By Muyiwa Lucas

 

 

There are over 22 million petrol generators in the country powering about 26 per cent of households and 30 per cent of Micro, Small and Medium Enterprises (MSMEs), aWorld Bank has said. The report further said the net capacity of these generators is eight times more than the national grid.

The report entitled: ‘Resilience through reforms’, the World Bank noted that due to unreliable and insufficient electricity supply, businesses and wealthy homes depend mostly on generating sets. These challenges, the World Bank noted, is due to substandard infrastructure, which have become extremely urgent to improve and expand the power network, if quality supply of electricity is to be attained.

The report, released on June 16, under the Power Sector Recovery Programme to kick off the new Nigeria Development Update (NDU), also identified operational inefficiencies in the system as the cause of the massive financial as well as economic losses. For instance, the body observed that yearly, the country’s economy loses between N7 trillion and N10 trillion to epileptic power supply, notwithstanding the various interventions of the government for efficiency in the sector. This figure is said to represent five and seven per cent of the country’s Gross Domestic Product (GDP).

This is why the World Bank also stressed the need for a holistic approach that integrates comprehensive measures to address Nigeria’s power problems sustainably. The body is convinced that for government to address the economic challenges bedeviling the country, it must take cognisance of the power sector, as this presents it an opportunity to tackle long standing challenges and give the economy a boost.

“To address the economic challenges that have arisen from the oil price shock and COVID-19, in July 2020, the Federal Government launched a N23 trillion ($5.9 billion) Nigerian Economic Sustainability Plan (NESP). But any economic recovery programme will be severely challenged by minimal access to electricity, an insufficient power supply, and a financially unviable power sector.” the report read in part. The NESP lays out an ambitious package of policy measures and programmes to stimulate activity and create jobs through investments in agriculture, roads, renewables, and housing.

Yet, the report noted that for the country to achieve universal access to electricity by 2030, the country would need to connect 500,000 to 800,000 households yearly. “Both grid-extension and off-grid solutions will be needed to provide timely quality services to unserved and underserved households and businesses, especially as the country recovers from the impact of the pandemic,” it submitted.

By Ambrose Nnaji

The General Manager, Commercials, Oando Energy Resources, Bambo Ibidapo-Obe, has said there is the need for indigenous oil firms, especially those operating the marginal oil field, to collaborate to be very successful.

Ibidapo-Obe, who spoke at the Commonwealth Businesswomen Forum, under the aegis of the Nigeria International Petroleum Summit (NIPS), in Abuja, cited the development of the Omogini Pipeline infrastructure under a special purpose vehicle made up of Midwestern and Niger Joint venture where Oando serves as technical partner as a good example of result that has been achieved through collaborations among indigenous operators. He further noted that the 12-inch diameter and 51 kilometre-long Omogini Pipeline, which was conceived, developed and delivered in 2014, came into existence through collaborations among stakeholders in the oil and gas industry.

This infrastructure, he further explained, helped in stabilising the transportation of crude oil from the producer’s field, OML 56, as it was connected to Shell pipeline and further connected to forcadoes oil export terminal. This same infrastructure has over the years also served as alternative route to Agip oil export hub where intakes in the past hinders marginal field operators from producing at full potentials.

“From January 2015 to date, the Omogini line, which has capacity of 45,000 barrels daily, has successfully moved 18 million barrels of crude oil, serving and helping to ensure production evacuation uptime in the field. This serves at least four companies namely, Energier JV, Platform Petroleum, Midwestern and Pillar Oil,” he said.

Describing the oil and gas industry as inextricably linked to the Nigerian economic well-being, Ibidapo-Obe noted that the various phases of the industry have gone through various stages of evolution – from being dominated by international oil companies to a more diverse landscape of both international and local players, to the development and implementation of both legal, fiscal framework to owning resource exploitation as well as recalling government policy and regulatory frameworks, among others.

The Oando chief said for every one of these vertical numerous opportunities have emerged, stating further that in recent decades there have been increased calls and participation for indigenous players in the industry.

It would be recalled that the drive for local participation led to the Federal Government’s marginal field programme.

 

By Emmanuel Udodinma

THE Federal University of Petroleum Resources, Effurun (FUPRE), in Delta State has bestowed its Excellence and Integrity in Corporate Leadership award on the Chairman, Green Energy International Limited, operator of Otakikpo Marginal Field in OML 11, Prof. Anthony Adegbulugbe.

Adegbulugbe, a professor of Energy Economics and Planning, according to the varsity’s Vice Chancellor, Prof. Akpofure Rim-Rukeh, has rendered distinguished services in various fields of endeavour, hence, the   recognition.  He added that integrity, hard work and patriotism had remained constant with leaders like Adegbulugbe.  He said the university wished to always identify with Adegbulugbe’s accomplishments at setting a new agenda for a prosperous Nigeria and Africa.

Adegbulugbe was one of the experts recognised for their contributions to the United Nations’ Intergovernmental Panel on Climate Change (IPCC), which won the 2007 Nobel Prize with US Vice President Al Gore.

The FUPRE Awards is held yearly, in collaboration with the African Child Foundation, to showcase the activities and achievements of companies and industry players in the oil and gas sector.

By Muyiwa Lucas

The Nigerian National Petroleum Corporation (NNPC) is collaborating with the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), Nigeria Security and Civil Defence Corps (NSCDC) and other relevant downstream and upstream stakeholders in the petroleum industry to curb the twin menace of petroleum products smuggling and crude oil theft which are negatively impacting the nation’s economy.

Speaking at a stakeholders’ meeting at the NNPC Towers, Abuja, the Group Managing Director of the NNPC, Mallam Mele Kyari, said the move was at the instance of President Muhammadu Buhari who mandated the Ministry of Petroleum Resources, the NNPC, the EFCC and all other security agencies to do everything to stop crude oil theft and illicit truck-out of petroleum products which he described as major economic crimes that have hindered Nigerians from enjoying the benefit of subsidised petroleum products.

He urged all industry stakeholders to collaborate with the Corporation to ensure that the daily national petroleum products consumption which shot up to 102 million litres in the month of May is brought down to realistic levels of around 60 million litres, stressing that it was obvious to all that that volume of premium motor spirit (PMS) was not consumed by Nigerians alone.

“We all agree that smuggling is not a business that should be condoned because even for deregulated petroleum products it brings extra cost burden on this country both in terms of safety and security of supply and in securing of foreign exchange. It even constitutes more burden to this country when the product involved is a regulated product like Premium Motor Spirit (PMS),” Kyari submitted.

The GMD explained that with the increasing price of crude oil at the global market and the OPEC+ production cuts, the country cannot afford to shoulder the cost of smuggling.

“We all know that our daily consumption is not up to 60 million litres. We all know that, and that is why we have to pull it down. We will pull it down by every means necessary,” Kyari assured.

He said NNPC would emplace Advanced Cargo Declaration in line with global best practices to tackle the issue of crude oil theft in the country.

In a similar vein, the Executive Chairman of EFCC, Abdulrasheed Bawa, expressed the readiness of the Commission to work with the NNPC to ensure that all those involved in the economic sabotage were brought to book.

The Major Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) and all the other stakeholders also expressed readiness to partner the NNPC to bring an end to petroleum products smuggling.

 

Over 240 dams are spread across the country, each with a capacity for 40 megawatts (MW). Against this backdrop, the Niger Delta Power Holding Company (NDPHC) Limited is mulling the setting up of small hydro plants to boost electricity generation. This initiative may rev the dams back to life, MUYIWA LUCAS reports.

GIVEN the number of dams in the country, it should have been a foregone conclusion that electricity generation would have exceeded the current capacity. This is because hydro power generated through this medium would have also gone into the national grid. But this has remained a tall dream.

The Minister of Water Resources, Suleiman Adamu, an engineer, hosting the management of the Niger Delta Power Holding Company (NDPHC) Limited, led by its Managing Director/CEO, Mr. Chiedu Ugbo, lamented the state of the dams.

According to him, each of the 240 dams has the capacity to generate 40mw. Regrettably, he said most of the projects have been halted because of poor planning. He explained that most irrigation projects require a lot of water which also need a lot of electricity.

Adamu, therefore, urged the NDPHC to support the projects by installing solar panels in the irrigation areas.

This call may have berthed a multi-million dollar partnership between the ministry and the NDPHC. Ugbo expressed his firm’s readiness to capitalise on the dams and build more.

When this is done, it would be a big boost to electricity generation, which, many say, may not have been a source of concern in the industry, but rather that transmission and distribution have been the bane.

Ugbo disclosed that although the firm generates about 4,099mw, not all are taken into the grid due to systemic problems. Absolving the firm of any blame, he explained that NDPHC may  have 500-700MW on the grid, but that this was not a function of bad machines or equipment, but rather due to the transmission and distribution challenges in the sector.

He noted that though the company had 10 power generation plants with eight linked to the national grid with about 4,099 megawatts, most are located in the South and are unable to generate optimally due to poor transmission and distribution infrastructure.

“In those areas too, NDPHC has done significant work. We pride ourselves as having invested about 50 percent of the transmission assets in the country. We have invested heavily in transmission and distribution assets all over the country, in every state.

“We have also invested in solar home systems. We started from not just underserved but un-served communities. We did 20,000 in the first phase under the “Beyond the grid” programme. We started the second phase in Kazuare Emirate in Bauchi State with 100,000 connections.

“But having developed our thermal plants reasonably, we thought it is time to move to the next phase of our project development and that phase is where after optimising gas resources, we have to optimise other resources we have for power generation. In renewable energy, we are working on solar, not just stand alone, but also mini-grid and on utility scale, that is on one side. We also thought that part of the programme is the hydroelectric and the best way to start it is the dams,” he added.

This, Ugbo explained, is why the firm is interested in the dams, especially those with hydroelectric capabilities already installed or which can be recovered.

Olusola Adekoya , a foremost environmentalist, is the President Lagos Landscapers Association and Chief Executive Officer of Shodex Gardens, a tourist centre in Anthony, Lagos. He speaks with DAMOLA KOLA-DARE on the numerous benefits of converting waste to wealth in the country, among other issues. Excerpts:

You have spent over three decades protecting nature and creating a green environment can there be something more fulfilling?

I am not fulfilled yet there are lots of works to be done because Nigeria and Lagos are evolving and we all have works to do. So what we have done in the past is child’s play to what we are going to do now because Lagos State Government has mapped out plans towards climate change and we need to step up the game and make sure that whatever we are doing is in line with climate change. We also need to step up training for the upcoming generation especially people in secondary schools, primary schools, higher institutions so that they can key into the initiative.

I’ve vowed that in my life time, my dream of Lagos will come to pass and what I mean is that when I see green vegetation in 80 per cent of the Lagos environment and the whole of Nigeria, that is when I can say I’m fulfilled. Now we are still at the tutelage level, stepping up the game, donating trees and creating awareness.

As the manager of a very popular and exciting tourist centre in Lagos State, what strategies were you able to deploy to take it to this level?

The strategies are not far to seek. They are consistency, research and exposure. Anytime I travel, what I take note is the environment. I’ve been working consistently reading, researching, asking questions from professional colleagues and translating it into practical. I try to implement what I see and also educate school children who come for excursion and let them know the transformation we want to see in our environment. So, it’s not an easy job, it’s a lot of work.

As we speak, I still do a lot of research in the area of tree planting, in the area of ecosystem protection. We are all working so that the ecosystem will be restored and also working with environmental activists to make sure that where things are not been done properly we correct them, plan for future, claim back our wet lands and our wood lands through development.

Can you give us an insight of your business model?

My business model is not something that is extraordinary but in Lagos and Nigeria generally, it might be new to people because it encompasses a lot of things. My business model has brought in things together in terms of aesthetics and alignment. Here, we have sections for nursery, pool, museum, restaurant and we do a lot of programmes too, so for someone who is not creative,it might be very hard. My business model is anchored on creativity.

What necessitated the floating of Nature Protection and Environmental Improvement Network (NAPEIN), your NGO?

What I had in mind was to spread the environmental gospel and also to go into advocacy, educating the upcoming generation. To enlighten people on how to respect nature because one can’t do anything without nature. I also wanted to collaborate with government and other organisations in that respect. I also wanted to look into how we can convert waste to wealth.

Can you give an insight into converting waste to wealth and how the country can generate wealth from waste?

Government needs to collaborate with advanced countries that are already into converting waste to wealth. Waste causes pollution, so by not converting it, it constitutes nuisance. This is the time government needs to key into the waste- to- wealth philosophy. For instance here in my garden, there is a section we use waste tires to do environmental art, where we use plastics to build house, plastic to make tables and chairs. In fact plastics can also be melted to do interlocking stones.

We need to key into all these things to make our environment safer, cleaner and also habitable and also generate more income. Thus, the government should be looking in that direction it would create more jobs for people instead of over-reliance on oil and agriculture. Government would make so much money in converting waste to wealth. The government should set up a committee to look into that area.

Don’t you think there should be a specialised School of Environmental Studies where by everything about environment can be treated?

If University of Environmental Science or Studies is established, it will be great. Whatever name they want to call it then they can study what they like. We have lots of professionals, specialists that can manage such institutions, they can develop strategies for such. It’s high time because there’s nothing we want to do now that doesn’t have to do with the environment, anything that does not have to do with the environment now is irrelevant.

In terms of climate change what do you consider as solutions to climate change?

Solution to climate change is holistic because we have our forestation. Forestation is important because trees mop up carbon monoxide. If we can explore these four areas: reject, reduce, reuse and recycling and also do a lot of sensitization as regards climate change. Planting many trees will also help in addressing climate change.

How can technology be deployed for horticulture?

In terms of horticulture, we have seen a robot that can plant trees. Most of the things we are doing now are not digitalized, they are still manual and it won’t help us.

In the area of greenery, Ethiopia and Japan have done it. Pakistan is doing it currently, planting over one billion trees using technology. If we cannot afford the technology now, we can still do manual if we really want to achieve environmental sustainability.

What can the government do to make the country a tourist haven?

When you make your country very clean and you have some amount of greenery, it is a pointer that this city or nation are environmentally inclined, so when tourists see that the place is dirty they would not want to see the place again. Cleanliness should be in our culture and not once in a month (environmental sanitation). We need to be conscious of the little things we do to degrade our environment.

So government needs to ensure strict monitoring of areas. They have to do that consistently. Government must ensure proper waste management.

There should be incentives to those that are doing the right thing, then we would have a cleaner, better and safer environment.

What are the implications of environmental degradation?

It puts us in a very tight situation. The implication is that we can lose a lot of our resources in terms of assets. It is important to work consistently with nature, nature rewards only those who treats it very well. If you abuse nature, it will abuse you. When you protect nature, it will protect you.

Don’t you think civilization or development threatens environmental stability?

True, development threatens environmental stability. There is what experts call Environmental Impact Assessment. It involves putting some factors into consideration when planning to develop an area. For instance, if you want to construct roads ,you should know that in that process some things would be affected. So you can’t say because you are protecting the environment and there won’t be development and you can’t say because you want to develop you now pollute the environment.

Also, when you take development to rural areas, it reduces the pressure on the city.

You have won many awards, what do they mean to you?

Each time they give me an award, it gives me energy. It gives me the drive to do more. It gives me courage and hope.

As the chairman of Lagos State Association of Landscapers ,how can you synergise with LASPARK to create a better environment?

We are ready to collaborate with them in the area of training and also giving them support. Environment is not a one man business, it’s not the business of one ministry, it is a collaborative effort.

LASPARK is a regulator, we cannot disturb LASPARK. We are poised to play a supportive role.

What’s your advice to upcoming environmentalists in the country?

My advice to the upcoming environmentalists is to do more research; they must be informed. They must also try and align with relevant associations from the onset to key into environmental activities. In whatever business they find themselves they should consistently align with environmental rules and principles and make sure they plant not less than 5000 trees.

By Bassey Ekong

Despite Nigeria’s vast business opportunities for foreign investors, many foreign investors have exited Nigeria due to their inability to deliver favorable returns to shareholders.

Nigeria is endowed with significant natural and human resources, but the failure of the country’s leadership to get it right over the years has continued to set the country backwards.

General economic meltdown, policy somersaults, failure to protect foreign investors investments and lack of deliberate efforts to separate business from politics have sent many foreign investors back home.

In the last one-and-half decade, many foreign investors have exited Nigeria on account of the high cost of production, inefficient government policies, insecurity, decaying infrastructure and economic recession.

The most recent victim of Nigeria’s harsh operating environment was Africa’s biggest grocery retailer and the South Africa-owned chain of stores, Shoprite, which last week announced its exit from Nigeria after 15 years of operation.

Though the company claimed the decision was reached after it re-evaluated its operating model not just in Nigeria, but across Africa, it should be pointed out that Nigeria’s harsh operating environment forced the company of the country.

Apart from facing the challenges of inadequate power supply, corrupt government agencies also collude with local companies scared of competition to drive foreign companies out of the country.

In the telecommunications sector, Abu Dhabi’s Etisalat had in 2017 terminated its management agreement with its Nigerian arm.

All UAE shareholders of the company exited and left the board and management of the Nigerian brand. The decision was made by the telecommunications networks after it’s $1.7billion loan talks collapsed.

All UAE shareholders of the company exited and left the board and management of the Nigerian brand.

In the financial sector, the Central Bank of Nigeria (CBN) had in late 2018 announced that British multinational banking, HSBC, and Swiss multinational investment bank, UBS were closing their representative offices in Nigeria.

The apex bank gave no official reasons for their exit.

Barely three years after it had bought 63 per cent shares in Lagos Flour Mills from Dangote Group in 2012, Tiger Brands and its executives realized the complications of the Nigerian market and sold back the investment to Dangote in 2015.

Read Also: Why Kaduna is attractive to investors, by El-Rufai

Following the rising costs imposed by the federal government, which made it too difficult for the South African retailer, Truworths, to operate in Africa’s biggest economy, the fashion retail company in 2016 closed its Nigerian stores and left the country

Chief Executive Officer of the company, Mr. Michael Mark stated that, “The regulations were making it extraordinarily difficult to get stock into the stores,” Mark said. “We can’t get money out, so there was no point any longer.”

In the oil and gas sector, the multinational oil and gas companies have been gradually selling their onshore assets since 2010.

Faced with destructive attacks, oil theft, pollution and community issues, Royal Dutch Shell Plc last week acknowledged that its spill-prone operations in Nigeria were no longer compatible with plans to go green.

“The balance of risks and rewards associated with our onshore portfolio is no longer compatible with our strategic ambitions,” Shell’s Chief Executive Officer, Ben van Beurden told investors at Shell’s Annual General Meeting last week.

“We cannot solve community problems in the Niger Delta,” Beurden reportedly added.

The company has started discussions with the Nigerian government on how to move forward.

Indeed, after half a century of pumping oil out of Nigerian swamps, the company sought to put aside chronic problems such as pollution caused by ruptured pipelines and the resulting legal battles with local communities.

Concerns have been raised that some of these multinational oil companies were planning to exit Nigeria considering their refusal to sanction new projects.

Indeed, Nigeria’s operating environment has become increasingly challenging to investors.

While the Nigerian government has continued to make efforts to attract foreign investors, no deliberate efforts are being made to protect their investments.

The government’s failure to protect the foreign investors has exposed their investments to threats by government agencies and local investors.

These local investors take advantage of their familiarity with the political environment to undermine their foreign partners and in some cases take over their investments.

Apart from retail traders, and oil companies, other categories of investors are also facing challenges.

For instance, the SHI-MCI yard built by Samsung Heavy Industries Nigeria (SHIN) Limited at the LADOL free zone in Lagos is under threat due to the failure of the Government to put an end to the dispute with its then landlord and service supplier Ladol.

SHI-MCI is the only fabrication and integration yard for Floating Production Storage Offloading (FPSO) vessel in Africa was built for the fabrication of the Egina FPSO, Total’s largest FPSO globally. This is the biggest milestone for any contractor in Nigeria and perhaps the biggest driver of local content in the country.

However, after its record-breaking milestones in the Egina project, the yard has become virtually idle due to the tactics of its Landlord LADOL.

NCDMB can mostly only laud local content achievements through the Breakthrough EGINA and yet seem to not be able to actively intervene, by supporting the yard which made this possible through jobs and protecting the facility from possible closure.

SHI-MCI set a new record in the Nigerian Content development in the Egina project and if it is shut down, no other investor can break the record.

Egina deepwater project is the largest deepwater project executed in Nigeria and will possibly forever remain the largest if the yard is shut down.

This shut down will be the biggest loss for local content fabrication and integration in Nigeria and likely to affect future deep offshore projects. Additionally, it will make the NCDMB mandate for in-country fabrication and integration impossible because of the lack of any quayside able to berth FPSO vessels with the only one at SHI-MCI.

Apart from lack of intervention to utilize the local manpower trained by SHIN in the course of executing Egina project, SHI-MCI and other investments at LADOL are also facing other multiple challenges.

An American company forced out of the free zone had sought the intervention of President Muhammadu Buhari and the US Embassy in Nigeria.

When Africoat, a Nigerian-registered pipe-coating company came into Nigeria, it purchased a complete corrosion and concrete weight coating plants from Korindo in Indonesia in 2012, packaged for freight and shipped to Nigeria by charter vessel directly to the Lagos Deep Offshore Logistics (LADOL) base in Lagos where it established a world-class pipe-coating facility.

However, the vision and mission of this United States’ pipe-coating giant to build local capacity and create employment opportunities were said to have been truncated by a dishonest caretaker of the free zone, which allegedly deployed all arsenals at its disposal to strangle and seize Africoat’s assets by creating a toxic working environment.

This created the impression that LADOL was above the law.

Stakeholders emphasized that NEPZA as authority in charge, has the power and ability to intervene and protect investors when such situations occur.

There is urgent need to halt further exit of foreign investors as this will truncate Nigeria’s dream of creating job opportunities and growing its economy.

LADOL’s disputes with Samsung Heavy Industries Nigeria are also subject of litigations in Nigerian courts, while arbitration is also ongoing in the UK.

LADOL’s high handedness fueled by its claim of having powerful contacts at the highest level of Nigeria’s political leadership, has made peaceful settlement of these disputes a herculean task.

Multiple litigations and arbitrations are disincentive to investments.

It is strange that the federal government would attract foreign investors and a Nigerian company chases the investors away without any consequences.

While LADOL was allegedly killing investments, many government agencies, appeared to be watching helplessly.

There is the need for the Nigerian government to rescue foreign investments from the clutches of the harsh operating environment.

• Ekong, a public policy analyst, writes from Port Harcourt

By Muyiwa Lucas

The West African Power Pool (WAPP) North Core Regional Interconnection Project, which would facilitate the sale of electricity from Nigeria to Togo, Benin Republic, Niger and Burkina Faso, is estimated to cost $568 million. The funding is to be provided by the Federal Government, African Development Bank (AfDB), the Agence Française de Développement (AFD) and the World Bank (WB).

The North Core Project involves the construction of 875 km of 330 KV and 24 km 225 KV transmission lines from Nigeria to Burkina Faso, through Niger and Benin Republic with associated substations.

Speaking at the opening session of the first Joint Ministerial Steering Committee of WAPP, Minister of Power, Saleh Mamman, an engineer, maintained that the completion of WAPP, which involves the sub-regional interconnection project, is a top priority. The Joint Committee comprises Nigeria, Niger, Benin, Togo, Burkina Faso Regional Electricity Interconnection Project in Abuja.

“This large-scale project is financed by the African Development Bank (AfDB), the Agence Française de Développement (AFD), the World Bank (WB) and the Federal Government of Nigeria (FGN), which amount to a total of $568 million,” adding that upon completion of the project, the operation and maintenance of the entire infrastructure shall be handed over to the utility companies of the participating countries.

He expressed confidence that with the commitment and collaboration of WAPP and the development partners, the project will be completed in the third quarter of 2023 and will serve as a sustainable solution and major contributor to the power sector of West Africa. He further stated that the project is aimed at facilitating efficient energy trade in the sub-region among several other benefits.

“This has already been presented to the ECOWAS Heads of State and Government, and approval was got in December 2018. It is also part of the ECOWAS Master Plan for the Development of Regional Generation and Transmission Infrastructure 2019-2033,” he said.

According to the minister, the project will also involve the electrification of rural communities located within a five kilometers radius on both sides of the line, and the implementation of several environmental and social mitigation measures.

WAPP Secretary-General, Mr. Siengui Apollinaire Ki said it is being implemented according to the new model of an institutional framework for implementation and development by WAPP and the countries concerned.

“It is implemented by a Project Management Unit (PMU) which is also tasked to build the infrastructures for the national electricity companies,” he added.

According to him, despite the laudable progress made so far with the project, many challenges still remain. He, therefore, sought for more commitment of WAPP so as to get the project completed within the target time.

 

By Muyiwa Lucas

A boost for electricity generation is on the horizon. This comes on the heels of a planned additional 1,900 megawatt (MW) to the country’s power generation capacity by the Egbin Power Plant.

Its Chairman, Temitope Shonubi, made this known while unveiling expansion plans for the Egbin (Expansion) Phase 2 Investments, which is hoped would add between 1,750MW  and 1900MW to power generation.

Shonubi, conducting a delegation of the NNPC led by its Chief Operating Officer (COO), Gas and Power, NNPC, Yusuf Usman, an engineer, through the plant’s post-privatisation, said the plant has gone through major overhauling, which he said has helped to increase its generation from the low capacity it had before 2013.

“Egbin has 1,320 MW capacity. As at the time we took over, the plant was generating 300MW which is an abysmal 22 per cent. As at today, our generation capacity has surged and we do 89 per cent. We have reached 970 MW, the peak generation for the year and we are working hard to ensure sustainability of this feat. The 970MW we hit is the highest for the year and based on our core value of sustainability, we are working round the clock to make sure that we sustain the gains we have made,” Shonubi explained.

Listing challenges being faced by the company to include, grid limitation, gas constraints, and liquidity, Sonubi added that stakeholders, including the NNPC, Central Bank of Nigeria (CBN), and the Transmission Company of Nigeria (TCN) have been trying to solve the problems. He called on NNPC to keep exerting efforts towards gas development and supply of the product to keep turbines at Egbin working productively at optimal capacity.

Responding to the call and obviously satisfied with efforts put in so far in the thermal plant, Usman assured of the corporation’s commitment towards gas optimisation and supply for gas to power.  He said NNPC will be joining the Egbin Power Plant to deepened gas supply for power generation.

He maintained that the NNPC is impressed with the turnaround at the thermal power station. “The visit has been an eye opener for me,” Usman said, adding; “We have seen turbines that have been running for over 40 years. We have seen efforts being made by Egbin management to effect a turnaround at the plant through overhaul of the entire system. We have also seen the support you have been giving to the youths through employment and capacity development opportunities.’’

On concerns raised by Usman, Shonubi said: “I have listened to the concerns you raised, particularly, in the area of transmission restrictions. I am aware that works are ongoing in this regards to ensure that all the power we generate is safely evacuated. An area of concern to me is when you talked about the gas constraints. We are going to support you to make sure that the power supply is steady. We are having a session with gas suppliers in this regard.”

The Egbin Power Plant is the biggest in Sub Sahara Africa.

 

By Muyiwa Lucas

A shareholders agreement on the construction of Brass Petroleum Products Terminal Limited (BPPT) at Okpoama, Brass Local Government Area, Bayelsa State has been signed. The project will cost N10.5billion.

The Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC) and ZED Energy Limited signed in Abuja. Both NCDMB and NNPC own 30 percent equity, while ZED Energy – a private firm – holds 40 percent equity in addition to its operating the terminal upon completion.

Promoters of the terminal and other stakeholders are upbeat about the prospect of the facility. For instance, the terminal would ensure that refined petroleum products are available in riverine communities of the Niger Delta at the standard prices; discourage the operations of illegal refineries and create job opportunities for citizens of the Niger Delta and other Nigerians.     Furthermore, it is planned that the project would enhance energy security in the Niger Delta, create 1, 000 direct jobs during construction and another 5, 000 direct and indirect jobs when it begins operation. Besides, the terminal would serve as a strategic reserve for the country as it would hold up to 50 million litres of products. It would also serve as a two-way product jetty – land and marine trucks loading of automotive gas oil (AGO), premium motor spirit (PMS), dual purpose kerosene (DPK) and aviation turbine kerosene (ATK).

The Minister of State for Petroleum Resources, Timipre Sylva, described the project as another major achievement of President Muhammadu Buhari in the Niger Delta region. He listed other landmark projects to include the Oloibiri Museum and Research Center (OMRC), the Brass Fertiliser and Petrochemical Company Limited (BFPCL), and the Nigerian Oil and Gas Park.

Sylva noted that residents of riverine areas had bought refined petroleum products at astronomical prices because of the huge cost of transporting products to those locations. He attributed the prevalence of illegal refineries in the region to the non-availability of legitimate alternatives and expressed hope that the BPPT would solve some of the problems of the Niger Delta region.

The minister also commended the collaboration among the NCDMB, NNPC and ZED Energy on the project, hinting that such partnership was needed to move the oil and gas industry forward.

The Executive Secretary NCDMB, Simbi Wabote, underscored the benefits of co-locating the BPPT with the Energy Infrastructure Park being developed at Okpoama and the BFPCL at Odioma, Brass – projects being developed with equity financing by the NCDMB.

He said: “If you go to developed economies, there are parks for manufacturing and industrialisation. When you have the Brass Fertiliser, the BPPT and the refinery that is being built in the same area, you get the benefits of being within a Free Trade Zone. It will bring down the costs of developing those products simultaneously because the raw materials are just behind them. There is no reason to take the investments to distant locations where costs would increase.”

The Group Managing Director of NNPC, Mallam Mele Kyari, said the national oil company should have invested in the terminal 30 years ago and expressed delight that it is happening now and would be delivered.

“Beyond the clear social responsibilities, this makes business sense. The location of the planned depot would create a platform for the delivery of petroleum products to some of our offshore facilities. NNPC is playing the role of facilitating the supply of petroleum products to all sections of this country, more importantly to the region that produce the resources, where refined products are not readily available. This initiative would make sure that we deliver products in the most fair and equitable means,” Kyari said.

Similarly, the Group General Manager, National Petroleum Investment Management Services (NAPIMS) and Project Lead of the BPPT, Mr. Bala Wunti, noted that since the commencement of oil exploration at Oloibiri in Bayelsa State in 1958, there has not been any significant downstream activity or investment in the state.

He further stated that Bayelsa State produces 40 percent of Nigeria’s onshore and swamp crude oil and hosts some of the nation’s deepwater prospects and assets, yet there was no correlation with the level of socio-economic development and employment. “Our intention is that this adventure would try to close that gap,” he said, assuring that funding for the project would not be a challenge as the partners would provide the needed funds.

“We have done our baseline survey and we want to start procurements of long lead items and several other things, including engineering. The idea is that long before 2023, we would have this depot up and running. It would bring a uniqueness and innovative depot platform. This will be a dual loading facility; it would load land trucks and marine trucks. It means we are creating something that is better than floating storage. It will also reduce demurrage,”Wunti said.