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2015: Nigerians Expectations From Power Firms

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As a new year (2015)
sets in, most Nigerians wish to know what the power firms particularly the Generating Companies (GENCOS) and Distribution Companies (DISCOS) have for them. With the low efficiency that sparked off and sustained crises in 2014 rule the day, or will the private dominated sector show some improvements in 2015?
As our correspondent samples the feelings of consumers, government officials and authorities of some power firms, divergent views were expressed in hope of a promising future ahead.
Authorities of Port Harcourt Electricity Distribution Company (PHEDC) last week rekindled the hope of its customers in Port Harcourt when it promised them better power supply to power the socio-economic activities of the residents and companies which constitute the firms major customer.
However, Chief Nicholas Njoku, a Port Harcourt-based businessman said, “such promises have always been made but they have not been able to change the situation.
Njoku, who condemned the poor supply of PHEDC last year expressed strong need for the firm to live up to the expectations of the people.
“What can Nigeria in its totality be without good power supply? It is high time we got the point clear that our dream of industrialisation would remain a mirage until adequate power supply is given to the people,” said Njoku.
“Yes, PHEDC has made a good promise, but the company should not forget that such a promise has raised people’s expectations and I advise that PHEDC should match its promise with action,” he stated.
A senior staff in the office of Diobu Business Manager of PHEDC who pleaded anonymity said the company is ready to improve on power supply particularly of the volume of gas supplied to the company improves.
“You should understand that the new power firms that took over the Power Holding Company of Nigeria (PHCN) were relatively new,” he said appealing that the companies which were more or less studying the industry needed some patience, understanding and high level of co-operation from the public.”
“As the days roll by, there is the natural likelihood that improvement would come and when our customers are happy, the power firms would also feel fulfilled,” he stressed.
But the issue of non-availability of metres was raised by Chidinma Okoroafor, a trader at Mile 1 Market in Port Harcourt.
“My concern is that when I sell my goods to customers, they pay me according to the value of the goods in monetary terms. PHEDC does not apply that principle in their business operations,” she said.
Okoroafor is worried that, “PHEDC chooses the amount of power they supply and also forces you to pay any amount it wishes. What kind of business is that,” she queried and noted that until an acceptable mode of payment which must correspondent with services rendered, is applied the promise of better supply is not enough.
She insisted that electricity meter, which is the universal measurement for power supply must determine supply, condemning the outright fixing of pay by the company.
“What annoys me most is that the government appears unconcerned about the cries of the masses and I begin to wonder who protects the people.”
An official of the Rivers State Ministry of Power who identified himself simply as George expressed strong hope that 2015 would come with better supply.
George said, “if you check round in Rivers State, you will observe that more communities especially in the rural areas now have light. I can tell you that more would have power supply because a good number have their rural electrification projects at various completion stages.”
Also expressing hope of better days ahead, a former staff of PHCN, Ihekoronye Obodo, noted that as PHCN operations transited to the new investors, consumers are yet to change their attitude. “They still think that power supply is in the hands of government but that is wrong because private investors are out to make profit to remain in business.”
Obodo solicited for patience and co-operation and expressed hope that with time, the private firms that are daily upgrading their facilities are prepared to improve supply to their customers.
“They must stop the attitude of power stealing because it is criminal, and let government establish special court to handle the issue of power theft, vandalism of power facilities and irregular payment for services used,” he stressed.
“As far as I am concerned, I have told PHEDC to disconnect me because I am no more interested in its power supply or whatever you call of PHEDC is an embarrassment to me because PHCN which was equally poor in service supply is even better than PHEDC,” said another consumer, Cletus Alaye.
Alaye, who said he returned from Canada two years ago would not see any need for PHEDC’s promises, stressing, what have I to do with promises. May be, the firm will ask people to pay for the promise it made. Let them prove to the people that they know how to do their job and until I see light regularly, I will continue to use my private generator.”
He, however, advised the Federal Government not to rely on the DISCOs and GENCOs but to diversify.
“Nigeria as a growing economy should look at the alternative means of supply to the masses. Solar energy, coal and other areas should be given proper attention,” he said and suggested that since so many rivers are in the country, experts should concert these potentials to provide energy.”
The Minister of Power, Prof Chinedu Nebo, last week disclosed Federal Government’s intention of providing over one million prepaid meters to reduce metering gap nationwide.
The minister, who stated this during a town-hall meeting with stakeholders in Abuja said the intervention was to help electricity distribution companies in which government has 40 per cent equity to reduce the metering gap.
He said the only way to reduce over billing was to provide meters to all consumers in the country.”
“Government still owns 40 per cent of the DISCOs. This is why it is still giving out its own counterpart funding,” Nebo stressed.
On pipeline vandalism, he said plans were underway by the government to digitise the pipelines to forestall vandalism and emphasised the need for a legislation to provide stiffer penalties to punish pipeline vandals.
Several efforts have also been made by the government to upgrade and build new power stations. It is believed that if the incidence of theft for which Nigeria is noted as the highest amongst countries of the world, is checked, meters provided to check the over-billing of power distribution firms to their customers and more dedication to responsible service provision as well as increased improvement on facilities are maintained, 2015 may reduce the so much darkness and provide light for socio-economic advancement of the nation.

 

Chris Oluoh

Some Transformers Donated by the lawmaker representing Oyigbo in the RSHA Hon. Okechukwu .A. Nwaogu

Some Transformers Donated by the lawmaker representing Oyigbo in the RSHA Hon. Okechukwu .A. Nwaogu

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Rivers PETROAN Elects 12-Member Executive 

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The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.
The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.
The newly elected executive include, Pastor Ezekiel I. Eletuo  as  Chairman,  Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary,  Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.
Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.
Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.
Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.
He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.
Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.
The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.
He further described their efforts as instrumental in strengthening the union’s standing in the state.
In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.
He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.
Eletuo called on all members to support the new executive in its efforts to elevate the association.
Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.
Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.
He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).
Stakeholders present at the event also delivered their goodwill messages.
Highlights of the event included  administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman.    .
By: Amadi Akujobi
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FG Intensifies Efforts To Reposition Tourism Sector 

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The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.
This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred  fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.
The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .
Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.
Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.
According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.
She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.
Musawa explained  that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.
“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.
In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.
Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.
“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.
By:  Nkpemenyie Mcdominic, Lagos
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Big Oil Reconsiders Previously Unattractive Destinations

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The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.
The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.
Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.
Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal
The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.
“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.
It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.
Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.
However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”
Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.
By Irina Slav for Oilprice.com
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