TheNewsGuru

Tag: Power Sector

  • Reps launch investigation into $16bn previous administrations invested in power sector

    Reps launch investigation into $16bn previous administrations invested in power sector

    The House of Representatives on Thursday resolved to Investigate a whooping $16 Billion spent on the power sector under power sector reforms by all previous federal administrations.
    This followed the adoption of a motion by Hon. Sada Soli on the matter on the floor of the House at plenary.
    Soli while debating the motion noted that the Power Sector Reform Act was aimed at removing the ineffectiveness of the sector in order to transform it into a more efficiently managed sector.
    He further noted that an investigative hearing conducted by the House of Representatives in 2008 over the alleged spending of about $16 Billion US Dollars on the power sector
    He pointed out that power generation target was that by 2020, the nation would have achieved 40,000 MW based on the alleged investments in the proposed power plants, but till date such generation target has eluded the nation.
    He said: ” alarmed that the contracts awarded of over $50 million dollars to companies that did not exist and that two billion dollars ($2bn) worth of energy contracts were also awarded without bidding and during process”
    He also re-echoed the lamentation of the President to the effect that such huge sums of billions of dollars could be spent without commensurate results in the generation, transmission and distribution of power supply in the country..
    He expressed worries that to date, no person,company or agency of government involved has been prosecuted despite the perennial power supply and its associated socio-economic consequences for the nation.
    He added that cognizant of the provisions of sec 88 and 89 of the provisions of the 1999 Constitution the National Assembly has the mandate to expose corruption,inefficiency and waste in the execution and administration of laws within it’s legislative competence.
    Consequently, the House presided by the Speaker Hon. Femi Gbajabiamila put the matter to voice vote and the lawmakers voted for it.
    He therefore directed that a comprehensive investigation be launched into the matter by a yet to be constituted ad-hoc committee which report is expected into the House in six weeks.
  • NNPC boosts gas supply to power sector by 88.89%

    NNPC boosts gas supply to power sector by 88.89%

    The Nigerian National Petroleum Corporation (NNPC) increased the supply of gas to the power sector by 88.89 per cent between January 2017 and January 2018.

    A press statement by the NNPC Spokesman, Mr Ndu Ughamadu, in Abuja on Sunday, said the information was reported in the corporation’s monthly Financial and Operations report for January 2018.

    Ughamadu quoted the monthly report as saying that gas-to-power supply as at January 2018 stood at 731 million metric standard cubic feet (mmscf) per day as against 387mmscf/d in January 2017.

    “An average of 731mmscf/d of gas was sent to over 20 domestic thermal power plants in the month of January 2018.

    “This generated a thermal power output of 3,076 megawatts (mw) to the national grid, representing 76.7 per cent of the total national power generation,” he said.

    According to him, an additional 365mmscf/d of gas was supplied to the industrial sector to power over 50 companies in the period under review to boost the nation’s economy.

    “The total gas production for the month was put at 8,169mmscf/d out of which 14 per cent was supplied to the domestic market, 43 per cent for export, while 31 per cent was re-injected and the balance flared.

    “The 30th edition of the monthly Financial and Operations report gave the total crude processed by the local refineries (Kaduna Refining and Petrochemical Company (KRPC) and Port Harcourt Refining Company (PHRC)] for the month of January 2018 as 204,877MT.

    “KRPC accounted for 183,022MT while a total of 21,855MT was processed by KRPC,” said the report.

    It stated that production by the two refineries during the period translated into a combined yield efficiency of 89.97 per cent as against the 88.99 per cent in December 2017.

    The report said in the month under review, 1,463.66million litres of PMS and 33.79million litres of DPK were supplied into the country through the Direct Supply Direct Purchase arrangements.

    “The corporation’s supply of PMS into the country during the period was far above the normal daily supply of 35 million litres per day to ensure products availability nationwide.

    “The report reiterated that NNPC was inching closer to choosing financiers for its refineries with a view to achieving a 90 per cent capacity utilisation per stream day before the end of 2019,” continue the report.

    The report listed crude oil pipeline vandalism among the biggest challenges that plagued the downstream operations of the corporation in January 2018, which put the corporation at disadvantaged position.

    It said during the period under review, 194 pipeline points were vandalised, with PHC-ABA and ABA-Enugu pipeline segments of the network accounting for 187 points or 86.57 per cent of the affected pipeline.

    The report gave the average international Brent crude price for January 2018 as 69.08 dollars per barrel as against 64.37 per barrel in December 2017.

    The report said that over the last 12 months the crude oil price had risen by about 26.57 per cent.

    It stated that the continuing efforts of OPEC and non-OPEC producers to stabilise the market as well as improving oil demand and other measures were responsible for the stability in the price of oil.

     

  • N11tn electricity fund: Omokri blasts SERAP, says ‘Jonathan privatized power sector, saved billions from sale of assets’

    N11tn electricity fund: Omokri blasts SERAP, says ‘Jonathan privatized power sector, saved billions from sale of assets’

    Sequel to report released on Wednesday in Lagos by the Socio-Economic Rights and Accountability Project, SERAP, indicting the successive administrations of former presidents Olusegun Obasanjo (1999 – 2007), Umaru Musa Yar’Adua (2007 – 2010) and Goodluck Jonathan (2010 – 2015) of embezzling N11 trillion meant to provide regular electricity supply in the country, an aide to former President Jonathan has said the immediate past Nigerian leader privatised the power sector thereby saving billions for the country in the process.

    TheNewsGuru.com reports that the report stated that: “The total estimated financial loss to Nigeria from corruption in the electricity sector starting from the return to democracy in 1999 to date is over Eleven Trillion Naira (N11 Trillion Naira). This represents public funds, private equity and social investment (or divestments) in the power sector. It is estimated that may reach over Twenty Trillion Naira (N20 Trillion Naira) in the next decade given the rate of Government investment and funding in the power sector amidst dwindling fortune and recurrent revenue shortfalls.”

    The 65 pages report launched on Wednesday at the Westown Hotels, Lagos is titled: From Darkness to Darkness: How Nigerians are Paying the Price for Corruption in the Electricity Sector.

    The report presented to the media by Yemi Oke, Ass. Professor, Energy/Electricity Law, Faculty of Law, University of Lagos, discloses that “the country has lost more megawatts in the post-privatisation era due to corruption, impunity, among other social challenges reflected in the report.”

    The report shows that “The much-publicised power sector reforms in Nigeria under the Electric Power Sector Reform Act of 2005 is yet to yield desired and/or anticipated fruits largely due to corruption and impunity of perpetrators, regulatory lapses, and policy inconsistencies. Ordinary Nigerians continue to pay the price for corruption in the electricity sector–staying in darkness, but still made to pay crazy electricity bills.”

    However, Omokri, in a statement advised SERAP to conduct a thorough finding to properly ascertain who (among the three former leaders) embezzled monies meant for providing improved electricity supply to Nigerians.

    Omokri revealed this in a statement he signed and released on Thursday on behalf of the former leader.

    The statement reads: “My attention has been drawn to the story ‘Obasanjo, Yar’Adua, Jonathan wasted N11tn on electricity –SERAP’ published most prominently in The Punch newspapers on August 10, 2017 and less prominently in other papers.

    While I cannot speak for others, I can certainly say that as touching former President Goodluck Jonathan, the story is false and is the fruit of the laziness of the researchers who could have taken advantage of the Freedom of Information Act that Dr. Jonathan signed into law in May, 2011 to get records and data from relevant government ministries, departments and agencies that would have given them a fuller picture instead of the narrow view they have.

    Former President Jonathan could not have wasted ₦11 trillion or any other amounts of money for the simple reason that he was the Nigerian President who privatized the Power Sector beginning on August 26, 2010 when he launched the roadmap to power sector reforms and culminating on October 16, 2012 when the winning bids were announced for the sale of power generating and distributing companies.

    SERAP may do well to remember that on Monday the 30th of September 2013, at the Aso Rock Presidential Villa, Former President Jonathan successfully handed over the bulk of Nigeria’s Power Infrastructure to successful private sector bidders after they had made payments for the assets they acquired.

    At that event, he said “I congratulate our new owners who have taken over the engines and cables that are expected to drive not just the electricity industry but also the socio-economic well-being of the nation”.

    In total, the Power Holding Company of Nigeria was split into six generation and 11 distribution firms, all sold separately, for about $2.5 billion for which the Jonathan administration received much deserved praise.

    In fact, rather than wasting money, the Jonathan administration generated money for the federation from the sale of these assets which were seen to be transparent and followed global best practices.

    Between May 6th 2010 when he was first sworn in as President to May 29, 2015 when he handed over power, the budget for the ministry of power under Dr. Jonathan was not up to ₦400 billion in total for the simple reason that his administration had succeeded in transferring most of Nigeria’s power assets, liabilities and personnel from the public sector to the private sector.

    As such, it is evidently clear that any allegations that the Jonathan government wasted trillions is not a well thought out allegation at best and is a figment of the imagination of the makers at worse.

    I do hope those papers which published this false report against the person of former President Jonathan and the administration that he led will be honorable enough to set the records straight for posterity”.

     

  • Britain to support power sector reform in Nigeria

    British High Commissioner to Nigeria, Mr Paul Arkwright, said the British Government would support power sector reform in Nigeria.

    Arkwright stated this on Tuesday in Abuja in an interview with newsmen after visiting Mr Babatunde Fashola, the Minister of Power, Works and Housing.

    He said that the visit was to identify areas of collaboration with the Nigerian Government, especially in infrastructure and power sector.

    He said that the idea was to support President Muhammadu Buhari’s agenda on diversification, adding that no meaningful progress could be made without effective power sector.

    The envoy said that the meeting was also for British companies to take advantage of the opportunities available in Nigeria’s power sector.

    He said that rural electrification was another issue discussed at the meeting with a view to using UK expertise in solar energy to address rural electrification problem in the country.

    According to him, getting transmission line through hundreds of miles to rural communities is not really feasible, so our discussion centred on the use of solar energy for such communities.

  • AfDB approves $155m loan for Nigeria’s power sector

    The Africa Development Bank, AfDB says it has approved a loan of $155m for Economic and Power Sector Reform Programme in Nigeria.

    The Senior Communications Officer of AfDB, Fatimah Alkali, in Abuja on Friday said that the loan became effective in October, 19, 2012.

    Recent media reports had indicated that there might be a face-off between the Senate and the Federal Government on plans to secure a facility of 174 million dollars from AfDB.

    The media reports also revealed that part of the security for the loan was the handing over the management of Transmission of Company of Nigeria to AfDB.

    The reports hinted that AfDB would second three of its staff to take over the management of TCN for six months and would terminate the appointment of current management of TCN.

    To this end, the AfDB, in its statement, said that the appointment of the management TCN was a prerogative of the Nigerian authorities and not that of AfDB

    It stated that the loan was aimed at improving power systems, business environment and sustaining growth through sound macroeconomic policies and budget priorities.

    AfDB said the amount was fully disbursed in two tranches on March 1, 2013 and December 21, 2015, respectively.

    According to the statement, the programme was designed to benefit the entire population of Nigeria in terms of extended access to more reliable supply of electricity at reduced rate.

    It said, “The EPSERP will have a major positive impact on the private sector through the substantial reduction in the cost of doing business for all economic sectors, particularly in the formal and informal manufacturing and service activities which are seriously constrained by the power supply gaps.“

    AfDB also said that the bank had also released one of its staff to support the government in its power sector reforms programme for 12 months on September 19, 2016

    It said it was committed to assisting Nigeria to achieve the objectives of its reforms in the power sector in accordance with the priorities already approved by the authorities.

     

    NAN

  • Nigeria’s power sector operated in errors – Saraki

    Nigeria’s power sector operated in errors – Saraki

    Senate President, Bukola Saraki on Tuesday said there had been errors in the privatisation process and the model by which the power sector is being operated.

    Saraki also declared that the power sector has failed and nobody was willing to “tackle the issue headlong.”

    Addressing his colleagues on resumption of plenary, after a three-week break at the red chambers, he ascribed the poor performance of the power sector to errors in the privatisation process.

    Faulting the model through which the power sector is being operated, the Senate President said lawmakers are determined to find a lasting solution to the “crippling power deficit.”

    According to Saraki,“Distinguished colleagues, before we left for the break, myself and a select few met with stakeholders in the power sector to get an understanding of why no progress has been made thus far, despite the best intention; and the revelations were mind-boggling.

    “There had been errors in the privatisation process and the model by which the power sector is being operated – whether at generation or distribution – will never take us where we need to be. It has failed and nobody appears willing to tackle the issue head-on in order to bring about a permanent resolution.

    “I have mandated the senate committee on power to continue the consultation with the relevant parties to forge a path to solving our crippling power deficit. After all, if we are going to drive Nigerian industry, we need to resolve this and fast.”