Business

Towards Efficient Power Supply In Rivers

Published

9 years ago

July 3, 2015

A Gas Turbine Generating Station in Rivers State.

The Rivers State Governor,
Chief Ezenwo Nyesom Wike in his maiden address during his inauguration on May 29, 2015 reeled out his action plan, among which was to enhance the Rivers people’s prosperity through power supply and energy security. He promised to ensure the completion of on-going electrification projects.
According to him, as an initial step towards tackling the challenges of irregular power supply before making fresh investments, “we will conduct a forensic audit to find out the reasons behind the failure of the state to reap maximally from the huge investments already committed to the power sector by the immediate past administration. We will also review all issues relating to the secret privatisation and or sale of the government investments in power and other related projects without due process”.
Without wasting time, the governor has set up a Judicial Panel of Inquiry to probe the alleged sales of four Gas Turbine Generating Stations. They are Trans-Amadi (Port Harcourt) Station – 3x20mw solar GT, Omoku (ONELGA) Gas Turbine – 3x20mw solar GT, Eleme (ELGA) Gas Turbine – 1x20mw (G.E. Engines) and Afam Gas Turbine Station.
These were projects initiated and completed through the former Governors Peter Odili and Governor Amaechi’s administration’s then decision to embark on an extensive construction of the State Power Grid System (450mw) projected over 10 years period to feed all the 23 local government areas in the state.
There were also two others – Soku (AKULGA) Station 2x10mw and Bonny (OLGA) Station – 2x10mw involved in the scheme as a reintegration into the new grid system.
The Rivers State government Policy Strategy for the development of power infrastructure is structured to achieve economic empowerment of its citizenry and to raise the living standards of the people through the establishment of sustainable industrial base grassroots programme. This actually informed Governor Odili to initiate the gas turbine projects. Now, Governor Wike irked by the present scenario in the power sector of the state has decided to find out the root cause of the incessant epileptic power supply in the state.
Some people have misconstrued Governor Wike’s intention as an action to witch hunt the immediate past governor Chibuike Rotimi Amaechi while some view it as a cheap way of gaining or currying the favour of Rivers people.
Whichever way anyone might think about the probe into the alleged sales of the four gas turbine plants, the decision of Governor Wike is in the right direction and in the good interest of the entire state and the people.
In the advanced countries of the world, energy availability is highly prized so much so that living standard is a measure of the National Energy Index or industrial development. Some schools of thought believed that Africa’s under-development was initiated by Europe during the heinous slave trade that was alien. But today in several countries, under development has become a trademark in transitional societies.
Development is a function of growth and change in the economic, political and social institutions just as a positive change in the people’s lives gives eloquence to dismal economic and social deprivation. Rivers people have suffered for decades despite the lavish generosity God has bestowed on the state, hence every leader of the state must strive to put in place a programme of infrastructural development designed to raise the moral tone of a people whose poverty profile ranks the worst in the midst of plenty in the whole world.
Rivers people deserve an aggressive rural and urban electrification programme, economic empowerment / poverty alleviation, among others that need to be factored on both short and long terms.
Electrification by means of Isolated Diesel Generating Stations as a stop-gap should be a measure for short-term relief while long-term programme should embrace a two-system generation and supply such as electrification by means of direct inter-connection to National grid and gas turbine power plant / grid system.
The Odili administration had put both long and short-term objectives for electricity supply for the state to achieve reliable power supply to rural communities.
It has also provided standby power plant to boost existing state government development programmes / efforts in the rural areas, establish a sustainable industrial base in the rural areas as well as build a bridge to link government and the rural population by creating development impacts and economic empowerment of the rural dwellers.
One would think that this is in line with the present administration’s plan to develop more urban towns from Ahoada, Bori and Degema. It is our belief that adequate supply of reasonably prized energy is an essential ingredient for meeting the basic needs of society, stimulating and supporting economic growth as an index of industrialisation. The Wike administration as we can see, has taken electrification as a major policy focus and the thinking now is the urgent need to establish a sustainable industrial base in the rural areas of the state to arrest the rural-urban drift syndrome and provide a catalyst for industrial growth of small and medium scale industries. Such policy drive will provide a conducive atmosphere for employment generation and poverty alleviation at the grassroots.
Government should be faithful in the implementation of its development policies, especially as it concerns electrification projects conceived as prime movers with multiplier effects in various catchment areas of the state. The rise in power consumption has assumed a progressive surge since the end of the Nigerian civil war in 1970 and the national grid has become weak and fragile to cope with the insatiable power demands, so there is the need to revolutionise the concept of gas turbine power plant application as an alternative power generation system to the wailing and dwindling national grid now in the control or hands of private power distributors.
The Rivers State government, beginning from the Odili’s administration to Amaechi’s regime has spent billions of Naira to acquire, install and operate four gas turbine power generating plants but the power supply situation has not witnessed or produced any positive result. It is important that before this administration continues to invest in power supply, it should find out the actual cause of the problems and factors militating against power generation and distribution in the state. These problems underscore the necessity for the on-going probe so as to know the way forward in the state’s power sector. Governor Wike’s decision is in order.
The reason for the probe is not far-fetched because we don’t have to remain stagnant and expect things to normalise without certain decisions backed with actions.
More than 75 per cent of the power transmission / distribution infrastructure on the national grid in the state were constructed and funded by the Rivers State government without any refunds from the federal government or the agencies concerned after commissioning. In adding, other payments have been disbursed to the power agencies for supply / installation of distribution transformers but all these efforts have yielded no satisfactory result.
Rivers State is playing host to a number of strategic and heavy power consuming industries with already congested radial feeder which is grossly inadequate to meet the ever-rising power demands in the state, so it has become expedient if not compelling that the Federal Government commences work on the construction of more transmission infrastructure to improve power flow into Rivers State. The Rivers State Government in collaboration with oil companies in the state such as Shell Petroleum Development Company (SPDC), Agip, Total and others should work out ways of providing constant power to the rural communities through gas turbine plants.
Investments in gas turbine power generating electrification scheme is a profitable venture, not in terms of cash returns, but will continue to attract favourable consideration as a reliable power plant in the state. The operation of gas turbine as a power plant permits wider flexibility in fuel application, improves system stability under designed load and holds good hope for low capital investments per megawatt output in the long-term. It is understood that major electricity generation / supply industry activities are replete with difficult problems and sometimes unpredictable failures requiring immediate remedial actions to address the incipient faults through efficient maintenance of all power system plants and equipment. This requires the total commitment of government in training skilled manpower and staff mobility as well as handling the challenges in equipment and gas delivery.
Attention must be given to poor maintenance culture and power equipment replacement policy caused by the former administration. There is no gainsaying that one of the most effective means of power generation in the world today is through the use of gas turbine engine, but it is capital intensive and very expensive to maintain.
Therefore, one sure way of sustaining the present Rivers State government-owned gas turbine projects is through a well-articulated revenue generation system.
Gas turbine engines are made to function non-stop for about 30,000 hours (4 years) before it is due for major servicing. So, by implication, consumers are expected to have an uninterrupted power supply for four years. This makes it mandatory for beneficiaries of the project to pay the required revenue in order to ensure sustainability of the project.
Certainly, consumers would be pleased to pay when they begin to enjoy steady power supply. By doing that, the state government has to enact a legislation for power generation, transmission and use in the state. This will ensure uninterrupted power supply in Rivers State just like in the advanced countries.

Shedie Okpara

Business

Paper Industry’s Economic Contribution Hits N398bn

Published

2 days ago

April 22, 2024

The Tide

The contribution of the paper industry rose to N398.8billion in 2023 from N356billion it recorded in 2022.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Musa Yusuf, disclosed this in a report released to mark the inauguration of World Envelopes Day in Lagos.
Marking the event, which also commemorated the 50th anniversary of envelope manufacturing firm, FAE Limited, Yusuf stated that the paper industry has a profound economic impact across all sectors of the economy.
He, however, noted that the growth in digital technology had greatly disrupted the sector, especially as a mode of communication.
“As of 2023, the value of the Nigerian paper industry was N398.8billion naira, according to the National Bureau of Statistics.
“The value was N365bn in 2022; N363 billion in 2021; and N255billion in 2020. This is a significant contribution to our GDP. However, when compared to the size of our economy, which is estimated at N230trillion as of 2023, it is still very small”, the CPPE boss stated.
Yusuf said the paper industry had been largely in recession because of the digital technology disruptions and other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.
He emphasised that the paper industry had a profound economic impact across all sectors of the economy, which underscored the need for government intervention in the sector.
In her opening remarks, the Managing Director of FAE Limited, Funlayo Bakare, described World Envelopes Day as the brainchild of the company, which sought to set aside April 16 as a day to celebrate the fundamental role envelopes play in daily communication.
“As we celebrate our golden jubilee, we are delighted to announce the inauguration of World Envelopes Day, to be celebrated annually on the 16th day of April.
“This is a pioneering initiative by FAE Ltd in accordance with our leadership position in the sector.
“The establishment of World Envelopes Day is to raise awareness about the importance of envelopes in various aspects of human endeavour, including personal correspondence, business transactions, and creative expressions”, she said.
The Publisher of The Guardian Newspaper, Maiden Ibru, who chaired the occasion, stressed the need to strike a balance between digitalisation and physical paper production, especially due to the indispensable role paper plays in cultural preservation.
Nigeria once had three paper mills: the Nigeria Paper Mill Limited, located in Jebba, Kwara State; the Nigerian Newsprint Manufacturing Company Limited, Oku-Iboku, Akwa Ibom State; and the Nigerian National Paper Manufacturing Company Limited in Ogun State.
The mills are no longer operational, and the country has had to depend on importation to make up for the shortfall.
The Asset Management Company of Nigeria has taken over the management of NNMC over unpaid debts.

Business

Aviation Union Threatens Strike Over Revenue Deduction

Published

2 days ago

April 22, 2024

The Tide

The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has said it would embark on industrial action if the Federal Government refuses to exempt aviation agencies from a directive that seeks to deduct 50 per cent from their Internally Generated Revenue (IGR).
ATSSSAN disclosed this in a communique issued by its National Executive Council (NEC) after its National Economic Council meeting in Ibadan, Oyo State.
The NEC, which had in attendance all 17 affiliates of ATSSSAN comprising all branch Chairmen, Secretaries, and national officers, reiterated calls for the exemption of the aviation agencies from the deduction of 50 per cent of their IGR under the Fiscal Responsibility Act.
The association said the agencies were not established for profit, hence stifling them of the required funds would jeopardise the effective performance of their safety and security mandates.
ATSSSAN warned that if the Federal Government insist on the deduction, it would compound the current financial state of the agencies, and “we may be forced to direct all aviation workers to down tools until the government reverses itself”.
Last year, the Federal Government directed the Office of the Accountant General of the Federation to immediately commence the presidential directives on a 50 per cent automatic deduction from the IGR of Federal Government-owned enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had issued a circular titled, “Re: Implementation of the Presidential Directives on 50 per cent Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises (FGOEs)”.
According to the circular, all partially-funded Federal Government agencies and parastatals (receiving capital or overhead allocation from the Federal Government’s budget) should remit 50 per cent of their gross IGR, while all statutory revenues, like tender fees, contractor’s registration, and sales of government assets, among others, should be remitted 100 per cent to the sub-recurrent account.
ATSSSAN stated its apprehension over what it perceives as deliberate efforts by certain private airlines to stop their employees from forming labour unions.
Citing Section 40 of the Nigerian Constitution and international labor norms, the association contends that such actions constitute a violation of workers rights.
The statement, however, did not specify the airline operators suppressing workers from joining unions.
Part of the statement read, “The NEC-in-session calls on all employers in the private sector in the aviation industry to respect collective bargaining agreements in order to avert industrial crises at the workplace.
“NEC-in-session was seriously disturbed by the continuous willful acts by some private airlines towards frustrating the unionization of their employees, contrary to the letters and spirit of Section 40 of the Constitution of the Federal Republic of Nigeria and relevant international conventions and laws”.
The association, therefore, called upon the Federal Ministry of Labour and Employment to uphold and enforce employees’ rights to unionise within the aviation industry.
It urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to orchestrate a dialogue involving all relevant stakeholders, including the non-compliant airlines and labour unions, under the auspices of the Labor Ministry.
At the meeting, other issues affecting workers, especially members’ welfare and working conditions, and the aviation industry at large were discussed, and positions and resolutions were taken.
The aviation group decried what it perceive as a dearth of avenues for career progression within government-owned aviation entities.

Business

NCDMB Rakes In $1m Return On NEDOGAS Investment

Published

2 days ago

April 22, 2024

The Tide

Management of the Nigerian Content Development and Monitoring Board (NCDMB) says it has received a cheque of $1 million from Nedogas Development Company Limited (NDCL).
A statement made available to newsmen by the Directorate of Corporate Communications and Zonal Coordination of the Board said the sum received was part of the return on investment (ROI) on one of its strategic investments.
The statement added that: “The cheque was presented by the Chairman of the company, Engr. Emeka Ene, when he visited the Nigerian Content Tower in Yenagoa, Bayelsa State, where he was received by the NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, and other members of the Board’s management.
“Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.
“As part of the project, Nedogas NDCL constructed and commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
“The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
“Nedogas is one of the several strategic and successful investments of the NCDMB funded from the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act”.
In his remarks, according to the statement, the NCDMB Executive Secretary stated that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil and gas producing communities to minimise gas flaring, saying that Ogbe also declared the Board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing.They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.
“The NCDMB had continued to receive briefings from its investment partners. We’re still waiting for them to come back with success stories. Some of them are near completion and have not started operations yet”, the NCDMB’s Executive Secretary said.
In his remarks, Chairman of NEDOGAS, Mr. Emeka Ene, conveyed the company’s excitement in returning part of the credit and profit, adding that it was a proof that the NCDMB’s investment was a success and they are getting back that investment, adding that the firm looks forward to further collaboration with the NCDMB to expand its scope.
Responding, the NCDMB boss said the Board was now doing effectively and practically and tangibly what it was set up for, saying its mandate was to impact the economy by direct interventions.
“That’s the way the economy can grow, improve the gas infrastructure in such a way that’s sustainable despite the tight economic conditions”, he said.
He added that, “the value propositions of the Nedogas project include total eradication of flared gas and conversation of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetize gas”.
Other benefits, according to Ogbe, include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s Gross Domestic Product (GDP).
“The partnership with NEDOGAS is one of NCDMB’s 15 strategic investments geared towards actualizing the Federal Government’s aspirations in key areas of the oil and gas industry.
“Most of the projects were targeted at actualizing the Federal Government’s Decade of Gas programme.
“Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State, and Duport Midstream’s 2,500bpd modular refinery in Edo State.
“Other investments of the Board include Better Gas Energy for LPG terminal and gas distribution, partnership with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State, and Alaro City in Lagos and the partnership with Butane Energy to deepen LPG utilization in the North”, he stated.
The Executive Secretary also noted that there was the partnership with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day and partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited, and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, in the Brass Local Government Area of Bayelsa State.