Oil marketers in Nigeria under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have decried the ex-depot price of Premium Motor Spirit (PMS) known as petrol which increased by 110 percent in four months.

According to the data report from the industry, in October, the ex-depot price read N148 per litre while in February, it recorded N312 per litre.

Investors King gathered that the stipulated price by the Nigerian National Petroleum Company Limited (NNPCL) for the depots to sell PMS to oil marketers is N148 per litre but was recently increased to N172 per litre.

In the report issued by the Major Oil Marketers Association of Nigeria, the least average ex-depot price of petrol within the four months was N303 per litre.

It explained that the lowest price of N303 per litre was seen at Apapa depots, while petrol was sold at N305 per litre in Ibafon depots. However, the highest price recorded within the timeframe was at Satellite depot for N312 per litre.

The price increase has been attributed to fuel scarcity which has made pump prices rise from N179/N180 per litre to as high as N500/litre in some places.

According to the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the price hike is as a result of rising foreign exchange rate, illegal levies, high cost of daughter vessels amongst others.

Oil Marketers have also lamented the high cost of transporting petroleum products from the depots to their stations as well as high running costs.

The IPMAN Chairman, Satellite Depot, Akin Akinrinade charged the Federal Government on the need to jerk up the rehabilitation of the nation’s refineries for massive local production.

“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.

Also speaking on the subject, Operations Controller, IPMAN Mike Osatuyi, called for the removal of fuel subsidy and deregulation in the industry to solve the fuel scarcity challenge. 

“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy will be removed in June, let’s wait and see, but until then, we have to manage,” Osatuyi stated.

The Federal Government has stated that about 9,000 megawatts of electricity would be generated from renewable energy in its ongoing projects.

Investors King reports that the renewable energy sources to be explored include; solar, wind, hydro, tidal, biomass, geothermal, amongst other energy sources.

The Federal Minister of State for Power, Goddy Jedy-Agba made the assertion on Thursday, during the Rural Electrification Agency management and board retreat held in Abuja.

He noted that tapping into renewable energy sources will bring about quick transformation in the nation’s electricity supply.

“This administration’s efforts to improve energy access through on- and off-grid electrification solutions are commendable. We plan to continue to optimise it while drawing in quality investments and private sector participation in the space.

“We must not lose sight of Vision 30:30:30, aimed at raising the generation capacity to 30,000MW by 2030, of which 30 per cent (9,000MW) will be from renewable sources. The Rural Electrification Agency

is pivotal to this vision, as it has critical roles it must continue to play in the global conversation on energy transition and off-grid electrification,” the minister said.

Jedy-Agba commended the REA for their efforts so far and urged them to collaborate with the necessary organisations for a productive and desired outcome.

He stated that the agency will deliver better and pass its current scorecard with its continuous involvement of experts in its activities.

In his remarks, the Managing Director, Rural Electrification Agency, Ahmad Salihijo, stated that the programme was organised to rebuild the agency and discuss with critical stakeholders the challenges surrounding the execution of major projects. 

He charged staff members of the firm to put in their best for a sustainable development, innovative expansion of the agency and enhancement of its record which will further boost the nation’s progress.

Nearly 60 per cent of Nigeria’s energy demand in 2050 can be met with renewable energy sources, saving 40 per cent in natural gas and 65 per cent in oil needs at the same time, according to a new report by the International Renewable Energy Agency (IRENA).

With a growing population and a range of socioeconomic challenges, Nigeria requires sustainable energy sources to meet the growing needs for all the sectors of its economy and achieve universal access to modern energy services.

Renewable Energy Roadmap for Nigeria, developed in collaboration with the Energy Commission of Nigeria, demonstrates how renewable energy technologies are key to achieving a sustainable energy mix and meeting the country’s growing needs.

“By using its abundant, untapped renewables”, IRENA’s Director-General Francesco La Camera said, “Nigeria can provide sustainable energy for all its citizens in a cost-effective manner. Nigeria has a unique opportunity to develop a sustainable energy system based on renewables that support socioeconomic recovery and development, while addressing climate challenges and accomplishing energy security.”

Dr. Adeleke Olorunimbe Mamora, Nigeria’s Minister of Science, Technology and Innovation added: “The highly distributed institutional structure of the energy sector in Nigeria means that coordination of policies will be essential to unlocking integrated energy transition planning and ensuring its success. A cross cutting agency or body tasked with doing so would be helpful in building consensus and developing a coherent plan which in turn would allow for the scaling up of renewable energy to meet the needs across the Nigerian energy sector.”

The share of primary energy requirements met with renewable energy can reach 47 per cent by 2030 and 57 per cent by 2050, according to IRENA’s report. Electrification will play a significant role in achieving higher renewable energy shares with electricity in final energy use nearly doubling by 2050.

Investment in renewables will be more cost-effective than the conventional pathway. IRENA’s Energy Transition Scenario has lower investment costs than planned policies, 1.22 trillion USD compared to 1.24 trillion USD respectively. This corresponds to 35 billion USD versus 36 billion USD per year respectively.

Advancing the energy transition requires a shift and scaling-up of investments in the short-term to avoid locked in fossil fuel  infrastructure investments with long lifetimes such as natural gas pipelines. In 2050, significantly less use of natural gas and oil compared to planned policies has profound implications for infrastructure investment in fossil fuels, increasing the risk of stranded assets.

Policies for the accelerated deployment of renewables are needed to unlock the report’s benefits. Policy coordination is essential to unlocking successful integrated energy transition planning in Nigeria.