Power Sector And Other Related News Stories For Friday November 3rd 2023
Minister Blames Low Power Generation on Rising Gas Price
The Minister of Power, Adebayo Adelabu, on Thursday, said the recent surge in the price of natural gas has profoundly impacted the country’s capacity to generate enough power.
He revealed this at the closing session of the African Natural Resource and Energy Investment Summit held on Thursday in Abuja.
The minister speaking on challenges in the sector said the increased cost of production has affected foreign investments, reduced reliability, and environmental concerns.
This was as he sought continued cooperation and collaboration to help implement government policies and programmes in the energy sector for the well-being of Nigerians and the country’s economic development.
Nigeria Tackles Energy Deficit With Solar Resources
Nigeria is the most populous country and the largest economy in Africa, but it faces many challenges in meeting its growing energy demand.
Despite having abundant natural resources, such as oil, gas, and hydro, Nigeria suffers from frequent power outages and low electrification rates. According to Tracking SDG7’s Energy Progess Report, about 92 million Nigerians – more than 40% of the country’s population – lack access to grid electricity. That makes Nigeria the country with the largest energy access deficit in the world.
While Nigeria has 13,000 MW of installed electricity generation capacity, only less than 5000 MW is transmitted to the grid daily, caused in part by aging transmission infrastructure and erratic gas supplies. As a result, many continue to rely on expensive and polluting fuel powered generators to supplement the short fall from the grid.
Policy Flip-Flop Threatens $155m Smart Meters Project
Inconsistent government policies, high annual turnover and cash flow requirements are currently threatening execution of the $155 million Phase 2 of Nigeria’s National Mass Metering Programme, NMMP.
The project is a World Bank-funded 1,250,000 metering scheme targeted at procuring and distributing smart electricity meters to 11 electricity distribution companies, DisCos in the country.
Former President Muhammadu Buhari’s administration had intentionally executed the nation’s metering programme to positively promote indigenous production, deepen local capacity, conserve foreign exchange, and create additional one million direct jobs and three million indirect employment opportunities through the granting of import duty waivers and other incentives, targeted at enhancing their operations.
Market-Based Regime Will Develop Africa’s Gas Sector
Sahara Group, one of the leading international energy and infrastructure conglomerate, has urged African governments and regulators to adopt market-based regimes to stimulate the sustainable development of gas across the continent.
The company noted that appropriate pricing of the commodity will enhance investment, increase production and consumption growth. It also called for the inclusion of investors in gas policy development frameworks as part of the process of enhancing capacity and competitiveness of the sector in Africa.
LASG Promises Stable Electricity
The Lagos State Government has reiterated its commitment to a stable and reliable power supply in the state.
The Special Adviser to the Governor on Mineral Resources, Abiola Olowu, said this during an inspection tour of the ongoing upgrading of the Community Electrification Projects in Alimosho-Orelope, Oko-Oba and its environs recently.
The SA said interventions by the state government would make electricity available round the clock for residents of the state.
Olowu unveiled the strategic planning of the power project to encompass the inclusion of communities such as Orelope, Okunola, Akowonjo, Shasha, Oki, Wole Omo-osho, Federal Housing Authority Estate, and others, according to a statement on Thursday.
Reps Summon DisCos, CBN Over $344m Loans For Electricity Projects
The House of Representatives on Public Accounts Committee (PAC) on Thursday resolved to summon the Central Bank of Nigeria (CBN) and 11 Electricity Distribution Companies (DISCOs) over $321 million and N18.2 billion loans for the accelerated transmission distribution interface, lines and substation projects.
Bamidele Salam, the Chairman of the PAC who gave the order when Engr Sule Abdulaziz, the Managing Director of the Transmission Company of Nigeria (TCN) demanded They to appear before the Committee ton November 8th, 2023.
Salam explained that their summon was sequel to a petition on lack of judicious use of the funds, which were paid to the DISCOs by the CBN on prompting of the TCN.