Power Sector And Other Related News Stories For April 3rd 2024

Posted by News Room April 3, 2024

Nigeria Moves to Reduce Electricity Subsidies

Nigeria plans to axe an electricity subsidy for 15% of consumers to reduce its 3.3 trillion naira ($2.6 billion) cost, part of a series of reforms to ease pressure on public finances, presidential spokesperson Bayo Onanuga said on Tuesday.

Onanuga said the government was under pressure to allow a price increase in the electricity sector as it only budgeted 450 billion naira ($344 million) for the subsidy this year.

He did not say when the tariff increase would come into effect, but said that when it did the government expected to save close to 1.1 trillion naira per year.



Assessing The Electricity Landscape In Nigeria

In the face of mounting environmental concerns and the need to combat climate change, nations worldwide are embracing energy transition plans aimed at shifting from traditional fossil fuel-based energy systems to cleaner and more sustainable alternatives. This energy transition is not just an environmental necessity but also a strategic economic and social endeavour. The effectiveness of energy transition plans hinges on the presence of strong legal structures that facilitate investment, manage risks, ensure consumer protection, and foster collaboration between stakeholders. Nigeria’s Electricity Act Amendment Bill, 2024 (“the Electricity Act Amendment Bill”), is a key legislation which holds the potential to shape Nigeria’s energy landscape and drive its transition towards a sustainable future.



Geregu Power Aligns with New Standards Following $550m Investment To Date in Nigeria’s Power Sector

The management of Geregu Power Plc has restated its commitment to Nigeria’s power sector, stating that the first listed power generating company on the Nigerian Exchange Limited (NGX) is determined to support President Bola Tinubu’s power sector reforms.

In showing commitment to Nigeria power sector, the company took a significant step to align with new standards, amid attainment of ISO 9001 and 14001 certifications from the Standard Organisation of Nigeria (SON).

Speaking to journalists at 12th Annual General Meeting (AGM) last week Friday, Independent Non-Executive Director, of the power generating, Doron Grupper stated that the company has invested $550 million in plant transformation.



FG To Increase Subsidy Payment To Power Sector As It Increases Gas Prices

The Federal Government is increasing the amount of subsidy it is paying the power sector value chain because it plans to increase the gas price.

The same government that is saying it does want to increase electricity tariff now has found it convenient to increase the gas price thereby increasing the cost of generating I kilowatt-hour of electricity. By implication, it means that the government would anytime soon increase the electricity tariff it has been trying to avoid.

Nigeria Midstream and Downstream Product Regulatory Authority (NMDPRA) on Monday announced new prices for Gas. It’s $2.42/MMBtu from $2.18 and the price of gas for commercial users is $2.92mmbtu from $2.50mmbtu.



EKEDC Restates Commitment to Improved Service Delivery Through Infrastructural Development

On March 16, 2024, Eko Electricity Distribution Company (EKEDC), Nigeria’s leading electricity distribution company commissioned a state-of-the-art 2 X 20 MVA Randle Injection Substation for customers within the Surulere axis of its franchise area. The substation which adds about 30 Megawatts of power to that area will profile relief for existing substations thereby removing the possibility of load-shedding.

At the commissioning, the Company reiterated its commitment to completing such projects to the delight of its teeming customers. The Company stated that it is imperative to have such projects at every large customer cluster to match the expansion rate being experienced everywhere. The Lekki-Epe corridors have always been a source of concern to the company owing to the rate at which buildings, both residential and commercial are springing up every minute.



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