The Nation Newspaper

Category: Energy

  • Energy group commends NUPRC’s project one million barrels per day

    Energy group commends NUPRC’s project one million barrels per day

    …says It’s Nigeria’s lifeline for Oil output

    The Extractive Industry Transparency Forum (EITF), a prominent civil society watchdog for efficiency in Nigeria’s oil and gas operations, has thrown its weight behind the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over its Project One Million Barrels Per Day, describing it as a potential lifeline for Nigeria’s crude production and economic stability.

    The initiative, unveiled under the leadership of NUPRC Chief Executive Gbenga Komolafe, aims to ramp up Nigeria’s crude oil production by an additional one million barrels per day (bpd). 

    It comes at a time when the country is grappling with dwindling output, pipeline vandalism, and underinvestment in the upstream sector.

    In a statement released in Kaduna on Monday, Dr. Sani Yusuf Kura, President of EITF, praised the project as a bold, data-driven intervention that signals a new era of upstream recovery and accountability.

    “We are particularly impressed by the strategic design of Project One Million Barrels Per Day. For the first time in years, we are seeing a regulator not just enforcing compliance but actively coordinating recovery by identifying shut-in wells, facilitating re-entry processes, and unlocking dormant capacity. It is a sign that the NUPRC under Mr. Komolafe understands both the urgency of the moment and the technical demands of the industry,” he said. 

    According to NUPRC data, Nigeria currently produces an average of 1.4 million barrels per day; a figure well below the 1.8 million bpd target set in the 2024 national budget and the 1.5 million barrels daily quota allocated by the Organisation of Petroleum Exporting Countries (OPEC). 

    The commission believes that with targeted support, brownfield development, and quick wins from low-hanging assets, Nigeria can swiftly close this gap.

    Kura noted that the EITF’s independent review of upstream field operations corroborated the NUPRC’s assessment, revealing that over 900,000 bpd are currently shut-in due to regulatory delays, community issues, logistics challenges, and aged infrastructure.

    “If even half of that capacity can be restored within the next 12 months, it would significantly improve our foreign exchange inflows, reduce fiscal deficits, and inspire investor confidence. The beauty of the project is that it combines short-term gains with long-term structural reforms. This is not a cosmetic fix; it’s a systemic reboot,” he said. 

    The group also lauded the commission’s collaboration with international oil companies (IOCs), independent producers, and joint venture partners in rolling out the initiative. 

    According to the NUPRC, many operators have already submitted reactivation plans for idle wells and brownfield assets.

    Read Also: Fiscal Transparency Centre hails NUPRC as Reps Demand $4million remittance from oil firm

    “What this means is that we are witnessing a shift from regulation by fear to regulation by coordination. The oil industry is complex and capital-intensive, and you cannot get results without building trust. Komolafe has brought that trust, and at the same time, he is assertive on national interest. That balance is rare,” Kira said. 

    The EITF president urged the National Assembly and the Ministry of Petroleum Resources to give NUPRC full backing in terms of budgetary support, legal clarity, and inter-agency coordination. 

    He also called on the Nigerian National Petroleum Company Limited (NNPCL) to synergise with the project and reduce bottlenecks in field logistics and crude evacuation.

    “Let us not forget that crude oil remains the backbone of our national budget. If we fail to stabilise output, we will continue to run deficits and borrow recklessly. This project is not just a petroleum initiative; it is a fiscal rescue mission,” Kura said. 

    He also encouraged local communities in oil-producing states to support the project by cooperating with operators and prioritising peaceful engagement over sabotage.

    “We must move beyond the era of pipeline vandalism and oil theft. Host communities should see themselves as partners in progress. With proper benefit-sharing frameworks and community development agreements, the people will gain more from oil production than disruption,” he stated. 

    EITF called on other stakeholders in the civil society and media space to help monitor the implementation of the project and hold all parties accountable for timelines, safety, and environmental compliance.

    “We will not be silent if this project fails due to avoidable sabotage, lax enforcement, or political interference. Our role is to be vigilant, not just supportive. But as of today, this is one of the most promising things we’ve seen in Nigeria’s upstream oil sector in a decade,” he added.

    NUPRC has said that the project will be implemented in phases and monitored with a performance dashboard, allowing for transparency in progress reporting. 

    It also promises to publish monthly updates on recovered volumes and status of field reactivation across Nigeria’s key basins.

  • Addressing Nigeria Electricity Generation and Availability Challenges

    Addressing Nigeria Electricity Generation and Availability Challenges

    The country failed to meet her 2020 electricity generation target of 40 GW, and presently the
    installed capacity stands at about 13 GW, while the available capacity hovers around 6 GW.

    While the electricity average per capita consumption of the United States of America stands at
    12,497 kWh per year, that of South Africa stands at 3,200 kWh per year, that of Nigeria stands at
    a ridiculous value of 120 kWh per year which is 2.8 times lower than the average for SubSaharan Africa.

    The value for Nigeria was peaked in the year 2014 at 173 kWh per year, and with these data we can see the reason for the downturn of the country’ economy: A nexus exists between a nation’s electricity supplies and her level of growth and industrial advancement.

    Many manufacturing and production outfits in the country have been forced out of operation due to epileptic power supplies, and if care is not taken, many more will be forced to do so. The Nigerian government had at several times come-up with policy formations to address the problem of epileptic electricity supplies, and the populace have at many times greeted such with a high level of euphoria, however, this has always been disappointing.

    These policies have not been entirely faulty, but maybe some fundamental issues have not been addressed; the generation and supply mode. The country relies heavily on the centralized electricity generation mode which entails the shipment of all generated electricity to a central grid from where it is now transmitted to different sub-stations across the country. Although, a great level of reliability can be achieved with this mode, it is however, plagued by high losses during transmission and grid collapse which is very common in the country. Another electricity generation mode; decentralized/distributed generation which entails the use of the generated electricity in the vicinity of the generating plants can however, come to the rescue based on its merits; security, energy efficiency, and cost as now discussed.

    Energy Security; many parts of the country have their peculiar resources from which electricity can be generated; solar and wind in the north, solar, mini/micro hydro, and gas in the south. This makes it possible to have secured generation in different parts of the country that are not susceptible to security challenges in another part of the country that can be the bane of centralized generation.

    Energy Efficiency; the high level losses experienced on the nations’ electricity transmission grid network takes a huge toil on the efficiency of a centralized electricity generation network. These losses are however, reduced/eliminated in the decentralized/distributed electricity generation network making it to be more efficient.

    Read Also: Eight varsities to benefit from Education ministry, REA 24-hour electricity deal

    Cost; while the economics of scale favours centralized electricity generation, the capital cost requirements for its plant construction is huge and the construction period also high. The capital cost requirements for decentralized/distributed electricity generation plants are however, lower and lesser time is required for the construction. The cost competiveness for decentralized/distributed electricity generation is also boosted with the need not to invest in robust transmission infrastructure, asides the elimination of the cost of the attendant energy losses in the lines. The huge cost of shipment of electricity to rural areas have always hitherto, been a great challenge to rural electrification, however, it is expected that the government policies addressed to bridge urban and rural electrification will fully adopt decentralized/distributed electricity generation to bring down cost and help bring succor to the residents of the areas. Experience have shown that many projects in the country becomes abandoned due to scarcity of funds and long timelines. Decentralized/distributed electricity generation will allow for lower investment funds, speedy completion and fast return on investment and pave way for more investment.

    It is expected that the government participate at all levels and also create an enabling environment for investors by building mini grids for the adoption of decentralized/distributed electricity generation. This will help as a quick fix to the epileptic electricity supplies being experienced in the country due to the lower required investment cost and period of construction, better efficiency, and better secured mode. This is asides the better suitability of decentralized/distributed electricity generation from renewables which can help the country to reduce her carbon footprints and contribute to meeting the Sustainable Development Goals (SDGs) 1, 7, 8, 9, 11, 12, and 13 of the United Nations.

    Olumide A. Towoju is a registered Engineer and an Associate Professor in the department of Mechanical Engineering at Lead City University, Ibadan. (olumidetowo@gmail.com)

  • Seplat Energy commits to gas revolution

    Seplat Energy commits to gas revolution

    Seplat Energy Plc has reaffirmed its commitment to spearheading Nigeria’s indigenous gas revolution, driven by a vision of energy access for all, powered by gas, rooted in sustainability, and led by local expertise.

    The Managing Director of Seplat Energy Producing Nigeria Unlimited (SEPNU), Oladotun Isiaka, made this declaration during a panel session at the Offshore Technology Conference (OTC) held in Houston, USA. The session, had “Harnessing Nigeria’s Gas Potential for Domestic Utilization and Global Export Market,” as theme was organized by the Petroleum Technology Association of Nigeria (PETAN).

    Isiaka emphasised the need for stronger collaboration across the entire gas value chain to transform Nigeria’s vast gas resources into economic prosperity. He noted that Nigeria holds a strategic advantage in leveraging its gas reserves for both domestic development and international competitiveness. As a leading Nigerian independent energy company, Seplat Energy is making significant operational and investment commitments to the domestic gas sector, he said.

    He further stressed the importance of indigenous leadership, underpinned by supportive policies and financing structures, as vital to the growth of Nigeria’s gas sector.

    Read Also: FULL LIST: Nigeria, others not indebted to IMF

    According to Isiaka, Seplat is pursuing a Nigeria-focused growth strategy and is well-positioned to participate in upcoming divestment opportunities by international oil companies, as well as farm-in arrangements and licensing rounds.

    Highlighting the company’s role in domestic gas supply, Isiaka stated that Seplat is one of the largest suppliers of processed gas in Nigeria. The company operates the Oben and Sapele gas processing plants, which have a combined capacity of over 300 million standard cubic feet per day (MMscfd), supplying about 30per cent of the gas used in the country’s gas-fired power generation.

    Seplat is also advancing the ANOH Gas Processing Plant, a 300 MMscfd facility scheduled for completion in 2025. The project is a 50-50 joint venture between Seplat Energy and the Nigerian Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company Ltd (NNPC Ltd).

    Additionally, the company’s offshore gas resources present significant opportunities for development to serve both domestic and export markets, given their proximity to existing infrastructure.

    Beyond gas production, Seplat Energy is contributing to Nigeria’s Decade of Gas initiative through investments in Compressed Natural Gas (CNG) for transportation, Liquefied Petroleum Gas (LPG) for clean cooking, and electrification projects in underserved communities.

    “Nigeria has over 200 trillion cubic feet of proven gas reserves, ranking among the top 10 globally. The country stands at a critical juncture—to utilize gas in powering its population, driving industrialization, and securing a place in the global gas market. At Seplat, we believe gas is more than a transition fuel—it is the engine for Nigeria’s energy growth,” Isiaka stated.

    He added that gas must replace biomass and diesel, which are still widely used in Nigeria for cooking and power generation, respectively.

  • PETROAN: Foreign products ban must respect energy security

    PETROAN: Foreign products ban must respect energy security

    The Petroleum Products and Retail Outlet Owners Association of Nigeria (PETROAN) has warned the Federal Government to ensure its ban on the importation of foreign products does not affect energy security in the country.

    This was contained in a statement its National Public Relations Officer, Dr. Joseph Obele issued yesterday in Abuja.

    The statement quoted its National President, Dr. Billy Hary as saying: “Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products.

    “We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the wellbeing of Nigerians.”

    Read Also: UK to restrict visa applications from Nigeria, Pakistan, others

    PETROAN said it has cautiously welcomed the Federal Government’s decision to ban the importation of foreign goods produced locally, while emphasizing the need for careful implementation to avoid unintended consequences.

    Dr Gillis-Harry, applauded President Tinubu for the bold step. But he warned of potential pitfalls.

    He advised government on the import policy, stressing the need to avoid economic shock.

    While commending the government’s efforts to strengthen the domestic economy and promote local content, PETROAN emphasized the need for careful consideration to avoid unintended consequences.

    The association urged the government to ensure that the policy does not lead to shortages or price increases, particularly in the petroleum sector, where local refining capacity is still being developed.

    PETROAN advised that essential and sensitive products, such as petroleum products, pharmaceuticals, and other highly consumable goods, should be exempted from the ban or have a waiver to ensure their continuous availability.

    This is because some products may not be readily available locally, or their local production may be insufficient to meet demand, leading to shortages and price hikes.

    Other factors that may necessitate importing goods include: unavailability of specialised technology or expertise locally; higher quality standards of imported goods; economies of scale favouring imports; and strategic or critical nature of the product.

    Citing examples from other countries, PETROAN noted that even the United States, under the “America First” policy, has implemented targeted tariffs rather than blanket bans, allowing for flexibility and exemptions for critical goods

    Harry warned that the policy could worsen Nigerian inflation emphasised the need for energy security.

    The association called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.

  • Power sector gets roadmap

    Power sector gets roadmap

    • Adopts National Integrated Electricity Policy

    The Federal Government has formally ratified and  adopted a road map for the Nigerian Electricity Supply Industry (NESI) by  approving  the National Integrated Electricity Policy( NIEP).

    The policy which had been ready since December 2024 and submitted to President Bola Ahmed Tinubu was ratified on Monday at the weekly Federal Executive Council (FEC) meeting.

    The policy is a comprehensive framework designed to transform Nigeria’s electricity sector in alignment with National development objectives and international best practices as mandated by Section 3(3) of the revised Electricity Act 2023.

    According to a statement by Bolaji Tunji, Special Adviser,  Strategic Communications and Media Relations, quoting the Minister of Power, Chief Adebayo Adelabu, the policy implementation has already started  and will now gain momentum  with the President’s approval while the impact would soon be felt adding that the  Electricity Act 2023 requires the Federal Government through the Ministry of Power to initiate the process for the preparation and publication in the Federal Government ‘s gazette, an integrated National Electricity Policy and Strategic Implementation Plan,  within one year of the commencement of the Electricity Act.

    According to the Minister, “ the road map Policy addresses critical challenges in Nigeria’s electricity sector  through comprehensive framework for sector transformation with clear guidelines for sustainable power generation,  transmission  distribution as well as integration of renewable energy sources, its promotion , energy efficiency and enhancement of sector governance”,.

    Read Also: PDP: From bloom to gloom

    He described the passage of the Electricity Act 2023 as a pivotal moment for the Electricity sector as it signals a transformative change which has laid  the foundation for NESI, thus enabling exponential socio-economic growth.

    “This National Integrated Electricity Policy and Strategic Implementation Plan (NIEP) is a comprehensive roadmap developed to guide all stakeholders – the Federal and State Governments, market participants, investors, and indeed all Nigerians, through this transition”.

    Adelabu said the preparation of the policy represents the collective efforts of the Ministry in collaboration with a wide cross-section of stakeholders across the public and private sectors at national and State levels, civil society organizations,  academic institutions,  captains of industry, donor partners, development institutions,  private sector participants and consumer advocacy groups, to address the complex challenges faced by NESI, from infrastructure deficits, inadequate capital to regulatory inefficiencies.         

    “The NIEP is a very significant evolution from the National Electric Power Policy of 2001, which has been long overdue for replacement. The Policy outlines various initiatives to aid the growth and development of State Electricity Markets (SEMs). It fosters a decentralised but collaborative approach to energy management and resource planning. This policy  is a living document that will  evolve  with the Industry’s needs and challenges. It underscores the importance of collaboration, innovation, and a steadfast commitment to consumer protection and engagement”.

    The Policy is structured across eight chapters which comprehensively address the historical perspective of the Nigeria Electricity Sector, focus on key features of the Electricity Act 2023, Nigeria’s electricity Policy objectives, electricity market design, value chain analysis, stakeholders roles and responsibilities, climate change and low carbon economy initiatives,  gender equality  and social inclusion, local content development including research and development,  commercial , legal and regulatory frameworks.

  • Investigate Wunti, group tasks EFCC

    Investigate Wunti, group tasks EFCC

    A group, Community Development Committees (CDC), has  called on Economic and Financial Crimes Commission (EFCC), to investigate Bala Wunti over alleged abuse of office, procurement fraud and economic sabotage.

    A statement by Chairman, Board of Trustees (BOT) CDC, Joseph Ambakederimo, said the oil sector has suffered  due to corruption, abuse of office and economic sabotage. 

     The body alleged the corrupt practices were perpetrated by very senior officials with high level of impunity who to follow the laid procedures in this regard.

    It expressed optimism that   the new management of NNPC  will disinfect and improve Nigeria’s oil  and  gas sectors.  

    The statement urged EFCC to ensure due diligence in the ongoing investigation of some recently sacked top management staff of NNPCL, especially Bala Wunti, the immediate past Group  General Manager of Nigeria Petroleum Investment Management Services (NAPIMS), the regulator subsidiary managing upstream activities now known as NUIMS. 

    It threatened to seek legal redress to enforce a mandamus should the EFCC fails to act. 

    Read Also; Court orders EFCC to pay certification fee for documents in ex-aviation minister’s ‘trial

    The group’s statement read in part: “It’s common knowledge the Nigeria oil sector has been in a situation that can well be described as been in intensive care due largely to issues ranging from corruption, abuse of office and economic sabotage perpetrated by very senior officials with high level of impunity and disregard to due process”.

     “Before the wise step taken by  President Bola Tinubu , there were fears that Bala Wunti would be made to control the NNPCL as the group Managing Director but to the relief  of many across the sector including many NNPCL staff, and to the benefit of Nigerians, President Bola Tinubu for a very longtime in our country history has appointed those with the technical know-how and human conscience to lead the development of our beloved NNPC and we are very confident the new management will disinfect and improve our Oil & Gas sectors”.

     “News making the rounds concerning EFCC’ investigation of some recently sacked top management staff of the NNPCL will not be far reaching if individuals like Bala Wunti, the immediate past Group General Manager of Nigeria Petroleum Investment management services (NAPIMS) the regulator subsidiary managing Upstream activities now known as NUIMS. 

    “This agency could best be described as the backbone of the Nigerian oil industry, where a transparent regulatory and oversight on the international oil companies (IOC’s) will lead to the production of additional millions of barrels from our land and offshore assets”.

     It added: “In August 2022, a well circulated email and newspaper article by Citizen Group of Nigeria raised some troubling information in the form of Whistle blowing listing around over 10 different fraud and abuse of office carried out by Bala Wunti and how due processes and procedure were broken to accommodate Bala Wunti’s interests.”

     “To further corroborate our position in calling for the investigation and prosecution of Bala Wunti and others, we have hereunder summarised the concerns raised by the Whistle Blowers, copies of the original articles/email circulated by the whistle blowers will be submitted to the EFCC to enable them carry out full investigation/prosecution.

     “The whistle blower claimed Bala Wunti was engaged in fraudulently inflating the yearly cash call budgets, the whistle blower called for a forensic investigation of potential financial reporting miss-conduct carried out by Bala Wunti..

     “The whistle blower also raised some concerns about Bala Wunti inflating the cost of crude oil handling charges for every barrel of oil that was barged and included the cost in JV budget of up to $4 per barrel was added to the actual handling cost. 

    ” If all or a single claimed as made by the whistle blowers are accurate, then, the scheme employed by Bala Wunti is one very critical factor that has  driven up the cost of production of a barrel of crude oil in Nigeria and put the country at a disadvantage position amongst the comity of crude oil producing countries.

    “Therefore, the CDC is calling for a full investigation to be carried out on all of the points listed by the whistle blowers to ascertain the claim and the prosecution of offenders will rekindle investors’ hope in the Nigerian oil sector that has suffered stunted growth for the last two decades. 

    “It is almost three years since the concerns were raised by the whistle blowers and questions remain if they have been properly investigated by  EFCC. 

     “Similarly, as a follow up,  to ensure this call is acted upon by the Economic and Financial Crimes Commission, a formal petition (Class Action) has been filed at the Commissions’ Headquarters. Failure of the EFCC to act on our petition expeditiously, would leave us no option than to seek redress in court to enforce a mandamus..”

  • Surging Demand for Solar Solutions and Inverter Batteries as Nigerians Battle Soaring Energy Costs

    Surging Demand for Solar Solutions and Inverter Batteries as Nigerians Battle Soaring Energy Costs

    Rising Diesel Costs and Grid Failures Drive Shift to Off-Grid Power

    Nigeria’s solar energy sector is booming as fuel costs and power outages bite. Over the past decade, the demand for solar energy in Nigeria has surged, fueled by persistent grid failures and the rising cost of traditional power sources. Across the country, consumers are now hunting for the best solar solution – typically a rooftop panel array paired with a hefty inverter battery – to replace expensive diesel generators. Startups and installers note that enquiries for complete solar-plus-battery systems are at record highs.

    The removal of fuel subsidies in 2023 caused a sharp spike in generator operating costs, following President Tinubu’s announcement that the long-standing subsidy had officially ended. Since then the pump price of diesel (automotive gas oil) has jumped roughly 43% in one year, and petrol by even more. Official data show Nigerian diesel averaging about ₦1,441 per litre in October 2024 (up from ₦1,005 a year earlier). With diesel generators—long the backup of choice—now needing much more fuel, businesses and households say running them has become unaffordable. With diesel so costly, solar installations that require no fuel are seen as a cheaper option in the long run.

    Power grid instability has only added urgency. Nigeria’s transmission system is notoriously fragile – Reuters reported that the grid collapsed at least 10 times in 2024. Officials say faults, vandalism and underinvestment leave the country burdened by a failing grid. In practice, that means scheduled and unscheduled blackouts are routine. Distribution companies and consumers alike find that relying on diesel generators no longer guarantees power (and now costs a fortune), so more are turning to solar arrays. Even before the fuel crunch, Nigeria’s generators belched out a third of the power sector’s emissions – a costly, dirty stopgap that many are finally abandoning.

    Solar providers say the pitch has shifted from reliability to savings. According to TechCrunch, Arnergy founder Femi Adeyemo explains that when the company began, it sold solar mainly as uninterrupted power, not as a money-saving measure. Today, solar providers emphasize that their systems help households and businesses cut monthly energy expenses, whether they were previously relying on petrol, diesel, or unstable grid electricity. In other words, a properly sized solar-and-battery system often pays back its cost by cutting fuel and electricity bills. Industry group AFSIA (Africa Solar Industry Association) even notes rising interest in solar-plus-storage solutions as a cost-effective option for Nigerians seeking to escape both high diesel bills and erratic grid power. Startups backed by investors are racing to meet demand – for example, Bill Gates’s Breakthrough Energy Ventures recently helped Arnergy raise $18 million to expand Nigeria operations, citing surging client interest.

    On the ground, the best solar solution often means panels feeding into an inverter battery bank for 24/7 power. A major advantage installers highlight is the inverter battery, which stores solar power for use during nighttime hours or unexpected blackouts. For instance, World Economic Forum profiles note that companies like ICE Commercial Power build rooftop solar microgrids consisting of solar panels, smart inverters, and battery storage technology for clusters of shops and offices. These systems – often offered on pay-as-you-go plans with mobile meters – free small business owners from diesel costs. In this model, each customer simply pays for the clean kilowatt-hours they use, rather than refueling a generator.

    Read Also: N10b State House solar project signals shift toward energy self-reliance, says ECN

    Practical examples abound. In Ibadan, a nursery school head told reporters they have stopped using a diesel generator as an alternative due to costs – even though their campus often goes two weeks without grid power. Likewise, Nature’s Treat Café (with several branches in Ibadan) says it was spending about ₦2.5 million per month on generator fuel. Its owner is now planning to go solar to slash bills and cut generator pollution. Similar stories are common in Lagos and other cities. Faced with monthly fuel bills often exceeding a few hundred thousand naira, many families and enterprises see no choice but to invest in solar panels and robust inverter batteries.

    Industry data backs up these stories. Nigerian solar capacity is growing rapidly: Nigeria added about 63.5 megawatts of new solar by end-2024 – bringing the country’s total to roughly 385.7 MWp. Experts say recent policy shifts, particularly the removal of fuel subsidies, have played a major role in pushing more Nigerians to embrace solar energy as a more affordable and sustainable option. Analysts say the trend will continue as long as diesel and electricity prices stay high. However, despite the growing interest, experts warn that the high upfront cost of solar installations remains a significant barrier for many households and small businesses. But with consumer awareness rising and technology prices falling, a broader shift is underway. For now, amid soaring fuel bills and endless blackouts, Nigerians are embracing solar-and-battery setups as the best solution to their energy woes. Solar energy is increasingly seen as a vital step toward achieving stable and affordable electricity access for both homes and businesses across the country.

  • Fiscal Transparency Centre hails NUPRC as Reps Demand $4million remittance from oil firm

    Fiscal Transparency Centre hails NUPRC as Reps Demand $4million remittance from oil firm

    The Centre for Fiscal Transparency in Natural Resources (CFTNR) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for demonstrating strong commitment to transparency, institutional accountability, and the effective enforcement of the Petroleum Industry Act (PIA).

    This follows a directive by the House of Representatives mandating OML18 Resources Limited—formerly known as Sahara Field Production Ltd—to remit $4.02 million to the Federation Account. The payment represents 20 percent of its confirmed debt to the federal government.

    OML18 is one of 45 oil and gas firms flagged in an audit report and data submitted by NUPRC, which revealed a cumulative debt of $1.7 billion in unpaid royalties, gas flare penalties, and related liabilities.

    During a resumed session of the House Committee on Public Accounts on Wednesday, chaired by Bamidele Salam, OML18 was ordered to remit the $4.02 million within five days and reconcile its full outstanding obligations with its asset operator within 14 days. 

    The company is also expected to provide a comprehensive breakdown of its debt to the committee.

    According to figures confirmed by the NUPRC and acknowledged by the company, OML18 owes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and N173.7 million in gas sales revenue.

    In a statement issued on Saturday in Abuja, Dr. Halima Isa Lawal, Executive Director of the CFTNR, said the NUPRC’s actions reflect a renewed commitment to enforcing the provisions of the PIA and fostering transparency and investor confidence in Nigeria’s oil and gas industry.

    “NUPRC’s actions are proof that the reforms under the Petroleum Industry Act are taking root. For years, Nigeria struggled with weak oversight and opaque revenue tracking in the upstream sector. Today, we are beginning to see a new era of regulatory assertiveness,” Lawan said.

    “This is not just about recovering $4.02 million; it’s about resetting expectations. Operators now understand that obligations to the state will be enforced.”

    She described the Commission’s data-led regulatory approach as an example of how institutional leadership can serve the public good, praising Engr. Gbenga Komolafe, Chief Executive of NUPRC, for driving sector-wide compliance without political interference.

    “Under Engr. Komolafe’s leadership, NUPRC has shown that it is possible to uphold the rule of law in Nigeria’s most critical revenue-generating industry. The clarity, professionalism, and urgency with which the Commission is addressing outstanding liabilities deserve commendation,” Lawal said.

    “These efforts go beyond just figures; they restore the credibility of our institutions and show both investors and citizens that transparency is not negotiable.”

    Lawal also noted that Nigeria’s current fiscal outlook requires every dollar earned from the oil and gas sector to be accounted for. 

    She called for even stronger collaboration between regulatory bodies, parliament, and civil society to ensure sustained oversight and systemic change.

    “In a time of economic hardship and budgetary constraints, Nigeria simply cannot afford leakages in a sector that accounts for over 70 percent of government revenue,” she said.

    “What NUPRC has demonstrated is that with clarity of mandate and strong leadership, regulatory agencies can secure compliance and recover resources vital to national development.”

    Lawal further urged the National Assembly to continue supporting agencies like NUPRC by upholding their independence and encouraging timely implementation of audit recommendations.

    Read Also: NUPRC boss Komolafe puts Nigeria on global energy map, earns praise ahead of London awards

    “The House Committee on Public Accounts has shown courage and resolve in tackling this issue head-on. Their collaboration with NUPRC in scrutinising these debts has proven effective, and we encourage similar action across other sectors,” the statement added.

    “Let this signal a new era where rules are enforced, not ignored; where compliance is rewarded, and where failure to meet statutory obligations attracts swift penalties.”

    As Nigeria continues to reposition its oil and gas sector under the PIA, stakeholders say NUPRC’s role in enforcing transparency will be crucial to achieving long-term economic resilience.

    Lawal concluded by calling on other oil and gas firms to review their own records and engage proactively with regulators.

    “This is a turning point. Companies should see this not as punishment, but as an opportunity to align with the new standards. Transparency is no longer optional — it is the future of Nigeria’s extractive sector.”

  • DisCos fail to collect N54.18b in February

    DisCos fail to collect N54.18b in February

    The Nigerian Electricity Regulatory Commission (NERC) yesterday said the 12 electricity Distribution Companies (DisCos) failed to collect N54.18billion from their customers in February 2025.

    This was contained in the Commercial Performance Data of the DisCos for February 2025.

    The document said the revenue raked in indicated a collection efficiency of 77.97 per cent.

    Of the total N245.93billion bills the energy distributors issued in February, they were able to collect N191.75 billion, leaving the balance of N54.18billion uncollected revenue.

    NERC said in the month under review, 2,583.19GWh was the total energy received while 2,135GWh was the total energy billed 446.19GWh was not billed. According to the data, the billing efficiency was 82.73 per cent.

    On revenue recovery performance, NERC said whereas N116.18kwh was the actual tariff, the average collection was N88.2kwh.

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    The difference between the actual tariff and average collection which was N27.97kwh, was the cost of subsidy per kilowatt hour in February.

    The recovery efficiency in the month was 75.92 per cent, according to the NERC data.

    In the month under review, Ikeja DisCo received  the highest energy of 400.04Gwh and billed 332.37Gwh, recording a billing efficiency of 83.08per cent.

    It was closely followed by the Abuja DisCo which got 385Gwh and billed 278Gwh to record 77.08 per cent billing efficiency while Eko DisCo which received 365Gwh billed 325.45Gwh to record billing efficiency of 89.02 per cent.

    In terms of revenue collection, Eko DisCo raked in the highest of N41.24 billion, Ikeja N41.18billion and Abuja DisCo 35.67 billion.

    The least revenue collected regular firm was Yola DisCo with N60.2billion, Kaduna DisCo N117.21billion and Kano N127.78 billion.

    However Aba DisCo which has the least number of customers recorded N32.61billion.

  • UNIDO, ECN drive industrial energy efficiency in Kaduna 

    UNIDO, ECN drive industrial energy efficiency in Kaduna 

    The Energy Commission of Nigeria (ECN), in collaboration with the United Nations Industrial Development Organisation (UNIDO), is advancing its Global Environment Facility (GEF) project aimed at improving energy efficiency and promoting clean technologies in Nigerian industries.

    During a  Technical Working Group visit to Kaduna State, the team introduced Industrial Energy Efficiency (IEE) measures to FaLGates Foods Limited and other manufacturers. 

    The initiative, titled “Improving Nigeria’s Industrial Energy Performance & Resource Efficient Cleaner Production through Programmatic Approaches & Promotion of Innovation in Clean Technology Solutions,” focuses on reducing energy consumption and enhancing environmental performance.

    At a kickoff review meeting, IEE Consultant for ECN/UNIDO, Engr. Okon Ekpenyong, emphasised the role of energy management systems in cutting industrial costs and boosting competitiveness. 

    “Energy is a major component of production costs. Reducing energy use not only lowers bills but also improves product pricing and environmental sustainability,” he said.

    Ekpenyong highlighted that the project is being monitored by several agencies, including the Ministries of Environment and Power, the ECN, and the Standards Organisation of Nigeria. 

    He also revealed a partnership with the Bank of Industry to offer financial support to participating companies.

    A key element of the project involves building a national database for energy use and cost tracking. This data will help industries monitor consumption, identify inefficiencies, and make informed decisions.

    FaLGates Foods General Manager, Engr. Sanusi Abdulhamid, expressed enthusiasm about the initiative. 

    He noted that the company spends up to N60 million monthly on energy and sees the programme as a path to substantial savings.

     “We plan to start with energy audits and implement improvements in phases, beginning with our office buildings,” he said.