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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Sun Africa Commits $2.2 Billion to Transform Nigeria’s Power Sector
Sun Africa LLC, a global entity dedicated to supporting Africa’s energy needs, has announced a commitment of approximately $2.2 billion for the development of Nigeria’s power sector.
The pledge follows a meeting between the Minister of Power, Adebayo Adelabu, and representatives from Sun Africa, led by Chairman Goran Rajsic.
In the initial phase, the project will concentrate on delivering 961 MWp of solar PV infrastructure and 455 MWh of battery energy storage, marking a transformative venture valued at $2.2 billion.
This strategic collaboration aims to address Nigeria’s growing demand for new power infrastructure, aligning with the nation’s economic needs and transitioning toward sustainability.
Adelabu emphasized Nigeria’s significant requirement for new power infrastructure to support economic growth and sustainability.
The commitment from Sun Africa and its partners signifies a crucial step toward achieving Nigeria’s electricity goals.
Goran Rajsic expressed gratitude to the project partners, highlighting the support in designing a comprehensive solution featuring cutting-edge solar PV and battery storage technologies.
Sun Africa’s collaboration with Sterling & Wilson Renewable Energy Limited as its EPC partner represents a milestone in advancing sustainable and reliable energy solutions for Nigeria.
This initiative aligns with the nation’s commitment to driving positive change through innovative renewable energy solutions.
Niger Delta Power Holding Company Reveals N190bn Debt Owed by Government Entities
The Niger Delta Power Holding Company (NDPHC) has disclosed that the Central Bank of Nigeria (CBN), the Nigerian Bulk Electricity Trading Plc (NBET), and the Nigerian Electricity Liability Management Company owe a cumulative sum of N190 billion for electricity supply.
Chiedu Ugbo, the Managing Director and CEO of NDPHC, shared this information during a media briefing in Lagos.
Ugbo highlighted that the N190 billion debt has accumulated from 2015 to May 2023. While the exact amount owed by NBET wasn’t specified, Ugbo emphasized that the huge indebtedness to NDPHC runs into hundreds of billions, affecting the company’s operations and financial obligations.
He stated, “NDPHC is also not paid for availability but only as dispatched, thereby depriving NDPHC of hundreds of billions since 2015 when the Transitional Electricity Market was declared, and the government has so far been denied revenue as high as N3trn.”
Ugbo emphasized the challenging situation the debt has created, making it difficult for NDPHC to meet operational expenditures, pay gas suppliers, and maintain regular power generation.
To overcome these challenges, he called for urgent private capital mobilization and explored independent transmission projects, involving Gencos as investors.
Executive Director, Generation, Engr. Abdullahi Kassim, highlighted the ‘Light-up Nigeria Initiative,’ a program aimed at leveraging NDPHC’s generation assets to provide reliable power supply to eligible customers, distribution companies, and third-party project developers, ultimately achieving over 97% power distribution to the masses.
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