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  • Why judges should understand electricity contractual obligations – Adelabu

    Why judges should understand electricity contractual obligations – Adelabu

    The minister of power, Adebayo Adelabu on Wednesday, February 21, charged judges in the country to appreciate the nuance nature of a regulated electricity market permeated by contractual obligations.

    He spoke at the 4th Seminar the Nigerian Electricity Regulatory Commission (NERC) organized for judges in Abuja.

    Adelabu said: “As we navigate our path towards a more commercially viable electricity market that is characterised by legal and contractual obligations, the imperative to understand the peculiar and nuanced nature of a regulated electricity market becomes even more imperative.”

    According to him, the seminar is part of the broader vision of the commission and NJI to engage the members of the judiciary on important developments in the sector.

    The minister noted that the judiciary’s pivotal role, through notable pronouncements, contributes significantly to attracting private investment in the power sector.

    Adelabu said the Nigerian judiciary has helped NESI with notable pronouncements and the act of the judiciary goes far in attracting private investment in the power sector.

    He added that in the financial services industry, “we say that investments will only follow certainty; and there appear to be no greater means of providing certainty than predictable, clear and logical judicial precedent that is dispensed by a competent bench.”

    The minister further noted that the seminar is a laudable initiative of the Commission geared towards building the capacity of the Nigerian bench towards achieving the desired objective of predictable, clear and logical judicial precedent in matters affecting the power sector.

    According to him, notable legislative changes have been the amendment of the Constitution of the Federal Republic of Nigeria with the granting of unfettered powers to sub-nationals to develop electricity markets within their jurisdictions and the Electricity Act 2023 that was assented to by Mr. President in the first month of his administration. 

    Read Also: JUST IN: We can’t continue to subsidise electricity — Adelabu

    He recalled that the Electricity Act 2023 introduces far-reaching features that propel market liberalisation, extend regulatory reach, and establish a more coherent policy framework that will mitigate the operational and systemic risks in NESI.

    Speaking, the NERC chairman, Sanusi Garba said the three-day seminar for judges was organized to stimulate discourse on emerging legal issues in the industry.

    He said: “The key objectives of the seminar are to stimulate a discourse on emerging legal issues relating to the NESI and to appraise the judiciary of the recent changes in the regulatory landscape.

    “We, therefore, invite Your Lordships and guests to very engaging sessions as we work towards eradicating patches of darkness in society.

    “We will start the day with a presentation that may be described as Electricity 101 and this will be followed over the next two days by presentations on typical industry issues by very distinguished professors, lawyers, and investors including the architects of the Electricity Act.

    According to him, the reforms of any private sector always require many difficult decisions.

    He recalled that a couple of years ago, a civil rights group, commenced a civil rights action against the commission whether owing to its announcement of a new tariff order.

    He said the group requested for interpretation on principally whether the commission can increase tariffs without a significant increase in supply.

    The NERC chairman said the group undermined the fact that there was sufficient consultation before the approval of the new rate.

  • JUST IN: We can’t continue to subsidise electricity — Adelabu

    JUST IN: We can’t continue to subsidise electricity — Adelabu

    Minister of Power, Adebayo Adelabu, has said that Nigeria cannot continue to subsidise electricity, adding that the country needs to start implementing a cost-effective tariff model. 

    This, he said, is because the country owes Generating Companies (GenCos) N1.3 trillion and gas companies $1.3billion.

    Adelabu stated this in a briefing in Abuja on Wednesday.

    The Minister said that only N450 billion was allocated to subsidy this year but the ministry needs over N2 trillion for subsidy.

    He said State Governments will be allowed to generate power independently to supply power to their States.

    Read Also: Ibadan explosion: Adelabu seeks support for victims

    He claimed the reasons behind the approximately six grid collapses that have occurred since December 2023 are the shortage of gas, aging equipment in the grid value chain, a limited ability to evacuate generated power, and the destruction of power plants in certain areas of the nation’s northeastern geopolitical zone.

    According to him, the Transmission Company of Nigeria(TCN) has over 100 unfinished projects because of differences in contract figures caused by fluctuations of the forex, as a result, the company won’t issue any new contracts until all projects are completed.

    The Minister added that the 2024 budget has over N50 billion set aside for the construction of small grids that will provide electricity to isolated locations.

  • Why electricity supply worsened — FG

    Why electricity supply worsened — FG

    The Minister of Power Bayo Adelabu has explained why the country has been experiencing low power supply. 

    He attributed the main cause of poor power supply to the low supply of gas to generating companies (GenCos).

    In a bid to proffer solutions to the lingering power problems, Adelabu held a meeting with electricity generation and distribution companies.

    Adelabu, on Friday, said the meeting was to address the ongoing issues of blackouts in Nigeria.

    On his verified “X” page, he said: “Yesterday, I had crucial discussions with power Generating companies (GENCOs) and Distribution companies (DISCOs) to address the ongoing issue of blackouts in parts of our country. Power supply during the yuletide improved, but unfortunately, we’ve experienced setbacks in the new year.

    “After investigations, it’s clear that the main cause of poor power supply is the low supply of gas to GENCOs. Visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State to understand the challenges firsthand. Resolving the gas supply issue is our top priority.

    “During our meeting, we also addressed the indebtedness to GENCOs by Nigeria Bulk Electricity Trading Company (NBET). While acknowledging the sector’s liquidity challenge, we are working on validating the debt and determining a fair resolution.

    Read Also: Electricity consumers rose to 11.71m in Q3, says report

    “I emphasised the importance of GENCOs establishing contractual arrangements with gas suppliers to ensure a steady gas supply. Recognizing concessions may be needed, I assure you that we are committed to working on this to stabilize the power sector.

    “To tackle the gas supply and liquidity challenges, I’ve decided to form a committee involving all stakeholders. Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens. 

    “A plan has also been established to initiate discussions with the Minister of State for Petroleum Resources regarding collaboration and to emphasize to the Ministry the importance of prioritizing Gas to Power.

    “Our commitment is unwavering in addressing the challenges affecting power supply. We understand the impact on citizens, and our goal is to swiftly resolve the issues of gas supply, indebtedness, and overall sector stability. Your patience is appreciated as we work collaboratively towards a brighter, more reliable energy future for Nigeria.”

  • Olorunsogo, Omotosho power plants underutilised, says minister

    Olorunsogo, Omotosho power plants underutilised, says minister

    Minister for Power, Bayo Adelabu has said the Olorunsogo and Omotosho power plants are underutilized. He stated this during a visit to the power plants in Ogun and Ondo states respectively.

    Olorunsogo and Omotosho power plants are power generating companies under Niger Delta Power Holding Company which is owned by the government of the federation.

    The Olorunsogo power plant generates 750 megwatts (Mw) while the Omotosho power plant generates 500Mw, the minister identified that the combined capacity utilization of both plants is below 25 percent describing it as underutilized.

    These are big power plants with over 450 Mw installed capacity, he noted.

    “I am amazed at the level of underutilization of these power installations. Each of them operates below 25per cent capacity when we are still complaining that power generation is low in this country,” the minister said.

    Read Also; Fed Govt to save N500m annually from FAAN relocation, says Keyamo

    Adelabu however identified gas availability, energy invoice settlement, TCN evacuation corridor, multiple-taxation and forex to source spare part as factors affecting the generating plants.

    “The under capacity utilization is due to a variety of reasons. The major part of it is the shortage in gas supply to these installations. This is why I needed to see these plants myself. To look at what can we do to improve the operational capacity of these plants.

    “What we can do to repair those turbines that are down, what we can do to support these power plants to operate at impressive capacity so that power supply will improve nationwide,” he said.

    The minister, who expressed delight at the size and technology of the power plants, added that their operational history is also impressive.

    Adelabu said the visit is part of the nationwide visit to power installations of the Federal Government to fiscally inspect and monitor the physical state and the operational state of these power plants.

    “And I have seen for myself when we get to the office, we will discuss with the management of these companies to see how we can collaborate and cooperate to ensure that the federal government comes into their assistance to support them to improve the operational capacity and consequently improve the level of power supply to the distribution companies.

    “I believe that these companies are currently undervalued and before they can be disposed. I think a number of things need to be carried out by the federal government. To ensure that they are brought to a higher capacity and their valuation improves.

    “If they are sold as they are currently in state. I believe the country will be losing. We have invested so much in these power installations.

    “I mean they are just about 12 years old. But if you look at the running hours of all the plants that we have they are almost close to being new plants, almost all of them are below 30,000 running hours since inception.

    “So with a little overhaul here and there, I believe we can get a higher generation from the combined capacity of these two plants.

    “We are not stopping at Olorunsogo and Omotosho power plants alone. We are only starting from here; we will still get to other plants,” the minister said.

    Chief Executive Officer, Niger Delta Power Holding Company Limited, Chiedu Ugbo, said the plants have great technical availability as well as strategic national assets adding that Nigerians need electricity and therefore no need keeping them non-functional.

    Ugbo said the company has commenced a program tagged “Light Up Nigeria “ which was aimed at attracting industrial cluster who are not on the grid by providing them electricity at cost reflective tariff through distribution companies.

  • Ibadan explosion: Adelabu seeks support for victims

    Ibadan explosion: Adelabu seeks support for victims

    • Promises to restore electricity in affected area
    • NLC, TUC commiserate with Makinde, residents

    The Minister for Power, Chief Adebayo Adelabu on Friday urged the federal government, State, Non-governmental organisations (NGOs), and well-meaning Nigerians to come to the aid of victims of the explosion that occurred at Bodija, Ibadan, to relieve them of their pains.

    He promised to restore power to the affected area by getting in touch with the management of Ibadan Electricity Distribution Company (IBEDC) to ensure they give priority to the area and immediately fix electricity infrastructures damaged by the explosion.

    Also, Labour leaders under the aegis of Nigeria Labour Congress (NLC), Oyo State Council, and its Trade Union Congress (TUC) counterpart have commiserated with Oyo State governor, Seyi Makinde, and the residents of the state on the recent blast that rocked Old Bodija, Ibadan area of the capital city.

    Speaking in Ibadan during his on-sport assessment to the scene of the blast, the Minister said many electricity infrastructures like transformers, electric poles, electric cables, and others were destroyed by the blast.

    According to him “Electricity infrastructures were destroyed, transformers have been blown up, electric poles have been uprooted, power cables completely out, so this is where I also need to come in.

    “I will personally supervise to ensure that this is promptly done in terms of replacing the transformers, replacing all the electric poles, and even reconducting the areas in terms of power cables, people around there must not live in darkness, we shall stand by them till we see that their pains are been relieved inshallah.

    “I appeal to the federal and state government, well-meaning individuals, this is the time we need ourselves, we should show love to them and provide succor to reduce hardship for the victims.

    “I’m happy that the state government has set up an account for donation, I will do my best in my official capacity to appeal and mount pressure on the federal government to do something for the people involved and also appeal to the state government not to leave the victims alone in terms of providing succor and relieve material to the people that were displaced here.

     “Privileged individuals should also donate to the victims so as not to feel the impact of the explosion too much, because there is no amount you can give to the people that can replace their losses.

    “For those that need accommodation, we shall try our best. For those who need relief material, we shall try our best. I will also try my best to contribute to the donation account opened for the victims.

     NLC, TUC commiserate Makinde, residents

    The Unions while commending the state government and particularly Governor Makinde for the quick and prompt response in providing succor to the victims also appealed to relevant stakeholders locally and internationally to come to the aid of the government in its rescue and restoration efforts.

    Read Also: No bail for kidnappers under my watch, Wike declares

    Oyo NLC Chairman, Comrade Kayode Martins and his TUC Chairman, Comrade Bosun Olabiyi made the appeal in a statement they jointly signed on Wednesday. 

    The leaders of the Workers’ Union said, again, Governor Makinde has proved to be a friendly, people-concern and oriented person who has always shown genuine concern for the needs and plight of the residents irrespective of class or status.

    They lauded the governor for putting up search and rescue efforts which has made the level of casualty as minimal as possible with continuous support to the wellbeing of the victims.

    While commiserating with the people who lost their loved ones and property to the incident, urged the people to exercise more patience with the government in its bid to help restore life to the victims.

    They expressed confidence in the government to do justice to the findings of the investigation, noting that perpetrators would never be covered no matter how highly placed they could be.

    They called on international organisations, development partners, and collaborators to provide needed support to the Makinde-led government, saying the government has shown that it will always put the interest of the people and residents of the state first.

    The NLC and TUC also appealed to the Federal government not to play politics in terms of providing needed support to the state government and the victims as soon as all investigations into the matter are concluded.

  • FG working to resolve blackout, says minister

    FG working to resolve blackout, says minister

    • Vows to pay GenCos to resolve blackout    
    • Adelabu urges Zulum to protect power installation in Borno

    Owing to the blackout being experienced in the country, the Minister of Power, Chief Adebayo Adelabu has revealed that the Federal Government is looking into ensuring that outstanding payments are made to power generation companies (GenCos) to resolve the problem.

    The minister also urged the Borno State Governor, Babagana Umara Zulum to look at the provision of security to protect power infrastructure in the State.

    He disclosed this when the governor visited him in Abuja to explore areas of collaboration between the ministry and the Borno State government. 

    According to a press statement signed by Adelabu’s Special Adviser, Strategic Communication, Mr. Bolaji Tunji at the weekend, the government is taking steps to address the challenge of blackout in the country.

    Adelabu, in the statement, said efforts were on the way to ensure outstanding payments are made to generation companies, to ensure improved gas supply and increased power generation, and to also enable distribution companies to supply more electricity to Nigerians.

    The statement reads in part: “We acknowledge the current unsustainable situation, and we expect a turnaround immediately.

    “Blackouts being experienced in the country have been attributed to low supply of Gas to power generating companies.

    “The situation has adversely affected production leading to blackouts in some parts of the country.”

    The minister promised a quick resolution of the problem.

    The minister, while acknowledging a significant downturn in the level of power supply to Nigerians,  said it was mainly due to a decreased level of gas supply to generation companies. ”This situation has led to a lower level of energy supplied to load centres, which has affected the supply of electricity to distribution companies.

    “The federal government is looking into ensuring that outstanding payments are made to power generation  companies to resolve the problem.” 

    Minister urges Zulum to protect power installation in Borno

    Speaking to the Borno governor during the visit, Adelabu particularly referred to the destruction of power towers recently in the North East zone which led to the death of a security personnel and disruption of electricity to some States in the zones.

      “Although we immediately commenced the repair, it is quite discouraging when the government spends so much and these assets are vandalized.”

    According to a statement from the ministry, Zulum, who visited during the week,  said his administration had spent over N500 million in the purchase of transformers for different communities in the State.

    He said his visit was to explore more opportunities for working together with the Ministry of Power.

    The Minister who expressed appreciation for the visit reiterated his call for collaboration between the State and the Federal government especially in the provision of power infrastructure.

    He noted that Governor Zulum’s action has further confirmed the importance of collaboration between the State and the Federal government in the provision of regular electricity supply to businesses and households in the country.

    Adelabu further revealed that the Federal Government is embarking on significant expansion projects on the Transmission network to increase electricity supply to load Centres.

    Read Also: FG urges mine explosives firms to tighten logistics, curb leakages

    “These grid projects will strengthen the transmission network and create alternative transmission corridors to avoid grid collapse,” he said.

    Commending the governor, the Minister said the provision of regular electricity in the country could be further strengthened with collaboration between the State and the Ministry of Power.

    The Minister also expressed the view that the Electricity Act of 2023 has made provision for Sub Nationals (States) to participate in the electricity market, and he looks forward to creating an enabling environment for the State’s participation in the electricity market.

    “By investing in transformers and electricity poles which is about grid extension, the Governor has further confirmed our approach that the State needs to be involved in the provision of power infrastructure.

    “We have further indicated to distribution companies that end-users must not be required to purchase equipment for the delivery of electricity. This infrastructure must be provided by the distribution companies while there will be interventions from Federal and State governments. Agencies such as the Rural Electrification Agency will also intervene in electrifying communities that are not commercially viable for the distribution companies,” Adelabu said.

  • Ibadan explosion: Adelabu seeks support for victims, promise to restore electricity in affected area

    Ibadan explosion: Adelabu seeks support for victims, promise to restore electricity in affected area

    The Minister for Power, Adebayo Adelabu on Friday, January 26, urged the federal government, the state, Non-Governmental Organisation (NGOs), and well-meaning Nigerians to come to the aide of victims of explosion occurred at Bodija, Ibadan to relieve them of their pains.

    He promised to restore power back to affected area by getting in touch with management of Ibadan Electricity Distribution Company (IBEDC) to ensure they give priority to the area and immidiately fix electricity infrastructures damaged by the explosion.

    Speaking in Ibadan during his on-sport assessment to scene of the blast, Adelabu said many electricity infrastructures like transformers, electric poles, electric cables and others were destroyed by the blast.

    He said: “Electricity infrastructures were destroyed, transformer has been blown up, electric poles has been uprooted, power cables completely out, so this is where I also need to come in.

    “I will personally supervise to ensure that this is promptly done in terms of replacing the transformers, replacing all the electric poles and even reconducting the areas in terms of power cables, people around there must not live in darkness, we shall stand by them till we see that their pains are been relieved inshallah.

    “I appeal to federal and state government, well meaning individuals, this is the time we actually need ourselves, we should show love to them and provide succor to reduce hardship for the victims.

    “I’m happy that the state government has set up an account for donation, I will do my best in my official capacity to appeal and mount pressure on federal government to do something for people involved and also appeal to the state government not to leave the victims alone in terms of providing succor and relieve material to the people that were displaced here.

    Read Also: Adelabu promises to pay GenCos, resolve blackout

    “Privileged individuals should also donate to the victims for them not to feel impact of the explosion too much, because there is no amount you can give to the people that can replace their losses.

    “For those that need accommodation, we shall try our best. For those who need relieve material, we shall try our best. I will also try my best to contribute to the donation account opened for the victims.

    He added: “But the major things is that the federal government, state government and NGO should also do their best, this thing is not a loss to them alone, it is a loss to all of us. We should stand with them for them to know that they are not alone.

    “At communal level, people should not keep silent, if you see something, say something and follow up. Alot of things happen around us and people just keep silent, you must be interested in what your neighbors is doing, activities of your neighbors and what is going on around you, if you can not handle it personally, escalate it to the authority and they will take it up from their.”

  • Adelabu promises to pay GenCos, resolve blackout

    Adelabu promises to pay GenCos, resolve blackout

    Owing to the blackout experienced in the country, the Minister of Power, Chief Adebayo Adelabu, has said Federal Government is looking into ensuring outstanding payments are made to power generation  companies (GenCos) to resolve the problem.

    According to a statement his Special Adviser, Strategic Communication,Bolaji Tunji, issued at the weekend, the government is taking steps to address the challenge.

    The statement quoted Adelabu as saying: “Efforts are on the way by the Federal Government to ensure outstanding payments are made to generation companies, to ensure improved gas supply and increased power generation, this will also enable distribution companies to supply more electricity to Nigerians.”

    Read Also: After a century, Oyo community gets electricity as Adelabu pledges expansion

    The Minister added: “We acknowledge the current unsustainable situation, and we expect a turnaround immediately.”

    Adelabu assured  efforts are being made to ensure a quick resolution of the problem.

    “In the past couple of weeks, there has been a significant downturn in the level of power supply to Nigerians. 

    “This is mainly due to a decreased level of gas supply to generation companies. 

    “This situation has led to a lower level of energy supplied to load centres, which has affected  supply of electricity to distribution companies.”

  • After a century, Oyo community gets electricity as Adelabu pledges expansion

    After a century, Oyo community gets electricity as Adelabu pledges expansion

    Residents of Adafila, a rural community in Oriire local government, Oyo state are celebrating the provision of stable and affordable electricity by the Rural Electrification Agency (REA), an amenity they never enjoyed in the community’s over 100 years of its existence.

    Dwellers in the community were full of praise for the Minister of Power, Adebayo Adelabu and REA Managing Director, Engr. Ahmad Salihijo Ahmad, yesterday when the duo visited the solar power station in the community as part of their national facility tour.

    Built by Havenhill Synergy Ltd. in partnership with the REA, the solar-powered electricity is powering about 1000 houses, shops and factories in the community in a 24-hours-a-day supply. It is also affordable for residents of the sleepy community.

    Speaking on the 90 KW power station, the company’s Head of Projects, Oluwaseun Abraham said the project was a power solution for the entire community.

    He revealed that there were over 1,300 connections in Adafila, which have been stable for over one year.

    Addressing reporters after inspecting the project, Adelabu expressed satisfaction and promised to enlarge the facility following increased demand due to increasing economic activities in the community.

    The minister assured the residents of President Bola Tinubu’s commitment to improving the electricity supply for Nigerians to enhance comfort and wealth creation.

    Read Also: Ibadan explosion: Kalu, Akobundu condole Makinde, Oyo residents

    According to him, the projects, 27 of which are cited across Oyo State, signified that not only residents of urban centres are entitled to stable power supply but also rural dwellers who produce food for all Nigerians.

    In his address, the REA boss said: “Adafila is a vibrant community and like many vibrant unserved and underserved communities across the nation, energy poverty remains a stumbling block to socio-economic growth.

    “We have witnessed over and over again the transformative change that comes with energy access infrastructure in off-grid communities and we celebrate with the people of Adafila for the successful completion of this 90KwP solar hybrid mini-grid.

    “With much confidence, I can report back that the Federal Ministry of Power, through the Honourable Minister, Chief Adebayo Adelabu has a mandate to accelerate the process of alleviation of energy poverty in line with the vision of His Excellency, President Bola Ahmed Tinubu, GCFR.

    “The RENEWED Hope agenda of Mr. President is an agenda that has its roots in the realization of people-focused, data-driven interventions for national development. This is why we are witnessing the growth of strategic partnerships across all 36 states after the passage of the 2023 Electricity Act by His Excellency the President.

    “Over the years, we have optimized the NEP to strengthen the off-grid space while deploying over 100 mini-grids and powering over 5 million Nigerians through this singular programme. With the successful implementation of the programme, we are confident in the model and positioned for an even wider impact across the nation.

    “Our focus remains the same, with a renewed sense of purpose: to accelerate the deployment of sustainable energy solutions for productive use, socio-economic growth, and transformative change in unserved and underserved areas.

    “In line with the agenda of the Federal Ministry of Power, we must continue to work collaboratively to ensure the sustainability of these projects in a way that translates to long-term impact. We, therefore, use this opportunity to call on the good people of Adafila to now see themselves as co-partners in the business of nation-building.

    “Together, we can keep this facility safe and secure. Together, we can ensure the optimal usage of this facility so every man and woman in Adafila feels the impact.”

    Leaders of the community commended the Federal Government for the project, highlighting its many benefits to their well-being.

  • Ibarapa leaders seek Adelabu’s intervention over 15-year-old power project

    Ibarapa leaders seek Adelabu’s intervention over 15-year-old power project

    Leaders in Ibarapa under the aegis of Initiative for Ibarapa Electricity have demanded urgent intervention of Minister of Power, Chief Adebayo Adelabu over timely completion of the power project in the zone.

    The leaders, led by the Olu of Igboora, Oba Jimoh Titiloye, during a courtesy visit to Adelabu appealed to him for timely completion of an electricity power line project that has been ongoing in the zone for 15 years. 

    The delegation, which comprises of representatives from the seven towns and three local governments that made up Ibarapa zone of Oyo State were received by the Minister, Managing Director, Transmission Company of Nigeria(TCN), Dr. Ahmed Abdulaziz and Managing Director, Rural Electrification Agency, Mr Ahmad Salihijo Ahmad.

    Speaking at the meeting, a member of the delegation and convener of the initiative, Chief Akinyemi Akinlabi highlighted adverse effects of lack of electricity in the community.

    He lamented that lack of electricity in the communities have resulted in increased crime rate, reduced productivity, closure of industries and low quality of life.

    Read Also: Adelabu to Nigerians: stop buying transformers, poles, cables for DisCos

    The Managing Director, TCN, Abdulaziz in his response acknowledged stages of the project’s completion, blaming the delay on lack of funds.

    Adelabu however expressed familiarity with the challenges faced by Ibarapa people, promising to explore solutions within shortest possible time. 

    On the delegation were Onidere of Idere Oba Aderoju Kingsley; Oluaso of Iberekodo Oba Adedamola Badmus and Onilala of Lanlate, Oba Sunday Oladejo.

    Others were Asawo of Ayete Oba Okeniyi Ewuola; Asigangan of Igangan, Oba Rafiu Ariwoola and Odofin of Eruwa, Oba Olayide Ojedapo.