The Nation Newspaper

Category: Energy

  • Embrace cleaner energy firm urges Oyo residents

    Embrace cleaner energy firm urges Oyo residents

    A firm, Rokswood Energy, has urged residents of Ibadan, the Oyo State capital to embrace cleaner energy, saying it remained future of the nation.

    Its said with cleaner energy through the use of gas, life of generations yet unborn is secure and better.

    Speaking during “Advocate for Clean Energy Walk for Rokswood Gas Product launch, the Group Managing Director of the company, Iroko Gideon, stated that there is need to accommodate new trends, adding that the initiative is more saver and user-friendly.

    He lamented that climate change has been problem of the country over the years, saying people need to make it better for generations to come.

    Read Also: Oyo gov, sports commissioner to grace YSFON U-16 final in Ibadan

    According to him: “We are all working for better environment, better natural habitat, and better health, carbon is everywhere causing a lot of diseases like cancer and other diseases, we intend to better life of Nigerians.

    “This walk is to preach and encourage people to move towards cleaner energy (gas), some people still use firewood and all sort of energy, this is just to preach to the people to move to cleaner energy.”

    “We are in partnership with various government agencies and parastatal, we are also here to launch a product, it is just a prepaid system of using your gas, we are giving you seamless supply of gas at affordable rate anytime and anywhere.”

  • Skymark Energy & Power chairman lauds Tinubu over Kyari’s reappointment

    Skymark Energy & Power chairman lauds Tinubu over Kyari’s reappointment

    The Chairman of Skymark Energy and Power, Alhaji Muhammad Saleh Hassan, has hailed President Bola Tinubu for his reappointment of the Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company Limited (NNPCL), Malam Mele Kyari for another term. 

    The energy stakeholder, who made the commendation in a statement in Abuja on Tuesday, said that the appointment was one of the best things that had happened in the nation’s polity since the beginning of President Tinubu’s administration. 

    He added the reappointment came at the right time when some critics were expecting the president to put a square peg in a round hole in the country’s energy sector which needs Kyari’s wealth of experience and good track record performance to steer its wheels to the desired destination. 

    Kyari’s reappointment, which was announced  in a statement on Monday by the President’s Special Adviser on Media and Publicity, Mr Ajuri Ngelale, came barely few weeks after some members of the National Assembly called for his sack following flaks that he is responsible for the perennial crises ravaging the country’s energy sector. 

    Hassan expressed delight that Kyari’s reappointment was unarguably a function of his sterling performance and avalanche of  achievements since he has been holding sway in the country’s oil conglomerate. 

    Hassan, who is also the National President of One Nigeria Group (ONG), stressed the development had proved his critics, especially some members of the National Assembly, who had called for his sack, wrong.

    “On the other hand, it has proved my humble self right for my consistent calls on government for his retention in office because it is apparent that he is a blessing to not only the country’s oil and gas sector but also to national development and the present administration,” the Skymark Energy and Power boss said.

    “Not only me, but also every right- thinking Nigerians who appreciate good stewardship in the interest of this nation, the kind that Kyari has tenaciously demonstrated so far in the country’s energy sector, must thank Tinubu for shunning sentiment and unconstructive criticisms to retain Kyari in office,” Hassan stressed.

    “It is indeed a portrayal of the president’s value for qualified hands, technocrats, good track record, integrity, patriotism, transparency  and performance. I commented him from the bottom of my heart for demonstrating this rare sincerity and I believe strongly that Kyari, with all these qualities that have worked for him, would not let him nor the the country down,” he noted. 

    “With his reappointment, President Tinubu has demonstrated his confidence in liveraging  Kyari’s experience and expertise in the oil and gas sector to inspire capacity to fix the nation’s economy in a record time and also salvage it from the brink of collapse,” Hassan added. 

    Read Also: Tinubu appoints Akinyelure, Kyari, Mitee into NNPCL Board

    Hassan expressed optimism that the confidence that Tinubu’s administration had demonstrated through Kiari’s reappointment,  would surely motivate him (Kyari) much more to actualise his ideas and innovations and  to strengthen the nation’s oil company with a view to engendering economic growth and development.

    “Owing to Kyari’s legendary track records in the reformation of the nation’s oil giant, Tinubu has demonstrated confidence in him by reappointing him.  By so doing, he has proved his (Kyari’s) critics wrong, especially those who believe that he is responsible for the crises that have bedeviled the country’s oil and gas sector perennially as well as some members of the National Assembly who had called for his sack recently despite his innocence,” Hassan said. 

    The Skymark Energy and Power boss called on Kyari to justify the confidence reposed in him by maintaining the momentum of his wealth of experience and track record performance to proffer lasting solutions to the industry’s perennial crisis, particularly fuel scarcity and price hike as well as the poor states of the nation’s three refineries in Kaduna, Port Harcourt and Warri.

    “Through President Tinubu and Kyari’s mutual efforts, Saudi Aramco has agreed to invest in the NNPCL. It’s therefore crystal-clear that Kyari’s performance has transcended the NNPCL to a level of using his expertise knowledge to galvanise national economic growth and development and

    rescue the country from its perennial economic quagmire.

    “I want Malam Mele Kyari to understand that the sky can not even be his limit in his giant strides to set set greater records in his fresh appointment,” he said.

    He stressed that even before his new appointment, Kyari had been living up to expectations and had proved his critics wrong in many ways. 

    “Following his economic transformation stance, the immediate past president, Muhammadu Buhari, had rated him as a pivot of his administration’s achievements which also earned  him the OFR honour,” he said 

    “He  played active roles in the passage of Petroleum Industry Act (PIA) by former president, Muhammadu Buhari,  on August 16, 2021, as well as removal of petrol subsidy on May 29, 2023 by Tinubu’s administration.

    “He is the first NNPC CEO to go all the way to the creeks to monitor oil theft and pipeline vandalisation. He was instrumental in the transformation of the NNPC to NNPCL, the ongoing rehabilitation of the nation’s three refineries in Warri, Kaduna and Port Harcourt, curbed oil theft by introducing Saudi Aramco’s model using video surveillance to monitor pipelines carrying crude oil from wells to flow stations in the Niger Delta. 

    “Before he transformed the NNPC to NNPCL, Kyari had also introduced automated  monitoring of pipelines in the country’s oil sector. That is why there is no more pipeline vandalisation.

     “I have confidence that Kyari would continue to live up to expectations because he has the capacity to deliver from all cylinders,” Hassan said.

    “There is no doubt that Kyari has a lot up his sleeve to unveil in managing the NNPCL. I urge him to keep walking the talk by following the templates that he has put in place to transform the country’s oil and gas sector beyond the present level, especially by revamping the country’s three ailing refineries in Kaduna, Warri and Port Harcourt. 

    “With his high pedigree of ideas, innovations, doggedness, tenacity, commitment and wealth of experience as well as the confidence that the Federal Government has reposed in him over the years, it is obvious that the country’s energy sector is on the threshold of making history as the best  in the African sub-region,” Hassan said.

  • Tinubu, Kyari will stimulate economic prosperity – Hassan

    Tinubu, Kyari will stimulate economic prosperity – Hassan

    The Chairman and Chief Executive Officer (CEO) of Skymark Energy and Power, Alhaji Muhammad Saleh Hassan, is convinced President Bola Ahmed Tinubu and the Group Chief Executive Officer  (GCEO) of the Nigeria National Petroleum Corporation (NNPCL), Malam Mele Kyari’s combination of ideas has the potentialities to transform the nation’s economy from its current obscure status to limelight and enviable economic prosperity.

    Hassan, who is also the National President of One Nigeria Group (ONG), speaks on how the economy will soon bounce back. Excerpts: 

    President Bola Ahmed will be six months in office in less than two weeks time. What is your take in his performance pedigree? 

    President Tinubu is a great thinker, renowned technocrat,  progressive, development guru and team player. These rare qualities flow in his veins. He portrays them in all his administrative engagements. When he was governor in Lagos from 1999 till 2007, he set a record of development in staggering proportions. Before and as at 1999 in particular before he became the governor, many parts of Lagos were slums. Several other parts of the state used to be havens of area boys, criminals, robbers, thugs and other nefarious activities that made life horrible, unsafe and uncomfortable for the people of the state. But when he became governor, he took them off the streets and hideouts and gave them jobs through youth employment scheme.

    He appointed people that have skills and expertise knowledge into different sectors who worked with him and transformed Lagos into the highly developed city that it is today.

    He also set a development  template and galvanized reformation that made  Lagos one of the developed cities in the world today. 

    Since he became the president of Nigeria, Tinubu has been applying the same development apparatuses to fix the country.  

    It’s the kind of record he set in Lagos that he is also trying to set in the entire country now. Since he came on board, he continues to  demonstrate the same development mentality by appointing think tank personnel and technocrats into positions.

     Recently, the president urged his cabinet members to live up to expectations in their various positions and assignments or get booted out. 

    One of the legendary technocrats that has been making waves in the country’s oil industry is the Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari. Following his remarkable track records in the reformation of the nation’s oil giant, Tinubu has continued to liverage Kyari’s expertise knowledge in the industry in his administration’s efforts to proffer lasting solutions to the industry’s perennial crisis, particularly fuel scarcity and price hike as well as the poor states of the nation’s three refineries.  He reposes confidence in him (Kyari) as one of the pillars of his administration.

    Malam Mele Kyari’s performance has transcended the oil sector where he waxes strong in reformation of the nation’s oil giant, following his contributions to President Tinubu’s efforts to attract Saudi Aramco to the country for  investment. 

    What is your assessment of his (Kyari) efforts so far in the nation’s growth and development?

    It is crystal-clear that Malam Kyari has taken his performance beyond the oil sector by stimulating economic programmes for economic growth, following his proactive roles in attracting foreign investment to the country. 

    Recently, he travelled with Tinubu to oversee the Indorama deal in India and to also attract foreign investors to invest in gas. During the outing, he applied his expertise in sealing a deal with Saudi Aramco for investment. 

    I am quite aware that the Government of Saudi Arabia has already confirmed the pledged to invest in the revamp of Nigeria’s refineries, support Central Bank of Nigeria (CBN) reforms and provide financial support to sustain the government’s foreign exchange reforms.

    Saudi Crown Prince, Mohammed bin Salman made the pledge recently at a bilateral meeting with President Tinubu on the sidelines of the Saudi-Africa Summit in Riyadh.

    In supporting the Central Bank’s ongoing reforms of Nigeria’s foreign exchange regime, the Saudi Government will make available a substantial deposit of foreign exchange to boost Nigeria’s forex liquidity.

    President Tinubu and Kyari’s move to attract Saudi Aramco to invest in Nigeria portrays them as a huge combination to revamp the country’s economy.  Saudi Aramco’s investment promises to stimulate forex and strengthen the naira against dollar when the deal is actualised soon.  

    How would you describe Tinubu and Kyari’s team efforts in galvanising economic growth and development? 

    Kyari’s performance has gone beyond the NNPCL to a level of using his expertise knowledge to rescue Nigeria from her perennial economic doldrums. That is why Nigerians should commend office holders that are performing very well instead of criticizing them. They should also commend President Tinubu for retaining Kyari who has been a magic wand in repositioning  the nation’s oil sector and stimulating foreign investment agenda to rejuvenate the nation’s economy. Tinubu and Kyari’s combination is one of the best things that has happened to Nigeria at a time that the country is striving to survive the current economic malaise and find its feet in economic breakthrough and prosperity. Kyari’s is  the magic wand that is being liveraged to achieve this milestone.

    Do you think foreign investors, especially Saudi Aramco, have confidence in Nigeria to invest in her economy, following reports of corruption and insecurity in the country?

    President Tinubu has been able to bring insecurity and corruption under control to a larger extent.  That is why foreign investors are now willing to come and invest in the country. This is against the back of Kyari’s passion to add value to the nation’s economy with a view to ensuring that the country becomes an export-driven economy. Tinubu and Kyari’s combination is a good omen to the country because it’s through their mutual efforts that Saudi Aramco has agreed to invest in the NNPCL. 

    Saudi Aramco is not just bringing   fund, they also  have automated system for metering their crude oil. They have a component whereby from the point of exploration, what is explored is metred and what is refined is also metred under a close monitoring and digital automation to curb oil theft and vandalisation of oil pipelines. 

    Kyari is always in the eyes of the storm and heavily criticised over the nation’s perennial fuel crisis. Do you think he has proved his critics wrong? 

    Yes, of course. He has proved them wrong in many ways beyond mention. He is the first NNPC CEO to go all the way to the creeks to monitor oil theft and pipeline vandalisation. He was instrumental in the transformation of the NNPC to NNPCL, the ongoing rehabilitation of the nation’s three refineries in Warri, Kaduna and Port Harcourt, curbed oil theft by introducing Saudi Aramco’s model using video surveillance to monitor pipelines carrying crude oil from wells to flow stations in the Niger Delta. He also played active roles in the passage of Petroleum Industry Act (PIA) by former president, Muhammadu Buhari,  on August 16, 2021, as well as removal of petrol subsidy on May 29, 2023 by Tinubu’s administration. Before he transformed the NNPC to NNPCL, Kyari had also introduced automated  monitoring of pipelines in the country’s oil sector. That is why there is no more pipeline vandalisation. Following his economic transformation stance, the immediate past president, Muhammadu Buhari, had rated him as a pivot of his administration’s achievements which also earned  him the OFR honour. He has always proved his critics wrong through his diligence. Instead of critics to criticize him and President Tinubu, they should commend them for the good jobs they are doing.

    What is your assessment of the president’s appointment inclination so far? 

    The appointments he has made so far are in order, especially his consideration for the youth populace in his administration. For instance, the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, is about 46 years old. There are some other youths that he has also appointed into other strategic positions. With this move, he is carrying the youth along in his administration and making them productive.  If the youth is given a place in government, especially through youth employment, insurgency, banditry, robbery and insecurity challenges can be minimised. It is  pleasure that Tinubu is already doing this. With the hope that the youth are getting, it is  certain that the president can achieve this easily even without using any military might.

    What is your message to Nigerians in the face of the current hardship in the country?

    The president is about six months in office. He inherited a lot of challenges in different sectors of the economy from the past governments. If the problems did not start one day, there is no way he can solve them within one day. I urge Nigerians to be patient since the president is taking several proactive measures to fix the economy. Although it may take time, the end is definitely possible. It is too early to judge him as a non- performer. He has all it takes to deliver the dividends of democracy to Nigerians. He didn’t remove fuel subsidy. Subsidy was removed because the budget that he met on ground had no provision for it. However he developed a template to assuage the plight triggered by the subsidy removal by approving palliatives for the impoverished segment of the populace in all the states to cushion the effects on the people. 

    With poor handling, the palliatives have not gotten to so many people.  How then can the president be seen as being able to proffer solution to fuel subsidy removal hardship?

     It is not the president’s duty to share the palliatives by himself but the people that were given to carry out the assignment. He can not come down to the states, local government areas and wards to personally share the palliatives. It is governors and government officials that have to take the responsibility. Nigerians are to hold them accountable because, the president has done his beat concerning the palliatives. However, he owes Nigerians a duty to monitor the distribution of the palliatives with a view to ensuring that they get to the required beneficiaries. Otherwise, the purpose will be defeated. He can do this by using his SAs in welfare-related offices to do this.

    Read Also: Hassan is Jaiz Bank’s Ag. MD

    What do you think the president should focus on now during these first few months in office? 

    He should pay close attention to his cabinet to see that they are on the same lane with him in the journey of his administration. Although he admonished them recently to live up to expectations in their various beats or get booted out, that is not enough. He should assess their performances periodically which could go a long way in engendering the results that he expects from them.   

    Do you think the appointments he has made so far into his cabinet and other positions are balanced or lopsided?

    As far as I am concerned, the appointments are balanced especially from the perspective of qualification, competences, skills and experience. Appointment is not supposed to be based on ethnicity, religion or tribe but on basic qualities that I have mentioned which we can all see in those that he has appointed so far. Kyari, the GCEO of NNPCL, is an example. He is not from the South West where the president hails from. Yet, when he discovered his competence,  he retained him in his position as the GCEO of the NNPCL and maximising his potentials. Apparently, Kyari would continue to live up to expectations because he has the capacity.

  • I am the only vibrant reggae musician in Africa –King Wadada

    I am the only vibrant reggae musician in Africa –King Wadada

    Ever since he surfaced in the Nigerian music scene with his runaway hit song, Holy, Holy, 18 years ago, reggae musician, song writer, Austin Peter who is popularly known as King Wadada has been waxing strong with his pure reggae tunes.

    With two albums to his credit and about to launch his latest effort, One Love, King Wadada who is also preparing for a tour of Europe, Canada and the USA with Miracle Day Music speaks with SAM ANOKAM about his career, why reggae music is not on  main stream music in Nigeria among other relevant issues.

    have out and about doing what I know how to do best. At the moment I am preparing to release my new album titled One Love. The album consists of 16 solid tracks.

    I have released two albums, Holy, Holy and If Men Were God. Now I am coming out with One Love album.

    At the same I am also preparing for my international music tour through Miracle Day Music. We would be touring UK, Europe, Canada and the USA. It promises to be interesting and action packed musically. We would be thrilling our fans with good reggae music.

    You have been in the music for 18 years and still waxing strong, how has the experience been?

    To be honest with you, it has really been a wonderful experience. The industry has been the matter of the survival of the fittest especially as it concerns reggae music. But we are still trudging on

    I tell you, it has been a mystery and every piece fits together to create whom we are, what we do, what we say and how we feel. In all, we thank God because HE has been faithful.

    How is the reggae genre faring currently in the music circle?

    Nothing is happening to reggae music. Reggae is what it is. It is on. It is one music genre that cannot die. It is only that the youth or the new breed artistes refuse to play it probably they think because it is not as lucrative as hip-hop as what is happening to the Nigerian music now where a lot of artiste are raking in millions from their genre of music. That makes some people keep saying that reggae music is dead, no music dies. All music is on and doing well in their categories.

    There is no reggae artist that have come on air with massive promotion and it refuses to become popular, not one.

    Suppose a reggae artist comes on the scene and gives his song massive publicity and the song didn’t make wave, then, you can say that reggae music is not working. But so far, none!

    The problem reggae music is facing is that it goes along with positive messages which the world needs now however, the youth do not want to hear those messages; radio station and TV stations that are supposed to play such songs do not play them instead they are feeding their audiences with one style of music which is not proper.  Then when it comes to music award events, they don’t put reggae into consideration.

    With all of these encumbrances, why are still playing reggae?

    A reggae artist will always be a reggae artist. It is not for the money or fame but the message and passion.  We cannot change from what we are originally are to something else because others are into it and making money. We have a calling to spread the message of love in our own way and we are doing it. We will continue to do it.

    Read Also: GWR: Oyo Chef begins 200-hour marathon cooking

    Reggae music must go on until the time to blow up the atmosphere with our songs and that time is now because when I drop this album, reggae music will take back its place in the music industry. It will rise again because I am the only one that can blow the horn of reggae music and the youth will follow and the media would have no choice but to help in propagating it.

    How do you feel with a lot of young ones releasing hiphop songs but very few are into reggae?

    I feel that they are playing their choice of music. In My latest album, I touched on every area of life. I even sang the mind of the youth in one of the tracks, ‘Yahoo.’

    I also did songs for the women folks. As much as I praised them, I also criticised them as necessary. When you hear the sons, you will understand. I also pleaded on their behalf to be given opportunity to express themselves especially in leadership. As usual, I praised God who is everything to me and mankind.

    You know why again, the young and up and coming artistes are not into reggae is because they have not really seen in their generation a successful reggae musician they can emulate. They are coming up at a time there was no reigning reggae musician or music or song making waves so, they embraced what they met or introduced to without knowing that there is another brand of music which they need to know that is far better than what they are playing. So, people like us need to blow as it were for them to believe that reggae music is king.

    What do you think is the future of reggae music in Nigeria?

    The future of reggae music in Nigeria is very bright

    Anytime any reggae artiste releases a hit that is widely promoted, every other one will start playing reggae.

    Then the media – radio and television stations including streaming platforms and other local stations needs to change their minds set towards reggae music.

    They should patronise all genre of music very well and equally and not only with one style of music.

    Once o am out with a hit and a good song that will be a national anthem , everyone will change their style.

    We have Rhythm and Blues, Hilife, Akpala, Fuji, Reggae among others, all these music genre have their fans and so should be considered in big award events.

    They should also nominate them in awards too

    They should have time for old artistes and the new alike as well as include them in concerts and awards.

    You said you are the only vibrant reggae musician in Africa, what about Orits Wiliki, Righteous Man, African China, Salem, Takana Zion, Thiecko,  Bongo Maffin and many others?

    These guys you mentioned are also good reggae artistes. They are all doing great in Africa with their projection of reggae music.

    I am only saying that I am the only vibrant reggae artiste in Africa currently. I am also the only one that can play the reggae of now and sing the minds of the people with reggae music.

    I don’t sing to the head, I sing to the heart and everyone has heart.

    How have you been able to stay off scandals?

    We don’t run away from scandals, though I have not been associated with it in anyway but I kind of like it. It builds and teaches at the same time. As I said earlier, every piece fits together to create and build whom were are, scandals to me are like a ladder to success.

    Lastly, what Legacy would King Wadada plans to leave?

    I love making people happy. I also love to worship God and obey His commandments as well as to make people have interest in the things of God when they listen to my music.

  • Chidume Uzozie: The future of renewable fuels in Africa

    Chidume Uzozie: The future of renewable fuels in Africa

    In this interview with IBRAHIM ADAM, Chidume Uzozie—a seasoned corporate development and project management professional with over a decade of experience in renewable energy, power, oil & gas, solid minerals, and infrastructure projects development—shares his insights into Africa’s energy future. With a passion for sustainable energy and a deep understanding of the continent’s unique energy landscape, Uzozie discusses how renewable fuels could shape Africa’s journey toward energy independence and economic growth.

    Thank you for agreeing to speak with  us, Mr. Uzozie. To start, could you give us an overview of Africa’s current energy situation and why renewable fuels are so important?

    Africa’s energy landscape is unique but also challenging. Although the continent is rich in natural resources, over 600 million people still lack access to reliable electricity. This energy poverty has far-reaching consequences for health, education, and economic development.

    Renewable fuels—like biofuels, green hydrogen, and solar generated synthetic fuels—offer a pathway to energy security and independence. With abundant sunlight, wind, water, and vast areas of arable land for cultivating biofuel plants, Africa has significant potential to harness renewable resources. Embracing renewable fuels can transform our energy landscape, reduce our reliance on fossil fuels, and provide sustainable, affordable energy for communities across the continent. This will also become the catalyst for African industrial transformation.

    What do you see as the key advantages of renewable fuels over traditional fossil fuels in the African context?

    Renewable fuels bring several unique advantages. First, they offer energy sovereignty. Africa currently imports a substantial amount of its energy, which is both costly and exposes countries to price volatility. Renewable fuels produced locally can reduce this dependency, stabilizing economies and enabling more predictable energy costs.

    Second, the environmental benefits are significant. Fossil fuels have a massive carbon footprint, and as Africa develops, it’s crucial we avoid high-emission energy paths. Renewable fuels provide a clean alternative, helping to mitigate climate change and protect ecosystems. Additionally, renewable projects create local jobs, driving employment in rural areas and allowing communities to benefit directly from energy investments.

    What types of renewable fuels do you think will be most beneficial for Africa?

    Given Africa’s resources, biofuels, green hydrogen, and solar-derived fuels show the most promise. Biofuels from agricultural waste or specific crops can help rural economies generate fuel without competing with food production. These fuels are particularly beneficial for areas reliant on biomass for cooking, as biofuels offer a cleaner alternative.

    Green hydrogen—produced through electrolysis using renewable energy—has incredible potential for industrial applications and even export. With Europe and other regions investing heavily in hydrogen, Africa could become a major supplier, especially north and Southern Africa where solar and wind resources are abundant.

    Synthetic fuels generated from solar power could provide a viable alternative for transportation. Many African countries rely heavily on diesel imports, and solar-based synthetic fuels could provide a lower-cost, sustainable substitute in the long term.

    Finally, a direct conversion of solar to electricity via batteries also provides a huge opportunity for electricity generation, especially in decentralized mini-grid models, which are less cumbersome to build compared to traditional fossil fuel powered electricity generation plants. This mini-grid model ensures easy power access for the hitherto inaccessible rural areas whose economic activities are hampered by lack of power.

    How close is Africa to adopting these renewable fuels at scale, and what challenges remain?

     We are at an exciting but early stage. There have been pilot projects in countries like Kenya, South Africa, and Morocco that showcase the feasibility of renewable fuel production. However, scaling these solutions continent-wide requires overcoming several challenges, such as infrastructure limitations, access to financing, and policy frameworks.

    Infrastructure is critical—producing green hydrogen or biofuels requires production facilities, storage, and distribution networks. Developing these across rural and urban areas takes considerable investment, which leads to the second challenge: financing. Renewable projects need significant upfront investment, and with limited budgets, African countries often prioritize urgent social issues. However, global climate funds and private investors are starting to recognize Africa’s potential and invest accordingly.

    Lastly, policy support is essential. Governments must create incentives, remove bureaucratic hurdles, and establish favorable frameworks for renewable fuels. Policies that encourage partnerships between African nations and international technology providers would speed up development significantly.

    You mentioned international partnerships. What role do you see for international investors and technology providers?

    International investors and technology providers have a huge role to play. Africa needs access to advanced renewable technologies and expertise in biofuel, hydrogen production, and energy storage. Partnerships can drive faster adoption of these technologies and attract the financing necessary to build projects at scale.

    I see great potential in public-private partnerships where governments provide incentives or co-investment opportunities, and private entities bring in capital and know-how. These partnerships not only help launch projects but also build local capacity, enabling knowledge transfer and fostering Africa’s own technical expertise.

    What are the most promising recent projects or initiatives that indicate progress toward renewable fuels in Africa?

    Several promising projects show how renewable fuels can fit into Africa’s energy mix. For example, Morocco’s green hydrogen project has gained international attention and could establish the country as a key player in the global hydrogen market.

    In South Africa, biofuel initiatives in the sugarcane and forestry sectors show how biofuel can provide local solutions while reducing dependence on imported fuels. And in Kenya, solar-powered synthetic fuel pilots are demonstrating how solar resources can be harnessed for fuel production.

    These projects not only provide practical solutions but also serve as blueprints for other African countries. The momentum is there—now, we need to accelerate the scaling and replication of such initiatives.

    How do you see renewable fuels transforming Africa’s economic landscape over the next decade?

    If adopted at scale, renewable fuels can dramatically reshape Africa’s economic landscape. First, energy independence would mean keeping billions of dollars in the continent. Countries could redirect these funds toward education, healthcare, and other critical needs.

    Renewable fuels also pave the way for industrial growth. Consistent, sustainable energy can attract new industries, particularly in areas like manufacturing, mining, and logistics, where energy costs are a significant factor. Regions once deemed too remote or costly to develop due to a lack of reliable power could now become hubs for commerce and industry.

    Additionally, job creation in the renewable energy sector could be transformative. Unlike traditional fossil fuels, renewable fuels often require more localized manpower—from fuel crop farming to facility maintenance and infrastructure development. This will create jobs across various skill levels, providing employment opportunities and driving inclusive economic growth.

    Finally, what do you believe needs to happen for renewable fuels to become mainstream in Africa?

    A few essential things must align. First, we need clear and consistent policies across the continent. African governments should support renewables through subsidies, tax breaks, and legislation that encourages private investment.

    Second, capacity building is key. Local talent must be trained in renewable technologies, and this requires investment in education and technical training programs focused on renewable energy. Skilled workers will help make renewable projects more viable and sustainable over the long term.

    Lastly, strong partnerships between African governments, international investors, and technology providers are essential. By working together, we can overcome the barriers to entry, increase the pace of renewable fuel adoption, and establish Africa as a global leader in sustainable energy.

    Thank you, Mr. Uzozie, for your insights. It has been enlightening to hear your perspective on renewable fuels and their potential to shape Africa’s future.

    Thank you. It has been a pleasure sharing my thoughts on this important topic. Africa is at a pivotal point, and renewable fuels can play a foundational role in the continent’s sustainable growth. The future is bright if we work together to make it a reality.

  • Telcos explore renewables to lower cost, cut carbon emission

    Telcos explore renewables to lower cost, cut carbon emission

    Hit by the suffocating cost of energy, which accounts for between 40 and 50 per cent of their Operating Expenditure (OPEX), telecom operators have turned to alternative energy sources to power their infrastructure, especially Base Transceiver Stations (BTS) and ultimately, lower their cost of operation and reduce carbon emission. However, much as their investments in technologies such as renewable energy could be the tonic to fast-track Nigeria’s Net Zero transition, they are not without challenges. LUCAS AJANAKU reports.

    Telecom operators appear to be in dire straits, no thanks to the ever-increasing energy cost. The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo never misses any opportunity to raise the alarm over the rising cost of doing business in the country and the need to adjust end-user tariffs to reflect this cruel reality.

     But, Adebayo seemed to have won a new convert in the person of the Executive Vice-Chairman of the Nigerian Communications Commission (NCC) Prof. Garba Dambatta on this issue.

    At a public function in Lagos, the chief telecom sector regulator openly admitted that the operators were indeed, going through rough times.

     “For the first time, the operators are posting losses,” Prof. Dambatta quipped, adding that he has drawn the attention of the Minister of Communication, Innovation and Digital Economy, Dr Bosun Tijani to the development with a view to possibly implement a marginal tariff hike.

     The prevailing high energy cost is taking a huge toll on the Mobile Network Operators (MNOs).

    For instance, available records show that energy cost accounts for between 40 and 50 per cent of MNOs’ Operating Expenditure (OPEX), with the industry regulator NCC indicating, in its 2022 Subscriber/Network Data Annual Report, that telecom operators’ energy cost increased from N1,658,235,000,000 in 2021 to N1,996,659,000,000 at the end of last year.

     The report, which was prepared by NCC’s Policy Competition and Economic Analysis Department, and accessed by The Nation said the figure indicated an increase of 20.41 per cent from the figure reported in 2021.

    The Commission’s data also showed that as of December last year, the total number of Base Transceiver Stations (BTS) owned by MNOs increased to 127, 294 from 114,412 in December 2021 across the country; representing an increase of 11.25 per cent from the previous year.

     As a result of the comatose state of the power sector which makes the 24 electricity generating companies (GenCos) hardly supply 4,000 megawatts (Mw) to the national grid, MNOs, like other businesses, have to rely wholly on fossil fuels as a major energy source while public power supply remains a backup.

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     Now, the snag is that the fossil fuel used to fire these BTS is mostly Automotive Gas Oil (AGO), otherwise known as diesel. The average retail price paid by consumers for AGO increased by 2.60 per cent on a year-on-year basis from a lower cost of N774. 38 per litre recorded in the corresponding month of last year to a higher cost of N794. 48 per litre in July 2023, according to the National Bureau of Statistics (NBS) report.

     The price is even projected to hit N867 per litre in Lagos State and N875 in the Southwest region in the foreseeable future, a situation, oil marketers, acting under the aegis of the Major Oil Marketers’ Association of Nigeria (MOMAN) blame on fluctuations on the product’s ex-depot prices.

    The Head of Operations, ALTON, Gbolahan Awonuga said the rising cost of AGO remained a major concern for the MNOs which consume no fewer than 40 million litres per month.

     This has pushed telecom operators into panic mode, forcing them to turn to alternative energy sources to remain in business by investing hugely in technologies such as renewable energy, and in doing so the MNOs may have, inadvertently taken the driver’s seat of Nigeria’s Net- Zero transition, which essentially targets to significantly cut greenhouse gas emissions.

     For instance, with a market leadership that boasts 84, 663, 653 subscribers, representing 38. 52 per cent market share, MTN Nigeria has since thrown its hat in the search for alternative energy sources.

     The MNO said it is investing in clean energy technologies as part of its efforts to get around the choking cost of energy to run its operations and also reduce emissions, thereby contributing to helping Nigeria achieve its net-zero commitments.

     In its 2023 Climate Change Report, the ICT company shared insights into how it is partnering with renewable energy, Independent Power Producer (IPP) programme to deploy a Compressed Natural Gas (CNG) power plan to supply both its corporate office, MTN Plaza and main data centre in Ikoyi Lagos.

     MTN said, for instance, that its use of three 1.1 megawatt (Mw) gas generators has significantly reduced greenhouse gas emissions and lowered energy costs by more than N570 million.

     That’s not all. MTN Nigeria has also installed motion light sensors in buildings and switching centres to optimise power consumption. In addition, it installed a 56-kilowatt proof-of-concept solar project, delivering more than 4, 000 kilowatt hours of clean electricity each month.

     The Chief Executive Officer of MTN Nigeria, Karl Toriola put the company’s investments in this direction in perspective when he said: “Our commitment to Nigeria goes beyond connectivity. We recognise the environmental challenges our country faces, and we’re dedicated to being part of the solution. Our investments in sustainable energy and infrastructure are not just good for business; they’re essential for the future of Nigeria.”

     The Nation learnt that MTN Nigeria’s Net-Zero emissions target is part of MTN Group’s Project Zero, which focuses on decreasing greenhouse gas emissions across its footprints, thus enhancing operational efficiency.

    The company aims to do this by reducing energy usage, substituting non-green energy sources and investing in certified climate protection projects with high environmental and social standards to offset the emissions that cannot be avoided.

    In order not to be left behind in the race to cut costs and achieve Net-Zero objectives across its operations, Airtel Nigeria announced a deal with WATT Renewable Corporation (WATT) to power parts of its operation via renewables.

     The Director of Corporate Communications and Corporate Social Responsibility (CSR), Airtel Nigeria, Femi Adeniran said the involvement of Airtel Nigeria with WATT was limited to only 30 sites as a proof of concept (PoC) of WATT’s Energy-as-a-Service offering. Of the 30 sites inaugurated, 18 are currently up and running.

     He added that it was not a nationwide contract with WATT Renewable Corporation.

     “Airtel Nigeria is, indeed, committed to its sustainability goals and continues to pursue its Net-Zero objectives across its operations. As we progress in our path towards achieving these, we will keep the public updated,” he said, insisting that the company did not award a contract to WATT to deliver over 32megawatt (Mw) installed capacity of solar PV and storage across 600 cell sites across Nigeria.

    Telecom operator, 9Mobile is also not left out in the race for alternative energy sources designed to lower the cost of operation and at the same time reduce carbon emissions.

     Despite having 12.8 million subscribers, representing 6.18 per cent market share, which makes it the smallest MNO, the Manager of Field Operations, 9Mobile, Okechukwu Nzeduba lamented that energy cost, maintenance and other associated costs account for 86 per cent of the company’s network OPEX.

     Nzeduba, who spoke at a roundtable with the academia, industry and other stakeholders organised by the NCC in Lagos said getting a clean AGO has been a herculean task; noting that it is also expensive to run the generators on fake or off-spec diesel.

     According to him, fossil fuel costs are so high, even as he added that people didn’t know that household cooking gas, Liquefied Petroleum Gas (LPG) could be used to power generators until the government removed fuel subsidies.

     At the said roundtable, operators, experts and other stakeholders in the telecoms sector lamented the lack of access to electricity in sub-Saharan Africa, including Nigeria and the huge cost of powering telecommunication base stations with diesel.

     According to them, investing in renewable energy would help telecom operators to save costs. They identified some of the clean energy sources operators could invest in to power their base stations including solar, hydro and wind turbines.

     Prof. Danbatta said unequivocally that alternative clean energy would address the paucity of energy in the telecoms sector. According to him, the telecom sector, like many other sectors, has a significant role to play in transitioning to a sustainable energy future.

     The NCC boss, who was represented by the Executive Commissioner of Technical Services at the NCC, Ubale Maska emphasised that the Commission’s goal was to safeguard the environment for consumers and other users of telecom services while also contributing to the achievement of net-zero emissions.

     Net-zero emissions are achieved when more carbon dioxide is absorbed from the atmosphere each year than is emitted.

     According to the World Economic Forum (WEF), the term net zero applies to a situation where global greenhouse gas emissions from human activities are in balance with emissions reductions.

     At net zero, carbon dioxide emissions are still generated, but an equal amount of carbon dioxide is removed from the atmosphere as it is released into it, resulting in an increase in net emissions. Reaching net zero on a global scale is a central part of efforts to prevent global warming exceeding the 1.5C climate target.

     According to the WEF, global action to combat climate change has prompted a wave of national commitments to reach net zero. The US and many others are targeting 2050, with countries such as China and India decades later.

     For instance, the Manager of Power Planning, MTN Nigeria, Gideon Shedrack said renewable energy is part of the company’s carbon emission strategy targeting net zero by 2040.

     He said although the company planned to extend its deployment to all of its operations, the cost of switching to alternative energy is high, adding that space constraint was another issue to contend with.

     Shedrack also lamented that there are hardly any good batteries in the market. According to him, the battery design life span is supposed to be between 10 and 15 years, but temperature shortens the battery life span to only three years. He insisted that batteries remained a major challenge to the success of the switching and achieving net-zero emission.

     Nzeduba of 9Mobile could not agree less. He said the theft of batteries and vandalism remained daunting challenges.

     According to him, some people have discovered that batteries could be used to provide lighting to their homes and have, accordingly, resorted to stealing or vandalising the same. Besides, solar panels, he said, must be cleaned once or twice a year. He, however, urged the NCC on the regulation of batteries.

     While noting that investment in renewable energy as an alternative to the prevailing high energy cost is, indeed, capital-intensive, the 9Mobile chief, however, admitted that Return on Investment (RoI) in the long- term makes it a worthwhile venture.

     Apparently, to cut costs, he said the MNO is currently limiting its renewables to the provision of electricity to outdoors such as switches. According to him, hybrids play an important role in BTS but limit batteries to site solutions that don’t require a high volume of electricity. 9Mobile, he also said, is veering off from providing passive services to third parties. He urged the NCC to look toward the passive provision of infrastructure too to help the industry.

     It has been estimated that about a third of the world’s population has unreliable power supplies —or no access to electricity at all.

     For Nigeria, the stats are really frightening as the country has the lowest access to electricity globally with about 92 million people out of the country’s 200 million population lacking access to power.

     Power paralysis has remained a perennial problem in the country, stifling industrial growth, limiting business expansion and profitability and fuelling rural and urban unemployment. The problem has manifested through unstable supply and lack of access to the grid, a reason for the establishment of the Rural Electrification Agency (REA) in 2005 with the sole aim of taking electricity to the rural and unserved communities.

     According to the Energy Progress Report 2022 released by Tracking SDG 7, Nigeria’s 92 million population without electricity was followed by the Democratic Republic of Congo’s 72 million, Ethiopia’s 56 million and Pakistan’s 54 million access deficits.

     The report was produced in conjunction with the International Energy Agency (IEA), the International Renewable Energy Agency, the United Nations Statistics Division, the World Bank and the World Health Organisation (WHO).

    The report, which covered the year 2020, noted that access to electricity in Nigeria remained poor because electrification provision failed to keep pace with the population explosion. This was in contrast with Kenya and Uganda’s fastest progress in electrification due to their annualised increases of more than three per cent points between 2010 and 2020.

     “The 20 countries with the largest access deficits were home to 76 per cent of the global population living without access to electricity (or 560 million people) in 2020. Most of the top 20 deficit countries are in Sub-Saharan Africa.

    “The largest unserved populations are in Nigeria (92 million people), the Democratic Republic of Congo (72 million) and Ethiopia (56 million). The gains in the electrified population outpaced population growth in Ethiopia between 2010 and 2020; the same cannot be said of the Democratic Republic of Congo and Nigeria, where electrification advances failed to keep pace with population growth.”

     The report noted that between 2010 and 2020, electrification proceeded slowly in Nigeria but that as population growth outpaced gains in access, the number of people without electricity grew by three million a year. It attributed this to fragility, underdevelopment and conflict.

     With the rising number of phone users, BTS have to be powered by such means as diesel-driven generators.

     However, as diesel prices rise and network infrastructure spreads to more remote areas, other alternatives are required, not only in order to save money, but also to help combat climate change.

     Worried by the rising cost of diesel, in September 2008, the GSM Association (GSMA) launched a programme called Green Power for Mobile to promote the use of renewable energy sources by the mobile phone industry.

     Its goal was to see 118, 000 new and existing off-grid base stations powered in this way by 2012. It said this would save up to 2.5 billion litres of diesel a year cut annual greenhouse-gas emissions by up to 6.8 million tons and give a boost to the provision of mobile phone services in places that cannot yet use them.

     GSMA carried out a survey of operators, vendors, green power suppliers and financiers to evaluate the market and technical landscape. Its report, published in March 2009, said of the estimated 300, 000 BTS that will be built in developing countries up to the end of 2012, some 75,000 will not be connected to electricity supply grids. It pointed out that extending the grid to such sites would be enormously expensive. Reliability is another problem, in both rural and urban areas.

     As alternatives to diesel, GSMA analysed the viability of other sources of power for mobile base stations: solar, wind, biodiesel, pico-hydro (very small hydroelectric systems) and fuel cells.

     On solar power, GSMA noted that there is often an abundance of sunlight in rural areas of developing countries, and this, together with the increasing availability of solar equipment and its relatively low running cost, makes solar power a popular choice for sites that need up to 2 kW of power. Solar solutions are less economically attractive for larger sites, the report said, but it foresees that the price of installing solar power is likely to fall in the coming years.

     Another alternative is wind. The equipment to trap wind energy is cheaper than for solar-powered stations that have standard load requirements.

     GSMA then estimated the costs to be between 10 and 11 US cents per kWh to produce electricity at small wind-powered stations. A study by the American Wind Energy Association projected it to drop to 7 US cents within five years.

     However, wind power is only viable in such areas as coastal and mountainous regions, where wind blows sufficiently strongly and frequently. In other places, hybrid solutions may be used that combine wind and solar power.

     Biodiesel fuel (derived from vegetable oils or animal fats) can be used as a direct replacement for conventional diesel in base station generators, but it is not necessarily a universal solution. Among the factors that must be considered are local access to supplies of biodiesel, and how its production could affect agriculture.

     Similarly, fuel cells or batteries are mainly used as backup electricity supplies for base stations that have limited power requirements. So far, the commercial viability of using fuel cells as the prime power source has not been greatly tested.

  • Boosting African industrial growth with power sector investments

    Boosting African industrial growth with power sector investments

    For years, African countries, including Nigeria, have grappled with the challenge of industrialisation hindered by inadequate power supply despite longstanding policies and initiatives. However, a transformative shift is underway, driven by Transcorp Group’s continuous investments in the power sectors of Nigeria and West Africa. Last week, in a significant move, the conglomerate acquired a 60 per cent stake in the Abuja Electricity Distribution Company (AEDC), strategically fortifying its presence in the region. This acquisition perfectly aligns with Transcorp Group’s vision to empower Africa and catalyse the expansion of the continent’s industrial landscape. Assistant Business Editor COLLINS NWEZE reports

    Power is a strategic infrastructure and one of the most important requirements for growing Nigerian and African economies. It is also at the centre of the continent’s prosperous future, which is envisaged to be private sector-led. Getting to that desired future depends largely on providing adequate electricity for running of businesses and unlocking economic potential. Access to electricity enables businesses and industries to operate, makes education widely available, transportation seamless, and society to function efficiently.

    By investing in the continent’s electricity infrastructure, improving transmission and distribution networks, and increasing power generation capacity, jobs will be created, access to energy will expand, and reliability of power will be improved. Achieving such milestones will require huge investments and quality leadership in the power sector. 

     Last week, Transcorp Group set the ball rolling; it redefined its power play in Nigeria and Africa through investment and leadership changes in the conglomerate. Under Transcorp Group Chairman, Tony Elumelu, the conglomerate’s market capitalisation crossed N540 billion mark, providing the financial muscle to make electricity accessible to Nigeria and Africa’s teeming population. Elumelu is Africa’s billionaire businessman, renowned philanthropist and chief promoter of Africapitalism. His passion for powering Africa has been on for decades. He believes that the next big challenge for Africa would be tackling the lack of electricity, and Transcorp has been energised with the right leadership and capital to bridge power supply gaps in the continent.

     Transcorp Power Limited is a member of West African Power Pool and a participant in the ECOWAS Regional Electricity Market. Today, Transcorp Power supplies electricity to the ECOWAS Regional Market. The ECOWAS member states have shown commitment to achieving electricity interconnections for the pooling and sharing of energy resources, and Transcorp Group is at the centre of ensuring a more efficient power sharing within the West African sub-region. 

    New investments in power

    Transcorp Group, through a consortium, acquired 60 per cent stake in Abuja Electricity Distribution Company (AEDC) and engineered management changes. Transcorp Power Managing Director/CEO, Christopher Ezeafulukwe, was appointed by the board of the Abuja Electricity Distribution Company (AEDC), as the new Managing Director/CEO of AEDC. Current CEO of Transcorp Energy, Peter Ikenga, succeeds Ezeafulukwe as Managing Director of Transcorp Power. Elumelu used the portfolio realignment to further consolidate Transcorp’s position within the continent’s power space and energise its economic growth with steady power supply.

     Prior to his appointment as the MD/CEO of AEDC, Ezeafulukwe was the MD/CEO of Transcorp Power Ltd, Ughelli – a 972-Mega Watt thermal plant.  Under his leadership, Transcorp Power Ltd consistently led the Nigerian power sector, being the first successor power company from the 2013 power privatisation programme to be discharged from post-privatisation monitoring by the National Council on Privatisation, having surpassed the expectations of the Council. The Ughelli Power plant, which Transcorp Group acquired during the privatisation of the power sector in 2013, demonstrates the Group’s transformative prowess.  The plant’s available capacity, which stood at 160MW on acquisition, increased by 227 per cent to 680.83MW in four years, surpassing the Bureau of Public Enterprise’s (BPE) five-year target of 670MW. 

    Power challenges in Africa

    The World Bank says solving Nigeria’s power problem will offer the nation an opportunity to tackle long-standing challenges and boost the economy. The lack of reliable power is a significant constraint for citizens and businesses, resulting in annual economic losses estimated at $29 billion, which is equivalent to about two percent of Gross Domestic Product. Aside Nigeria, West Africa has one of the lowest electrification rates, with 220 million people living without access, coupled with some of the highest electricity costs in Sub-Saharan Africa.

     The Director-General of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said problems of the power sector have culminated into erratic electricity supply, frequent power outages and persistent collapses of the national grid.  “For many years, the situation has stunted the growth of the economy. Consequently, access to electricity has remained a hurdle for millions of Nigerians,” he said.

     President, Africa Development Bank Group, Dr. Akinwumi Adesina, speaking at a Lagos forum, said major challenge facing the industry in Nigeria is the very high cost coupled with unreliability of supply of electricity. “Load shedding and unreliable power have made the cost of manufacturing extremely high and uncompetitive. Most of the manufacturing companies self-provide energy through a reliance on cost-prohibitive generators and diesel and heavy fuel oil. The polluting emissions make them brown industries, not green industries,” he said.

    Adesina said that unless Nigeria decisively tackles its energy deficiency and reliability, its industries will remain uncompetitive. On the way out, he said: “There should be massive investments in gas to provide power and to ensure stable base load power for industries, hydropower resources, large-scale solar systems, direct power preferentially to industries, and to support industrial mini grids that concentrate power in industrial zones. In addition, we should develop more efficient utilities, reducing technical and non-technical losses in power generation, transmission, and distribution systems.”

     Last year, Nigeria manufacturers spent a total of N144.47 billion on alternative energy, an increase of 87.1 per cent from N77.21 billion in 2021. Also, the Nigeria Electricity Regulatory Commission (NERC), based on recent customer enumeration data, estimates that about seven million electricity customers are currently unmetered, while an additional three million meters are obsolete and require replacement. Meters serve as a revenue assurance tool for Nigeria Electricity Supply Industry (NESI) service providers and a resource management tool for end- use customers. According to NERC, the existence of a large population of unmetered customers has contributed to threats affecting the financial viability of NESI while unmetered end-use customers have also expressed dissatisfaction with the estimated billing methodology. Further, it noted that the revenue assurance objectives of DisCos have been challenged as they are unable to properly account for the utilisation of electricity by end-use customers. 

    Elumelu’s footprints in the power sector

     Former Vice President, Prof. Yemi Osinbajo, during the inauguration of Transafam’s 240 megawatts Afam 3-Fast Power Plant, Oyinbo, Rivers State, said  Transcorp Corporation Plc, has through its subsidiaries in the power sector – Transcorp Power Plc and Transafam Power Plc – boosted power supply in the country. Transcorp’s power subsidiaries have the capacity to produce about 1,938MW of electricity, including the 966MW from its plant in Afam, Rivers State, and 972MW from its Ughelli plant in Delta State, accounting for 15.5 per cent of the total installed capacity in Nigeria.

    The results of the investments and general inputs made by the Transcorp Group in the power sector led the Federal Government, through the National Council on Privatisation (NCP), to present post-privatisation Discharge Certificate to Transcorp Power Plc, the owner of Ughelli Power Plant in Delta State. The Discharge Certificate marked the delisting of Transcorp Power from the routine evaluation and monitoring of the Bureau of Public Enterprises (BPE), signaling a major achievement for the company. This followed the fulfillment of all privatisation conditions set by the NCP, by Transcorp Power, owned by Elumelu, after the purchase of the power plant in 2013.

     Osinbajo commended Elumelu and his Transcorp Group for ensuring compliance and surpassing expectations with all post-privatisation deliverables. Osinbajo said, “Post privatisation monitoring is an important aspect of the federal government’s privatisation programme. Transcorp Power has been able to ensure compliance and surpassed expectations with all post privatisation deliverables. I commend Tony Elumelu and his Transcorp team for this feat. I urge Transcorp Group to continue in that path and even do better.”

     The Bureau of Public Enterprises (BPE) noted that Transcorp has met and exceeded the performance targets and all other covenanted obligations agreed during the signing of the privatisation agreement in 2013. “Transcorp Power increased the generation capacity of the plant by 227 per cent from the operational status as at handover in 2013,? it said. According to the agency, “a capital expenditure totaling N58.612 billion was covenanted for phase 1, phase 2 as ‘additional investment’ but the actual investment made by Transcorp was the sum of N83.85 billion, leading up to a score of 143 per cent.”

    Investment promises kept

    Elumelu had promised to invest massively in the power sector to help Nigeria’s industrialisation through enhanced access to electricity and ultimately tackle poverty in the country and continent. He said in addition to fulfilling the post-privatisation performance criteria, Transcorp has driven a strong indigenous agenda, saying their plants were being managed and fully operated by Nigerians, hence creating jobs and reducing unemployment in the country.

     “For us as Heirs Holdings Group, for us as Transcorp Group, we believe in improved access to electricity because we know that improved access to electricity means powering our schools, helping hospitals to function very well, helping businesses to grow and create employment and most importantly, helping to industrialise Nigeria. So because of this, we invest in the power sector and we will continue to even invest more in that sector because in line with our philosophy of Africapitalism, we cannot develop Nigeria, Africa without improvement in our access to electricity,” he said.

     Continuing, he said the best investment that private sector can make is in power to uplift the people out of poverty, create jobs and get women involved in economic activities. He also reiterated the Transcorp Group’s “strong indigenisation agenda” and expressed the group’s pride having Nigerians managing and operating the plants, which is helping in job creation for Nigerians. Elumelu further said, “But beyond job creation is improving the expertise of our people. We also have operated under very strict safety standards. We have operated since 2013 -10 years now. No incident, no health hazard, nothing and we will continue to stay that way because we know that in 21st century, sustainability is key. Health is important; safety extremely important.

     “So we bring all of this together in what we do at Transcorp Group. And finally, I would like to say that we don’t grow alone at Transcorp Group. We grow with the community. We have grown with our community. We have helped to develop the community we are operating. We created jobs; we economically empower people. We have a functional hospital, we have a primary and secondary school and we will continue to do more.”

     He said in line with the Transcorp Group’s philosophy of Africapitalism, the group maintains a symbiotic relationship that ensures mutual support between them and their host community. “So for us at Transcorp, it is about improving lives and transforming our society. We know that you cannot improve life if you cannot invest massively in access to electricity. And I want to use the opportunity to call on our friends, other Africans and private sector leaders, let’s prioritise the power sector in Nigeria and Africa so that we can get our people out of poverty and create jobs for our young ones,” he stated.

  • Gas: A new ‘goldmine’ beckons

    Gas: A new ‘goldmine’ beckons

    With the race to cleaner energy intensifying, gas presents an opportunity to open up a veritable source of huge revenue earnings for the country. This is even as stakeholders agree that gas also provides an alternative for cheaper energy consumption and a boost for the general economy. When the Federal Government on March 29, 2021, declared an initiative called “Decade of Gas,” it was targeted at stimulating greater domestic utilisation of Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG), commercialise gas flares, develop industrial gas markets and increase gas-to-power. Going by the country’s over 209.5 trillion cubic feet (tcf) of proven reserves valued at more than $800 trillion, Nigeria ranks as the largest gas reserve in Africa and ninth in the world.

     Perhaps, realising the enormous potential of gas and to derive maximal revenue from it, President Bola Tinubu’s decision to split the Ministry of Petroleum Resources by appointing Ekperipe Ekpo as Minister of State, Gas Resources and Heineken Lokpobiri as Minister of State, Petroleum Resources, becomes very apt.

      And for Ekpo, the onerous task ahead of him will be how to harness the gas resources of the nation and translate same into both revenue spinner and means of creating a cleaner environment as its usage offers a cleaner-burning fuel compared to that of fossil fuel, making it an attractive option for addressing environmental concerns and reducing carbon emissions.

     By ensuring that gas is properly harnessed, it becomes an easy means of energy diversification, and leveraging this resource will provide a valuable opportunity for energy diversification by opening up the country’s energy mix, reducing its dependence on a single commodity and enhancing energy security.

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     A properly articulated gas policy and harmony will boost power generation in the country as Generation Companies (Gencos) depending on gas to generate electricity will deliver efficiently thereby improving the electricity situation in the country. At present, Gencos in the country generate about 13,000 megawatts (MW) compared to the minimum of 30,000MW required to have a steady electricity supply across the country. Therefore, expanding gas infrastructure and promoting gas-powered plants can help address the power deficit in the country and contribute to economic growth.

     Proper gas utilisation also stimulates industrial growth and attracts investments, which will in turn create employment opportunities, enhance local manufacturing capabilities and contribute to economic development. 

    A public analyst, Mayowa Sodipo urged the minister to fully explore the huge benefits that can accrue to the country from effectively utilising the use of gas by properly positioning the industry to effectively harness the natural resource. This, he noted, would include putting in place the right infrastructure which he added are capital intensive.

     Besides, these investments should be supported by the right government policies and incentives to attract private investments and create an enabling environment for gas exploration, production and utilisation. A low-hanging fruit to tap for investments in this sector comes from the international oil companies (IOCs), who not only have huge budgets for gas development under the cleaner energy initiative but are also divesting from putting their money in further fossil fuel exploration.

     He maintained that Ekpo should explore a means of actualising the ‘Decade of Gas’ initiative, while also working assiduously to pursue the Trans-Sahara Gas pipeline project, including that of the Nigeria-Morocco gas pipeline project.

     But more importantly, with the rising cost of petrol, Sodipo said the new minister should work assiduously to ensure that Nigerians fully embrace gas usage because it has the potential to stimulate industrial growth and attract investments, which will in turn create employment opportunities, enhance local manufacturing capabilities and contribute to economic development.

  • Swinging pendulum of electricity tariff increase

    Swinging pendulum of electricity tariff increase

    The agitation for and against electricity tariff increase has dominated the landscape in the last two months. Amid rising foreign exchange and upwardly mobile petrol price, the Distribution Companies (DisCos) insist they may cave-in under the new financial burden occasioned by the unification of forex and the deregulation of petrol. MUYIWA LUCAS examines the contending issues around the quest for electricity tariff.

    The efforts of the 11 electricity Distribution Companies (DisCos) to raise their earnings through tariff payment has never been this complicated. The unfolding agitation in this direction is coming from all directions, either for or against the proposed increase, appears to have left the industry regulator, the Nigeria Electricity Regulatory Commission (NERC), in a Catch 22 situation.

    Initially being spoken about in hush tones, the Abuja Electricity Distribution Commission (AEDC), whose franchise for the distribution and sale of electricity covers an area of 133,000 km2 in the Federal Capital Territory (FCT), Niger, Kogi and Nassarawa states, fired what could have been the first official salvo when it announced that it would increase tariffs due to the fluctuating exchange rate in the country.

    “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate,” the statement read.

    “Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.

    “For customers within bands B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per kWh while bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

    “For customers, with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you to take advantage of the current rates and potentially make savings before the new tariffs come into effect.

    “For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August,” the AEDC statement had read.

    But the firm, barely 18 hours later, perhaps bowing to pressure and realising that the NERC had not  approved an increase, recanted its statement, stating that it had no intention of raising tariffs. This is because DisCos cannot unilaterally modify tariffs without approval from the NERC.

    “Please disregard the communication circulating in the media regarding the review of electricity tariffs. Be informed that no approval for such increment has been received. We regret any inconvenience,” it said.

    Legality

    Unknown to electricity consumers, tariff increase or decrease is a bi-annual exercise as provided for in the Multi-Year Tariff Order (MYTO) schedule for the sector. It is backed by Section 76 of the Electric Power Sector Reform Act (EPSRA) 2005, the NERC adopted the MYTO methodology for electricity pricing in the country, which sets out the basis and pricing principles and procedures for effecting minor and major reviews of electricity tariffs.

    In specific terms, the MYTO provides a tariff path for the electricity industry, with bi-yearly minor reviews to take into account the impact of changes in a limited number of parameters, specifically inflation, US Dollar exchange rate to Naira, natural gas price, capital expenditure adjustment, among others and available generation capacity. It also provides for a major review in tariff every five years, when other input are reviewed with stakeholders.

    Similarly, Section 9 of the ‘‘Regulation on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry’’ allows for Extraordinary Tariff Review in instances where the utilities can demonstrate that industry parameters have changed from those used in the operating tariffs to such an extent that a review is required urgently in order to maintain industry viability.

    The last review was conducted last December with the next due this month. The previous increases have been conducted discreetly without most consumers being aware, perhaps because it is usually a meagre increase.

    But the outcry that has greeted the planned increase is not unconnected with a 40 per cent proposed margin- a position taken based on the recent deregulation of the foreign exchange (Forex) market by the Central Bank of Nigeria (CBN).

    Reality vs Morality

    For the Discos, the need to increase tariff is based on market indices and   ensure that the business survives. However, the consumers’ position is hinged on another perspective, especially the prevailing economic situation, and the poor service delivery Discos are known for.

    For instance, the operators in the power sector have not been unable to meet the threshold of supplying at least 5,000 megawatts a year after signing contracts with NERC. NERC’s current Service-Based Tariff (SBT) was benchmarked on an exchange rate of N441/$ and inflation of 16.97 per cent. The inflation rate is 22.79 per cent, while the exchange rate stands at N780 / $1.

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    However, economists and experts have taken different positions on the push for the increase. An economist and Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, in an interview with The Nation, faulted the planned increase, warning that sensitivity to the social context is very important for policy decisions.

    According to Yusuf, there are two main issues with the electricity tariff hike proposal – the planned drastic increase and the timing. Though he agreed that the DisCos are essentially private companies, their services, he argued further, is of a great social significance.

    “It is often a dilemma when the private sector is playing a dominant role in the delivery of a service which is social in nature or quasi-social. Nonetheless, it is difficult to accept the exchange rate argument to justify the increase. The truth is that for over 80 percent of companies, product pricing had always been based on parallel market exchange rate, or close to it.  Not up to 20 percent of companies had unfettered access to the official forex window for all their forex needs,” Yusuf said.

    He further noted that the forex unification argument as being put up by the DisCos could not  justify the amount of tariff increase being proposed.

    The CPPE boss, though an advocate of free market economy, further warned that contemplating such increase at this period when the citizens are still grappling with the shocks of the fuel price increase as a result of the subsidy removal is “most inappropriate and even insensitive to come up with a price increase of such magnitude at this time when many households are still struggling to adjust to the phenomenal increase.”

    “We need social stability for any business to thrive. Many other businesses are also impacted by the exchange rate unification.  But not many have increased prices so phenomenally. The DisCos seem to be taking advantage of monopoly privileges. We recommend that the timing and rate of tariff changes should be reviewed in the interest of social stability,” Yusuf submitted.

    But the Chief Executive Officer of New Hampshire Capital, Odion Omonfoman, disagrees.  In an interview with Nairametric, an online publication, he explained that the failure to review and implement the process for tariff increase would have a severe impact on the Nigeria Electricity Supply Industry (NESI) value chain. He made it known that the review is to reflect changes in foreign exchange and inflation rates, to ensure that tariffs remain cost-reflective for industry operators.

    For instance, a critical commodity in the value chain of electricity supply is gas. Gas prices are denominated in dollars, but are paid for in naira. Therefore, with the exchange rate standing at N769 to a dollar, gas-to-power prices should be N2, 534 per million standard cubic feet (MMScf) of gas.

    Arising from this position, Omonfoman argued that a failure to review tariffs means that generating companies (GenCos) will not be able to meet their obligations to gas suppliers, which could lead to a lower amount of gas availability for electricity generation to meet the demands of the consumers.

    “Gas suppliers are faced with millions of dollars in unpaid gas bills amounting to over $1 billion. However, based on agreed gas supply contracts, the inability to increase tariffs by DisCos could lead to further accumulation of debts beyond the current level of indebtedness experienced.  With further payment shortfalls, the overall debt burden in the power sector would render it unsustainable,” he said. 

    The 40% revenue loss burden

    The tariff increase conundrum is a double –edged sword. Either way, the burden remains for both the Discos and the consumers. While the consumers are yet to enjoy steady supply of power coupled with a depleting disposable income, the Discos on the other hand are faced with the burden of an estimated Aggregate Technical, Commercial, and Collection (ATC&C) losses estimated in the range of N2 billion monthly.

    The ATC&C is a critical performance-setting parameter for tariff determination because it represented the efficient losses that Discos were allowed to recover from customers.

    A NERC data for June 2023 revealed that the ATC&C losses of all the Discos exceeded their permitted targets, which include technical, commercial and collection inefficiencies in the power distribution process, such as power theft, meter tampering, billing inaccuracies and revenue leakages. Sadly, this is coming at a time for tariff increase agitation brought about by macroeconomic conditions.

    According to the report, these were the losses recorded between the third and fourth quarters of last year, put the cumulative Disco ATC&C loss in the fourth quarter of 2022 at 44.15 per cent composed of 23.84 per cent technical and commercial losses and 26.67 per cent in collection losses.

    According to the NERC report, in the third quarter of 2022, all the Discos experienced technical, commercial and collection losses of 46.42 per cent, which decreased to 44.15 per cent in the fourth quarter. Additionally, technical and commercial losses were recorded at 24.31 per cent in the third quarter of 2022 and improved to 23.84 per cent the following quarter. Furthermore, collection losses accounted for 29.13 per cent in the third quarter of 2022 and decreased to 26.67 per cent in the fourth quarter.

    “Thus, this level of the ATC&C loss implies that throughout 2022/Q4, on average, N44.15 in every N100 worth of energy received by a Disco was unrecovered due to a combination of inefficient distribution networks, energy theft, low revenue collection, and the unwillingness of customers to pay their bills,” the report stated.

    It also stated that any Disco that could outperform its allowed ATC&C, that is lower actual ATC&C than the target used to compute its cost-reflective tariff, would earn more returns on its set tariffs.

    “Conversely, any Disco that under-performs relative to its allowed ATC&C (i.e., has a higher actual ATC&C than the target) will be unable to earn the expected returns on its set tariffs and could risk long-term financial challenges,” the commission explained, adding that by surpassing the allowed targets, the Discos were failing to meet their obligations and deliver electricity services in a financially sustainable manner.

    Mitigating the loss

    NERC stated that an urgent implementation of the Electricity Act, 2023 across states was required to address these losses, including infrastructure upgrades, modernised metering systems, improved revenue collection mechanisms and stricter measures against power theft. Besides, the Commission stated that the Discos must make investments in infrastructure upgrades, modernise their metering systems and improve revenue collection methods.

    “Moreover, implementing stricter measures to combat power theft and illegal connections is crucial for reducing technical losses. Fortunately, the 2023 Electricity Act addresses the problem of electricity theft and recommends the imposition of jail terms for offenders,” the commission stated.

    It further explained that the ATC&C losses were critical to lower or higher electricity tariffs because they reflected the efficiency of the distribution system and the revenue collection of the utility.

    “ATC&C losses are the difference between the amount of electricity received by a distribution company from the transmission company and the amount of electricity for which it invoices its customers plus the loss of the adjusted collection,” the NERC stated.

    The regulator added, “Conversely, the lower the ATC&C losses, the higher the revenue and the lower the tariff required to maintain a reasonable return on investment.

    Brakes on?

    For now, the two chambers of the National Assembly have asked the federal government to halt the proposed electricity tariff hike, urging the federal government to intervene in the proposed increase by the DisCos.

    The lawmakers are of the view that “the proposed increase will significantly impact the affordability of electricity for average Nigerian, further exacerbating the financial burdens faced by households and businesses” including impeding industrial growth, job creation and economic development while it would also “have adverse effects on the nation’s drive towards sustainable development and poverty reduction.”

    This is even as the House of Representative warned the industry regulator, NERC not to approve the proposed increase in electricity tariffs.

    For now, the consumers await where the pendulum will swing.

  • CORAN to Fed Govt: sell crude to modular refineries in naira

    CORAN to Fed Govt: sell crude to modular refineries in naira

    The Crude Oil Refineries Owners Association of Nigeria (CORAN) is of the view that modular refineries should be encouraged to assist in product refining. This, the body maintains, will eliminate the cost of exporting crude oil to refine for domestic consumption and thereby saving the country scarce foreign exchange. The Chairman, CORAN, Momoh Oyarekhua, gives more insight into this and other sundry issues in an interview monitored on national television by CHINYERE OKOROAFOR

    What is the argument for modular refineries and what can it contribute in the face of this petrol importation era?

    I think the government has realised their importance of modular refineries early enough for her to consider establishing modular refineries. I think at this time we probably have about 40 or so modular refineries that have been licensed from the level of LTE to the level of LTO. Modular refineries are meant to be at the well-head and the importance of that is that, as you produce crude from the well-head, there is a processing plant that collects the crude, processes it, and brings it to the market. The importance here is that, if you have several modular refineries let’s say we have 40 licensed today and each of these refineries produces an average of 10, 000 barrels of crude. What you are going to have is 400,000 barrels of crude being processed in the country. So all of these challenges we keep talking about such as the availability of products and all of that would have been solved. And what we are saying in CORAN is that the government should stimulate the modular refineries and all of that, let there be intervention funds that the modular refineries can easily access just like you have intervention funds for gas today so that products will be available in the market. This will eliminate several costs- like the cost of taking crude abroad, bringing it back, the cost of clearing at the terminal, cost of port charges, cost of the middlemen that are involved and even foreign traders that bring this product to Lome where we buy and then ship down to Nigeria and they make their profit and all of that. And the Nigerian people pay all of this cost factored into the final price outcome of the refined product. If we produce petrol in Nigeria today, all these costs will be eliminated and what you will have is cheaper petrol for the masses and everyone who has a car to consume.

    What is your relationship with industry regulators in this regard? Have they been supportive of modular refineries?

    So far I would not say they have not been completely supportive, I mean, giving us the room to have a conversation with them, for me, I will call that support, but for some of us that have installed our refineries, our expectation was that we were going to get supplies from NNPCL to be able to buy crude from them and all of that and we have been engaging but that has not yielded us any fruit till this moment. Like our refinery which has been on stream for about two years now and we would have expected that by now we would have been able to buy crude from NNPCL, but that hasn’t been the case. We have gone back and forth and we are still where we are; haven’t made any shift from the position where we are, just like you have mentioned, you spoke about the currency issues, foreign exchange and all that, we have advocated that crude needs to be sold to modular refineries in naira because when you process this product, you are going to sell in naira, we are selling into the Nigerian market, so our income is in naira, so the field stock should also be in naira so that we don’t come and overcrowd the foreign exchange market. Let’s assume, if you have 40 modular refineries of 10,000 capacity for example, and you have to go into the market to look for an equivalent USD to pay for the crude, imagine, for a 10,000 barrel capacity refinery for example that we have, if the average price of crude is $100 just to make it very simple, we are going to require a minimum of $30,000,000 on a monthly basis to procure crude, so what you are going to have is that in a year, we are going to require about $360,000,000. So imagine you have 10 refineries of 10,000 barrels each, that’s going to be $3.6 billion that you will require to pay for crude. For me, I think it’s going to mount pressure on the foreign exchange and it’s going to drive the foreign exchange up. Hence, the sense in it is to sell crude in local currency to modular refineries and ensure the product goes into the market. If for any reason, any modular refinery actually exports any aspect of their crude, then, they should pay for that aspect of their crude in the U.S dollar. So this is our position and this is the position we hold and have been engaging.

    How can we ensure that the 40 licences given out can start working?

    These are actually very simple things to do. Every modular refinery you see today- we have about five that tend to be operational but four that I can confirm at the moment – OPAC (10,000 barrel capacity), Watersmith Refinery (5000 barrel), NDPR Refinery, Edo Refinery and DUPO which I heard will be coming on stream soon. And so to make these companies produce PMS because we all currently produce naphtha, fuel oil, diesel, and kerosene. And naphtha is fixed stock for PMS and we need to add a reformer which now breaks that down to PMS. The reformer is actually very expensive. An average reformer is in the window of about a $100 million. And for some of us who have put a lot of investment which are private equity funds that we have deployed into these refineries, to raise another $100m is not a child’s play. I mean it took us a lot to be able to even attract the equity people who are involved in our refineries in the first place given the circumstances of Nigeria, the challenges we are facing, cold supply and all of that. Imagine a refinery you have installed and you are not even getting cold field stock and then you go to the bank to raise a $100m for a reformer or perhaps going to individuals or companies, corporate investors, and all of that to request for additional money, I mean you know what the answer would be. So what we have said is that there should be some kind of intervention fund. Like we have applied as a company to CBN to access the development funds and even to add a reformer, we did this in 2021 and since then till now, we have not received any response from CBN to say, we are supporting you or giving you this loan and all of that.

     If you get reformers to these four different refineries and field stock, how many liters of fuel can you produce?

    Okay at 10,000 barrels I can speak of our own (OPAC), we probably on a monthly basis will be able to produce about 14 million liters of PMS and we pull that into the country.

    But why should government support modular refineries when there is a Dangote Refinery that will do 650,000 barrels per day and even more when you look at the entire range of production that can come from there?

    To start with, the Dangote refinery is a different ball game on its own, I mean from where it is located and all of that, it’s not close to field stock, so he has to ship in field stock because he is in Lagos and all of that. As I said, modular refineries are close to wellhead; you produce and take care of your catchment area. For example, we are in Delta right now and all of the products we are producing, everybody around Delta, Edo, Anambra, and all of that area come and quickly take it. So they save the cost of transportation of traveling all the way to Lagos to come and load product because if you pay more on transport, what you are doing is that you are adding more to the cost of the product and so the closer it is to your market, the better it is. Then when it comes to the oil thieves and people breaking pipelines and all of that, in fact, modular refineries are strategically positioned to also solve this problem. For example, where we are, we have the Forcados and the Brass pipeline; so if all the producers there are ready to give us crude, you don’t need to pass crude through the pipelines. All we do is just refine the product and it goes into the market. So all the money you are spending on security and all of that is taken care of.