Category: Energy

  • Can oil resumption in Ogoni happen without wars? (1)

    In one of Ogoni folktales, we are told that an old woman went to the forest to fetch firewood and almost used a snake as a rope. The story says after the old woman had gathered loose sticks; she needed to bind them together into a bunch.

    She looked for any kind of string to tie her harvest and in the process mistakenly picked a snake. The reptile with a swift wriggled itself from the old woman and positioned itself for an attack.

    The old woman was quick to appeal to the snake that she had thought it was a rope which could be used to tie firewood. The snake accepted the woman’s explanation but it went and told its peers that they should never be gentle to the extent any old woman use them to bind firewood.

    The morale of this story is that there was an era in which the Ogoni were so docile in Rivers state and Nigeria. But their neighbors misconstrued their gentility. Their inclination to serenity was seen as timidity.

    The Ogonis were once taken as a lot destined to operate only at the periphery of the socio-economic and political spheres of Nigeria. Theirs rights were trampled upon, their dues were denied, their dignity undermined, their opinions ignored and, their aspirations disrespected.

    It is against this backdrop that Ken Saro-Wiwa under the auspices of the Movement for the Survival for the Ogoni People (MOSOP) championed their cause. The Ogonis adopted the nonviolent approach in their struggle because they believe in negotiation.

    They wanted to use intellectual and superior arguments to persuade the authorities. Ogonis wanted other Nigerians to know that contrary to the perception of them; they possess the capacity to reason logically, coordinate their affairs and present their case.

    Ken Saro-Wiwa, the spokesperson of MOSOP possessed an ebullient persona, charismatic, articulate and persuasive in writing and speech. His personality and works made him an ideologue for the struggle of the Ogoni people.

    He was their hero, his voice; writings, speeches and activities carved a pattern and path for Ogoni to follow. Unfortunately, Nigeria refused to accede to the intellectual approach and nonviolent activism advanced by Ogonis.

    Violence was the only reply that Ogonis got. Firstly, the Ogoni 4 were killed in circumstances that remain mysterious to this day, yet, their murder was used as the alibi to hang the Ogoni 9.

    The manner in which the government and Shell reacted to the Ogoni agitation pushed them to the wall. The people are angry and frustrated. When they look across the border of their land they see that the same Nigeria which responded with violence and killed Ogoni leaders is busy negotiating with militia groups.

    There is tacit glorification of arms for the same cause which the Ogoni people advanced intellectually. When Ogonis travel to Port Harcourt, Warri, Yenegoa or Uyo; they are asked what has been the benefit of nonviolence.

    The seeming preference of armed struggle is tempting for younger people who lack the capacity to stay true to ideological persuasion and commitment. The narrative amongst the younger generation seems driven by influences and appeal for violence.

    Their own approach is propelled an undercurrent diametrically opposite to the approach of yesterday. The younger generation seems to have taken the decision never to be outdone and taken for a ride anymore.

    We are witnessing a situation whereby the consciousness which MOSOP inspired in Ogoni being rechanneled into a negative energy. Ogoni is undergoing a sociological warfare. This type of war is not conventional; the weaponry is mainly the infusion of dynamics that mutate the core element of social cohesion, collective direction and societal development.

    Sociological warfare is fought on three main fronts, namely; subtle incapacitation, strategic silencing and psychological demobilization.

    Will there be war in Ogoni?

    Recent events in Ogoniland are not the products of mere coincidence. That the apex organisation for Ogoni struggle is fractioned and factionalized into three units calls for concern. It equally forces one to raise eye brow that the KAGOTE, an umbrella structure for politicians from Ogoni is splintered into two.

    While people are still talking about the imbroglio of MOSOP and KAGOTE; the people has informed that there is new organization. Gbo Kabaari has some notable names and faces; who instead of repairing existing groups, they are working very strongly to merge the objectives of both MOSOP and KAGOTE.

    In the same way, people are confused over the neck deep involvement in partisan activities by the Nigerian Coordinators of Ogoni Solidarity Forum (OSF). On the sideline is an Ogoni Youth Advancement Network that is in court to force the HYPREP to account for some $10m so far released to them for the clean-up exercise.

    Besides all of these known groups, there are other translucent, undefined, sectional, foxy and nocturnal groups that also believe they must have their say in the affairs of Ogoni. There is a palpable tension across the land as different groups engage in mudslinging.

    It appears the contestation is either about who takes the lead in deciding the resumption of oil production, or, how best to oppose any group that wants to take the shine from others.

    Wherever you turn in Ogoni are rumors, fears and crises. There are abundance of different versions of stories of closed-doors meetings being held or planned to be held with the leadership of different communities and kingdoms. The latest talk in town is that any community or kingdom that consent to oil production would receive special protection and support.

    The insinuation is that that collective bargaining would be destroyed. People are beginning to talk in hush voices that the government will negotiate with Tai Kingdom, Eleme Kingdom, Gokhana Kingdom and/or Kpean Community individually and differently.

    While these rumors are spiraling Ogoni communities are experiencing chains of violent attacks almost on a daily basis. The people of Luawii lost 8 persons to gang attack one day after them; Zaakpon followed with almost a dozen killed.

    READ ALSO: Soldier, two NSCDC personnel killed in Ogoni by cultists, illegal oil bunkerers

    Zaakpon is still a ghost town for close to two months now. Gwara was next with another 4 persons killed in a string of attacks. In Bane and Bere, three prominent persons were beheaded, a chief, a retired policeman and a politician. The story is not better in Sogho and Kono-Boue where 20 and 32 persons respectively; were mowed down in single attacks.

    This article was already being concluded when social media platform started releasing images of another invasion of Bori, B-Dere and k-Dere communities. The story is that there latest round of violence is on account of a disagreement and clash between a gang that engages in oil bunkering and the patrol team stationed in Kira junction.

    One cannot deny that some Ogoni youths have also added the notorious activities of crude oil theft and, if one adds this to the mix; Ogoni is cocktail of highly inflammable elements.

    The attacks had been explained as cultists and politically related. If that is the truth, it is not wisdom for the government of President Muhammadu Buhari to add an issue that will further aggravate an already tense territory.

    The political higgledy-piggledy plus the litany of intractable and inexplicable arm violence, which has all elements of organised attacks; are landmines that can explode with the slightest ignition.

    The government should borrow a leaf from the book of South Sudan where friends and allies who fought against the northern oppression have turned bitter rivals because of crude oil. Ogoni people are not necessarily unreasonable.

    The 26- year resistance of oil production in their land is not aim at sabotaging the government. To the Ogoni people, non-resumption of oil drilling since 1993 is a “conciliatory trophy”. It is probably a token, but, it has both psychological and sociological value.

    Let the government approach their desire to resume oil operation in Ogoniland in a manner that provides a healing balm to the collective injuries inflicted on the psych of the Ogoni ethnic nationality.

    Barry Wuganaale is based in Cape Town, South Africa. He is Sustainable Development Consultant, a writer, the Senior Pastor of Altar of Liberation, Coordinator of Hands of Nehemiah International, CEO of Sirabari Investment Pty Limited, CEO Nigerian Transformation Movement, he is also an activists and Expert in Developmental Theology.

     

     

     

  • Why DisCos can’t recapitalise, by group

    The 11 power distribution companies (DisCos) cannot recapitalise due to inappropriate pricing regime in the sector, the Association of Electricity Distributors of Nigeria (ANED) Executive Director, Research and Operation, Mr Sunday Oduntan, has said.

    In an interview with The Nation in Lagos, he said only Edo and Ekiti state governments have criminalised energy theft, by ensuring that House of Assemblies passed the bill into law.

    He urged the DisCos management to report any staff member caught committing any crime to association for punishment.

    He advised other states to emulate Edo and Ekiti, adding that by doing so, ANED would not find it difficult to solve the problem.

    One kilowatt of electricity  (KWh) is N32, a development, which has resulted in a shortfall of N48 from N80, the expected price of the product.

    On calls by the Transmission Council of Nigeria(TCN) Chief Executive Officer, Mr Usman Mohammed, that the power firms should recapitalise, he said such calls were unnecessary, considering the illiquidity in the sub-sector.

    He stressed that it is impossible for the Discos to invest where they cannot recoup on time.

    Oduntan said:  “The references to recapitalisation are misleading and unrealistic, without taking into consideration the ability to recover the capital injection.

    ”In the absence of appropriate pricing of the product (electricity), the power distribution firms cannot recapitalise. The reason is because any capital the firms provide. They must be able to recover the cost of ploughing their capital into  the sector. How would they recover their cost, when their product is under-priced and undersold? The calls for recapitalisation are misleading, unwarranted and mischievous narratives by the TCN Boss.”

    According to him, the firms are increasingly find it difficult to perform well due to debts owed them.

    He noted that the firms are owed by many institutions, including the Ministries Departments and Agencies (MDAs), adding that the firms are yet to recover many of their debts.

    Besides poor pricing regime, he said the operators were battling payment for electricity.

    He said the problem is affecting  the sector’s growth.

    Also, Oduntan said the transmission segment of the industry is still not in good condition, despite the  the Federal Government’s effort to improve it.

    The grid, Oduntan said, is weak and has collapsed many times.

    “The grid needs to be strengthened.There is need for more investiments to improve the grid. That has always been there. Lots of equipment have been diaplidated and it is good to mention that the government of Preident Muhammadu Bauhari is trying its best to improve on TCN.’’ he added.

  • NEITI demands speedy action on PIGB, others

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has advised the National Assembly to expedite action on the passage of the Petroleum Industry Governance Bill (PIGB), the Petroleum Administration Bill and the Petroleum Fiscal Bill.

    NEITI said the bills, if passed into laws, would enable institutions to be more operative and  accountable.

    NEITI said: “The incoming National Assembly should look at all pending issues in terms of legislation, institutional, process and others as contained in the NEITI reports and use them as tools and oversight in their various equipment with both companies and government.”

    Its Director of Communication and Advocacy, Dr. Orji Ogbonaya, in an interwiew with The Nation, on phone, said there was the need to automate the process of data gathering and analsisis in the organisation.

    He said NEITI’s Executive Secretary, Mr Waziri Adio, would be a leading delegation to the Transparency Initiative (EITI) conference in Paris, France this week.

    Also to attend the conference is NEITI’Chairman, Prof Bolaji Onosanya.

  • Meters coming for consumers

    THERE is hope for electricity consumers to get meters as Metering Solution Manufacturing Service Limited(MSMSL) has offered to assist other meter asset providers (MAPs).

    The development, follows the inability of the Meter Assets Providers(MAP) recently approved by the Federal Government to get enough meters for consumers, that were under their jurisdictions.

    In line with the MAPs regulation issued by the Nigerian Electricity Regulatory Commission(NERC), MAPs are expected to partner the 11 power distribution companies (DisCos) to ensure seamless distribution to the consumers.

    Also, the regulations stated that MAPs must meet at least 30 per cent local content in meter supplies, an issue that has become a challenge in the sector.

    Signing a metering agreement with the Eko Electricity Distribution Company(EKEDC) in Lagos, a firm, Metering Solution ManufacturingService Limited(MSMSL), offered to end the metering problem in the country.

    Armese Power Solutions Chief Executive Officer Aslam Khorkar said the firm will plunge the gap in the production and supply of meters.

    Khorkar said: “ Our manufacturing subsidiary operating as Metering Manufacturing Solutions Manufaturing Service Limited(MSMSL) has the capacity to produce three million meters yearly on a multi-shift pattern.

  • Content Board, firm partner on capacity development

    Nigerian Content Development and Monitoring Board (NCDMB) and Geoscape are partnering to train young graduates to boost their skills and capacity.

    Geoscape Head of Contracts and Assets Morenike Jupi-Igbeka told The Nation at an event in Lagos that the training is mandatory.

    She said Geoscape is mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) Act to ensure that oil and gas operators are giving back to the economy by developing the economy, capacity and technology, which will combine to retain substantial value of contracts in-country.

    She said: “The trainees are graduates of engineering, geology, and physics – applied sciences generally. They are being trained so that they can fit into the oil and gas industry. The essence of the training is to reduce the number of expatriates that come into Nigeria to take up jobs from our locals.

    “According to NCDMB, any company that is doing a contract of certain threshold in the industry must set aside minimum of about two per cent of the contract sum for training to develop capacity. That is what we are doing because we have a contract we are doing for Chevron. Geoscape won a contract and we are mandated by the law and by Chevron who owns the project to set aside some proceeds of the contract to train some youths.

    “We were given a list of about 60 people. They wrote a test and we selected 22 to train for a year – six months for classroom and six months for hands-on-the-job.  According to the NOGICD law, they will be trained along the lines of what the project is about and to ensure that they get international certifications. We are not mandated to employ them if we don’t have space, but we have given them good training so they can choose to be entrepreneurs or work for anyone else at the end of their training. They will be well-equipped to do so.

    “Oftentimes, the excuse for bringing in expatriates is that Nigeria doesn’t have experts to do some jobs. This training will sharpen the trainees’ skills and enable them get the requisite certifications and practical knowledge to work in any part of the world.

    “This training is not just ordinary corporate social responsibility, it comes with a stipend. We give them (trainees) stipends of N120,000 per month and N1000 per day for lunch as well as tools to work with such as a brand new laptop. They will be trained in project management, safe handling of chemicals, health and safety management, entrepreneurial development, quality management, freight forwarding, Chartered Institute of Procurement and Supply (CIPS) certification and ICT certification, among others. We have about 12  training areas, such as quality management.

    ‘’This is the first time we are doing this kind of training with NCDMB but before now we have been training our staff exposing them to our technical partners and sending them abroad for training. We are oil and gas Service Company; we also do procurement and logistics services, engineering services, asset integrity and maintenance services.

    NCDMB Head of Capacity Development, Mrs Angela Okoro, represented the Executive Secretary of NCDMB, Simbi Wabote. Kehinde Adebowale of the Nigerian Content Department of Chevron Nigeria Limited represented her company.

  • Our scorecard, by NIPP

    The three tiers of government, in an effort to overcome challenges in the energy sector, and ensure socio-economic development, set up the Niger Delta Power Holding Company (NDPHC).

    Formed in 2005, as the vehicle to implement the National Integrated Power Project (NIPP), the NDPHC was designed for the 10 gas-fired power stations in the gas-producing states of the Niger Delta.

    Also, the NDPHC embarked on  gas infrastructural projects to  provide adequate gas to fire the power plants.

    The NDPHC and the National Integrated Power Projects have become success stories even more than envisaged by stakeholders. NIPP has become a pillar to Nigeria’s power sector stability.

     

    Intervention in gas supply and transmission

    The ND PHC has successfully intervened in the shortage of gas supply to the NIPP power stations in the Western Delta – Ogorode, Benin (Ihovbor), Omotosho and Olorunsogo. This has led to improved gas supply to these power stations. On the inadequate transmission capacity to evacuate power from the Eastern Delta plants, there was the quick completion of the 12 circuit 330KV Ikot-Ekpene-switching station and the dual circuit 330kV transmission lines from the Alaoji and Calabar power stations. There was also the completion of the first circuit (line 2) of the Ikot-Ekpene to Ugwuaji four circuits 330KV.

    On the inadequate gas pipeline infrastructure in the Eastern Delta (Alaoji and Calabar), there was the completion of the Northern Option Pipeline project (NOPL) by Total for gas supply to Alaoji Power Station and the completion of the Seven Energy dedicated pipeline from Uquo field to Calabar Power Station.

    Magboro and its environs in Ogun State, after 17 years of non-supply, was in 2017 delivered electric power through the intervention of the NDPHC. Having completed the Magboro connection project, electricity was supplied to Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo communities.

    Such has been the magnitude and the trend of the positive activities, including hundreds of distribution projects in various zones, working to optimise the about 3,000 megawatts (Mw) in the NIPP Plants to get to end users.

     

    Renewed commitment

    NDPHC Managing Director Mr. Chiedu Ugbo, said: “We are staying close to the projects and the contractors to know what their problems are. We don’t just sit back in our offices because we are not engaged to do that.

    “The NDPHC has embarked on the construction of additional 120 transmission stations and sub-stations and 10 critical power generation projects that will be transferred to the national grid. This will, ultimately, support power generation and supply in the country. It has been involved in the construction of distribution lines to increase distribution of electricity to even rural communities.

    “The NDPHC, when it sees the need, intervenes in critical areas to ensure stable electric supply. For instance, it recently completed a distribution line for Ibadan Electricity Distribution Company (DisCo) to consolidate the supply of electricity to communities in its franchise area. It provided a 33kv line and every community along that line will tap into it. It is doing unique intervention jobs like this because it believes Nigerians must have public power supply.”

     

    Completed distribution substations

    Some recently completed distribution substations and lines include 1x15MVA, 33/11kV Injection Substation in Tambuwal, Sokoto State; 1x15MVA, 33/11kV, 1X7.5MVA injection substation in Fegge, Anambra State; 1X7.5MVA, 33/11kV injection substationin Potiskum, Yobe State; 1X15MVA, 33/11kV injection substation, Gagi, Sokoto State; 1×7.5MVA, 33/11kV injection substation in Otta, Ogun State; 1X15MVA, 33/11kV injection substation, Angwan Dosa, Kaduna State; 2×7.5 MVA, 33/11kV injection substation, Lamingo, Plateau State; 2X15MVA, 33/11KV injection substation, Zaria Road, Jos; construction of 33kV line from Oke Aro Transmission Station to Mowe SubStation; 2x15MVA, 33/11kv injection substation, Asaba, Delta State; 1×7.5 MVA, 33/11kV injection substation, Saminaka, Kaduna State; 1X7.5kVMVA, 33/11kV injection substation, Iloko, Osun State; 1X15MVA, 33/11kV injection substation, Aminkanle, Lagos State;  1x15MVA, 33/11kv injection substation, Abule Taylor, Lagos State; 1x15MVA, 33/11kv injection substation, Elemoro, Lagos State; 1×7.5MVA, 33/11kv injection substation, Bauchi, Bauchi State; 1x15MVA, 33/11kv injection substation, Farfaru, Sokoto State; 1×7.5MVA, 33/11kv injection substation, Water Works Gusua, Zamfara State; 1×7.5MVA, 33/11kv injection substation, Otowhodo, Delta State and 1×7.5MVA, and 33/11kv injection substations in Ibusa, Delta State.

    Also recent intervention projects in distribution include 78 projects, over 544Km of 33kV Lines, over 130km of 11kV Lines, 199 distribution transformers including 100KVA, 200KVA, 300KVA, 500 KVA; 148MVA Injection Substation Capacity and 108MVA Distribution Transformers Capacity.

    The Ikot Abasi 330/132kv, 3x150MVA substation has been completed. The transmission substation, the largest of the NDPHC projects, is being designed as a power evacuation facility for power generated by the Ibom Power station, Alscon Power station as well as the Qua Iboe power plant of ExxonMobil in Eket.

    In 2016, NDPHC constructed a 330/132kv switching station in Ikot Epkene, Akwa Ibom State. It also constructed six injection distribution substations of various capacities in Akwa Ibom State along with completely Self-Protected transformers (CSP).

     

    Completed power stations, others

    The NDPHC has also completed a couple of projects in the generation. These include the 750 megawatts (Mw) Olorunsogo 11; 450Mw Sapele; 434Mw Geregu 11; 450Mw Omotosho 11; 450Mw Ihovbor; 450MW Alaoji;  563Mw Calabar and 225Mw Gbarain power stations.

    According to the data on its website, NDPHC has completed 2,194km of 330KV transmission lines and 809km of 132KV transmission lines; an increase of 46 per cent and 13 per cent over the pre-NIPP status of grid infrastructure. It has further constructed a total of 2,600km of 11kv and 1,700km of 33kv distribution lines for improving access to electricity. It is trite that there is heavy dependence on the NIPP plants in bringing electricity supply to Nigerians.

    In grid instability, NIPP plants provide about 265Mw of spinning reserves to facilitate grid responsiveness during disturbances on the transmission network. Spinning reserve is practised all over the world. The NDPHC assets are the backbone of Nigeria’s power infrastructure.

    Therefore, a transparent privatisation for credible international firms will push the NIPP across the finishing line. Nigeria’s installed capacity (nationwide) in generation projects pre-NIPP was 5, 329Mw, but by 2006, it had risen 8,440Mw and post-NIPP it is 13,140Mw, an increase of 56 per cent.

    In transmission projects, Nigeria’s 330kV lines pre-NIPP was 4,495km but by 2006, it increased to 4,738km, and post-NIPP is 6,932km, an increase of 46 per cent.

    Nigeria’s 132kV lines pre-NIPP was 5,430km but by 2006, it went up to 6,227km, and post-NIPP it is 7,036km, an increase of 13 per cent.

    Nigeria’s 132/33kV transformer capacity pre-NIPP was 5,700MVA and by 2006, it was 7,805MVA, and post-NIPP is 11,118MVA, an increase of             42 per cent.

    Nigeria’s 330/132kV transformer capacity pre-NIPP was 5,300MVA, which went up to 6,008MVA by 2006, and post-NIPP, it is 11,590MVA, an increase of 93 per cent.

    In national distribution projects, 33kV transmission lines at 2006 was 45,252km, post-NIPP is 47,538km, an increase of five per cent; 11kV transmission lines as at 2006 was 31,973km but post-NIPP, it is 36,648km, an increase of 15 per cent.

    0.415kV transmission lines as at 2006 was 232,862km, post-NIPP it is 245,905km, an increase of six per cent and 33/11kV substations at 2006 was 8,148MVA, post-NIPP it is 11,649MVA, an increase of 43 per cent.

    33kV & 11/0.415kV substations as at 2006, was 11,810MVA, and post NIPP it is 14,878MVA reflecting an increase of 26 per cent; 33kV & 11/0.415kV substations as at 2006 was 32,000, post-NIPP is 84,170, an increase of 163 per cent. Also, 33kV/11kV substations as at 2006 were 1,048, but post-NIPP it is 1,311, an increase of 25 per cent.

     

    Need to commence second phase of NIPP

    In the second phase of NIPP, the NDPHC will build hydro power plants in the North and complete transmission projects carried over from first phase. It will also launch into power generation from alternative renewable sources.

    According to the company, millions of Nigerians daily enjoy power supply, but are not aware of the tremendous efforts put in by various governmental bodies. Though the national energy demand is huge and 100 per cent supply is yet to be met, there are federal agencies working for Nigerians. Some of the improvement in public power supply can be attributed to the NDPHC executing its mandate to add new capacity to public power supply.

    “It is with all earnestness, that this charge has been religiously carried out. The records are in the public domain. Nigerians have also come to appreciate the challenges the NDPHC faced through the years in its inability to deliver its mandate. Some of those challenges still exist. The vision of the NDPHC was clear, but it needed men to drive its corporate mission, to surmount challenges. In taking over management of the NDPHC, the Ugbo-led team hit the ground running.

    “To avoid pitfalls, it introduced international best practices, set clear its bearings and tried to avoid needless controversies and distractions. Like a ship sailing in dangerous waters, it took precautions; it avoided tainted men with baggage; avoided the unseen shoals and rocky reefs of quacks and racketeers. The object of any public service corporation management should be the satisfaction of the people.  The NDPHC was charged to give much attention to more concentrated power infrastructural development to delivering Nigerians stable electric power. Armed with this directive, it has worked to be above board and to ensure its focus is not abridged. The success of the NDPHC will inevitably raise the living standard of all Nigerians,” the company said.

    Ugbo said the success story of the NDPHC has been from the support of the government of Nigeria and its workers who have always been result-oriented and driven with a passion to help the populace. Their job is not a luxury. It comes with a back-breaking schedule of field activities.

    Nigerians need stable electric supply. This will bring joy to their homes and their choice of economic activities will be boosted as electric supply turns the wheels of most of our lives. This has been the major pre-occupation of the NDPHC, continuing in its march to attain stable electric supply for Nigerians. It is using every available means to aid the generation, transmission and distribution of power supply on the principle of best services. The character of the developments, demonstrate that its policy is dominated by public interest rather than private interest.

  • ‘Nigeria’s Ghana’s mining sectors unimpressive’

    Nigeria, Ghana and other countries globally are recording abysmal performance in mining and allied areas, PricewaterCoopers has said.

    In a report dated 2019 and made available to The Nation, the consulting firm chided Nigeria and other countries for churning out  poor performance in the mining sector in recent times.

    The report said 40 biggest mining companies declared a dividend of $43 billion in 2018.

    It said forecast indicated weaker prices for coal and copper, while Iron ore and others showed less than average prices.

    The report said: ‘’ Investors are not impressed by the records of the 40 biggest mining firms in the world, due to the poor showing of the sector in 2018. Though the total market capitalisation of the mining sector rose sharply in the first quarter of 2018, the sector recorded eight per cent in 2019. In spite of the strong operating performance of the world’s top miners, there is still more room for improvement for mining countries’’

    The report added: ‘’ Investors and other stakeholders have concerns about the mining industry’s ability to respond to the risk and uncertainties of a changing world. The concerns are in the areas of emission of resources and investments in mining technology, among others. However, the mining sector has opportunities to adapt to the growing and changing expectations of stakeholders.

    In 2018 the top 40 paid down $15.5 billion in net borrowings, resulting in the gearing position dropping below the 10-year average.

    All liquidity and solvency ratios improved during the year, leaving the world’s largest miners with strong balance sheets and cash flows.

    In line with expectations, capital expenditures started to rise again, albeit from historically low levels. The 13 percent increase over the previous year to $57 billion, suggests that miners are  proceeding cautiously; approximately half of the capital expenditure in 2018 was for ongoing projects.

    Capital expenditure on coal was consistent, year-on-year, and we expect miners will maintain current production levels while the coal price remains high.

    An 11per cent lift in operating cash flows has allowed the top 40 to increase shareholder distributions in 2018 to a record $43 billion. Dividend yield for the year was 5.5 per cent.

    There was a notable jump in share buybacks to $15 billion, up from $4 billion in 2017. Rio Tinto and BHP accounted for 70 per cent of the total activity, returning proceeds of non-core disposals to shareholders.

    In 2018, the share of value distributed to governments in the form of direct taxes and royalties increased from 19 percent to 21percent. Employees received 22 percent of the total value distribution from the top 40.

    Andries Rossouw, added “Mining along with oil & gas, distributes a greater share of its value to governments than almost any other sector.

    “A number of countries have also implemented carbon taxes and/or emissions trading schemes.”

    Of  25 countries in which the top 40 operate, 13 countries have already implemented these taxes/schemes and nine countries are actively considering implementation.

    After several years of sluggish activity, M&A picked up significantly in 2018. The value of announced transactions rose 137 percent to $30 billion, driven by a flurry of activities in the gold sector, the on-going push by miners to optimise their portfolios, and momentum to acquire energy metals projects.

    Rossouw comments further: “This renewed appetite for large transactions looks as though it will continue throughout 2019, with the deal value announced  30 April 30, 2019 already surpassing the value of all the announced deals in 2017.

    The gold sector is experiencing a renewed round of consolidation, driven by a shrinking pipeline of projects, fewer new high-grade discoveries and a lack of funding for junior developments.

    Gold deals increased from eight percent of total top 40 deal value in 2017 to 25 percent in 2018, and this year are tracking at close to 95percent of deals as at the end of April.

    “Gold mining companies need to be rigorous and disciplined with prospective deals. With substantially all the value generated by mergers and acquisitions between 2005 and 2012 now lost, investors are still reeling from past transactions where purchasers overpaid for assets,” Kotzé comments.

  • Blackout: Ijebu-Ode community seeks prompt repair of transformer

    Residents of Odi-Olowo, Ogutuga, Ososa and Oke-Ola areas of Ijebu Ode have alleged threats to their lives over perennial blackout that have lasted over 10 weeks.

    They are, therefore, urging the Ibadan Electricity Distribution Company (IBEDC) Plc to come to their rescue by urgently repairing the only transformer servicing the area.

    The appeal was contained in a petition dated April 26, 2019 and sent to the IBEDC Managing Director, Mr. John Donnachie.

    The petition was signed on behalf of the residents by the Oloritun, Ikanigbo Mararun Community, Otunba Abdul-Fatai Sarumi.

    “Our lives, health, work and security of our lives and property are all under threat now due to this sustained power outage in our area.

    “Water which sustains life has become scarce. Our source of water is from boreholes powered by electricity in our homes and some commercial water vendors in the community. Many of these boreholes have been damaged as a result of heavy dependence of generators leading to inadequate water supply.

    Read Also: Ode to my Ijebu-Ode

    “Our artisans whose jobs depend on power are out of business. The peace of our community is threatened. Water crisis looms, unemployment crisis looms, security crisis looms”, they lamented.

    The community said when the problem started about three months ago, they promptly informed the IBEDC office in Ijebu Ode about the development but that nothing was done to get the transformer working again.

    They said they decided to cry out because the residents could not muster enough fund to buy a new generator.

    “We are using this medium to crave for your quick intervention to end the hardship which lack of power has brought upon our lives and for you to end our misery and avert looming epidemic that may arise due to absence of portable drinking water and associated crisis”, the petition stated.

    IBEDC’s spokesman, Mrs Angela Adekunle, however, said transformer serving the Ita-marun communities was tested and confirmed bad on April 25, 2019 by our engineers. The report was thereafter forwarded to the headquarters for replacement.

    The community wrote to report the faulty transformer and requested for replacement on the 29th of April, 2019. The team that brought the letter was addressed to be patient as the matter has been reported to the headquarters.

    IBEDC has backlogs of request for transformers which is being treated on a first come first served basis. The faulty transformer of the community is noted by the company and will be replaced as soon as the consignment order for the request arrives.

    We, however, apologise for all inconveniences this might cause our esteemed customers in this community with the assurance of power restoration immediately we get delivery of the transformers.

  • Bumpy road to metering in Nigeria

    With six weeks into the Federal Government’s order to meter asset providers (MAPs) to provide meters to more than four million electricity consumers in the country, many Nigerians are yet to either fathom the rationale behind MAPs existence or get metered, writes AKINOLA AJIBADE.

    Since May 1, 2019, when meter asset providers(MAPs) began their operation to provide meters  to 4,606,106  electricity consumers  and further reduce the metering gap in the country, their operation has remained sketchy. The reasons are many. First, many households are ignorant of the process of procuring meters for use under the new metering arrangements put in place by the government in April 2018. This may be due to inability of the Nigerian Electricity Regulatory Commission(NERC) to throw more light on the new metering scheme introduced by the Federal Government.

    Secondly, not many of the meter asset providers are known to the  consumers a development which has made it difficult for them to know the exact time they are going to be provided meters. This, is coupled with the fact that the mode of payment for the meters by the consumers, has remained unclear.

    Although firms, including Abuja Electricity Power Distribution Company, Ikeja Electric( formerly Ikeja Electricity Distribution Company(IKEDC), Ibadan Electricity Distribution Company(IBEDC), Benin Electricity Distribution Company(IBEDC) and a few others, are believed to have rolled out meters to some areas in their jurisdictions, in conjunction with the MAPs they partnered in order to ensure the success of the scheme, the issue of metering in the Nigerian power sector is still a  problem.

    The Nation’s investigation revealed that consumers are in a fix as regards the ability of the DisCos and MAPs to successfully meter the country, coupled with the fact   that power firms are complaining of lack of funds for operation.

    All the six generation companies (GenCos) and the eleven  power distribution companies (DisCos) that came out of the  defunct Power Holding Company of Nigeria (PHCN) during the privatisation of the power sector in 2013, are grappling with debts estimated to be over N1trillion. This has made many to conclude that metering the country by the power firms and their partners (meter asset providers) is a far fetched objective. A visit to some business units owned by Ikeja Electric and Eko DisCo said it all.

    At the Ikeja Electric Business Units in Dopemu, Agege, Idimu, Ikotun and others within the metropolis, many customers in an interview with The Nation, disagreed with the plans by the Federal Government, to solve metering problems.

    A customer, Segun  Ojo, said neither the government nor the meter asset providers approved bv the Federal Government have shown enough sincerity on the issue.

    Ojo, a mechanical engineer, said the government has on two separate occasions delayed the take-off of the new metering scheme. He claimed that the development  has made Nigerians not to have enough confidence in the government on the issue.

    Ojo, a resident of  Igbogbo in Ikorodu, a Lagos suburb, asked: ‘’How do we explain a situation whereby electricty consumers lacked adequate information about the meter asset providers assigned to them? How do we explain a situation, whereby the financial and technical capability of the firms that were approved to serve as meter asset providers remain unkown?

    Ojo said he only knew that he was under Ikeja Electric(IK) jurisdiction as he gets his monthly electricity bills from the  company.

    ‘’I do not know the meter asset providers, that partnered Ikeja Electric in order to assist the firm to meter its customers.  So also many customers across the country.  Many customers are yet o find out their MAPs, not to talk of mounting pressure on them to hasten the process of providing meter. How do we explain a situation whereby electricty consumers lacked adequate information about the meter asset providers assigned for them? How do we explain a situation, whereby the financial and technical capability of the firms that were approved to serve as meter asset providers remain unkowns for them,” he said.

    However,  many firms have risen in defence of the scheme. The Electricity Meter Manufacturers Association of Nigeria(EMMAN) Executive Secretary, Mr Muhideen Ibrahim, said the names of the  meter asset providers approved by the government and their partners are in the public domain.  According to him, their numbers, duties and partners, which are mainly the eleven  DisCos are published in the newspapers.

    The firms, Muhideen said, have demonstrated the ability to provide meters to customers nationwide, by bringing more meters into the country.  He said his members have doubled their production in order to ensure that the new metering scheme succeeds, adding that their capacity to do the job is not in doubt.

    On funding, he said many of the meter asset providers have discussed with their banks, with a view to get enough facility for operation.

    Also, Momas Electricity Meter Manufacturing Company Limited Managing Director, Mr Kola Balogun, said the metering arrangement, which gave the MAPs the nod to supply meters to Nigerians and further reduce the metering gap of 4.1 million customers, would help in reducing metering gap in the country.

    He said: “The most important thing is that the metering gap would be very small as years roll by. This is good for the sector, which has battled metering problems for decades. The meter manufacturers, suppliers and importers of the product are better for it. The reason is because the idea would help in creating employment opportunities for the teeming population.’’

    He advised Nigerians to think less of the problems faced by the metering scheme, adding that now that the sector has enough potential to make the scheme work.

    Consumers, Balogun said, can pay for the pre-paid meter willingly and can as well choose to spread the payment over a period of time.

    The Ikeja Electric spokesman, Mr Felix Ofolue, said many people are yet to be metered because there is liquidity problem in the sector. Based on this, it remains to be seen whether consumers are going to be metered now or not.

  • Nuclear Energy: Fed Govt must rid Nigeria of insurgency

    Nigeria must rid itself of insurgency and other issues that are threatening its peace and tranquility, if it wants to produce nuclear energy for growth, Chief Executive Officer, Century Power Generation Nigeria Limited, Mr Chukwueloka Umeh, has said.

    In a chat with The Nation on phone at the weekend, he said there was nothing wrong with plans by the Federal Government to generate nuclear electricity, adding that countries in Africa and beyond are doing the samething.

    Umeh said: Production of nuclear energy by Nigeria is a good step in the right direction. However, the country must not lose sight of the fact it has to deal with insurgency and other acts of terrorism that are gradually creeping into the country. The reason is because nuclear energy is  produced with high technology; that must be managed well at all times.”

    He continued: ‘’ You would recall that earthquake and tsunami struck in  Eastern Japan on March 11, 2011. This caused  a serious accident at the Fukushima Dai-ichi nuclear power plant on the northeastern coast of Japan. The earthquake cut off external power to the reactors.Tsunami, which has reached levels more than twice as high as the plant was designed to withstand, disabled backup diesel generators, crippling the reactor cooling systems.

    He added that: ‘’As a result of this, battery power was quickly exhausted, and overheating fuel in the plant’s operating reactor cores led to hydrogen explosions that severely damaged three of the reactor’s buildings. Fuel in three of the reactor cores melted, and radiation released from the damaged reactors contaminated a wide area surrounding the plant and forced the evacuation of nearly half a million residents.

    He said China and other countries have had a fair share of the accident caused by explosion of nuclear technology.

    Nigeria, he said, is battling with Boko Haram and other terrorist activities, adding that any attempt by such groups to tamper with the nuclear technologies can sweep off, for instance,  a place like Lagos.

    Umeh said in countries where nuclear power plants have been built to produce  thousands of electricity megawatts (Mw) needed to bring about socio-economic growth, technologies that can withstand the explosions are provided.

    ‘’That is the more reason the Federal Government must try and put an end to Boko haram among other activities that are related to insurgency, if it wants Nigeria to benefit from the  production of nuclear energy. You can imagine the number of people that would die, the properties that would be lost and other losses in the event that the technologies that produce nuclear energy are tampered with by some disgruntled elements.’’ he said.