The African Energy Chamber (AEC) is reaffirming its commitment to Nigeria with a planned visit by AEC Executive Chairman NJ Ayuk on the 5th-10th July 2021. With the goal of supporting Nigeria in its efforts to pass the Petroleum Industry Bill, market the country as a premier investment destination, and promote African Energy Week (AEW) 2021 as the ideal networking platform for Nigerian oil and gas companies, Ayuk is prioritizing pan-African partnerships and continent-wide energy growth.
Committed to African-focused dialogue, Ayuk’s visit will comprise private meetings with both government representatives, National Oil Company leaders, and private sector executives. Additionally, the AEC will host a cocktail event for the Nigerian business community, prioritizing networking and partnerships as a form of prelude to AEW 2021.
“Nigeria represents a particularly lucrative market whereby investment and development should be directed. The AEC is a firm believer in partnerships and collaboration among Africa’s energy sector and is, therefore, reaffirming a commitment to Nigerian people and Nigerian energy,” stated Ayuk.
With over 187 trillion cubic feet of natural gas reserves, Nigeria has the potential to drive energy accessibility and security, boost job creation and industrialization, and spur socioeconomic growth across the entire region. In response to growing opportunities within the natural gas sector, Ayuk – accompanied by Florival Mucave, Executive Chairman of the Mozambique Oil and Gas Chamber – will be visiting various gas projects and developmental sites across the country. By focusing on productive dialogue regarding effective gas monetization and utilization, both Ayuk and Mucave aim to establish long-term partnerships with Nigerian companies and leaders in a bid to fast-track energy sector growth and poverty alleviation across the entire continent.
“With amazing talent and an exceptional skills set, and by fostering true partnerships with the right companies, Nigerian oil and gas companies can inspire other African companies in the energy sector to grow. It is through these partnerships where we will see increased energy independence and private sector growth across Africa,” continued Ayuk.
Throughout the visit, Ayuk will drive a discussion around the African energy transition, reaffirming the value of inclusivity and equity within Nigeria’s just transition. Recognizing the different economic realities both globally and across Africa, Ayuk is focused on collaborative dialogue with regards to Nigeria’s proposed strategies to achieve net-zero emissions by 2050.
Additionally, the visit will comprise key discussion topics such as African local content and intra-African trade – with particular focus on trade between African nations. Ayuk’s visit is intended to not only demonstrate the AEC’s ongoing support, but to help drive investment and development in one of Africa’s most esteemed oil and gas markets. By prioritizing private sector intra-African expansion, and motivating increased participation by Nigerian companies in the wider African energy market, Ayuk is emphasizing the role of the private sector in fast-tracking continent-wide energy success.
With the launch of AEW 2021 in Cape Town on the 9th-12th of November 2021, Ayuk is committed to uniting global investors with Nigerian oil and gas opportunities. By focusing on networking and partnerships, and presenting a platform whereby global stakeholders and industry leaders can make decisions regarding Africa’s energy future, AEW 2021 recognizes Nigeria’s role and significant contribution to Africa’s energy sector success.
Egbin Decries N388B NBET Debt, Idle Capacity
Egbin Power Plc, the biggest power station in Nigeria, has said it is owed N388bn by the Nigerian Bulk Electricity Trading Plc for electricity generated and fed into the national grid.
The company disclosed this on Tuesday during an oversight visit by the Senate Committee on Privatisation, led by its Chairman, Senator Theodore Orji, to the power station, located in Ikorodu, Lagos.
The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells it to the distribution companies, which then supply it to the consumers.
The Group Managing Director, Sahara Power Group, Mr. Kola Adesina, told the lawmakers that the total amount owed to Egbin by NBET included money for actual energy wheeled out, interest for late payments and available capacity payments.
Egbin is one of the operating entities of Sahara Power Group, which is an affiliate of Sahara Group. The plant has an installed capacity of 1,320MW consisting of six turbines of 220 megawatts each.
The company said from 2020 till date, the plant had been unable to utilize 175MW of its available capacity due to gas and transmission constraints.
Adesina said, “At the time when we took over this asset, we were generating averagely 400MW of electricity; today, we are averaging about 800MW. At a point in time, we went as high as 1,100MW. Invariably, this is an asset of strategic importance to Nigeria.
“The plant needs to be nurtured and maintained. If you don’t give this plant gas, there won’t be electricity. Gas is not within our control.
“Our availability is limited to the regularity of gas that we receive. The more irregular the gas supply, the less likely there will be electricity.”
He noted that if the power generated at the station was not evacuated by the Transmission Company of Nigeria, it would be useless.
Adesina said, “Unfortunately, as of today, technology has not allowed the power of this size to be stored; so, we can’t keep it anywhere.
“So, invariably, we will have to switch off the plant, and when we switch off the plant, we have to pay our workers irrespective of whether there is gas or transmission.
“Sadly, the plant is aging. So, this plant requires more nurturing and maintenance for it to remain readily available for Nigerians.
“Now, where you have exchange rate move from N157/$1 during acquisition in 2013 to N502-N505/$1 in 2021, and the revenue profile is not in any way commensurate to that significant change, then we have a very serious problem.”
He said at the meeting of the Association of Power Generation Companies on Monday, members raised concern about the debts owed to them.
He added, “All the owners were there, and the concern that was expressed was that this money that is being owed, when are we going to get paid?
“The longer it takes us to be paid, the more detrimental to the health and wellbeing our machines and more importantly, to our staff.”
Adesina lamented that the country’s power generation had been hovering around 4,000MW in recent years.
Nigeria’s Power Distribution Firms Increase Revenue Collections By 63 percent
Against the backdrop of reforms and the introduction of Service-Based Tariff (SBT), power Distribution Companies (DisCo) have increased revenue by 63 percent.
According to Vice President Yemi Osinbajo, government subsidy in the sector will soon be limited as metering and other reforms improve the efficiency of the sector.
Osinbajo, who spoke at the 14th annual conference of the Nigerian Association of Energy Economics (NAEE), said with increased funding, the power sector would soon be fully financed by the market, rather than government subsidies.
“It is anticipated that all electricity market revenues will be obtained from the market with limited subsidies as reforms in metering and efficiency with the Discos continue to improve.
“There is an accelerated investment in transmission and distribution (over $3 billion) infrastructure that will put Nigeria on a path to 10GW+ and beyond through interventions with the CBN, the Siemens partnership, the World Bank, and African Development Bank and others,” the vice president said.
He said that efforts to invest $3 billion in revamping the distribution and transmission networks were ongoing in collaboration with the private sector,
The vice president, who was represented by Special Adviser to the President on Infrastructure, Ahmad Zakari, stated, “Electricity tariff reforms with the service-based tariff have increased collections from the electricity sector by 63 percent, increasing revenue assurance for gas producers and stabilising the value chain.
He said the current administration had continued to invest in expanding generation to cater to its current and future needs.
He disclosed that the Okpai PH II plant, the Afam III fast power plant, the Zungeru hydro plant, and the Mabilla hydro plant would add more than 1000 MW in both gas and renewable segments to the country’s generation capacity.
He said the present administration has transformed the Rural Electrification Agency (REA) into a renewable energy-driven organisation with solar power at its heart, with the five million solar connections programme, the Solar Power Naija.
This aims to supply power to 25 million citizens through private and public-private partnerships and is the largest off-grid connections programme in Africa.
He stated that the energy sector was one of the most critical sectors hit by COVID-19 due to the fact that it relies on human input.
According to him, the lockdown in major cities and restrictions in movement across the globe caused a halt in the operations of many energy organisations, leading to huge revenue losses for both the public and private sectors.
In search Of Alternative Power Supply, Nigerians Spend N7T On Power Generation Annually
Nigerians, and by extension, their businesses, expend about N7 trillion annually on power generation, the Executive Director and Chief Operating Officer, Off-Grid Tech Solutions Ltd, Stephen Ogboko has said.
Ogboko, who made this known at a virtual news conference in Lagos said that inadequate power supply had been a major challenge facing businesses in the country, forcing them to source alternative power supply for their operations.
“Nigeria is among the countries with a very high need of electricity.
“A significant amount of the economy is powered largely by small-scale generators and almost 50 percent of the population have limited or no access to the grid.
“This could be effectively tackled with the deployment of off-grid renewable energy solutions by making electricity more cost effective and environmentally friendly,” Ogboko said.
He described renewable energy from off-grid resources as sustainable and cost-effective for farmers and Small and Medium Enterprises (SMEs).
Ogboko said Off-Grid Tech Solutions Ltd. partners with the global innovators of off-grid solutions to provide reliability.
“This is cost-effective and lasting solutions to societal problems toward improving the lives of people in developing nations.
“Our team of experts have worked all over Africa, and continue to work to provide solutions to a variety of sectors.
“We have marketed and delivered smart off-grid solutions for many years, providing permanent, efficient, safe and affordable solutions,” He said.
Ogboko said that the firm specialises in the marketing of heat lamps and incubators, gas-powered air conditioners and cooling fridge, mobile power solution-solar energy box, pressure cookers, among others.
He said that notable partners of the initiative were the Federal Ministry of Agriculture and Rural Development (FMARD), United Kingdom Department for International Trade (UK-DIT), International Institute of Tropical Agriculture (IITA), All Farmers Association of Nigeria (AFAN), Buckler Group, and Tywit.
The News Agency of Nigeria (NAN) reports that off-grid renewable energy solutions support the expanding access to modern energy services in an environmentally sustainable manner.
Off-grid renewable will deliver a wide spectrum of electricity services for households, public services, and also serve commercial and industrial purposes.
Off-grid energy solutions are one of the key drivers of the nation’s push for industrialisation.
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