The Nation Newspaper

Category: Energy

  • ‘100% renewable energy achievable in West Africa by 2050’

    Nigeria and other members of the Economic Community of West African States (ECOWAS) can adopt  renewable energy 100 per cent by 2050,  a report by the Energy Watch Group (EWG) and the Lappeenranta-Lahti University of Technology (LUT) has said.

    The report entitled: “Global energy system based on 100 per cent renewable energy”formed the crux of a conference organised by Power Utility Week and Power Green Africa in Cape Town, South Africa.

    The event was sponsored by ROSATOM Central Africa and Southern Africa, EWG, a German-based research firm, and LUT, a Finland-owned institution.

    The report, EWG and LUT, said would form a blueprint for transiting from fossil fuel to renewable energy  in the West African sub-region and to make its countries understand the  task of boosting production of solar and other renewable energy in the next 30 years.

    Sub-Sahara Africa, the report, said could lower renewable energy cost, provide health care and create jobs, it adopts renewable 100 per cent.

    The report said: “The energy sector in Sub-Saharan Africa can become 100 per cent renewable by 2050, a development, which would bring about lower energy costs, improve better health services, environment and the number of direct energy jobs from 1.2milliion to five million in the region. An accelerated scaling of wind energy and a decentralised solar Photovoltaic (PV) energy can,  in combination with electrification of transport, heating and deployment of batteries and other storage technologies, result in a phase-out of fossil fuels in Africa within 2050.’’

    But, the founder, Change Partners International, Mr Arachukwu  Okafor, said the issue of  providing renewable energy 100 per cent by West African countries depend on some factors.

    He said the problems differ from one country to another, arguing that the problems facing Nigeria’s power sector might be different from Ghana.

    Okafor, an energy expert and a participant at the conference, said for this reason it is not possible to apply one method to solve all the energy problems.

    Okafor said: “While some countries have technological problems, the problems in Nigeria are not. I can tell you that the problems facing the sector in Nigeria are political and not technological.

    ‘’Since 1961, successive Nigerian governments have been saying that the country would not experience blackout again. So far, the country is yet to proffer solution to its energy problems. If, for instance, Nigeria is given $100billion to solve the problems facing its electricity market, the money may not be enough to solve the problems. The challenges in the  power sector, ditto its market, are enormous and require analysis.”

    He said it was not possible to order producers of renewable energy to charge tariffs that are equal to the ones charged by firms that are producing gird electricity.

    Also, the Renewable Energy Association of Nigeria (REAN) President, Mr Segun Adaju, said the report was timely and encouraging. He said it is high time Nigeria and other countries in Africa took proactive steps to solve their energy crises.

    Adaju, also the Chief Executive officer, Consistent Energy Limited, urged the Federal Government to speed up the process of producing renewable energy, with a view to meet the power needs of more than 170 million Nigeria’s population.  He said funding is required to produce renewable energies 100 per cent in Nigeria and other countries in West Africa.

    “The Federal Government targets 30 per cent renewable by year 2030, while the Renewable Energy Association of Nigeria is targeting 40 per cent the same year. 100 per cent renewable by 2050 is dependent on many factors including access to finance,” he added.

  • OVH Energy unveils promo

    OVH Energy Marketing Limited, a subsidiary of Oando, has launched a campaign to reward customers loyal to its lubricant brand – Oleum.

    The campaign, which kicked off on May 13, will end on August 31.

    Known as ‘Oando Oleum Awoof’, it  gives customers  an opportunity  to win prizes, which a brand new car, television sets, motorcycles, tricycles, power banks, airtime and much more across Oando retail stations and distributors outlets nationwide.

    The promo is open to buyers of a four-litre or 25-litre Oando Oleum Lubricant (engine oil)  across Oando retail stations and distributors outlets nationwide.

    The participants are required to scratch the silver foil and text the secret code and location (state) to the SMS short code 38353 for a chance to win at the regional raffle draws.

    Head, Oleum Lubricants, OVH Energy Marketing Limited Mrs. Lilian Ikokwu stressed the importance of rewarding loyal customers. She said: “Oando Oleum has become a staple in the auto lubricant space and this is only possible because of our loyal customers. This promo is a platform for us to appreciate them. We believe that using the right lubricant is  an essential element of auto care that’s why we invest time, expertise and innovation into creating high quality lubricants suitable for petrol and diesel automobile engines. Our Oleum lubricants guarantee fuel efficiency and optimum engine performance.”

    Also, the firm’s Chief Marketing Officer (CMO), Mr. Babafemi Olabiyi, said: “As the sole licensee of the Oando retail brand in Nigeria, we are enriching the forecourt experience of our customers in our stations and continue to ensure high quality products and service delivery nationwide. We care about our customers and as often as we can we give back to them. Last year, we ran the 4 for 4 Oleum Lubricants promo to reward our loyal customers. We are looking forward to putting smiles on the faces of our customers with this promo and strengthening our relationship with them.”

    The Consumer Protection Council and the National Lottery Commission have approved the promo.

    OVH Energy Marketing provides petroleum products and services .

  • Nigeria risks crude loss as fire guts Trans-Forcados pipeline

    FIRE  has gutted the Trans-Forcados Pipeline connecting the Forcados Export Terminal in Burutu Local Government Area of Delta State.

    Nigeria risks losing  thousands of barrels of crude oil per day following the incident.

    The incident occurred around the Chanomi creek of Yeye Community at about 11:45pm on Saturday night.

    Chairman of Yeye community, Pastor Philip Fianka, confirmed the incident to reporters.

    It was not clear what led to the fire at the time of this report as security sources said investigation was ongoing to determine its cause.

    Heritage Energy Operational Services Limited (HEOSL) is the joint venture operator of the Trans-Forcados Pipeline. The export facility conveys about 14 percent of Nigeria’s total daily output, carrying crude from about seven oil blocks across the oil-rich region.

    The General Manager, Community Relations of Heritage Energy Operational Services Limited (HEOSL), Mr Sylvester Okoh, said the fire occurred at a crude oil spill site along the pipeline.

    According to Okoh, “At about 2300hrs on  May 19,  2019, a fire incident was reported at the crude oil spill site along the TF pipeline around Yeye Community.

    “The fire was reported to have destroyed some equipment at the scene. The houseboat and gunboats were safely relocated from the scene.

  • Oil market stability remains our focus, says OPEC

    Despite the fluctuations in the market, the Organi-sation of Petroleum Exporting Countries (OPEC) will continue to ensure its stability.

    This was the decision of participants at the14th meeting of OPEC’s Joint Ministerial Monitoring Committee (JMMC) in Jeddah, Saudi Arabia.

    The JMMC expressed its satisfaction with the role the Declaration of Cooperation played in the oil market recovery in the first quarter of the year compared to the fourth quarter of last year.

    OPEC noted that last month’s conformity rate was 168 per cent, and that the figure was a record, adding that it has had positive effect on global economic growth in the first four months of the year. Average conformity has reached 120 per cent since January, it said.

    The committee noted that a flexible approach had been critical to the success of the Declaration. Since the Declaration was signed on December 10, 2016, the partners have adapted the course depending on market conditions.

    “When the market appeared skewed to oversupply, voluntary production adjustments were adopted and implemented, as was the case in December 2016 and December 2018. Equally, when concerns regarding demand outpacing supply surfaced as the market tightened, as was the case in June 2018, partners in the Declaration of Cooperation took appropriate action,” the committee said.

    Oil market conditions and macroeconomic developments also recognised that critical uncertainties remain, including trade negotiations, monetary policy developments and geopolitical challenges.

    The JMMC requested that the OPEC Joint Technical Committee and the OPEC Secretariat continue to monitor and analyse oil market developments, particularly, oil inventory projections in the coming weeks to the next JMMC meeting making a recommendation to the OPEC Conference and OPEC and non-OPEC Ministerial Meeting, for next month, on appropriate actions on the part of participating countries for the second half of the year.

    The 15th JMMC meeting will hold next month at the OPEC Secretariat in Vienna, Austria.

  • ‘Diaspora remittance exceeds 2018 oil, gas earnings’

    The Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru, has said diaspora remittances by Nigerians in 2018 surpassed earnings from oil and gas last year.

    Avuru spoke at the Nigerian-American Multicultural Council (NAMC) 8th Annual gala night held in Houston, Texas, where he bagged the Honorary Gala Chair and Lifetime Achievement Awardee.

    According to him, Nigerians in diaspora in 2017 had remitted S22 billion, making it the highest in  sub-Saharan Africa followed by Senegal and Ghana with $2.2 billion each in the same year. Currently, the country is in the top five nations in global remittances.

    Also, the Chief Economist at PricewaterhouseCoopers (PwC) Nigeria, Prof Andrew Nevin, had said Nigerian citizens living outside the country remitted an estimated inflow of $25 billion last year, saying they remained Nigeria’s biggest export.

    Quoting the National Bureau of Statistics (NBS), Avuru said the Bureau had two weeks ago disclosed in its report that for the full year 2018, diaspora remittances for the first time exceeded Federal Government’s earnings from oil and gas sector.

    The PwC’s Chief Economist, in a report titled: Nigeria Economic Outlook: Top 10 Themes For 2019, noted that remittances to Nigeria represent 6.1 per cent of Gross Domestic Product (GDP), and translate to 83 per cent of the Federal Government’s budget of last year.

    On the other hand, statistics from the Central Bank of Nigeria (CBN), indicated that Nigeria earned N5.54 trillion from the petroleum industry in 2018, amounting to 60.88 per cent of the N9.1 trillion budget for the 2018 fiscal year and 63.45 per cent of the N8.73 trillion proposed budget for 2019.

    The Seplat chief while addressing Nigerian professionals in Houston, admonished them to use their wealth of knowledge and wide contact to help develop the country’s economy.

    He noted that the remittance figure for last year is an indication that Nigerians in diaspora have not forgotten their heritage in all they do outside the shores of the country.

    He said: “You may not really know the value you are contributing to the economy even while you are here. But your remittances to Nigeria in no small measure are contributing to the country’s growth.

    “For me, if you are emphasising the bridge between Nigeria and America, it is about enterprise and value creation. It is pleasing to note that we Nigerians are no longer invitees to the banquet but co-organisers and participants in the banquet.

    “From the young men and women to the old ones, the position that you hold in multinational organisations and the entrepreneurs that have risen to height, both here and back in Nigeria attest to your tenacity.

    “And even when you recollect that all of these successes are personal efforts and not as a result of any government backing or push, that means that one day, when we finally get our governance right, things will take a turn for the best.”

    He said the paradigm shift will come from all of those in the diaspora based on the experience and exposure that they have.

    “When finally we have that level of governance that will direct our noble cause as we say in the second stanza of our National Anthem, then you can imagine how far we will go as entrepreneurs and business leaders if we do this much in spite of the poor governance.

    “We in Seplat say you are welcome. We expect you to rise to the very top and create value in your various endeavours, and as you do so, never forget your heritage.  Please do come back home to help fix the economy,” he said.

     

     

  • Nigeria, others to account for 53% of fossil fuel

    Nigeria and other countries will account for 53 per cent of fossil fuel in use by 2040, Seplat Petroleum Development Company Plc Chief Executive Officer, Mr Austin Avuru, has said.

    Fossil fuel, also known as hydrocarbon fuel is derived from oil and natural gas, is found in Nigeria, Ghana, South Africa, Algeria, Britain, United States, Germany, Canada and other countries of the world.

    He spoke at a session at a workshop hosted by Petroleum Technology Association of Nigerian (PETAN) at the Offshore Technology Conference (OTC) in Houston Texas, United States. The workshop had “Global Energy Transformation – The Effect and Future of the African Oil Industry and Economy”  as theme.

    ‘’Even up to 2040, fossil fuel will account for 53 per cent of the world energy demand. So, what we are seeing today is a gradual decline in the total contribution of fossil fuel to the energy mix over time. It is not an overnight elimination of fossil fuel,” he said.

    Avuru noted that the global trend in energy supply would seem to suggest alarming. “The impression is generally given that the world is fighting a spirited battle to make sure that fossil fuel becomes irrelevant; and in that context, for countries like Nigeria that are endowed with fossil fuel, some people seem to be saying Nigeria is going to wake up one day and find out there is no use for its crude oil and natural gas.

    “This impression also suggests that Nigeria will become a worthless country because its fossil fuel endowment will become completely useless to the world.

    ‘’As we move beyond 2030, 2040 and 2050, the energy mix will continue to be guided by availability, commercial consideration; which means, even for fossil fuel, countries will pay attention to cost because fossil fuel will have to compete the same way renewable will  be able to compete,”Avuru said.

    He explained that fossil fuel was always known to be a finite resource, which means that the world, even over the last 100 years, knew that it will come to a point where there will be a decline in the supply of fossil fuel as energy source.

    “Those days in the 70s, there was a prediction by the International Energy Agency (IEA) that between 2012 and 2015 we would get to peak oil. Peak oil means that beyond that point, we will begin to see a decline in the world production. Thanks to technology. That date has been shifted forward. Peak oil will come. We have only shifted it forward because of technology.

    ‘’Today technology has enabled us to get crude oil and natural gas out of shale. Those of us who are geologists have always known that, there was crude oil in shale, but shale didn’t have the permeability to release it. What technology has done through cracking is to induce that permeability to release the crude oil and natural gas from shale. Thanks to technology because we have seen additional sources of crude oil and natural gas that moved backwards the date for peak oil.

    ‘’So, what we are seeing today is a very sensible scientific move by the world and by the advanced technologies of the world to start developing that alternative to fossil fuel because the day will come when there will be no fossil fuel,” he said.

    Avuru indicated that fossil fuel which is, natural gas and crude which accounted for all our energy needs 20 years ago, has now declined to a level where renewable now accounts for 20 per cent of our energy needs.

    He said energy needs keep increasing by three per cent on  yearly. “If that 20 per cent accounted for by renewable energy were not there today, the demand for crude oil and natural gas would have driven the cost of crude oil to about $200 per barrel,” he said.

    He continued: “Invariably, what we are seeing is a gradual transformation that should not be seen as a curse, but as solution that is being provided to the world that by the time we get to the point of decline in the supply of fossil fuel, there will be alternatives to fill the vacuum.

    ‘’When we see the demand for energy versus the supply, if we do nothing about oil and gas, we will see  that the gap over a 20-year period will lead to a catastrophe. So, the point I am making and the point to take home is that there is no gang up by the world to make fossil fuel irrelevant. What the world is doing is to start in a timely fashion to develop the alternatives that must come when fossil fuel delivery in the world energy mix starts to decline.”

  • ‘Only market forces can guarantee stable power ‘

    Nigeria has been burdened with irregular supply of electricity, a development which is having a devastating effect on the economy. In this interview with reporters, the Chief Executive Officer, Century Power Generation Limited, Dr Chukwueloka Umeh says government interference will not guarantee stable power supply. He advises government to build infrastructure and market that would sustain the growth of the sector, among others. AKINOLA AJIBADE was there.

    Why has stable power supply remained elusive in Nigeria, considering measures by the Federal Government to fix the sector?

    The reasons behind acute power shortage in Nigeria are many. First, the Federal Government has failed to give the sector the attention it deserved. Power is key to the growth of any economy, and as such it must be given priority by any government that wants to record success. In Nigeria, it is a different case entirely. The government has failed to give the sector the attention it deserves. Let me, at this juncture, say that the government has misplaced its priority by giving prominence to some issues to the detriment of the power sector.  Instead of putting measures, which would enable power plants access gas for production of electricity in place, the government did not.

    The government did not deem it fit to provide infrastructural facilities that would aid the transportation of gas from marketers or suppliers to the power plants. That is why plants are complaining of being starved with gas, which is the feedstock they need to generate electricity. Though the country has enough gas, as it is reputed to be the largest ninth gas producer in the world, the nation’s poor and ageing infrastructural facilities have become a source of concerns in the industry. Secondly, the country lacked strong distribution networks, a development, which has hindered the distribution of electricity to the consumers by the firms approved to undertake such responsibilities.

    Nigeria is suffering in the midst of plenty, considering the fact that the country has one of the highest gas reserves globally.

    There is no doubt about that. I would give a simple analogy to explain this fact. A man is living on the bank of a river, which produces clean water. However, the man was unable to drink from the water due to problems confronting him.  He is finding it difficult to dip his bucket in the water in order to get some water to drink, among others. This made him to travel 20, 30 or more kilometers in order to buy water from someone else, who is taking water from the same river. This other man buys water in bottles and resells it to people. That is the tragedy of our situations in Nigeria.

    We have resources, which we cannot use in order to meet our needs. This is why Nestoil and its subsidiary, Century Power Generation (CPG), have invested in the widening oil and gas space. This is a company, which is owned by Nigerians and run by Nigerians. Nigeria is the only home we have. This implied that we have no other place to run to. So, if we are going to live here, do business here, we have no choice than to fix the problem(s) in the country.

    Nigerians travel overseas to buy things that they need for their businesses.  Also, those countries use resources bought from other areas, including Nigeria, to make things work. For instance, the economy of a country like China was very small 20 years ago, but it is much bigger now.  China’s Gross Domestic Product (GDP) was very small, but it is now bigger.  China’s GDP was small, compared to Japan. The question we must ask ourselves is: What did China do?

    The country invested in energy. And within 20 years, Chinese have turned their economy around. Today, China is now a global superpower as it has moved from a country, which manufactures products only to become a technology driven country today.

    What lessons can Nigeria learn from the China’s example?

    The lessons are many. The first lesson is in the area of energy development. China has been able to build infrastructure, build railways, roads, industries, spend more on locally produced goods, among others, because the country has provided its own. Nigeria can take a cue from China by investing significantly on power. The country must ensure that its energy sources are well implemented. With adequate power in place, Nigerian economy would become stronger in no distance future. The country would not find it difficult to produce many millionaires bigger industries would emerge among others.  I remember those days when Michelin was producing tyres in Nigeria; I remember those days when Nigeria was exporting products such as timber, palm produce and others. I remember those days when exchange rate was one pound sterling was equal to one naira and so on. Nigeria would not have some economic drawbacks if power had been stable in the country.

    What can the government do to stabilise power sector?

    The government should try and provide infrastructure, a development which will facilitate the production of electricity in the country. Also, the government should put in place a market that would guarantee the sales of electricity by the operators.

    What influenced your participation in the Nigerian power industry? 

    Issues in the Nigerian energy sector are compelling and require solutions. Is it gas shortage are we going to talk about? Is it failure of the power plants to return to optimal production? Is it the failure of transmission to evacuate enough electricity to the national grid we are going to talk about? Is it the general power outage in the country? There are lots of issues that need investigation and solution in the country. I worked in the General Electric (GE), in the United States for many years.  There, I participated in the development of gas turbines for both the airplanes and power plants. If I can do that in the U.S, I should be able to do the same in Nigeria, which is my country. I forget about the fact that I was paid in dollars in United States, coupled with the fact that I was enjoying the infrastructural facilities over there, Nigeria is my country.

    So, when I came back to Nigeria, it was easier for me to work in the Century Power Limited, where we are working on 1,500 megawatts power plant in Okija, Anambra State. This is a gas powered turbine that would be completed in 2022 and it would help in providing power to the people in the state and beyond.

    How realistic is 2022 slated for Okija Power plant inuaguration?

    The date for the commissioning of the plant is realistic as Century Power in conjunction with Nestoil, its parent company, is working to meet that deadline. However, the plant would be ready in either second or third quarter of 2020 in the event that we are able to mobilise enough funds for the project. To enable Century Power achieve this feat, governments have to come in. A lot of things need to be done by the government in order to make the plan a reality. The government needs to approve documents to achieve this feat.  We all know that things have changed in the country. Many officials in the Nigerian Electricity Regulatory Commission (NERC) and other bodies have been removed by the government and new officials appointed to replace them. This and many other problems have delayed the achievement of these projects.  There are documents, which the Ministers of Finance, Power, Justice and others have to approve. This is the only way through which Century Power can improve funding and accelerate the construction of those projects, which are critical to the growth of the nation’s energy sector.

    Failure by the Century Power Limited to get these documents signed means that the projects may not be completed. That is the why the company is seeking the support of the government on these issues. Any attempts by the government to assist the firm to complete the power projects in 2020 means that the government is indirectly working for the betterment of the lives of Nigerians.

    Why is it that power distribution companies (Discos) have been unable to distribute enough electricity to consumers?  

    The reason is not far-fetched. The stakeholders such as the power generation companies (GENCOS), the DisCos, the Transmission Company of Nigeria (TCN), the Nigerian Bulk Electricity Trading Company (NBET) and others in the energy value chain are not doing what they are supposed to do. The value chain is broken, and as a result, there is no cohesion among the stakeholders. Let us say Nigeria has installed capacity of over 12,000 gigawatts and there is problem with the distribution, how can the country provide uninterrupted power supply? The problem with the Discos, started during the privatization period.

  • ‘Oilserv to complete 2bscf/d OB3 pipeline by September’

    The Chairman/Chief Executive Officer, Oilserv Group, Emeka Okwuosa, has said that  the company will complete its part of the Obiafu-Obrikom -Oben (OB3) gas pipeline by September this.

    In an interview with reporters at the just-concluded Offshore Technokogy Conference, in Houston, Texas, Okwuosa said the project is on course and will be completed in September.

    He said the project is quite challenging, adding that  the company has always shown commitment in the process of executing the project from the Engineering, Procurement and Construction (EPC) stages.

    He stressed that the  Gas Treatment Plant (GTP) is the largest in Nigeria and by extension Africa, with a capacity of two billion standard cubic feet of gas per day (2bscf/d).

    On project delay, he said few changes in the entire design concept alongside some shortcomings led to some setbacks in the initial delivery date.

    Oilserv, a leading Engineering, Procurement, Construction, Installation and Commissioning Company in Nigeria has been a major player in the industry since inception in 1992 and has contributed immensely to the development of pipelines systems infrastructure in Nigeria having executed various large and medium scale projects.

    “No pipeline of this size and capacity has been built in Nigeria. You will recall that in the 1970s, 1980s, and 1990s, we have the likes of Wilbros and others that were not Nigerians firms, handling the pipeline construction. Even at that, if you look at all pipeline infrastructure today, you cannot equate it with the pipelines built by Oilserv.

    “Let us also put it in perceptive that it is not about the pipeline. We have the GTP at Oben, which is the heart of our scope. The GTP will handle two billion standard cubic feet of gas per day. This has never existed anywhere in Africa.

    “You have to be there and see the massive nature of the pipeline. When you talk about building OB3, is not just building a pipeline,” he said.

  • Depot owners to NNPC: N117 per litre of fuel is too high

    Private depot owners are lamenting Nigerian National Petroleum Corporation’s (NNPC’s) decision   to sell Premium Motor Spirit (PMS) to them at N117 per litre, admitting that the price is not only outrageous, but not cost effective. The depot owners  include members of Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Marketers Association of Nigeria (DAPMAN).

    In a telephone interview with The Nation, its Executive Secretary, Mr Femi Adewole, lamented that the N111 per litre price, which NNPC was selling fuel to them, was at an insignificant margin, wondering what will happen when the state-run oil firm has ncreased the price to N117.

    Adewole said NNPC’s  monopoly of fuel importation has compounded their woes.

    He said: ‘’By the time depot owners, who are mostly marketers,  add other costs incurred in the course of buying fuel from NNPC and later sell the product at the pump price of N145 per litre to  consumers,  they will be left with little or no profits.  More worrisome is the fact that NNPC controls fuel importation, a development which has compelled marketers to sell the product at a particular price. That is the situation we find ourselves. We are praying for solutions to problems inhibiting the growth of the industry, especially the downstream sub-sector.’’

    The NNPC, Adewole said, sells fuel only to depot owners, who have Profoma Invoice, a development, which implies that any depot owner or marketer, who do not have Profoma Invoice would not be able to buy fuel.

    He said diesel price is deregulated, stressing that marketers are selling the product at between N220 to N230 per litre.

    Also, MOMAN’s Secretary, Mr Clemens Isong, said depot owners, including MOMAN members, have no choice than to buy the fuel at N117 per litre, being the price from the Department of Petroleum Resources (DPR).

    No depot owner or marketer, he said, can say he or she is making profit under the new price regime.

    A member of the Independent Petroleum marketers Association of Nigeria (IPMAN), who does not want his name in print, said why the NNPC increased the fuel price at which it was selling to depot owners may not be unconnected with the rise in the landing cost of fuel into the country.

    ‘’The NNPC may have considered the cost of importing fuel into the country, ditto the cost of storing the product, cost of logistics, among other variables.  When one considers  these variables, which in most cases are not static, one would see that the tendency by  NNPC to increase the price at which fuel is being supplied to depot owners is high,’’ the IPMAN member said.

    According to him, NNPC does not sell more than 10million litres to depot owner, stressing that the corporation has maintained that figure over the years.

    “What I observed in the downstream sub-sector is that NNPC has not for once sold more than 10million litres of fuel to any depot owner. The reason is simple. NNPC believes that no private depot can contain more than 10 million litres of fuel at a stretch,” he said.

    He said independent marketers buy fuel at N132.28 per litre from depot owners, not NNPC.

  • FEC approves $1bn Chinese loan for Gurara hydropower project

    The Federal Executive Council (FEC) on Wednesday approved   $1 billion Chinese loan from Chinese EXIM Bank for the Gurara II Hydropower project.

    The project at completion will generate 360 megawatts of electricity.

    President Muhammadu Buhari presided over the weekly FEC meeting, which considered eighteen memos.

    Minister of Water Resources, Sulieman Adamu, said the approval was part of the four memos the council approved for the ministry.

    Only recently, the Debt Management Office disclosed that Nigeria’s total debt profile as of December 31, 2018, now stands at N24.387 trillion.

    Council also approved the sum of N5.7 billion revised total estimated cost for the completion of Nkari dam in Akwa Ibom.

    Read also: FEC approves N35.9b for roads in six states

    It also approved the appointment of a consultant for the resuscitation of the Gari Irrigation Project in Kano/Jigawa States. Council had in 2017 approved for the resumption of the project which was earlier abandoned for 17 years.

    The consultant is the same appointed in 1998 when the project first began. Adamu said the contractors are already on site.

    Council also approved the revised estimated total cost of N10.4 billion for the completion of Ile Ife Dam in Osun State.

    The project, which was started in 2004 and abandoned, has completion period is 24 months.

    Also, council approved the sum of N18.4 billion for the ministry of Power, Works and Housing.

    Minister of Power, Works and Housing, Babatunde Fashola said: “My ministry presented two memos, one was for the construction of an inter-change and pedestrian bridge at Abaji in Abuja for N7.197 billion to address the perennial problem of accidents in that place which was approved by council.

    “The second memorandum was for the procurement of 200, 2017 meters by Yola Electricity Distribution Company Under the Meter Asset Providers Scheme.

    ‘’As you might know,Yola Electricity Distribution Company is the DISCO that was surrendered to by the original holder. So it’s under the Federal Government’s management.

    ‘’So they are buying 200,217 meters for consumers under their franchise which covers Adamawa, Borno, Taraba and Yobe States.

    “The cost of those meters is N11.208 billion. It is to be funded from the judgement sum that I previously briefed you about two years ago that council approved a compromise from an old meter’s supply dispute since 2003.

    ‘’So that money is in a bank, it has been there, so that is where these meters would be funded from and as consumers pay back the meters as they are supplied, the money goes back into that account.”

    On the approval granted Ministry of Agriculture, Audu Ogbe, Minister of Agriculture and Natural Resources said FEC granted approval to buy sixty one thousand tons of maize, millet and sogum at the cost of N9. 47billion.

    Speaking on the approval Ogbe said: “We have a memo approved in council for purchase of grains to reinforce the grains reserve.

    ‘’Everywhere in the world Silos are owned by government into which they purchase grains at the end of harvest.

    ‘’The average is usually between two and three percent of all grains grown.’’