Energy

Lawmakers Demand Independent Marketers’ Access to Dangote Refinery Amid Fuel Scarcity Fears

Published

2 weeks ago

September 27, 2024

The House of Representatives has urged the President Tinubu-led government to end the reign of monopoly in the Nigerian oil sector and allow independent marketers to lift petrol directly from the Dangote Refinery.

The latest development follows concerns raised by Oboku Oforji, the member representing Yenagoa/Opokuma Federal Constituency, Bayelsa State.

Investors King gathered that while NNPCL was initially named as the sole off-taker of the refinery’s product, recent changes allowed Major Marketers access to PMS.

However, Oforji lamented the monopoly ravaging the country’s oil sector where only the NNPC and Major Marketers are allowed to lift petrol from the refinery.

According to Oforji, if the Federal Government fails to intervene, and stop the monopoly, Nigerians will continue to suffer the effects of fuel scarcity.

He warned that independent marketers have threatened to begin the importation of the product to sustain their business.

He said, “The House is worried that NNPCL and the major marketers are exclusive off-takers, which spells monopoly and is equivalent to greed. This is the same NNPCL that has failed to manage our crude and refineries for decades.

“If this monopoly is not nipped in the bud, the suffering of Nigerians caused by the scarcity of PMS will continue, and we all know the implications for the economy.

“No wonder the late MKO Abiola of blessed memory, in a viral video some years ago, lamented that the NNPCL lacks transparency and accountability.

“The House is disturbed that allowing the NNPCL and major marketers to lift Premium Motor Spirit from the refinery to the exclusion of independent marketers is not good enough.”

“IPMAN representatives have expressed fears that they may be forced to resort to fuel imports to sustain their businesses,” he added.

Oforji thanked Dangote Refinery for helping the country meet the increasing demand of petrol.

According to him, with the refinery, Nigeria’s Gross Domestic Product will experience a steady increase.

His words, “The House notes that by this achievement, Nigeria is driving towards energy self-sufficiency, cost and foreign exchange savings, meeting the increasing demand for fuels, and attracting foreign capital investment. The generation of foreign exchange through the export of finished products, conservation of foreign exchange, and significant value addition will contribute to an increase in Nigeria’s Gross Domestic Product.

“The House further notes that given the high demand by millions of Nigerians for PMS and the ordeal they go through to obtain it, NNPCL should allow independent marketers to lift the product from the Dangote refinery,” he added.

If the prevailing monopoly is not nipped in the bud, Oforji noted that the suffering of Nigerians caused by the scarcity of PMS will continue with disastrous consequences for the economy, and we all know the implications,” he noted.

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Energy

FG Unveils N122 Billion Boost for Six Indigenous Gas Companies

Published

6 days ago

October 3, 2024

Bassey Marshall

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.”

Energy

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

Published

1 week ago

September 30, 2024

Ugwoke Ogbodo

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.

Energy

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

Published

1 week ago

September 30, 2024

Bassey Marshall

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.”