Oil & Energy
NGO Cautions On Quick Subsidy Removal
An NGO, Conscience
Nigeria, has urged President Muhammadu Buhari not be in a hurry to remove subsidy on fuel to avoid inflicting hardship on Nigerians.
The Executive Director of the NGO, Mr Tosin Adeyanju, gave the advice at a news conference in Abuja.
Adeyanju said that Nigerians were concerned that if government must deregulate or remove subsidy on fuel, certain fundamentals must be addressed, including those raised in 2012 when government wanted it withdrawn.
One of the fundamentals, according to him, includes the establishment of coastal refineries and effective turnaround maintenance of the existing ones.
“We call on Mr President to immediately commence building of several coastal refineries that are cost effective and not too bogus, and will be delivered to Nigerians in good time.
“He should also commence with immediate effect the turnaround maintenance of our refineries as well making sure that credible companies are engaged in their maintenance.
‘So that our local refineries can operate at least 80 per cent production capacity,’’ Adeyanju said.
Adeyanju also called on the president to diversify the country’s economy through the rejuvenation of the Ajaokuta Steel Company.
He expressed optimism that the company, if revived would create millions of genuine jobs for Nigerian youths.
Adeyanju also appealed to Buhari to review the 2015 budget and refocus it to ensure that 40 per cent of the budget’s capital expenditure was dedicated toward job creation for the youth.
“Mr President should not only build on the former administration’s programmes established toward youth empowerment.
“He should do everything possible to supersede what past government had done for the youths, ’’ he said.
Adeyanju said that if subsidy were removed without addressing the identified issues, Nigerians could go on the streets to protest the policy that would bring hardship to the people.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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