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NERC Issues 40MW Licence as Power Generation Sheds 1,431MW

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  • NERC Issues 40MW Licence as Power Generation Sheds 1,431MW

In a bid to further grow the country’s power generation, the Nigerian Electricity Regulatory Commission has issued a licence to Green Energy International Limited for the generation of 40 megawatts of electricity.

GEIL, which is the operator of the Otakikpo marginal field, received NERC’s embedded power generation licence for the 40MW plant just as the total quantum of electricity on the country’s power grid dropped by 1,431.1MW within two days.

Latest industry data obtained from the Federal Ministry of Power, Works and Housing on Wednesday showed that grid power dropped from a peak of 4,804.1MW on June 10, 2019, to a low of 3,373MW the next day.

The Director, Corporate Affairs, GEIL, Olusegun Ilori, said the licence that was issued Green Energy by NERCwas part of the measures aimed at growing the country’s power generation, adding that the licence was sequel to the company’s application for it.

He said the licence would enable the company to utilise its gas resources for power generation as part of its commitment to the Federal Government to use the gas from the marginal field for power and domestic gas projects.

The company, which had earlier secured a generation licence for 12MW, increased its projected power generation capacity to 40MW following the increase in associated gas that would be produced from enhanced oil production during the second phase of the Otakikpo field.

Ilori stated that in addition to providing electricity for the company’s field power requirements and the host communities, the 40MW power plant would provide power to the Otakikpo Industrial Park.

“The park will be sited in Ikuru town in Andoni Local Government Area, Rivers State and it’s being promoted by Atlantic Industrial Park Limited,” he said.

He outlined some of the projects to be located at the industrial park include an onshore oil terminal, a 5,000 barrels per day modular refinery and a mini-liquified natural gas plant that would serve the domestic market.

The Chairman, GEIL, Prof Anthony Adegbulugbe, commended the power sector regulator for approving the licence and stated that it underscored the government’s determination to increase access to electricity for the economic development of Niger Delta.

On power generation on the national grid, it was further observed that the lowest quantum of electricity so far recorded in June this year was 2,389.9MW and this figure was posted on June 7.

In their latest performance report about the sector, the Advisory Power Team in the Office of the Vice-President explained that gas constraint remained the major challenge to power generation across the country.

The APT said, “On June 10, 2019, average energy sent out was 3,680MWH/Hour, up by 179.42MWH/Hour from the previous day. 1,501MW was not generated due to unavailability of gas. 110MW was not generated due to unavailability of transmission infrastructure, while 758.8MW was not generated due to high frequency resulting from the unavailability of distribution infrastructure. 425MW was recorded as losses due to water management.”

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 experience in the global financial markets.

Economy

FG Launches New N25bn Youth Fund to Address Some of the Concerns Raised by #EndSARS Protesters

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Zainab Ahmed

FG Introduces N25 Billion Youth Fund

The Federal Government has introduced a new N25 billion youth fund to address some of the issues raised by the Nigerian youths who took to the street to demand good governance, among others.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this at a stakeholder meeting held with the Deputy Governor of Kaduna State, Dr. Hadiza Balarabe, in Kaduna.

Ahmed said the fund would be increased from N25 billion to N75 billion within three years to ensure new job creation for the youths.

The meeting was constituted as part of the directive of President Muhammadu Buhari to ministers and governors to dialogue with stakeholders on some of the concerns raised by #EndSARS protesters.

The finance minister said the aim was to support the Nigerian youths to actualise their innovative and entrepreneurial minds in business and general development of the nation.

On her part, Balarabe said the essence of the meeting was to brainstorm on how to tackle security challenges faced during the #EndSARS protests.

Dr Mohammad Abubakar, the Minister of Environment, who was also at the meeting, reiterated Federal Government’s commitment to people-friendly policies and reforms.

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Economy

Kwara to Support Looted Businesses With N500 Million

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Kwara State to Fund Looted Businesses With N500 Million

Kwara State has joined the list of states supporting businesses that were looted and vandalised by hoodlums masquerading as #EndSARS protesters.

Mr. AbdulRahman AbdulRazaq, the Governor of Kwara State, during a visit to the Kwara Mall and Agro Mall on Saturday said the state will support affected businesses with N500 million, adding that the funding is to reduce the negative impact of the looting on the state economy.

On Sunday, in a statement issued by the governor’s Chief Press Secretary, Rafiu Ajakaye, the Governor said the vandalism and looting may bring several businesses to their knees and lead to massive job loss with an increase in poverty rate.

He said, in order to avoid this, “We are setting up a N500 million fund for those that were affected to access.”

“The application form is live and active on the state government’s website and can now be filled by interested parties. We are going to get them back as soon as possible,” he assured.

The governor, who described the situation as a mindless looting of people’s businesses, said there can be no justification for such criminal behavour in our society and commiserated with affected owners.

Speaking on accusation of hoarding of palliatives, the Governor said the palliatives were donated by Private sector led CACOVID to specific vulnerable households and were being distributed gradually across the state.

What happened was bareface stealing and some people are playing politics with it. This is not the time to play politics. It is a time for all hands to be on deck. It is not just Kwara they wanted to burn down. They wanted to burn the whole country down. I urge all of us to stand up and resist that,” he said.

“We engaged the #EndSARS youth in Kwara and it worked out for us. They were not violent. They had a five-point agenda which the federal government has agreed to and has started implementing. In Kwara State, we have also set up a judicial panel of inquiry to look into the allegation of Police abuse. I also visited Police barracks to see how we can improve the welfare of the Police in the state.

“While the hoodlums were looting (on Friday), I was holding a meeting with executives and members of the National Association of Kwara State Students and National Association of Nigeria Students, Kwara axis. It shows students and youths were not part of the looting. Those involved were just hoodlums and thieves,” he said.

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Economy

IMF to Review Nigeria’s Growth Forecast Amid Destruction of Businesses, Properties

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IMF Says it May Review Nigeria’s Growth  Amid Recent Development in the Country

Following the destruction of businesses and properties that trailed the #EndSARS protest, the International Monetary Fund (IMF) has said it may review the nation’s growth forecast in view of the new development in the country.

Abebe Selassie, the Director, African Department, International Monetary Fund, made the statement while responding to questions during a virtual IMF press conference on the economic outlook of Sub-Saharan Africa on Thursday.

According to him, the protest is difficult given that Lagos is a very important economic hub and contributes to the overall Nigeria activities.

Selassie said, “On the growth projections in Nigeria, I mean, these protests happened of course, after we had closed, after the period where the data we looked at in making the growth projections for this economic outlook.

“And much will depend really on how these protests evolve.

“Lagos of course, is a very important economic hub and contributes quite a bit of economic activity to overall Nigeria activities.

“So, if these persist and are showing significant effects on economic data, we will internalise them in due course.”

He further explained that the nation’s economy had been a difficult one in the last four years ever since oil prices plunged in 2015-16.

He said, “I think this is exactly why we have been on the record in Nigeria about how really critical it is to get all of the policy induced barriers out of the way to facilitate stronger economic growth.

“For the government to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential.

“So, I think that development agenda that Nigeria has, I think, has to be tackled with gusto and vigor so that the millions of jobs that the country needs can be created.”

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