The Nation Newspaper

Tag: John Ofikhenua

  • Centralization: Gencos accuse DisCos of hiding accounts

    Centralization: Gencos accuse DisCos of hiding accounts

    • As FG owes Gencos over N500b
    The crisis in the Nigerian Electricity Supply Industry (NESI) got messier yesterday as the electricity generation companies (Gencos) asked the electricity distribution companies (DisCos) to open their account books for scrutiny.
    Whereas the DisCos had condemned the request from the  Nigeria Electricity Regulatory Commission (NERC) to escrow their accounts, the Gencos under the auspices of Association of Power Generation Companies (APGC), described it “as not just a welcome development but also a wake-up call to all participants in the electricity market.”
    The APGC Executive Secretary, Dr Joy Ogaji, who addressed reporters in Abuja yesterday, recalled that a fortnight ago the Association of Nigerian Electricity Distributors (ANED) likened the move to centralise their revenue accounts to the nationalisation of the Discos.
    Ogaji expressed surprise that Discos are churning out stories and “crying wolf” to gain consumers’ sympathy whereas the NERC enacted the tariff with their consent.
    She added that “there is something that Discos are not telling the people. What government is calling for is not just escrowing but visibility.”
    She, however, explained that the electricity sector is a value -chain that needs to be remunerated as applicable covering the cost of generation, transmission and distribution.
    The Gencos, according to her, are entitled to “60% of markets remittance as they not just generate power but also pay for gas supply and gas transportation. Transmission charge cost 11%, distribution gets 25% while the remaining 4% is meant for regulatory charges and NBET.
    ” The revenue referred to by the distribution companies are not their personal revenue but market funds to which they were made trustees to collect and remit.”
    Continuing, Ogaji revealed that the poor remittance of market funds by the DisCos has prevented the rest of the electricity value-chain from meeting up with their operations and also service their liabilities which includes gas payments.
    The APGC said that Gencos, the supply sector of the industry, can no longer perform required scheduled maintenance and also pay for gas supply.
    This, she said, has made the need to monitor the flow of market funds necessary to enhance transparency in the market and also give the regulator the ability to identify the issues that will progress the sector and act accordingly in advising the government and stakeholders where funds actually needs to be plugged into in order to bring about self-sustenance and competitiveness.
    According to her, the federal government are now owing the Gencos over N500billion that excludes interest, which has made paucity of cash the major challenge of the operators.
    Asked to comment on the N701 government intervention that is underway for the power sector, she said the Gencos were not consulted but only read about it in the newspapers.
  • Customs remove HND dichotomy, promotes 3487 officers

    Customs remove HND dichotomy, promotes 3487 officers

    Nigerian Customs Service (NCS) officers who are holders of Higher National Diploma (HND), on Monday received good news from the Comptroller General, Col. Hameed Ali, who raised their salary grade from 07 to level 08.

    The Customs boss, who decorated some of the 3,487 senior officers that were newly promoted in Abuja, told them that their promotion was purely on merit and a call for more work.

    He also announced that the rank structure of the Nigeria Customs Service has been aligned with that of the Nigeria Police Force (NPF).

    The decisions, according to him, were expected to boost the morale of the officers and eliminate confusion in the seniority of officers.

    His words: “In compliance with circular Ref: HCSF/EIR/CND/100/ST/98 of 8th September, 2016 from Head of Service of the Federation and the approval of Government since April 1992 for the Nigeria Customs Service to align with the Nigeria Police Force rank restructure and in fulfillment of the CGC’s mandate to reorganize and reform the Nigeria Customs Service. The CGC has directed as follows:

    [quote font_size=”18″ color=”#000000″ bgcolor=”#dda552″ bcolor=”#dd3333″ arrow=”yes”]“i) All HND holders currently on salary grade level 07 are automatically moved to salary grade level 08. Supplementary budget will be made for payment of arrears of salary;

    ii) The rank structure of the service is aligned with the Nigeria Police Force forthwith;

    iii) Officers in the Inspectorate Cadre on Salary Level 08 and above are to align to appropriate rank in the Superintendent Cadre.[/quote]

    “This is expected to boost the morale of officers and eliminate confusion in the seniority of officers.”

    Ali told the officers that the days of basing promotion on sentiments are over, stressing leverage of federal character that they enjoy at the point of entry, what counts soon after that is merit and hard-work.

    He said that the promoted officers which include the Public Relations Officer, Mr. Joseph Attah that is now a Deputy Comptroller, do not owe anyone any gratitude except God and their efforts that earned them the promotion.

    The Comptroller General said: “we had in the past promoted people who did not deserve it and that was what we met in the management. But now merit is key to your promotion.”

    He also announced that the Customs and Command College, will in June commence operation as a full command.

  • Worst oil days over – Kachikwu

    Worst oil days over – Kachikwu

    …says industry loses $1t loss to crisis
    The Organization of Oil Exporting Countries (OPEC) Secretary General, Mohammed Barkindo yesterday said the worst days of the oil crisis are already over but the challenge remains how to consolidate the gains.
    He said that with the joint decision that the OPEC and non-OPEC members took, and the cooperation in December led to some member countries withdrawing about 1.2million barrel per day and the 11 non-OPEC withdrew 11 barrels, leading to over 90% compliance level, which is unprecedented in the history of the organisation.
    The OPEC chief, who spoke in Abuja, during a visit to the Minister of State for Petroleum, Dr Emmanuel Ibe Kachikwu said that: “So, we remain optimistic that the worst is over for the circle. The challenge now is how to solidify this platform of 24. I must report to you that the signals we are getting from the non-OPEC side is highly positive.”
    He reported that Equitoria Guinnea of the Gulf of Guinea has applied formally to join the organisation since the country has seen the effort that has been made to pull the oil industry out of the worst circle.
    According to him, the market would dictate the equilibrium price eventually and the restoration of the balance of the one valuable of stock will bring the market to balance and the equilibrium price that will be fair to producers and consumers that will bring back investment to the industry.
    Asked whether Nigeria will continue to enjoy, he said ” going forward, this decision is for six months and therefore, this country continues to be exempted for this six months. And we will continue to pray and hope that they will recover their production and rehabilitate their production facilities and return to the market full because the market needs every barrel that Nigeria can produce or Libya or the Islamic Republic of Iran. The demand figures continue to show robust growth of over 1 million a day going forward. And therefore, while we are working hard to restore this stability, the focus is how we can sustain it going forward.”
    Earlier, he dropped the hint that the global oil industry supply chain lost $1trillion to the crisis.

    He noted that “the industry globally has lost nearly $1trillion in terms of deferred projects, in terms of adverse cancellation of projects across the supply chain.”
    Barkindo who said that the decisions to cut supply has been beneficial to the industry added that “we are the course of pulling this industry out of the worst recession that we have entered to restore stability to the market on a sustainable basis that will allow investments to come back.”
    According to him, the rate of turnover of the Chief Executive Officers of the Nigerian oil industry was part of its challenges.
    Speaking, Kachikwu said that the oil bring will hit $60 per barrel.
    He noted that the OPEC had lost its credibility, which it is now recovering from.
    The minister said that with the restoration of confidence in the organisations’ investors are no longer considering reserve but a future rise in price.
    His words: “It is a fact that he (Barkindo) have OPEC a new face. OPEC had lost credibility that nobody was listening to us whenever we came for meetings…
    ” But today, with the buid up in the US of reserves, nobody is looking at that in terms of pricing oil. They are simply looking at what OPEC is doing. As the momentum rose, we are actually going to be at $60 roof.”

     

  • Discos get Friday deadline for submission of MDAs debt

    Discos get Friday deadline for submission of MDAs debt

    The Minister of Power, Works and Housing, Babatunde Fashola on Monday issued a deadline of February 28 to electricity Distribution Companies (DisCos) for the submission of their Ministries, Department and Agencies debt, audited and management accounts. 

    The announcement was contained in a communique that was issued at the end of his 12th monthly meeting with operators at Ibadan Electricity Distribution Company (IBEDC) Olorunsogo Injection Substation Substation, Akanran, Lagos-Ibadan Expressway, Ibadan, Oyo State.

    Fashola, said the communique, chaired the meeting in which the  Minister of State, Hon. Mustapha Baba Shehuri was also present.

    The meeting focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.

    The operators were fully represented at the highest executive management levels, including Commissioners of the Nigerian Electricity Regulatory Commission (NERC), Managing Directors and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry.

    The meeting commiserated with the family of victims of electrical accidents and asked the  Nigerian Electricity Management Services Agency (NEMSA) to monitor the resolution of these issues.

    It also charged all DisCos to reinvigorate their efforts on the safety of their networks and facilities.

    Power plant

    The communique said that the meeting reiterated that service delivery should remain a key focus of the industry, with enhanced efforts to engage community members in order to raise awareness and appreciation of work completed. It was resolved that a stronger effort to connect the host communities of power installations to power supply will be undertaken.

    It raised issues about the negative impact of sabotage of gas pipelines, leading to a severe limitation in power generation and highlighted the efforts of the Acting President in engaging communities in the Niger Delta in an effort to address their concerns and therefore, bring a lasting solution to pipeline vandalism.

    The meeting urged that  key policy steps should be taken by the Federal Government to improve the stability of the sector with the inauguration of the new commissioners of the Nigerian Electricity Regulatory Commission (NERC), and the appointment of an interim Managing Director for the Transmission Company of Nigeria (TCN) to reform the company for a more robust service to the industry.

    It noted the steps taken to address the liquidity issues (currently limiting the functioning of the sector), through the work currently underway to identify, verify and pay MDA debts to DisCos, as well as gas debts and generation debts. 

    The noted that Abuja, Ikeja, Ibadan and Yola Electricity Distribution Company have complied with data requirements, and verification of their submission is underway on a first come first serve basis.

    It added: “TCN announced that Osogbo – Ede line is fully completed, and is awaiting completion of the connected substation for energization. This substation is to be completed in 12 months. The MD, Transmission Services Provider (TSP) also noted the completion of a transformer project in New Bussa, and announced that the substation should be ready for energising in six weeks, following pre-commissioning tests. TCN also reported progress on the following projects in the host (IBEDC) region: Abeokuta-Igboora–Lanlate132KV DC Line, Odogunyan substation and transmission line, and transmission substation in Iseyin, as well as transmission projects in Ago-Iwoye, Benin-Akure, Gamo-Ogbomoso and Magboro, and the meeting charged them to expedite action towards completion and service delivery.

    “The Market Operator (MO) noted that Eko DisCo showed the highestpayment performance to service providers, followed by Yola DisCo, and encouraged other operators to fulfil their obligation to the market.”

  • Workers close TCN offices in protest of MD’s removal

    Workers close TCN offices in protest of MD’s removal

    Workers under the aegis of National Union of Electricity Employees (NUEE) at the Transmission Company of Nigeria (TCN) yesterday shut down offices at the firm’s headquarters in Abuja.
    They protested what they called the unjustified attempt to remove Chief Executive Officer/Managing Director, Abubakar Atiku as the company’s Managing Director/Chief Executive Officer (MD/CEO).
    Their action was predicated on a letter written to Atiku and dated January 31, urging him to vacate office for Usman Gur Mohammed.
    The letter, which The Nation sighted is titled: “Request for the secondment of Mr Usman Gur Mohammed from African Development Bank as the Transitional Chief Executive Officer of Transmission Company of Nigeria (TCN)”.
    The Permanent Secretary of the Ministry, Louis Edozien signed the letter with reference number FMP/OPS/50/I, that he addressed to the Minister of Works and Housing, Babatunde Fashola, referring to an earlier one with which minister requested for the service of Gur Mohammed from the African Development Bank.
    It stated that: “I refer to your letter Ref. No: F11373/S.34/C914/T/ 208 dated 19th January 2017, conveying the approval of the African Development Bank (ADB) in respect of a request authorized by the President of the Federal Republic of Nigeria for the secondment of Mr. Usman Gur Mohammed as an interim Chief Executive Officer of the Transmission Company of Nigeria (TCN) for a period of 12 months.
    “Accordingly, he is by a copy of this letter requested to resume for duty on Wednesday, February 1, 2017, which is the date his appointment will take effect.”
    Our Abuja correspondent learnt that a copy of the same letter was presented to Abubakar Atiku, who is the MD/CEO of TCN, besides verbal instructions from the Edozien, urging him to respect the contents of the letter.
    Wisdom Nwachukwu, who is FCT chairman of NUEE, however, said that owing to the technical nature of the power sector, it is out of place for an accountant to take over the duty of TCN Managing Director from a trained engineer like Atiku. He said that it will be tantamount to economic sabotage.
    The labour leader insisted that the plot to remove Atiku was not in good fate but to merely bring in Fashola’s stooge to manage the $364million loan that the TCN is anticipating from the World Bank.
    He added that “We are not against the government taking decisions but the impunity with which this is being done, as the staff of TCN by the constitution are supposed to be 75 percent technical and only 25 percent non-technical.”
    He also stressed that, constitutionally, the MD/CEO of TCN should have been informed or given a notice of at least three months ahead, noting further that “people are trying to subvert the constitution of the Federal Republic of Nigeria.”

  • NNPC denies petrol price hike

    NNPC denies petrol price hike

    The Nigerian National Petroleum Corporation wishes to enjoin motorists in Abuja and its environs, and indeed the federation, not to engage in any panic buying of petroleum products.

    NNPC assures motorists that the Corporation has 1.3billion litres stock of PMS, otherwise called petrol, which is sufficient to serve the nation for more than 38 days.
    This was disclosed in statement of the Group Genetal Manager, Group Public Affairs Division, Nr. Ndu Ughamadu yesterday.
    This plea comes on the heels of reports that some motorists have begun panic buying of petrol, following rumours that the government is about to increase the pump price of the white product from N145 per litre.
    NNPC wishes to assure Nigerians that there is no iota of truth in the rumour that government is scheduled to adjust pump price of petrol.

    Indeed, with the resumption of production by the Corporation’s three refineries in Kaduna, Port Harcourt and Warri, complemented by imports, there is enough stock of PMS, Automotive Gas Oil (AGO), diesel and kerosene.

    This much was explained yesterday by NNPC Chief Operating Officer of the Refineries, Mr Anibor Kragha while briefing the Senate Committee on Petroleum Downstream in a presentation on the current status of the refineries at the National Assembly Complex in Abuja.

    In the presentation, Kragha told the legislators that the nation’s three refineries produced additional volumes of 4.6 million litres of kerosene and 7.7 million litres of diesel, in addition to millions of litres of petrol being refined daily at the nation’s refineries.

    The assurances of availability of stock by the NNPC Chief Operation Officer of the Refineries yesterday still stand.

  • Water management constraint hits power sector

    Water management constraint hits power sector

    • TCN sends 3,269MW to DisCos

    The Nigerian Electricity Supply Industry (NESI) that did not experience any challenge from water to fuel the hydroelectric stations for the past four months lost 90 Mega Watts (MW) due to water management constraint on Saturday.

    According to a document on power sector activities that The Nation sighted on Tuesday, the NESI on Saturday experienced losses owing to water management in that was restored on Sunday.

    A reliable industry source however told our Abuja correspondent that there was a “mechanical problem in Jebba” Hydro Station that was down on November 12.

    The sector lost 3,514MW owing to vandalism of a gas pipeline.

    The document added that the sector lost 279MW to line constraint, although there was no loss due to high frequency constraint.

    The water, gas and line constraints culminated in a loss of about N1.86billion on the day under review that the Transmission Company of Nigeria (TCN) sent 3,269MW to the 11 distribution companies (DisCos).

    NESI said: “On November 12 2016, average power sent out was 3269MWh/hour (up by 347MWh/h). The reported gas constraint was 3514MW. The reported line constraint was 279MW and the high frequency constraint is 0MW according to TCN.

    The water management constraint was  90MW. The power sector lost an estimated N1,863,000, 000 on November 12 2016 due to constraints.”

    The Nation also learnt that there was a system disturbance at 14:27hours on the day under review due to series of line trappings.

    It added that Odukpani power plant was being prepared to evacuate four turbines.

    The document said: “System disturbance at 14:27hrs on November 11 due to a series of line trippings. Further vandalism on the ELPS line has increased gas constraints and  impacted generation negatively. Ikot Ekpene switching station undergoing pre-commissioning tests.  Odukpani power plant is currently been prepared to evacuate 4 turbines.”

    Investigation however shows that the sector recovered from the technical issue in Jebba to record 0MW water management constraint on Sunday.

    According to NESI report, the TCN wheeled 3,476MW to the 11 DisCos on Sunday when power generation rose by 206MW.

    The constraints led to a lost of about N1.88 billion  in the electricity market on the day under review.

    On the day under review,  sector lost 3,591MW to gas constrain and 328MW to high frequency. NESI said on “November 13 2016, average power sent out was 3,476MW by 206MW. The reported gas constraint was 3,591MW. The reported line constraint was 0MW and the high frequency constraint was 328MW. The water management constraint was 0MW. The power sector lost an estimated N1,881,000,000 on November 13 due to constraints.”

  • Demand for gas increases as petrol records marginal hike

    Demand for gas increases as petrol records marginal hike

    Demand for domestic gas is now on the rise following the marginal increase in the pump price of the Premium Motor Spirit (PMS) and scarcity of kerosene.

    The Nation learnt from the National Vice President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Dankigari in a telephone interview that that “now most energy consumers have converted their utilities to gas. They are using gas now instead of kerosene. Because of the price of kerosene many people have started using gas.”

    Although he said that he could not quantify the percentage increase in the demand for gas, he added that “all I know is that they (consumers) are diverting their interest to gas.”

    The National Vice President, who revealed that the association is partnering with a foreign firm to make cylinders available to everybody, added that IPMAN wants all its member filling stations to commence sale of gas.

    He said: “That is why we are now trying to see how we can partner with some foreign companies to ensure that each person has a gas cylinder. We want all our member filling stations to start selling gas.”

    He urged the Nigerian National Petroleum Corporation (NNPC) to sell PMS to independent marketers the same price it sells to its affiliate stations.
    According to him, at the rate of N145 per litre the independent marketers and NNPC affiliate stations are now selling at the same price.

    He noted that at the price independent marketers can now compete with the NNPC.

  • AEDC sacks 27 workers over corruption 

    AEDC sacks 27 workers over corruption 

    The management of Abuja Electricity Distribution Company (AEDC) has disengaged 27employees cutting across various cadres due to alleged corrupt practices and indiscipline. 

    The company’s Director, Corporate Services, Engr. Abimbola Odubiyi, informed the workers via an internal memo saying that 17 of the affected staff had their appointment terminated while nine others were dismissed outright due to various forms of corrupt practices such as fraud, theft and double employment. 

    According to a reliable source, the memo stated that the power firm disengaged one of the affected employees.

    The memo dated 16th of September, 2016 further revealed that AEDC disengaged some of the affected persons on account of disciplinary matters such as persistent absence from duty without permission.

    In the internal memo, the director reminded all employees of the current management’s zero tolerance for all forms of corruption and indiscipline, drawing the attention of staff to Chapter 3 of the Company’s Rules and Regulations which he said is very clear as to what constitutes an infringement on the Policy.

    Engr. Odubiyi said in the memo that “the provisions (in Chapter 3 of the Rules and Regulations) are meant to serve as a guide to employees to be aware of the implications of negative behaviours”.

    It also reminded employees that the current AEDC management, at its discretion, could refer any case involving fraud to law enforcement agencies which have the mandate to handle issues of corruption, especially the Independent Corrupt Practices and related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC) and the police. 

    Sources in AEDC revealed that all the 27 employees affected were disengaged this year and that several other staff have been reprimanded for various offences.

  • Gas constraint causes shortage of 3,269MW

    Gas constraint causes shortage of 3,269MW

    The Nigerian Electricity Supply Industry (NESI) has said that generation companies (GENCOs) could not produce 3,269MW as a result of the shortage of gas  for fueling the power plants.
    In its October 8 performance report that it posted on its website on Monday, it noted that the power sector lost 371.7MW due to line constraint and also lost 479.4MW owing to a high-frequency constraint.
    According to NESI, there was no challenge due to water management, but on the day under review, the total constraints led to a loss of about N1.978billion.
    Following the losses, the Nigeria Electricity System Operator (SO) that would have sent out about 7,247MW were there on constraints, only sent out 3,335MW to the 11 distribution companies (DisCos).
    The report said:  “On October 8 2016, average power sent out was 3335MWh/hour (down by 164 MWh/h). The reported gas constraint was 3269MW. The reported line constraint was 371.7MW and the reported high-frequency constraint is 479.4MW according to TCN. The water management constraint was 0MW. The power sector lost an estimated N1,978, 000, 000 on October 8, 2016, due to constraints.”
    Meanwhile, the Nigeria Electricity System Operator (SO) of the Transmission Company of Nigeria (TCN) said that at 06:00 hours of October 10, it hit an energy generation of 3,805.10MW.
    The power sector had last Thursday said that the three hydroelectric stations which include Kanji, Jebba and Shiroro produced 283MW, 415MW,380MW respectively, totally 1,119MW.
    It added that Egbin generated 380MW, Sapele I 59MW, Delta 324MW, Geregu 134MW, Omotosho 168MW, Olorunsogo 153MW Geregu  NIPP 123MW,Sapele NIPP 104MW, Olorunsogo NIPP 77MW, Omotosho 193MW, Odukpani NIPP 51MW, Okpai 339MW, Ibom 63MW, Omoku 33, Transamadi 14MW, Transamadi 113, Paras Energy 48MW, and Gbarain 95MW.
    The Nation observed from the operational performance of the SO that contained this data that seven power plants did not produce power on the day under review.