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Nigeria’s Unused Electricity Volume Projected to Rise by 2,130MW

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Power - Investors King
  • Nigeria’s Unused Electricity Volume Projected to Rise by 2,130MW

The total volume of unused electricity from Nigeria’s national grid will rise by 2,130 megawatts (MW), to add to an existing 2000MW idle volumes that power distribution companies (Discos) are unable to take to homes and offices in the country, the Minister of Power, Works and Housing, Mr. Babatunde Fashola has disclosed.

Fashola, who stated this at a media briefing in Abuja, disclosed that between now and 2019, the country’s unused electricity volume will increase to 4,130MW, an equivalent of what the 11 Discos are currently supplied to distribute across the country.

He explained the additional volumes would come from 455MW Azura-Edo plant; 215MW Kaduna plant; 240MW Afam III Fast Power; 40MW Kashimbilla hydro plant in 2018, while in 2019, the 700MW Zungeru hydro plant; and 480MW Okpai II power plant would come on stream to complete the equation.

He also stated that the capacity of the country’s transmission network had grown between 2015 and 2017 at an average of 1,062MW.

“Transmission has also increased from 5,000MW approximately in 2015 to 7,124MW approximately in December 2017 averaging 1,062MW per annum increase in transmission capacity.

“TCN currently has about 90 transmission projects in various stages of construction and many are to be completed this year,” Fashola said.

According to him, “So, we can transport what the Gencos generate and there is a transmission expansion plan 2018 to 2028 which government is committed to implement.”

He explained that the country’s distribution capacity increased from approximately 2,690MW in 2015 to 5,222MW in 2018, averaging an increase of 844MW per annum.

Fashola, said this was possible because the Discos have also done some work, adding that from 2016 when the Discos complained about lack of enough power to distribute, the volume of power available to them has increased and they are now unable to take them to consumption points in the country, leaving the sector with an unused capacity of 2000MW.

Also, with regards to revenue collection by the Discos, the minister asked the Nigerian Bulk Electricity Trading Plc (NBET), to work out measures with the Bureau of Public Enterprises (BPE) on how to get the Discos to improve their monthly collections.

As regards equity investments in the Discos, the minister explained the government has committed to invest N76 billion for the procurement and installation of distribution equipment to enable the Discos evacuate the existing 2000MW unused electricity volumes to consumers, as well as N37 billion in the Meter Asset Providers (MAPs) regulation of the Nigerian Electricity Regulatory Commission (NERC) to enable licensed meter investors supply meters to Discos for onward deployment to their customers.

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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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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