Oil & Energy
N450b Debt: FG Gives Deadline To NNPC
Following the outcome of the interim audit report on the Nigeria National Petroleum Corporation, NNPC, which was recently received by the Federal Government, the National Oil Company had been directed to settle the N450 billion outstanding debts to the federation account, without further delay.
Chairman Finance Commissioners Forum of Nigeria, Rebo Usman, disclosed this in Abuja at the end of January meeting of the Federation Accounts Allocation Committee (FAAC) last week.
Usman said the report which was received by the Federal Ministry of Finance, came just as the committee, consisting of Commissioners of Finance and Accountants General of the 36 states and the Federal Capital Territory resolved to share the sum of N410.78 billion (including VAT) from the federation account.
Usman who is also the commissioner of finance Taraba State, said the earlier position of FAAC on the NNPC indebtedness remain valid, as the company is expected to pay its debt in no distance time.
He advised the NNPC to sort out its differences with the Federal Government on reconciliation of its accounts and “ensure they come up with payment schedule by the next FAAC meeting”.
The issue of the Corporation ‘s indebtedness had been in the front burner since last year when the Minister of State for Finance, Remi Babalola alleged, but incapable to meet its current liabilities.
NNPC, Group Managing Director, Austen Oriwon, had said in a letter addressed to FAAC, explaining why the corporation would not be able to pay the debt, claiming that, “the corporation is insolvent, as its current liabilities exceed its current assets, by N754 billion as at December 31, 2008.
The NNPC boss, further explained in the letter that, the corporation could only pay the money when the federal government agree to reimburse it the N1.156 trillion spent on subsidy expenses incurred for petroleum product supplies and distribution since 2003. the height of these claims and counter claims was the ordering the federal government of a comprehensive audit of the NNPC account last year.
Taneh Bemene
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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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