Connect with us

Oil & Energy

Need For Sustainable Power Supply

Published

on

The problem of poor power supply in Nigeria has been terribly lamentable  and the situation seems to have defied  all efforts by previous governments since in the 80s. one is tempted   to now  ask what  the present  administration under President Goodluck Jonathan can do to salvage  the country from the ugly trend.

From on-set, the Federal Governemnt has been matching words with action on how better to improve the power sector by ensuring that the mega watt rose to 150 from less than 50, even within the short period of this present dispensation. This was after the Chief executive officer of Olornrisogo Power Station was redeployed to the headquarters for efficiency.

The redeployment followed the warning by the Minister of Power, Professor Barth Nnaji that all managers of the different sections of the utility company –Power Holding Company of Nigeria (PHCN), from generation, transmission to distribution should either sit up or be prepared to be booted out. Nnaji first had a meeting with the Chief Executive officers of the different sections of the utility’s value chain when he stressed the need for them to show commitment to duty to give Nigerians the long expected power supply.

Although he agreed that the sector had suffered grave or gross neglect in a couple of decades ago, particularly under the military    administration, he was optimistic that if the capacity Nigeria currently has fully utilized, there would be considerable improvement in power delivery. The question now is, who is the cause of Nigeria’s predicament in the power sector. Is it the government or the authorities of the utility company?

With the efforts so far made by the government, one would think that the utility firm, PHCN is to be held responsible for the incessant epileptic power supply in the country. The helmsmen of the company just as the former  Nigeria Electricity Power Authority (NEPA), feel that their duties and at coming to defend  their budgets and collecting electric bills and  share same among themselves  and  sit back and seek frivolous reasons to justify spending such funds without practical evidence on ground.

Unlike in the past when all the funds that come to the different sections of PHCN pass through the headquarters, the CEOs of the different units currently go to government to defend their annual budgets and spend the money according to their discretions thereby and up at not utilizing the money to provide constant electricity for the people. Some utilize the money in providing poor service leaving undone what the money is meant for.

However, the Chief executive officers saw that it was no business as usual when the minister clamped down on four of their colleagues and that the ministry didn’t come to the combat in child’s gloves. Although, ever since that was done, the situation changed in terms of power supply but a lot needs to be done.  The minister needs to tour all the power facilities across the country including the South-South and Port Harcourt in particular to see for himself or have a practical feel of what the people of the area are suffering. All is not well with the PHCN formations across the country and for the Niger  Delta region that produces the bulk of the nation’s wealth, special attention should be paid to give the a sense of belonging and to compensate  them for the  long neglect.

The minister should extend his “Capacity Recovery” to Rivers State because from the look of things lack of commitment and human errors account for considerable power failure in the state. There is need to ensure sustainable electricity supply in Rivers State considering its population and economic contribution coupled with the fact that sustainable and successful business is bi-product of constant electricity supply.

An auto manufacturing company could not be built in Nnewi, Anambra State because of poor power supply in the country. According to the Minister of Power, his efforts as a key player in the do were fruitless as the planned power supply.

In a paper he presented during the 20th anniversary of Anambra State Nnaji said “it was the fledging auto industry in Nnewi which inspired me in the late 1990s to take steps to establish in Nigeria a state-of-the-art company to manufacture auto parts including engines, when I was the ALCOA foundation Professor of Manufacturing Engineering at the University of Pitts burgh”.

The only way to attract investment to Nigeria is for the government to ensure steady and uninterrupted electricity at all levels. The country is blessed with all kinds of natural resources which can attract foreign investors but because of the non-availability of uninterrupted electricity, investors are scared.

Most investors after carrying out feasibility study of the kind of investment they intend to bring into the country will end up being deterred because of the huge, cost of acquiring and fueling a generating plant that would be able to power their investment. Reports have shown that everyday industries and other manufacturing concerns are collspsing and unemployment rate rising as investors are not willing to come and do business in the country because of lack of sustainable power supply.

Sadly, an average Nigerian home spends more than the N18,000 minimum wage  which is yet to be paid, a month to power its generator  to have power. Much of the economic undevelopment in the country today is because of lack of power, at trend all patriotic Nigerians must not allow to continue. This power has risen to a point that the President, Dr. Goodluck Jonathan and all the state governors should make steady power supply their one-point agenda and do everything humanly possible to ensure that this is achieved before the end of 2012.

Obviously, the government at federal and state levels should partner with other stakeholders or establishments in ensuring that the power problem becomes a thing of the past because until  that is done, no matter how much we spend  on jingles and advertisements in the local and foreign media to woo investors to come and invest here, it will continue to be a mirage.

Ghana and other industrialized countries did not advertise in international media before virtually multinational and local companies were attracted to invest there. The issue of power supply is however, over-flogged because it is the main key to industrialization and  self-reliance in any country and any country without steady electricity remains impoverished with its people.

It has become necessary to suggest that Nigerian governments should send delegations to China and other countries and engage energy companies that will give the country steady power supply so that we can become economically viable, as that is the only way to generate to generate employment for our teeming youths.

In pursuance of its regulatory functions, the Nigerian Electricity Regulatory Commission (NERC) in collaboration with the Standards Organization of Nigeria (SON) and the National Environmental Standards and Regulations Enforcement Agency (NESREA) has approved standards and guidelines for the issuance of clearance certificates for importers of generating sets and broken-down parts. This is to ensure that all generating sets to be imported into the country meet all the approved standards and quality and to stop the indiscriminate importation of generating sets into the country.

There has been little or no difference in the state of power supply in the country since the power reform was initiated by former president Olusegun Obasanjo’s government in 2005. This is why the Nigerian Electricity Regulatory Commission (NERC) has embarked on a process of consulting with stakeholders over the need or otherwise to increase electricity tarriff in the country. Chief executive officer of NERC, Dr Sam Amadi, at a workshop on major Review of the Multi-year Tarriff Order (MYTO) urged the shareholders to be objective over the review process, noting that “public power supply in the country is still a standby in most homes and offices, as it was in 2005 when the reform in the power sector began.”

If we must achieve the goal of giving every citizen access to stable, reliable and fairly priced electric power, a reliable and sustainable framework must be put in place to ensure the robust interaction of market forces with social policy to attain equilibrium. This we can do by establishing a pricing regime that will sustain massive private sector investment and guarantee a positive return on investment, while also being fair to underprivileged consumers.  The power industry is characterized by lack of a transparent price determination process and abysmally low tariffs, all based on the political whims and considerations of the PHCN, as opposed to the economic principle of full cost recovery.

Shedie Okpara

Continue Reading

Oil & Energy

Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

Published

on

Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
Continue Reading

Oil & Energy

MAN, Ministry Tackle High Electricity Costs, Erratic Supply

Published

on

The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
Continue Reading

Oil & Energy

Reps Panel Dismisses Petition Against NIPCO gas Licence

Published

on

The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

Continue Reading

Trending