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Power Generation Returns to 4,000MW as Hydro Plants Recover

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Power - Investors King
  • Power Generation Returns to 4,000MW as Hydro Plants Recover

The nation’s power generation has returned to the 4,000 megawatts mark following the recovery in the output of hydropower plants and a few thermal plants.

The nation generates most of its electricity from gas-fired power plants, while output from hydropower plants makes up about 30 per cent of total generation.

Generation from Kainji, Jebba and Shiroro hydro plants fell to 173MW, 210MW and 205MW, respectively as of 6am on November 25 from 403MW, 340MW and 295 on November 23.

The total generation, therefore, dropped from 4,077.8MW on November 23 to 3,662.6MW on November 25, according to the latest data obtained from the Federal Ministry of Power, Works and Housing on Thursday.

But the generation rose to 4,016.1MW on November 28 from the 3,828.2MW recorded the previous day, buoyed largely by the increase in the output from Kainji, Jebba and Shiroro hydro plants, which generated 382MW, 326MW and 199MW, respectively that day.

Electricity generation from Egbin, the nation’s biggest power station, stood at 513MW on November 28, compared to the 1,085MW achieved on March 15, 2016. The plant has an installed capacity of 1,320MW, consisting of six units of 220MW each.

Six power plants, including Sapele I and Alaoji II, were not generating any megawatt as of 6am on November 28.

Other idle plants were Gbarain II, AES, ASCO and Rivers IPP, according to the ministry.

Sapele’s ST1 unit was said to have tripped on low drum level; the ST2 out on maintenance; the ST4 and 5 awaiting major overhaul; and the ST6 tripped on gas control valve not following reference point.

Units GT1 and 2 of Alaoji tripped due to low gas pressure; the GT3 was shut down due to generator air inlet filter trouble, and the GT4 out on maintenance.

Gbarain’s GT2 unit was out due to heater problem; the AES, out of production since November 27, 2014; ASCO’s GT1 was shut down due to leakage in the furnace, and the Rivers IPP, out of production since November 16, 2016.

The nation’s power grid has suffered 24 collapses, 15 of which are total and nine, partial, so far this year.

Unutilised generation capacity stood at 2,281MW due to gas constraint (810MW), line constraints (234MW), frequency management occasioned by the electricity generation companies’ load demand (1,287MW) and water management (150MW).

In October, the Managing Director/Chief Executive Officer, Niger Delta Power Holding Company, Mr. Chiedu Ugbo, said the power plants built under the National Integrated Power Project scheme had suffered from load rejection by the Discos.

Meanwhile, the Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors, Mr. Sunday Oduntan, said last month that the capacity of the distribution network had increased to 6,200MW.

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

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

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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.

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Economy

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

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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.

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Economy

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

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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.

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