Oil & Energy

Power Shortage: Lagos Artisans Count Losses

Published

11 years ago

July 1, 2014

Some artisans working
in Lagos have urged the Federal Government to enhance their capacity for wealth creation by providing stable electricity supply across the country.
They told newsmen that the absence of electricity for commercial purposes negated government policy on small scale businesses and entrepreneurship.
Babatunde Olalekan, a barber, who disclosed that he earned about N1, 500 daily, said the absence of constant electricity had robbed him of his source of livelihood.
“Electricity supply and poor customer response to payment are my major challenges. “I really need light to operate because I can only use my clipper when there is electricity so that I can meet the needs of my customers. “I spend a lot in buying petrol to run my electricity generator which is expensive and discouraging,” he said.
Aderemilekun Yaya, a seamstress, said that poor electricity supply had made it near impossible for her to earn money and support her husband.
Yahaya, who has been in business for 10 years, also identified the ailing national infrastructure as another major setback to the development of SMEs.
“In a week I realise at least N5, 000 from the cloths I sew and I pay electric bills even when I am not using the light as I wish.
“I buy charcoal everyday for my coal iron so that I can iron my customers’ outfits when there is no power supply.
“The patronage I get is reducing, the reason being that my customers say that they find it hard to get to my shop to drop or receive their fabrics, all in the name of bad roads.
A tailor, Taofeek Adisa, said that poor electricity supply nationwide was compounded by dearth of support from the finance industry for SMEs.
“I want the government to assist me financially to boost my business. If I have financial support, I will continue with the business and not divert to something else,” Adisa said.
For Adijat Abatan, a photographer, financial challenge and poor electricity supply has made her nine years practice of photography fruitless.
She said the lack of the political will from both the government and the organised private sector to implement policies geared toward leveraging SMEs and poor power supply made entrepreneurship a difficult task in Nigeria.
Also speaking, Solomon Aderibigbe, a carpenter, said that poor electricity supply had compelled him to quit the trade for buying and selling of goods.
Aderibigbe also said that the nation’s challenged infrastructure, especially electricity had made it difficult for artisans to earn a living from their various trades and contribute to the economy.

Oil & Energy

Supermajors Bet Big on Long-Term Oil Demand

Published

5 days ago

November 3, 2025

The Tide

The world’s largest international oil firms are ramping up production even as crude prices have weakened this year and global supply growth continues to outpace the demand increase, setting the stage for a glut in the coming months.

The European majors are back to investing in exploration and new oil and gas field developments after years of trying – and mostly failing – to generate profits and good returns from low-carbon energy projects, including renewable electricity, green hydrogen, and biofuels.

The U.S. supermajors, ExxonMobil and Chevron, are pumping record oil volumes in the top shale region, the Permian, while betting on international project expansions in Guyana and Kazakhstan, for example. The U.S. giants both reported in the second quarter record-high production in the Permian and worldwide, following Exxon’s acquisition of Pioneer Natural Resources and Chevron’s buying of Hess.

France’s TotalEnergies expects higher oil and gas production to have boosted earnings for the third quarter, despite a $10 per barrel decline in oil prices since last year.

Production at the other European supermajors, Shell and BP, is also rising as the European giants shifted focus back to their core oil and gas business. The pivot took place after the energy crisis made energy security and affordability more important than sustainability, while high interest rates and supply chain issues further reduced already meager returns from clean energy projects and made many new energy ventures uncompetitive.

The supermajors are confident they can withstand the current weaker prices and the surplus on the market, to which they have contributed, alongside the national oil companies of the OPEC+ producers, which have been reversing the production cuts this year.

Big Oil is looking beyond the short-term fundamentals and glut noise, having decided to invest more in oil and gas to meet solid demand until at least the mid-2030s.

Unlike the International Energy Agency (IEA), which earlier this year doubled down on its forecast of peak oil demand by the end of this decade, Big Oil companies don’t see any peak by 2030.

BP, which said last year that global oil demand would peak as early as this year, ditched this view in its new annual Energy Outlook last month, in which it now expects oil demand to rise through 2030 amid weaker-than-expected efficiency gains.

Most majors have put the peak at some point in the 2030s, but none expect a rapid decline afterwards, and all say that oil and gas will remain essential for global economic growth and development in 2050.

“Oil and natural gas are essential. There’s no other viable way to meet the world’s energy needs,” ExxonMobil said in its 2025 Global Outlook.

“Our Global Outlook projects that oil and natural gas will make up more than half of the world’s energy supply in 2050. We project that oil demand will stabilize after 2030, remaining above 100 million barrels per day through 2050,” the U.S. supermajor reckons.

“All major credible scenarios include oil and natural gas as a dominant energy source in 2050.”

All three scenarios analyzed in Shell’s 2025 Energy Security Scenarios found that upstream investment of around $600 billion a year “will be required for decades to come as the rate of depletion of oil and gas fields is two to three times the potential future annual declines in demand.”

Exxon and now the European majors are playing the long game—invest in new oil and gas supply, at the expense of renewables, to offset with new production the accelerating natural decline of producing oil and gas fields.

Even the IEA admitted last month that the world needs to develop new oil and gas resources just to keep output flat amid faster declining rates at existing fields, in a major shift in its narrative from 2021 that ‘no new investment’ is needed in a net-zero by 2050 scenario.

Exploration is also back at the top of the agenda for Big Oil, as the companies appear confident their product will be in demand for decades to come.

The expected massive overhang later this year and early next year is not putting off the supermajors’ plans to increase production. They are slashing costs via cutting thousands of workforce numbers to protect shareholder payouts at $60 per barrel oil. Companies have pledged billions of U.S. dollars in cost savings and slimmer corporate structures. That’s to eliminate inefficiencies and excessive costs while keeping payouts to shareholders at much lower prices compared to the 2022 highs.

This year, higher oil and gas production is partly offsetting the weaker prices.

Increased output also positions the world’s biggest companies for rising profits when the glut clears within a year or so, analysts say.

“All the supply coming to the market is shrinking OPEC’s spare capacity — so there’s a light at end of the tunnel,” Barclays analyst Betty Jiang told Bloomberg this week.

“Whether that’s second half of 2026 or 2027, the balance is going to tighten. It’s just a matter of when.”

By Tsvetana Paraskova

Oil & Energy

Stakeholders Lament Poor Crude Oil Supply To Indigenous Companies …..Urges President To Pressure NNPCL To Prioritise Local Refineries

Published

5 days ago

November 3, 2025

The Tide

Stakeholders in the Downstream oil sector in collaboration with Civil Society Organisations (CSOs) have called on President Bola Ahmed Tinubu to create an enabling environment for all oil refining companies to thrive without fear or pressure of any kind.

They also want the President to mandate the Nigerian National Petroleum Company (NNPC) Limited to prioritize crude oil supply to local refineries over foreign partners.

The groups made the call during the Mega Rally against economic sabotage in the Nigerian Petroleum sector with the theme ‘National Unity Against sabotage: Reclaiming of Petroleum Sector for the People’, held in Port Harcourt, the Rivers State capital.

Addressing journalists during the rally, the Convener of Partners for National Economic Progress, Olamide Odumosu, insisted that it was unacceptable that government agencies hide under the “willing supplier, willing buyer” clause to frustrate the supply of crude to local refineries.

Odumosu called on president Tinubu to ensure that crude oil supply to the dangote refinery is not debatable.

Odumosu described the recent expansion of the Dangote refinery from 650,000m bpd to 1.4m bpd as not just a national glory but a continental and global one expressing regrets however, that the Dangote refinery now rely on the international scene for crude .

In his words “As an oil producing country, the matter of supply of crude to local refineries (in this case, the Dangote Refinery) is not only a matter of Law as stated in the Petroleum Industry Act, but a manner of patriotic duty, national consciousness and economic prosperity drive. It is very sad, unfortunate and embarrassing that Dangote Refinery imports crude from other countries due to his inability to source it at home.

“It is for this reason that the PIA encourages regulatory agencies to formulate policies that will ensure the supply of crude to local refineries, including imposing sanctions where necessary”.

On his path, the convener of Niger Delta Youth council, comrade Danielson Prince, condemned the practice of importing crude oil from outside the shores of the country.

Prince noted that such was detrimental to Nigeria’s economy while calling on the President to pressure NNPC to sell crude oil to Nigerian companies within Nigeria.

“However, this is both a journey and a struggle. And we will not rest, will we get to the desired destination and victory achieved. There are still very important issues to address”, he stated.

Prince described the situation as sad stating that it was unfortunate and embarrassing that Dangote Refinery imports crude from other countries due to his inability to source it at home.

Odumosu also emphasized that it is unacceptable for government agencies in the country to hide under the willing supplier clause to frustrate the supply of crude oil to local refining companies in the country.

TheTide learnt that similar rallies were recently organized in Abuja, Kaduna and Asana respectively.

By: King Onunwor

Oil & Energy

Investors Raise $500m For Solar Manufacturing – Adelabu

Published

5 days ago

November 3, 2025

The Tide

The Federal Government, in partnership with state governors and private investors, has secured nearly $500m to establish solar manufacturing plants across Nigeria.

Minister of Power, Adebayo Adelabu, disclosed this at the just concluded Nigeria Energy Conference, in Lagos.

Recall that the minister had announced that Nigeria had begun exporting locally manufactured solar panels to Ghana, marking a milestone in the country’s renewable energy drive.

According to him, following the recently concluded Nigerian Renewable Energy Innovation Forum organised by the Rural Electrification Agency, the government secured agreements worth nearly $500m with state governors and private investors.

The initiative, he said, would add close to 4 gigawatts of solar manufacturing capacity per annum, almost 80 per cent of Nigeria’s current total power generation capacity.

“At the recently concluded Nigerian Renewable Energy Innovation Forum, we successfully activated agreements totalling almost $500m with state governors and investors. What will this do? It will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity, equivalent to almost 80 per cent of our current national generation capacity,” he stated.

He explained that the deals would support local production of solar panels, batteries, and meters, reducing dependence on imports and positioning Nigeria as a key player in the regional energy market.

“Companies that will manufacture solar panels here and that will manufacture batteries and meters here, we can give them deposits. With this scale of renewable energy production coming online, Nigeria is not only positioned to achieve its domestic renewable energy transition targets but also to serve as the regional power market,” Adelabu said.

He said this would strengthen the export of renewables, a feat he said was achieved recently with Ghana.

“Nigeria will serve as the regional power market in terms of the hub, which we recently started doing with the export of Nigerian-based solar panels to Ghana just last month. Yes, we exported solar panels manufactured in Nigeria to Ghana, and we will not stop. We will be the hub for this, not just for West Africa, but for the entire African market,” he stated.

The minister noted that the move would have far-reaching benefits for the economy, including job creation, foreign exchange earnings, and faster deployment of solar energy infrastructure.

He added that training and empowering Nigerian youths in renewable energy technologies would be key to sustaining the progress.

Adelabu assured investors that the government was creating an enabling environment for private sector participation across the power value chain, particularly in transmission.

“Nigeria’s power sector remains open and ready for business more than ever before. The government is ready to provide the right and conducive atmosphere to make this environment investor-friendly.

“As rational investors, recovery of your principal and margin on principal are very important, and the way the power sector is configured, you will never lose your investment; you will be proud to be an investor in Nigeria,” he added.