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Tag: power sector

  • Nigeria, others need $25b investment in power sector

    Nigeria, others need $25b investment in power sector

    Minister of Power, Prof. Chinedu Nebo, has said Nigeria’s and other West Africa’s power sector needed $25 billion (N3.88trillion) investment over the next one decade to have a reliable and consistent power supply in the industry.

    In his presentation titled Updates on the Nigerian power privitisation at the ongoing West African Power Industry Convention (WAPIC), in Lagos, he said there was the need to invest and develop regional grid through effective power generation across the West African sub-region region.

    The minister said Nigeria, which is regarded as Africa’s foremost business destination is  second to South Africa.

    He said Nigeria, the 26 largest economies in the world and the seventh largest population was one of the fastest growing economies in the world.

    According to him, Nigeria’s economic performance is one of the most robust in Africa and an adequate power supply is a pre-requisite for a stable economy.

    Nebo said the overall Gross Domestic Products (GDP) growth for last year was 6.81 per cent was above the projected global growth average of 3.5 per cent.

    “Today, Nigeria is an attractive destination for Foreign Direct Investment (FDI). In the last three years, Nigeria has attracted over 10 per cent of the total FDI to Africa totaling over $20 billion.

    “This performance is driven by favourable political, economic and demographic realities,’’ he added.

    He said renewable energy remained the most neglected in the West African sub-region, adding that it stood as a veritable tool that could energise Africa.

    He added that renewable energy could also be used to solve the energy problem in a very inclusive way.

    He said: “The Ministry of Power is synergising with the Minister of Petroleum and Central Bank Governor to address gas challenges and also to inject more liquidity into the system

    “Handing over successor’s power companies in Nigeria to investors remains one of the laudable achievements of the present administration, because before the privitisation the sector had been in comatose.’’

  • TEM: Delay in implementation stalls power sector agreements

    TEM: Delay in implementation stalls power sector agreements

    INVESTORS in the companies unbundled from the Power Holding Company of Nigeria (PHCN) are shunning some essential agreements that could lead to improved power supply owing to delay in the implementation of the Transitional Electricity Market (TEM).

    The agreements – Gas Supply and Purchase (GPSAs), Power Supply and Purchase and others cannot be signed because of delay in the implementation of TEM.

    The implementation of TEM, according to the Nigerian Electricity Regulatory Commission (NERC) will set in motion, the execution of  rules that would guide the Nigerian Electricity Supply Industry (NESI) as well as the enforcement of compliance and sanction of defaulting market participants in the electricity supply value chain.

    NERC explained that TEM would also ensure that the electricity market is operated in an orderly manner with all the participants (gas suppliers, power generation firms, distribution firms that buy the power, and the transmission firms that wheel the power to different parts of the country), expected to show commitment to sanctity of contract or be penalised.

    What guides the market is the interim market rules provided by the power sector regulator – the Nigerian Electricity Regulatory Commission (NERC). The interim rules will continue to guide the operation of all the market participants until the TEM is fully in place. The interim rules were issued before the takeover of the successor companies in November last year by new investors and modified in April this year to address the challenges observed in the sector between the time of handover and end of first quarter of this year.

    Speaking on the importance of implementation of the TEM as an instrument that will drive the electricity market, the Group Chief Executive Officer, Forte Oil Plc, owner of the privatised Geregu Power Plant, Mr. Akin Akinfemiwa, told The Nation that the company has not signed Gas Supply and Gas Purchase Agreements GPSAs  because it needed guarantee of an uninterrupted gas supply and the purchase of the power it will generate.

    Forte Oil has invested $90 million in the Geregu Power Plant to overhaul it and bring its output to the installed 414 megawatts (Mw) capacity from about 100Mw it  generates.

    Akinfemiwa said the necessary agreements will be signed when the company is sure that the power plant will get adequate gas supply and the power it generates also bought by distribution companies.

    He said: “Gas supply to the power plant is subject to the TEM.  We have not been able to sign the appropriate GPSAs for us to guarantee maximum supply to the plant. “Obviously, when we sell, we will not be able to sell everything we generate because of the existing market dynamics. So, once the TEM is introduced, we can now call for enough gas for us to be able to generate in line with the TEM.

    “The renovation work on the plant is expected to be completed in the next 18 months (first quarter of 2016) and will bring the plant’s generation to 414Mw at full capacity.”

    An official of Transcorp Ughelli Power Limited, one of the privatised assets, told The Nation in confidence that the company is eager to see the commencement of the TEM because besides creating standard rules of operation, it will  increase the potential revenue for the company and its shareholders.

    Currently, the interim market rules (IMR) that guide the electricity market pending when the TEMwill be fully in force, according to NERC, “seeks to enforce, maintain and ensure adherence by licensees  and other participants in the electricity market to the provision of the Act and other instruments for the purpose of achieving; the creation, promotion and preservation of an efficient electricity industry and market and the fostering of a culture of regulatory compliance; the facilitation of the swift investigation and resolution of incidences of regulatory non-compliance and the  fair and transparent determination of rights and obligations.”

    The IMR, which was signed by NERC Chairman and Chief Executive, Dr. Sam Amadi provides for regulation, which shall apply to energy produced and delivered as well as associated services during the interim period.

    “The rules are in exercise of the powers conferred on the Commission by section 96 of the Electric Power Sector Reform Act (2005). “The interim rules are intended to cover all electricity taken from the transmission system by the distribution companies with adjustment made to account for any bilateral arrangements between generation companies (Gencos) and distribution companies (Discos).

    “The existing arrangements shall be maintained save to the extent that they are modified by the order of the Commission. The objectives of the rules are to establish a framework to govern trading arrangements during the Interim period when Power Purchase Agreements (PPAs) between the privatised Power Holding Company of Nigeria (PHCN) successor generation companies and Nigerian Bulk Electricity Trading Plc (NBET) and Vesting Contracts between NBET and the privatised PHCN successor distribution companies will not be effective.”

    TEM is expected to commence in November, this year after earlier dates of commencements in March and September this year failed.

  • World Bank injects $200m into power sector

    World Bank injects $200m into power sector

    The World Bank has injected about $200 million into Nigeria’s power sector.

    Speaking yesterday at the ongoing National Council on Power (NACOP) in Abuja, the Resident Country  Representative of the United Nation’s Industrial Development Organisation (UNIDO), Mr. Patrick Kormawa, said  the core interest area of his organisation is sustainable power sector in Nigeria as typified by the on-going sector reform.

    He praised the government for approving the forum as it has brought all stakeholders. He insisted that development of partnerships is in consonance with UNIDO’s interest in the devolvement of sustainable power sector in the country.

    He said it is a very important variable in the overall efforts at economic prosperity and job creation efforts of the government.

    Kormawa said the conference could not have come at a better time than now as it will provide the platform that helps in strengthening partnership among all the key stakeholders on the important subject matter – Power, as the federal, state and local governments come on the same page.

    He said the platform would also help to bring development partners on a round table with other stakeholders. This he hopes,  will galvanise activities in such a manner that investors would have more confidence in the sector.

    He said: “Private sector is investing huge sums of money in power to resuscitate a once dormant sector of the economy; it would require the collaboration of all to ensure success of the whole exercise.

    “When you have partnership built around a strong support base of stakeholders it will facilitate power access.”

    The UNIDO chief noted that with the nation’s abundant resources both in renewable and other energy sources could easily be developed for generation of power.

    UNIDO he said is interested in the sector because without power, industrialisation is a mirage.

    Also speaking on the sideline of the event,   Chairperson, Emergency Committee on the Northeast, Professor Soji Adelaja, said there is need to ensure that the root causes of non-access to power by the large number of people in the region is partly responsible for the insurgency and insecurity prevalent in the area.

    He said the task of his body is to galvanise economic recovery using energy availability to drive employment creation and economic prosperity, as fundamental deliberative to calm nerves down and reduce unrest.

    He said: “In the age and time of new knowledge economy, we cannot afford 50 per cent of the people and their land mass to live their lives without access to energy.”

    As a visionary leader, Mr. President is poise to radically address access to power through the Roadmap, privatization, just as he observed that a solid foundation has been laid to ensure Government plays less role in the sector.

  • ‘Privatised power sector will reposition gas’

    The private sector-driven power firms will help in taking gas higher height, the President, Nigeria Gas Association (NGA), Saidu Mohammed, has said.

    Mohammed while speaking at a stakeholders’ meeting in Lagos, said the companies would propel the utilisation of the abundant natural gas and further ensure its place as the core factor in resolving the perennial power problems.

    He was of the view that gas has received increased interest in the last past years as a result of the development of the power sector.

    He said: “With at least 70 per cent of Nigeria’s power generation facilities being gas-fired, the demand for gas for this new market is set to put gas in the rightful place as the core driver in the efforts to bridge the power supply deficit in Nigeria.

    “The obvious problems facing the gas industry is how to ensure greater penetration of the product into  various parts of the country and to sustain gas usage in such a way that it would displace other fuels in the energy mix.”

    He said the challenge in the coming years would centre around how to find, develop, process, transport and distribute sufficient gas to the power sector and other sectors that use the product for their production.

  • Power sector gets 70% of domestic gas supply

    Power sector gets 70% of domestic gas supply

    TO improve electricity supply in the country, 70 per cent of total domestic gas supply put at 1.5 billion standard cubic feet per day (scf/d) is dedicated to the power sector, it was learnt.

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, who made this known, told The Nation that to further harness the gas resource for monetisation and development, the corporation has established a directorate to accomplish that objective.

    He said: “The gas sector has witnessed commendable improvements in line with Federal Government’s initiative to further monetise the gas resources of the nation. This led to establishment of the Gas and Power Directorate of the corporation, which is anchoring the gas revolution agenda launched by Mr. President aimed at enhancing gas utilisation in the country.

    “We are focused on the development of and installation of new infrastructure for gas processing, transmission and distribution nationwide.

    “Also as a result of the interventions, gas supply to the Nigerian market has grown from 300 million cubic feet per day a few years ago, to an all time high of 1.5 billion cubic feet per day, of which about 70 per cent is dedicated to support the power sector.”

    He also said gas flaring in the oil and gas industry has significantly reduced from 28 per cent two years ago to 10 per cent today, adding that in the past few years, the corporation has embarked on the most aggressive expansion of the nation’s gas pipeline infrastructure for effective transmission and distribution of natural gas.

    He said: “We are in the process of completing construction of pipeline connections to all gas fired power plants. Also the construction of a second 450 kilometre Escravos-Lagos pipeline system is almost completed. The Escravos-Oben and Emuren-Itoki segments have been completed and put into use, leaving the Oben-Emuren segment, which will be completed before end of the year. The construction of 120 kilometre East-West pipeline system has also commenced.”

    The NNPC lamented the unwarranted vandalism of the corporation’s pipelines especially the major trunk lines through which crude oil is conveyed to the terminals for export. The development led to the intervention of the Federal Government with the setting up of a committee. The actions of the committee led to improvement in oil production.

    “It is pertinent to note that Nigeria’s production and export is dependent on four main crude export pipelines – the Trans Forcados pipeline to the west, the Ogbanbiri/Temidaba/Brass pipelines in the centre, the Trans Niger pipeline and Nembe creek trunk line to the east respectively. When these pipelines are compromised and vandalised, over 500,000 barrels of oil per day are potentially at risk.

    “Consequently, the Federal Government had to intervene with the setting up of a committee consisting members of the National Economic Committee. With the help of the committee, production increased slightly last year and is currently ramping up. We hope to see further improvement by year end,” he added.

  • Reforming power sector, creating jobs

    Reforming power sector, creating jobs

    For some who were hitherto unemployed, the power sector reform is a blessing. They have been employed by the distribution and generation companies in a bid to ensure regular power supply. EMEKA UGWUANYI reports.

    All is set for the hiring of fresh hands by the distribution and generation companies–six months after they acquired the assets of the Power Holding Company of Nigeria (PHCN). The successor firms conducted a staff audit between  January and March to determine those to retain among workers inherited from PHCN.

    At the end of the six months agreement with labour to retain the PHCN workers, the distribution companies (Discos) and their generation counterparts (Gencos) sacked those whose services were no longer required.

    The disengagement created a huge employment gap. In Ikeja and Eko Electricity Distribution Companies, over 5,000 workers were laid off. The Nation learnt that the companies will employ no fewer than 1,000 workers each. About 90 per cent of them will be engineers and technicians.

    The Nation also learnt that the companies concluded employment of the first batch last month as part of measures to keep their operations running. The employment of the second batch, it was learnt, will begin next month.

    Those hired are degree and diploma holders. They will be in charge of fault clearing, repair of transformers and installation and commissioning of power equipment.

    An official of one of the Discos told The Nation in confidence: “We conducted staff audit in preparation for the six months agreement that we had with labour to retain former employees of PHCN, which expired by the  end of April. Some of us engaged reputable auditing firms such as KPMC and PricewaterhouseCooper (PwC) to carry out the exercise. The essence is to ensure transparent and professional job. The truth is that the era of family connection as a criterion to secure job in the power company is over.

    “In fact, the audit was purely scientific and professional. We have decided to sieve the workforce, keep those that have the required skill, those who have the motivation to move the company to the next level, and have the operational excellence to give power to the man on the street, and disengage those without the required skills.”

    The  Chief Executive Officers of Ikeja and Eko Electricity Distribution Companies, Abiodun Ajifowobaje, an engineer, and Dr. Oladele Amoda, told the Senate and House of Representatives Committees on Privatisation and Commercialisation during their oversight visits that the firms had aged workforce, which must be replaced.

    The other distribution companies in Ibadan, Enugu, Abuja, Port Harcourt and Benin, have also employed young engineers and technicians.

    President and Chief Executive Officer of General Electric (GE) Lazarus Angbazo said the company is constructing a manufacturing plant in Calabar, the Cross River State capital. The first phase of the multi-billion naira project, which will manufacture power equipment, generator turbines for power plants, coaches for trains, engines for aircraft and hospital equipment, among others, is ongoing.

    He said GE’s engineering manufacturing plant would employ over 300 Nigerian professional engineers and technicians and ensure the training of young Nigerians through the company’s technology transfer programme.

    The investment, he said, was evidence that the present administration is making progress, adding that Nigeria would soon become the hub for GE’s operations in Africa.

    The Managing Director, Korea Electric Power Nigeria Limited, Yeom Gyoo Chull, technical partner to Sahara Energy Group, the core investor in Egbin Generation Plc, and Ikeja Electricity Distribution Company (IKEDC), told reporters during a facility tour that the management has been discussing on transformation of the plant and the workers. The strategy that is to restore Egbin to its fully built capacity of 1320Mw this year and build more turbines to provide additional 1,350Mw.

    The additional capacity, Chull said, would begin in the next three years, adding that on completion it, will bring the combined output to 2,670Mw. He said the target is to achieve a total capacity of over 10,000Mw in 10 years if demand allows.

    He said: “I represent the Korea Electric Power Corporation (KEPCO) and we are proud to be involved in the power reforms through a Joint Venture between Korean Electric Power Corporation and Energy Resource Limited – managers of the Egbin Power station and New Electricity Distribution Company (NEDC) – managers of the Ikeja Electricity Distribution Company (IKEDC) both members of the Sahara Group.

    “We intend to collaborate with our partners in Nigeria to initially restore Egbin to its fully built capacity of 1320Mw within the year and provide additional projected capacity of 1,350Mw commencing within the next three years, thus at completion we’ll have 2,670MW, with the aim of achieving a total capacity of over 10000Mw in the next decade if the demand permits.”

  • Delegates seek state of emergency in power sector

    Delegates seek state of emergency in power sector

    Delegates to the National Conference yesterday urged the Federal Government to declare a state of emergency in the Power sector.

    But they baulked at the idea that generators be outlawed.

    The delegates agreed that the Power sector requires an urgent government’s attention, to enhance the nation’s technological and economic growth.

    They were unanimous that power and energy are strategic, adding that the Federal Government should not leave it in the hands of the private sector alone but participate actively.

    State and local governments were also recommended to be constitutionally empowered to participate in the Power sector.

    But the delegates rejected the review of the privatisation contracts between the Federal Government and the generating companies (gencos) and the distribution companies (discos).

    The conference’s decision followed the adoption of the amendments to the recommendations of the Committee on Energy yesterday. The privatisation contracts were said to be on the brink of collapse.

    The committee recommended that there is need for a reappraisal of the contract, as originally formulated.

    But the delegates rejected the recommendation.

    They also rejected the recommendation that a committee should review the National Electric Power Policy to make it possible for the nation to join the top 20 global economies.

    The delegates adopted the need for the Petroleum Act of 1969 to be reviewed in the interest of justice and equity.

    They also adopted the recommendation calling for an immediate solution to the large cash deficit threatening the Power sector.

    The government was urged to implement the National Gas Master Plan. It was also advised to improve gas supply and transmission to ramp up power delivered to the system to solve the cash shortfall in the sector.

    The government was also encouraged to ban the flaring of associated gas as well as sanction oil companies without facilities to stop flaring to serve as a deterrent.

     

    It was also recommend that the ministerial power to grant exemption for gas flaring be removed.

    Besides, it was recommended that new associated gases be reserved for the local market and consumption with necessary legal frame work to drive it.

    The government was encouraged to harness tidal and energy sources, besides exploring the nuclear energy alternative for the development of the sector.

    But the industrialisation of the Niger Delta, on the basis of the availability of raw materials, created tension as the delegates argued along regional lines.

    The additional recommendation reads: “That a Niger Delta energy corridor be established to facilitate rapid industrialisation of Nigeria.”

    Some delegates noted that such would allow only the Niger Delta region to be industrialised at the expense of the other parts of the country.

     

    But others argued that industrialising the region, as long as it is for the benefit of the entire country, would amount to industrialising the country as well.

    The motion was unanimously accepted after some Northern delegates argued that siting such industries in the Niger Delta would benefit the country the more.

     

  • BPE:banks not threatened by N1tr loans to power sector

    The Bureau of Public Enterprises (BPE) has dismissed fears of collapse of commercial banks over loans to the power sector.

    It said the sector was not facing a  cash crunch, noting that the firms  did not use their assets as collaterals.

    At a meeting with owners of the privatised power assets and the Africa Energy Team of the World Bank, in Abuja, the Director-General of BPE, Mr. Benjamin Dikki, described the fears as unfounded.

    In a statement, BPE’s Head, Public Communications, Chigbo Anichebe, said the fears of  takeover of the successor companies (SCs) because of the purported non-servicing of loans, or about the prospect of stress to the banks due to their exposure to SCs, are misplaced since the SCs did not borrow directly from the banks.  No assets of the SCs were pledged as collateral, he added.

    Dikki said: “It should be noted that it was the acquiring companies or special purpose vehicles (SPVs) that borrowed based on their cash flows and accounts. The agreements signed also requires that the consent of the BPE is obtained before the core investors can borrow.

    “The banks lent to the core investors based on their capability to pay. The investors are supposed to have made adequate provisions to take care of their obligations to their financiers from the outset.  They knew that they were not going to make profit immediately on takeover of the SCs. Their financiers also were aware of this.”

    The Head of Africa Energy Team of the World Bank, Mr. Pedro Antmann, reminded the investors that their primary focus should be to provide adequate and efficient power supply to consumers.

    He said there were challenges at the initial stages of privatisation, noting that with determination and the right strategy, they would be surmounted. He urged them not to aim at making profit now but to develop infrastructure and to meet the cost of supply.

    Antmann advised the Nigerian Electricity Regulatory Commission (NERC) to make a provision in its rules to adjust tariffs in times of low generation.

    He urged the investors not to focus on short-term gains, but invest in infrastructure that will guarantee sustained future profits.

  • Cash shortfall threatens power sector

    Cash shortfall threatens power sector

    The power sector is experiencing cash shortfall as collections from customers are much lower than expected by the new owners of the privatised assets, it was learnt.

    An industry source told The Nation in confidence that there is  cash shortfall in the sector, adding that this is due to some factors, among which is wrong assumptions in the privatisation.

    According to the source, the sector’s privatisation was based on wrong assumptions and as a result of that, the cash collected from end users is much lower than expected and it is so inadequate that it cannot cover all costs. Besides, the regulatory solutions proposed are far from solving the problems.

    The source noted that generation companies (GENCOS) and distribution companies (DISCOS) are facing deviations between their projected business plans and the actual situation, bigger than what could be handled within the limits of the official assumptions given for the privatisation

    According to the source, the financial sector is exposed to the power sector, and the uncertainty arising from the situation  is increasing their risk perception, thus foreclosing additional financing windows to cover the financial  gaps, a situation that is feared, could cripple the operators if no changes are made to address the challenges.

    For instance, the source explained that the DISCOS purchase electricity from GENCOS through the Nigerian Bulk Electricity Trading Plc (NBET), and sell to customers at the MYTO II tariffs, which is periodically adjusted.

    They collect payments from end customers and pay the bill to the GENCOS, the source said, noting that, unfortunately, not all electricity purchased from GENCOS is sold and not all the money collected due to the aggregate technical, commercial and collection (ATC&C) losses.

    The source noted that the ATC&C losses  at takeover, are equal to the ones officially announced by the Bureau of Public Enterprises (BPE), but they have discovered that the losses found have been remarkably higher than the assumptions and also that the available electricity has been much less than what the BPE said.

    On the takeover of the assets, the new investors in DISCOS were assured that electricity tariff would be adjusted regularly to ensure that DISCOS meet their business plans, but six months down the line, there is no sign that tariffs will be adjusted to compensate the collection gap arising from the challenges previously mentioned, the source added.

    As a result of these challenges, the DISCOS revenues are lower than expected, which make them (investors in DISCOS) to be unable to pay in full their bills to Market Operator and the Market Operator consequently cannot pay in full the bills to the Gencos.

    In view of the development, GENCOS receive less revenues, which compel the owners to make capital injections higher than expected to cover capital expenditure and operational costs and also meet their ATC&C loss reduction plans.

    The source also noted that as a consequence of this development, the Nigerian Electricity Regulatory Commission (NERC) has issued the Interim Market Rules (IMR) to mitigate the gap.

    The IMR outlined that the  successor companies’ Power Purchase Agreements (PPAs) are not active, therefore, the GENCOS will be paid tariffs as stipulated by MYTO II and as considered by the IMR despite the fact that the privatisation was carried out assuming that the GENCOS would be paid based on the PPAs.

    With this, the DISCOS are allowed to pay less than the total bill to the GENCOS, though the balance is accrued as a debt to be paid in the future.

    The source explained that there is no timeline  for the IMR duration and besides, it is only a simple statement without any enforceable value, adding that though the IMR establishes that GENCOS and DISCOS will get the balance of the payments not paid, there is no precision on how or on when that would happen. It is unthinkable that such vagueness in those aspects was adopted in the IMR, the source added.

    “There is not any kind of bankable guarantee that investors could use to get the additional financing from financial institutions to cover the gap that this situation is producing. This may produce serious delays in the ATC&C loss reduction plans by DICOS and capacity recovery plans by GENCOS.

    “There are reasons to say that there is a breach of the commercial rules under which the privatisation was carried out and bidders made their commercial offers,” the source said.

  • Update on power sector reforms

    During the period March 2013 to March 2014, Nigeria’s Power sector recorded vibrancy in policy implementation. The high point were the practical steps to translate reform policies into reality.

    At the start, the power reform process was practically on pause, with the sector lacking substantive leadership for about five months. The entrance of Professor Chinedu Nebo as minister raised hopes and birthed the promise of a new beginning for one of the most vital sectors of the national economy. It was time to get down to business to tackle issues that needed to be dealt with, in order to fast-track power delivery, in line with the Electricity Power Sector Regulatory Act EPSRA 2005 and President Jonathan’s Power Sector Roadmap of 2010.

    In order to provide the formidable and focused leadership badly needed at the time, the minister held meetings and consultations with stakeholders. This established unprecedented synergy among the stakeholders and their different but related roles, resulting in a unified power sector with the same agenda, same focus and same commitment to deliver more power.

    Seeing that the inability of the nation’s transmission capability at the time was grossly inadequate to wheel out even the available transmitted wattage, the minister, early in the day, took the bold, quick step of empowering the contracted managers of the TCN to resume work by presenting the required Schedule of Delegated Authority SODA to them. This was followed swiftly by the inauguration of the Supervisory Board for the company.

    In view of the critical role of transmission in the power supply chain, the need to rehabilitate, upgrade and expand transmission infrastructure across the country became urgent. Massive fund-raising efforts by the minister followed, yielding substantial results. This was the first time ever, that external funding was sourced for the cash-strapped TCN, for its decayed infrastructure. These included funding from the African Development Bank and the Eurobond among others.

    Mid-January 2014, the Federal Executive Council approved N1.9billion for the supply of 746 kilometers of aluminum conductor composite core reinforced (ACCR) for the re-conduction of the Onitsha-New Haven 330kv transmission line that runs up to Makurdi in Benue State. The Federal Executive Council also secured a loan of 170 million dollars from the French Development Agency to boost power transmission in the Federal Capital Territory.

    Shortly after assumption of office, Professor Nebo took a tour of some generation, transmission and distribution facilities across the country, commissioning and activating some, including some high technology-based initiatives towards eliminating stressful processes and fraudulent practices in metering and billing.

    The ministerial tour revealed various degrees of dilapidation and state of financial crisis that was worsened by the total lack of budgetary provision for generation and distribution companies in the 2013 budget.

    To prevent a total collapse of the system due to non-budgetary provisions for the PHCN in 2003, and especially in view of imminent handover to private investors, the minister sought for, and the President graciously granted intervention funding in two releases, to the tune of about 13.8billion naira, as a lifeline, for the maintenance of the generation and distribution companies.

    Virtually every aspect of the electricity value chain, as well as segments and agencies made good progress and recorded remarkable achievements in the period in review.

    In collaboration with other agencies, the Presidential Action Committee on Power PACP planned and executed short-term projects towards service delivery targets.

    The operations of the Presidential Task Force on Power were as vibrant as ever, monitoring, facilitating and fast-tracking the process of transformation.

    The Nigerian Electricity Regulatory Commission was strengthened to perform its regulatory functions more effectively, certifying, monitoring and ensuring compliance with the rules of engagement, as more and more investors entered the emerging electricity market.

    The Rural Electrification Agency, resuscitated from a comatose state, was energized with funding as well as the appointment and inauguration of a Supervisory Board.

    The envisaged local content for the nation’s manpower began to materialize, as the National Power Training Institute of Nigeria, (NAPTIN) continued to execute government’s deliberate strategy to provide the technical manpower required to replace aging personnel and indigenous experts for the expanding industry. The institute gives specialized, needs-specific training to young Nigerians, and graduated its first 243 engineers in November.

    As envisaged in the Electricity Power Sector Regulatory Act, the role of the Nigerian Bulk Electricity Trader (NBET) in boosting investor-confidence was consolidated, to enable it engage in the purchase and re-sale of power and ancillary services from independent power producers, and from PHCN successor generation companies.

    The transfer of debts of the PHCN in the wake of privatization, to the Nigeria Electricity Liability Management Company facilitated the taking-off of successor companies, free of heavy debts and liabilities.

    The Electricity Management Services Limited EMS was established in September 2013 to re-position the power sector for the delivery of, not only increased quantity, but also quality of electricity. The EMS has already begun to carry out its mandate of ensuring standards of materials, thereby enhancing safety.

    The quantum of electricity infrastructure delivered through the Niger Delta Power Holding Company (NDPHC) in the period was a big plus to the reform process. Of the 10 NIPP plants completed or nearing completion, two were commissioned and others are due for commissioning soon. The process of selling these plants to capable investors is at an advanced stage, with over 200 investors bidding. The NDPHC has also completed several transmission and distribution projects.

    In line with global trends, and in pursuance of the 2003 approval of renewable energy as part of the National Energy Policy, Nigeria is promoting energy security by diversifying energy sources. In addition to existing hydro plants, the 700 MW Zungeru Hydro Power Project (which was on the drawing board for 30 years) was flagged off by President Jonathan on May 28, 2013 with a promise to kick-start work on the 3,050 MW Mambilla project, as well as Gurara 2, among other smaller hydro projects. Work on coal-fired plants in Kogi, Benue, Enugu and Gombe states has advanced considerably, targeting 30% of the nation’s power needs

    Work on the Wind Power Farm in Katsina for the development of wind-generated energy has progressed, and it is to be commissioned soon.

    Perhaps the most interesting development in the renewable energy efforts is the Light Up Rural Nigeria Solar Project, commissioned by the President in rural FCT, and to be extended to other off-grid villages.

    Over and above all the achievements recorded in the power sector in the last 12 months, the successful privatization of power assets, spearheaded by the Ministry of Power stands out. The Bureau for Public Enterprises BPE, working with the National Council on Privatisation NCP headed by Vice President Arch. Namadi Sambo, planned and executed a massive privatization of the nation’s power utilities, now acclaimed to be highly transparent, and the biggest in the world.

    Infrastructure vandalism is receiving Presidential intervention. So is the urgent need for steady improvement in gas supply.

    During the period, mature leadership and government’s respect for the dignity of workers led to systematic settlement of workers’ entitlement up 98%.

    It is a thing of pride to the Jonathan administration, that between March 2013 and March 2014, these milestones were covered in the Power Sector Reform Roadmap, in accordance with the EPSRA of 2005.

    • Daniel is the Special Assistant (Media) to the Hon. Minister of Power