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Tag: POWER

  • APGA can’t retain power in Anambra, says Madukaife

    APGA can’t retain power in Anambra, says Madukaife

    Okelo Madukaife is the Publicity Secretary of the All Progressives Congress (APC) in Anambra State. In this interview with NWANOSIKE ONU, he speaks on the preparations for the November 18 governorship election.

    How prepared is the APC for the governorship election?

    When you say other parties are moving, and All Progressive Congress (APC) not moving it is laughable. When you talk of politics of Anambra, there are only two parties, one is All Progressive Grand Alliance (APGA) and the other to replace them, that is APC. When you talk of other parties, my mind goes to APGA. The movement you see in APGA is the movement of panic. They have lost all grounds in the field and every movement now to recover will be natural. Come to think of it, you cannot throw a man into the river without a struggle, so it is natural for APGA.

    On the part of APC, we are quietly engaging every one which will be engaged for victory in November. We are creating camaraderie and partnership among our 13 governorship aspirants. We are engaging the system within the law on the issues of democratic governance under the Local Government Areas.

    We are reaching out to the controlling public in the state for victory and for obvious reason, I will not give details. The noise you hear in the air from APGA is all fury, but no wage.

    Are you saying you are not afraid of PDP or the proposed Mega party?

    If you bring anybody who still indentifies with PDP, he himself will not rate the party as a contender. PDP is suffocated and as we talk, APC has swallowed one part completely and it is keeping its communication line open for the other faction.

    On mega party you mentioned. The only place we hear of it are online, newspapers, social media etc. The moment we move from internet from these organs and begins to connect with the people, they will not go anywhere.

    Remember the fight is between APC and APGA. I know the existence of UPP, PPA and others, they will align with the two parties when the time comes.

    Every other person in the state is waiting for the crisis that might erupt in APC after its primaries in the state, do you not envisage such?

    The APC is an organized, focused and disciplined political party and we have a pedigree when it comes to internal democracy. So, anybody that ascribes  crisis to the primary is not referring to the APC.

    Crisis is not what most people report as crisis particularly the media for the simple reason that politics is a game of conflict. So by setting up a primary process, the party has deliberately set up a clash of interest between tendencies. But side by side, the party also knows how to blend all the forces together. Since 2014 when the ACN conducted its primaries in Abuja, smoothly, we have held about five governorship primaries and none of them has produced a losing aspirant that left the party and none of them has led to an electoral loss. Yet, it does not mean that there were not claims and objections after the primaries and that is why it is a game of conflict.

    If you add the presidential primary to these five governorship primaries, you will see that the APC is virtually perfecting the act of producing of its candidates through free and fair primaries. Before the presidential primaries in 2014, I was asked a similar question in Lagos of which my answer was what I have given now.

    For the primaries, we do not have any fear whatsoever. If you take for instance the latest primaries in Ondo, which so many opposition members tried to raise issue from, you will find out that because there were very strong stakes, a lot of open arguments came up after the primaries and at the end of the day, the party used its internal mechanism to resolve the issues and the final analysis, Ondo became the first governorship election in southern Nigeria that did not go to court.

    Does the APC have the wherewithal to battle Governor Willie Obiano of APGA?

    Our party is yet to hold any primaries likewise any other party, we are not talking of the person to face Obiano, because he is not yet a candidate, we are talking of bringing out somebody we know that can dust any other candidate produced by APGA.

    However, should APGA take the risk of Obiano for the election, we are confident that the worst of the 13 of the aspirants will defeat Obiano convincingly, because he is a none-performing governor who has no good story to tell to deserve a second term.

    Obiano promised to govern Anambra with four pillars, the first of it is oil and gas where he promised that the state will be a part and parcel of OMPADEC bringing benefits to Anambra state, but he has failed. He promised that under his watch, Anambra will raise its profile by attracting investments and industries, again he has failed and to make matters worse, he has continued to lie that the state has attracted investments worth 4 billion dollars to the state.

  • Captive power good for SMEs, says report

    Captive power possesses huge potential that can transform small and medium enterprises (SME) and the economy, if leveraged, a report by The Corvus, a financial and economic publication of Guaranty Trust Bank Plc, has said.

    It said developing a captive power plant (CPP) was quite complex.

    Quoting Pricewaterhouse Coopers  (PwC), it said the project development timelines for CPP may span about three years, noting that it involves several predetermining factors ranging from regulation to mode of financing.

    “The latter is the easier part as it often comes down to either project financing, where the sponsor is directly responsible for the cash flow, or balance sheet financing, which typically involves debt financing based on cash flow generated by the project.

    “The major sticky points to the development of captive power plants in Nigeria are in regulations, where the laws governing captive power generations (CPGs) are quite restrictive.’’

    According to the Electric Power Sector Reform Act of 2005, CPP generates ‘’electricity for the purpose of consumption by the generator and which is consumed by the generator itself and not sold to a third party.”

    This is contrary to the industry’s understanding of a “captive plant” as one owned and operated by a third party, it added.

    The report said beyond financing and regulation, the building of any CPG project is complex and demands experience, expertise and patience.

    ‘’First, like working on any other venture in Nigeria, the project developer needs to be nimble understanding that the rules and road map are not very clear and ever willing to adjust his schedule and resources to accommodate for that.

    ‘’It is also essential to enter local partnerships with co-developers, to facilitate a smoother market entry and project development, and with clients – in this case SME clusters or industrial estates, to guarantee the financial viability of the project. Perhaps, most importantly, it is imperative that the project developer be as self-reliant as possible to ensure control over the entire value chain ranging from the operation of the power plant to the distribution channels.

    ‘’Where all the issues mentioned are effectively taken care of, the success of the  CPP generation project is virtually guaranteed with enormous rewards certain for the project developer, its clients and the economy at large,’’ the report added.

    Quoting the National Bureau of Statistics (NBS), the study stated that as at February, there were 37 million Small and Medium Scale Enterprises (SMEs) in the country.

    It noted that their contributions to the economy was over $250 billion, though $150 billion less than the gross domestic product (GDP) of the Australian city of Sydney last year, which has a population of just under five million people.

    It put the reason for the differential on limited access to finance and markets compounded by low skilled manpower and technology and mainly poor power supply.

    It would be recalled that  10 years ago, the government, through its Financial System Strategy 2020, targeted SME clusters for infrastructural support, as critical to solving their power challenge.

    Today, with these clusters still bereft of adequate power supply,CPP generators can fill the gap. The case for CPG is apt; industrially, they can guarantee SMEs security of power supply, commercially, they require significantly less time and money to develop when compared to traditional power, and technically, they can be configured to the specific industrial demands of SME clusters, it added.

    SMEs, and most businesses in Nigeria, rely on individually purchased, operated and serviced generators as their major source of power supply. The result was that Nigerians spent over N17 trillion on fuelling generators between 2010 and 2015, according a report by electricity-focused NGO, Good Governance Initiative.

    The study, built on the survey of SME owners in Southwest and Southsouth, reveals that over 70 percent of small business owners consider individually operated generators not good for their businesses as they spend nearly 50 percent of their yearly income on the fuelling and maintenance of their generators.

  • Power sector problems man-made, says Fashola

    Power sector problems man-made, says Fashola

    Minister of Power, Works and Housing Babatunde Fashola said yesterday that the challenges of the power sector were man-made and not technical.

    Fashola stated this as a distinguished lecturer at the University of Lagos.

    The theme of the lecture, organised by the Department of Economics, was: “The power sector reform in Nigeria: Challenges and the way forward”.

    Fashola said there was no mystery in achieving stable and reliable electricity supply but that all stakeholders must conform to guidelines of the sector’s roadmap.

    He said the roadmap was aimed at getting incremental, stable and uninterrupted power because  achieving set targets required step-by-step approach.

    He appealed to Nigerians to be patient with the All Progressives Congress (APC) administration, assuring that the party would deliver on its promises.

    The minister listed the attacks on gas pipelines; kidnapping of expatriates working on power sustainability, procedures and inefficiencies in power transmission and distribution as parts of the the challenges facing the sector.

    He also cited sabotage in governance; non-payment of tariff, poor investment, among others as other challenges frustrating the power sector.

    The minister noted that the issue of stable power was characterised by many years of broken promises but added that the sector was making progress.

    He said the country was not yet feeling the impact of the work done because of the processes involved in transmission and distribution.

    Fashola said: “The issue of containers left in the port for about 10 years; explosion of pipelines; badly installed equipment; cancelled tariff, electricity theft among others are all the handiwork of men.

    “Now, if men and women created these problems, in my view only men and women can solve them.

    “You and I have a role to play, I have stood up to play my role, have you?”

    The minister highlighted issues related to metering and tariff and asked Nigerians to blow whistle when they noticed sharp practices among the operators.

    The varsity’s Pro-Chancellor and  Governing Council Chairman Wale Babalakin said  the country needed a well thought-out  solution based on creativity.

    Dr. Babalakin said: “In thinking of the power generating solution of this country, we also we must be creative. We have what it takes but we indeed need to work on our attitude.

    “And that is why I am calling on all to join hand in reforming our education sector which is key to any developmental stride.

    .“Education as the engine room for the revolution of Nigeria must be fostered.”

    The Vice Chancellor, Prof. Rahamon Bello, said Fashola was well informed about  intrigues in the sector and  would get the solution with the support of all Nigerians. Babalakin added: “The most enduring solution to Nigeria’s problems is applied intelligence and this can only be attained through first class education. In thinking of this solution, we must be creative. We have a fair idea of the resources of the government. It is only through very serious technical application to very good resources that we can solve our problems.

    “There is need for cerebral application of our resources. We have everything; we just need a change of attitude. The most gifted people are not those with aptitude, but those with attitude. Aptitude is great with natural resources but attitude can be developed. I urge the intelligentsia, let us collectively develop the solution.

    “It is sad that we are far behind in education and we are indifferent. How do we resolve this? Let us all collectively find a solution. Education, as the engine room for the resolution of Nigeria’s problems, must be fostered.”

    The Dean, Faculty of Social Sciences of the university, Prof. Iyiola Oni, noted that the multiplier effects of power outages in the country had led to high cost of production.

    Oni also stated that inflation, unemployment and poverty were ripple effects of the power sector challenge.

    “In effect, this means that most of these  negative vices are more likely to become things of the past if sufficient and reliable power supply can be guaranteed,” he said

  • AEDC to distribute more power with new transmission station

    AEDC to distribute more power with new transmission station

    With the commissioning of the Kukuaba Transmission Station, the Abuja Electricity Distribution Company (AEDC) on Tuesday said that it is now reinforced and better positioned to serve its customers better.

    Speaking at the ceremony in Abuja, where the Minister of Power, Works and Housing, Babatunde Fashola, who was represented by the Permanent Secretary, Engr. Louis Edozien, the Managing Director of AEDC, Engr. Ernest Mupwaya explained that the company can now distribute power directly to Lugbe and its environs. 

    This, according to him, is that the line from where the consumers are now getting their power is nearby. 

    “Those who are being served from Katampe in Gwarimpa, Life Camp, Mabuchi, Maitama, Wuse II, Jahi and others will also enjoy improved supply. This is so because it has now been freed of the power it was releasing to Lugbe. In the long time, we will have the capacity to take more electricity,” he said.

    According to him, the firm has reinforced 4,048 sub-stations in its network through maintenance services while surveying the protection system of 68 others.

    Speaking earlier at the opening session of the 17th Power Sector Meeting in Abuja, he said the reinforcement was to boost power supply and enhance health and safety in its operational environment.

    The AEDC boss noted the improvement in the power sector saying, “the usual discussions in the past about power deficit is gradually giving way to discussions about increased power not being utilised. This is further supported by the rate at which incremental generation is being commissioned in the industry.”

    He noted that commissioning the 132/33Kva Kukuaba transmission sub-station by the federal government shortly after the meeting would boost power supply directly in Lugbe area of the Federal Capital Territory (FCT).

    “The majority of customers in Abuja City such as Maitama, Wuse II, Gwarinpa and Mpape will also benefit from improved supply because of the freed capacity in the Katampe transmission substation,” Mupwaya added.

    Reeling out other achievements of the Distribution Company (DisCo) since it was privatised in 2013, he said: “We have completed Large Power Users (LPU) metering of 3,885 customers by February 2017; flagged off metering of Small Power Users (SPU) in December 2016 and close to 90,000 are metered so far.”

    AEDC said it has improved the organisational design, corporate governance and compliance, and improved training for its personnel.

    The Permanent Secretary in the Ministry of Power, Engr. Louis Edozien who chaired the meeting said the ministry has rolled out policy directives to address the limitation of 33Kv and 11Kv distribution infrastructures across the DisCos to solve the issues of power underutilisation often tagged as load rejection.

    Edozien urged the DisCos not to feel threatened by the recent ‘Eligible Customer’ pronouncement that will allow certain customers to buy power directly from the Generation Companies (GenCos). He said the declaration will strengthen their services and improve revenue base to tackle the liquidity crisis in the sector.

    He also revealed that the Market Operator and the Nigeria Bulk Electricity Trading Plc (NBET) are in the process of restructuring the bulk energy debts owed by DisCos to help them raise financing while improving their services to customers.

  • Power firms worry over N700b loan

    Power distribution companies (DisCos) are worried that the N700 billion Federal Government’s loan may not be enough to take care of their obligations, The Nation has learnt.

    Their fear stems from the  foreign exchange rate, which has increased the cost of production, and the  state of the economy. But they believe the loan would help to reduce their shortfalls, urging the government to extend similar assistance to other operators.

    The Director of Research, Association of Nigerian Electricity Distributors (ANED),  Mr. Sunday Oduntan, said the firms may not be able to  record much growth with the money. Although, it would help in reducing operational losses  it cannot guarantee the firms’ optimum performance, he said.

    He urged the government to provide a lifeline to operators in the upstream, midstream, downstream, and others in the value chain, to develop the oil and gas sector.

    Oduntan said: “The energy distribution companies are happy with the N700 billlion loan. However, the money cannot solve the problems facing the power firms. The DisCos are experiencing dearth of infrastructure caused by lack of liquidity in the industry. There are problems such as weak and obsolete transmission/distribution equipment, shortage of gas, meters, transformers and others.

    “The lull in activities in the petroleum industry is due to low engagements in the exploration and production (E&P) segment of the oil and gas sector. Therefore, extending such lifeline to E&P players will go a long way to boost gas supply to the thermal power plants and electricity supply. That is why the government needs to enhance the growth of the oil and gas industry by giving loans to the operators.”

    Oduntan said the N700 billion facility and the over N1 trillion debts owed the power firms by the Ministries, Departments and Agencies (MDAs) of government are not the same. “The MDAs are yet to pay more than N1 trillion, which they owe the power distribution companies. The debts and the loan are two different issues and should not be construed to mean the same thing. The loan is being given to compensate for debts,” he said.

    He said the decision by ANED and its members to keep silent on the issue of debts should not be mistaken for stupidity, stressing that the idea was to foster peace in the country. According to him, many stakeholders are peddling rumours about the state of the sector, including the debts owed the DisCos, among other issues.

    According to Oduntan, the problems in the sector are enough for the operators to contend with, adding that it would amount to waste of efforts if the operators engage in counter accusations with those accusing them of poor performance.

    The sector is yet to record any meaningful growth since 2013 when it was sold to the investors in the private sector. Instead, the industry has been facing problems such as poor generation, supply of electricity, shortage of meters, huge debts, among others. The sector recorded 2,500 megawatts (Mw) of electricity in the first quarter of 2017, the lowest ever in recent times. To improve power supply, the Federal Government advocated for energy mix, a development, which ensures that the country uses both on-grid and off-grid methods of generating electricity for growth.

  • Power firms worry over N700b loan

    Power distribution companies (DisCos) are worried that the N700 billion Federal Government’s loan may not be able to meet their obligations, The Nation has learnt.

    This fear is as a result of the prevailing foreign exchange rate, which has led to rising cost of production and the chaotic state of the nation’s economy. The firms said the loan would help them to reduce their shortfalls, urging the government to offer similar assistance to other operators in the value chain.

    The Association of Nigerian Electricity Distributors (ANED) Director of Research, Mr. Sunday Oduntan, said due to the bad economy, the firms may not be able to  record much growth with the money. He said, though the loan would help in reducing the operational losses of the power firms, it cannot guarantee them optimum production.

    He urged the government to provide lifeline to operators in the upstream, midstream, downstream, and others in the value chain, in order to develop the oil and gas sector.

    Oduntan said: “The energy distribution companies are happy with the N700 billlion loan. However, the money cannot solve the problems facing the power firms. The DisCos are experiencing dearth of infrastructure caused by lack of liquidity in the industry. There are problems such as weak and obsolete transmission/distribution equipment, shortage of gas, meters, transformers and others.

    “The lull in activities in the petroleum industry is due to low engagements in the exploration and production (E&P) segment of the oil and gas sector. Therefore, extending such lifeline to E&P players will go a long way to boost gas supply to the thermal power plants and electricity supply. That is why the government needs to enhance the growth of the oil and gas industry by giving loans to the operators.”

    Oduntan said the N700 billion facilities and the over N1 trillion debts owed the power firms by the Ministries, Departments and Agencies (MDAs) of government are not the same. “The MDAs are yet to pay more than N1 trillion, which they owe the power distribution companies. The debts and the loan are two different issues and should not be construed to mean the same thing. The loan is being given to compensate for debts, he said.

    He said the decision by ANED and its members to keep silent on the issue of debts should not be mistaken for stupidity, stressing that the idea was to foster peace in the country. According to him, many stakeholders are peddling rumours about the state of the sector including the debts owed the DisCos, among other issues.

    Oduntan said the problems in the sector are enough for the operators to contend with, adding that it would amount to waste of efforts if the operators engage in counter accusations with those accusing them of poor operation.

    The sector is yet to record any meaningful growth since 2013 when it was sold to the investors in the private sector. Instead, the industry has been facing problems such as poor generation, supply of electricity, shortage of meters, huge debts, among others. The sector recorded 2,500 megawatts (Mw) of electricity in the first quarter of 2017, the lowest ever in recent times. To improve power supply, the Federal Government advocated for energy mix, a development, which ensures that the country uses both on-grid and off-grid methods of generating electricity for growth.

  • Why Nigeria’s power is not attractive to investors, by Nnaji

    Why Nigeria’s power is not attractive to investors, by Nnaji

    Harsh operational environment and regulatory challenges are the chief reasons why Nigeria’s power sector is not attractive to investors, former Power Minister Barth Nnaji, said yesterday.

    Nnaji, Chairman of Geometric Power Limited, was the keynote speaker at the Natural Gas Business Forum organised by the Nigerian Gas Association (NGA) in Lagos yesterday. The conference was with the theme: ‘Embracing new realities: Resetting our gas to power industry.’

    He said the Federal Government had not addressed major issues that would guarantee return on investment, citing non cost-reflective tariff as one.

    He said a power summit in Copenhagen, which attracted key industry operators and investors from across the world, the participants at a special session on Nigeria, said they were not willing to make investment in Nigeria’s power sector, citing several challenges.

    According to Nnaji, among the fears expressed by the international investors include lack of cost reflective tariff, gas supply constraints, poor transmission network, non-credit worthiness of distribution companies (DisCos) over leveraged power assets, value chain misalignment and lack of will to enforce agreements.

    Evaluating the issues, the former minister said many projects had been stalled due to finance constraints and tariff issues. He said tariff must reflect currency movement. “There must be attachment of tariff to currency movements and adjustments must be done, and tariff review will help DisCos to recover costs and pay for gas,” he said.

    He also noted that lack of industry deregulation and absence of proper legislation had discouraged investment because it is only deregulation that would allow investors to consider investment in gas production and transportation.

    Nnaji said government does not have the funds to put the transmission network in proper shape. He advised government to consider concessioning the transmission network, which he said should be broken into segments but properly interconnected, adding that the DisCos were facing serious challenges because the technical aspect of the system was still bad leading to 50 per cent of inefficiency in the sector.

    According to him, the investors in the distribution sector borrowed money to buy the assets but did not invest in other supporting infrastructure to make the chain function effectively. “We can reduce losses by investing in technical areas and also there is lack of commercial knowledge among government functionaries on how to do agreement, and again the country lacks the will to enforce agreements,” he said.

    The former Minister of Power also called for the overhaul of the country’s transmission network to address energy leakages. The overhaul would help to boost effective energy evacuation to distribution companies. According to him, transmission network is a major challenge as wheeling power out to distribution companies remains a constraint.

    He urged the government to ensure stable transmission infrastructure before expanding the national electricity generation capacity to 10,000 megawatts (mw). Building generation capacity on weak transmission infrastructure would result in total collapse or destruction of the whole structure. Currently, power generation oscillates between 2,500Mw and 3,500Mw, he said, adding that most of the generated power could not be evacuated due to weak transmission lines.

  • Ibom Power re-strategises for better performance

    Ibom Power re-strategises for better performance

    Ibom Power Company Limited (IPC) is re-strategising its operations through the implementation of its  Managing Director,  Meyen Etukudo, has said.

    Speaking after a three-day training workshop organised for the board and management of the company at the Le Meridien Ibom Hotel and Golf Resort in Uyo, the MD said the aim of the workshop was to develop a synergy between the board, management and the staff.

    The workshop was facilitated by PEK International Consulting Networks Limited.

    The workshop dealt with managing stakeholders’ interest, corporate governance and corporate performance, transparency and accountability  and the challenges of good corporate governance.

    Deputy Managing Director Neslon Usiere said the workshop was the first of its kind in Ibom Power Company Limited.

    He said the synergy between the board and management  would develop Ibom Power within the shortest possible time.

    The Chairman of Ibom Power Board of Directors,  Etido Inyang, stated that the re-strategising would actualise  Governor Udom Emmanuel’s vision.

    He lauded the facilitators and urged the board and management to put to use the knowledge gathered at the training in the discharge of their duties.

  • Why Nigeria’s power need is peculiar, by lawyer

    • ‘It’s the only privatised sector in Africa’

    Legal adviser to the Federal Government’s Advisory Power Team (APT) Mr Dapo Akinosun, has called for a homegrown solution to Africa’s energy problems and needs. Using Nigeria as a case study, Akinosun said despite its huge challenges, Africa’s energy sector provides good business opportunities for investors. He advocated an African solution to the power problems of the continent. “My vision for Africa in the energy sector is one that is independent and interdependent, Independent by national design and perspective; and interdependent by international choice and focus”, he said.

    Akinosun spoke at the African Utility Week conference in Cape Town, South Africa. The theme of the conference is “What is the best-cost and optimal mix in Africa?”

    APT is made up of experts in various areas of the power sector, including: Gas to Power; Solar Power; Transmission; and Generation among others. The mandate of the team is to provide technical support to the Federal Government on power and to harmonize the direction of all MDAs (Ministries, Departments & Agencies) involved in the power sector.

    The team also reviews proposals from investors and foreign governments interested in participating in the power sector, with a view to advising the government. The team’s mandate makes it interface with participants in all areas of the power sector. The team  conducts physical assessment of power facilities across the country.  It is the office of the Vice President who supervises many of the Ministries Departments and Agencies (MDAs) in the power sector.

    Akinosun, the principal partner of Simmon Coopers Partners, is responsible for energy and infrastructure practice at the chambers. He has advised governments and organisations who are participants at all levels of the energy sector, in ensuring optimum effectiveness in their activities, investments, and regulatory compliance.

    Akinosun believes that the power sector is on a peculiar learning curve, the realities of which are better appreciated when put in perspective. “It should be understood that Nigeria’s power sector is the only privatised power system in the continent.

    “That in itself poses management challenges as there are no Africa specific benchmarks to use in comparison.  This becomes important when we realise that all development is achieved based on comparative models which in our case we do not have. It is therefore axiomatic that for every major achievement we need to dig within to find a solution”, he said.

    He acknowledged at privatisation was not perfect, pointing out that this has lengthened the learning curve. Akinosun noted the fluctuation of the  naira vis-à-vis the major currencies of the world. “Given that most of the components of the Nigerian power sector are imported, fluctuation in the value of the Naira makes business planning a nightmare.”

    Despite all the challenges, Akinosun believes that the industry has potential for those who are ready to invest in its energy sector. “It’s not all gloom and doom. ‘The challenges in and of themselves are business opportunities. Equally important is that the liberation of the sector has shed light into a previously opaque sector;

    “The light that has come helps to itemise in verifiable terms the opportunities in the sectors. This becomes good news to entrepreneurial interests and the investor community. In  summary, the power sector is a case of half empty and half full. The way you choose to look at it will determine if you can benefit from the sector or not, he said adding: “My message will revolve around developing home grown solutions to the energy challenges. Yes, we talk about the financial demands of the industry but it is key to break these demands into piecemeal tasks  such that the financial needs can be solved with home grown remedies rather than imported ‘medications’. To this extent, what Nigeria currently obtains from Europe and the US should be obtained from countries like Kenya, Egypt, South Africa, etc;

    “Energy is the most important commodity. Period! Energy can be measured for empirical purposes in per capita terms. Nigeria and indeed the continent have some of the great potential for demand for energy. We should not misuse this opportunity. An African that is both independent and interdependent is in the enlightened self-interest of all”.

  • Content Act to cover power, other sectors, say Reps

    The House of Representatives has said it’s work on the bill that would extend the Nigerian Content Act to other key sectors of the economy such as power, construction, information communication technology and telecommunications is to enable Nigerians enjoy the sectors.

    Members of the House of Representatives Committee on Local Content led by its Chairman, Hon. Emmanuel Ekon, stated this when the committee paid  an oversight visit to the Nigerian Content Development and Monitoring Board’s (NCDMB) premises and project sites in Yenagoa, Bayelsa State.

    The Committee chairman said the first reading on the bill to extend the Nigerian Content Act to other key sectors has been passed, adding that the House members currently are fine tuning it. “I believe the bill will be passed this year,” Ekon added. He noted that violation of Local Content Act was more prevalent in the construction sector than the oil and gas sector.

    The committee commended the NCDMB for its diligent implementation of the Nigerian Content Act,  speedy execution of its headquarters building and the Polaku pipemill projects located in Bayelsa State.

    Speaking at the Polaku pipemill site, Ekon stated that the location met all requirements for citing such a facility including proximity to natural gas needed to generate electricity for the plant’s operations, access to road, which is a driver for transporting raw materials and finished products.

    He dismissed insinuations that the Board was acting beyond its mandate by promoting the pipemill, insisting that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act empowered the Board to woo investors and prepare locations especially difficult terrains so that prospective investors would be convinced to commit their funds.

    After tour of the projects, Ekon promised that the House of Representatives would pass the bill extending the Nigerian Content Act to other key sectors of the economy so that Nigerians will enjoy the benefits. He also hailed the Board and its main contractor, MegaStar, for the speedy execution of the building project.

    “I was here when this land was acquired in 2015. Then, this place was bare ground. It’s not even up to two years and eight floors are already standing. We need to sell construction companies like this because it is 100 per cent indigenous. This company has invested resources in machines, personnel and construction equipment. Nigerians, multinationals and the Federal Government should patronise these kinds of companies,” he said

    NCDMB Executive Secretary, Simbi Wabote, in his welcome address, explained to the Committee that the Board’s mandate hinged on promoting, monitoring and evaluating Nigerian Content compliance in the oil and gas industry and serving as a catalyst to attract and drive needed investments so as to grow the economy and create jobs.

    Wabote restated the Board’s preparedness to assist any local or foreign investor seeking to develop facilities, stressing that the Nigerian Content Act provided that goods manufactured in-country would always get patronised by the industry ahead of foreign alternatives.

    On the Polaku pipemill, he stated that the Board had completed the sand filling of the site, conducted environmental impact assessment (EIA) and embarked on the construction of the access road, adding that the Board entered into a Memorandum of Understanding (MoU) with Titan Steel of China, who are expected to commence construction and complete the project by 2019.

    On the modular refineries in oil producing states – being encouraged by the Federal Government,  Wabote stated that the Board’s initiatives seek to ensure that the refineries get fabricated and assembled in Nigeria as against being imported from overseas. He also solicited support from the legislature to ensure that indigenous operating companies and the Nigerian National Petroleum Corporation (NNPC) comply fully with the provisions of the Nigerian Content Act.