Oil & Energy

On Melaye’s Power Sector Exposé

Published

8 years ago

November 6, 2017

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.

Oil & Energy

OML18: NNPC, Sahara Launch 2.2m-Barrel Floating Vessel

Published

1 day ago

October 13, 2025

The Tide

The Nigerian National Petroleum Company Limited (NNPCL), Sahara Group, Eroton Exploration & Production Company, and Bilton Energy Limited have jointly commissioned the nation’s first wholly owned 2.2-million-barrel capacity Floating Storage and Offloading (FSO) vessel.

The vessel, named Cawthorne, is designed to drive sustained oil production, enhance crude export reliability, and bolster Nigeria’s energy security and sustainability.

A statement signed by the Head of Corporate Communications at Sahara Group Ltd, Bethel Obioma, stated that the vessel is Nigeria’s first Crude Oil Terminal to be commissioned in 50 years.

Christened Cawthorne, the Floating Storage and Offloading (FSO) Terminal is designed to enhance crude evacuation from Nigeria’s OML 18 and nearby assets, the statement added.

This achievement, according to Udobong Ntia, EVP Upstream, NNPC, who represented the NNPC GCEO, Bashir Ojulari, at the commissioning, “is another bold achievement from the partnership between NNPC and its JV Partners that would guarantee seamless operations and bolster the strategic targets set by the President, Asiwaju Bola Ahmed Tinubu, towards ensuring optimised upstream production in Nigeria.”

Located at offshore Bonny, the double-hull FSO vessel with a storage capacity of 2.2 million barrels, represents a bold step forward in strengthening Nigeria’s crude export infrastructure and operational resilience.

NNPC Chief Upstream Investment Officer, Seyi Omotola, said the vessel represents a “renewed hope” for Nigeria’s upstream sector, adding that it also reaffirms the growing capacity of the nation to make its energy sector globally competitive.

The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe,who was represented by the Executive Commissioner, Development and Production, at the commission, Enorense Amadasu, said: “This is a commendable achievement that aligns with the vision of the NUPRC towards accelerating production in the nation, reliably, seamlessly and sustainably.”

Amadasu added that the Cawthorne FSO will enhance Nigeria’s export reliability and contribute to a more stable global energy supply chain. “This is a critical step toward unlocking the full potential of OML 18 and other strategic assets in the region.”

Managing Director, Niger Delta Exploration and Production Offshore Limited (NEOL), Ibiyemi Asaolu, said “This milestone showcases what is possible when innovation, collaboration, and execution excellence align. With FSO Cawthorne, we are not only securing production continuity from OML 18 but also contributing to Nigeria’s long-term energy infrastructure and revenue stability.”

On his part, the Head, Commercial and Planning, Asharami Energy (a Sahara Group Upstream Company), Dr. Tosin Etomi, said “The Cawthorne FSO stands as a symbol of innovation meeting necessity. It is not just a vessel, it’s an assurance of continuity, reliability, and value creation for our partners, our nation, and our people”.

“This collaboration with the NNPC, NUPRC and other stakeholders embodies the drive to turn complex energy challenges into sustainable solutions that power progress across Africa.”

Etomi said the ultramodern vessel is fitted with digital capabilities that make it a vessel “built for the future, driving operational flexibility, reduction in carbon exposure from barge movements, and enhancing overall evacuation safety. It’s an investment in the resilience of the upstream sector and our environment.”

“The commissioning of FSO Cawthorne reaffirms Sahara Group’s and indeed OML 18 Partners’ commitment to powering progress responsibly through partnerships, innovation, and infrastructure that strengthen Africa’s energy independence”, he stated.

Oil & Energy

Space-Based Solar Power Finally Ready to Shine?

Published

1 day ago

October 13, 2025

The Tide

Scientists have dreamed of putting solar panels in outer space since the late 1960s, and have known that space-based solar power was technologically feasible since the 1970s. But the true race for space-based solar has only just begun, driven by the intensifying need to produce more electricity to meet rapidly growing energy demand. As more of the world becomes electrified, big data and AI become omnipresent, and decarbonization deadlines draw closer, innovative energy solutions are needed more than ever. As a result, space-based solar power is finally ready for its day in the sun.

This nascent technology employs enormous satellites to collect high-intensity sunlight and beam it down to Earth, either through microwaves or lasers. A receptor on Earth receives that energy and converts it into electricity to be fed into the grid. This energy would be dispatchable, as satellites would have gargantuan range and could flexibly beam energy to where the demand is greatest.

The production potential of space-based solar power is enormous. Because the panels are situated beyond clouds and the atmosphere, and are not impacted by the rotation of the earth, they receive high levels of unadulterated sunlight 24 hours a day, 7 days a week. As a result, these systems are capable of producing a potentially game-changing amount of clean energy.

According to calculations by researchers from King’s College London, space-based solar power could reduce Europe’s need for land-based renewable energy by as much as 80 percent, and reduce battery-based energy storage needs by more than two-thirds. The kicker? It would reduce the cost of Europe’s energy system by as much as 15 percent. The researchers found that the associated savings in terms “energy generation, storage and network infrastructure costs” would save an estimated 35.9 billion euros (41.7 U.S. Dollars) per year.

The higher energy density of space-based solar means that energy systems would need far fewer costly resources. Such a system “requires orders of magnitude fewer critical minerals to provide the same continuous power as a terrestrial solution with large-scale energy storage,” reads a recent article from the World Economic Forum. “This offers a more sustainable path, alleviating the strain on resources that the International Energy Agency (IEA) has identified as a key challenge,” the report continues.

Critically, these systems would also require far, far less land than Earthbound solar farms. Not only would we be outsourcing solar panels to outer space, the receptors that receive the solar energy here on Earth would be relatively small and mostly transparent, meaning that they would be well-suited to mixed-use spaces. This would alleviate intensifying issues of land scarcity faced by utility-scale renewable energies.

As the considerable benefits of space-based solar gain more attention, investment in their development has ramped up considerably. Labs in the United States, the United Kingdom, China, Japan, Europe, and other locations around the globe are all accelerating their research programs to advance space-based solar power, and high-profile private investors are now joining the trend as well. Big tech bigwig Baiju Bhatt, a co-founder of Robin Hood, launched the space solar startup called Aetherflux last year.

But space-based solar power still faces some key hurdles before it can be scaled for commercial use. The most significant of these, according to the World Economic Forum, is the way that private finance is structured around early-stage startups and not long-term infrastructure projects. While space-based solar power will be a big money saver in the long term, it will not provide quick or necessarily predictable returns on investment.

For this reason, startups are looking to government contracts to get space-based solar power off the ground. “We think that the military customer is large enough — and for lack of better word, difficult enough — of a customer that if we can serve, we can build a constellation and we can be at scale, Christian Garcia, managing partner at Breakthrough Energy Ventures, one of Aetherflux’s backers, told CNBC. “And at that point, we will have dropped the cost of the technology such that we can expand into other customers.”

By: Haley Zaremba

Oil & Energy

Aide, Others Laud Gov. Diri Over ‘Light Up Bayelsa’ Project

Published

1 day ago

October 13, 2025

The Tide

Bayelsa State governor, Senator Douye Diri has again been commended for his visionary leadership and unrelenting initiatives and effort in providing stable power supply in the state.

The Technical Adviser on Media and Public Affairs, to the governor, Hon.Wisdom Ikuli, made the commendation while conducting Newsmen on a tour of the ongoing installation of the new Gas firedTurbine project procured by the Governor Diri-led administration.

Describing the ongoing project tagged: ‘Light Up Bayelsa’ as a lofty socioeconomic initiative, Ikuli noted that the project, upon its completion, would be a boost to the economic potentials of the state as well as upscale the living conditions of citizens and residents of the state.

“God’s willing by December 2025 as promised by the governor, Bayelsa would begin to enjoy 24-hour uninterrupted power supply. It will herald the industrialisation agenda of His Excellency, Governor Douye Diri.

“You all know that in January this year, this place was a bush and swampy. But between January and now, you can see the tremendous progress made. The power project Governor Diri promised before the end of this year is gradually becoming a reality.

“This project would trigger a multiplier effect on the economy of our State. It will attract investors, and revive dormant businesses across the state. Every businessman wants to locate where there is power. People will relocate from neighbouring states to Bayelsa. The hospitality sector will boom, and we must continue to thank the miracle governor for keeping to his word,” he said.

The governor’s Aide restated that while power would not be free, the cost would be affordable compared to what residents currently spend on diesel, fuel, and solar energy, noting that the gas that would be used for power generation would be bought by the Bayelsa electricity Company Ltd (BECL).

“What we will pay for power is insignificant compared to how much we spend daily on fuel or solar panels. Light is life, and Governor Douye Diri has come to give us light, and a new life. Governor Diri is the ‘Light’ of Bayelsa State and the entire Ijaw nation”, the governor’s aide said.

Also speaking, the Director of Operations, BECL, Engr. Steve Bubagha, said the project, which is about 85 percent completion would soon be set for inauguration, disclosing that six of the eight newly procured gas turbines had already arrived the state, with the remaining two en route Yenagoa, the state capital, in the coming days.

“Virtually every nook and cranny of Yenagoa will benefit from this project. We’re at an advanced stage, about 85% done with the electrical reticulation and 33kV network. Once the installation and pre-commissioning processes are completed, power distribution will begin immediately. Government plans to introduce metering systems to ensure transparency and efficiency in billing.

“If the governor has gone this far to make sure this project is installed in Yenagoa, it means he will also ensure that meters are available. It is even with meters that people can truly enjoy the facility,” he said.

By: Ariwera Ibibo-Howells, Yenagoa