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Towards Effective Power Sector Reform

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The power sector is one of those sectors of the Nigerian economy that has received critical attention within the past 57 years of the corporate existence of the country as an independent state.
As part of measures to attain desired impact and maximal results in the power sector, vast treaties and hypothesis have been made over the past years, while billions of tax payers money have been sunked in.
The prospect of development, remains but a flicker, a mere shallow reflection of the expected breakthrough from the huge investment invested into the sector.
However, as the country marks its 57 independence celebration, Nigerians are desirous of the full dividends of the huge investment in the power sector.
The fact been that effective power supply is what is needed in the country to drive entrepreneurial growth and enterprise development among the teeming masses and create job opportunities.
Pundits have blamed the challenges in Nigeria power sector reforms on many factors.
One of such factors identified is the use of similar approach or methodology in solving power sector problems, thereby resulting in same old inefficiencies.
Apart from apparent diversion of fund meant for the resuscitation of the ailing sector, the lack of input of real technocrats and experts in policy making and implementation, has also been pointed as been responsible for the woes in the sector.
Musing over the prospect of development in the Nigerian power sector, an expert, Engr. Isaac Adekanya said the lapses in the sector reform were traceable to some missing links in the operation of the power sector.
Adekanya, who is the Port Harcourt branch Chairman of the Nigeria Institute of Electronic, Electrical engineers, disclosed in an exclusive interview with The Tide, that the Nigerian power sector was yet to attain synergy in the three major areas that constitute the sector, such as Power Generation (Genco) power Distribution (DISCO) and Power Transmission (Transco).
According to him, not all the power generated in the country are transmitted and distributed to the end users.
“There are a lot of technical challenges in the generation, transmission and distribution of power in the country. Most of the power projects carried out in the country have no consideration for the distribution and transmission of the generated electricity to the end users. An example is the Omoku power project, which is a huge investment but had not been able to make maximal impact because of the challenges of transmission and distribution”.
Adekanya, who is also a fellow of the Nigeria Society of Engineers said similar challenges exist in the transmission of generated electricity to the National Electricity Centre at Osogbo. He said most of the power generated are wasted along the line before they get to the end users.
In his view, the concentration of generated electricity at the Osogbo Power Centre where the needs of consumers across the country are decided may not be serving the best interest of the various sections of the country.
He noted that such discretionary measures in the allocation of power may not truly represent the electricity demands of the various states of the nation.
Alternatively, Engr. Adekanya suggested that power generation, transmission and distribution should be based on comparative economic advantage, as the various parts of the nation have peculiar natural advantages in strategic location of energy sources.
“The various parts of Nigeria are disposed with vast energy sources that can be explored based on comparative advantage. In the north, there is abundance of solar energy source, in the middle belt there are rivers that can be harnessed for hydro power generation while the Niger Delta is blessed with enormous gas potentials for thermal energy.
“These energy sources can be explored fully to serve the power need of the various areas where they are located. The idea of evacuating generated power to Osogbo before distribution may not be entirely the best option for the country. Nigerians are in serious need of electricity to do their business. It is regrettable that at 57, the country still runs a generator economy”.
Adekanya, who is a proponent of diversification as the panacea for effective power sector reform, also faulted the allocation of the DISCO by the federal government.
He said the DISCOs were given out on political consideration rather than competence and liberalisation.
He noted that the conspicuous absence, or non involvement of experts with the requisite technical knowhow in the DISCO stifles development in the sub-sector, as those involved are more concerned about profit motive than effective service delivery.
He therefore advocated for full liberalisation of the DISCO for more players to be involved on a note of competition in service delivery as in the case of the telecommunication industry.
In his submission, another expert in renewable energy, Elder Elkanah Hanson said the future of Nigeria’s industrialisation depended on renewable energy which is a global phenomenon.
Elder hanson, who spoke with The Tide correspondent in Port Harcourt recently, said nations of the world are taking advantage of renewable energy to serve their electricity needs.
The elder statesman, pointed out that Nigerian electricity laws were based on colonial orientation and as such do not serve our peculiar development need.
To attain sustainable development in power sector reforms, he called for a total revocation of the obsolete electricity laws and adoption of inventions that are best suited for our polity.
Elder Hanson, who described the concentration of generated electricity at Osogbo as “economic piracy”, said the major problem with Nigeria was its behemoth federal status, that disposses the component units of the country from developing at their own pace.
He called for total restructuring of the centralised federal structure of the country and added that electricity should not be the exclusive reserve of the Federal Government.
“At 57 Nigeria has come of age and should not be toddling again. It is ridiculous that we are still battling with defects in the power sector, our value system must change. The fight against corruption must be thorough and complete. The Federal Government should declare a state of emergency in the power sector. The lumping of power ministry with works and housing is wrong. The power ministry should be made to stand on its own and an expert should be saddled with the responsibility of running the ministry”.
Meanwhile, the Federal Government has stated that it was not against states building their own power projects to support incremental power.
Minister of power, works and Housing, Babatunde Fashola disclosed this at a meeting of the National Council of Power (NACOP) held in Jos, Pleateau State recently.
The minister explained that the law allows states to embark on electricity distribution under license through the Nigeria Electricity Regulatory Commission (NERC).
Fashiola further hinted that in the Power Sector Recovery Programme (PSRC) of the Federal Government, states are vested with enormous responsibilities to ensure that, “their residents comply with safety standards on building by not building on the right of way of 332/133,33 and 11KVA lines”.
He also urged states to encourage their residents to pay for consumed energy while the metering issue and estimated billing is addressed.
Fashola, who described the meter system as cost effective, called on state governments to set up debt verification teams with audit capacity to ascertain the debt profile and develop a payment plan which can be budgeted for. This he noted will help liquidity issues and contribute to the power sector reforms.
Considering the importance of power in the economic development of any nation, the 57th Independence anniversary of Nigeria offers an avenue for a critical review of the power sector for better service delivery.
The fact remains that competence and not politics should be the criteria for participation in the power sector. This will give more room for innovation and efficiency.

Taneh Beemene

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Oil & Energy

REA, Mente Energy Sign MoU On Renewable Energy Localisation

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The Rural Electrification Agency (REA) and Mente Energy Limited have signed a Memorandum of Understanding (MoU), formally launching the Renewable Energy Localisation and Industrialisation Programme (RELIP).
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
Speaking during the signing ceremony at the agency’s headquarters in Abuja, the Managing Director/Chief Executive Officer, REA, Abba Aliyu, said Nigeria built significant momentum in decentralised renewable energy but until now, the economic value of that deployment has largely flowed offshore.
“By organising our national demand and building the institutional architecture to support domestic manufacturing, we are creating the conditions for investment, jobs and industrial growth to take root on Nigerian soil.
“The REA is proud to lead this programme and we welcome partners – Nigerian and international – who share our commitment to building a clean-energy industrial base that serves Nigeria first,” he said.
The founder and managing partner of Mente Energy, Tolu Osekita, said Nigeria’s renewable-energy market is one of the most significant industrial opportunities of this decade.
Osekita said “What RELIP does is to put structure around that opportunity so that capital of every origin can invest here with greater confidence and at greater scale.
“Grounded in Nigeria-first principles, this is about catalysing the maximum economic opportunity for our country – factories, jobs, investment and industrial growth built on Nigerian soil, in partnership with the world.
We are proud to stand alongside the REA in leading this work”.
The MoU establishes a five-year framework for strategic collaboration – with RELIP identified as the first priority workstream am phase 1 will be delivered over approximately six months, establishing the commercial, analytical and institutional foundations required for NREIF launch and subsequent capital mobilisation.
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
It would be noted that Nigeria is one of Africa’s most dynamic renewable-energy markets as both the public and private sectors adoption is accelerating with millions of solar home systems, hundreds of mini-grids and growing commercial and industrial uptake.
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Stakeholders Seek Unified Action To Accelerate Methane Abatement In Oil, Gas Sector

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Stakeholders across the government, civil society and industries have called for stronger regulatory coordination and accelerated action on methane abatement in the nation’s oil and gas sector.
They made the call at the Methane Emission Abatement in the Oil and Gas Industry Regulatory Dialogue organised by the Stakeholder Democracy Network (SDN) alongside other partners, in Abuja, at the weekend
The Country Director, SDN, Mrs Florence Ibok-Abasi, insisted that fragmented regulatory approaches have slowed progress in the past, noting that the current engagement aimed to align priorities, strengthen enforcement, and build lasting institutional coordination.
“We are here to align priorities, learn from our challenges, break down silos, and build genuine coordination among all stakeholders.
“Each of you brings critical knowledge; upstream expertise, midstream insights, climate policy perspective, civil society accountability, and legislative oversight. Our strength lies in bringing these together.
“Improved inter-agency cooperation is not optional; it is the foundation for better data, stronger enforcement, and credible progress toward Nigeria’s global methane pledge. We have the talent to make this work”, she said.
Ibok-Abasi said the gathering marked a turning point in efforts to harmonise regulatory approaches, describing collaboration as critical to achieving meaningful climate outcomes.
While noting that the dialogue was the first of two, the SDN boss stated that a second dialogue would be reconvene to advance initiatives and collaboration that would ensure improvement of methane abatement in the oil and gas sector.
Also speaking, the Head, Environment and Climate Change, SDN, Dr Jude Samuelson, highlighted methane reduction as one of the fastest and most effective strategies for tackling climate change globally.
Samuelson noted that the initiative was, therefore, designed to ensure regulators and operators work hand in hand to deliver measurable results.
He, however, identified the high cost of methane abatement technologies as a major constraint, calling for stronger government-industry partnerships to make such solutions more accessible and scalable in Nigeria.
“One of the recommendations that SDN has is to see how the government can work with the operators to ensure that the operators afford these technologies.
“We are also interested in bringing some of the new technologies from methane emission abatement down to the country to see how the technologies could be deployed in the oil and gas sector to ensure that emissions reduce drastically”, he said.
Speaking from the climate policy perspective, the representative of the National Council on climate Change (NCCC), Chukwuemeka Okebugwu, said methane remained a significant contributor to global warming, particularly in oil-producing countries like Nigeria.
“The oil and gas sector is a major source of methane emissions.
“So regular dialogue helps us develop practical solutions and also identify opportunities, including converting methane into useful energy instead of wasting it,” he said.
On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saudi Mohammed, highlighted the need for methane abatement.
Represented by the Technical Adviser on  Health, Safety Environment and Community, Odafe Atebe, Mohammed,
described methane abatement as a cost-effective pathway for Nigeria to achieve climate goals without compromising energy security.
In his words, “Fragmented approaches will not deliver the scale of impact required. We must move beyond discussions to coordinated action across the entire oil and gas value chain”.
On his part, Senior Manager, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ibrahim Jilo, noted that while progress has been made, challenges remain in ensuring compliance across a diverse and evolving industry landscapNRGIe.
Jilo emphasised the importance of tailored approaches, capacity building, and sustained engagement with operators.
Representative of the Civil Society Group, Natural Resource Governance Institute, Tengi George- Kalu, who spoke from the civil society standpoint, urged stakeholders to ensure that methane reduction efforts translate into tangible benefits for communities affected by oil and gas operations.
“Collaboration is key to moving from policy ambition to real implementation and enforcement,” she stated.
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NITDA, NNPC Partner To Drive Digital Transformation In Energy Sector

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The National Information Technology Development Agency (NITDA) and the Nigerian National Petroleum Corporation (NNPC) are deepening collaboration to accelerate digital transformation in Nigeria’s energy sector.
The collaboration is being championed through the Research, Technology and Innovation (RTI) Unit of the NNPC.
In a courtesy visit by the Director, RTI Unit of the NNPC, Olatomiwa Olaniyi, to the Director-General, NITDA, Malam Kashifu Inuwa, the duo explored strategies to leverage emerging technologies to reposition the nation’s energy industry.
Speaking, NITDA boss, Inuwa, stressed the need for the NNPC to shift from traditional dependence on the exploitation of oil and gas resources to a more innovative model.
According to him, the innovative model would be anchored on the exploration of technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and robotics, among other emerging technologies.
Inuwa said information technology had become a critical enabler across sectors, adding that innovation would play a key role in shaping the future of energy production, efficiency and sustainability in Nigeria.
He outlined NITDA’s strategic priorities to include promoting digital literacy, nurturing local talent, strengthening research ecosystems and advancing indigenous technology solutions.
According to him, reducing reliance on foreign technologies while encouraging home grown innovation is vital to achieving digital sovereignty and sustainable economic growth.
The NITDA boss also said the agency would support NNPC in developing a robust innovation pipeline to connect the company with Nigeria’s growing startup ecosystem.
He said startups would be engaged through incubation programmes and innovation challenges to develop practical solutions tailored to the oil and gas industry.
Inuwa further scored that NITDA’s initiatives aimed at fostering innovation among young Nigerians, including members of the National Youth Service Corps.
“Many of our corps members are already creating solutions to real-world challenges through the agency’s programmes,” he said.
Inuwa also said that effective implementation of the Nigerian Startup Act would be crucial in supporting emerging technology ventures and scaling ideas into commercially viable solutions.
Earlier, Olaniyi said the engagement was aimed at co-creating solutions and building a strong partnership framework to accelerate innovation across the energy value chain.
He emphasised that collaboration among government agencies, industry players and the technology ecosystem remained critical to achieving sustainable innovation.
Presenting the mandate of the RTI Unit, he said its focus was on driving excellence through innovation.
According to him, this would lead to improved operational efficiency, enhanced revenue generation and support sustainable growth across NNPC’s businesses, including upstream, gas, power and new energy.
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