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When Will Nigerians Enjoy Stable Electricity?

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Unarguably, the provi
sion of stable and uninterrupted power supply is key for accelerated economic and industrial development of any country. Analysts are quick to point out that Nigeria’s quest to become one of the 20th economies in the world may as well be a mirage without stable electricity supply.
They say that stable electricity supply will reduce the cost of manufacturing and services; boost investment and employment, among others.
However, in spite of its importance, efforts to guarantee sustainable stability in the power supply chain has remained elusive despite huge investments in the sector by successive administrations since independence.
For instance, available records showed that the Olusegun  Obasanjo’s government spent over three billion dollars on its National Integrated Power Project (NIPP) as at 2007. This, according to Gov. Gabriel Suswam of Benue, the Chairman, Joint Transaction Technical Committee, is out of the over 10 billion dollars earmarked for the NIPP.
He said that the amount was also inclusive of the two billion dollars Federal Government’s counterpart funding for Mambilla Hydro Power project and the 1.4 billion dollars set aside for additional nine turbines plants.
At the moment, four of the projects which on completion would generate 4,774MW, had been completed, while six others are at 80 to 90 per cent completion.
To further boost the initiative, the President Goodluck Jonathan’s administration has strengthened the power sector reform by fully privatising the Power Holding Company of Nigeria (PHCN).
The exercise eventually resulted in the unbundling of the PHCN and the establishment of power Distributing Companies (DISCOs) across the country.
Although the reform is yet to significantly improve power stability nationwide, the World Bank, however, applauded the government for the initiative, with a call on other African countries to emulate the policy.
Mr Mukhtar Diop, the bank’s Vice President, Africa, made the commendation while listing some infrastructural achievements in Africa, during the recent African Union Summit on Financing Infrastructure Development, in Dakar, Senegal.
According to him, the power reform is one of the ways of solving Africa’s problems by Africans. “We must commend the leadership in Nigeria for the successful completion of the privatisation of the country’s power sector. “The electric reform in that country is one of the ways of solving Africa’s problems by Africans. We commend the country for that.”
It is, perhaps, against this backdrop, that President Goodluck Jonathan promised to restore uninterrupted power supply to Nigerians by the end of 2014.
Jonathan gave the assurance while commissioning the NIPP 500MW Omotosho II Power Station at Omotosho in Okitipupa Local Government Area of Ondo State.
He said that his optimism was based on the progress in the completion of the ongoing 10 independent power projects spread across the country.
“My administration is committed to boost electricity supply in the country. Today, we are in Ondo State to commission Omotosho Power Plant that will also serve the people of these areas and improve electricity supply in the country.”
But in spite of the government’s assurances, pundits doubt that uninterrupted and stable power supply to Nigerians would be achieved by the end of 2014.
Mr David Ladipo, whose company, Azura, is spending 700 million dollars to build a 450 MW plant in South Africa,  insists that with  the situation on ground, it will still take Nigeria 50 years from now to enjoy stable power supply.
Ladipo told Reuters news agency that Nigeria would need about 140,000MW to guarantee stable power supply.
‘’Nigeria is still scores of years away at this threshold. At present, it generates a meagre 4,000 MW for a population estimated at 170 million.
‘’South Africa, with a population of about 50 million people, produces about 40,000 MW  of electricity and has been trying in recent years to increase output.
“It will probably take Nigeria another 50 years before it attains the same level of electricity consumption per capita as South Africa currently enjoys today,” Ladipo said.
However, Gov. Babatunde Fashola of Lagos State believes that with patience and commitment, Nigerians will soon enjoy the dividends of the ongoing power sector reforms.
Fashola expressed the optimism in Lagos at the closing ceremony of the 7th Lagos Economic Summit, tagged: Ehingbeti. According to him, the privatisation of the power sector will not be successful without the cooperation of investors and consumers.
He urged the public to develop energy conservation culture and manage existing power infrastructure adequately. “We should desist from illegal connections of electricity and ensure that our bills are paid appropriately.
“Electricity poles should not be used as speed breakers by reckless drivers; we should all protect the infrastructure from being damaged,’’ the governor said.
The Minister of Power, Prof. Chinedu Nebo, shares similar sentiments, noting that the Federal Government has concluded plans to explore ways of implementing the Indian power sector model in order to further boost the nation’s capacity to generate more power.
Nebo stated this recently in Abuja when he received a delegation on power from India.
The minister said that the Nigerian power sector which was still in a transitional stage after the privatisation still had a lot to learn  from the Indian experience.
According to him, this is because of the peculiarity between both nations’ power sector. He said the ministry would soon summon a stakeholders’ forum of all Generating Companies (GENCOs), Distribution Companies (DISCOs) and the regulatory bodies to take a closer look on how India transformed its power sector.
Nebo also invited the Indian delegation to the first National Council on Power conference slated for August 2014 in order to have a robust discussion.
The minister assured the delegation that the Federal Government was committed to achieving 10,000 MW by the end of the year despite the challenges.
Speaking on behalf of the DISCOS, the Chief Executive Officer of Eko Disco, Mr Oladele Amoda, said the company had already had a technical arrangement with Tata of India.
He urged the India delegation to take seriously the issue of transfer of technology so as to fast-track the development of the sector.
The Indian High Commissioner to Nigeria, Mr Ajjampur Ghenashyam, who also spoke,  advised Nigeria, as the hub of economic activities in the West African sub-region, to take the lead in the development of regional power market.
He said that India had achieved over 400 per cent leap in generation capacity in the last 10 years due to the competitiveness of the market.
Ghenashyam said countries like Nepal, Bangladesh, Bhutan and Pakistan had already been enjoying from seamless cross-border market and this had further boosted confidence for investment flow into the sector.
The envoy said that India was ready to partner with Nigeria in the development of the nation’s power sector.
Nonetheless, analysts have advised the government to also invest in the development of alternative sources of energy, such as wind and solar in order to boost the capacity of the country to meet its energy requirement.
They also advise the government to fast-track the completion of the NIPP projects in order to realise the objective of providing uninterrupted power supply to Nigerians by the end of 2014.
Mr Adamu,writes for   News Agency of Nigeria (NAN).

 

Sani Adamu

L-R:  Chairman, Liaoning Efacec, Chief Sam Amyamele, Vice President, Engineering, Mr Li Jiawei, Vice President, International, Ms Hliang Xae Li and Minister of Power, Prof. Chinedu Nebo, signing a memorandum on power in Abuja, recently.

L-R: Chairman, Liaoning Efacec, Chief Sam Amyamele, Vice President, Engineering, Mr Li Jiawei, Vice President, International, Ms Hliang Xae Li and Minister of Power, Prof. Chinedu Nebo, signing a memorandum on power in Abuja, recently.

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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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