Oil & Energy
FG Signs MoU With Chinese Firms …Terminates Manitoba’s Hydro Power Contract
In a bid to boost the nation’s power situation, the federal government has signed a Memorandum of Understanding (MoU) with two Chinese firms to build two hydro-power stations in the country.
The Chinese firms, Sinohydro Corporation and China National Electrical Equipment Corporation which are to invest a total of N146.466 billion would through its Export-Import Bank provide 75 per cent of required funds to build a 700 mega watt hydro power station on the Northern Zungeru River while Nigeria will provide the 25 per cent balance of the fund put at N48.88 billion. During the signing ceremony in Abuja recently, the Minister of State for Power, Mrs Zainab Kuchi said the companies would be a 3,050 MW station in Mambila Taraba and a 700MW station in Zungeru, Niger and added that Sinohydro would build the plant at its expense and operate it for nine years before handing over its ownership to Nigeria.
She explained that the Mambilla project was planned since 1985 to produce 260 MW but was reviewed for the plant to produce 260MW, but was reviewed for the plant to produce 3,050MW and to be implemented within five years.
President Goodluck Jonathan was reported as saying that the nation was fully committed to achieving the set target of sustainable power by the year 2020 in less than a decade saying that all the tiers of government were being mobilized to play their roles to ensure that Nigeria attains its targets.
On alternative sources of power he said his administration was highly committed to strengthening the power sector so that it can efficiently deliver adequate, qualitative, reliable and affordable power in a deregulated market and the launch of the roadmap for the reform of the power sector two years ago brings into practical effect the 2005 Electric Power Sector Reform Act, and the hydro power generation sourceswere eing exploited.
President Jonathan explained that “Hydro power generation sources are being exploited. Only yesterday we had our initial meeting with the consultants and contractors for the construction of the large Mambilla Hydro-Power Plant that will produce 3050MW.
“The processes for the construction of Zungeru 700MW hydro power plant have reached an advanced stage. Several Small and Medium Hydropower projects are also in progress as well as Solar Power Projects. A MoU has already been signed with Seimens of Germany for the production of 450MW (with States as first place).
Bauchi State has taken off already. Thirty Mega Watts coal to power is being pursued under Public Private Partnership (PPP) arrangement as well as a pilot wind power scheme in Katsina with 10MW. Waste-to-power schemes are also being implemented in various States.”
In another development a $24 million electricity contract with Canada’s State-Owned Manitoba Hydro has been abolished by the Federal government.
The spokesman of Presidency, Reuben Abati who made the disclosure said the power ministry would make a statement on the move later.
According to him, “Mr. President has cancelled the Manitoba power contract with immediate effect.”
Industry experts saw the hiring of Manitoba to manage the national power transmission network as a major step to move the reform process.
Manitoba was to start work at the beginning of September but government still controls transmission.
The head of the Manitoba-run Transmission Company of Nigeria, Don Priestman expressing his disappointment said: “We had a clear contract and we were meant to be given delegation of authority … but that didn’t happen.”
He added that there were forces working against the power reform in the country as a similar contract which Manitoba has in Kenya was working well.
This figure is against the already released 40 slots by the company.
Consequently, the youths have moved to convene a national congress of youths to address issues relating to the oil exploration, which has sparked palpable divisions in the area.
Speaking during the inauguration of the Planning Committee for the Congress, in PortHarcourt, at the weekend, the President-General of OYF, Worldwide, Engr. Legborsi Yamaabana, described the congress as urgent, and targetted at addressing all issues arising from the planned oil resumption.
He said “The Ogoni nation stands at a critical crossroads in its history. We acknowledge the renewed political attention of the Federal Government of Nigeria under the leadership of His Excellency, President Bola Ahmed Tinubu (GCFR), particularly regarding the proposed resumption of oil and gas exploration in Ogoniland after more than three decades of suspension.
“While we recognize this development as a significant national conversation, we emphasize that any engagement concerning Ogoniland must be anchored on the principles of environmental justice, equitable benefit-sharing, and the protection of the dignity, rights, and future of the Ogoni people especially our youth, who remain the custodians of tomorrow.
“The Ogoni struggle is not merely historical; it is living, evolving, and central to the future of sustainable development in the Niger Delta and Nigeria at large.”
He called for calm over the 40 job opportunity given to the area by the NNPCL, insisting that such allocation was insufficient compared to the contribution of Ogoni to the economy.
Yamaabana rather requested that NNPCL, as a matter of importance, give 500 job slots to youths of the area,
In the interim, the leadership of OYF Worldwide has observed the unnecessary tension and uproar surrounding the reported 40 slots of employment opportunity allocated to Ogoni youths in NNPCL and its subsidiaries, as part of Federal Government confidence-building measure toward the resumption of oil and gas activities in Ogoniland.
“We strongly appeal to all Ogoni political, traditional, and community leaders to sheath their swords, maintain calm, and refrain from unnecessary squabbles over crumbs.
“Without preempting the sovereign deliberations of the upcoming Congress, let it be noted that Ogoni youth will not settle for tokenism.
“At the upcoming Congress, we shall formally demand a minimum of 500 direct employment opportunities within the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries for qualified Ogoni youths, who have been economically sidelined and left inactive throughout this 33-year stalemate.”
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the pledge while speaking in his keynote address at the just-concluded OGTAN Human Capital Development Conference and Expo, held in Warri, Delta State.
Lokpobiri said Nigeria was well-positioned to build a world-class oil and gas workforce, backed by growing investor confidence and an unprecedented pipeline of major projects heading towards Final Investment Decisions.
He described Nigeria as an emerging global investment hub, attributing the development to the incentive-driven reforms of President Bola Tinubu, which he said had improved the country’s competitiveness for international capital.
According to him, the pipeline of projects moving towards final investment decisions would require professionals trained to globally competitive standards, with much of the training expected to be delivered through OGTAN’s more than 400 members.
“Those human beings are members of the public who must have been trained by OGTAN, who are expected to have the competence to deliver those projects, not just for Nigeria, but for the entire world,” he said.
Lokpobiri noted that many lecturers and resource persons across Nigerian universities and tertiary institutions were still working with materials that had not kept pace with a modern, AI-driven industry.
He stressed the need to retrain trainers to equip the next generation of engineers, technicians and other professionals with the skills demanded by the industry.
“If the training system underpinning that capital is still operating on a 50-year-old blueprint, the risk is that Nigeria’s newly de-risked capital arrives faster than its newly-promised workforce can be built,” he said.
“As government, what we do is see how we can support OGTAN members. The government is committed to this, and we are doing it through NCDMB and the NOGICD Act,” he said.
Lokpobiri urged OGTAN to expand its focus across the continent, noting that countries such as Angola, Congo and Gabon already depended on Nigerian-trained oil and gas professionals.
“The rest of Africa is depending on human resources from Nigeria, and someone must be responsible for training that human capital, not just for Nigeria,” he said.
PENGASSAN also urged the government to submit recent executive orders on the petroleum industry to the National Assembly as an executive bill seeking amendments to the Petroleum Industry Act, a process more transparent and involving all stakeholders.
The union made the demands in a Communiqué signed by the PENGASSAN president, Comrade Festus Osifo, and its General Secretary, Comrade Jerry Amah, at the end of its three-day 5th PENGASSAN Energy and Labour Summit, held from August 19 to 21, 2026, in Abuja, and themed ‘Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry’.
It urged the government and regulatory institutions to minimise abrupt policy changes and ensure adequate consultation with stakeholders before introducing major changes in the industry.
PENGASSAN also called for improved coordination among regulatory and government agencies to eliminate overlapping mandates, repetitive approvals and conflicting directives which, it said, increased the cost of doing business and weakened Nigeria’s competitiveness for global energy capital.
The union said regulation should protect national interests, workers, host communities, investors, safety and the environment while enabling legitimate businesses to operate efficiently.
It urged regulators to embrace digitalisation, set clear approval timelines, and adopt transparent processes, arguing that regulatory effectiveness should be measured by its impact on investment, production, revenue generation, worker protection, and national value creation.
On investment and production, PENGASSAN said Nigeria could not rely solely on its large hydrocarbon reserves to attract investors, noting that the country was competing with other oil-producing jurisdictions for limited global capital.
It therefore urged the government to consolidate recent reforms and incentives that had encouraged fresh investments and Final Investment Decisions in the sector.
The association also identified gas as a key driver of industrialisation, noting that Nigeria had more than 215 trillion cubic feet of proven gas reserves regretting however that it is yet to fully convert the resource into reliable energy and economic growth.
It called for an integrated national gas development strategy covering upstream supply, processing, pipelines, storage, LNG, LPG and CNG infrastructure.
PENGASSAN further urged the government to accelerate the use of gas for electricity generation, manufacturing, transportation, fertiliser, petrochemicals and domestic cooking, while reducing routine gas flaring and methane emissions.
The union also called for sustained policies and investments to expand domestic refining capacity and reduce Nigeria’s dependence on imported petroleum products.
It stressed the need to protect refineries operating within Nigeria, including the Dangote and Waltersmith refineries, saying greater domestic refining and processing would create jobs, conserve foreign exchange and promote industrial development.
-
News2 days agoTinubu Appoints Enitan As New Head Of Federal Civil Service
-
Rivers2 days ago
Philanthropist Cautions Youths Against Ignoble Acts Donates Building To Musician
-
Politics3 days ago
Yari Emerges DG As Tinubu Unveils 2027 Presidential Campaign Council
-
Education3 days ago
Rivers Wins 2026 Presidential Inter-School Debate: Govt Pledges To Institutionalise Competition
-
Politics3 days ago
2027: ADC Candidate Tasks INEC On Integrity, Intensifies Consultations
-
Politics3 days ago2027: INEC To Conduct Nationwide Electoral Equipment Test Run In November
-
Sports3 days ago
NSC Celebrates Historic Beach Volleyball Olympic Qualification
-
Sports2 days ago
Arsenal Want Osimhen To Take Pay Cut