Chief Timipre Sylva; Secretary-General of OPEC, Mohammed Barkindo; and NNPC’s GMD, Mele Kyari at NLNG’s Exhibition stand, Nigeria Oil & Gas Conference (NOG) 2022
All Posts in "Day: July 6, 2022"
NCP Approves Zungeru Power Plant Concession Plan
The National Council on Privatisation (NCP) has approved the strategy and workplan to fast-track the concession of Zungeru Hydroelectricity Power Plant (ZHPP) in Wushishi Local Government Area of Niger State.
The approval is subject to any further development from Ministry of Power,Ibeh, Uzoma Chidi, Head, Public Communications of Bureau of Public Enterprises,said in a statement.
It said that the key objectives of the plan’s concession include leveraging the private sector access to finance and reducing reliance on government budgetary allocation to fund the China EXIM Bank loan; there is need to ensure that a timely implementation programme is adopted hence, a fast-track transaction process is being recommended.
It added that the approved fast-track transaction process will enable the Bureau of Public Enterprises (BPE) work with the Joint Technical Committee (JTC), chaired by the Chairman, Technical Committee of the NCP with members drawn from the Office of the Vice President (OVP), Ministry of Power, Ministry of Finance, Ministry of Water Resources, Bureau of Public Enterprises (BPE), Accountant General of the Federation to review and address all issues including approvals and regulations needed to proceed to the next phase of the transaction.
According to the statement,the fast-track transaction plan includes reduced time frame for obtaining approvals for key stages of the transaction process.
The aim is to get value for the transaction within a short time,it said.
Fossil Fuel Stays- FG
Nigeria wont abandon fossil fuel despite mounting pressure on countries to deemphasize investments on same to pave way for the development of cleaner energy, Chief Timiprye Sylva, the Minister of State for Petroleum Resources,has said.
He disclosed this on Tuesday at the ongoing 2022 edition of Nigerian Oil and Gas Conference and Exhibition NOG 2022 with the theme: ‘Funding the Nigerian Energy Mix for Sustainable Economic Growth’, in Abuja, where he also said that fossil fuel will always have a share in Nigeria’s energy mix for the foreseeable future.
He explained that the move was to promote gas usage as alternative to petroleum products and to satisfy In-country demand for natural gas.
“For us in Nigeria, fossil fuel will always have a share in our energy mix for the foreseeable future, and we will not at this time abandon our fossil fuels. We have however, adopted our vast gas resources across the country as transition fuel. With a proven gas reserve of over 200 Trillion Cubic Feet (TCF), the right policies and regulations to expand the utilization of her gas resources, Nigeria has huge potentials to become an industrialized nation.
“It is very important to note that this shift to gas underscores President Muhammadu Buhari’s seriousness and determination in the development of Nigeria’s vast gas resources, not just as a major exporter but also as a major gas consuming nation” he said.
He assured that President Muhammadu Buhari will continue to strengthen the gas value chain as it is vital in transforming the economy of the country.
He added that a lot is being done by the federal government to position gas as the alternative to fossil fuel stressing that Gas Expansion Programme (NGEP) to boost utilization of natural gas.
“In January 2020, I inaugurated the National Gas Expansion Programme (NGEP) as a mechanism to boost utilization of natural gas in the short and medium-term. The Objective of the NGEP is to promote gas as an alternative fuel source to petroleum products. “This will also stimulate in-country demand for gas and thus increase domestic gas production and utilization. This is also part of the Federal Government’s bid to key into the global shift from crude oil to gas.
“Under the NGEP, the Autogas was constituted as a subcommittee to drive the adoption of Autogas as an alternative fuel for Nigerians. This initiative comes at a very crucial time when the deregulation of petroleum products will cushion the effects of rising petrol costs, hence helping to prevent energy crisis.
“Previous studies have presented Nigeria as an energy poor country. 62% of Nigerians lack access to electricity and 90% lack access to modern cooking fuels. Our government is working on many initiatives to tackle these challenges, one of which is the gas to power Initiative aimed at minimizing gas flaring and harnessing our gas resources to electricity to meet Nigeria’s electricity demands.
“It is very worthy to note that the Federal Government is providing a lot of enablers, which are needed to realise the full potential of the gas sector. This includes the development of critical infrastructures and systems such as the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, the Nigerian Gas Transportation Network Code (NGTNC). The Nigerian Gas Transportation Network Code (NGTNC) provides streamlined operational and fiscal terms for third-party use of gas distribution and transmission infrastructures.
“The Petroleum Industry Act further provides new and attractive terms for participation in the Nigeria gas sector. These are supply-side enablers, which are capable of eliciting commercial interests and investments in gas utilisation.
FG Moves To Establish New Nigeria Shipping Line
The Federal Government has commenced moves to establish of another shipping in the nation’s maritime industry.
The Minister of State for Transportation, who gave the hint on Monday,in her address at the ongoing 16th international maritime seminar for judges organized by the Nigerian Shippers’ Council,said establishment national of another shipping line twenty seven years after the previous one was liquidated, will ensure maximum exploitation of the potentials in Nigeria maritime industry.
She lamented that most of the nation’s maritime transportation is conducted by foreign shipowners, thereby limiting the economic benefits accruable to the nation and the sub-region in areas such as creation of jobs, freight and insurance earnings.
She further said: “it is in the above regard that the development of a national fleet becomes imperative. The present administration is looking into ways of encouraging the establishment of a private sector-driven national shipping line to ensure maximum exploitation of the potentials in our maritime industry. A ministerial committee has been working on this important initiative and I look forward to having their concrete recommendations for immediate implementation.”
Ogoni Clean Up: NASS Summons Minister, HYPREP Officials
The National Assembly Joint Panel on Host Communities has summoned the Minister of Environment, Mohammed Abdullahi and Management of Hydrocarbon Pollution Remediation Project (HYPREP) over the slow pace of clean up Ogoni land.
The lawmakers expressed disgust over the slow speed of remediation work on Ogoniland despite payment of $1 billion for the project.
The Ogoni cleanup, supported by the United Nation Environment Programme (UNEP), was flagged off in June 2016 by Vice President Yemi Osinbajo, with fanfare and so much enthusiasm from both the Nigerian authorities and the people in the Niger Delta.
The chairman of the National Assembly Joint Panel, Degi Eremienyo,expressed that the refusal of the officials of Ministry of Environment to appear before the Committee was an indication that they are concealing information about Ogoni clean up.
He said the Ministry has been invited three times to brief the National Assembly members about the clean up, which the officials of the Ministry invaded.
He added: “I express my displeasure totally, frown at the attitude of the minister and also the projector coordinator in demonstrating constant disrespect, disregard for the institution of the parliament because like I said, this is not the first invitation. We had invited them about three times and they have evaded engagement with the parliament.
“For me it is an appearance of concealment of information to us, to incapacitate us to go for effective discharge of our duties as a parliament to oversight the activities of HYPREP.It also shows the appearance of incompetence, appearance of bad governance, it shows appearance of insensitivity. We will not take this from the executive. Particularly with the Ministry of Environment that is saddled with the responsibility of overseeing the activities of running the affairs of hyprep.
“We commend the federal government for conceptualizing this idea as a follow up to the United Nations (UN) report on the cleanup of ogoniland, and of course the story of degradation and pollution of the Niger Delta is an old story for it is always fresh. It is always fresh because the situation and experience continues unabated in the Niger Delta. It is very unfortunate.This project is very important to the people of the Niger Delta, it is a pilot project that is supposed to be replicated in the other part of the Niger Delta but apparently it is not working the way it is expected to work.
FG Launches Platform To Boost Nigeria’s Electrification
The Ministry of Power, European Union and the German government have launched the Nigeria SE4ALL. 3.0 version platform to improve electrification planning using the mini-grid supply in Nigeria.
The Minister of Power, Abubakar Aliyu, while launching the new web platform, noted that access to digital, ground truth data is key to increase the electrification rate in Nigeria.
The Nigeria SE4ALL central data management system portal,Aliyu said, will provides a work based data that will assist utility operators, regulators, policy makers as well as critical stakeholders involved in the electrification planning and implementation in Nigeria.
According to him,the launch of the new version has become necessary because of the successes the previous versions have recorded and the obvious gap which has necessitated the need for a re-launch of an improved and upgraded version.
He added that the launch is a key milestone as it aims to offer a more accurate data that will assist Nigerians develop a more robust business case in her effort to invest in the power sector.
Speaking, Ms. Inga STEFANOWICZ, Head of Green and Digital Economy at the European Union Delegation to Nigeria and ECOWAS at the delegation expressed her delight about the website.
“The European Union is happy to have supported the government to develop the new Nigeria SE4ALL web platform as collected data and the new tools will be used to serve as pre-feasibility for private sector investment, allow development of policies and frameworks as well as monitoring policy targets,” she added.
Chargé d’affaires of the German Embassy to Nigeria, Mr. Martin Huth emphasized the import of the platform for the energy sector,saying it will assist the Nigerian government in improving the regulatory framework for the set targets of electrifying Nigerians and will provide the private sector with necessary information for the business plans for investments.
In his remarks,the Acting Director Renewable Energy and Rural Power Access Department Federal Ministry of Power, Engr. Abubakar Ali Dapshima,said that the launch of the platform has made available primary and empirical data available for key investors in the mini-grid, renewable energy, energy efficiency sub-sectors of the Nigerian Electricity Supply industry , (NESI).
Electricity Consumers Excited As FG Dissolves Boards Of Five DisCos
Electricity consumers under the Nigeria Consumer Protection Network,has commended the Federal Government for dissolving boards of five electricity distribution companies on account of their financial insolvency.
Kunle Olubiyo,the president of the group,said in a statement said that the present efforts to clean up the mess and free the Economy held by its jugular by the non performing power companies was a welcome development.
He lamented that the mid term review ought to have taken place five years into the privatisation exercise, but it was not done across board.
He added :”The open book review,service level agreement ,mass metering,investment in network improvement and overhaul,ATC & C losses ,governance structure,failed in all benchmarked global best practices and key performance indicators .As against investment in immediate, medium and long term , what we had is rent seeking , profiteering and lack Fiscal responsibility and much needed discipline.
“No sector can survive if and where there are no sanctions for Impunity and no consequences for Infractions .In the prevailing circumstances ,we are on the same page with relevant stakeholders in the present efforts to clean up the mess and free the economy held by its jugular by the non performing utilities”
Besides,a professor of energy law,Yemi Oke,reiterated that the crisis in the power sector would consume more banks under heavy burdens of power-sector acquisition financing/lending.
According to him,eighty percent of the power distribution companies in Nigeria are technically insolvent, hence the problems of the power sector may continue.
He added: “We’ll continue to experience an average of 5-6 national Grid/system collapses per annum”
The Federal government had Tuesday announced the restructuring of five electricity distribution companies, (DISCOs)
The Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh. disclosed this in a statement
They explained that the announcement followed Fidelity Bank’s activation of the call on the collaterised shares of KEDCO, BDEC, and Kaduna Electric over their inability to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise
The affected companies are Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED)..
The Asset Management Corporation of Nigeria (AMCON) they stated, would be a placeholder board for IBEDC in a temporary capacity while the PHED undergoes restructuring to prevent its imminent insolvency.
They added that the new boards for the affected discos have been approved and the bureau was collaborating with the Central Bank of Nigeria (CBN) and the Ministry of Power to ensure no service disruptions during the transition.
“Fidelity Bank’s action is a contractual and commercial intervention and is between the Core Investors in the DISCOs and the lender. BPE is involved because of the 40% shareholding of Government in the DISCOs. Fidelity Bank has informed us that the new Board members of the affected DISCOs will be as follows:
– Kano DISCO: Hasan Tukur (Chairman), Nelson Ahaneku (Member), Engr. Rabiu Suleiman (Member)
– Benin DISCO: KC Akuma (Chairman), Adeola Ijose (Member), Charles Onwera (Member)
– Kaduna DISCO: Abbas Jega (Chairman), Ameenu Abubakar (Member), Marlene Ngoyi (Member)”
“BPE has nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin), and Umar Abdullahi (Kaduna) as independent Directors to represent Government’s 40% interest in the three DISCOs respectively, during this transition.We are engaging with the Central Bank of Nigeria (as the banking sector regulator) to ensure an orderly transition and to ensure that Fidelity Bank does not hold the DISCOs’ shares in perpetuity.
“It is envisaged that the majority interest in the entities would be sold to capable private sector investors willing and able to re-capitalize and manage the entities efficiently.We have also received assurances that Fidelity Bank will participate fully in all the ongoing market initiatives aimed at improving the sector (e.g. National Mass Metering Program)”
The statement also disclosed that in the interim, NERC and BPE met on an Emergency Basis and activated the Business Continuity Process and have appointed interim Managing Directors in the affected DISCOs.
Kano Disco – Ahmad Dangana, Benin Disco – Henry Ajagbawa, Kaduna Disco– Yusuf Usman Yahaya
Also, with the takeover of Ibadan DISCO by AMCON, the BPE has obtained approval from NERC to appoint Kingsley Achife as the interim Managing Director.
In a temporary capacity the leadership of AMCON will be a placeholder Board for the Ibadan franchise (Ahmed Kuru – Chair, Eberechukwu Uneze – Member, Aminu Ismail – Member). Oluwaseyi Akinwale will represent the interest of Government on the Board alongside the DG of BPE.
“Lastly, we are re-structuring the Management and Board of Port Harcourt DISCO to forestall the imminent insolvency of the entity.As a condition for support to the entity to meet its market obligations, Iboroma Akpana will take over as the Chairman of the Board. Emmanuel Okotete, Eyo Ekpo, Ismaila Shuaibu and the DG of BPE will form the interim Board. Mr. Benson Uwheru will take over as the Managing Director of PHEDC as part of the changes.
“Government will support the activation of Emergency funds through the Nigerian Electricity Market Stabilization Facility to support the entity while it goes through restructuring and repositioning to serve the citizens of the franchise area better.”
Meanwhile,the management of Kaduna Electric has urged its staff to remain calm and go about their regular schedules as the firm’s offices would remain functional immediately.
Barkindo’s Death Great Loss To Nigeria -Kyari
Group Managing Director of Nigeria National Petroleum Company,Mele Kyari,has mourned the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Muhammad Sanusi Barkindo, describing his death exit as a great loss to Nigeria
Kyari announced Barkindo’s death in the early hours of Wednesday.
In a statement on his verified twitter handlle, @MKKyari, at 4.32am Wednesday, the NNPC GMD wrote:”We lost our esteemed Dr Muhammad Sanusi Barkindo. He died at about 11pm yesterday 5th July 2022. Certainly a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community. Burial arrangements will be announced shortly,”
CBN Urges Banks To Embrace Open Banking
The Central Bank of Nigeria (CBN) has advised banks and other financial institutions to embrace opportunities in open banking to drive financial inclusion in the country.
Aishah Ahmad, Deputy governor, financial systems stability directorate, CBN, who said this at the Chartered Institute of Bankers of Nigeria (CIBN) Advocacy Dialogue Series 6 on Tuesday in Lagos,said open banking held enormous potential for the financial service industry.
The apex bank,she said,had developed the regulatory framework on open banking in Nigeria, which was issued in February last year,adding that it became expedient for the CBN to provide an appropriate framework and guidelines to regulate the practice, having observed the green integration of banks and other financial institutions with innovation in the financial services space and the increased adoption of API-based integration in the industry.
According to her,the CBN, in May 2022, issued the exposure draft of the operational guidelines for open banking in Nigeria to the public for comments.
“It is important for us to note that the framework on open banking recently issued by the CBN is designed for banking and other financial services such as payment and remittance services, collection and disbursement,” she said.
She explained that the framework was aimed at identifying data that might be exchanged and corresponding API services that might be implemented and used by the participants.
She said, “while the framework specifies the role of stakeholders, industry participants are permitted to develop API that must be open, reusable, interoperable, robust and user-centric, and overall be secure.
“The opportunities presented by open banking are diverse and many; it serves to enhance financial inclusion, encourage improvement and promote efficiency in the financial service industry.These are some of the compelling cases for the implementation of open banking in Nigeria, which convinced the CBN that it is the right way to go.’’