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Electricity Generation Rises to 4,303MW

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Electricity - Investors King
  • Electricity Generation Rises to 4,303MW

Electricity generation yesterday rose to 4,232.6 Megawatts (MW), an appreciable improvement from the 3,500 MW recorded in the last two months, according to the daily electricity generation report from the Transmission Company of Nigeria (TCN).

The Federal Government’s efforts to fix the electricity crisis in Nigeria have not yielded significant result due to gas pipeline vandalism and many homes and businesses are still experiencing constant blackout.

According to the operational report from the TCN, this can be regarded as significant improvement; although still far below the country’s peak demand forecast of 19,100MW.

Also, analysis from the Nigerian Electricity Supply Industry (NESI) Statistics showed that the power sector lost an estimated N1.2 billion on March 20, due to gas constraints.
Specifically, the agency put power output loss to gas constraints at 2,105MW.

It stated: “The power sector is plagued with structural issues in all key areas – generation, gas supply, transmission and distribution. To name a few of these challenges, the operational capacity of the country’s power plants is less than a third of their installed capacity.

“Chronic vandalism has crippled oil and gas pipelines, creating gas shortages at power plants. Underinvestment in maintenance and infrastructure has constrained our transmission grid. Finally, high collection and commercial losses have impacted the financial viability of the privatised distribution companies.”

Despite the output improvement in, many customers under the Ikeja Electric Plc, complain that there is no corresponding increase in supply.

Responding to the irregular supply under its jurisdiction, Spokesperson for the company, Olusola Ayeni, attributed this to line damage, saying: “The current outage is due to the destruction of our Abule Tailor 33kv line, Ipaja 11kv line and Amikanle 11kv line by the heavy rain last night.

“The affected areas include Ikola, Amikanle, Command Road Ipaja, Olota, Ekoro Road, Abule Tailor and environs. Power supply to the affected areas will be restored shortly as maintenance teams are already effecting repairs.”

Dwelling on TCN’s efforts to boost power supply in Lagos, the Company General Manager, Public Affairs, Seun Olagunju, said power supply in Lagos and Ogun states is set to improve with the inauguration of some power equipment at the 330kV Transmission Substation in Ayobo, Lagos State.

She said: “The power transmission equipment to be installed include transformers, protective devices, metering circuits as well as state-of- the- art control panels, which will facilitate the wheeling of more reliable power to the distribution companies and the people.

“As a result of the volume of connections to be done, and the need to reduce attendant customer discomfort, the installation has been spread to take effect from March 6 to April 3rd, and only between 9am and 3pm daily.”

She assured that the installations are geared towards providing more quality power supply to the people.

Speaking on the state of electricity supply in the country, Senior Vice President, Centre for Values in Leadership (CVL), Rasheed Adegbenro, argued that Nigeria couldn’t be industrialised without regular electricity supply, and as such, cannot be competitive even in the next 20 years with the level of electricity supply in the country.

He said: “If you have television, refrigerator and air conditioner at home, you are consuming the energy of 100 people. There is no way we can run industrialisation on a per capita consumption of 13 watts.
“Also, the telecommunication companies are struggling with providing self-generated power for their transmission networks. When they realised there was no power after acquiring the assets, they quickly mobilised funds from international financiers to remain in business.

“Discos and Gencos are challenged because the money is not there. Those who took money from the banks cannot pay back and the banks are not ready to release more funds for the electricity firms.”

Corroborating Adengbenro, President, Nigeria -Vietnam Chamber of Commerce and Industry, Oye Akinsemoyin, believes that government’s solutions to the electricity challenges have not been effective.

“I think government needs a new cabinet to manage the challenges of electricity in Nigeria. My chamber spends so much on self-generated power despite paying so much on estimated bills.”

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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Economy

Minister of Power Pledges 6,000 Megawatts Electricity Generation in Six Months

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Adebayo Adelabu has made a bold pledge to ramp up electricity generation to 6,000 megawatts (MW) within the next six months.

This announcement comes amidst ongoing efforts to tackle the longstanding issue of inadequate power supply that has plagued the country for years.

During an appearance on Channel Television’s Politics Today program, Adelabu said the government is committed to resolving the issues hindering the power sector’s efficiency.

He expressed confidence in the administration’s ability to overcome the challenges and deliver tangible results to the Nigerian populace.

Currently, Nigeria generates and transmits over 4,000MW of electricity with distribution bottlenecks being identified as a major obstacle.

Adelabu assured that steps are being taken to address these distribution challenges and ensure that the generated power reaches consumers across the country effectively.

The minister highlighted that the government has been proactive in seeking the expertise of professionals and engaging stakeholders to identify the root causes of the power sector’s problems and devise appropriate solutions.

Adelabu acknowledged the existing gap between Nigeria’s installed capacity of 13,000MW and the actual generation output, attributing it to various factors that have impeded optimal performance.

Despite these challenges, he expressed optimism that the government’s initiatives would lead to a substantial increase in electricity generation, marking a significant milestone in Nigeria’s energy sector.

Addressing concerns about the recent decline in power generation due to low gas supply, Adelabu assured Nigerians that measures are being taken to rectify the situation.

He acknowledged the impact of power outages on citizens’ daily lives and reiterated the government’s commitment to providing stable electricity supply within the stipulated timeframe.

The Minister’s assurance of achieving 6,000MW of electricity generation in the next six months comes as a ray of hope for millions of Nigerians who have long endured the consequences of inadequate power supply.

With ongoing reforms and targeted interventions, there is optimism that Nigeria’s power sector will witness a transformative change, ushering in an era of improved access to electricity for all citizens.

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Nigeria’s Economic Woes to Drag Down Sub-Saharan Growth, World Bank Forecasts

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The World Bank’s latest report on the economic outlook for Western and Central Africa has highlighted Nigeria’s sluggish economic growth as a significant factor impeding the sub-region’s overall performance.

According to the report, while economic activities in the region are expected to increase, Nigeria’s lower-than-average growth trajectory will act as a hindrance to broader economic expansion.

The report indicates that economic activity in Western and Central Africa is set to rise from 3.2 percent in 2023 to 3.7 percent in 2024 and further accelerate to 4.2 percent in 2025–2026.

However, Nigeria’s growth, projected at 3.3 percent in 2024 and 3.6 percent in 2025–2026, falls below the sub-region’s average.

The World Bank underscores the importance of macroeconomic and fiscal reforms in Nigeria, which it anticipates will gradually yield results.

It expects the oil sector to stabilize with a recovery in production and slightly lower prices, contributing to a more stable macroeconomic environment.

Despite these measures, the report emphasizes the need for structural reforms to foster higher growth rates.

In contrast, economic activities in the West African Economic and Monetary Union are projected to increase significantly, with growth rates of 5.9 percent in 2024 and 6.2 percent in 2025.

Solid performances from countries like Benin, Côte d’Ivoire, Niger, and Senegal are cited as key drivers of growth in the region.

The report also highlights the importance of monetary policy adjustments and reforms in supporting economic growth.

For instance, a more accommodative monetary policy by the Central Bank of West African States is expected to bolster private consumption in Côte d’Ivoire.

Also, investments in sectors such as agriculture, manufacturing, and telecommunications are anticipated to increase due to improvements in the business environment.

However, Nigeria continues to grapple with multidimensional poverty as highlighted by the National Bureau of Statistics.

Over half of Nigeria’s population is considered multidimensionally poor, with rural areas disproportionately affected. The World Bank underscores the need for concerted efforts to address poverty and inequality in the country.

Sub-Saharan Africa as a whole faces challenges in deepening and lengthening economic growth. Despite recent progress, growth remains volatile, and poverty rates remain high.

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Fitch Downgrades China’s Outlook to Negative Amid Real Estate Slump

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Fitch Ratings has downgraded China’s economic outlook to negative, citing concerns over the country’s mounting debt and the ongoing slump in its real estate sector.

This decision casts a shadow over China’s economic recovery efforts and raises questions about the resilience of its financial system in the face of mounting challenges.

The downgrade comes at a critical juncture for China as the government grapples with the fallout from a prolonged downturn in the real estate market, which has long been a cornerstone of the country’s economic growth.

Fitch’s decision underscores the severity of the challenges facing China’s economy and the urgent need for policymakers to implement effective measures to address the underlying issues.

Amid growing uncertainty about the outlook for the world’s second-largest economy, Fitch warned that the Chinese government is likely to accumulate more debt as it seeks to stimulate economic growth and mitigate the impact of the real estate slowdown.

The agency’s negative outlook reflects concerns that China’s debt burden could continue to rise, posing risks to the stability of its financial system.

The real estate sector, which has been a key driver of China’s economic growth in recent decades, has been experiencing a pronounced slowdown in recent months.

This downturn has been exacerbated by government measures aimed at curbing speculative investment and addressing housing affordability concerns. As property prices continue to decline and housing sales stagnate, fears of a broader economic slowdown have intensified.

China’s government has sought to downplay concerns about the impact of the real estate slump on the broader economy, emphasizing its commitment to maintaining stability and pursuing sustainable growth.

However, Fitch’s downgrade suggests that the challenges facing China’s economy may be more significant than previously thought and require a more comprehensive and coordinated policy response.

The negative outlook from Fitch follows a similar move by Moody’s Investors Service in December, highlighting the growing consensus among rating agencies about the risks facing China’s economy.

While financial markets initially showed little reaction to Fitch’s announcement, analysts warn that the downgrade could weigh on market sentiment in the near term, especially as investors await key economic indicators due to be released in the coming weeks.

China’s public debt has surged in recent years, fueled by government stimulus measures aimed at supporting economic growth and offsetting the impact of the COVID-19 pandemic.

With public debt nearing 80% of gross domestic product (GDP) as of mid-last year, according to the Bank for International Settlements, concerns about the sustainability of China’s debt levels have been mounting.

Despite these challenges, China’s sovereign bond market remains relatively insulated from external pressures, with foreign ownership accounting for a small fraction of total holdings.

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