Nigeria, Africa’s largest economy, lost N184 billion to gas flaring in the first half (H1) of 2022, the Nigerian Oil Spill Monitor, a unit under the Nigerian Oil Spill Detection and Response Agency (NOSDRA), reported on Sunday.
Despite Nigeria’s huge gas deposits, Africa’s largest economy continues to struggle with the necessary infrastructure needed to convert gas flaring to useful natural liquified gas. In the last 18 months, Nigeria has lost almost a trillion Naira in gas value.
The report showed that Nigeria lost a total sum of N707 billion in 2021 alone while another N184 billion was lost in the first half of 2022.
NOSDRA report noted that gas companies operating in the country flared 126 billion standard cubic feet (SCF) of gas in the first six months of 2022, resulting in $441.2 million or N188.887 billion (using the I&E exchange rate) lost.
Further analysis of the report showed that oil firms operating in the offshore oilfields flared 62.2 billion SCF of gas valued at $217.6 million in the first half of 2022. However, companies operating onshore flared a total of 63.9 billion SCF, estimated at $223.6 million.
Speaking on the situation, Prof. Olalekan Olafuyi, the Chairman of the Society of Petroleum Engineers (SPE), Nigeria Council, in an interview on Sunday, said the Federal Government is working on raising gas flaring penalties to further compel oil companies operating in the country to comply with the existing gas policy.
He said “We are working closely with the Nigerian Upstream Petroleum Regulatory Commission, and I can categorically say that companies who flare gas will now pay more than those utilising it. So, it will be to their advantage to start thinking of ways to utilise their gas instead of flaring them.”
Presently, the federal government imposed a penalty of $2 on 1000 SCF of gas flared by oil companies producing above 10,000 barrels per day (bpd). While companies producing less than 10,000 bpd are fined $0.5 per 1000 scf of gas flared.
Even though Olafuyi did not state how much increase the new rate would attract, he said the Federal Government is working with the Nigerian Upstream Petroleum Regulatory Commission (BUPRC) to devise a suitable penalty increase.
$472 Billion Will be Invested in Renewable Energy in 2022; Says Agusta & Co
As the call for zero carbon emission continues to gain momentum, Augusta & Co disclosed that $472 billion will be invested in renewable energy in 2022
As the call for zero carbon emission continues to gain momentum, Augusta & Co disclosed that $472 billion will be invested in renewable energy in 2022.
According to a report published by the research and credit rating firm, this represents an increase of 44% when compared to $322 billion spent on renewable energy in 2017.
The shift from hydrocarbon energy sources has been a major discussion in many bilateral and multilateral meetings. It has also been featured as part of the discussion at the ongoing 77th UN General Assembly Meeting.
Investors King also understands that the 27th Conference of Parties (COP 27) will be held in November 2022 in Egypt at Sharm El Sheikh International Convention Centre where world leaders will discuss how to tackle the global challenges of climate change.
Besides, the International Energy Agency has also predicted that Renewables are set to account for almost 95% of the increase in global power capacity through 2026.
Meanwhile, in order not to be left out of the pack, the Nigerian Government has developed an Energy Transition Plan with an estimated cost of $410 billion.
Investors King also reported that the Vice President, Professor Yemi Osinbajo travelled to the United States in August to discuss Nigeria’s Energy Transition Plan with key global players.
However, Augusto & Co opined that with the inadequate electricity supply from the national grid which has made many Nigerians rely on generators for energy generation, the country might miss its target or find it very hard to achieve.
According to the World Bank, 47% of Nigerians lack access to grid electricity and those who do have access, face regular power outages. The Nigeria Government will therefore need to invest vigorously in renewable energy so as to meet up with its Energy Transition Plan, (2060).
D.Light Launches Solar Products in Nigeria to Transform Lives of Low-Income Individuals
D.Light has officially launched into the Nigerian market to transform the lives of low-income individuals
D.Light, a pioneering manufacturer and provider of Solar products has officially launched into the Nigerian market to transform the lives of low-income individuals.
This expansion into Nigeria is coming after the company secured a $50 million investment some months ago to better focus on the renewable energy space and support its expansion in Africa.
Speaking at the launch, Co-founder and President Sam Goldman said “The reality is that we are still so far from where we need to be in terms of our population and their needs.
“Hence our target market is the low-income individuals; not just the rural communities which is why the company adopts the ‘pay-as-you-go” model. Access to sustainable energy will not be possible unless we solve the funding problem.
Also speaking about D.light’s mission in Nigeria and across the globe, the chairman of the board, Mrs. Ibukun Awosika stated that the company seeks to transform the lives of a lot of people on earth, as well as bridge the gap to ensure inclusiveness for everyone.
Her words, “Our vision is to change the lives of billions of people on the face of the earth who are crying for equity to have a chance to live a better life.
“We are in Nigeria to transform Africa one community at a time, and this is our driving force she said”.
The co-founder and CEO, Ned Tozun explained that d.light has employed over 6,000 people across Africa.,
He said, “Our target is lower-income individuals. There is a sun in the village and the cities, so when we just say a rural market, it is not.
“The guy who lives in Lagos, but doesn’t have a generator shouldn’t even use a generator if he can have a solar solution. Why? Because of environmental sustainability.
“So, when you think about all the ESG matters, you will encourage more people to use alternate sources of energy rather than polluting sources of energy and that helps everywhere; whether you are in the city or the village. It is about lower income.
“What we’ve done is to think of the entire problem chain. Firstly, innovate the product. Two, how do you deliver it? Deliver it to them at the most reasonable price. Thirdly, make sure it’s affordable for them”.
Dangote Cement and Other Top Listed Companies Spent N207 Billion On Power in Six Months
As fuel prices continue to soar globally, top companies in Nigeria spent N207 Billion on energy in the first half of the year (H1).
As fuel prices continue to soar globally, top listed companies in Nigeria spent N207 Billion on energy in the first half of the year (H1).
Top companies by market capitalisation listed on Nigeria Exchange Limited (NGX) saw their energy cost increase by 33.6 per cent in the first half (H1) of 2022. Unlike in the first half of 2021, the top companies expended N155.86 Billion on energy, leaving a difference of N51.14 Billion between the period.
Dangote Cement recorded the highest percentage of energy cost in H1 2022 with a 31.32 per cent increase to N129.97 billion. In H1 2021, Dangote Cement spent N98.97 billion.
It is alarming to note that Dangote Cement’s energy cost made up 40.31per cent of its total production cost of sales in the first half of 2022.
BUA Cement reported a 64.70per cent spike in energy costs in H1 2022 at N43.58 billion. In H1 2021, BUA Cement spent N26.46 billion on energy consumption. The company’s energy consumption accounted for 44.7 per cent of its total cost of production in H1 2022.
Zenith bank’s energy cost increased by 55.27 per cent while GTCO reported a 58.65 per cent increase in energy cost.
Other companies that saw a significant increase in their energy consumption include BUA Foods, Nascon Allied Industries, Fidson Healthcare Plc, GlaxoSmithKline Consumer Nigeria Plc, Dangote Sugar Refinary, Lafarge Cement, BUA Cement.
Energy prices have been on the rise since the beginning of the year. Apart from other local factors, the invasion of Ukraine by Russia also contributed to the global energy crisis.
To mitigate the rising cost of energy, companies are now looking for an alternative source of energy such as solar energy. This however can not guarantee a significant decrease in their energy cost because of the quantity of every they need for production.
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