Oil & Energy
Minister Wants Implementation Of Oil Industry Content Dev Act
The Minister of Petroleum Resources, Diezani Allison-Madueke yesterday in Abuja, stressed the need for government to implement the Nigerian Oil and Gas Industry Content Development Act.
Allison-Madueke, who made the call at a ceremony to commemorate the one year anniversary of the Act, said the implementation of the Act would help in the development of the nation’s economy.
She said the implementation of the Act would also help to retain over 10 billion dollars out of an average annual oil and gas industry expenditure of 20 billion dollars in the Nigerian economy, compared to the current sum of less than N40 billion.
“It will also help create over 30,000 direct employment and training opportunities, considering the scale of activities to be domiciled in Nigeria,’’ Allison-Madueke said.
She listed other benefits of the implementation of the Act as the integration of indigenes and businesses of residents of oil producing areas into the mainstream of economic activities in the industry.
The minister, however, explained that the law was not against multinationals or meant to indigenise the industry, but to support and promote the efficiency of genuine investors, in line with global best practices.
She reiterated the Federal Government’s commitment to repositioning the sector for greater efficiency and productivity.
Allison-Madueke, who was represented by the Permanent Secretary in the ministry, Alhaji Sheikh Goni, expressed optimism that in spite of the initial challenges in the implementation of the law it would enhance activities in the industry.
Mr Austen Oniwon, the Group Managing Director of the NNPC, said the Act would help to achieve national economic integration.
He said the law would ensure greater participation of Nigerians in the industry, and called on the Nigerian Content Development and Monitoring Board (CDBM) to carry out more enlightenment on its activities.
In his remarks, Mr Ernest Nwapa, the Executive Secretary of the Board, said the enactment of the law showed the Federal Government’s commitment to the development of the economy.
He said the Act would facilitate the training and increased participation of Nigerians in the industry and also check foreign dominance.
Nwapa said the board had put in place the Nigerian Content Development Fund into which oil companies would be remitting one per cent of their proceeds for capacity building.
The event was attended by the Minister of Interior, Mr Emmanuel Iheanacho, Mr Andrew Fawthrop, Managing Director of Chevron Nigeria Ltd and captains of industy as well as representatives of civil society groups.
The event was organised by the NCDBM.
The Nigerian Oil and Gas Industry Content Development Act 2010, was signed into law by President Goodluck Jonathan in April 2010.
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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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