The Nation Newspaper

Category: Energy

  • COVID-19: Our services will be uninterrupted, says Ibadan DisCo

    COVID-19: Our services will be uninterrupted, says Ibadan DisCo

    Emeka Ugwuanyi

    Ibadan Electricity Distribution Company (IBEDC) said it is committed to ensuring regular power supply if there is a national shutdown due to coronavirus (COVID-19).

    The electricity distribution company (DisCo) said its statutory duty will not be crippled by the pandemic as the management is prepared to service its esteemed customers through various online platforms for payment, vending of power and resolving customers’ complaints.

    IBEDC in its bid to help prevent the spread of COVID-19 is scaling down people’s presence in business locations to limit physical interaction between employees and customers until the situation improves.

    The management particularly instructed all customer relationship officers, commercial line workers and any other employee that interfaces with the customer to stop their activities immediately until they are well equipped to handle the situation.

    Similarly, gloves, hand sanitisers and medical masks have been distributed across its franchise to ensure the safety of all the staff on essential duties who cannot work remotely.

    IBEDC’s management is, therefore, strongly recommending that customers should call the customer care number 07001239999 to report faults and make enquiries; they should make use of our hassle-free payment platform such as www.festwallet.com, www.quickteller.com,USSD,M cash, transact or visit www.ibedc.com for more options. This is to further reduce physical contact to comply  with the  social distancing prevention protocol, it added.

  • Positioning hydro plants for increased output

    Positioning hydro plants for increased output

    There may be a ray of hope in the hydro power subsector if stakeholders, including the Federal Government, can put in place water storage facilities and good generators that will enable hydro plants work effectively. By so doing, the hydro power stations will be able to complement gas plants to produce the quantum of electricity needed, reports AKINOLA AJIBADE.

    If the prediction of the Nigerian Meteorological Agency (NiMET) that Nigeria would experience a heavy rainfall in most part of the year is anything to go by, then the power sector, especially the hydro power subsector, will benefit a lot.

    The reason is that the rainy season is fast approaching, which implies that the water level of the hydro-power plants across the country, would increase rapidly. Based on this, the plants would not find it difficult to generate the electricity  that would be enough to stimulate the growth.

    In its Seasonal Rainfall Prediction (SRP) report, NiMET in January  said the country would witness excessive rainfall. It said total rainfall would be around 400mm in the North and about 3000mm in the South, adding that such rain will be enormous for farmers.

    At present, the country survives on two major types of electricity. They are gas turbine power, which provides 70 per cent of power, while the hydro power provides the balance.

    Though the country is experimenting with renewable energy, such as solar, and biomass, the energy sources cannot be equated with gas and hydro power in terms of the megawatts. Renewables are at best for smaller communities because they generate the lowest electricity.

    Also, the power sector has total installed capacity of 10,396 megawatts (Mw). Of this, thermal generation firms provide 8, 4579 Mw, while hydro power firms the balance.

    Eralier, Nigeria relies on three hydro power stations.They are Shiroro, Kainji and Jebba and they have the capacity to produce enough megawatts, aside smaller dams located across the country. However, the largest hydro power plant, which the Federal Government is targeting to increase power supply is Mambila Power Project, expected to add 3,000 Mw to the grid on completion.

     

    Industry’s opinions

    The Director, Centre for Energy Studies, University of Port Harcourt, Prof Wunmi Iledare, told The Nation, that the sector would benefit a lot of people.

    He said the country boasts of natural endowments, such as rivers and lakes, adding that they are veritable sources of generating electricity.

    He said: “Rivers and other natural sources are many and they can be used to generate some megawatts of electricity in the country. No matter how small those megawatts are, they would serve the needs of some people. What the government needs to do is to provide an enabling environment for Nigerians who intend to generate hydro power.The country is blessed with abundant rainfall, which would automatically help operators of hydro-power plants to produce electricity. Once Nigeria is able to combine gas-turbine form of electricity with hydro, the country would find it easier to generate huge megawatts of electricity for growth.”

    Nigeria’s problem, Iledare said, is more of evacuation of electricity than generation, adding that the country is finding it difficult to evacuate the bulk of electricity it is generating.

    According to him, the country is generating 10,000Mw and it is unable to evacuate 50 per cent of that figure, noting that the development has impacted negatively on the supply of electricity in the country.

    “Hydro power is natural and it is a good thing that Nigeria has enough water to operate with.  However, it would be good, if the country can create more grids with a view to transmit electricity. We don’t need to generate electricity in Port Harcourt and take it to Lagos for transmission.The issue of generating electricity and taking it to Osogbo, the epicentre Transmission Company of Nigeria (TCN) is  not good enough,‘’ he added.

    The power distribution companies (DisCos), Iledare said,  should be made to capture the electricity that is being sent to them from the national grid, adding that by so doing,  the firms would be able to distribute electricity to homes and office in Nigeria.

    Iledare said the problems in the sector revolve round the power generation companies (GenCos), energy distribution firms and the TCN, adding that any attempt by the government to tackle the problems in the value chain would spur growth of the sector.

    Also, the Chief Executive officer, Power Cap Limited, Mr Abiodun Ogunleye, advised the Federal Government to ensure that both hydro and gas power plants are working well in Nigeria. He said when those power plants work seamlessly, they would not have problem generating electricity.

    The government, Ogunleye said, should try and provide generators and other equipment for Shiroro, Kainji and Jebba hydro power plants, stressing the facilities play vital role in generating power.

    “Now the country is waiting for rainfall, which in line with various predictions in the country, would he heavy, operators of the hydro-power plants should leverage the rainfall to increase their output. Also, people that were appointed to manage the hydro power plants should apply the right perceptions, if they want to record growth,” Ogunleye added.

    He said hydro power plants are adding to the power output in many countries in Europe, adding that Nigeria cannot be an exemption.

  • New lease: Samsung expands at Lagos shipyard

    New lease: Samsung expands at Lagos shipyard

    By Emeka Ugwuanyi

    With a new land lease from the Nigerian Port Authority (NPA), Samsung Heavy Industries Nigeria (SHIN) has said its fabrication and integration yard will expand services to Nigerian firms and others.

    SHIN received an approval from NPA, which was backed by Presidential Committee for their licence application, to operate a private jetty for their fabrication and integration yard in Tarkwa Bay, Lagos State.

    According to a statement by SHIN, the new direct lease agreement opens up opportunities for more international projects, partnerships and an expanded service offering for the world-class facilities with over 500 metre length of robust quay wall, where Samsung made investment of over $300 million.

    According to the Managing Director of SHIN, Mr. Jejin Jeon, the new licence provides SHIN with a strong foundation to continue fabrication and integration activities for West Africa’s oil and gas industries, as well as maritime related activities. The SHIN fabrication and integration yard is now able to deliver marine services, ship maintenance, repair and manufacturing to the regional oil and gas and maritime industries.

    The flexibility of its facilities allows it to accept all kinds of seagoing vessels and conduct a wide range of operations. The SHI-MCI yard, which is ISO 29001 and ISO 9001 certified yard in West Africa, is a fully secure facility that is strategically located to allow optimum proximity to the main shipping channel. As a result of this, it will also save customers costs due to its excellent accessibility, he said.

    He further noted that the 502-metre long quay wall alongside the 121,000 square metre yard can accommodate ships with up to 13 metre draft and boasts the largest capacity travelling tower crane in West Africa with a lifting capacity of 70 tonnes.

    The facility also has a load bearing capacity of 25metric tonnes per square metre on average and vessel mooring bitt capacity of 100 tonnes (in total there are 72 bitts), while the quay side height from chart datum is 2.6 metres.

    The certainty of a direct lease followed by the private jetty licence will enable SHIN to develop full multi-purpose terminal operations and expand its operations to include one-stop logistic services to customers, the company said.

    The new agreement permits any national vessels to berth directly alongside the 502-metre wharf and discharge their cargo in various types and sizes. Jeon said the yard will also handle the transportation of container cargo, vessel maintenance, supply of utilities, storage space and will facilitate crew changes.

    The SHIN chief said:“I am pleased that the Federal Government, acted by NPA, has entrusted us with a direct land lease for our existing fabrication and integration yard, and approved our licence application to operate our facilities as a private jetty. This gives more certainty to foreign investors to continue investing in Nigeria and will attract significant new international projects for the benefit of all stakeholders.

    “It symbolizes the faith and belief the Nigerian government has in Samsung and in our mission to attract more commercial opportunities to Nigeria. Through our business expansion, it has become certain that we are able to employ more Nigerian workforce and make greater investment in our fabrication and integration yard to better serve the regional maritime industry.”

  • ‘$16b share of global industry investment not low’

    ‘$16b share of global industry investment not low’

    Nigeria’s yearly investment in the oil and gas industry is about $16 billion, 10 per cent of the global investment of $160 billion. To the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, the investment is not bad for local content development, given that many Afrcan countries produce oil and gas, writes AMBROSE NNAJI

    Is Nigeria’s $16 billion investment in the oil and gas sector too low?

    No, says the Executive Secretary (ES), Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote.

    Wabote stated this while responding to a statement by the Managing Director of Total Nigeria Plc, Mr. Imrane Barry.

    Barry had during an oil and gas forum in Lagos said about $160 billion was being spent in oil and gas globally, but that Nigeria only got about $16 billion inflow yearly, which to him, is not enough.

    On whether the investment is affecting local content development, he also said no.

    The ES explained to The Nation,  that the number of countries into oil and gas had increased.

    ‘’Currently, we are talking about Senegal, Cote d’Ivoire, Ghana, Kenya, Tanzania and Mozambique, among others. These are countries that never had oil and gas in the past.

    ‘’Ten years ago, investments were coming into those African countries that had oil and gas, such as Nigeria, Gabon and Algeria, among others. But, today, the money is being shared with other countries. So, to have $16 billion out of that is not a bad number given that other countries have been able to discover oil and gas and share from the global investment inflow into the industry.

    “I’m sure we are getting a lot more than other countries in the Africa. I consider what we get extremely good because other countries that are discovering oil and gas relax all their fiscal regimes and regulations because they want investments to come. So, investors will go there if the fiscal regimes and regulations are a lot more lib-eral.

    “Having been in production for over 56 years, Nigeria has maintained some of the regulatory requirements as well as the fiscals and investors are still able to bring in funds to the country, so I think that in itself is remarkable,’’ he said.

    According to him, the international oil companies (IOCs) are talking about Nigeria’s stand on its fiscals and regulation.

    ‘’They (IOCs) want Nigeria to be operating the same fiscal regime and regulations of 20 years ago.

    ‘’Don’t forget that the IOCs are strictly business concerns and they do everything to maximise profit.  So, if they can leave you where you are 20 years ago, they will leave you there so that they will increase shareholders’returns on investment.

    “No businessman will sit down and see his take being eroded without complaint. For the IOCs, their home countries would ask why their returns were dropping. For instance, five years ago, they made $5 billion profit from Nigeria and it suddenly dropped to $1 billion, they would be asked what was going on. So, they have to work to show that they are trying to influence government policies, regulations so that their profit margins would remain high,” he said, adding that they could do anything to keep you where you were to continue to maximise profit.

    “But for us, we need to recognise that other players have come into the market, and strategise on how to sustain our market share as a country,’’ he added.

    He said there was also the need to take into cognizance the existence of other new players and the possibility of capital moving into those areas, and to nip and adjust some of our regulatory regimes and fiscal policies to retain them (investors) or to bring them.

    “Don’t forget that they are comfortable in Nigeria because they know the system. The level of uncertainty of our geology was limited as compared to new frontiers. So, they will rather like to stay with what they know than the unknown. It is only in extreme circumstances when they see that things are very tough and their margins are not increasing, they can say, ‘let’s take a plunge into those areas that we don’t know’,” he added.

    “It is a continuous struggle. It is not something that will remain where it is. We will continue to review it as we go, especially with latest technologies, and shale oil and gas everywhere. These were things that didn’t exist about 10 years ago. It is imperative for us to look at what we have and make adjustment to retain our market share in the business.

    “I agree that the Petroleum Industry Bill (PIB) is taking quite some time, but I can assure you that all hands are on deck to see that this year, the bill is passed to end the level of uncertainty that we have in the industry.”

    Wabote, however, agreed that  Nigeria and the IOCs were suffering as a result of the non-passage of the PIB. He noted that the IOCs were here to make money while Nigeria benefits from the proceeds of oil, adding that it’s a two-way thing. ‘’We probably are losing. They are also losing because of the level of uncertainty that it creates,’’ he stated.

    Wabote emphasised the need for collaboration among African countries to host local content in the oil and gas, adding that the deal among African countries in terms of local content development was ongoing.

    A lot of Nigerian capacities, he said, have been established in places like Uganda, Senegal and Kenya by providing services, such as seismic interpretation and feasibility studies.

    According to him, Nigerian firms have ventured into those areas since the discovery of oil and gas in most of those countries, including Ghana.

    “Also in terms of providing some vital services, for instance, chopper and helicopter.Today, Caverton, which started in Nigeria, is providing services to companies in Ghana. So, that effort to penetrate is ongoing but is it getting the desired grip? The answer is no. The idea was to continue to create a platform for this discourse, to demonstrate the existing capacities and to see how we get African countries to realise that all of these services that they desire in the oil and gas industry could be got from sister countries, which of course brings down the cost of execution.’’

    On the African Free Trade Agreement, he said it provided a veritable tool to share those services and reduce cost of activities in the  sector.

  • New electricity tariff: What implications for consumers?

    New electricity tariff: What implications for consumers?

    The new electricity tariff regime takes effect from April 1, AKINOLA AJIBADE  examines its implications on consumers.

    In April 1, the new electricity  tariff regime would take off. Under it, consumers, including individuals and corporate organisations, would pay more for energy.

    The Nigerian Electricity Regulatory Commission (NERC) in January announced the new tariff regime amid anxieties and huge expectations from Nigerians.

    Notable is the effectiveness of the tariffs. Many consumers do not pay cost-effective tariffs, a reason the government introduced the new regime.

    Earlier, NERC said it would implement the tariffs in phases, to ensure the payment is flexible.

    Stakeholders have expressed mixed feelings on the issue. While some believe that the cost of accessing electricity is high and that the Federal Government’s decision to continue to subsidise the cost of electricity till 2021, cannot lessen the pains of average users of energy until supply is stable, others do not.

    They backed the government’s decision to increase the tariffs. To them, the government is on the path of rejiging the sector by returning it to optimal productivity.

    DisCos’ view

    One of the three key stakeholders in the energy value chain is the 11 power distribution companies (DisCos), which issue electricity bills and in return collect money from customers. Painfully, the money is not paid promptly due to irregular supply of power.

    The Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan, said the supply of electricity would improve as soon as there is increased revenue from the tariffs.

    He said: “While I understand the frustrations of Nigerians that they are not getting enough supply of electricity, it is pertinent to say that the poor funding of the sector, in recent times, caused the problem. For the sector to be efficiently run, the price of electricity must increase.

    That is what the government has done by trying to implement new electricity tariffs on April 1, this year. Nigeria cannot have electricity if those in government refuse to sit down, examine issues affecting the sector, and proffering solution. We must realise that the cost of production of electricity determines its price.”

    He said the only way the country could mitigate the rising cost of electricity is to make money available to the operators and that is what the government has done by putting in place cost-effective tariffs.

    Other operators

    The Chief Executive officer, Meter Electricity Manufacturers Company Nigeria Limited (MEMCOL), Mr. Kola Balogun, said illiquidity is the bane of the sector, adding that consumers lacked the cash to pay for the rising cost of electricity.

    He said the government is subsidising the sector by providing intervention funds to the operators, adding that it cannot continue to fund the sector when it has other responsibilities unattended to. The sector, he said, would have enough money for operation if the tariffs are well implemented.

    Private sector operators

    According to the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, the Federal Government does not have the right to implement new electricity tariffs in view of the poor supply of electricity.

    Read Also: Increased electricity tariff not guarantee for DISCOs efficiency

    In an interview with The Nation, he urged the government to fix the problems in the industry before talking about the new tariffs.

    Yusuf said: “The power sector is in a dire strait. Though the issue of providing electricity to more than 200 million Nigerians is not a rocket science, the government can solve the problem in the power sector by using any of the new models in Europe and United States. There are models over there that are working.

    It is a question of using the right model to fix the multifaceted challenges that are facing the power sector.These are issues around financial capacity of investors, technical capacity, tariff issues, technical and commercial losses, economics of gas supply, gas pricing and the dynamics of the investment assumptions.

    There are also political and social issues affecting pricing and related issues.  We need to take all these on board to get enduring solution.”

    LCCI, Yusuf noted, has submitted proposals on how to provide a lasting solution to the problems, which are facing the sector.

    He said the proposals border on how to  decentralised the power sector, focus on off- and mini-grid, provide more investment in embedded power option, promote captive power plants, provide incentives for renewable energy solution, including abolition of import tariff on renewable energy equipment batteries and inverters and address metering.

    The rising cost of energy, he said, increases the cost of goods and services produced locally and further drive the rate of inflation.

    “High cost of production implies higher prices, which reduces the real income of citizens, erodes purchasing power of the citizens and, invariably, undermines the welfare of the people.

    “It also aggravates the poverty situation in the country. Many factories have been turned into warehouses for imported finished goods on account of competitiveness challenges faced by industrialists on account of high energy cost and other business environment issues.

    Some have been taken over by worship centres, while others have been converted to supermarkets.  This is the unfortunate trend which can be attributed to the prohibitive energy cost in the economy. This is why it is easy for imported finished products to overrun domestically produced goods,” he added.

  • ‘Power firms record 17deaths in Q3’

    ‘Power firms record 17deaths in Q3’

    Our Reporter

     

    The Nigerian Electricity Regulation Commission (NERC) has said 17 deaths and eight injuries of various degrees involving employees, companies and third parties were recorded in third quarter of 2019.

    NERC stated this in its third quarter report made available on its website. The report said the commission received a total of 104 accident reports from the licensed operators during the third quarter of 2019.

    “The accidents, however, resulted to 17 deaths and eight injuries of various degrees involving both employees of the companies and the third parties.

    “In comparison to the second quarter of 2019 when 37 deaths and 18 injuries were recorded, there was a significant improvement in the health and safety performance of the operators in the third quarter of 2019.

    “In line with its mandate to ensure safe and reliable electricity services, the commission has commenced enforcement on some of the incidence involving various safety breaches during the third quarter,” it said.

    Read Also: New electricity tariff: What implications for consumers?

    According to the report, the Commission is also developing a comprehensive penalty and compensation structure for health and safety breaches in Nigerian Electricity Supply Industry (NESI).

    It said the structure would stop the utilities’ discretionary payment of compensations to electrical accident victims or their families.

    “On account of the commission’s stand for zero tolerance on safety breaches in NESI and in line with its strategic goals 2017-2020, the Commission has intensified its monitoring and implementation of various safety programmes,” it said.

    According to the Commission, the safety programmes are aimed at reducing accidents in the power sector. It listed the safety programmes being implemented to include the standardisation of system protection schemes, and engagement of stakeholders on Right of Way (RoW) violation.

    Others are public enlightenment on the safe use of electricity and a review of an operational procedure for Distribution System Operators (DSO) on fault clearing.

  • Consumers set agenda on DisCos audit

    Consumers set agenda on DisCos audit

    From John Ofikhenua, Abuja

     

    President, Nigeria Consumer Protection Network, Mr Kunde Olubiyo, has set agenda for the Federal Government on the ongoing forensic audit of the 11 electricity Distribution Companies (DisCos).

    He sought a holistic measure for the entire value chain of the Nigeria Electricity Supply Industry (NESI).  Olubiyo told The Nation that the government should carry out a financial and technical audit of the entire power sector. He recalled that between 2013 and 2015, the government issued some credit facilities to the privatised power sector.

    Olubiyo, who was also a former member, National Technical Investigative Panel on Power System Collapses, said: “Government should do a forensic  financial auditing & technical of the entire architecture of the Nigerian power sector.”

    The government, according to him, should wound down its equity and pull out its 40 per cent stake in the sector. He was of the view that no individual person, persons or group amongst the present equity holders that has as individual up to 40 per cent stake.

    He advised that as the largest shareholder may not need to Escrow the Account of the 11 Electricity Distribution Companies but it should pull out after the auditing the firms.

    Read Also: DisCos didn’t remit N120.85b in 2019 – NERC

    Olubiyo said the present investors in the DisCos should be “conscripted by the Federal Government to using the economic dynamics to force the parent investors to dilute their equity from 60 per cent to 30 per cent.

    The 30 per cent to be held by the 11 DisCos should be properly registered, properly structured and properly quoted on the floor of the Nigerian Capital Market/ Stock Exchange.

    He suggested that all the DisCos should also be translated into a Public Liability Companies (PLC). The remaining 70 per cent, he said, should be thrown open and be subscribed to viz Initial Public Offerings ( IPOs) and other available financial instruments within the capital market.

    According to him, government’s roles in the post privatized electricity sector should be that of formulation of investor-friendly policies, provision of economic stimulus and the much needed fiscal and non- fiscal incentives.

    He also asked the government to consider other reforms, which speak to the heart of governance structure, review of the regulatory, institutional and legal framework.

    He specifically said  the “Transmission Company of Nigeria should be unbundled and broken down into smaller specialized agencies for improvement in service delivery, administrative and operational efficiencies.”

     

  • A call to President Buhari to save the investors at LADOL free zone

    A call to President Buhari to save the investors at LADOL free zone

    David Simon

    We call upon Mr. President to save foreign investments in LADOL; we call upon Mr. President to act fast for the sake of employment opportunities lost by Nigerians and its negative impact on the Nigerian economy.

    In response to the calls by the Nigerian government for foreign investors to invest in Nigeria, the stakeholders of Africoat made a conscious decision to invest a considerable amount of money in the Nigerian pipe coating business. This decision was based on credible market data.

    Africoat can boast of world-class expertise as their Nigerian and expatriate personnel is made up entirely of ex-employees of Bredero Shaw with extensive technical expertise in worldwide pipe-coating operations.

    To start their operation in Nigeria, Africoat 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 they established a world-class pipe-coating facility.

    Unfortunately, a dishonest caretaker of the Lagos Free Zone has deployed all arsenals at its disposal to strangle and seize Africoat assets by creating a toxic working environment to derail the aggressive ambitions of building local capacity in Nigeria and creating employment opportunities.

    As soon as Africoat settled for business, LADOL terminated the services agreement signed with Africoat and gave the final notice for the removal of all Africoat equipment/properties from the free zone immediately.

    The termination of the services agreement and LADOL’s refusal to renew the NEPZA operating license caused Africoat to lose promising business opportunities followed by dismissal of its employees.

    LADOL’s ultimate ambition in the free zone is not to attract investors to boost Nigeria’s economy but to lure unsuspecting investors to make investments that LADOL will later attempt to seize.

    When the unsuspecting investors make millions of dollars of investments, LADOL will create toxic environment that makes it impossible for investors to operate so that it seizes all the investments, especially as some of these assets are immovable.

    For instance, LADOL issued a Final Notice on Removal of Africoat Properties from the zone on November 21, 2018 and gave Africoat nine days to complete the evacuation that took over 18 months to establish.

    Africoat is not the first victim of these underhand tactics; others have suffered same fate, leading to multiple litigations in Nigerian courts and abroad.

    Indeed, no other free zone in Nigeria is bogged down by multiple litigations like LADOL free zone and the inflexibility of the free zone manager towards conflict resolutions has made peaceful settlement of these disputes a herculean task.

    Africoat paid LADOL in excess of $25,000 to renew our operating license in January 2018. LADOL withheld the license for 10 months until the then Minister of Industry, Trade and Investment, Madame Aisha Abubaker personally intervened and forced LADOL to issue the license.

    Even after the minister forced LADOL to issue Africoat with license, LADOL resorted to physically blocking Africoat’s employees from access to the zone.

    Africoat business has suffered from the unreasonable antics of Ladol. Africoat has lost or forfeited pipe-coating works as a result of Ladol refusing to provide services. Ladol invoiced Africoat for hidden and exorbitant fees and demanded fully payment in advance of providing the services.

    Africoat had the privilege of meeting with the then acting Managing Director of NEPZA, on two occasions and was assured that action would be taken to check LADOL’s impunity and flagrant violation of free zone regulations. However, nothing was done and this created the impression that LADOL was either above the law or it was being protected by NEPZA, or both.

    NEPZA later called Africoat and LADOL to attend a meeting at the NEPZA office on April 26, 2019. This meeting highlighted the fact that NEPZA were protecting Ladol’s interest. This meeting was a one-sided affair with no effort in seeking resolutions to the ongoing problems perpetrated by Ladol on Africoat.

    Certain NEPZA officials sided with LADOL with no intent to take action against LADOL’s impunity in the management of Lagos free zone. At this point, NEPZA was considered part of the problem and not part of the solution. Issues such as different rates for different clients were acknowledged by NEPZA to be in violation of regulations but Ladol was allowed to continue to impose different rates.

    NEPZA’s apparent complicity in frustrating investments in Lagos Free Zone is in contrast with President Buhari’s efforts to attract investments.

    It appears only the NPA is taking actions to save investors operating in the free zones and portray Nigeria in a positive image.

    The Nigerian government must not allow private organisations such as Ladol to create monopolistic business environment utilising government assets.
    LADOL, by their commercial actions, should be investigated for financial crimes.

    Before LADOL kills more investments in Nigeria, the Nigerian government should take action to discourage LADOL’s monopolistic tendencies and encourage competition by issuing other free zone management operators’ license at LADOL.

    …..Simon writes from Lagos

  • Mojec to fast-track customers’ metering with Mobile MAP

    Mojec to fast-track customers’ metering with Mobile MAP

    By Busola Aro

     

    Mojec Meter Assets Management Company, a subsidiary of Mojec International Limited, has introduced Mobile Meter Asset Providers (MMAP) to  fast-track metering of customers and eliminate estimated billings.

    Managing Director/Chief Executive Officer, Mojec International Limited, Ms. Chantelle Abdul, told reporters in Lagos that with the app, it would take customers only 10 days to get a meter.

    Chantelle said: “We, specifically, designed this method to hasten the period it takes for customers to get their meter, which must have been paid for long before installation is done.

    So, we are beginning to do the job that the sector never did by introducing the Know Your Customer (KYC) process, where we know the customers, do a survey and get to ensure that there is supply and installation of the meter in less than 48 hours.

    ‘’We are the first to introduce the KYC and it has helped meet our goal of installing 1.2 million meters annually, which is 75 per cent of the electricity market and we plan to expand and triple the current.”

    Making reference to the company’s achievements, she said: “We have had the dream of expanding and making the power sector better even more before privatisation. We didn’t just see making the dream abroad but to make in a ‘Made-in-Nigeria for Africa’ dream and to provide job opportunities.

    Read Also: Eko Disco to meter all customers by March 2021

     

    So, Mojec is one of the first companies to bring smart metering that would solve the issue of theft. The smart meters are enabled with two-way communication (GPRS, Radio Frequency) medium that allows Utility access to customers’ information and energy monitoring.

    ‘’We pioneered vendor financing in Nigeria, innovated and implemented the first mass rollout of meters in the country, and for the first time ever, Nigerian utilities were deploying 100,000 meters yearly.

    This has made us to expand. We have more staff, our installation teams started doing projects across the country. So, we created jobs not only in manufacturing, but also on the field and giving Nigerian-Americans the opportunity to be part of this story.’’

    According to its Associate Head, Meter Asset Management, Onuorah Michael, the firm is et to cover 70 per cent of the meter gap scheme of about 6.75 million in three years and a process is being done to accomplish this.

    We are to close the meter gap through the Mobile MAP strategy, which is to take a whole modular mass rollout to the location. This is because it takes a long process before we finally get to install for customers.

    So instead of supplying to the warehouse, do a survey, make payment and it’s being authorised before installation is being done.

    So what Mobile MAP does is to make all these processes done in one day rather than six days or more and gets the meter in less than 48hours.

    We found out that Mobile MAP is indeed the most veritable way because customers now believe and are happy. So the strategy now is that between now and May, we would drive meters through Mobile MAP.

    We will create 53 locations to distribute meters and make customers happy,” Michael said.

  • NCDMB, Shell seal pact on gas facility development

    NCDMB, Shell seal pact on gas facility development

    By Emeka Ugwuanyi

     

    The Nigerian Content Development and Monitoring Board (NCDMB) and Shell Nigeria Gas (SNG) have signed agreement on the development of a Pressure Reduction and Metering Station.

    NCDMB will lease one hectare of its land at Polaku, Bayelsa State, to SNG, which will develop the pressure reduction and metering station.

    The agreement was signed in Abuja by NCDMB Executive Secretary, Kesiye Simbi Wabote and the Managing Director of Shell Nigeria Gas (SNG), Mr. E. D. Ubong.

    The pressure reduction and metering station will be used to distribute part of the gas from Shell’s Gbarain-Ubie Gas Plant for domestic utilisation.

    Wabote stated that the Board decided to use part of its land to catalyse the distribution and availability of natural gas to domestic gas users in Bayelsa State and neighbouring states, in line with the Board’s vision to be a catalyst for the industrialisation of the oil and gas industry and its linkage sectors.

    According to him, the availability of natural gas will open up the corridor of opportunities for investors. He added that NCDMB is already in receipt of proposals for the location of power plants, compressed natural gas (CNG) plants, and other manufacturing outfits  at Polaku.

    “With the extension of the gas pipeline network by SNG, more businesses can be supplied with natural gas, thereby, creating employment and enabling impactful economic activities.

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    With this partnership, we expect 30,000 direct and indirect jobs to be created in construction, manufacturing, and services sector within the next two years,” he said.

    In January, the Board partnered Rungas Prime Industries Limited in the establishment of a 400,000 per year Type 3 LPG Composite Cylinder Manufacturing Plant at Polaku, Bayelsa State.

    Wabote further noted that the Minister of State for Petroleum Resources, Chief Timipre Sylva, had declared 2020 as the Year of Gas and NCDMB had bought into this declaration. He stated that the deal with SNG will enable the provision of natural gas for power generation, feed stock, transportation, and for other industrial uses.

    He said SNG’s project aligns with the Board’s 10-year Roadmap, which aims to increase the level of Nigerian Content in the oil and gas industry to 70 per cent by 2027.

    The NCDMB chief also stated that the Board was delighted to partner with Shell Nigeria Gas (SNG) Limited because the company had been supplying natural gas via pipelines to industrial customers within the Agbara/Ota axis, including the Ogun-Guangdong Free Trade Zone in Ogun State, Aba industrial areas in Abia State, and Port Harcourt in Rivers State with a very impressive safety record.

    The SNG chief said Shell is excited to distribute gas from its Gbarain-Ubie facility to drive development in Bayelsa State and environs. He stated that Shell is the pioneer and leader in the delivery of domestic gas.

    SNG Chairman, Mr. Hans Nijkamp, said the investment would unlock gas delivery and economic development in Bayelsa State. “Everywhere we have distributed gas, we have seen the explosion of economic activities.

    That’s Shell’s domestic agenda for gas in Nigeria, it is very important and we have growth plans and very happy to work together with NCDMB,” he added.