The Nation Newspaper

Tag: POWER

  • NACCIMA decries epileptic power supply

    NACCIMA decries epileptic power supply

    The Association of Chamber of Commerce Industry, Mines and Agriculture (NACCIMA) has decried poor electricity supply in the country, especially to the manufacturing sector.

    NACCIMA President Mr. Bassey Edem said the positive outlook of the energy sector early in the year could not be sustained, as power generation has continued to drop in the last three months.

    He spoke to The Nation in Lagos on challenges facing the Organised Private Sector (OPS), which has resulted in lack of capacity utilisation. He condemned the vandalisation of pipelines, which has hampered the supply of gas to the power plants.

    Edem advised the government to improve alternative and renewable energy sources for power generation to overcome the challenges. He said: “It is about time the government considered decentralising power transmission.

    “It is also important for investors in the power sector to ensure that consumers get value for money, while efforts are intensified on the distribution of pre-paid meters. The recent signing of power purchase agreement by the Federal Government and 14 solar energy firms is a welcome development.”

    The NACCIMA president urged the government to ensure strict adherence to the timeline in the agreement, so that within the shortest possible period there would be an improvement in power supply in the country, while they continue to work towards achieving the 30, 000 Megawatt (MW) target to meet the needs of every sector of the conomy.

    Bassey also called on the government to put in place measures that will address the immediate negative impacts of the new Foreign Exchange policy. He also asked that commitments and outstanding Letters of Credit (LCs) by importers with naira cash backings, that were billed at the new exchange rate to the importer, be retained at the rate with which the form ‘Ms’ were issued.

    He said in the alternative, the Central Bank of Nigeria (CBN) should introduce a form of palliative measure to reduce the resultant loss incurred by importers.

    According to him, the quest to attract Foreign Direct Investment (FDI) can only materialise  when foreigners see the prosperity of indigenous companies. He said the unhealthy business environment has led to the relocation of many companies, especially the multinationals, who have gone to other African countries to set up their businesses.

    Bassey criticised some of the economic policies of the government, especially with Diaspora remittances, which he said may be difficult to recover by those who sent them as a result of the not so clear and inconsistent Forex policy.

    On Economic Partnership Agreement (EPA), the NACCIMA boss argued that although it is a good concept, local manufacturers have not developed to a level that can accommodate the agreememnt. He said: “Overseas countries are not aware of the challenges of power and the crisis of poor infrastructure provision in all its ramifications. Putting all that into consideration, we cannot support EPA now as the ratification will make us uncompetitive”.

    The NACCIMA boss also berated the Federal Government over the non inclusion of members of the private sector in the economic team. He wondered how the peculiar challenges facing the private sector can be adequately addressed when they are neglected in such an important group.

  • Discos not to blame for poor power supply

    Recently in Kenya, there was a blackout for four  hours and its  people wondered what   happened.

    Later, the power generating company KenGen issued a statement, blaming  a monkey which tripped on an equipment in an hydro power  plant for the problem.

    The generation company (GenCo) said though the monkey survived, Kenya lost 183megawatts (Mw)  during  the blackout. It apologised to consumers, promising to secure its facilities from  such hazards in future.

    I  can’t help admiring the way  the  firm handled the matter efficiently. Of  course most Nigerians will argue that the power supply in Kenya is not compared with  that of Nigeria because it is erratic here and blackouts are more.

    I agree with them.  This is because  the Kenyan  power firm has been allowed to do its public relations without  any pressure and without  any  ‘monkey’ tricks  or  interference from any  quarters  on the source  of  power  failure.

    In  Nigeria, however,  the way  blackouts  are  explained is different.The  culprits are  the distribution companies (Discos) that deliver electricity to our homes and companies.

    This has been reinforced by the   hostile  attitude of the trade unions in the power sector in that they mobilised consumers against the discos. Take the case of when tariffs were approved for the discos by the Nigerian Electricity Regulatory Commissionwere announced early  this year.

    The unions instigated even  the Senate  to stop  the tariffs hike and  NERC went  to  court  to accuse the Senate of usurping  its  legitimate  function as the regulator  of electricity. The unions  did  not  stop there; they asked workers to go on strike on the new  electricity  tariffs as if it is  the same thing with the fuel price increase  to N145 on which  they called out workers on strike recently.

    This  is  despite  that discos don’t  generate or transmit electricity,  but  only  deliver  to  consumers  when it is   is available.

    Stakeholders in the electricity  industry include the Nigerian  Electricity Bulk  Trading  Company, gencos, discos  and transmission  companies. How come then that the union  leaders are always  pointing fingers at  the  discos when  there is a power  failure?  As  the  Kenyan  example  has  shown, it was  a genco  that explained  what  happened, not a disco.

    In  Nigeria, it  is true that pipeline vandalism  has  reduced  the generation and transmission of electricity  not  to  talk of distribution, which is the responsibility  of the discos.  But,  then,  can  the  discos  distribute  what  they  don’t  have?

    True, the gencos cannot generate power  when they don’t  have the  basic  ingredients to  do so and even  when  sources  of  such  generation  have  been rendered  unproductive  or inactive  by  vandals.  In  Kenya,  the  genco  was  lucky  that it was a  monkey that  cut  power  for hours  only.

    It  is  an army  of vandals  that  are stalling electricity production daily    and  they have  even  metamorphosed into  a virile terrorist group  called  the Avengers  of the Niger  Delta  who  are daring   and taxing  the  federal    might.

    That really is the core  of the matter  and  that  is what the unions should  focus on as the cause of irregular electricity supply.

    Therefore,  the  discos,  which  are  at  the receiving end  of the poor electricity supply chain,  should  not  be blamed  by  the  unions.

     

    • Aliu, an analyst, writes from Kano

  • Power: Senator seeks special consideration for Niger state

    The senator representing Niger South in the National Assembly, Mustapha Sani Mohammed, has called for special treatment and consideration to be given to Niger state in the allocation of power to the state.

    Expressing dismay over the state of total electricity blackout in in the state, the Senator called for the implementation and full take-off of the Hydro Power Producing Areas Development Commission (HYPADEC).

    He supported the Governor’s demand for 13 per cent derivation allocation of electricity to the state adding that it will go a long way in addressing the incessant power blackout in the state.

    In a statement signed by the Senator, he described the governor’s demand as “judicious” said this is necessary especially when power used in the country is being sourced from the state.

    “Niger state is the country’s source of power. Shiroro, Jebba and Kainji dams, where power is being generated for the country, are all located in the state, hence it is with utmost dismay that, all over the years, that no special treatment or consideration is given to the state both in terms of allocation of power from the national grid and in terms of power revenue.

    “13 percent derivation is being enjoyed by the Niger Delta region because of the challenges meted on the people and the environment by oil exploration; that is fully judicious, but if the same treatment isn’t given to Niger state in terms of power, justice isn’t served, for many Niger’s communities, too, are endangered, constrained and disadvantaged because of power generation.

    “It is against the backdrop of this that I declare my support for my Governor, Alhaji Abubakar Sani Bello’s recent demand that 13 percent of the power generated in the country be given to the state beside its normal share.”

    Mohammed then called on the Abuja Electricity Distribution Company (AEDC) to expediently fix the fault causing total blackout in Niger state calling on the people of the state to eschew violence as a result of the blackout, as the governor and other stakeholders are leaving no stone unturned to see that power becomes normal.

    It would be recalled that Sani Bello demanded that 13 percent of power be given to Niger state beside its normal share from the national grid during a stakeholders’ meeting held as a result of almost total blackout that is being witnessed in the state for almost three months.

  • Why Babangida removed me from power, by Buhari

    Why Babangida removed me from power, by Buhari

    President Muhammadu Buhari has said he was removed from office 31 years ago because he was planning to purge the military hierarchy of corruption.

    Buhari, who has not spared the military even in his ongoing anti-corruption war, said senior military leaders, led by former military president, General Ibrahim Babangida and General Aliyu Gusau, removed him in August 1985, to save themselves from his wrath.

    In an exclusive interview published in the current edition of The Interview magazine, Buhari challenged Babangida and Gusau to tell the truth on why they carried out the coup against him.

    “I learnt,” he said, “that Aliyu Gusau, who was in charge of intelligence, took import licence from the ministry of commerce which was in charge of supplies and gave it to Alhaji Mai Deribe.

    “It was worth N100,000, a lot of money at that time. I confronted them and took the case to the Army council in a memo…I wanted Gusau punished.”

    In a statement on www:theinterview.com.ng, the Managing Director/Editor-in-chief of The Interview, Azu Ishiekwene, said, “This is one edition that won’t let sleeping dogs lie.”

    Babangida had told The Interview in its December edition that there was nothing in the memo which Buhari said he submitted to the Army council.

    “Don’t forget that I was one of Buhari’s closest aides. I was the chief of army staff. So, I had an important position, an important role to play within that administration. I don’t think it had to do with a memo,” Babangida said.

    But in a tone which revealed that the past may neither have been forgotten nor forgiven, Buhari challenged Babangida and Gusau to come clean on why they removed him, asking The Interview to choose whose story to believe.

    He also fielded questions about his health, the 2016 budget, the pace of his government, former President Goodluck Jonathan and why Mr. Babatunde Raji Fashola was handed three ministerial portfolios.

    The edition also features interviews with Liberian presidential hopeful, Mr. Winston Tubman, and retired Justice Dahiru Saleh, the controversial judge whose court nailed June 12.

    And in an interview which indicates that the battle for 2019 could be well and truly underway, pharmacist and rotarian, Dr. Mike Omotosho, aims at the Kwara State government house.

    His road map would give rivals sleepless nights.

  • The Power Crisis

    Power, Works and Housing Minister Babatunde Fashola, SAN, is by general acclaim one tough cookie of a performer in public office. Beyond whatever might be the political trade-off by President Muhammadu Buhari in naming him to the Federal cabinet, Fashola’s exploits as two-term Governor of Lagos State recommended him highly for his present portfolio, which merges under the present dispensation three intensive ministries in past dispensations. When he was assigned the job after a six-month wait by Nigerians on the President to name his ministers, not a few conceded readily that Fashola’s track record qualified him for the posting. But the power component of his present portfolio may yet be the ultimate test of his public office career, and from indications, he would be lucky if it does not turn out to be his waterloo.

    The minister, early last week, was in Benin where he encountered residents protesting persistent power failure, which was compounded by the sheer affront of a recent hike in electricity tariff by the National Electricity Regulatory Commission (NERC). The Benin protesters, like many Nigerians, apparently couldn’t fathom the logic in asking consumers to pay more for public power supply that was anything but ever supplied. Incidentally, the minister had been strident in saying there was no alternative to the tariff hike, which a Federal High Court in Lagos however voided last Wednesday as “procedurally ultra vires, irrational, irregular and illegal.”The protesters also bemoaned the haemorrhage being inflicted on the economy – perhaps more devastatingly, cottage economy – by unrelieved blackout from the public grid, saying nearly all businesses in Benin had been forced to close shop.

    Fashola, who was in the Edo capital for a stakeholder meeting organised by the Benin Electricity Distribution Company (DisCo), blamed the poor supply of power on shortage of gas to run turbines in the state. Speaking after a tour of facilities, the minister said there were four turbines, of which only onewas working.  He was reported as telling the protesters: “I am just coming from inspecting the power assets, that was the first thing I went to do. We have four turbines there, but only one is working. That is not Benin DisCo’s fault. They just don’t have the gas. There are three idle power plants there, but they don’t have gas.”

    The minister pushed back against protestations about economic haemorrhage, saying: “We have a sense that things are bad in terms of poor supply, but it is not necessarily a hopeless situation. So, when you say every business in Benin has been shut, that is not true.” He waxed tutorial: “Let us understand that power is a product, it has to be manufactured. You need gas in some places, you need coal in some places, and you need solar in some places. It has to be put together. Assuming I am trying to cook a pot of soup and you are angry and you take the pot away, can I still cook? But if you bring water while I am getting the wood, I think we will have a meal.”

    The Benin protesters signpost the gruelling experience of most citizens concerning the power supply situation presently in this country. It is regrettable that the minister suggests they were needlessly sensational and overdramatic aboutthe challenge. People say there is something on Privy Street that perennially hoods the reality on Main Street. That may just be the problem here, because the power situation is hopeless – utterly frustrating and hopeless!

    I am no expert economist, but I know that theeconomics of power supply on Main Street runs roughly along the following lines: the cottage economy is shutting down because with lack of public power supply, operators can scarcely afford alternative power at the prevailing rate of about N200 per litre of diesel, or between N140 and N145 for gasoline. Medium and big-time operators deploy alternative power to remain in business, but that translates to huge shavings off their profit marginswhere there is profit left. Their instinctive recourse is to pass the burden to end-consumers, thereby fuelling rouge inflation. The operators have also tended to roll back their overheads byshedding existing workforces; and they freeze the wages of workers remainingdespite the inflationary trend that they, by downloading the extra costs to consumers,largely accounted for. But because incomes are capped, there is a limit to which consumers can absorb higher costs or do without non-essential items; and so, it devolves back to operators to forfeit some expected returns.

    Nigerians invariably need power supply to run their lives, but that power is scarcely supplied from the public grid. And it is cold comfort that the challenge derived fromlack of gas – or indeed coal, or hydro resource – to run the turbines. This point is all the more warranted because the Association of Nigerian Electricity Distributors (ANED) has lately mounted a media campaign deflecting responsibility for the persistent blackout by citing low power generation owing to lack of gas. ANED effectively submits that it could not distribute to Nigerians what it had not been fed from the generation front end. But the bottom line is that citizens need power, and it is not their responsibility to provide gas, coal or hydro resource for the turbines. That is what the government was voted in to do. And if there are hindrances on the way, it is the government’s responsibility to speedily address such.

    It is notorious, of course, that the challenge of militancy in the Niger Delta deals mortal blows on existing infrastructure in this country, accounting for the shortage of gas. The government needs to decisively confront this challenge. It is high time it tackled downthe militants by arms, if it really can, or face up to the urgent imperative of dialogue – with attendant indignities. Pendency between those options has become a life-threatening luxury.

    Cameron…Fantastically Gone!

    Nearly three months earlier than he had envisaged, David Cameron bowed out last Wednesday as British Prime Minister. At 49 years, he is said to be the youngest in his country’s history to exit the top job. He is succeeded by 59-year-old Theresa May – the second woman ever to become Britain’s premier, the first being the late Iron Lady Margaret Thatcher who held sway from 1979 to 1990.

    Cameron first came to office as Prime Minister in 2010. His tenure was renewed in the 2015 general election in Great Britain and was projected to run till another election holds in 2020. But he resigned following the June 23 referendum in which British voters chose to end the country’s 43-year membership of the European Union (EU), against the run of his campaign that the country remain in the bloc. It was anticipated that the process of selecting a new Conservative leader and, in effect, Prime Minister would run a competitive hog lasting beyond nine weeks. But the process was abridged last week, following a shock withdrawal by May’s challenger,Andrea Leadsom, clearing the way for her coronation. Cameron realised there was no good reason for him to remain in office till October, as he initially projected, and he swiftly gave way to the successor.

    Perhaps the most iconic documentation of that transition was a picture of the former premier in weathered clothing, by himself hauling cartons of his personal effects from the official residence into a waiting truck. Not a few wondered if it could ever happen in Nigeria, indeed Africa, that an outgoing leader to be so enthusiastically hands-on. The sad truth is: not only is the typical Nigerian politician unlikely to be so hands-on in leaving power, he would likely challenge the Brexit vote at the tribunal and run the appellate process as long as it could be made to last. We simply need to be learning from other climes.

  • Power dips on 4,010 MW gas supply shortage

    Power dips on 4,010 MW gas supply shortage

    FOLLOWING shortage of gas to 4,010MW, power supply by the Transmission Company of Nigeria (TCN) on Tuesday to the 11 distribution companies dipped to 2,886MW.

    TCN’s Nigeria System Operator of Nigeria (SO), on Monday, sent out 3,019MW while gas constraint was 3,516MW before it worsened the next day, resulting in a loss of 133MW.

       In the period under review, energy loss due to gas shortage increased by 494MW.

      The Nigeria Electricity Supply Industry (NESI), in its website, said yesterday that although the electricity market on Tuesday recorded 0MW water constraint, its line constraint was 473MW line .

    According to the daily summary of electricity performance, the NESI total losses were an equivalent of N2,152,000,000.

    It noted: “On July 12, 2016, average power sent out was 2,886 MWh/hour (down by 134 MWh/h). The reported gas constraint was 4010MW. The reported line constraint was 473MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N2,152,000,000 on July 12, 2016, due to constraints.”

    Prior to Tuesday, the sector recorded marginal increase in power supply.

    On Tuesday, it recorded 3,516MW gas constraint and 379 line constraint, amounting to N1,870,000,000 loss.

    “On July 11, 2016, average energy sent out was 3019 MWh/hour (up by 489 MWh/h). The reported gas constraint was 3516MW. The reported line constraint was 379MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N1,870, 000, 000 on July 11, 2016, due to constraints.”

  • Reps to probe power assets’ sale

    The House of Representatives yesterday resolved to investigate the sale of power assets to ‘portfolio business men,’ arguing that the power distibution companies (DisCos) lacked financial and technical capacity to run the firms.

    The decision of the lawmakers followed the adoption of a motion of urgent public importance raised by  Aliyu Madaki  (APC, Kano),  who said there was nothing to justify the 45 per cent hike in February hike in electricity tariff as there was no improvement in power supply across the country. He spoke against the backdrop of alleged plans by the DisCos to implement a fresh tariff hike.

    He said: “If the proposed hike is not put on halt, it’s multiplying effect on the economy and the social well being of Nigeria cannot be quantified”.

    Majority Leader, Femi Gbajabiamila  said the DisCos have not displayed any technical knowledge of the operations they were engaged in, in addition to lacking the financial capacity to run their operations.

    Calling for a review of the sale of the country’s power assets, he said:  “It is a scam as Nigerians pay heavily without obligation on the part of the DisCos. They believed that they have powerful people that will protect their interest.

    “They do not have the financial capacity or the technical know how. When you talk about investors, you consider institutional investors, not portfolio businessmen.”

    On his part, Phillip Shuaibu  (APC, Edo)  regretted that the perennial poor supply of power in the country has contributed hugely and directly on the rising rate of unemployment in the country.

    “As a result of this poor power supply, several businesses were being forced out of operations because they cannot break even by using alternative sources of power supply,” he said.

    There was report that the DisCos have written to the Nigerian Electricity Regulatory (NERC) requesting 100 per cent hike in tariff. The House mandated its Committee on Power to investigate the justification behind the last increase, and ascertain if the increase is commensurate with the investments by the DisCos in the power sector.

    The motion was referred to  the ad hoc Committee on the Sale of Power Assets after it was put to a voice vote and adopted by the House.

  • Lack of CEOs stalls power agencies’ budget

    Federal Government parastatals and agencies without substantive Chief Executive Officers  cannot access the 2016 budget, it was learnt yesterday .

    A source, who spoke on condition of anonymity, said the development has affected the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and the Nigerian Bulk Electricity Trading Company (NBET)  that are are operating without substantive CEOs.

    Without the budget, the source said, it would be impossible to pay contractors that need money to implement the projects.

    The Nation learnt that the Minister of Power, Works and Housing, Babatunde Fashola last month directed Ministries, Department and Agencies (MDAs) to prepare their schedules for the payment of their contractors.

    The source said: “The budgets of some MDAs that do not have substantive CEOs have not been released. Without the budget, you cannot make the contractors to move to site because once there is no money, the contractors will be reluctant to move. But once they know that there is money, it gingers them to work.

    However, Fashola last month asked MDAs to prepare schedules for payments of contractors.

    One  REA contractor lamented that there is an outstanding debt of N7billion owed to the contractors but the government approved only N1.2billion for the debt in this year’s budget.

    The contractor said: “We have an outstanding payment of about N7 billion but what they put in the current budget is N1.2 billion. Up till now we have not seen it. They said the budget has been realised but nothing has dropped into the account.”

    He said owing to the fact that there is no substantive CEO in  REA, there is also a limit to the action that could be taken as there is currently no board, stressing that some executive decisions are now referred to the Minister and Permanent Secretary.

    “REA has no board and there is a limit to the executive power of the acting Managing Director of the agency so he still waits for the Minister or Permanent Secretary to take such decisions,“ the cource said.

  • ‘How to tackle power problems’

    The Federal Government has been urged to adopt a holistic approach in fixing power problems.

    Stakeholders, including Electricity Meters Manufacturing Association of Nigeria (EMMAN)Executive Secretary, Muhideen Ibrahim and Kola Balogun,  Managing Director of MEMCOL Nigeria Limited, a meter manufacturing firm, urged the government to tackle power challenges from a broader perspective.

    Ibrahim  told The Nation that all sectors of the economy should  depend on each other for growth, arguing that the government’s attempt  to address the problems only in one sector, would not help the power industry.

    He said the power challenges were from other sectors, such as oil and gas and manufacturing. “This is the reason I said stakeholders, including governments must adopt a holistic approach to solving the nation’s problems of which power is the most critical one. Based on this, one can say that the complexities in the power sector are a reflection of a near failed system,  Ibrahim said.

    Balogun said the power sector would not grow if government  fails to solves generation problems by tackling the firms providing components, such as transformers, cables and meter, among others.

    According to him, when personal interest overrides that of the public in a country, the consequence for the economy is bad.

    “Why should somebody vandalise the gas pipelines, steal  armoured cables or underground cables?” he queried. He wondered why vandals should remove wires from the poles, destroy oil fields and wells, tamper with the transformers and meters.

    ‘The destruction of gas pipelines and  other national assets is injurious to the nation’ Balogun said.

  • Power sector’s losses reduce to N1.88b

    Power sector’s losses reduce to N1.88b

    The losses in the power sector have reduced from over N1billion to N1,877, 000, 000, the Nigerian Electricity Supply Industry (NESI) said yesterday on its website.

    In its daily market activities reports for Wednesday, it noted that gas constraint reduced from  4,533MW on Monday  to 3,635MW the day under review.

    The increase in power generation , said an industry source yesterday, was due to the completion of  the Okpai transmission line and repair of one of the gas power plants that the Niger Delta Avengers blew off.

    Similarly, the NESI revealed that the line constraint was 276MW, while the water constraint was 0MW.

    It added that that the Nigerian Electricity System Operator sent out 2,568MW to the 11 distribution companies.

    NESI said: “On June 29 2016, average energy sent out was 2568 MWh/hour (up by 600MWh/h). The reported gas constraint was 3,635MW. The reported line constraint was 276MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N1,877, 000, 000 on June 29, 2016 due to constraints.”