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Queues Persist Despite Increased Fuel Supply Due to Non-uniformity of Prices– IPMAN

Non-uniformity of fuel prices at various filling stations has been identified as the cause of queues in stations that sell at lower rates.

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Petrol - Investors King

Queues at filling stations may linger if consumers continue to patronise only selected outlets with cheaper rates, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned.

Non-uniformity of fuel prices at various filling stations has been identified as the cause of queues in stations that sell at lower rates.

The National Operations Controller of IPMAN, Mike Osatuyi stated that despite the increased supply of petrol in the country, long queues have persisted in some filling stations.

Investors King gathered that these selected filling stations sell fuel to motorists and other consumers below N200 per litre, hence the increased patronage.

Osatuyi said, “there is petrol in the country. No more scarcity, however, the long queues you still see on the expressways is caused by those who want to buy petrol at N180 per litre. 

“Otherwise, those who can afford the more expensive product can easily drive into other stations and buy without queuing up.”

Investors King learnt that Nigerian National Petroleum Corporation (NNPC) stations sell at N179 per litre, major oil marketers sell at N180 per litre while private filling stations still dispense theirs at over N200 per litre.

In an internal memo obtained on Monday signed by IPMAN’s President, Chinedu Okoronkwo, members of the association across the country were informed that IPMAN will not continue with the NNPC Limited Customer Express system.

With this, a new directive was issued that the over 30,000 members of the Oil Marketers association should register with the Nigerian National Petroleum Corporation Retail. This is to take effect by January 1, 2023.

However, firms who had booked and paid using the former system were assured of getting their products.

The memo further directed the petroleum marketers to book their new orders using the new platform.

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Energy

Nigeria to Generate 9,000MW Electricity From Solar, Wind, Others– FG

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power project

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.

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Renewables Can Provide Nearly 60 Per Cent of Nigeria’s Energy Demand by 2050

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Renewable Energy - Investors King

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.

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NERC Ascribes DisCos Losses to Energy Theft, Refusal to Pay Bills by Customers

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Electricity

The Nigerian Electricity Regulatory Commission (NERC) has revealed that the Electricity Distribution Companies (DisCos) in the country lose N4.79 out of every N10 worth of energy sold.

The NERC, has however attributed the losses suffered by the 11 electricity distribution companies to ineffective distribution networks, energy theft, poor revenue collection and refusal of customers to pay their bills promptly.

Investors King gathered that the Aggregate Technical, Commercial and Collection (ATC&C) loss of the DisCos amounted to 47.88 percent in Q1 of 2022.

The data from NERC further explained that the distribution companies recorded 22.62 percent technical and commercial losses and 32.64 percent collection loss.

“Conversely, DisCos that underperform relative to their allowed ATC&C losses (i.e., a higher ATC&C loss than allowed), will be unable to earn the expected returns on its set tariffs and could risk long-term financial challenges. 

“The ATC & C loss was largely driven by Benin (56.75%), Kano (53.89%), Kaduna (74.86%), Enugu (54.19%), and Jos (67.92%) DisCos,” NERC said.

The Commission directed the distribution companies to embark on emergency remedial actions to enhance their ATC&C losses by increasing revenue means.

It noted that if the situation persists, the companies will incur much debts which will affect their equity and hinder them from meeting the target.

“Failure to resolve this will not only prevent the DisCos from being able to meet their upstream obligations, but it will also saddle them with too much debt and erode their equity,” NERC stated.

The Electricity Regulatory body stated that on market remittance, the bills of both Nigeria Bulk Electricity Trading Plc (NBET) and the Market Operator (MO) to DisCos was N205.63 billion in the first quarter of 2022.

The breakdown of the invoices earmarks N164.86 billion as generation cost and N40.77 billion as cost for transmission and administrative services. The DisCos collectively paid a total sum of N135.69 billion from the estimated bill left with  N69.94 billion outstanding balance, placing its remittance performance at 65.99 percent.

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