- Century Power Targets Additional 495MW by 2020
Century Power, a subsidiary of the Obijackson Group, has said the first phase of its proposed 1,500 megawatts power plant is expected to be completed in 2020, with the capacity to generate 495MW of electricity.
It said on Thursday that the Century Power Generation Plant would be built in three phases in Okija, Anambra State.
According to a statement, the company’s Managing Director, Dr. Chukwueloka Umeh, in a panel discussion at the MIT Energy Conference in the United States last week, stated that the challenges facing the power sector in Nigeria were surmountable and were being addressed by private sector initiatives.
He said, “There are challenges facing each facet of the power value chain in the country, starting from gas supply all the way to electricity distribution. In order to fix these, significant investment is needed.
“A large part of this investment will come from local and foreign investors, but the government must create favourable conditions in all these sub-sectors to ensure the influx of these desperately needed investments. It cannot be business as usual.”
Describing Nigerians as entrepreneurial, Umeh said, “We must have the right infrastructure to unlock the potential that we have been speaking about for decades. It is easy to see that we export timber, but import toothpicks simply because we do not have a steady and reliable supply of electricity to allow small and medium enterprises manufacture goods locally at competitive prices, thereby creating jobs for the growing unemployed population.
“The people worry about tariff increases, but do not realise that they actually pay much higher tariffs by generating their own power with petrol or diesel-powered generators.”
On renewable energy, he stressed the need for large baseload plants, with the capacity to generate from 100MW and above.
“Renewables are essential to help preserve the environment, and sources such as hydro are definitely good to have in the power mix. However, currently available gas turbine technologies come with higher efficiencies, which make them a sustainable source of power without negatively impacting the environment,” Umeh said.
According to him, gas-fired plants operating in open cycle or combined cycle mode are currently the best option for Nigeria to quickly boost its baseload power output to a reasonable number because they can be developed, built and inaugurated in three to six years.
He said, “Century Power Limited, like the other organisations in the Obijackson Group, is keen on contributing to the development of Nigeria. The country needs all the power it can get to pull it out of the doldrums of suppressed organic economic development.
“Much work needs to be done and can only be achieved if the government sees private sector investors as the true catalysts for economic development that they are, and create appropriate policies to aid sectoral development, as well as provide a favourable climate for such investments.”
Africa’s Economy to Contract by $236bn in Value in 2020 Says AfDB
African GDP to Contract by $236bn in Value Says AfDB
The African Development Bank (AfDB) has said the ravaging COVID-19 pandemic could cost the entire African continent about $236.7 billion in cumulative Gross Domestic Product.
The bank disclosed this in its latest report on African Economic Outlook (Supplement) released on Tuesday.
The bank predicted that the damage could be far greater if the impacts of the pandemic persist on the continent beyond the second quarter of the year. It said this could lead to a bigger contraction in Africa’s GDP in 2020.
According to the bank, the continent’s Real GDP could contract by as much as 1.7 percent this year if the virus has a shorter duration. This represents about a 5.6 percent decline from the January 2020 prediction.
However, under a long term scenario into the second half of the year, this could result in a deeper contraction in GDP.
This, the bank said could lead to 3.4 contraction, up from the 1.7 percent projected under the shorter duration and represents a decline of 7.3 percent from the previous projection before the outbreak.
It, therefore, said the combined loss due to the COVID-19 pandemic in Africa could range between $173.1 billion and $234.7 billion in 2020-2021.
Brent Crude Oil Maintains $43 Per Barrel Despite Surge in US Inventories
Brent Crude Oil Sustains Upsurge Despite Rising US Inventories
Brent crude oil, against which Nigerian oil is priced, sustained its upsurge at $43 per barrel on Wednesday during the London trading session despite a report showing a build-up in the U.S. crude inventories in the week ended July 3, 2020.
According to the U.S Energy Information Administration (EIA) report released on Tuesday, crude oil production in the U.S is expected to decline by just 70,000 barrels per day from the 670,000 bpd previously predicted to 600,000 bpd.
While this was below the projected decline, it also points to a build-up in U.S stockpiles and suggested that oil production from the world’s largest economy may not decline as previously projected in 2020.
“The EIA’s forecast of a lower decline in U.S. output was partially offset by its outlook for firm demand recovery, which limited losses in oil markets,” Hiroyuki Kikukawa, general manager of research at Nissan Securities said.
“Still, expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allies would taper oil output cuts from August and softer U.S. equities added to pressure,” he said.
The EIA projected that global oil demand will recover through the end of 2021 as demand was predicted to hit 101.1 million barrels per day in the fourth quarter of the year.
Illegal Withdrawals: Rep To Investigate NNPC, NLNG Over $1.05bn
Rep To Investigate NNPC, NLNG Over Illegal Withdrawal of $1.05bn from NLNG Account
The Nigerian House of Representatives has concluded plans to investigate illegal withdrawal of $1.05 billion from the account of the Nigerian Liquefied Natural Gas Limited (NLNG) by the Nigerian National Petroleum Corporation (NNPC).
The decision followed the adoption of a motion titled ‘Need to Investigate the Illegal Withdrawals from the NLNG Dividends Account by the Management of NNPC’ moved by the Minority Leader, Ndudi Elumelu, on Tuesday.
The House adopted the motion and mandated its Committee on Public Accounts to “invite the management of the NNPC as well as that of the NLNG, to conduct a thorough investigation on activities that have taken place on the dividends account and report back to the House in four weeks.”
Elumelu said, “The House is aware that the dividends from the NLNG are supposed to be paid into the Consolidated Revenue Funds account of the Federal Government and to be shared amongst the three tiers of government.
“The House is worried that the NNPC, which represents the government of Nigeria on the board of the NLNG, had unilaterally, without the required consultations with states and the mandatory appropriation from the National Assembly, illegally tampered with the funds at the NLNG dividends account to the tune of $1.05bn, thereby violating the nation’s appropriation law.
“The House is disturbed that there was no transparency in this extra-budgetary spending, as only the Group Managing Director and the corporation’s Chief Financial Officer had the knowledge of how the $1.05bn was spent.
“The House is concerned that there are no records showing the audit and recovery of accrued funds from the NLNG by the Office of the Auditor-General of the Federation, hence the need for a thorough investigation of the activities on the NLNG dividends account.”
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