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On Melaye’s Power Sector Exposé

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Senator Dino Melaye, representing Kogi West Senatorial District in the National Assembly (NASS) stirred the hornet’s nest recently as he took a swipe at the Nigeria’s power sector, describing it as reeking of corruption.
Acting on the mandate and directives of the upper legislative chamber, the Kogi-born Senator during plenary, presented a substantial motion on what he referred to as “series of financial abuses in the power sector”.
Apparently securing the nod of his colleagues on the presentation of the motion through a voice vote, Melaye went ahead to expose the alleged financial impropriety within the power sector.
Citing Order 42 of the Senate Standing Rule, Melaye, who is renowned for his knack for controversy drew the attention of his colleagues to the $1.35 billion allegedly squandered within the power sector.
He explained that about $1 billion Eurobond raised in 2003 to fund key power sector projects was allegedly spent by officials of the Ministry of Power without appropriation and feasibility study.
According to him. “In July 2003, the Federal Government raised $1 billion from Eurobond issue, from which $350 million was given to Nigeria Bulk Electricity Trading Plc (NBET), in 2014, this money was stolen in installments”.
He added: “Sometime last year, the ministry of power came up with an idea of a project they called Afam Fast Power to build new generating power plants to add power to our grid, so far $35 million has been spent by the ministry of power on the Afam Fast Power project without appropriation or detailed feasibility study”.
The motion also sought to know how $29 million was purportedly paid to General Electric for turbines, while other firms received $6 million for same project.
Senator Melaye in his vintage hyper critical posture, urged fellow senators to carry out thorough investigation on the matter in line with the anti-corruption fight of the Federal Government.
Senator Melaye’s revelation of the festering rot in the power sector has put the ill-fated sector in the eye of the storm, with its activities now placed under strict public scrutiny.
Lending their analytical views on evolving activities in critical sectors of the Nigerian economy, such as the Nigeria National Petroleum Corporation (NNPC) contract scan, pundits are of the view that the content of Senator Melaye’s motion should not be swept under the carpet.
A Port Harcourt-based lawyer, Barr Barivule Kpobe, who commented on the alleged power sector fraud as revealed by Melaye, said Nigeria power policies over the years have been a mirage.
According to him, “the more you look, the less you see paxiom best portrays the trend of activities in the power sector”.
“The Nigeria power sector has gulped billions of tax payers’ money but various attempts to fix the sector have slipped into institutional fraud and apparent misappropriation of funds”.
A public affairs analyst and Environmental sociologist, Dr Steve Wodu also expressed disappointment over the management of the Nigeria power sector and its attendant embarrassment on the psyche of Nigerians.
Speaking with The Tide in an interview the senior lecturer in the Department of Sociology, University of Port Harcourt, said the rot in the power sector was a reflection of the “tactical institutional failure in the country”.
Wodu noted that Melaye’s revelation was not the first time that such fraud was unearthed in the power sector, noting that the Nigeria power sector has been prone to mismanagement of funds over the years.
According to the university don, the lack of sustainable power supply in the country was the fallout of such institutional mess.
Wodu also picked holes in the anti-corruption campaign of the Federal Government.
He observed that the anti-corruption drag-net is yet to catch up with some people with obvious corruption stains who still move around with impunity.
“The Federal Government should be proactive in its anti-corruption campaign and ensure that the law takes its full toll on any one found to be corrupt, this will make the people to build confidence in the anti-corruption campaign,” he said.
In his view, an expert in renewable energy as alternative source of power supply, Elder Elkanah Hanson faulted Nigeria power policies, describing it as one of the most enduring “colonial legacies” in the country.
Speaking at a public function in Port Harcourt, recently, Hanson said the fraud in the power sector was as a result of unrealistic power policies which Nigeria inherited from the colonial masters without due consideration for the peculiar power demand of the country.
Elder Hanson called for total scrapping of Nigeria’s electricity laws and a paradigm shift to renewable energy as the source of power in the country.
According to him “a renewable energy is more convenient and cheaper to generate. Nigeria has the capacity to generate enough power supply for the entire country through renewable energy, we have to follow the global trend as we cannot orbit independently of the world”.
The expert also called for a total overhaul of the power sector with experts and technocrats taking the centre stage, and decried the present practice in the sector where participation in the sector is driven by political considerations and not expertise and service delivery.
On Melaye’s revelation, he called for the prosecution of all those linked with the scandal no matter how highly placed. In his postulation, a mechanical engineer, Festus Tor, said Nigeria’s economic woe was as a result of the failure of the power sector.
While commending the Federal Government over its efforts in reforming the power sector, he called on the Senate to carry out a thorough investigation on the alleged mismanagement of fund meant for the actualisation of the Nigeria Integrated Power Project (NIPP).
Tor also urged the government to encourage local technocrats and entrepreneurs through the provision of incentives to foster a more home driven and efficient power policy.
“Nigeria is a very big economy, and the only way we can compete with the rest of the world is through sustainable power supply. Nigeria technocrats should be encouraged to play key roles in policy formulation and implementation in the power sector”.
Tor also called for the review of the Nigeria power sector with proper involvement of states in the generation, transmission, and distribution of power.
An analyst, Mr Fidelis Nwiyor, who also spoke on the issue, commended Senator Melaye and the Senate in general over their move to investigate the management of the $1 billion Eurobond by the ministry of power.
He said the recent probe of the power sector by the Senate will test the strength and commitment of the National Assembly towards checkmating the appropriation and disbursement of public fund.
However, some analysts are also skeptical over the fact that Melaye’s motion might as well be another antic of the Senate to continue their intermittent feud with the executive.

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Dangote/NUPENG Feud: Tanker Drivers Disown ‘PTD Elders Forum ‘, Seek Impostors’ Prosecution 

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Petroleum Tanker Drivers(PTD), an affiliate union of the National Union of Petroleum and Natural Gas Workers(NUPENG), has disowned a group parading itself as the ‘PTD Elders Forum’ amid a feud with Dangote Refinery.
The drivers from across the Kaduna, Lagos, Port Harcourt, and Warri zones, during a Press Briefing, at the Weekend, described members of the said forum as fake impostors with no recognition under PTD or NUPENG constitutions and hired to wreck havoc on the union.
They appealed to security agencies to investigate and prosecute those behind the forum.
Speaking on behalf of Kaduna Zone, Bashir Izalan, said the group was unknown to PTD, stressing that Egbon’s leadership had been transparent and responsive to members’ welfare.
He noted that drivers benefited from union-backed insurance, medical support and intervention in workplace disputes.
Representative of the Lagos Zone, Itanola Abiodun, maintained that the so-called elders were not members of the union, pointing out that every legitimate PTD member belonged to a unit and zone.
He urged the group to identify their units if they were genuine members, insisting that they were “hired hands” out to destabilise the union.
In his words, “Everybody who belongs to a union has a unit and zone where that unit is located. Then, they have the PTD branch. Those units where they claimed they come from do not exist. We in those zones do not know them.
“Their names are not known to us at all. They should mention the units they belong to for discerning minds to vouch for their authenticity.
“They cannot even say the units or zone they belong to. They are not speaking for us. They are impostors, hired to wreak havoc in our union”.
From Port Harcourt Zone, Chukwudi Okafor, dismissed allegations that PTD leadership mismanaged check-off dues and loading fees, clarifying that the funds, contributed by truck owners, are used for drivers’ health insurance and welfare.
He said members were satisfied with how resources are managed, urging the government to support PTD.
Dennis Akore of Warri Zone alleged that the controversy was linked to former PTD members who lost out in the July, last year’s delegates’ conference, claiming that the group was attempting to regain control of the union after being voted out by drivers.
Earlier, NUPENG President, Comrade Williams Akporeha, and General Secretary, Comrade Afolabi Olawale, had also warned against the activities of the “PTD Elders Forum,” describing them as infiltrators working to sow disaffection within the union.
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GEIL To Unveil  $400m Indigenous Crude Oil Terminal in Rivers

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All is now set for the unveiling of the indigenous $400m Otakikpo Onshore Crude Oil Terminal in Rivers State, billed for Wednesday, October 8, and to be performed by the President, Bola Ahmed Tinubu.

The facility, developed by Green Energy International Limited (GEIL), operators of the Otakikpo field in OML 11, located in Ikuru-Town, in Andoni Local Government Area of Rivers State, is the first wholly indigenous onshore terminal built in Nigeria as the last of such facility, the Forcados Terminal, was commissioned back in 1971.
The unveiling would attract top government officials, including the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, Rivers State Governor, Siminalayi Fubara, and other major stakeholders across the nation’s oil and gas sector.
With the much struggling with declining production, pipeline vandalism, oil theft, and rising operational costs in recent years, the Otakikpo Onshore Terminal further underscores the Federal Government’s renewed efforts to restore investor confidence in the nation’s oil sector.
The Executive Director, Legal and Corporate Services, GEIL, Olusegun Ilori, in a Statement, last Thursday, said the terminal aligns with President Tinubu’s drive to boost crude oil production and address Nigeria’s long-standing evacuation challenges.

“This project is a strategic infrastructure that supports the administration’s commitment to raising output while reducing costs,” Ilori said.

On his part, the Chairman and Chief Executive, GEIL, Professor Anthony Adegbulugbe, described the terminal as a “game-changing national infrastructure.”
Adegbulugbe said “What we have achieved here is not just a storage solution, but a pathway for about 40 stranded oil fields to finally contribute to the economy”.
It would be noted that industry operators, over the years, have consistently highlighted evacuation bottlenecks as a major impediment to meeting the Federal Government’s production target of 3m bpd.
The Otakikpo terminal is expected to serve as a lifeline to more than 40 stranded oil fields by providing a reliable evacuation outlet, potentially unlocking millions of barrels of crude previously trapped underground.

With an initial storage capacity of 750,000 barrels, expandable to three million barrels, and a loading capacity of 360,000 barrels per day, the facility is also projected to reduce production costs for indigenous producers significantly.

By: Lady Godknows Ogbulu
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Nigeria’s Oil Boom Meets Its Refining Headache

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Nigeria is pumping more crude and drilling harder than it has in years, thanks to reforms under President Bola Tinubu that are finally coaxing cash back into the upstream. Daily output has climbed to between 1.7 and 1.83 million barrels, while active rigs surged from 31 in January to 50 by mid-year, Minister of State for Petroleum Heineken Lokpobiri told delegates at Africa Energy Week.
The turnaround is pinned on the “Project One Million Barrels” initiative and the long-delayed Petroleum Industry Act, which the government insists has created a predictable playing field for investors. Lokpobiri pointed to over $5.5 billion in fresh investment decisions tied to asset divestments by IOCs—moves he said are adding some 200,000 bpd to national production. Nigeria, he declared, is “open for business.”
But problems persist downstream. The country’s crown jewel refinery—Aliko Dangote’s $20 billion, 650,000-bpd plant in Lagos—is mired in strikes, sabotage claims, and financial headaches. Earlier this week, Nigeria’s top oil union launched a nationwide walkout after 800 refinery workers were sacked for alleged “acts of sabotage.”
Dangote insists he’s rooting out bad actors; unions say he’s firing organizers. The strike has already shuttered offices at NNPC and key regulators, raising fears it could spill over into production if not resolved.
Even before the labor brawl, the refinery was under pressure. Dangote has admitted to reselling crude cargoes and halting local fuel sales as currency distortions made operations unprofitable.
Buying crude in dollars and selling fuel in a weakening naira is a recipe for red ink, and calls for government-backed import bans have underscored just how fragile the model is.
Nigeria’s oil reforms may be luring rigs back to the delta, but if its refining dream continues to falter, the paradox remains: a top global crude exporter still at risk of shortages at home.
By Julianne Geiger
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