Connect with us


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



  • 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.

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

Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday



Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

Continue Reading

Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts




Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

Continue Reading


Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin



Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges

Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.

The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.

The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.

We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.

Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.

Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.

In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.

The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.


Continue Reading