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Towards Efficient Power Supply In Rivers

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A Gas Turbine Generating Station in Rivers State.

A Gas Turbine Generating Station in Rivers State.

The Rivers State Governor,
Chief Ezenwo Nyesom Wike in his maiden address during his inauguration on May 29, 2015 reeled out his action plan, among which was to enhance the Rivers people’s prosperity through power supply and energy security. He promised to ensure the completion of on-going electrification projects.
According to him, as an initial step towards tackling the challenges of irregular power supply before making fresh investments, “we will conduct a forensic audit to find out the reasons behind the failure of the state to reap maximally from the huge investments already committed to the power sector by the immediate past administration. We will also review all issues relating to the secret privatisation and or sale of the government investments in power and other related projects without due process”.
Without wasting time, the governor has set up a Judicial Panel of Inquiry to probe the alleged sales of four Gas Turbine Generating Stations. They are Trans-Amadi  (Port Harcourt) Station – 3x20mw solar GT, Omoku (ONELGA) Gas Turbine – 3x20mw solar GT, Eleme (ELGA) Gas Turbine – 1x20mw (G.E. Engines) and Afam Gas Turbine Station.
These were projects initiated and completed   through the former Governors Peter Odili  and Governor Amaechi’s administration’s then decision to embark on an extensive construction of the State Power Grid System (450mw) projected over 10 years period to feed all the 23 local government areas in the state.
There were also two others – Soku (AKULGA) Station 2x10mw  and Bonny (OLGA) Station – 2x10mw involved in the scheme as a reintegration into the new grid system.
The Rivers State government Policy Strategy for the development of power infrastructure is structured to achieve economic empowerment of its citizenry and to raise  the living standards of the people through the establishment of sustainable industrial base grassroots programme. This actually informed  Governor Odili  to initiate the gas turbine projects. Now, Governor Wike irked by the present scenario in the power sector of the state has decided to find out the root cause of the incessant epileptic power supply in the state.
Some people have misconstrued Governor Wike’s intention as an action to witch hunt the immediate past governor Chibuike Rotimi Amaechi while some view it as a cheap way of gaining or currying the favour of Rivers people.
Whichever way anyone might think about the probe into the alleged sales of the four gas turbine plants, the decision of Governor Wike is in the right direction and in the good interest of the entire state and the people.
In the advanced countries of the world, energy availability is highly prized so much so that living standard is a measure of the National Energy Index or industrial development. Some schools of  thought believed that Africa’s under-development was initiated by Europe during the heinous slave trade that was alien. But today in several countries, under development has become a trademark in transitional societies.
Development is a function of growth and change in the economic, political and social institutions just as a positive change in the people’s lives gives eloquence to dismal economic and social deprivation. Rivers people have suffered for decades despite the lavish generosity God has bestowed on the state, hence every leader  of the state must strive to put in place a programme of infrastructural development designed to raise the moral tone of a people whose poverty profile ranks the worst in the midst of plenty in the whole world.
Rivers people deserve an aggressive rural and urban electrification programme, economic empowerment / poverty alleviation, among others that need to be factored on both short and long terms.
Electrification by means of Isolated Diesel Generating Stations as a stop-gap should be a measure for short-term relief while long-term programme should embrace a two-system generation and supply such as electrification by means of direct inter-connection to National grid and gas turbine power plant / grid system.
The Odili administration had put both long and short-term objectives for electricity supply for the state to achieve reliable power supply to rural communities.
It has also provided standby power plant to boost existing state government development programmes / efforts in the rural areas, establish a sustainable industrial base in the rural areas as well as build a bridge to link government and the rural population by creating development impacts and economic  empowerment of the rural dwellers.
One would think that this is in line with the present administration’s plan to develop more urban towns from Ahoada, Bori and Degema. It is our belief that adequate supply of reasonably prized energy is an essential ingredient for meeting the basic needs of society, stimulating and supporting economic growth as an index of industrialisation. The Wike administration as we can see, has taken electrification as a major policy focus and the thinking now is the urgent need to establish a sustainable industrial base in the rural areas of the state to arrest the rural-urban drift syndrome and provide a catalyst for industrial growth of small and medium scale industries. Such policy drive will provide  a conducive atmosphere for employment generation and poverty alleviation at the grassroots.
Government should be faithful in the implementation of its development policies, especially as it concerns electrification projects conceived as prime movers with multiplier effects in various catchment areas of the state. The rise in power consumption has assumed a progressive surge since the end of the Nigerian civil war in 1970 and the national grid has become weak and fragile to cope with the insatiable power demands, so there is the need to revolutionise the concept of gas turbine power plant application as an alternative power generation system to the wailing and dwindling national grid now in the control or hands of private power distributors.
The Rivers State government, beginning from the Odili’s administration to Amaechi’s regime has spent billions of  Naira to acquire, install and operate four gas turbine power generating plants but the power supply situation has not witnessed or produced any positive result. It is important that before this administration continues to invest in power supply, it should find out the actual cause of the problems and factors militating  against power generation and distribution in the state. These problems underscore the necessity for the on-going probe so as to know the way forward in the state’s power sector. Governor Wike’s decision is in order.
The reason for the probe is not far-fetched because we don’t have to remain stagnant  and expect things to normalise without certain decisions backed with actions.
More than 75 per cent of the power transmission / distribution infrastructure on the national grid in the state were constructed and funded by the Rivers State government  without any refunds from the federal government or the agencies concerned after commissioning. In adding, other payments have been disbursed to the power agencies for supply / installation of distribution transformers but all these efforts have yielded no satisfactory result.
Rivers State is playing host to a number of strategic and heavy power consuming industries with already congested radial feeder which is grossly inadequate to meet the ever-rising power demands in the state, so it has become expedient if not compelling that the Federal Government commences work on the construction of more transmission infrastructure to improve power flow into Rivers State. The Rivers State Government in collaboration with oil companies in the state such as Shell Petroleum Development Company (SPDC), Agip, Total and others should work out ways of providing constant power to the rural communities through gas turbine plants.
Investments in gas turbine power generating electrification scheme is a profitable venture, not in terms of cash returns, but will continue to attract favourable consideration as a reliable power plant in the state. The operation of gas turbine as a power plant permits wider flexibility in fuel application, improves system stability under designed load and holds good hope for low capital investments per megawatt output in the long-term. It is understood that major electricity generation / supply industry activities are replete with difficult problems and sometimes unpredictable failures requiring immediate remedial actions to address the incipient faults through efficient maintenance of all power system plants and equipment. This requires the total commitment of government in training skilled manpower and staff mobility as well as handling the challenges in equipment and gas delivery.
Attention must be given to poor maintenance culture and power equipment replacement policy caused by the former administration. There is no gainsaying that one of the most effective means of power generation in the world today is through the use of gas turbine engine, but it is capital intensive and very expensive to maintain.
Therefore, one sure way of sustaining the present Rivers State government-owned gas turbine projects is through a well-articulated revenue generation system.
Gas turbine engines are made to function non-stop for about 30,000 hours (4 years) before it is due for major servicing. So, by implication, consumers are expected to have an uninterrupted power supply for four years. This makes it mandatory for beneficiaries of the project to pay the required revenue in order to ensure sustainability of the project.
Certainly, consumers would be pleased to pay when they begin to enjoy steady power supply. By doing that, the state government has to enact a legislation for power generation, transmission and use in the state.  This will ensure uninterrupted power supply in Rivers State just like in the advanced countries.

 

Shedie Okpara

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Nigeria’s ETF correction deepens as STANBICETF30, VETGRIF30 see 50% decline in a week

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Nigeria directs all oil, gas revenues to federation account in sweeping reform
Nigerian President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, in sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.
Under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins. The presidency said those funds will now be paid into the federation account and appropriated by the government.
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NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts. Under the new directive, all revenues under these arrangements will flow directly to the federation account, while the company will instead receive appropriated management fees.
Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will likewise remit its revenues in full, with its cost of collection to be funded through appropriation.
Tinubu’s office said deductions enabled by the law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.
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BOI Introduces Business Clinic 

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The Bank of Industry (BoI) has introduced a business clinic model designed to diagnose, treat and rehabilitate the Micro, Small and Medium Enterprises (MSMEs) to ensure long-term growth and sustainability.
The Divisional Head, Business Development, BoI, Dr Obaro Osah, made this known at the bank’s Thrive Summit with the theme: “Driving Growth through Innovation and Financial Empowerment” on Tuesday in Lagos.
Osah noted that traditional banking often treated businesses as mere account opening and management relationships.
He said the BoI business clinic model was created to reimagine the essence of a bank as a specialised teaching hospital.
According to him, just as a hospital requires a thorough diagnosis before service treatment/surgery, the bank must analyse the structural health of a small business before injecting capital.
“Financial distress is often just a symptom, the disease lies in operations and adopted philosophy, strategy, or governance,” he said.
Osah noted the many MSMEs, in spite of their potential, suffer from recurring ailments: restricted cash flow, poor operational structure, lack of proper packaging and market access, poor management among others.
He said the bank’s triage and vital signs included screening SMEs by maturity stage, pulse check to assess cash flow and liquidity and market temperature to evaluate competitive landscape.
Osah said after these evaluation, advanced diagnostics, prescriptions, surgical interventions and recovery and rehabilitation would be carried out where necessary.
“Prescription without diagnosis is malpractice and the Thrive Summit ensures we treat the root cause, not just the symptoms,” he said.
The Chief Strategy and Development Officer, BoI, Dr Isa Omagu, noted that MSMEs needed more than finance to succeed.
Omagu said they needed structure, advisory, capacity building, governance, digital readiness, access to market information and the right business infrastructure to operate and scale effectively.
He said as part of the bank’s 2025-2027 Corporate Strategy, the business clinic would expand BoI’s value proposition to broaden its products and services to better reach target segments.
Omagu said by offering structured business advisory and project development support, the clinic would enable the bank deliver deeper, more holistic value to MSMEs beyond financing.
“This vision of a structured, holistic business clinic; one that strengthens MSMEs across all core business functions and makes them more bankable, competitive, digitally enabled, and sustainable, is fully aligned with our strategic initiative to develop and roll out non-financial product offerings.
“Through this initiative, BoI commits to providing business advisory for MSMEs and project lifecycle support for enterprises, and the business clinic serves as the practical platform through which this commitment comes to life,” he said.
Omagu urged MSMEs to apply the guidance received to strengthen structure, governance, and financial management.
He added that they must adopt digital tools and improve internal processes to boost competitiveness while engaging BoI as a long-term partner in building a resilient, scalable business.
Mrs Eniola Akinsete, Divisional Head, Sustainability, BoI, said adopting Environmental, Social and Governance (ESG), principles often led to business prosperity.
Akinsete, however, noted that in spite of the benefits, adoption challenges persisted.
She affirmed BoI’s support on the adoption of ESG Practices by the MSMEs.
Earlier, the Executive Director, Corporate Finance, Sustainability and Investments, BoI, Mr Rotimi Akinde, said the summit represented a shared commitment to building a stronger, more resilient business ecosystem in Nigeria.
Akinde stated that the business clinic created a platform for practical knowledge sharing where entrepreneurs and small business owners could gain actionable insights to overcome challenges and seize opportunities.
He said discussions would focus on critical areas that drive sustainable growth, including branding and marketing, financials and activities, human rights, human resources, raising capital for equity and technology.
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Dangote signs $400 mln equipment deal with China’s XCMG to speed up refinery expansion

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Nigeria’s Dangote Group has signed a $400 million equipment deal with China’s Xuzhou Construction Machinery Group to speed up the expansion of its oil refinery toward a planned 1.4 million barrels per day, the company said on Tuesday.
The additional equipment is expected to support major projects under construction across refining, petrochemicals, agriculture and infrastructure.
Dangote said the XCMG agreement would allow it to acquire a wide range of new heavy-duty machinery to complement existing assets deployed for the refinery build?out, which the company expects to complete within three years.
As part of the expansion, polypropylene capacity will rise to 2.4 million tons per year from 900,000 tons. Urea production in Nigeria will triple to 9 million tons per year, alongside an existing 3 million-ton plant in Ethiopia, positioning the conglomerate as the world’s largest urea producer, the company said.
The output of linear alkyl benzene – a key raw material for detergents – will increase to 400,000 tons annually, making Dangote the biggest supplier in Africa. Additional base-oil capacity is also planned in the programme.
Dangote Group described the equipment deal as a strategic investment aligned with its ambition to become a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” it said in a statement.
Owned by Nigerian billionaire Aliko Dangote, the $20 billion refinery began operations in 2024 after years of delays. Once fully operational, it is expected to reduce Nigeria’s heavy dependence on imported refined fuel and reshape fuel supply across West and Central Africa.
Reporting by Isaac Anyaogu; Editing by Anil D’Silva
The Nigeria-Slovenia Chamber of Commerce on Thursday urged the Nigerian business community to explore business opportunities in Slovenia to widen their horizons.
The Tide source reports that the chamber made the call at its 2025 Last Quarter Business Forum held in Lagos State.
The forum is the chamber’s routine session aimed at informing businesses about the latest opportunities of mutual benefit between both countries, encouraging people to explore them to improve their livelihoods.
Speaking at the event, which was attended by businessmen and trade regulatory agencies, the Director-General of the Nigeria-Slovenia Chamber of Commerce, Mr Uche Udungwor, described the relationship between the two countries as a bilateral economy.
Udungwor said the body, established to build, promote and facilitate trade and investment activities between Nigeria and Slovenia, had positively impacted both nations.
He said the mandates of the chamber include: “To provide a forum representative of Nigeria and Slovenia’s interests for the development and improvement of commerce and industry between the two countries.
“Also, to create, promote and sustain broad exchanges and interactions in commercial, industrial and economic fields between the countries.
“To promote cooperation on technical and scientific innovations between institutions of the countries through the exchange of regular information on trade and investment opportunities.
“To advise members on opportunities, challenges, legislation or otherwise arising from the pursuit of trade between Nigeria and Slovenia, and to encourage the exchange of ideas and views on trade matters within the context of trade promotion between both countries.”
According to him, Slovenia’s major imports include organic chemicals, agro products such as cocoa beans, iron and steel/metal scraps, wood, and mineral fuels/petroleum products.
He said the trade balance between Slovenia and Nigeria is “not quite encouraging”, citing United Nations COMTRADE data indicating that Slovenia’s imports from Nigeria in 2022 amounted to $5.7 million.
Udungwor described the Republic of Slovenia, located in Central Europe with about 2.1 million inhabitants, as a promising business frontier for Nigerians.
He noted that the country features Alpine mountains, thick forests and a short Adriatic coastline.
“Slovenia, which borders Italy to the west, Austria to the north, Croatia to the south and southeast, and Hungary to the northeast, has a 2024 GDP of 72.49 billion dollars, a sound economy and a low-risk business environment.
“Slovenia has been a member of the European Union since 2004 and of the Schengen Group since 2007. It is also a member of the Organisation for Economic Co-operation and Development (OECD).
“Slovenia today is a stable, vibrant democracy that offers a stimulating business environment and represents a bridge between the Balkan, Central European and Western European countries.
“The Nigeria-Slovenia Chamber of Commerce is at your service to provide up-to-date information and advice about Slovenia’s economy, business opportunities, companies, products and services for the mutual benefit of all,” he said.
A participant, Mr Muyiwa Ajose, said his partnership with the chamber had bolstered his agro exports to Slovenia.
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