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Need For Sustainable Power Supply

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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

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Oil & Energy

Resource Wars Are Here and Oil Is the First Casualty

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In just over a year, the world saw several instances of a choked supply of commodities indispensable for today’s economies and military capabilities.
From China’s restrictions on rare earths and critical minerals supply to the de facto closure of the Strait of Hormuz, policymakers and analysts began to realize that the control of oil, critical minerals, rare earths, and magnets is as important as building and maintaining stockpiles of advanced weapons. It also became clear that without these resources, defense and military capabilities could be weakened. The actual arms race goes hand in hand with the new battle for the resources that underpin economic, manufacturing, and advanced military development.
“Great-power competition has returned to basics: who controls the physical resources that modern economies and militaries run on,” Alice Gower, a partner at London-based political-risk advisory firm Azure Strategy, told the Wall Street Journal.
“Energy, critical minerals and industrial capacity are leverage, not just economic assets,” Gower added.
The war in the Middle East and the blockage at the Strait of Hormuz laid bare the reality of choked energy supply. The world’s most vital oil and LNG chokepoint, through which 20% of daily global trade flowed before the Iran war, has been essentially closed for most tanker traffic for more than three weeks.
The massive supply shock, the worst disruption in the oil market in history, showed that the world is dependent on energy resources, and that geography and actual physical supply matter. With so much oil and gas stranded in the Middle East, oil prices spiked to above $100 per barrel, natural gas prices in Europe doubled, and Asian spot LNG prices hit multi-year highs.
The precarious situation in the Middle East is reverberating across Asia, the region most dependent on oil and LNG supply from the Persian Gulf. Asian refiners pay sky-high premiums for non-Middle Eastern crude, many are considering cutting or have already cut processing rates, and countries have started to enact fuel-preserving measures, from four-day work weeks to bans on fuel exports.
In Europe, the gas refilling season will be the toughest yet, as Asia is outbidding Europe for spot LNG supply after Qatar’s LNG is effectively sidelined and full capacity may not return for up to five years following Iranian missile attacks last week.
Even the ‘energy independent’ United States, the world’s top oil producer, is not independent when it comes to global supply shocks of such magnitude.
The national average price of gasoline is approaching $4 per gallon nationwide, more than $1 a gallon compared to a month ago, before the start of the war.
Oil is a global resource, traded on a global market, and prices reflect fundamentals, although they have been driven by hectic trading activity on geopolitics in recent weeks. But the fundamentals show that there is no resource available to plug the gap that has opened in Middle Eastern supply. Producers are slashing output due to a lack of storage capacity, which further delays a rapid recovery in supply when this mess ends.
All this goes to show that whoever controls the Strait of Hormuz has enormous leverage on inflicting global economic pain.
While the world is focused on the Strait of Hormuz, the race for rare earths and critical minerals continues, with the U.S. and Western countries scrambling to dent China’s dominance.
Since China restricted exports of rare earth elements early in 2025, Western countries have raced to create mine-to-magnet supply chains to reduce dependence on Chinese supply in the key military and automotive industries.
China holds a 59% share of the mining of rare earths, 91% in refining, and a whopping 94% in magnet manufacturing, the International Energy Agency (IEA) estimates.
The U.S. has responded by taking stakes in minerals mining companies, the launch of a U.S. Strategic Critical Minerals Reserve, known as Project Vault, and is leading efforts to break the Chinese stronghold on the pricing of these minerals critical for the defense and auto industries and national security.
Chinese dominance could be eroded, but it would take years.
Still, rising neodymium-praseodymium (NdPr) supply from countries like the U.S. and Australia is set to reduce China’s market share to 69% by 2030 from 90% in 2024, Bloomberg Intelligence (BI) said in new research this month.
“We’re seeing a surge in rare-earth investment as modern technologies demand more critical materials,” said Jack Baxter, Global Metals & Mining Analyst at BI and co-author of the report.
“That said, we anticipate a significant shortfall in supply due to trade uncertainties, with lead times as long as 10 years to get new material out of the ground,” Baxter added.
“This will give pricing power to the few producers that currently are able to supply critical materials outside of China, fracturing the globalized market.”
Amid fractured markets and high geopolitical uncertainty, one thing is certain – the next arms race, alongside the actual arms race, will be for control of key resources such as oil and critical minerals.
By Tsvetana Paraskova
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Oil & Energy

Transcorp Energy, Renewvia Partner On Renewable Energy Gap

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Transcorp Energy Limited and Renewvia Solar Nigeria Limited have signed a Memorandum of Understanding to jointly develop renewable energy projects across Nigeria.
The move is aimed at addressing the persistent power deficit that has crumble businesses in the nation.
The agreement also outlines a longer-term plan to expand operations across Africa, positioning both firms to tap into growing demand for clean and reliable electricity.
The partnership would target commercial, industrial and residential consumers, as well as underserved communities, through a mix of off-grid and grid-connected energy solutions.
Beyond electricity provision, the collaboration would explore the aggregation and monetisation of Renewable Energy Credits generated from the projects, adding a commercial layer to the clean energy rollout.
The Managing Director and Chief Executive Officer, Transcorp Energy, Chris Ezeafulukwe, said the initiative aligns with the company’s broader strategy to expand access to sustainable power.
He noted that combining grid and decentralised energy systems would enable the company to deliver reliable electricity directly to end-users across different segments of the economy.
Chief Executive Officer of Renewvia, Trey Jarrard, described Nigeria as a critical market for the company’s African ambitions.
According to him, the partnership provides a platform to scale operations rapidly by leveraging established infrastructure and local expertise, while delivering cost-effective and resilient energy solutions.
Both companies said the agreement lays the foundation for a scalable pan-African renewable energy business, capable of supporting diverse markets and accelerating the continent’s transition to cleaner power sources.
The collaboration comes amid increasing pressure on governments and private sector players to deploy sustainable energy solutions to bridge electricity gaps, reduce reliance on fossil fuels, and support economic growth across Africa.
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Oil & Energy

IYC Tasks Niger Delta Governors On  Oil Field Bidding  ….Decries Exclusion of Host Communities

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The Ijaw Youth Council (IYC) Worldwide has raised concerns over the continued exclusion of host communities from the governance of oil resources, urging Niger Delta governors to take decisive steps by bidding for oil blocs and marginal fields.
The council warned that failure to act would allow external interests to continue dominating the region’s oil assets, despite their location within host communities.
Secretary-General of the council, Maobuye Nangi-Obu, started this at the stakeholders’ meeting organised by the Pipeline Infrastructure Nigeria Limited , with participants drawn from Rivers, Abia and Imo States, in Port Harcourt, recently.
“It is time for state governments in the Niger Delta, especially Rivers State, to form oil companies that can bid for marginal fields within their territories”, he said.
Nangi-Obu expressed concern over the reported listing of about 25 marginal oil fields for allocation, noting that many were located in host communities but allegedly being assigned to non-indigenes.
In his words “They sit in Abuja and decide what happens in our region, yet we are not part of the oil governance of our own resources”.
He explained that marginal fields, though considered uneconomical by major oil firms, remain viable for indigenous operators, adding that their allocation had continued to fuel grievances in the Niger Delta.
The IYC scribe also warned of the implications of directional drilling, describing it as a growing threat to host communities.
“There could be oil wells in your community, and somebody elsewhere could be drilling that oil without your knowledge,” he cautioned.
On environmental concerns, Nangi-Obu condemned the persistent gas flaring in the region, blaming both international and local operators for failing to invest in gas processing infrastructure.
He, however, commended Pipeline Infrastructure Nigeria Limited for its engagement with host communities.
“Pipeline Infrastructure Nigeria Limited is doing the right thing by engaging stakeholders. Not all companies are doing what they are doing,” he stated.
Traditional rulers at the meeting, further acknowledged improvements linked to the company’s activities in their areas.
The Eze Ekpeye-Logbo, King Kevin Anugwo, represented by Dr Patricia Ogbonnaya, noted that “aquatic life that disappeared due to pollution is gradually returning,” attributing the development to improved environmental conditions.
Similarly, Chairman of the K-Dere Council of Chiefs, Chief Batom Mitee, said, “There is now peace in our community,” stressing,  increased oil production must translate into tangible benefits for host communities.
By: King Onunwor
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