Oil & Energy
Review Approach On Illegal Refineries, BoPP Tells FG
Federal Government has
been advised to review its approach on the issue of illegal refineries in the oil-rich Niger Delta for economic development of the oil sector and economy of the nation.
The Chairman, Rivers State Bureau of Public Procurement, Prof Okey Onuchukwu made the call at the 32nd Annual General Meeting (AGM) of the Rivers/Bayelsa States branch of the Manufacturers Association of Nigeria (MAN) held Thursday in Port Harcourt.
Onuchuwkwu said that the boys involved in illegal refinering of crude oil in the Creeks should not be totally thrown away.
While delivering a paper tilted, “Stagflation and Economic Re-alignment in Nigeria”, he said the high unemployment and inflation in Nigeria demands a shift from some policies of the government.
The head of Economics Department at the University of Port Harcourt said closing down the activities of those refining the crude in the creeks should not be approached with total rejection but rather government should find a strategy of co-ordinating them with the aim of upgrading their standard.
He explained that if they are trained such that the standard of their operation is upgraded, it would help boost employment and increase forex.
“We don’t need the big and gigantic refineries. Let us look at what the boys are doing, upgrade and to add value to it”, he said.
He remarked that huge importation of Petroleum Products and inability of public refineries to produce up to expected capacity was working against the economy and should be reviewed to boost local production.
In his own submission, Adviser to Governor Nyesom Wike of Rivers State on Investment, Mr Isaac Okemini, said the Federal Government should take steps towards ensuring that the International Oil Companies (IOCs) are encouraged to operate instead of scaring them off with our policies.
“Oil is the main stay of this country and will remain so for a long time. You must call back the IOCs; whatever made them to sell their investments in Nigeria must be reversed”, he said.
The Adviser regretted that the Petroleum Industry Bill (PIB) that could guarantee meaningful business operations of the IOCs had been languishing in the National Assembly for years and called on both National Assembly and federal government to sort out whatever differences amongst them that led to such a situation as to pass the Bill.
Chris Oluoh
Oil & Energy
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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