Connect with us

Business

Manufacturers Keen to Tap Idle Electricity as Generation Wobbles

Published

on

The Minister of Power, Works and Housing, Babatunde Fashola
  • Manufacturers Keen to Tap Idle Electricity as Generation Wobbles

Manufacturers in the country have expressed the eagerness to tap the unutilised electricity being produced by the nation’s power plants as the available power generation continues to wobble.

The latest data obtained from the Federal Ministry of Power, Works and Housing on Wednesday showed that the unutilised generation capacity stood at 3,825.7 megawatts as of 6am on July 2, 2018, with 2,341MW due to gas constraints; 151.6MW, line constraints; 1,173.1, frequency management occasioned by distribution companies’ demand, and 160MW as a result of water management issue.

Total power generation fell to 2,979.9MW as of 6am on July 2 from 3,122.5MW the previous day and 3,992.60MW on June 15.

The nation’s power grid has recorded seven total collapses and one partial collapse this year, the data showed.

Nigeria Electricity System Operator put the nation’s installed generation capacity at 11,165.40MW; available capacity at 7,139.60MW; current transmission capacity at 7,000MW; network operational capacity at 5,500MW, and the peak generation ever attained at 5,222.3MW.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, on May 15, 2017, declared that four categories of eligible power consumers were permitted to purchase electricity directly from the generation companies other than the Discos.

The President, Manufacturers Association of Nigeria, Dr. Frank Jacobs, noted that the Nigerian Electricity Regulatory Commission was “quite businesslike in crafting the Eligible Customer Regulations in November 2017”.

He said the minister, at a stakeholders’ meeting on February 13, 2018 in Abuja, affirmed that within the framework of the Eligible Customer Regulations, stranded 2,000MW electric power was available for MAN members to utilise.

According to him, manufacturers in the country currently self-generate as much as 13,000MW through alternative sources of energy in order to stay afloat.

“Members of MAN expended over N129bn on alternative energy generation in 2016 and the cost of alternative electricity generation alone constitutes about 40 per cent of production cost. With such high costs, made-in-Nigeria products will hardly be competitive.”

Jacobs, who commended the government’s efforts at addressing the challenge of inadequate electricity supply at an interactive session on the Eligible Customer Regulations in Lagos, said, “A cursory look at the regulation revealed the existence of some implementation conditions hindering interested manufacturing concerns and other stakeholders on the electricity supply value chain from exploring the perceived benefits therein.”

The Vice President, North West Zone, MAN, Mr. Ibrahim Usman, said, “So far, the government has done very well to ensure that there is a lot of electricity, but a lot of it is not being consumed due to challenges of the transmission network. We (manufacturers) must have electricity that is reliable, constant and at a good price.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

Business

IATA Says Nigerian Airlines Loses $2.09bn in April and June

Published

on

iata

Airlines in Nigeria Loses $2.09 Billion in April and June

The International Air Transport Association (IATA) has estimated that Nigerian airlines lost about $2.09 billion in the month of April and June due to COVID-19 lockdown.

In its report titled ‘Quarantine measures threaten aviation restart in Africa and the Middle East,’ IATA stated that the aviation sector in Africa and the Middle East was the worst-hit.

According to the report, the aviation sector in the two regions provides over 8.6 million direct and indirect jobs.

While the report did not provide data for the month of May, it stated that the number of Nigerian passengers declined by 4.7 million in April and 5.32 million in June when compared with the same period of 2019.

Similarly, the report said 125,400 jobs were at risk in April and 139,500 jobs were at risk in the month of June.

Muhammad Albakri, the Regional Vice President for Africa and the Middle East, IATA, said governments in Africa and the Middle East must devise alternative methods to the current quarantine measures in place, saying the two regions have the highest number of government-imposed quarantine measures on arriving passengers.

He said, “It is critical that AME governments implement alternatives to quarantine measures. AME has the highest number of countries in the world with government-imposed quarantine measures on arriving passengers.

“The region is effectively in complete lockdown with the travel and tourism sector shuttered. This is detrimental in a region where 8.6 million people depend on aviation for their livelihoods.”

Continue Reading

Business

Oando Partners Oilserv to Build Ajaokuta-Kaduna Portion of AKK Project

Published

on

wale-tinubu

Oando, Oilserv to Construct Ajaokuta-Kaduna Portion of AKK Project

Oando Plc has partnered Oilserve Limited to construct a 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the $2.8 billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project, the AKK Pipeline.

According to a statement released by Oando through the Nigerian Stock Exchange, the construction of the AKK Pipeline Project approved in 2018 has commenced on Tuesday, June 30, 2020.

The statement reads “Oando PLC (referred to as “Oando” or the “the Company”), is pleased to announce to the Company’s attendance as a consortium partner at the flag-off ceremony for the construction of the $2.8billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project (the “AKK Pipeline”), by the President of the Federal Republic of Nigeria, Muhammadu Buhari GCFR on Tuesday, June 30, 2020.

“The AKK Pipeline Project, championed by two consortia comprising select indigenous and international companies commenced in 2013 with the announcement for tenders by the Nigerian National Petroleum Corporation (NNPC). In April 2018, the Company announced that following an extensive due diligence and bid process, the Oilserv-Oando PLC consortium was awarded the Engineering, Procurement, and Construction (EPC) mandate for segment 1, accounting for 40” by 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the AKK Pipeline Project by the NNPC.”

Speaking on the project, Jubril Adewale Tinubu, the Group Chief Executive, Oando PLC, said: “As a proudly Nigerian company, focused on driving indigenous participation we have always been proponents of public private partnership in accelerating the actualization of the nation’s goals.

“We have aspired to play an integral role in the building out of the National Gas Infrastructure and Pipeline Grid, as evidenced by our efforts in 2009, post the Nigerian Gas Masterplan when we participated in the unrealized Calabar- Ajaokuta- Abuja-Kano (CAAK) line.

“We have developed strategic partnerships with both private sector players and the NNPC in bringing sustainable solutions to spur the development of the country via our numerous gas development and distribution projects. We commend the NNPC for spearheading projects that will soften the headwinds occasioned by the global COVID-19 pandemic.

“We are proud to be active participants in driving the country’s industrialization and actualization of the Gas Master Plan which will undoubtedly create employment opportunities and ultimately generate as well as enhance value for the nation.”

Continue Reading

Business

Ethiopian Airlines Sustain Profitability Despite COVID-19

Published

on

Ethiopian AIrlines

Despite COVID-19, Ethiopian Airlines Stay Afloat

Africa’s largest airline, Ethiopian Airlines, manages to stay afloat during the peak of COVID-19 pandemic, Tewolde Gebre-Mariam, the airline CEO, stated.

The Chief Executive Officer said “We may not be as profitable as we expected but we registered some profit. The first half of the year was good and the cargo business has also done very well.”

While the airline is expected to be down by almost $1 billion in ticket sales in the current year ending July 7, it generated enough revenue from the transportation of goods to finance monthly fixed payments between $120 million to $150 million for loans, aircraft leases, salaries and rentals.

According to Gebre-Mariam, the airline is still flying about 40 charter repatriations per week despite other flights completely grounded.

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending