The Nation Newspaper

Category: Energy

  • NLNG chief seeks human capital development in oil, gas

    NLNG chief seeks human capital development in oil, gas

    The Managing Director and Chief Executive Officer, Nigeria Liquefied Natural Gas Limited (NLNG), Mr. Tony Attah Monday, has called on engineers in the oil and gas industry to acquire cutting-edge competence to enable them harness the nation’s vast natural resources and grow the economy.

    Attah spoke at the Society of Petroleum Engineers (SPE) Young Professionals Workshop in Lagos.

    He said the industry has been pivotal to the economic wins in the past five decades and still remains so till date, stressing the need for competent professionals who will sustain and develop the sector.

    He said: “It, therefore, becomes imperative for the Society of Petroleum Engineers and similar professional associations to stimulate the availability of enabling facilities to nurture and grow the professionals and the technology which will deliver the dividends from the sector to the nation’s economy.

    “In view of this urgent need to support the development of world-class training structure for engineers, Nigeria LNG Limited spearheaded the improvement of the study of engineering in Nigeria’s top Federal Universities in the six geo-political zones of the country, through its University Support Programme (USP) and through which we recently donated buildings and equipment with a total value of $12 million.

    “Under the programme, Nigeria LNG built and equipped six engineering research laboratories in Ahmadu Bello University, Zaria, University of Ilorin, University of Nigeria, Nsukka, University of Ibadan, University of Port Harcourt and University of Maiduguri.”

    Highlighting NLNG’s contribution to the development of human capital in the industry, Attah said NLNG also provides technical training for young Nigerians in the Bonny Vocational Centre situated on Bonny Island.

    “The NLNG vocational centre has trained over a thousand Nigerians in related occupational areas such as electrical installation, fabrication, welding and pipeline work, mechanical fitting, building construction, ICT system support and many others. Our focus is to sustain the development of skilled manpower to support the technical field,” he added.

    He said professional associations such as SPE should promote efforts to develop competence, whether through the public sector or the private sector to support a thriving oil and gas sector as well as to overall economic development.

  • ‘Passage of PIB ‘ll solve industry, economic woes’

    ‘Passage of PIB ‘ll solve industry, economic woes’

    The oil and gas industry, the nucleus of the economy, has been on the decline in the last three years. Major players in the industry such as the Managing Director/Chief Executive Officer of Wottnig Group Limited, Mr. Oluwole Richard Oyebade, says despite the slump in crude oil price in the global market and campaigns against fossil fuels, Nigeria can overcome her economic woes with or without oil. 

    Since 2014, the business environment has been tough for the oil industry as a result of crash in crude oil price, how has Wottnig Group been coping with the downturn?

    Wottnig is an oil and gas company that was started on July 5, 2012. It became a limited liability in June 2013. It’s an energy dominant company. We are an oil offshore logistics company and a downstream petroleum group. We provide security crew boat for offshore vessels and we trade in the petroleum downstream. We sell and distribute diesel, petrol, aviation fuel, lubricants and liquefied petroleum gas (LPG).

    Since 2014, the business environment has been really tough for the oil sector. We have been coping by increasing the quality of our products, embracing technology and reducing our manpower. We train and retrain all our employees and we double our steadfastness in the delivery of our products to our customers.

    We realise the importance of cutting cost in situations like this. That is the reason we had to reduce our manpower. It got to a point where we have to put majority of our staff on contracts, lay off others and retain those with high profitability, good performance and high character ethics level. We remain resolute to succeed despite all odds. We belong and we specialise in the downstream and offshore logistics. We will be taking more drastic steps to keep us afloat.

    What future does oil hold in the life of Nigerian economy?

    The future of oil in Nigeria is still very bright. Nigeria still depends on oil to drive the economy. Personally I think it is time for our government to support diversification of the economy. This will make many people gain more exposure, our goods to be exported and we make more money for the growth of the economy. Nigeria will prosper more if we can reduce our attention on oil as the lifeline of the economy.

    What are the implications for foreign investment considering some contentious provisions in the Petroleum Industry Bill (PIB)?

    The PIB is one of the best things that has happened in our lifetime. Let me tell you, no other bill has been more popular since Nigeria returned to democratic rule in 1999 than the current Petroleum Industry Bill. Maybe the freedom of information bill comes near. The reason is not far-fetched. Anything petroleum in Nigeria generates passionate interest. PIB is believed to be the master reference document that governs the Nigerian petroleum industry from the upstream through the midstream to downstream where Wottnig belongs (servicing, refining, distribution, transportation and marketing/retailing). Shortly after President Olusegun Obasanjo assumed office in his first term, he set up a committee called the oil and gas industry committee (OGIC), with a mandate to take a comprehensive look at Nigeria’s oil and gas sector and offer better ways of managing the industry. Obviously many of the laws and regulations guiding the industry had been around for long, some as far back as 1950. Although they had undergone amendments, the Federal Government considered it necessary to take a holistic review of the industry with a view to getting the best of it by all stakeholders.

    The (OGIC) was led by the former Minister of Petroleum Resources, Rilwanu Lukman, a veteran petroleum engineer and former Secretary-General of OPEC. The committee had other oil industry eggheads. The committee submitted its report and its recommendations formed the basis of Petroleum Industry Bill, which has since been subjected to further reviews and adjustments.

    What does PIB seek to achieve?

    The bill, among other things, seeks to create a conducive business environment for petroleum operations, enhance exploitations and exploration of petroleum resources in Nigeria for the benefit of Nigerians. In addition to that, the law seeks to optimise domestic gas supplies especially for power generation and industrial development. Also, the law will encourage investment in Nigeria’s petroleum industry; optimise government revenue, establish profit- driven oil entities, deregulate and liberalise the downstream sub-sect                                                                                              or, create efficient and effective regulatory agencies. The PIB seeks to promote the development of Nigerian content in the oil industry; protect health, safety and the environment in the petroleum operations.

    What are the implications or objectives of these for the industry?

    The key implications or objectives to note from the above would be the creation of more jobs for Nigerians as it will become illegal to employ foreigners for certain skills that can be sourced locally. Whereas in the past such skills are sourced from abroad with the pretence that qualified personnel are unavailable locally, giving room to make expatriates employed for jobs Nigerians can do. The above is applicable not only to skill but to material sourcing. The PIB when passed into law will also create more jobs for local contractors especially those from the oil producing regions. Gas is still under focus in Nigeria and the potential from this resource is still untapped. The PIB seeks to maximise these if well articulated and will also boost power supply in Nigeria.

    In the long run, government revenue from oil and gas extraction will increase. This means more funds in the hands of government to engage in development activities. The downstream sector will become fully deregulated. In other words, subsidy regime has to go. Subsidy removal is not totally bad, if there are no distortions to market.

    Governments globally are being pressured to foreclose fossil fuel development as a result of the attendant pollution, is Nigeria preparing for this?

    Environmental protection and what late Ken Saro-Wiwa and eco warriors and activists fought and died for cannot be wished away. It’s crucial to ensure that we do not destroy our environments as a result of oil exploration. I think the PIB has taken care of the initial grudges of the Niger Delta militants who want a fair share of the proceeds from oil.

  • BEDC to reconnect Ondo communities

    BEDC to reconnect Ondo communities

    Benin Electricity Distribution Plc (BEDC) has urged Ondo State government to create industrial layout for energy concentration to enable it boost economic activities even as it promised to restore power supply to six Akoko communities under Owo Business Unit of the state.

    The Managing Director/Chief Executive Officer, Mrs. Funke Osibodu, stated this when she led BEDC management on a courtesy visit to Ondo State Governor, Oluwarotimi Akeredolu (SAN), in Akure. She said the company already partnered with the state to boost its economic activity by completing 50 electricity projects out of which 31 had been commissioned while 17 others await commissioning.

    She said dedicated projects will increase production capacity of industries due to cost reduction as BEDC power was cheaper than any alternative power supply, adding that it will also make them create more jobs for indigenes. She assured that BEDC will make more power available for economic development and job creation in the state.

    Osibodu also noted that BEDC community relations department was set up to ensure proper relationship management of all communities within its network hence the resolution to make power available to six communities had reached the final stage and the six communities would be energised having fulfilled the terms of the agreement signed.

    The BEDC chief urged the state government and other stakeholders to join in the crusade against vandalism of the company’s property, adding that BEDC has taken some steps such as fencing of transformers to prevent destruction by vandals.

    She stated that BEDC has through employment of graduates and technicians of Ondo State origin under its Graduate and Technician Trainee scheme supported youth empowerment with a view to reducing youth restiveness in the state. In addition, the partnership with Elizade University in Ilara Mokin on the graduate training programme has also empowered a university within the state.

    Osibodu also called on the governor to ensure that that there was review in the curriculum of tertiary institutions in Ondo State such as university, polytechnics and technical colleges to make their content align with industries and companies’ requirements so as to make it easier for students to use when employed.

    Chief State Head, Ondo State, Olakunbi Labiyi, listed key challenges in power supply to the state to include major transmission limitations restricting quantum of power delivery to the state. He said the “132KV lines from Oshogbo to Akure with undersized conductor covers Ondo and Ekiti States with maximum power pegged at 50 megawatts (Mw), while the feeder is often open by Transmission Company of Nigeria (TCN) under frequency condition and kept out until the frequency improves.”

    He called for the quick replacement of failed 60MVA power transformer in Akure TCN, and urged the government to intervene and ensure speedy completion of the on-going 330/132/33k transformer under construction along Akure/Owo Road.

  • Govt urged to boost oil production for growth

    The Federal Government will generate enough revenue to implement the budget and meet other fiscal responsibilities when it ramps up oil production, stakeholders have said.

    The Chief Executive Officer, Abuja Power Station, Mr Jameel Jammal and the President, International Institute of Energy and Law, Prof Wunmi Iledare, who spoke to The Nation, said with increased oil production, government would be able to get enough money to implement the budget.

    They said if the government would be able to meet 80 per cent to 90 per cent of its targeted oil production, it would be able to get money to drive the economy.

    Jammal said sustained peace in the Niger Delta region is necessary if the government wants to achieve meaningful economic growth. He said it is through the region that the economy derives the highest percentage of its earnings. The country would stop contending with bad economy once crude oil production improves significantly. Meeting fiscal responsibilities would not be difficult once the production of crude oil peaks, he added.

    Iledare said happenings in the region go a long way in determining the outlook of the economy. He said Nigeria depends on crude oil for sustenance, therefore, it needs to foster growth in the Niger Delta region.

    According to him, growth in the nation’s petroleum industry is dependent on the twin issues of peace in the Niger Delta and increased oil production, adding that once peace is sustained in the region, the government will be able to achieve its goal of having improved revenue from crude oil.

    He said: “No doubt, the industry is facing the twin problems of reduction in the production of crude oil and violence in the Niger Delta.  The issues have impacted negatively on the industry and the country, which relies on oil for sustenance. Now that the price of crude oil is appreciating, the Niger Delta people must allow peace to reign in order to achieve optimal production.”

  • Senate okays private-public partnership for refineries’ repairs

    •Oando gets nod for Port Harcourt plant’s job

    The Senate has finally endorsed the private-public partnership (PPP) for the repair of the country’s four refineries.

    The lawmakers kicked against the government initiative, given that the contract given to Eni/Agip and Oando to repair Port Harcourt Refinery did not follow due process.

    The Upper Legislature had suspended a contract awarded to Eni/Agip and Oando Plc to rehabilitate the Port Harcourt Refinery, claiming that it did not follow due process; the Senate constituted an ad hoc committee to probe the deal.

    At the hearing with stakeholders, panel endorsed the arrangement. The Joint Upstream and Downstream Senate Committee probe followed reports that the refinery was to be privatised or concessioned by the Nigerian National Petroleum Corporation (NNPC) with Oando and Eni as the preferred consortium.

    Its Chairman, Senator Abubakar Kyari, said: “We’ve heard extensive summations from all parties involved regarding this concession process. Inevitably, partnerships between the public and private sectors are necessary to provide the required funding to rehabilitate our nation’s refineries. We are committed to due process, and in seeking to achieve these goals, sound principles of corporate governance and extant laws must be adhered to, for the greater good of the Nigerian people. Indeed we will come up with recommendations aimed at improving transparency in the oil sub-sector of the economy and at the same time encourage investors.”

    At the event were the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Wale Tinubu, Group Chief Executive Officer of Oando PLC, Massimo Insula, Managing Director Nigerian Agip Oil Company, and Aniebor Kraghas, Chief Operating Officer, NNPC.

    Tinubu denied  that already it had a deal on the matter.

    He said: “We’ve issued several rejoinder statements as well as clarifications by the NNPC, ENI, explicitly stating that there is no existing mandate for the concession, sale, equity transfer or privatisation of the Port Harcourt refinery or any of the nation’s refineries. As a crude exporter and supplier of refined products to the country, our expression of interest in the refurbishment and upgrade of the refineries is as a funding partner. Our proposed participation in this effort is an opportunity to drive the country forward and ensure product security is realised. We are wholly committed to the government’s vision to become a petroleum product self-sufficient country in the short to medium term, and ultimately be a net exporter. The Port Harcourt Refinery remains a national asset, under the full control of the NNPC as far as we are aware, and there is absolutely no concession deal in place.”

    Last year, President Muhammadu Buhari directed the Petroleum Resources Ministry to  engage investors with refining experience and funding capacity to partner local players that understand the downstream oil market to revamp the refineries.

    To strengthen international relations, the Italian Government through ENI (an Italian oil and gas company in which it owns 30.3 per cent shareholding), supported the rehabilitation of the country’s refineries, specifically the Port Harcourt refinery, in which it has a long history of technical involvement.

    Earlier this year, Dr. Kachikwu met with ENI CEO, Claudio Descalzi, to discuss further cooperation between the Italian firm and the government.

    The NNPC and ENI, through its local subsidiaries, Nigerian Agip Oil Company (NAOC) and Nigerian Agip Exploration (NAE), signed a Memorandum of Understanding (MoU) to promote activities that would  boost economic development.

    Kachikwu said: “There is absolutely no concession framework for the Port Harcourt Refinery or any of the refineries.

    ‘’Our mandate has always been to grow our production levels year on year, cost-savings for the country, and increased dollar revenue. To propel this initiative, we realised we needed scale-up in the technical know-how in our 100 per cent indigenously-operated refineries, as well as private sector participation to crystallise the rehabilitation programme.”

  • Govt to replace kerosene with gas, says NNPC boss

    The Federal Government is planning to make liquefied petroleum gas (LPG) the primary domestic fuel for cooking.

    The aim is to de-emphasise the use of firewood and kerosene and reduce the health risks of the two traditional sources of cooking.

    The government is relying on the Nigerian National Petroleum Corporation (NNPC) and the Nigeria Liquefied Natural Gas Limited (NNLG) to achieve this goal.

    In a statement, NNPC’s Group Managing Director Dr Maikanti Baru said the need to replace firewood and kerosene with LPG was imperative to reduce health hazards and death.

    The corporation, he said, would  leave no stone unturned in increasing the use of cooking gas by individuals and industrial concerns.

    He said Indonesia had succeeded in kerosene substitution, stressing that NNPC is looking forward to cooperating with Indonesia to achieve a similar feat.

    Baru said: “The Nigerian National Petroleum Corporation will also like to partner with Indonesia and other countries in the area of bio-fuels production in order to diversify the nation’s energy mix for growth. Already, the Corporation has launched a campaign on deforestation  to reduce tree felling and its attendant depletion of the ozone layer.”

    At a stakeholders’ forum in Abuja, NLNG’s Managing Director, Mr. Tony Attah, said the company was planning to increase LPG to increase the product’s accessibility.

    He said Nigeria LNG would increase the penetration and market share of LPG by 32 per cent from 400,000 metric tonnes per annum (MTPA) to three million MTPA in five years, as part of efforts to make more Nigerians use the product.

    A study by the company showed that the country must increase LPG production by 32 per cent, adding that given the right condition, the firm would achieve this goal soon.

    “It is expected that an aggressive and well-coordinated market expansion strategy should lead to the growth of the Nigerian LPG market at annual rates of up to 32 per cent from the current level of over 400,000MTPA to over  three million MTPA in five years with a potential increase in per capita consumption from approximately 2kg to over 12kg, well above the sub-Saharan average of 3.5kg per capita,” Attah said.

    The NLNG chief said the gas giant had taken up the drive to improve LPG use in Nigeria, adding that its efforts must be complemented by the government to ensure the market peaks in line with the estimate revealed by its study.

    On the subsector’s problems, Attah said dearth of investments in LPG reception facilities and supply infrastructure, onerous fiscal regime and regulatory environment, such as the imposition of Value Added Tax (VAT) on LPG produced in the country, among others, were inhibiting the growth of LPG ‘ market.

    He urged the government to remove fiscal and regulatory bottlenecks to create a conducive business environment for private sector investment in all segments of the value chain.

    “The removal of VAT on LPG as well as taxes and duties, concessions for LPG equipment and cylinders must be at the top of the priority list for the government,” he said, adding that more people would use LPG in the country when these problems are resolved.’’

  • US firm unveils product

    The Foreign Commercial Service of the United States Diplomatic Mission to Nigeria, in collaboration with Hewlett Packard Enterprise (HPE) Nigeria, and its leading local partner, Manifold Computers, has introduced an innovative technology  – Synergy and Aruba – into the oil and gas industry.

    Synergy and Aruba will help companies to increase their efficiency, monitor people, manage resources, make real-time decisions, reduce risks, save costs, and increase flexibility, productivity and company bottom line.

    Speaking at the public presentation of the product in Lagos, the United States Consul-General, John Bray, renewed his government’s commitment to supporting trade and investment in Nigeria.

    He advised the oil and gas players to avail themselves of the innovative technology to harness Nigeria’s abundant resources, improve their bottom line and grow the economy.

    Bray said: “Nigeria presents tremendous long-term growth opportunities and the United States government remains committed to supporting American companies and local partners in deploying U.S. technology to help tackle some of the challenges the country is facing.’’

    Acting Commercial Counsellor of the U.S. Mission, Paul Bergman, highlighted Hewlett Packard Enterprise’s long-term partnership with the American Commercial Service.

    According to him, the U.S. Commercial Service will continue to be at the forefront of promoting trade and investment between America and Nigeria through the development and execution of mutually beneficial international trade policies and promotion strategies.

    Country Managing Director, HPE Nigeria, Chukwuma Okpaka, noted the high performance of the computing technology, saying it meets the modern exigencies of industry in Nigeria.

    It added that modelling and simulation applications would accelerate breakthroughs in the oil and gas, science, medicine, technology, as well as energy sector.

  • Captive power good for SMEs, says report

    Captive power possesses huge potential that can transform small and medium enterprises (SME) and the economy, if leveraged, a report by The Corvus, a financial and economic publication of Guaranty Trust Bank Plc, has said.

    It said developing a captive power plant (CPP) was quite complex.

    Quoting Pricewaterhouse Coopers  (PwC), it said the project development timelines for CPP may span about three years, noting that it involves several predetermining factors ranging from regulation to mode of financing.

    “The latter is the easier part as it often comes down to either project financing, where the sponsor is directly responsible for the cash flow, or balance sheet financing, which typically involves debt financing based on cash flow generated by the project.

    “The major sticky points to the development of captive power plants in Nigeria are in regulations, where the laws governing captive power generations (CPGs) are quite restrictive.’’

    According to the Electric Power Sector Reform Act of 2005, CPP generates ‘’electricity for the purpose of consumption by the generator and which is consumed by the generator itself and not sold to a third party.”

    This is contrary to the industry’s understanding of a “captive plant” as one owned and operated by a third party, it added.

    The report said beyond financing and regulation, the building of any CPG project is complex and demands experience, expertise and patience.

    ‘’First, like working on any other venture in Nigeria, the project developer needs to be nimble understanding that the rules and road map are not very clear and ever willing to adjust his schedule and resources to accommodate for that.

    ‘’It is also essential to enter local partnerships with co-developers, to facilitate a smoother market entry and project development, and with clients – in this case SME clusters or industrial estates, to guarantee the financial viability of the project. Perhaps, most importantly, it is imperative that the project developer be as self-reliant as possible to ensure control over the entire value chain ranging from the operation of the power plant to the distribution channels.

    ‘’Where all the issues mentioned are effectively taken care of, the success of the  CPP generation project is virtually guaranteed with enormous rewards certain for the project developer, its clients and the economy at large,’’ the report added.

    Quoting the National Bureau of Statistics (NBS), the study stated that as at February, there were 37 million Small and Medium Scale Enterprises (SMEs) in the country.

    It noted that their contributions to the economy was over $250 billion, though $150 billion less than the gross domestic product (GDP) of the Australian city of Sydney last year, which has a population of just under five million people.

    It put the reason for the differential on limited access to finance and markets compounded by low skilled manpower and technology and mainly poor power supply.

    It would be recalled that  10 years ago, the government, through its Financial System Strategy 2020, targeted SME clusters for infrastructural support, as critical to solving their power challenge.

    Today, with these clusters still bereft of adequate power supply,CPP generators can fill the gap. The case for CPG is apt; industrially, they can guarantee SMEs security of power supply, commercially, they require significantly less time and money to develop when compared to traditional power, and technically, they can be configured to the specific industrial demands of SME clusters, it added.

    SMEs, and most businesses in Nigeria, rely on individually purchased, operated and serviced generators as their major source of power supply. The result was that Nigerians spent over N17 trillion on fuelling generators between 2010 and 2015, according a report by electricity-focused NGO, Good Governance Initiative.

    The study, built on the survey of SME owners in Southwest and Southsouth, reveals that over 70 percent of small business owners consider individually operated generators not good for their businesses as they spend nearly 50 percent of their yearly income on the fuelling and maintenance of their generators.

  • Firm harps on local content

    Tranos Contracting, an indigenous diversified technology company, has said it is producing innovative solutions that will satisfy the needs of its consumers, using about 90 per cent of locally-sourced materials.

    Its Managing Director, Jude Abalaka, stated this during a tour of their factory.

    He said in an attempt to  domesticate the firm’s production processes without devaluing its outputs, quality materials are sourced from other indigenous companies, such as West Africa Metal Product Company.

    He said: “We are looking internally, our philosophy is to build an organisation based on knowledge that gives us a lot of flexibility. We are a Nigerian diversified technology company and we focus on adding value to people by coming up with innovative solutions either to existing problems or even trying to improve on what already exists.

    “I would put our local content somewhere around 90 per cent. Our major production material which is the sheet metal is sourced locally and our major sheet supplier is WEMCO, they have a factory in Ibadan. I think these sheets would probably account for 60 or 70 percent of the materials we use.’’

    And for our electrical assemblies, such as cables, we get them from indigenous firms like Coleman Wires and Cable metal. The only major things we import are accessories such as engines and locks or minor electrical components such as fuses but everything else is locally sourced.”

    He said the company produces energy distribution devices and accessories, power generators, changeover switches and isolators, protection devices, power distribution boards, control and automation panels, as well as steel and plastic enclosures.

    “On an ongoing basis, we are always thinking and trying to develop new products. Even as we speak, we have a number of products that are at various stages of development. And we are looking to build things that would not only be comparable to some of the things you find anywhere in the world but even surpass them.

    “The reason behind our efforts is to build ourselves to a point where if you take what we have built and compare with what someone else has imported, you would find out that ours would actually be better. That is our focus. On some levels, maybe we have not gotten there yet but it’s a continuous drive, it is not a destination.

     

  • DisCos need N220b for metering, says Fashola

    DisCos need N220b for metering, says Fashola

    •’Govt revisiting abandoned 2003 N37b meter contract’

    The 11 electricity distribution companies (DisCos) require   N220 billion for the metering of customers, Power, Works and Housing Minister, Mr. Babatunde Raji Fashola, has said.

    Fashola was the guest lecturer at this year’s edition of the public lecture series of the Department of Economics of the University of Lagos.

    He spoke on Power sector reforms: Challenges and the way forward.

    According to the minister, the Federal Government wants to improve power on sustainable basis. Through the Power Sector Reform Programme (PSRP), the government, he said, would achieve, among others, the metering of customers, and their appropriate billing.

    He noted that meters by the same manufacturers were calibrated for each DisCo’s use, such that you cannot use a meter calibrated for Ikeja DisCo in Eko DisCo without recalibration. Meters, the minister added, cannot be installed without a visit to the customer’s home for audit assessment,adding that DisCos liquidity problem makes it difficult for them to access credit to order meters.

    Fashola said: “One DisCo requires over N20billion to meter. The consumer base does not capture all those who consume power, and without meters, the DisCos aggregate power distributed to a destination and estimate of the bill is difficult.’’ Reinforcing the need for whistle blowing for energy theft as a civic responsibility, he said such reports would expose customers who don’t pay or steal energy.

    “Those who are resisting the installation of meters and assaulting DisCo workers who seek to install meters must stop it. It is a criminal offence. The government had in 2003, 14 years ago, issued a contract for the supply of three million meters to NEPA/PHCN estimated at N37 billion.

    “That contract was not performed until the privatisation was concluded in 2013, and was inherited by the Buhari government as a court case in which a judgment of N119 billion had been signed against government. We have worked to get the case out of court, negotiate the judgment and go back to the N37billion contract to see how many meters it can now provide, and how to install them. We are still finalising the terms of agreement,” he added

    On what the government is doing to improve supply, the minister said: “We recognise that our power supply is not enough and what we have done is do the simplest thing, get more power. So our road map seeks to get, first incremental power, progress to stable power, and then achieve uninterrupted power.

    “From this road map it must be clear to any right thinking and well meaning person that this is a journey and not an event that will happen overnight. As we progress on this journey, we will get to critical milestones from which we can look back and say we are now better off at that milestone, than when we started the journey.

    “I understand the urgency to get the power. I understand the high level of expectation. I know that they come from many years of broken promises and a change from government-managed power to privatisation of power.

    “While I fully support privatisation, I believe what took place in 2013 in the heat of politics was a privatisation that was well- intentioned since 2005 but delivered with some deception in 2013 with the expectation of political profit. It led many uninformed Nigerians to believe that once the privatisation was concluded, the assets sold to the distribution companies (DisCos) and the generation companies (GenCos) there was immediately going to be power.

    “I cautioned then that people’s expectations were being unduly raised without telling them that there was a lot of work to do. While I believed that the APC government will do a better job, little did I expect that I would inherit the problem. But I am grateful for the opportunity from Mr. President, to contribute to solving a problem that I am deeply passionate about and I will offer nothing but my best while I am at it.”

    Fashola noted that because of the  transition challenges, some people have called for the cancellation of the privatisation, but that such a cause of action had consequences.

    ‘’The government will be breaching its own contract in the same way we cancelled the privatisation of refineries in 2007 and will send a negative investment signal that we do not respect agreements, and government will have to refund in dollars, all the money paid by the DisCos and GenCos most of which have been spent on almost 50,000 workers of PHCN who had to be paid, among others.

    ‘’Instead of doing these, the government believes that the lapses in the privatisation can be re-engineered, retrofitted or reformed to deliver,’’ he added.