Residents of Abuja might witness an improved electricity supply as six substations with a combined capacity of 1000 megawatts are near completion, Minister of Power, Abubakar Aliyu declared.
In recent times, Nigeria’s power generation has witnessed incessant falls leading to several hours or days of nationwide blackouts.
The national grid has collapsed eight times in 2022, cable news reported.
Speaking to journalists while on an inspection tour, the minister noted that the substations project was undertaken by the Transmission Company of Nigeria and will be commissioned before the end of the year.
“This is a TCN project and is called the Abuja Ring Project. This project, which is about six, combining lines and substations, has a brand new substation in Gwarimpa that will be completed this month or in December,” he stated.
While acknowledging the progress of the work at the substations, the minister assured that some of the substations will start operating by next month.
Investors King learnt that the six substations are situated in Dawaki, Old Apo, New Apo, Kuje, and Gwarinpa.
In addition, the six substations are funded by a credit facility of $170 million dollars from the French Development Agency (AFD).
It could recall that in October 2022, the Federal Government had instructed the contractor headling the substations to expedite work.
Meanwhile, the Minister of Power who was in the company of the Managing Director of TCN, Engr. Sule Abdulaziz also declared at the inspection tour that one of the mega transformers acquired by the Federal Government from Siemens had been cleared at the ports and would be installed at the Old Apo substation.
According to the minister, the mega transformer which would be installed next week will be used to power the six substations.
When completed and operational, the six substations will redistribute the load on the already existing substations in Abuja. For instance, the new substation being built in Dawaki will relieve the load on Kubwa substation.
IBEDC Disconnects UCH Over N500m Debt, Critical Services Affected
The University College Hospital (UCH) in Ibadan, Oyo State, experienced a disruption in its power supply after the Ibadan Electricity Distribution Company (IBEDC) disconnected the hospital over a debt amounting to N500 million.
Dr. Jesse Otegbayo, the Chief Medical Director of UCH, confirmed the disconnection but refrained from elaborating on the exact cause.
IBEDC’s spokesperson, Busolami Tunwase, acknowledged the outstanding debt owed by UCH but denied that the disconnection was intentional.
Tunwase stated that while UCH owed the substantial amount, the power outage was due to a technical fault in the area, coinciding with the debt situation.
Despite repeated attempts to engage UCH in discussions to settle the debt, IBEDC had resorted to disconnection as a last resort.
The disconnection poses significant challenges to UCH’s critical services, affecting patient care and hospital operations.
While IBEDC emphasized its understanding of the hospital’s importance and commitment to resolving the issue amicably, the situation underscores the financial strains faced by healthcare institutions and the essential need for reliable power supply.
Efforts to negotiate and find a resolution between UCH and IBEDC are ongoing to restore normal operations and ensure uninterrupted healthcare services.
Oil and Gas Dealers Threaten Withdrawal as 70% of Downstream Businesses Collapse
The downstream oil sector in Nigeria faces a looming crisis as oil and gas dealers, represented by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), issue a stern warning of potential service withdrawal.
In a recent resolution following their executive committee meeting in Abuja, NOGASA expressed grave concerns over the collapse of approximately 70% of businesses in the industry due to the harsh operating environment.
President of NOGASA, Benneth Korie, highlighted the dire situation, emphasizing the challenges faced by oil marketers in funding operations amidst soaring bank interest rates.
Korie underscored the overwhelming burden faced by operators who are compelled to acquire funds at exorbitant interest rates upwards of 30%, exacerbating financial strain and hindering business viability.
The primary demand voiced by NOGASA is the pegging of the foreign exchange rate at N750/$ to facilitate refinery operations and stimulate the production of refined products domestically.
Failure to address these pressing issues, Korie warned, could result in the withdrawal of services by NOGASA’s over 200 members starting from the next month.
The downstream oil crisis coincides with heightened anticipation for the release of refined petroleum products from the Dangote and Port Harcourt refineries, seen as critical for alleviating supply shortages nationwide.
However, amidst forex crises and inflationary pressures, operators in the oil and gas sector confront mounting economic challenges, necessitating urgent government intervention.
As Nigeria navigates through turbulent economic waters, stakeholders eagerly await decisive action from authorities to salvage the downstream oil sector from imminent collapse and avert potential disruptions in fuel supply chains.
Developers Reject Federal Government’s Cement Price Reduction Agreement
Billionaire Watch4 weeks ago
MacKenzie Scott Sells Off $10.4 Billion Worth of Amazon Shares
Naira4 weeks ago
Dollar to Naira Black Market Exchange Rate January 26th, 2024
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Company News4 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024
Education4 weeks ago
WAEC: Over 8,000 Candidates Register for First Series of Computer Based-WASSCE in Nigeria
Banking Sector3 weeks ago
CBN Accuses Banks of Hoarding $5 Billion in Foreign Currencies
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 30th, 2024