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‘Power Grid Has Collapsed 14 Times This Year’

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electricity
  • ‘Power Grid Has Collapsed 14 Times This Year’

The country’s electricity grid has already collapsed 14 times since the beginning of this year, according to documents obtained from the Transmission Company of Nigeria.

Findings showed that power generation remained unstable in the second quarter of the year, rising above 4,000 megawatts and crashing to around 2,000MW on different occasions.

The grid collapsed four times in the second quarter of the year, as against 10 times in the preceding quarter.

Industry documents obtained by our correspondent on Friday in Abuja showed that the highest rate of system collapse was recorded in January, as the grid crashed six times in the first month of 2017.

While the grid recorded 10 collapses in the first quarter of the year, the quantum of spinning reserve aimed at forestalling such occurrence was low during the period.

Spinning reserve is the generation capacity that is online but unloaded and can respond within 10 minutes to compensate for generation or transmission failure.

In January, the grid recorded a peak generation of 4,160.4MW, but witnessed six collapses, as it crashed to 10MW, 108MW, 49.2MW, 112.2MW, 147.2MW and 182.1MW on the 15th, 16th, 18th, 25th, 27th and 28th, respectively.

It collapsed three times in February and recorded a peak generation of 4,777.5MW, which currently stands as the highest quantum of electricity generation recorded in the country this year.

Grid collapses were recorded on February 1, 4 and 22, as it crashed to 143MW, 25MW and 320.5MW, respectively.

Only one collapse was recorded in March, bringing the total number of grid collapse in the first quarter to 10.

Officials at the ministries of Petroleum Resources and Power, Works and Housing attributed the reduction in grid collapse in February and March to the increase in the supply of gas to fire about 80 per cent of power generation plants across the country.

They told our correspondent that discussions between the Federal Government and militants in the Niger Delta region paid off, adding that this led to a significant drop in the spate at which pipelines were being vandalised.

The documents further showed that while the months of May and June witnessed one system collapse each, the situation occurred twice in April.

The power grid collapsed from 3,069.5MW to 108.7MW on April 9, and moved up marginally to 240MW the next day, while on April 26, it crashed to 113.6MW, down from the 3,222.5MW that was recorded the preceding day.

The system collapses in April were due to frequency constraints on the grid.

However, after about six weeks without recording a collapse, the grid eventually crashed on Tuesday, dropping from a peak of 4,141.5MW to 78.4MW following a sharp decline in frequency from 50.28 hertz to 47.00Hz.

It was learnt that the recent collapse was caused by the tripping and non-functionality of some electricity lines, a development that prompted the decline in system frequency.

Figures from the sector showed that the most recent system collapse before Tuesday’s incident occurred on May 8, 2017, when power generation crashed to 188.1MW from a peak of 4,196.1MW.

Aside the 188.1MW, the least quantum of electricity generated in May was 2,316MW, while the highest for the month was 4,553.9MW.

However, in June, power producers generated 4,451MW as the highest for the month, while the least, aside the crash to 78.4MW, was 1,996.6MW.

In its report on the most recent grid collapse, the National Control Centre of the Transmission Company of Nigeria, said, “System collapse occurred at 17:40hrs on June 27, 2017. System frequency declined sharply from 50.28Hz to 47.00Hz and this was followed by a collapse. The Benin/Omotosho 330kV line (cct B5M) CBs tripped at both ends. Also, the Omotosho/Ikeja West 330kV line (cct M5W) has been out of service on maintenance work.”

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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Computer Village Traders Demand Refunds as Lagos State Cancels Katangowa Project

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Traders at the renowned Computer Village in Lagos find themselves in a state of uncertainty following the abrupt termination of the multibillion-naira Katangowa project by the Lagos State Government.

The project, which was aimed at relocating the bustling tech market from its current site in Ikeja to the Agbado/Oke-Odo area of the state, has left traders in a state of limbo.

Despite the cancellation of the project reportedly occurring two years ago, traders claim they were not informed by either the government or the developers, Bridgeways Limited.

This lack of communication has left them in a precarious position, particularly concerning the substantial upfront payments made by some traders to the developers.

Chairman of the Computer Village Market Board, Chief Adebowale Soyebo, expressed dismay at the lack of communication from the authorities regarding the project’s termination.

He explained that neither the government nor the contractors had officially informed them of the decision, leaving traders in the dark about the fate of their investments.

Traders who had made payments to Bridgeways Limited now seek clarity on the refund process. The absence of official communication has compounded their concerns, with many uncertain about the fate of their investments.

While acknowledging the payments made by traders, Lagos State Governor’s Adviser on e-GIS and Urban Development, Dr. Olajide Babatunde, assured that the government would facilitate refunds.

He, however, said there is a need for proper identification and verification to ensure that affected traders receive their refunds accordingly.

The termination of the Katangowa project has reignited debates about the relocation of Computer Village.

Traders assert that the issue of relocation should not be raised until the new site is at least 70% completed, as per their agreement with the government.

The cancellation of the Katangowa project underscores the challenges associated with large-scale urban development projects and the importance of transparent communication between stakeholders to avoid such situations in the future.

As traders await further directives from the government, they remain hopeful for a resolution that safeguards their interests and ensures the continuity of one of Nigeria’s most prominent tech markets.

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Government Begins Disbursement of N200bn Support Fund to Manufacturers and Businesses

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The Ministry of Industry, Trade and Investment has initiated the disbursement of the long-awaited N200 billion Presidential Conditional Grant Scheme.

This is the beginning of a vital phase in the government’s strategy to provide financial assistance to manufacturers and businesses across Nigeria.

The scheme, which is being administered through the Bank of Industry (BOI), has been divided into three categories of funding, totaling N200 billion.

The disbursement process comes after an exhaustive selection process and verification of applicants to ensure transparency and accountability in the allocation of funds.

Doris Aniete, spokesperson for the Ministry of Industry, Trade and Investment, announced the progress in a statement posted on the trade minister’s official X (formerly Twitter) handle.

Aniete highlighted that verified beneficiaries have already started receiving their grants, signaling the beginning of the phased disbursement strategy.

“We are pleased to inform you that the disbursement process for the Presidential Conditional Grant Programme has officially commenced. Some beneficiaries have already received their grants, marking the beginning of our phased disbursement strategy,” stated Aniete.

She further disclosed that by Friday, April 19, a substantial number of verified applicants are set to receive significant disbursements.

However, Aniete emphasized that disbursements are ongoing, and not all applicants will receive their grants immediately, assuring that all verified applicants will eventually receive their grants in subsequent phases.

The initiation of the disbursement process comes after more than eight months since President Bola Tinubu announced the grant for manufacturers and small businesses.

The scheme aims to mitigate the adverse effects of recent economic reforms and foster sustainable economic growth by empowering businesses with financial support.

President Tinubu had outlined the government’s commitment to strengthening the manufacturing sector and creating job opportunities through the disbursement of N200 billion over a specified period.

The funding is intended to provide credit to 75 enterprises, each able to access up to N1 billion at a low-interest rate of 9% per annum.

However, the implementation of the programme has faced challenges, including delays and criticisms regarding the registration process.

Femi Egbesola, President of the Association of Small Business Owners, expressed concerns over the slow pace of data collation and suggested that genuine businesses were being discouraged from accessing the loans.

Despite the hurdles, the commencement of the disbursement process signifies a significant step forward in the government’s efforts to provide vital support to manufacturers and businesses, potentially revitalizing economic activities and driving growth across various sectors.

As beneficiaries begin to receive their grants, the impact of this initiative on the nation’s economic landscape is eagerly anticipated.

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MicroStrategy Rally Crushes Short Sellers, Wiping Out $1.92 Billion

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Short sellers betting against MicroStrategy found themselves facing significant losses as the company’s rally wiped out $1.92 billion since March.

This development comes amidst a rally that has seen MicroStrategy’s stock outperform bitcoin, causing a considerable hit to those who had taken a bearish stance on the tech firm.

According to data from S3 Partners, short sellers have been on the losing end since March, as MicroStrategy’s stock surged, highlighting the impact of the rally on those betting against the company’s success.

This loss underscores the challenges faced by short sellers in a market where certain stocks experience rapid and unexpected price increases.

The rally in MicroStrategy’s stock is attributed to several factors, including the approval of several spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) earlier in the year.

This move by the SEC brought bitcoin, a once-nascent asset class, closer to the mainstream and fueled investor interest in companies like MicroStrategy, known for their significant holdings of the cryptocurrency.

MicroStrategy, which held nearly 190,000 bitcoin on its balance sheet as of the end of 2023, has indicated its intention to continue increasing its exposure to the digital currency.

The company’s decision to sell convertible debt to raise money for additional bitcoin purchases further bolstered investor confidence and contributed to the stock’s rally.

Analysts at BTIG noted that the premium for MicroStrategy’s stock reflects investors’ desire to gain exposure to bitcoin indirectly, especially those who may not have the means to invest directly in the cryptocurrency or ETFs.

The company’s ability to raise capital for bitcoin purchases is seen as a positive sign for shareholders, adding to the optimism surrounding its stock.

However, despite the recent rally and optimism surrounding MicroStrategy, the crypto industry as a whole continues to be heavily shorted.

Short interest in nine of the most-watched companies in the crypto space remains high, standing at 16.73% of the total number of outstanding shares, more than three times the average in the United States.

Moreover, concerns persist regarding the SEC’s stance on cryptocurrencies, with some experts suggesting that the approval of spot bitcoin ETFs may not necessarily indicate a broader acceptance of other similar products, such as spot ethereum ETFs.

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