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Load Shedding Threatens Eight NIPP Plants

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  • Load Shedding Threatens Eight NIPP Plants

The inability of electricity distribution companies to absorb the output of power generation firms is threatening the operation of the Gencos, investigation has shown.

Worse hit among the power generation companies is the Niger Delta Power Holding Company, which has a total of 10 power stations across the country.

The NDPHC, which belongs to the three tiers of the government, has a generation capacity of about 5,000 Megawatts from 10 National Integrated Power Project stations.

Given the inability and refusal of distribution companies to lap up the full capacity of power available from the generation firms, the National Control Centre in Osogbo is responsible for allocating to electricity generation firms the quantity of power each should produce.

Investigation showed that on monthly basis, the NDPHC had been producing about 400MW or 10 per cent of what it could produce from eight of its 10 operational power plants.

Because the power companies are paid based on what they are able to generate on monthly basis, the firms are anxious to produce as much as they can but it is the NCC Osogbo that determines who should produce what.

Our correspondent learnt that while private operators were allocated as much as 85 per cent of their available capacities, the NDPHC plants were being allowed to produce just about 10 per cent of their available capacities as the company was said to be used merely for balancing load.

Piqued by this development, authorities at the NDPHC had written some letters to the NCC, seeking to redress the situation.

In one of the letters sighted by our correspondent in Abuja on Thursday, the Managing Director, NDPHC, Mr. Chiedu Ugbo, stated that the company would not be able to meet its obligations if it continued to produce much below capacity.

Some of the obligations include payment for gas, maintaining the human resources and maintenance of plants. It was learnt that gas plants operated by the NDPHC would accrue huge maintenance costs if they were consistently subjected to low capacity utilisation.

In the letter, Ugbo stated, “We wish to inform you that the Federal Government has signed the World Bank Partial Risk Guarantee to securitise the Gas Sales Agreement with Accugas Limited for the supply to our subsidiary Calabar Generation Company Limited.

“Under the GSA, the power station is obligated to off-take a minimum quantity of gas equivalent to 80 per cent of full load on a take-or-pay basis. Our serious concern is that the load dispatched by the system operator from the power plant has remained consistently below 25 per cent of its installed generation capacity.

“The implication of this is that the power plant is constrained to consume only a fraction of its obligatory take-or-pay gas quantity and is consequently unable to earn enough revenue to cover its gas bill obligation under the GSA.

“This situation is certainly unsustainable and may soon result in a huge embarrassment to the government if the PRG is called off.”

When the view of the NCC was sought on the criteria being used to allocate load to the generating firms, the General Manager, Mr. Kingsley Osuoha, referred our correspondent to the Executive Director, Technical, NDPHC, Mr. Oyedele Ife.

A Presidency source, who spoke to our correspondent on the condition of anonymity, feared that the allocation of low load to the NDPHC might be a subterranean move to sell the NIPP plants at giveaway prices.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

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