisCos, the companies also withheld supply of gas.

The Minister, who noted that there had been some outages across the country in the last 24 hours, however, assured Nigerians that himself, the Permanent Secretary and other officials of the Ministry were trying to see what they could do to address the situation.

Emphasising the need to increase liquidity in the sector, Fashola explained that as a result of the frequent power outages due to the sabotage of power assets, the operators along the power chain were being owed as distribution companies could not pay generating companies who equally could not pay gas suppliers who, in turn, could not pay their bankers.

The Minister pointed out that the debts had been accumulating since 2015 leading to gas companies currently shutting their tanks and forcing power again down to 2,000MW.

In line with increasing liquidity in the sector, Fashola also said Government intended to quickly complete the audit of its Ministries, Departments and Agencies (MDAs) to enable it pay proven debts owed the Operators in the sector adding that the payment had been delayed as a result of lack of authentic debt figures.

The Minister further explained, “You have heard that Federal Government is owing and all that; but you know, we don’t have the authentic figures and until we have that I cannot go and tell President Buhari that we want to pay ‘about…’. He will say we are not serious. So we expect to see the completion of that so that we can pay what is proven debt”.

According to him, Government also intended to see to the financial strengthening of the Nigerian Energy Bulk Trading (NBET), the bulk trader who stands as the interim partner to ensure that everybody that was doing their part in the system was paid, adding that once that was achieved Government would then insist on better contract performance and sanctions for non-compliance.

On calls for the cancellation of the Privatisation contract in the Power Sector, he reiterated his averseness to the call arguing that the country would by such action be sending negative signals to foreign investors that she had no respect for agreements.

Fashola pointed out that the action would only take the nation backward, adding that the programme was just three years old and needed time to mature, as, “We should think on what to do to make it work better instead of cancelling it”.

On what to expect in the New Year in terms of projects aimed at increasing power supply, he listed the Kudenda Transmission Project in Kaduna, which he said would be completed shortly as well as other power assets in Lagos, Sokoto and many more across the country.

According to him, “There are many power projects that will come on stream this year like the Gurara hydro power that we should begin to benefit from it by the end of this quarter because the power plant has been completed remaining just to transmit to Kudenda in Kaduna. Katsina Wind Mill will also be completed this year; the equipment for the completion have left Europe for Nigeria. Kaduna’s 215MW will also come on stream this year, and few others”.

Expected this year also in the power sector, the Minister continued, was better governance and regulation in stronger institutional frameworks as the Nigerian Energy Regulatory Commission (NERC), the regulators in the Sector, was being strengthened to do its work better and more efficiently.

Fashola declared, “They (the NERC Chairman and Commissioners) are the ones doing some of the things you have asked me to come and do; loss reduction, more sanctions for energy theft, more metering and more audit of DisCos to see what their books looked like would be expected this year as well.

“In the last one year that we have been in office, we have got to an all-time high of 5074MW. Nigeria has never reached there before. But immediately we got that, do you know what happened? They started breaking the gas pipelines one by one. We had 14 attacks in about two months.

“We need to get power from wherever we can. So, we said the first step is Incremental Power wherever we could get it; as long as it is legitimate, it is safe, it is environmentally compliant, we would put it on. But some of our brothers are angry; and I continue to tell them anger is not a strategy”, he said adding, however, “I know they will not be angry forever”.

He appealed for peace and understanding among the “angry brothers”, appealed to their relations and friends to persuade them to embrace peace adding, “While they are angry, they are punishing us, they are punishing themselves, they are punishing everybody”.

“You hear us announcing that we commissioned one transmission project or the other, you see me going round for these commissioning; that is the Grid evolving. Today, at its most frugal, it would support 6,500MW; pushed to its limit it would carry 7,200MW. So it is not true when you hear that the grid capacity is not more than 5,000MW. It is growing every day and more projects are coming up. We have completed some and more are still coming up. So that is where we are.

“Now it means that notionally, if we had those 3,000MW plus 4,000MW we were already at 7,000MW. But we would not have it because some of our family members are angry because of the problems, power came down to about 2,000MW and once the power goes below 3,000MW, the Grid would begin to react”, he said.

The Minister decried the lack of accurate demographic data in the country, which according to him, had both resulted in improper planning and hampered the delivery of electricity in the country over the years adding that it was important to know the accurate population of the country in order to know how much power to provide, and the number of consumers to be supplied electricity.

On rural electrification, Fashola revealed that the existing contracts for 2000 constituency electricity projects under the Rural Electrification Agency (REA) would soon be completed, adding that the government would be looking at expanding the generation, transmission and distribution aspects within the electricity value chain by encouraging more technical partners and other investors to come into the power sector and explore other energy resources in more secured environments across the country.

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.

Continue Reading
Comments

Crude Oil

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

Published

on

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.

Continue Reading

Crude Oil

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

Published

on

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.

Continue Reading

Energy

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

Published

on

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.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending