Connect with us

Energy

NBET Approves, Processes Payment Of N9 Billion From PRSP To Gencos

Published

on

Power - Investors King

In March alone, Nigeria’s electricity grid has collapsed twice, resulting in a nationwide blackout. Among other factors, the regular collapse of the power grid is unconnected to poor utility performance, theft of grid equipment, weather, as well as insufficient funding.

According to a report by TheConversation, Nigeria’s national electricity grid has collapsed more than 200 times in the last nine years and in sub-Saharan Africa, every 1% increase in power outages (in terms of hours) has been associated with a 2.86% decrease in gross domestic product (GDP). This translates to a loss of about US$28 billion in GDP.

However, as part of efforts to resuscitate power generation and ensure even distribution of electricity across the country, the Nigerian Bulk Electricity Trading Plc (NBET) has approved and processed the sum of N9 billion from the Power Sector Reform Programme (PRSP) to all to power generation companies (GenCos).

The NBET also disclosed that it paid all GenCos the sum of N39 billion for power generated in January. This brings the total payments to GenCos in the last two months to over N80 billion.

“NBET paid N39 billion to GENCOs in first tranche of payments towards the settlement of January 2022 Payment Cycle. DisCos performance for same period is 51 per cent.

“Another N9 billion from the PRSP has been approved and processed by NBET as further payments to the GenCos”, it added.

According to the NBET, all GenCos are expected to also make similar payments to the gas suppliers. The NBET, incorporated on the 29th day of July 2010 and 100% owned by the Federal Government of Nigeria,  is the manager and administrator of the electricity pool (‘The Pool’) in the Nigerian Electricity Supply Industry (NESI).

In an earlier report by Investors King, Financial Derivatives Company (FDC) Limited revealed that Nigeria will require about $100 billion in funding to solve its electricity supply challenges over the next 20 years, as investors are willing to actively participate in the power sector through partnerships, joint ventures, training of personnel and building of transmission and distribution infrastructure if only necessary reforms are put in place.

According to the report by FDC, of the estimated $100 billion in investment required to bridge the gap, renewable energy sources are likely to form the bulk of Nigeria’s energy solutions as global warming and climate change restrict investment in traditional energy sources.

Continue Reading
Comments

Energy

FG Unveils N122 Billion Boost for Six Indigenous Gas Companies

Published

on

Gas Plant

The Federal Government has unveiled six indigenous gas companies eligible for the N122 billion equity participation program under the Midstream Downstream Gas Infrastructure Fund (MDGIF).

According to the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, the six companies—Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—have undergone rigorous screening.

Ekpo made the announcement during the signing ceremony of the MDGIF and Promoters Agreement held in Abuja.

He revealed that the investment reflects the government’s commitment to energy security, economic growth, and the development of the country’s gas infrastructure.

Ekpo described the signing as a significant step in the country’s energy sector.

He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”

“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF.”

Ekpo assured that the N122 billion will not be the last as the MDGIF is screening another batch of beneficiaries.

He urged the benefiting investors, who are the first to sign agreements for the projects since the enactment of the Petroleum Industry Act (PIA), to live up to expectations.

He encouraged companies that did not make the first list not to lose hope.

The minister said, “For those who did not make the first six, we will have a second batch. Go home and put your records in order, and of course, this is the first since the passing of the PIA in 2021. This is the first signing, and we expect you to live up to expectations.”

Continue Reading

Energy

Nigerians Tackle Minister of Power Over Claim of 20-Hour Electricity Supply 

Published

on

Power - Investors King

Many Nigerians have expressed shock and critisised the Minister of Power, Bayo Adelabu, harshly for claiming that over 40 percent of the country’s population is now enjoying up to 20 hours of electricity supply per day.

But his critics disagreed, saying the country still experience power outages and inconsistent supply at their deteriorating levels.

Reacting to Adelabu’s announcement, a resident of Lagos State, Kiwon Adesanya, said the minister’s statement is a far cry from the reality that citizens experience daily.

He said the people would only count themselves lucky if they get 8 hours of electricity in a good week, noting that “The constant power cuts are disrupting our lives and businesses.”

Echoing similar sentiments in other parts of the country, some residents of Ibadan, Oyo State capital said many businesses have collapsed due to poor power supply.

One of the affected residents, Doyin Ekundayo, a small business owner, expressed frustration with the government’s lack of transparency and accountability.

Ekundayon said it is disheartening to hear the minister claim such progress when the nation is still struggling with the same old problems.

While the government has made significant strides in recent years to improve electricity infrastructure, many Nigerians argue that the challenges facing the power sector are more complex than simply increasing generation capacity.

Factors such as transmission losses, inadequate distribution networks, and corruption have contributed to the ongoing power crisis.

Critics of the minister’s claim have called for more data-driven evidence to support his assertion.

They argue that anecdotal evidence from individual consumers is not sufficient to paint a comprehensive picture of the country’s electricity situation.

As the debate over the minister’s claim intensifies, Nigerians are demanding concrete solutions to the power crisis.

They are calling on the government to prioritize investments in renewable energy, improve grid infrastructure, and address corruption within the power sector.

Continue Reading

Energy

Power Generation Reaches New Heights as 40% of Nigerians Enjoy Over 20 Hours of Electricity

Published

on

The Minister of Power, Adebayo Adelabu, has said the major achievement of the ministry under his administration is the increase in power generation to over 5,500 megawatts.

The minister, who spoke during a review of the ministry’s activities in the last one year, said more than 40% of Nigerians are now enjoying at least 20 hours of power supply.

Adelabu described the power supply before his resumption as epileptic, adding that Nigerians were unable to enjoy more than 15 hours of power supply per day.

He said, “Upon resumption, we had an installed generation capacity of 13,000 megawatts, but we were only producing, transmitting, and distributing about 4,000 megawatts of power to the entire country.  

“This was quite low and unacceptable given our population and level of economic activities. Therefore, we were determined to improve the situation. 

“At that time, there was an epileptic supply. Almost all customers, both residential and commercial, could not be guaranteed 12-15 hours of supply.

Additionally, the adoption of renewable energy was skeletal in terms of solar or wind sources of energy. 

“Between then and now, which is about a year, there has been significant improvement. Today, our installed capacity is over 14,000 megawatts of power due to the addition of the newly commissioned Zungeru hydroelectric power plant and improved capacity of some of the existing power plants. 

“Moreover, the major achievement is the fact that today we generate over 5,500 megawatts of power, we transmit and distribute it, and over 40% of customers today enjoy over 20 hours of regular power supply across the nation. You can see that there is a significant improvement between when we came in and now, which we intend to improve further.” 

Furthermore, Minister Adelabu highlighted some challenges faced by the ministry, particularly the issue of the meter gap in the country.

He revealed that out of 13 million customers, over 7 million are without meters.

The minister emphasised the need to address this issue.

However, he revealed that with President Tinubu’s Presidential Metering Initiative, the issue of the meter gap will be addressed.

Adelabu added, “There is the issue of the meter gap that we have. We all know that out of almost 13 million customers that we have in the industry, over 7 million customers are still without meters and are on estimated billing. We said this is not the way to go. 

“We must correct this, which is why President Bola Ahmed Tinubu set up the Presidential Metering Initiative, which has the mandate of installing over 10 million meters within the next five years, at least 2 million meters every year. We are making progress on this. The funds are being provided, and we will soon go into the acquisition of these meters. This would reduce the meter gap.” 

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending