Economy

Electricity: NERC Issues Licences for Additional 1,839.5MW

Published

5 years ago

November 20, 2018

Electricity: NERC Issues Licences for Additional 1,839.5MW

The Nigerian Electricity Regulatory Commission has issued six new licences, renewed three and extended one licence for investors planning to increase Nigeria’s electricity generation by about 1,839.5 megawatts.

The licences were issued in the first quarter of 2018 as NERC noted that when the power plants became operational, their capacities would increase the quantum of electricity generated and distributed across the country.

NERC, in its most recent quarterly report obtained by our correspondent in Abuja, said, “Six new, three renewal and one extended licence application with a total nameplate capacity of 1,839.5MW were approved in the first quarter of 2018.”

It further explained that some of the licences were for captive power, on-grid and off-grid generation of electricity.

The commission said, “After satisfactory evaluation, the commission issued two new on-grid and four off-grid licences. During the quarter, an extension of five years was also granted to one other generation licence.

“The total nameplate capacity of the licences summed up to 1,464.5MW. Similarly, three permits for a total capacity of 375MW were renewed for captive power generation.”

Nigeria’s power generation has persistently hovered between 3,500MW and 4,000MW. The Federal Government had over the years reeled our plans and measures adopted to improve on the country’s power generation capacity.

However, Minister of Power, Works and Housing, Babatunde Fashola, had last week announced that the current administration had improved power generation from 4,000MW to 7,000MW, transmission from 5,000MW to 7,000MW and distribution from 2,690MW to 5,222MW.

Fashola added that government’s work in the sector was not finished as it was still in the process of delivering additional power.

The minister listed some projects that would deliver additional electricity to the grid to include generation from Kaduna, 215MW; Afam IV, 240MW; Kashimbilla, 40MW; Gurara, 30MW; Dadinkowa, 29MW; power for nine universities, 15 markets and two big hydro power plants of 700MW in Zungeru and 3,050MW in Mambilla.

Fashola said, “Over 100 injection sub-stations and a distribution expansion programme to be funded by the Federal Government are now in an advanced state of procurement.

“Although there are still people we have not reached, although there are still disruptions from time to time, and although there are still people who also need meters, and we are working to reach them, it is indisputable that we have delivered on incremental power.”

He stated that the transmission arm of the sector was being improved upon, as 90 projects were on nationwide, with Apo, Mayo Belwa, Damaturu, Maiduguri, Odogunyan and Ejigbo being recently completed ones.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M

Published

17 hours ago

December 8, 2023

Investors King

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

Economy

Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption

Published

2 days ago

December 7, 2023

Investors King

The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

Economy

Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion

Published

2 days ago

December 7, 2023

Investors King

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.