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Expert Lists Power Generation, Transmission Challenges

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Chief Executive Officer,
Delamol International Limited, a power consultancy firm, Mr Idris Mohammed, says inadequate power facilities for generation and transmission are the major challenges bedeviling the nation’s power industry.
Mohammed said this in an interview with newsmen in Abuja
He said for Nigeria to record outstanding improvement in power sector, there was need to provide adequate facilities to generate and wheel electricity to the distribution companies.
“The greatest challenge to Nigerian’s power sector is that of generation and transmission infrastructure.
“A lot is needed to be done to reposition or to rewrite the map of Nigeria power sector from no light to light, from light to stable light, to facilitate the industrial take off of Nigeria,” Mohammed said.
He said that a significant improvement in the nation’s power supply would trigger economic prosperity for the country.
According to Mohammed, adequate power is needed to alleviate the high rate of poverty in the country.
“When that is done, we believe that the economic index of Nigeria will move to a much higher level and the seeming poverty level in Nigeria will be addressed.
“This is because there will be room for full scale employment opportunities for our talents who are in want of job.”
Mohammed said that part of the challenges being encountered by some DISCOs was their inability to understand the workings of the electricity business when they bought over the companies.
He said that some of the new owners of the company were in a hurry to take over the business without making adequate effort to understudy it.
“At the time the new owners took over, they knew nothing about the business they were buying; they are supposed to maintain a succession plan to enable them to meet the demand of the business.
“They did not bother to study the business and they went further to disengage the workers that knew how to manage the business and that led to the drop in services.”
He also said that a lot of the distribution companies operating in the nation’s power sector did not have the required capacity to take the electricity wheeled to them from the transmission company.
This, he said, was resulting in the rejection of electricity load by some DISCOS.
Mohammed said that the trend of rejecting electricity load because of inadequate facilities was a sad development to the nation’s power sector.
Mohammad, who was also a former Managing Director of the Kaduna Electricity Distribution Company (KEDC), said he was able to reduce the challenge of estimated billings based on the metering plan adopted during his tenure as CEO of the company.
“What we did was that we embarked aggressively on metering of our customers; we had our metering plan that we implemented and up to the time I Ieft office, that metering plan was sustained.
“Many of our customers were metered and because they were metered, there had been no fear or issue of estimated billing and they were able to pay their bills on time.
“That changed the fortunes of the company because it was able to hit a record of cash collection of N1.35 billion revenue. That record, till today, has not been achieved in KEDC,” he said.
Mohammed, however, expressed belief that the nation’s power sector would develop further.
He said the expectation was based on the resolve at the Powering Africa Nigeria Conference by international investors and other stakeholders to invest in the sector.

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PH Refinery Fully Operational – NNPC

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The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Port Harcourt Refining Company (PHRC) remains operational and continues to produce on-spec refined petroleum products.
Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye,  disclosed this in a statement on Wednesday.
Je said: “The Nigerian National Petroleum Company Limited (NNPC Ltd.) wishes to clarify that despite a minor incident at a section of the Port Harcourt Refining Company (PHRC) earlier today, the plant remains operational and continues to produce on-spec refined petroleum products.
“NNPC Ltd assures the public that there is no cause for concern, as all sections of the recently rehabilitated plant are in full operation.”
The company had earlier dismissed reports of an explosion at the Port Harcourt Refining Company in Rivers State. The state-oil company described the report as ‘false’, noting that what occurred at the refinery was a flare incident, which has been contained fully.
Last November, NNPC Ltd. said the Port Harcourt refinery had commenced production after a long period of rehabilitation.
It said the refinery began truck loading of petroleum products on Tuesday, November 26, 2024.
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Revenue Mgt: NEITI Wants Improved Fiscal Discipline, Transparency  … As FAAC Disbursement Hits Record N15.26trn

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The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for improved fiscal discipline and enhanced transparency in revenue management at all levels of government.
The call is part of recommendations by NEITI in its Federation Accounts Allocation Committee (FAAC) Quarterly Review, which stated that the FAAC disbursed a record N15.26 trillion to the federal, state, and local governments in 2024, reflecting a 43 per cent increase from the previous year.
The FAAC report said  FAAC the surge underscores the impact of key fiscal reforms, including fuel subsidy removal and exchange rate adjustments, which significantly boosted oil revenue remittances.
The report, Presented by the Executive Secretary of NEITI, Ogbonnaya Orji, the report attributed the increased disbursements to these policy changes, which reshaped the country’s revenue landscape.
According to a statement by the Acting Director, Communication and Stakeholders Management, Obiageli Onuorah, it assessed the fiscal sustainability of government borrowing and the implications for oil-producing states benefiting from the 13 per cent derivation fund.
A breakdown of the N15.26trillion distributed among the three tiers of government shows that the Federal Government received N4.95 trillion, while state governments collectively received N5.81 trillion, and Local government allocations amounted to N3.77 trillion.
State governments recorded the highest percentage increase, with allocations rising 62 per cent from N3.58 trillion in 2023.
Local government allocations increased by 47 per cent, while the federal government’s share rose by 24 per cent, up from N3.99 trillion in the previous year.
The fourth quarter of 2024 saw the highest quarterly disbursement on record, reaching N4.214 trillion, reflecting the impact of sustained revenue growth and fiscal policy reforms.
FAAC attributed key drivers of the record disbursements to major fiscal reforms implemented by the Federal Government.
It said another factor is the removal of fuel subsidies in mid-2023 eliminated deductions that previously reduced distributable oil revenue, leading to increased remittances to the federation account.
It said exchange rate liberalisation also played a crucial role, as the depreciation of the naira boosted naira-denominated mineral revenues by over 400 per cent.
FAAC further said higher global crude oil prices and improved domestic production contributed to increased earnings from the petroleum sector.
Despite these gains, however, the report warned of inflationary pressures, rising debt servicing costs, and fiscal uncertainty for states heavily reliant on oil earnings.
NEITI emphasised the need for proactive measures to stabilise the exchange rate, curb inflation, and strengthen non-oil revenue sources to ensure long-term economic stability.
State-by-State analysis of the disbursement shows that Lagos State received the highest FAAC allocation in 2024, totalling N531.1 billion, followed by Delta with N450.4 billion and Rivers with N349.9 billion.
Akwa Ibom and Bayelsa States also ranked among the top recipients, with N329.2 billion and N270.4 billion, respectively.
Nasarawa received the lowest allocation of N108.3 billion, followed by Ebonyi with N110 billion and Ekiti with N111.9 billion.
Six states — Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano — each received over N200 billion, collectively, accounting for 33 per cent of total state allocations.
In contrast, the six lowest-receiving states accounted for only 11.5 per cent.
The report highlighted the widening fiscal disparity between states, noting that Lagos, Delta, Rivers, and Akwa Ibom collectively received N1.49 trillion, a sum more than three times the total allocation of the bottom four states — Kwara, Ekiti, Ebonyi, and Nasarawa — which stood at N442.4 billion.
In terms of debt deductions and fiscal sustainability, debt servicing deductions from state allocations amounted to N800 billion, representing 12.3 per cent of total state disbursements.
Lagos State recorded the highest debt deductions, with N164.7 billion, accounting for over 20 per cent of total deductions.
Kaduna State followed with N51.2 billion, while Rivers and Bauchi also saw significant deductions of N38.6 billion and N37.2 billion, respectively.
The report raised concerns over the debt-to-revenue ratios of many states, particularly those with high debt burdens but lower revenue allocations.
NEITI urged governments to adopt conservative revenue projections to prevent budget shortfalls and improve fiscal management to ensure debt sustainability.
In making other recommendations, NEITI urged authorities to increase savings in the Excess Crude Account (ECA) to mitigate future revenue shocks and to strengthen non-oil revenue generation to reduce dependence on FAAC allocations.
The report also recommended measures to stabilise the exchange rate, curb inflation, and ensure conservative budgeting for crude oil production and pricing.
It further stressed the need for governments to prioritise job creation, poverty reduction, and economic stability while maintaining fiscal transparency in line with Open Government Partnership (OGP) and Extractive Industries Transparency Initiative (EITI) commitments.
NEITI reiterated the importance of leveraging its findings to hold all levels of government accountable for the prudent management of public funds, particularly revenues generated from the extractive industries.
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Trans Niger Pipeline In Rivers Resumes After Fire Incident 

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The Trans Niger Pipeline in Bodo Community, Gokana Local Government Area of Rivers State belonging to Renaissance Africa Energy Holdings has resumed operations after a fire incident on Monday.
A company source, which spoke to The Tide’s source on condition of anonymity, said the pipeline was tested and it passed the integrity, saying there was no blast on the facility.
According to the source, “The pipeline is back in operation. First of all, we had no blasts or explosions in our facilities. We had an unauthorised entry from the operations. Then we sent a team there. The team saw that the site had been accessed.
“We got a call, and a team went out and saw that there were attempts at excavation and arson. But of course, the fire had burnt out. They did an inspection, and there was an adjacent pipeline.
“They tested that and it passed the integrity test. I think the operations went through that adjacent pipeline. Operations are ongoing as we speak”.
The TNP transports 450,000 barrels of crude oil per day to the Bonny Export Terminal, using a pipeline network.
Renaissance Africa Energy Holdings just completed the landmark transaction between itself and Shell to acquire the entire equity holding in the Shell Petroleum Development Company of Nigeria.
Reports of an explosion on the pipeline were one of the reasons President Bola Tinubu declared a state of emergency in Rivers State.
Confirming the incident on Tuesday, the Rivers State Police Public Relations Officer, Grace Iringe-Koko, said the fire was noticed on Monday night during a security patrol.
According to her, Renaissance was immediately altered and the company shut down the affected pipeline and activated safety measures.
While saying there was no further threat to residents or the environment, the PPRO revealed that two individuals have been arrested for questioning as part of an ongoing investigation into the cause of the incident.
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