He said some of the key consequences include increased cost of production, reduced reliability, investment challenges, and environmental concerns when power companies resort to using cheaper but more polluting fuels.
Adelabu said the surge affects not only our economy but also the daily lives of every Nigerian citizen.
He spoke yesterday in Abuja at the African Natural Resource and Energy Investment Summit (AFNIS 2023).
He said: “As we begin conversation on power and renewable energy at this summit today, I want us to discuss a matter of utmost importance that affects not only our economy but also the daily lives of every Nigerian citizen; the impact of high gas prices on power generation in Nigeria. In recent times, we have witnessed a significant increase in the price of natural gas in the global market.
“This surge in gas price has a profound impact on our power generation subsector. Let me mention some of the key consequences which include increased cost of production; reduced reliability; investment challenges; and environmental concerns when power companies resort to using cheaper but more polluting fuels.
“I am using this medium to seek your continued cooperation and collaboration so that we can together implement government policies and programmes in the energy sector for the well-being of Nigerians and the country’s economic development. I also encourage all of you to engage actively in the discussions, network with fellow participants, and explore potential collaborations. Together, we can unlock the full potential of Nigeria’s energy sector and set the stage for a brighter, more sustainable future.
“You will agree with me that the Nigerian government is making commendable efforts in the power sector to address the long-standing issues of electricity supply.
While there is still work to be done, the commitment to improving the power sector is evident.
“The initiatives to expand access to electricity, upgrade infrastructure, promote renewable energy, and encourage private investment are steps in the right direction. With continued dedication and collaboration between the government, private sector and other key stakeholders, Nigeria can look forward to a brighter future with a more robust and reliable power supply.”
Senior Director, African Finance Corporation (AFC), Mr. Taiwo Adeniji said one of the key paths towards the achievement of net-zero is significantly scaling up investments in green projects.
He said it is estimated that Africa requires about $250 billion annually to close the climate financing gap. High volume of finance is required for sustainable infrastructure (clean energy and transport systems, green buildings and others).
“One of the key paths towards the achievement of net-zero is significantly scaling up investments in green projects. At AFC we believe the most efficient way to transform the continent, without further aggravating the climate situation, is to increase the amount of green energy available within Africa and at the same time develop the industrial capacity of the continent. . Africa indeed holds the key to the world’s transition to a sustainable future, being the home to significant proportions of the key transition metals, yet today it not only pays the price for the climate indiscretion of the past, but also struggles in accessing the funds it needs to change the course for a better future.
“It is estimated that Africa requires about $250 billion annually to close the climate financing gap. The bulk of these resources are expected to come from the private sector. Thus, African governments have a responsibility to design and implement conducive policies and regulations to attract private investments, particularly in priority sectors for climate action and green growth.”
`In a significant development within the Nigerian Electricity Supply Industry (NESI), Vice-President Kashim Shettima has pledged to overcome the challenges posed by electricity Distribution Companies (DisCos). He aims to establish bilateral electricity sales directly to end-users at the Agbara industrial cluster within the next six months. This initiative will be facilitated through power generated by the Niger Delta Power Holding Company (NDPHC) power plants, as reported by JOHN OFIKHENUA`In a significant development within the Nigerian Electricity Supply Industry (NESI), Vice-President Kashim Shettima has pledged to overcome the challenges posed by electricity Distribution Companies (DisCos). He aims to establish bilateral electricity sales directly to end-users at the Agbara industrial cluster within the next six months. This initiative will be facilitated through power generated by the Niger Delta Power Holding Company (NDPHC) power plants, as reported by JOHN OFIKHENUA
If Vice-President Kashim Shettima’s assurance holds true, the Agbara Industrial Cluster will soon enjoy a direct power supply from the Niger Delta Power Holding Company (NDPHC) within the next six months. This promising development is expected to alleviate the long-standing challenges faced by industrial customers, who have struggled with the high costs of off-grid power due to the national grid’s inconsistent supply.
The Nigerian Electricity Supply Industry (NESI) has traditionally relied on electricity Distribution Companies (DisCos) to provide power to end-users. However, these DisCos have often failed to meet their supply obligations, leaving industrial and residential customers without reliable electricity. Additionally, the efforts of the Federal Ministry of Power to bypass DisCos through initiatives such as the Eligible Customer Regulation and the Meter Asset Provider Regulation faced significant challenges. With the enactment of the 2023 Electricity Act, the path is now clear for states and private investors to enter the power sector, thereby relieving the national grid of its persistent strain.
On October 12, 2023, Vice-President Shettima, who also serves as the Chairman of Directors at NDPHC, led the NDPHC management team to a business roundtable at the Ogun State Property Investment Corporation (OPIC) Industrial Estate in Agbara, Ogun State, marking a significant step toward this transformative initiative. There, Shettima assured industry owners of the determination of the Federal Government to bypass infrastructure obstacles and supply electricity to them through NDPHC in a cheaper and sustainable manner. The bilateral power purchase agreement will ensure that those businesses get power at 60 per cent cheaper than what they currently pay for energy. None of the businesses currently operating within the Agbara industrial cluster consumes energy from the national grid.
Thus, Shetima promised that NDPHC, which is jointly owned by the three tiers of government (federal, state and local governments) will give them needed power within the next six months. The NDPHC Managing Director, Mr. Chiedu Ugbo noted that the business meeting signified the unwavering commitment and preparedness of the firm, under his watch, in strategic collaboration with esteemed partners to undertake bilateral electricity sales to end-users. According to him, the primary objective of the initiative is to ensure a consistent, reliable and cost-effective supply of electricity from NDPHC’s power plants to the extensive industrial and business clusters in Agbara and throughout Nigeria. His words: “NDPHC is a wholly-owned government company responsible for implementing the National Integrated Power Project (NIPP), which aims at enhancing electricity generation with associated electricity transmission and distribution infrastructure, for the benefit of Nigerians.”
NDPHC has successfully constructed eight power plants with a combined capacity of approximately 4,000 MW, as well as various transmission and distribution infrastructures. A significant portion of the capacity remained stranded due to constraints within the transmission and distribution system, distribution losses, gas limitations and the financial burden on the Federal Government’s balance sheet through NBET, the FG-owned primary bulk purchaser of electricity that on-sells to electricity distribution companies in Nigeria.
With the evolving regulatory framework of the NESI and the declaration of eligible customers, NDPHC has identified opportunities to revolutionise the industry through end-to-end solutions that increase electricity access for Nigerian homes and businesses and reduce the financial burden on the Federal Government’s balance sheet. “This event is a public manifestation of the months of diligent work by the NDPHC team and our project partners, devising creative and viable solutions to address power supply challenges in NESI. NDPHC remains at the forefront of the industry in pursuing bilateral power sales and other projects that ensure efficient and targeted power delivery to end-users. We are delighted to witness the incremental results of our collaborative efforts with our partners during today’s events.
“We are grateful for the Federal Government’s support, represented by our Board Chairman, the Vice-President and the state governments, represented by the governors of Ogun and Lagos states. We are fully aware that beyond the celebrations of today’s event, there remains a substantial amount of work to be done to successfully implement this programme and deliver steady, reliable and affordable electricity to Nigerian industrial clusters,” Ugbo said.
He affirmed NDPHC’s unwavering commitment to the successful execution of the project, not only in Agbara but also in various locations across the country. Continuing, he revealed that the company is prepared to distribute power to other industrial clusters in the country. According to him, the step will prune the technical and commercial losses.
The Managing Director said: “Aside OPIC industrial cluster at Agbara, we are ready to supply electricity to other industrial clusters in Nnewi, Port Harcourt, Kano and others. We recently signed an agreement with Ibadan Distribution Company. We will put a system in place that will allow us to collect our tariffs and also ensure the security of supply. Just a few days ago, we signed a framework agreement with Ibadan DisCo to supply power directly to industries around Shagamu. We are equally ready to work with partners in supplying electricity to residential areas directly on a bilateral basis. All it takes is to minimise technical losses, which has to do with poles and wires; commercial losses, which has to do with technology in order to ensure that there is no power theft or that power theft is reduced and of course, eliminate collection losses, which has to do with metering.”
Furthermore, a press statement from the State House on the roundtable noted that Shettima explained that the ongoing power projects to light up industrial clusters across the country are an indication that the President Bola Ahmed Tinubu administration is on a journey of rekindling the flames of enterprise. He added that the Federal Government’s commitment to revamping Nigeria’s infrastructure framework was the much-needed drive in empowering Nigerians and strengthening the country’s economic policies. According to him, while the government has embraced the past as a lesson in mapping a new path for a robust power sector, the historical mistakes that have brought Nigeria to the point it is are rather an inspiration to work harder.
The Vice-President said: “For too long, some of these ventures were forced to pack up, their potential stifled by the persistent energy constraints. Today, we embark on a journey of empowerment aimed at rekindling the flames of enterprise and ensuring that the promise of prosperity prevails over the darkness of past hindrances. We have gone a full cycle in the search for solutions to our energy crisis. We have unbundled and privatized the power assets in generation, transmission, and distribution. We have also implemented the National Integrated Power Project through the NDPHC.”
He vowed to closely monitor the progress of work in the ongoing power projects to light up industrial clusters across the country, with a view to holding every relevant official accountable. “I assure you that, in my capacity as the Board Chairman of NDPHC, I will hold every relevant official accountable and closely monitor the progress achieved in this project. We owe Nigerians this success story,” the Vice-President said.
Senator Shettima reiterated the commitment of the Tinubu administration “to provide the necessary institutional and policy support to ensure the successful delivery” of the project. In his address titled “Lighting the Path to Economic Development,” the Vice-President expressed gratitude to the Governors of Ogun, Lagos and Oyo states where the NDPHC was already developing similar projects, as well as the companies involved. He noted that the partnership between state-owned power companies and the private sector was an embodiment of progress, teamwork and commitment to fostering synergy to enhance the productivity of businesses and institutions.
The partnership, according to him, doesn’t only align with the vision of the Federal Government to transform Nigeria into a premier investment destination but also to serve as an industrial benchmark in Africa. He added that it was an affirmation of President Tinubu’s resolve to revamp the country’s infrastructure framework. Shettima said: “The launch of this strategic collaboration between the Niger Delta Power Holding Company Limited (NDPHC) and its key partners for the design, development and operation of projects to supply dedicated, steady and quality power to major industrial and commercial clusters in Nigeria echoes President Tinubu’s pledge to reinvigorate our country’s infrastructure framework.
“The choice of Agbara, Ogun State, as the pilot site of this owes to its function as an artery of Nigeria’s industrial structure. This is our resolve to breathe new life into the enterprises that sustain our economy.”
Noting that addressing the supply deficit in the Nigerian Electricity Supply Industry (NESI) is an intervention that aims to reverse “the generational setbacks that businesses with immense promise have endured,” Shettima said it was one thing to attract investors to the country and another to make them stay. He further assured that lighting up industrial clusters across the country signposts the beginning of a promised opportunity for Nigeria. “By mobilising private capital, harnessing the generation portfolio of NDPHC, and utilising the existing power delivery infrastructure, we aim to provide a consistent, reliable and high-quality power supply to specific customer clusters with substantial capacity demands.
“This effort has initiated an industrial revival of significant magnitude. In essence, it implies that, after a considerable period, the NESI will experience a substantial increase in supply levels without the necessity of injecting public funds, delivering nearly continuous power precisely where it’s most critical for our economy,” he said.
Senator Shettima described the host community, Agbara, as an archetype of what private sector investment, innovation and entrepreneurship could accomplish in the economic and infrastructural development of a nation, noting that other planned industrial clusters are a manifestation of how private capital could “drive industrial development and foster economic prosperity.”
The Vice-President revealed plans by the Federal Government to ensure the industrial clusters unfolded into a reality. “We are not only committed to providing the institutional and policy support necessary to enable, promote, and sustain this private sector-led initiative but also to paving the way for the emergence of synchronised development in transmission and distribution infrastructure, aligned with the demands of industrial customers. “This infrastructure is designed for the efficient and reliable transmission of power from NDPHC’s plants. We will deploy the appropriate technology to ensure the efficient operation of the networks and to minimise commercial, collection, and technical losses that have plagued the industry,” he said.
Earlier, Ogun State Governor, Dapo Abiodun said the location of the pilot phase of the initiative is due to the viability of the Agbara Industrial Area as the most successful industrial estate in the country. He said the initiative aligns with his administration’s drive to provide critical infrastructure in industrial clusters across the state. He thanked President Tinubu and Vice-President Shettima for prioritising the power sector, noting that it will unlock potential in different sectors of the economy.
The Minister of Power, Mr Adebayo Adelabu, said the interaction with stakeholders around the Agbara Industrial Estate was part of efforts by the Federal Government to deliver safe and reliable electricity to industrial and heavy-user clusters across the country. He expressed optimism that the initiative to ensure effective power supply to the Agbara Industrial Estate would be achieved and can be a model to be replicated across the country.
The Lagos State Deputy Governor, Dr Obafemi Hamzat said the challenges experienced in the power sector can be surmounted with effective collaboration and partnership as well as adherence to set standards and due process. He urged all stakeholders to be cautious in their comments and opinions about systems and institutions in Nigeria. Aside from the roundtable, the V-P held interactions with representatives of the different clusters in the industrial area. He had earlier on arrival at the Strong Pack premises, the venue of the event, toured the production lines at the factory.
Recall that the NDPHC which manages the National Integrated Power Project (NIPP) was conceived in 2004 as a fast-track government-funded initiative to stabilise Nigeria’s electricity supply system while the private sector-led structure of the Electric Power Sector Reform Act (EPSRA) of 2005 took effect. It is an emergency intervention scheme to tackle the deficit and expand the power sector infrastructure in the country. The company’s key mandate was to develop 10 power plants with a designed ISO capacity of 5,067MW. It has so far completed eight power plants with a capacity of about 4,000MW.
In power generation, eight of the 10 power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects to support commercial operation, have been commissioned and connected to the national grid contributing over 22,000,000kWh of energy daily subject to the availability of gas. NPDHC has over 3,000MW of generation capacity available for deployment if the grid permits and this represents the best opportunity for the rapid improvement of power supply to the teaming Nigerians. It should be noted that completed power plants include 750MW Olorunsogo II, 450MW (Ogorode) Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain. The 225MW Omoku, 338MW Egbema and 530MW Alaoji steam machines would wrap up the total available capacity of the plants to 1,774MW on full completion. Many of the NIPP power plants on the national grid also provide ancillary services like spinning reserves to support the system operations, a contribution critical for stabilising the national grid.
The NDPHC has completed 2,194km of 330kV transmission lines and 809km of 132kV transmission lines. This represents an increase of 46% and 13% respectively over the pre-NIPP status of grid infrastructure. A total of 10 new 330/132kV substations and 7 new 132/33kV substations have also been completed with several other existing substations significantly expanded thereby adding 5,590MVA and 3,313MVA capacity to the national grid. NIPP contributions to the transmission grid system have transformed the hitherto radial 330kV/132kV grid into a more robust grid system with significant provision of alternative power flow routes which now serve as redundancies and have resulted in a more reliable and stable Nigerian grid.
Of note in these respects are the inauguration of the over 220km long 330kV Double Circuit (DC) lines providing alternative thermal power into Abuja and the FCT from Geregu, through a new Lokoja sub-station, a new Gwagwalada sub-station into the existing TCN Katampe and Apo sub-stations with several significant expansion works on existing substation developments along this route.
Those present at the occasion include Governor of Ogun State, Prince Dapo Abiodun and Deputy Governor of Lagos State, Minister of Power, Commissioners from Lagos and Ogun states, captains of industry from Agbara, Lekki-Epe industrial cluster, Shagamu industrial cluster and traditional rulers from Ogun and Lagos states.
In his address to the United Nations in September 2011, President Barack Obama stated, “Peace is hard, but we know that it is possible.” I wholeheartedly believe in his statement. Achieving peace is challenging, but it is also attainable. Sustainable peace is within reach.
It is widely acknowledged that charity should begin at home, and since we view the world through our own perspectives, it’s fitting to commence this discourse with my homeland.
The story of Nigeria embodies the essence of the topic – how people, politics, and power can sustain peace. It raises important issues for contemplation. Nigeria’s diverse landscape, comprising 371 ethnic groups and tribes, each with a unique set of languages, religions, and cultures, creates a fertile ground for conflict. These conflicts range from trade and tribal disputes to religious tensions. Nigeria has experienced a tumultuous history, marked by colonial rule, insurgencies, tribal and religious divisions, competition for state resources, and political upheaval.
Despite these challenges, Nigeria has consistently displayed resilience and determination to overcome them. Our journey towards peace has been arduous, but it has imparted valuable lessons.
In May 2015, I assumed the role of governor of Akwa Ibom State. At that time, insecurity loomed large. Militant groups held sway, instilling fear in the population, and nightlife was non-existent. It was a tough situation, but I shared President Obama’s belief that despite the difficulties, peace was attainable. We initiated dialogues, engaging with various segments of society – militants, students, youth, women, professionals, from grassroots to the diaspora. It was a gradual process, but inclusivity became our guiding principle. Everyone felt a sense of ownership over the state and its resources. Equitable distribution of resources, prioritizing education and affordable healthcare, rendered the conditions that previously fuelled militancy obsolete. Peace prevailed. Since then, Akwa Ibom State has been recognized as one of the safest regions in Nigeria.
The Akwa Ibom State experience is a testament to the success of politics that empowers the people and fosters sustainable peace. However, not all peace projects have been as successful, and I believe that peace, like any project, goes through initiation, incubation, and manifestation phases.
To achieve sustainable peace, empowering the people is paramount. Ensuring the welfare and inclusive participation of all citizens, regardless of their tribe, gender, or religious affiliation, as demonstrated in Akwa Ibom State, is crucial.
On April 27, 2016, the United Nations General Assembly and the Security Council adopted resolutions aimed at achieving sustainable peace, which underpinned the 2015 review of the UN Peacebuilding Architecture. These resolutions represent a comprehensive commitment to global peace. Seven years later, how have we fared?
At present, various countries, including Afghanistan, the Central African Republic, Ethiopia, Libya, Mali, Somalia, South Sudan, and Syria, grapple with civil wars. Approximately 34 countries are in conflict, and more teeter on the brink, including Israel and Palestine. This is in addition to the ongoing Russia-Ukraine conflict, proxy wars, and localized insurrections and tensions worldwide. These conflicts, varying in severity and duration, significantly impact populations, often beyond the immediate areas, leading to devastating physical and humanitarian consequences.
Beyond traditional causes of war and unrest, the 21st century has introduced new challenges that threaten peace. These include environmental degradation, food insecurity, climate catastrophes, escalating poverty and inequality, socioeconomic exclusion, and democratic misrepresentation. These challenges necessitate the active involvement of people, the influence of politics, and the responsible use of power.
The wealth and well-being of a nation, as well as the happiness of its citizens, fall under the purview of politics and power and serve as the foundational elements for sustainable peace. It is undeniable that achieving sustainable peace hinges on how power and politics are structured, the extent to which state power is applied, and how inclusive or alienating the political system is.
Power and politics determine resource allocation, the decision to go to war or prioritize peace, tax rates, funding for various programs, and much more. They shape the distribution and size of the societal “pie” and influence what is subsidized or heavily taxed. In the realm of government and governance, where decisions are made, power and politics play a pivotal role as principal determinants of sustainable peace.
Power comes in various forms, but fundamentally, it denotes the ability to persuade people to act in ways that benefit society as a whole. It grants authority to decide what is discussed, who gets what, why, and how. It is in this process of distribution and redistribution that sustainable peace is either nurtured or jeopardized.
Politics, with its profound influence, plays a crucial role in fostering and maintaining peace. Therefore, it is essential that the “right people” are elected to positions of power. While politics may be daunting for many, it is a vital responsibility that, when mishandled, can quickly erode existing peace. Power should be entrusted to individuals who understand the importance of inclusivity and equitable distribution of state resources. Misuse or abuse of power has the potential to undermine peace and stability. Power must be exercised with the utmost responsibility, transparency, and accountability.
Power and politics are expected to create conditions that provide people with an acceptable standard of living, a prerequisite for peace and fulfilment. Regardless of its form, power must be rooted in the people to survive. Legitimacy, earned through a government’s commitment to its citizens, safety, fairness, and people-centric policies, is crucial for sustaining peace. Governments must demonstrate fairness; otherwise, people’s dissatisfaction with power and politics can threaten peace.
Achieving peace takes time and effort and may face setbacks, opposition, and challenging days. Just like any project, peace goes through initiation, incubation, and manifestation phases. To attain and sustain peace, politics and power must intentionally transition to a system that is inclusive of the people, guided by participation, engagement with government and governance, and grounded in international human rights laws and standards.
•Excerpts from keynote address delivered by former governor of Akwa Ibom State, Mr. Emmanuel, at the 8th London political summit held at the House of Parliament, Westminster Palace.
The Federal Government has assured investors of the President Bola Ahmed Tinubu-led administration determination to provide an enabling environment for business to thrive, promising to adequate power supply across the country especially in industrial clusters a reality.
Vice President Kashim Shettima gave the assurance in Ogun State yesterday during the Agbara Business Roundtable held at Agbara, Ado-Odo-Ota Local Government Area of the state where he launched an initiative to ensure dedicated power supply to industrial clusters across the country, starting with Agbara Industrial Estate.
He said the country holds tremendous opportunities for not only investors but also the people, expressing the concern that the Agbara Cluster relies on other sources of power supply aside from the national grid.
According to him, the Federal Government through the Niger Delta Power Holding Company (NDPHC) is committed to ensuring that clusters like Agbara benefit from a cheaper means of generating power in their various factories.
The Vice President, who is the Chairman of NDPHC Board of Directors, promised that the Agbara Industrial Estate would enjoy a steady power supply in the next four months.
He said: “I am here to reassure the business community that we mean business. I want to give you my word and my word is my bond, if you need 200 Megawatts, 300 Megawatts, we can give it to you.
“Be rest assured, we are going to supply your power needs with no strings attached. We are giving power to Togo, I think we are giving 100 Megawatts to Togo, and some of these nations are not even paying us. Why can’t we give to businesses that will pay us? It is just simple arithmetic; it is a matter of economics.”
He charged the staff of NDPHC to double their effort by ensuring the delivery of the Agbara Industrial Cluster power program in three to four months.
Shettima also reiterated the commitment of President Tinubu to make power available to the entire country.
“It is all about advocacy, it is about people believing in you and I have the confidence of my boss, such that I can talk authoritatively. He is very passionate about the Nigerian project. He is very committed to repositioning this nation,” he said.
In his remarks, Governor Dapo Abiodun said that without electricity, all infrastructure provided for the use of the people of Ogun state and the country as a whole would be in vain.
Abiodun said that his administration had established additional industrial clusters, stressing that without stable and reliable power, all the initiatives would not achieve the set objectives.
“We believe that such initiatives like this speak to ensuring the sustainability of competitive industrialization and one must not but salute this initiative.”We as a state have gone ahead besides this Agbara Cluster, we have five other clusters. We have one by the Interchange called Remo Cluster, we are creating a new one called the Magboro Cluster. We are creating our own Aerotropolis which is our special agro-processing zone, which will be the first of its kind in Nigeria. We also have the Ijebu-Ode cluster because we believe that it is through these clusters that we can jump-start socio-economic activity.
“These clusters, what do they seem to do, we provide the parcel of land, provide the needed infrastructure and this attracts industrial activities.
“But, without a doubt, without stable, reliable and clean power, all these initiatives will be in vain. So, to that extent, we are extremely excited,” he said.
Lagos State Governor, Mr. Babajide Sanwoolu represented by his Deputy, Dr Obafemi Hamzat said ensuring adequate power supply in the country is complex because of the attitudes of Nigerians.
Hamzat regretted that out of about 13,000 Megawatts available, the country could only transmit 4,000 Megawatts.
“The issue of our power is complex and why it is complex is because of bad behaviour among all of us, the stakeholders, the distribution companies, generating companies.
“For me, the biggest challenge that we see in our country now is public commentary. We have a lot of people that go out there to just say things, demeaning our institutions and that is the biggest challenge.
“When the international community do surveys, they listen to your news and then you keep killing your country. The truth of the matter is that Lagos and Ogun states are safer than New York. The possibility of being shot in New York is higher than being in Lagos.
Minister of Power, Mr Bayo Adelabu on his part said the event marked a pivotal moment in the collective endeavour to fortify one of the backbones of the industrial landscape of the country.
He noted that the project stands as the first of many projects in the federal government’s light-up initiative to deliver reliable electricity to industrial and heavy user clusters across the country.
Adelabu noted that Agbara is a cluster where dreams are forged, industries thrive and where opportunities are limitless, adding that the ambitious endeavour when completed will bolster the power supply within the industrial estate by ensuring a reliable and uninterrupted flow of electricity to meet the demands of the industries.
Managing Director, Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo disclosed that the event signifies the commitment of the present administration through NDPHC to ensure consistent and reliable power supply to industrial concerns.
He added that the company is the only government-owned company responsible for implementing the integrated power project of the government which aims to enhance electricity generation.
Ugbo said that the primary objective of the initiative was to ensure a consistent, reliable and cost-effective supply of electricity from power plants across the country to the extensive industrial and business clusters in Agbara and across the country.
He noted that NDPHC has successfully constructed about 8 power plants with a combined capacity of approximately 4,000 Megawatts.
Minister of Power, Adebayo Adelabu, yesterday said the Federal Government plans to increase the country’s power generation capacity to at least 20,000 megawatts (mw) from the present 12,522 mw, within the next three years.
The government will also prioritise the implementation of the 2023 Electricity Act as well as universal metering to close over eight million metering gap across the country.
Adelabu made this known yesterday at the opening ceremony of the Nigeria Energy 2023 conference and exhibition ongoing in Lagos.
“In an attempt to set targets for the power sector, we also need to set short-term targets and ensure that between now and the next three years, we can diagnose the issues to a large extent and make a significant impact.
“I found out that the solutions in the power sector are not as difficult as we all believe. I will hasten the pace of fact-gathering and leverage the views and experience of stakeholders to understand the sector and build workable solutions that will transform the power sector in Nigeria.
“You will agree with me that energy is the lifeblood of any modern economy, and Nigeria is no exception. No meaningful economic growth or industrial development can be achieved without power.
“Sustainable Energy is fundamental to fueling our industries, powers our homes, drives economic growth and it is the cornerstone upon which the progress and prosperity of nations are built.
“Nigeria with its abundant natural resources, growing population, and expanding economy, stands on a pivotal stage in its energy journey because the demand for accessible, reliable, and sustainable energy has never been greater than we have now,” Adelabu said.
He also promised to balance energy developments that drive socio-economic transformation, adding that the Power Ministry is focused on ensuring that energy development meets the needs of the present without compromising the ability of future generations to meet their own needs.
He said, “We are committed to identifying the challenges and seeing the inert opportunities in the energy sector in Nigeria. We seek collaborations to implement concrete action plans that will lead us toward a brighter and more sustainable energy future.
“I am confident that the narrative in the power sector, which is confronted with several challenges, will change shortly.
“Nigeria’s power sector was privatised a decade ago to establish the competitive markets intended to improve management and efficiency, attract private investments, increase generation, and provide a reliable and cost-efficient power supply to Nigeria. Although some progress has been made across the power sector value chain, there is still a huge gap, especially in the delivery of adequate and stable power supply to consumers nationwide.
“The truth of the matter is all these programmes that we say we are best at, they remain, an effort is an energy that is reliable and affordable, but cannot reach the end consumers and households, small businesses, institutions, and industries.
The Minister reiterated the need for Nigeria to invest in technology to address the over 8-million-metering gap and ensure accurate billing for electricity consumption.
He said, ” We need to come up with technology to ensure that power connections are monitored, and DisCos are able to improve their collection to 90 percent of distributed power monthly.
“We need to ramp up our investments in collection technology to close the metering gap as much as possible.
All households, companies, government institutions, and industries in Nigeria must be properly metered so that everybody accounts for the power they consume and then pays for the utilization,” the Power Minister said.
The statement was signed by Head, Corporate Communications of EEDDC Emeka Ezeh.
The Company said as a result of the system wide collapse, it is unable to supply power to the five states in its coverage area.
It further noted that it is on standby awaiting awaiting detailed information of the collapse and restoration of supply from the National Control Centre (NCC).
The statement reads: “The Enugu Electricity Distribution Company PLC (EEDC) wishes to inform her esteemed customers of a total system collapse which occurred at 12:40am today, 14th September,2023.
“This has resulted to the loss of supply currently being experienced across the network.
“Due to this development, all our interface TCN stations are out of supply, and we are unable to provide service to our customers in Abia, Anambra, Ebonyi, Enugu and Imo States.
“We are on standby awaiting detailed information of the collapse and restoration of supply from the National Control Centre (NCC), Osogbo.”
Tailors in Aba, Abia State, under the umbrella of ‘Association of Aba Tailors’, have protested what they described as continued exploitation by Aba Power Ltd (APLE), otherwise called Aba Power.
The protesters, about 100, carrying placards, alleged high electricity bill and irregular power supply by the power distribution company.
They alleged that the electricity bills given to them were not in tandem with the power they consumed on a daily basis, weekly or monthly in their shops.
The traders lamented that they were better off when electricity supply in Aba was managed by Enugu Electricity Distribution Company (EEDC). They claimed that their bills were minimal and electricity supply more stable, when compared with the APLE service.
The traders also complained of high-handedness and intimidation by APLE officials, who they accused of using armed soldiers for disconnection/revenue drive, with the aim of creating apprehension among the Aba populace.
One of the protesters, Ugochukwu Iheme, claimed that in their plaza, they were 21, but they received 28 bills.
He claimed that they paid as much as ?18,000 per individual despite running their shops with generators.
However, an official of APLE, who spoke anonymously, debunked the claims of the protesters, saying the firm was making efforts to give customers prepaid meters.
Former Minister of Power, Prof. Barth Nnaji, has assured residents of Aba and other local governments in Abia State, within the Aba ring fence area, of 24 hours power supply from next month.
Nnaji, the chairman of Geometric Power in Osisioma Local Government, who spoke during a courtesy call on Abia State Governor Alex Otti at his Nvosi country home in Isiala Ngwa South Local Government, hailed the governor for being instrumental to the actualisation of the Geometric Power Project.
Nnaji, who announced that the power plant would begin power generation from its plant within the next few months, said the gas turbine, which was taken overseas for servicing after being non-operational for years, had been brought back and reinstalled.
“So, we’re expecting that once we have gas, which will be in the next month or two, we will be able to power Aba, that is, from our own power plant.
“Right now, we’re buying power from the National Grid, this is why power is not stable yet. So, we’ll like to ask Aba people to bear with us that we’re getting there. We’re pretty much there.
“The turbines to power the electricity plant, which were taken abroad for maintenance, have been brought back to the plant and reinstalled.
“We’re now working with the Nigerian National Petroleum Company Ltd (NNPCL) to resolve the issue of gas supply to the plant,” Nnaji, who came with a team of his management to brief Governor Otti on the progress made, said.
He said consumers would get the power at a regulated price set by the regulator, Nigerian Electricity Regulatory Commission (NERC).”
Otti thanked Nnaji for his visit and urged him to do everything possible to ensure Geometric begins power generation from its facility within the promised period.
WITHIN the first ten days of May, this year, Nigeria, once again suffered a series of nationwide blackouts due to a collapse of the transmission grid. Nigerians are, unfortunately, becoming accustomed to these highly unpalatable occurrences and each time they happen, they plant a thought in the mind of Nigerians – regular power supply is still a long way from here.
This particular incident was caused by a multiple tripping that resulted in the failure of a substation owned by Transmission Company of Nigeria (TCN) in Onitsha, Anambra State on May 8, at 2:32 p.m. Seemingly, a growing trend of such failed or burnt transmission sub-station incidents – Lagos, Calabar, Abuja, Enugu and Benin.
Grid collapses occur when there are system disturbances along the transmission grid. Such disturbances could include a massive drop of load from a sub-station that would cause the grid to become unstable. And this is more so in the absence of the spinning reserve that will ordinarily prevent such an occurrence.
In 2019, to date, there has been a total of eight (8) transmission grid collapses – five times in January, once in April and twice in May. Post-privatization, there have been in excess of 100 system collapses.
What is interesting is that shortly after this latest incidence of grid failure, TCN launched an attack on the Distribution Companies (DisCos), accusing them of rejecting load which eventually resulted in TCN requesting that the Generating Companies (GenCos) ramp down their delivery of energy. TCN, in defence of this failure, stated that the DisCos needed to be recapitalized.
It is instructive to note that a host of factors can lead to disturbance in the system, i.e. drop in power generation due to unavailability of gas, disturbances at different points in the transmission infrastructure such as the recent incident in Onitsha, as well as challenges with TCN/DisCo interfaces. Of these causes, the least likely to result in a ‘massive’ load drop is the latter.
Of significant note, the Managing Director/Chief Executive Officer of TCN, Mr Usman Gur Mohammed, on Thursday, February 7, 2019, provided a clear pointer to one of the challenges.
He stated, “The grid, as it is, is not run with spinning reserves, and this is how it was even before we took over. But for the first time, we have done competitive procurement of spinning reserves and we have forwarded to NERC 260 megawatts spinning reserves.
“We are expecting NERC will approve it any time from now because we have done all the consultations leading to the approval. Once NERC approves this and we deploy the spinning reserves, I am going to assure you that system collapse will be a thing of the past.”
Another important challenge which the TCN agrees with, is its present inability to monitor the transmission grid.
Speaking after the last collapse, the TCN MD/CEO, stated that, “If we have a functional SCADA (Supervisory Control and Data) system, it will show clearly what happened on the grid, and that is why we in TCN, deployment of SCADA is not an option, we have to deploy it. Because for us to have modern grid you need to have a functional SCADA for management of the grid.”
SCADA systems are software packages that are used to control and monitor and analyze real-time data. They are mostly used in critical sectors of an economy such as electricity. With a large, centralised grid as the one we have, it almost begs belief that the entire grid is still managed manually. Presently, instructions to the DisCos are manually conveyed through a system of ad-hoc communications. The same goes for allocation of available load to generation companies. Such manual operations preclude the efficiency associated with transparency, exactness and consistency of the SCADA.
The SCADA basically, ensures that there is real time exchange of information between remote stations and the National Control Centre. Without this kind of bird’s eye view of the whole network, it is almost impossible to apportion culpability or address service and infrastructure-specific issues like load rejection, damaged lines, etc.
As the TCN MD/CEO said in an interview published on August 28, 2018, “Nigeria has failed attempts to have a functional SCADA three times. The last one was between 2006 and 2007, I was in the Project Management Unit (PMU) of TCN when the World Bank financed it and Nigeria spent about $46 million. But the SCADA that was completed had significant deficiencies that it cannot see more than 40 per cent of the network.”
Without the benefit of this sight over the network, how was TCN able to arrive at the conclusions of its present blame game?
Most analysts agree that the transmission grid in its present form – riddled with aging and obsolete critical infrastructure – is so massive and too large to manage as a single entity and there have been several recommendations that it should be decentralised. In fact, TCN, consistent with international best practices and efficacy, has been licensed into Independent System Operator (ISO) and Transmission Services Provider (TSP). Unfortunately, in a bid to continue the “empire” syndrome associated with government agencies, TCN continues its failure to implement this critical separation, a fundamental requirement for promoting efficiency in the transmission of energy.
While searching for possible solutions to our national electricity supply situation, this separation may just be one requirement that should be expeditiously implemented. As it is, all plans of TCN, to date, indicate its interest in becoming bigger. But as we all know, bigger does not necessarily mean better. So, an important question is, “Is TCN, doubling also as System Operator and Market Operator – becoming federal government’s biggest enterprise with associated inefficiencies. Thereby, constituting the weakest link and holding back the power value chain.”
When you combine the continuous calls by the TCN for Discos to “recapitalise”, as well as the recent interest by TCN to venture into power distribution, despite not being an electricity distribution licensee, the cause for concern can only be more urgent.
The distraction associated with TCN clamoring for DisCos access to additional funding, while germane, ultimately, results in TCN taking its eyes off the critical day-to-day requirements necessary for the successful operation of the transmission grid. Indeed, for an entity that has wheeled no more than 4,557MW (7th February, 2016), in its history, TCN rather than talking about a wheeling computer simulation of 8,100MW needs to step up its game and come into the reality of playing the critical role that is required of it along the value chain.
President Muhammadu Buhari has restated his administration’s commitment to boost business and investment opportunities by reviving train and railway services, building roads and improve on the Power sector.
The President spoke yesterday at the 59th annual general meeting (AGM)/Conference of National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) in Kaduna, with the theme: Regional Integration in Africa: Potentials for Growth and Expansion of Nigerian Businesses.
President Buhari, who was represented by Jigawa State Governor Abubakar Badaru, said his administration was re-strategising more effective ways to tackle security challenges in the country.
The President assured the nation that the Federal Government would do everything possible to ease doing business in Nigeria and further make the country the investment destination for investors from all over the world.
He added: “When this administration came on board in 2015, there were challenges of railway maintenance, power and other issues. Between 24 and 26 states could not pay their workers’ salary. That was the picture as at May 29, 2015.
“But through God’s intervention, we continued work on over 300 roads that we met, while we awarded other 100 plus roads. Some are completed; some are ongoing. This is to ease transportation and movement of goods and services. Railway work is ongoing to move cargoes from one place to another; power is also improving.
“We are improving the ease of doing business to attract investment, in which Kaduna State ranks number one, and Jigawa ranks number two. As a government, we don’t want a repeat of what happened in Angola and Venezuela. So, we are doing everything possible to diversify our economy.”
The outgoing NACCIMA President Iyalode Alaba Lawson said the AGM/conference provided the leadership, members and other stakeholders of NACCIMA the opportunity to discuss in-depth issues about the chambers.
She said: “The AGM/conference is an opportunity for us to share experiences as we work together to move the nation’s economy forward.
“NACCIMA understands the importance of synergy between our associations and stakeholders in the local and international business environment; hence the conference is an avenue to foster better collaborations and viable networking opportunities for our entities.”
