Connect with us


TCN to Stabilise Power Supply in Abuja with $170m Projects



power project
  • TCN to Stabilise Power Supply in Abuja with $170m Projects

The Transmission Company of Nigeria (TCN) Thursday disclosed that it has begun the execution of a $170 million power transmission project called the ‘Abuja Feeding Scheme’.

Under the programme, TCN will build five new transmission substations in the capital city within 24 months to stabilise electricity supply in the area.

The Managing Director of TCN, Mr. Usman Mohammed, stated this during the ground breaking ceremony for the projects in Abuja.

Mohammed said the scheme comprises two 330 kilovolt (kV) substations and three 132kV substations, and will take care of power supply challenges in the city.

“This Abuja transmission scheme is to solve the transmission problem in Abuja at least in the next 20 years. Currently, Abuja has only two 330kV substations and we are putting additional two; it has five 132kV substations, we are adding three,” Mohammed said.

He explained that the TCN has continued to expand the national grid with new projects as well as the completion of existing projects.

According to him, out of the 800 containers of TCN’s equipment stranded in the port, “only two have been lost; the other 798 containers are intact and we are removing them from the ports.”

Commending the French Development Agency (AFD) for its commitment to Nigeria’s power sector, Mohammed, said it was the first time an international donor agency would finance a green-field project in the country.

He noted that the TCN saved $25 million in the procurement process for the new Abuja projects because they followed a competitive and transparent procurement process.

In his remarks, the Permanent Secretary in the Ministry of Power, Mr. Louis Edozien, said the five substations will add 624 megawatts (MW) wheeling capacity to the TCN which could be supplied to residents and businesses in and around Abuja.

Edozien stated that the contractors were competent, and charged them to demonstrate their competence in the execution of the project.

He equally admonished the Abuja Electricity Distribution Company (Disco) to be willing to take up more electricity from the expanded TCN capacity, adding that: “It is the Disco that must take the role in taking this power and delivering the power to the consumers.”

Edozien, the urged AFD to also invest in the distribution segment of the sector. He assured it the investment would be worth it.

Managing Director of the project consultancy firm, OskaJo and Partners, Mr. Joseph Uujamhan, said three contractors would handle the project.

Uujamhan said TBEA and Energo Projekt will build the 330kV transmission lines from Lafia in Nasarawa State to New Apo, then to Old Apo 132/33KV substation, to connect to new substations at Lubge and Kuje in Abuja.

According to him, Grid Solutions will build two 330kV substations in New Apo and Lugbe with 600MVA transformer, while Sieyuan-Sac will build three 132kV substations in Lokogoma, Kuje and Dawaki (Gwarimpa) area of Abuja.

“With the help of everyone here, we assure you of complete success and in within 24 months’ time, we will all be smiling,” Uujamhan said.

Also, the Deputy Ambassador of France to Nigeria, Audren De Kerdrel Guillaume, said the $170 million transmission project as financed by AFD would stabilise the quality of power supply to over three million residents of Abuja.

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.


Electricity Consumers Get 611,231 Meters Under MAP Scheme



power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

Continue Reading


Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed



Banana Island

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

Continue Reading


N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN



petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

Continue Reading