Connect with us

Economy

Nigeria Has Potential to Produce 93, 950MW – UN

Published

on

electricity
  • Nigeria Has Potential to Produce 93, 950MW – UN

The UN Economic Commission for Africa on Friday urged the Federal Government to explore renewable energy by utilising the country’s untapped energy sources, estimated at 93,950MW.

Mr Bakary Dosso, the ECA Chief Sub-Regional officer, Data Centre, made the appeal at the launch of the ECA Country Profile 2016 Report for Nigeria in Abuja.

Dosso said the ECA report showed that Nigeria was blessed with abundant untapped energy resources of about 93,950 Megawatts.

He added that “the country is home to enormous energy resources such as petroleum, natural gas, coal, nuclear power and tar sands.

“Other resources include solar, wind, biomass and hydropower.

“However, development and exploitation of energy sources have been skewed in favour of hydropower, petroleum and natural gas.

“Nigeria has an untapped potential to produce 93,950MW from carbon-emission-free energy sources, which include small and large hydroelectric power plants, 68 percent and nuclear power, 21 percent.

“Also, Nigeria has an untapped potential of seven percent solar and photovoltaic and onshore wind, two per cent,” he said.

Dosso said in spite of such potential, it was sad that half of the population depended on wood, charcoal, manure and crop residues for energy.

He added that Nigeria had a total installed electricity capacity of 12,522MW and an available current capacity of only about 4,500MW.

He, therefore, urged the Federal Government to seize the opportunities to improve the power situation in the country.

He explained that the country’s energy challenges, especially electricity generation, transmission and distribution were impacting negatively on the economy.

“The lack of reliable access to electricity remains a major obstacle to creating a much stronger and more diverse economy and improving the living standards of the population.

“It is, therefore, crucial to scale up both private and public investment in the electricity sector.

“For that to happen, the authorities must attract private investment by establishing a clear regulatory framework and aligning their policies so that the infrastructure for generating and transporting electricity can be developed efficiently,” he said.

The Director, ECA Sub-Regional Office for West Africa, Prof. Dimitri Sanya, said that accelerating economic transformation in Nigeria required boosting competitiveness and strengthening local production capacities.

“To this end, Nigeria should reinforce its effort to establish a market-oriented policy aimed at promoting a secure, competitive and reliable energy supply and policies that encourage equipment and technology acquisition.

“A clear regulatory framework needs to be established to attract private investment, to keep investing in grid expansion while ensuring routine maintenance.

“The country should further invest in a diversified mix of energy sources through incentive policies in favour of non-fossil energy sources including solar, wind and hydropower.”

Meanwhile, the Minister of Budget and National Planning, Sen. Udoma Udo Udoma, said Nigeria recognised the impact stable power would have on the economy.

Udoma, represented by the Ministry’s Director of Economic Growth, Mr Kayode Obasa, said in recognition of this, the Economic Recovery and Growth programme contained critical power projects.

“If you look at the 2017 budget as presented by the Nigerian government, one key area that has been stressed is the power sector. About 50 percent of the capital expenditure this year is devoted to the power sector.

“We are aware that a lot still needs to be done in the power sector because once power is addressed, virtually all areas of the economy will be positively affected,” he said.

Udoma reiterated the government’s commitment to diversify its revenue stream away from oil, so as to have more revenue to address critical infrastructure problems.

He said the government was presently carrying out many reforms to improve ease of doing business in the country to attract necessary foreign direct investments in critical sectors of the economy, including power.

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

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

Published

on

Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

Continue Reading

Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

Published

on

Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

Continue Reading

Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

Published

on

Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending