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Power: Towards Actualising FG’s 6,000mw Target

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Recently, the Federal
Government stirred the hope of Nigerians when it announced a new target of 6,000 megawatts  of electricity generation in the country.
At the 15th Herbert Macaulay Memorial Lecture, organized by the Faculty of Engineering, University of Nigeria, Nsukka, Penultimate Saturday, the Minister of Power, Prof Chinedu Nebo, promised that the country would hit 6,000 megawatts in electricity generation before December this year.
The simplest interpretation of the minister’s pronouncement is that before the next six months, electricity generation which for the past four months has been struggling to stabilize at 3,500 megawats would catapult to 6,000 megawatts, which is a little less than 100 per cent increase. Quite a fear indeed, if actualized.
More than any administration, the present administration led by Dr Goodluck Jonathan has shown bold commitment in the development of the nation’s power sector through its reform agenda.
The administration inherited 2,250mw electricity generation during its inception under the then Power Holding Company of Nigeria (PHCN), and decayed infrastructure with power plants that hardly met half of their installed capacities.
But realizing that electricity remains the catalyst that could power the nation’s economy in its bid to actucalise its vision of becoming one of the first 20 economies of the world in 2020, it privatized the then PHCN by opening the market for interest foreign and local investors for efficiency.
Apart from privatizing PHCN, it embarked on massive repairs and upgrading of power plants across the country and had recently also disclosed its determination to embark on the longest gas pipeline project that would run from the South, through the West and to the Northern part of the country.
For a nation with the 9th biggest gas reserves in the world, abundant coal and hydropower potentials, growing interest in solar energy and huge power infrastructural development, achieving 6000mw target for her 170 million citizens should not attract any reasonable attention, after all.
Yet major challenges that may truncate the humble target of 6000 mw electricity generation set by the government are, the activities of callous vandals who vandalise with passion, oil and gas pipelines, including electricity transformers through which the electricity as the end point can get to the Nigerian masses.
Early this year, Federal Government successfully repaired the Escravos gas pipeline that was crippled by incessant vandalism and was able to raise generation to over 900mw, but while Nigerians were enjoying the improved power generation, the vandals attacked Trans-Forcados pipeline, leading to its being shut down thereby forcing the nation back to where it was.
The Managing Director of 4 Power Consortium recently lamented over the negative impact of transformer vandals to the Port Harcourt Electricity Distribution Company (PHEDC).
He said an average of four transformers were being vandalized daily in Akwa Ibom State alone and noted that in the company’s effort to improve power generation to the people, the activities of the vandals to power facilities have become a challenge difficult to surmount. Infact, the MD even threatened that PHED was considering a shut down in the state.
According to Edevbie, the vandals have strong penchant for transformer oil which they consider to be lucrative.
Another company manager had also revealed that the vandals target the copper wire which they sell at cheap prices to some dealers who melt them for the production of earnings, necklaces and other jewelries.
Yet another obstacle to Nebo’s 6000 mw, target by December this year will also come from the mistrust between the former PHCN workers inherited by the new private investors.
The management of Power firms across the nation are being accused of power welfare of their staff and also not ready to tolerate unionism .
They are also accused of targeting staff who are interested in union matters. Just two weeks ago, the Nigeria Labour Congress in the South South had to picket PHEDC.
Among their reasons were nonpayment of the  severance package to some of the former PHCN workers which was part of the privatization processes casualisation of staff, as well as the new investors’ unwillingness to tolerate labour unions in their firms.
As a result of the frosty relationship, NLC sealed off all the offices of PHEDC in the four states it covers and only suspended the picketing when it assumed a violent dimension.
The new investors on their own parts complained of being weighed down by huge debt by customers who benefitted from their services. The MD of 4 Power accused the government of being the worst debtors and disclosed that through most of the parastatals and agencies, the government’s huge debt was frustrating the company’s operations.
So, while Nebo means well in his new target, as the representatives of the government,  it also behoves him to initiate ways and means through which government agencies that have become irresponsible debtors to the power companies to do well by offsetting their debts. Maybe, the better way of doing this is by designing ways of withdrawing directly from their subventions and allocations.
It is only when the huge debts owed the new power firms are paid that the ambitious 6000mw target could be actualisable.
It baffles the common masses when issue of non payment of severance packages resurfaces in view of the several hundreds of billions of Naira Federal Government said had been released to the PHCN former staff. Not minding whether the claims are right or wrong, the government should ensure the privatization process of the reform should be seen as a past stage that has been fairly concluded by those directly involved.
The Public must come to the reality of the fact that the new investors are in business solely for profit unlike before when government was in charge and electricity supply was viewed as a social services. As the tone has changed, so also should the dancing step change in order to match.
The community leaders and chiefs who for one reason or the other were not paying for electricity services supplied to them before must know that nobody other than them would pick their bills for services they enjoyed through the private firms.
The new call for re-orientation should as well as be approached with patience on the part of the new investors. The public must know that the investors have only recently taken over and therefore not expect the best which should come with time. In the other way round, the new investors should also be patient in their bid for profit maximization since their publics and customers need to adjust their with time.
The investors should do themselves good by developing a framework that could engender good relationship with their workers by way of embracing unionism because, it is a reality they can not run away from as long as their operations are in line with the nation’s constitution.
On the part of the consumers, of both classes, the investors must consider attractive Corperate Social Responsibility (CSR) initiatives to engender and sustain cordial and harmonious relationship with them.
Such CSR initiatives would be of huge benefit to the power firms as they would need to collaborate with the public especially in protecting their facilities since frosty relationship may not be able to drive such collaboration.
With these steps, and better protection of pipelines  through involvement of the natives, 6000mw could be attained by December.

 

Chris Oluoh

 Minister of State for Power, Mr Mohammed Wakil (right) and Team Leader of American Investors, Mr Roy Tefeez, signing a Memorandum of Understanding (MoU) on power in Abuja, recently. With them is Director, Legal Services, Ministry of Power, Mrs Adedotun Shoetan. Photo: NAN

Minister of State for Power, Mr Mohammed Wakil (right) and Team Leader of American Investors, Mr Roy Tefeez, signing a Memorandum of Understanding (MoU) on power in Abuja, recently. With them is Director, Legal Services, Ministry of Power, Mrs Adedotun Shoetan. Photo: NAN

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NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026

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The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled a $100 million Equity Investment Scheme among a raft of fresh initiatives to bolster indigenous capacity and participation in the oil and gas industry.
Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, disclosed this while delivering his keynote address at the opening of the 14th Practical Nigerian Content Forum, held in Yenagoa, Bayelsa State.
Ogbe said the $100 million Equity Investment Scheme would provide equity financing to high-growth indigenous energy service companies, while diversifying the income base of the Nigerian Content Development Fund (NCDF).
In furtherance of the scheme, a memorandum of understanding (MOU) was signed at the event between Engr. Ogbe and the Managing Director of the Bank of Industry, Dr. Olasupo Olusi toward the management of the scheme, which is a new product of the Nigerian Content Intervention Fund (NCI Fund).
The NCDMB Scribe also announced that 61 per cent Nigerian Content level has already been attained in the oil and gas sector by the third quarter of 2025 from projects being monitored by the Board.
Ogbe further expressed the board’s readiness to onboard a new set of Project 100 Companies after the successful implementation of approved interventions relating to the first set of Project 100 Companies, launched in 2019, for which an exit plan is slated for April 2026.
The ‘Project 100 Companies’, TheTide learnt, is an initiative of the Ministry of Petroleum Resources and the NCDMB under which 100 indigenous companies in the oil and gas industry were nurtured and empowered to higher levels of competitiveness through capacity building and access to market opportunities.
The NCDMB helmsman also said the Board has concluded plans to launch its NCDMB Technology Challenge in the first quarter of 2026 and to hold a Research and Development Fair in the second quarter of 2026.
In addition to its ongoing initiatives, the board further stated that a review of its seven current guidelines would be undertaken between the first and second quarter of 2026.
“The Board has completed the framework for issuance of NCDF Compliance Certificate, an instrument to confirm that a company in the oil and gas industry has complied with the one per cent remittance obligations.
“The Certificate will become effective on Ist January 2026 and would be required to obtain key permits and approvals from the Board”, Ogbe said.
In his address, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the theme of the PNC Forum, “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” captures Nigeria’s national priorities that guide interventions by the Board and his Ministry.
He insisted that investment remains the lifeblood of the energy sector, and that the Board and the Ministry were committed to providing stable policies, transparent processes, and market-driven incentives, to attract long-term capital,  assuring that the ministry would continue to strengthen local capacity across fabrication, engineering, technology services, manufacturing of components, and research and development.
On his part, the Minster of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted with satisfaction that a decade-long stagnation in the oil and gas industry was overcame with the enactment of the long-delayed Petroleum Industry Act (PIA), 2021, and Presidential Directives issued by the Administration of President Bola Ahmed Tinubu in March 2024.
He said Nigeria has regained investor-confidence as signalled by the recent surge in FIDs and the increase of oil rigs from 14 to over 60, with 40 currently in active service.
“Our investment climate now is globally competitive, our fiscal terms are globally competitive. Our policies must be seen to be consistent at all times. The Federal Government is prepared to support Nigerian Content and the oil and gas industry, but then, things have to be done responsibly., he said.
In a goodwill message, the Managing Director, BOI, Dr. Olasupo Olusi, said that the collaboration between the NCDMB and BOI marked a significant expansion of a longstanding relationship, while assuring that through the $100 million NCIF Equity Investment Fund, the Bank of Industry would deploy equity and quasi-equity capital to support high-potential Nigerian companies to complement traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation.
“With a single obligor limit of $5 million, the Fund is designed to catalyze multiple high-impact investments while maintaining strong governance and prudent risk management”, the BOI Managing Director said.
On her part, the Special Adviser to the President on Energy, Mrs. Olu A. Verheijen, commended the NCDMB for sustaining the PNC Forum, which she said, accelerates change, drives competitiveness, and pushes the industry toward global standards.
She urged stakeholders to remain intentional and not incidental about in-country value addition, as they chart the path toward building a resilient, competitive industrial base in Nigeria.
By;  Ariwera Ibibo-Howells, Yenagoa
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Power Supply Boost: FG Begins Payment Of N185bn Gas Debt

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In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the move, endorsed by the National Economic Council (NEC) headed by Vice President, Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.
In a statement issued by the his Spokesman, Louis Ibrahim, Ekpo described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,”
While noting that the intervention aligned with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030, Ekpo said clearing the arrears would deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

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The AI Revolution Reshaping the Global Mining Industry

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The global mining industry is undergoing a rapid digital transformation, driven by the dual pressures of the energy transition and increasingly complex extraction environments. A new market report projects the global Artificial Intelligence (AI) in mining market will nearly quadruple in value over the next seven years, reaching $9.93 billion by 2032.
This surge in adoption comes as miners face a “perfect storm” of challenges: declining ore grades, labor shortages, and an insatiable global appetite for the critical minerals required to power electric vehicles (EVs) and renewable energy grids.
According to data released this week, the market for AI in mining is valued at approximately $2.6 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.1 percent through 2032.
While the mining sector has historically been viewed as slow to modernize, the need for efficiency is forcing a change. The integration of autonomous haulage systems, predictive maintenance analytics, and “digital twins”—virtual replicas of physical mine sites—is shifting from pilot projects to standard operational necessity.
The “Operations & Process Optimization” segment is currently the dominant application, expected to account for more than 35 percent of the market in 2025. This technology allows companies to squeeze higher yields out of lower-quality rock, a capability that is becoming essential as easily accessible high-grade deposits are depleted worldwide.
The driving force behind this investment is the global scramble for critical minerals. The report highlights that the metal mining segment held the largest market share in 2024, directly correlated to the demand for lithium, copper, cobalt, and nickel—the backbone of the green energy economy.
“Metal mining operations involve highly complex processes—from ore body modeling and exploration to drilling, blasting, grinding, and material movement,” the report notes.
“AI supports these functions through predictive analytics… enabling cost reduction and higher yield recovery.”
For Western nations, this technological pivot also holds geopolitical weight. With China currently dominating the processing of rare earth elements, Western mining majors are under pressure to ramp up domestic production and efficiency to secure supply chains for battery manufacturing and clean energy infrastructure.
Beyond productivity, the industry is leveraging AI to address its most persistent operational risk: safety. The “Safety, Security & Environmental” segment is projected to record the highest growth rate during the forecast period.
Mining remains one of the world’s most hazardous heavy industries. Companies are increasingly deploying AI-powered video analytics and real-time worker tracking to prevent accidents involving heavy machinery and to monitor for gas leaks or ventilation failures in underground operations.
Furthermore, stricter Environmental, Social, and Governance (ESG) criteria from investors are pushing miners to adopt AI for environmental compliance. New tools allow operators to monitor tailings dams for stability, track emissions in real-time, and optimize water usage, ensuring that the intensifying race for minerals does not come at the cost of environmental stewardship.
Geographically, the Asia Pacific region commanded the largest share of the AI in mining market in 2024 and is expected to maintain the highest growth rate.
This dominance is underpinned by massive production volumes in China and Australia. Major industry players in the region, including BHP and Rio Tinto, have been early adopters of autonomous technologies. In Western Australia, for example, autonomous haulage trucks and drill rigs are already commonplace, moving millions of tons of iron ore with minimal human intervention.
China’s adoption is further accelerated by government support for “smart mining” initiatives aimed at modernizing its vast coal and mineral sectors to reduce fatalities and improve environmental performance.
As the world moves toward 2032, the “mine of the future” will likely bear little resemblance to the labor-intensive operations of the past. With generative AI now entering the sector to assist in complex mine planning and exploration, the industry is pivoting toward a model where data is as valuable as the ore itself. For energy markets, this efficiency is not just a bonus; it is a prerequisite for meeting the material demands of a decarbonized world.
By: Charles Kennedy
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