Oil & Energy
Nigeria Spends $10bn Annually On Petroleum Products Importation – Dr Abe
Despite being the sixth largest crude oil exporting nation among the Organization of Petroleum Exporting Countries (OPEC), Nigeria spends $10 billion annually on importation of refined petroleum products.
This was revealed in a lecture presented by the Managing Director of the Onne Oil and Gas Free Zone Authority (OGFZ), Dr Noble Abe during the visit of the Minister of Commence and Industry, Senator Martins Kuye, to the headquarters of the free zone last Monday.
Dr Abe said Nigeria is the only country in such a contradictory situation as the nation was yet to leverage the vast energy reserves to enhance its industrial base through active productive activities.
With the Nigerian economy completely dependent on the capital-intensive oil sector, he hinted that the Gross Domestic Product (GDP) was still about 25 per cent out of about 95 per cent of the foreign exchange earnings.
This, he noted, accounts for the low human capital development index in the country.
Dr Abe, who acknowledged that the country is faced with pertinent challenges, such as decline in international financial flows through direct foreign investment, said this negatively affects the country’s trade and fiscal balances stressing that the oil and gas free zone offers great opportunities for Nigeria’s economic breakthrough.
He said Nigeria should take advantage of the comparative advantage in its abundant energy reserves to enhance its productive base through the development of allied industries.
Dr Abe also called on the Federal Government to provide the necessary infrastructure and incentives for the free zone to achieve its economic goals.
He sited countries like Singapore and Malaysia as examples of nations that leveraged on their comparative advantages in their resource base to develop their economies.
The OGFZ boss also emphasized that Nigeria was more favourably disposed to be the centre of global attraction in investment opportunities given the diverse resources available in the country, especially in the energy sector.
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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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