Energy
Japan invested $500 million to boost electricity along Lagos-Ogun industrial corridor, says Adelabu
he Japanese International Cooperation Agency has invested $500 million to boost power supply in the Ogun and Lagos axis.
The Minister of Power, Adebayo Adelabu, made the disclosure on Friday when Ogun State governor, Dapo Abiodun, paid him a courtesy visit.
Mr Adelabu, in a statement on Friday in Abuja, by his Special Adviser on Strategic Communication and Media Relations, Bolaji Tunji, described the agency’s investment as a boost to the Nigerian economy.
Mr Tunji quoted Mr Adelabu as saying that the gesture was meant to strengthen transmission infrastructure along the Lagos–Ogun Industrial Corridor.
According to him, the investment will particularly cover Agbara, Mowe and Sagamu industrial clusters.
“We also have the Presidential Power Initiative projects, the highlights of which include boosting power transmission infrastructure within and outside the Ogun industrial corridors.
”Also ongoing are some Transmission Company of Nigeria’s projects aimed at enhancing power supply to Ogun. All these will involve building additional power transmission substations and upgrading existing ones as well as reconductoring existing weak high voltage power lines and new extensions for capacity strengthening and expansion,” Mr Adelabu said.
The minister urged the governor to collaborate with the ministry to impress it on gas pipeline operators to improve the pipeline infrastructure passing through the state to boost the pressure quality and quantity of gas supplies to power plants and industries within the state.
The minister promised to undertake an official visit to the state as requested by the governor to enable him to meet with the industrialists within the corridors for possible areas of cooperation and collaboration.
In his remarks, Mr Abiodun applauded the minister for the overwhelming noticeable improvements in power supply across the country.
He also commended Mr Adelabu on the ongoing turnaround being witnessed in the nation’s power sector and enjoined him to sustain the momentum, which he said would further galvanise the economy.
He stated, “I came to visit but I have to commend you for performing wonders in the power sector. It’s to encourage you to sustain the noticeable improvement. As part of my visit, I want to make a special appeal to you for special attention to further enhance power infrastructure and supply to Ogun which is a key industrial hub in the country.
” I am aware that since your assumption of duty, you have visited some major industries and power plants in the state such as Momas Electricity Meters Manufacturing Company, Coleman Wires and Cables and Splendor Electric, producers of Porcelain high voltage electric insulators. As well as the Olorunsogo Niger Delta Power Holding Company/Nigerian National Integrated Power Project power plant in Papa Lanto. However, we have a lot more to show you.”
The governor said that the minister’s visit to Ogun State would enable him to meet with industrialists in the state.
Energy
FG to invest N122bn in six gas companies to improve energy infrastructure
The federal government has approved the investment of N122 billion in six gas infrastructure companies.
Ekperikpe Ekpo, minister of state for petroleum resources (gas), spoke in Abuja on Monday.
In a statement by Louis Mbah, the minister’s spokesperson, the midstream and downstream gas infrastructure fund (MDGIF) championed the approval, which signifies a significant milestone in Nigeria’s quest for energy security and gas infrastructure development.
The six beneficiary companies are Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited.
Ekpo, who also serves as the chairman of the MDGIF governing council, said the move is a breakthrough in Nigeria’s gas revolution and “a testament to the government’s commitment to harnessing the country’s gas resources for socio-economic growth”.
“This partnership between the public and private sectors will transform Nigeria’s gas industry, accelerating our journey towards energy security, industrial growth, and economic prosperity,” Ekpo said.
The minister commended President Bola Tinubu’s efforts to foster business relationships and partnerships to achieve Nigeria’s energy security objectives.
He said the selection process was rigorous, with each company chosen for its exceptional performance and dedication to Nigeria’s gas development.
“The MDGIF is a catalyst for investment and bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects,” Ekpo said.
“We urge the beneficiaries to utilise these funds judiciously, maintaining the same zeal and dedication that earned them selection as the first batch of MDGIF beneficiaries.”
He said additional batches of beneficiaries would be selected in subsequent rounds.
Ekpo emphasised that the MDGIF investment aligns with the goals of the ‘Decade of Gas’ initiative, aimed at harnessing Nigeria’s gas resources for socio-economic growth.
Energy
Electricity trading company seeks licence renewal amid $2bn annual revenue
The Nigerian Bulk Electricity Trading Plc has requested the renewal of its operating licence from the Nigerian Electricity Regulatory Commission, citing its contributions to the power sector.
NBET’s current licence is set to expire on November 21, 2024, and it is seeking a five-year renewal.
The request was made during a public hearing organised by NERC in Abuja on Thursday.
Speaking at the hearing, NBET Managing Director, Johnson Akinnawo, highlighted the company’s achievements.
“NBET has transparently managed a contracts portfolio with an annual trading volume over $2bn,” he said.
Akinnawo also emphasised the company’s role in attracting nearly $1bn in greenfield power generation investment and managing the privatisation of Power Holding Company of Nigeria assets.
He underscored NBET’s critical role in facilitating private sector investment through Power Purchase Agreements and Vesting Contracts.
“The execution of these agreements paved the way for about $2.5bn in investments in Gencos and Discos,” he noted, adding that NBET envisions a self-sustaining electricity market driven by private investments.
NERC Commissioner, Dafe Akpeneye, acknowledged the importance of stakeholder input in the licence renewal process.
“The commission doesn’t believe that we know it all. Given how the industry is changing and evolving, it’s important that we get critical stakeholders’ input into NBET’s request,” he said.
The Managing Director of Azura Energy, Edu Okeke, expressed support for extended licence renewal, stating, “No investor will agree to invest long-term if NBET licence is only renewed for five years.”
Energy
Reps seek to enhance safety in Nigeria’s electricity supply industry
The House of Representatives Committee on Safety Standards and Regulations has expressed concerns over safety issues and the use of substandard equipment in the Nigerian Electricity Supply Industry (NESI).
Committee Chairman, Dr. Suleiman Abubakar Gumi, emphasized the House’s commitment to enforcing safety laws in the sector.
I spent 24 years in prison for refusing to join in murder, money ritual plot — Ismaila Lasisi0.00 / 0.00
To address safety challenges, the Committee, in collaboration with the Association for Public Policy Analysis, will host a conference to identify solutions. The power sector has been identified as a critical area where safety standards and regulatory policies must be strictly observed.
Dr. Gumi noted that the Federal Government has enacted laws and established institutions to coordinate, implement, and enforce safety regulations in the electricity sector. The aim is to ensure safe, secure, and high-quality electricity service delivery, preventing loss of lives and property, and reducing incidents like electrical accidents and vandalism.
Despite government efforts, challenges persist, including vandalism, theft, unlicensed electrical installations, and the use of substandard electrical materials. The upcoming conference will strengthen the Committee’s oversight and investigative duties, as outlined in Section 88 of the 1999 Constitution.
By hosting this conference, the Committee seeks to improve safety standards and regulations in the electricity sector, ensuring effective legislative action and protecting Nigerian citizens.
Energy
Why Canada supported Nigeria with $23m Oxygen plants—Envoy
The Canadian Government has said it supported Nigeria with the building of nine oxygen plants in nine states worth $23 million due to the gaps she experienced during the outbreak of the COVID-19 pandemic in 2019.
The Canadian High Commissioner Ambassador to Nigeria, Mr James Christoff, explained when he visited the newly commissioned ‘Pressure Swing Adsorption Oxygen Plant’ at the Nchia General Hospital in Eleme Local Government Area of Rivers State on Tuesday.
Recall that the Rivers State Governor, Siminalayi Fubara, had commissioned the Oxygen Plant on August 6, 2024, when it was unveiled by the United Nations Children Fund.
Continuing, Christoff, who is also the Permanent Representative of Canada to ECOWAS, said poverty is central to some of the challenges the Canadian government identified globally which he said worsened during the outbreak of COVID-19.
Speaking about the Oxygen Plant, he said, “This is a tangible example of where governments like the Government of Canada, UNICEF, WHO, the Rivers State Government and of course the healthcare system can come together and bring effective, focused and change to address shortcomings that ultimately if addressed can make a real difference to the general public.
“And I think this medical Oxygen Plant is doing just that. So it is my sincere joy to be here representing Canada and seeing how Canadian tax dollars have made a difference here in Nigeria.”
While acknowledging that the facility was commissioned in early August, Christoff said, “I want to come and see it for myself. And I want to thank those who have facilitated this event today.
“You know poverty hits the world quite hard in ways that remain lingering in terms of the facts, and in the aftermath of all that we recognise, there are ways we need to come together to address shortcomings that were revealed during our nation’s response.
“During Covid, it was identified there were several gaps in the way that as an international community, we were not able to effectively address everything that came our way. One of those gaps of course was the issue of medical oxygen. Canada decided to make a concerted effort to support significant funding through UNICEF to address the shortage of medical oxygen across the globe.
“And so the Government of Canada provided $23 million to support the building of nine facilities across Nigeria including this one and to respond to similar gaps that we have identified during our response. So it is with great pride that I’m here today as Canada’s representative here in Nigeria.”
In her remarks, the State Commissioner for Health, Dr Adaeze Oreh, said the PSA Oxygen Plant underscores the ‘remarkable’ collaboration between the state and its international partners.
Dr Oreh, who was represented by the Permanent Secretary of the State Ministry of Health, Dr Mekeke Igwe, further said the facility stands as a beacon of progress and a vital resource in the state’s quest to provide better medical care and ensure that no patient is deprived of the essential oxygen required for their treatment.
The Commissioner noted, “This oxygen plant fills about 135 cylinders (20-1 litre bottles) in 24 hours and provides 720,000 litres of medical oxygen within the same time frame.
“This capacity ensures that 100 children with severe pneumonia or 50-60 adults battling critical respiratory illnesses can receive round-the-clock oxygen treatment simultaneously.”
She lauded the Canadian government’s commitment to fostering health innovations and its unwavering support towards strengthening healthcare systems in developing regions, she reaffirmed the dedication of the state to maintaining and operating the plant to the highest standards.
“We pledge to ensure that its benefits reach those who need them most and that it serves as a model of excellence in healthcare infrastructure,” she promised.
Speaking, the chief of the field office of UNICEF, Port Harcourt, Dr Anselem Audu, stated that the funding for the establishment of this plant was provided by the Canadian government, the IHS Towers through UNICEF, saying everything has been paid for.
Dr Audu said, “This is a dream come true. I was part of what happened during the COVID here, how we were looking for Oxygen night and day, and Oxygen was nowhere to be found. Today such a thing cannot happen if there is a need for Oxygen.”
He said the envoy’s visit to the facility symbolizes the commitment of the Canadian Government and the strong partnership of its government and UNICEF to ensure the latter provides life-saving medical facilities for children in its zone.
“I want to especially thank the High Commissioner for finding time to come to this facility to see how UNICEF has effectively put the fund given to UNICEF for the good and betterment of the people of Rivers State,” he added.
Energy
FG, Chinese firm reach agreement on renewable energy
The federal government on Tuesday signed a Memorandum of Understanding with a Chinese company, Mutual Commitment Company Limited on renewable energy.
This is contained in a statement by the Special Adviser on Strategic Communication and Media Relations, Bolaji Tunji, to the Minister of Power in Abuja.
The MoU was facilitated and signed in Beijing at the African-China Co-operation Summit by the Rural Electrification Agency, an agency of the Ministry of Power.
The Minister of Power, Adebayo Adelabu and the Managing Director of REA, Abba Aliyu, were present at the ceremony.
Speaking at the event, Mr Adelabu said that the MoU signing were important and would go down as a memorable day for Nigeria.
He congratulated the REA and the National Power Training Institute of Nigeria for the achievement.
He said, “The MoU will go a long way towards achieving Nigeria’s vision for the renewable energy subsector of the electricity sector value chain. I know Nigeria and China have lots of things in common, one of which is the high population of both countries. And countries with high populations have so much pressure. The first pressure is that of energy access, and the second is job creation. So when you take steps to achieve both, it is a thing of joy.
”I am particularly happy that this is happening during the tenure of President Bola Tinubu, as it is in line with achieving the Renewed Hope Agenda of the administration for the country.’’
The minister reiterated that Mr Tinubu had prioritised the power sector as the driver of other critical sectors of the economy and given support to ensure that he delivered on his electoral promises.
He noted that energy access and expansion were the government’s major priorities because nothing could be achieved without a strong, stable, functional and reliable electricity sector.
He stated, “We have relied so much on centralisation of our power sector for so long that it is not taking us anywhere, as almost 40 per cent of Nigeria’s population lacks access to energy with its attendant consequences. So moving away from centralisation, we have decided to adopt the distributed power model to ensure that every Nigerian has access to energy.
“A lot of our population resides in the rural areas; a lot of our institutions—educational and tertiary health institutions—are isolated, and they are still facing epileptic power supply.’’
Mr Adelabu said that the federal government also found out that the adoption of distributed energy model would expand the energy net for Nigeria’s rural dwellers, the rural businesses, universities and tertiary health institutions.
He said that it was the reason the focus was now on renewable energy, which is believed to be scalable and could exist in isolation of the national grid currently facing pressure.
According to him, as Nigeria continues to expand energy access, the country also wants to achieve a transition to cleaner sources of energy that are sustainable and environment-friendly.
He stated, “Which is why we have both a long-term and medium-term target to achieve net zero carbon emissions by year 2060 and also to enable us to achieve 30 per cent of our energy generation coming from renewable energy by year 2030. So renewable energy is currently a major focus for us in the power sector.’’
He added that the two MoUs would achieve the vision for the renewable energy sub-segment of the power sector.
He noted, “A step like today’s will enable us to move up on our level of electrification. This will consequently lead to growth in our gross domestic product because of the economic activities that will be created. This will also save us foreign exchange expenditure on importation and create jobs for our people if we assemble these things locally.’’
Speaking earlier, the managing director of REA reiterated the importance of the ceremony as it was capable of delivering on the presidential mandate of building local capacity and creating more job opportunities.
Mr Aliyu said that the REA would track the MoUs and ensure the delivery of the commitment within the tenure of the present administration.
”We will also track the economic factor that this initiative will drive, the level of GDP contribution, the employment opportunities provided, and the socio-economic activities that will crystallise,” he said.
Mr Aliyu also said that the MCC was presently engaged in Nigeria with the construction of 12 MW and 3 MW power plants in Maiduguri and Kaduna, respectively.
In the same vein, the vice chairman of MCC, Yan Zhezhu, expressed appreciation for the power minister’s commitment to Nigeria’s energy growth.
”We are not new to Nigeria, having started in Oyo State a long time ago. Presently, we have ongoing projects in Maiduguri and Kaduna, and we appreciate the cooperation we have so far received. Our projects have seen us working with states and the federal government in Nigeria, and we are committed to doing more,” he said.
Energy
DisCos reject 1,400mw over under-capacity
Electricity distribution companies, otherwise known as DisCos, were unable to take the full power generation in recent period, underlining a major challenge in the electricity supply chain.
Minister of Power, Chief Adebayo Adelabu, yesterday said that power generation had peaked at 5,170 megawatts on Friday, August 30, 2024 but this had to be ramped down by 1,400 megawatts due to inability of DisCos to pick the supply.
“This is really regrettable considering that government is on course to increase generation to 6,000 megawatts by the end of the year,” Adelabu said.
He however assured that all efforts were on to ensure that the country attain stable power supply.
Adelabu, who is in China to attend the China-Africa Cooperation Summit as part of the delegation of President Bola Tinubu, spoke during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
He said the federal government has concluded arrangements to release $800 million for the construction of substations and distribution lines under the Presidential Power Initiative (PPI).
The money will ensure the construction of substations for Lot 2, substations and distribution lines for Lot 3 at a cost of $400m each.
Lot 2 covers Benin, Port Harcourt, Enugu DisCos’ franchise areas while Lot 3 covers Abuja, Kaduna, Jos and Kano DisCos’ franchise areas.
Speaking during an interactive session with TBEA management , Adelabu assured of the federal government’s commitment towards working with world class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector in Nigeria especially in areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.
Speaking on the problems in the power sector which had hindered industrial growth, the Minister said this was due partly to the fragility of the Transmission and distribution infrastructure which have become old and dilapidated. “ This has led to historical epileptic supply of Power to households, industry and businesses”.
According to him, more than 59 per cent of industries in the Nigeria are off the grid. “They did not see the national grid as reliable and dependable. So a lot of them now operate their own captive, self-generated power”.
Adelabu said the administration of President Bola Ahmed Tinubu is determined to transform the power sector adding that a lot of activities have started that is gradually bringing back confidence in the sector and among the power sector consumers especially the industries.
Acknowledging the different initiatives of the government, Adelabu went down memory lane that in 1984, about 40 years ago Nigeria was able to generate 2,000 megawatts and it took us over 35 years to add additional 2,000 megawatts. “When this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable”. Our plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydro electric power plants and our gas- fired power plant. We are also targeting 30 gigawatts of Power to be generated, transmitted and distributed by year 2030 out of which 30 percent would be renewable energy”.
He said the renewable energy segment will come from a combination of hydro electric power from small dams, solar energy sources and wind farms from onshore and offshore winds.
On the issue of the construction of the super grid, the Minister said the national grid in its present state can not support the vision for the power sector. “If we look at the strength, the capacity and the age of our existing network on the National grid, it cannot really support our vision for the power sector hence the need for the construction of the Western and Eastern super grid. Though we have been on this since my resumption, I can also tell you that the President is in full support of this because this will improve our transmission network, stabilise the grid and also expand the capacity and the flexibility of the National grid”.
He said 90 percent of the approval required is in place and would be concluded soon.
Speaking earlier, President of TBEA, Huang Hanjie assured of the organisation’s continued support for the Nigeria’s government vision for the power sector. He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy. He said TBEA is not new in Nigeria adding that the company is presently working with the Omotosho, power plant, Ondo State owned by the Niger Delta Power Holding (NDPHC).
Hanjie also commended the Minister for the improvement in the power sector as evidenced in improved generation and transmission since his assumption of office. While also acknowledging the short term improvement to 6 gigawatts by December 2024 and 30 gigawatts by 2030, he said TBEA would be willing to work with the Nigerian government to achieve the vision and contribute to the ongoing power sector revolution in the country.
On the proposed Super grid by the Nigerian government, he indicated TBEA’s interest in participating by contributing its expertise in the project to guarantee its success.