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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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Reps C’mitee Moves To Resolve Dangote, NUPENG Dispute

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The House of Representative on Petroleum Resources (downstream), has pledged to intervene in the ongoing dispute between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), warning that mishandling the issue could destabilize the downstream sector.
Chairman of the Committee, Ikenga Imo Ugochinyere, gave the assurance at the close of a three-day retreat, in Lagos, at the Weekend.
Ugochinyere noted that while Dangote and NUPENG signed a Memorandum of Understanding on September 9 to strengthen workers’ right to unionise, fresh disagreements have since emerged.
He stated that the committee had received multiple submissions from stakeholders adding that it would act in the best interest of both parties.
“If the issue is not well handled, it will create instability in the downstream sector. We must balance labour issues with economic interests,” he stated.
It would be noted that NUPENG had accused the refinery of intimidation, alleging it ordered truck drivers to remove union stickers before loading. Dangote, however, dismissed the claims describing it as “cheap blackmail.”
He also revealed that the committee has reopened its investigation into NNPC Ltd.’s acquisition of OVH Energy Marketing’s downstream assets and refinery upgrade, following a directive from the House after the initial report was rejected for omitting key facts.
“The investigation is distinct from the previous inquiry carried out. The House, therefore, mandated the Downstream Committee to undertake a fresh investigation—with a clear directive to uncover what truly transpired in the OVH acquisition process”, Ugochinyere said.
With the commencement of the investigation, the committee chairman said the general public is invited to make their input before the lawmakers present their recommendations on the floor of the House.
He directed that those with information and submissions should submit them to the clerk of the downstream committee.
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Oil & Energy

Increased Oil and Gas: Stakeholders Urge Expansion Of PINL Scope 

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Following the sustained record of increased oil and gas production in recent times, stakeholders from pipeline and crude oil host communities have urged the Federal Government to expand the security contract of Pipeline Infrastructure Nigeria Limited (PINL).
The stakeholders who gave the urge while speaking at the September Engagement, held in PortHarcourt, last Thursday, attributed the increased output in oil and gas production to the positive impact of PINL on oil and gas host communities
President-General, Orashi People’s Congress, Emeni Ibe, expressed happiness with PINL saying “Our people which includes Abua/Odual, Ahoada East and West, Ogba/Egbema/Ndoni have asked me to convey their gratitude for regularly holding this stakeholders meeting”.
“Our area is criss-crossed with several oil pipelines and in the campaign against vandalism, we have agreed to partner with the PINL.
“We are calling on the Federal Government to provide more funds to the company. We are pleased with their trainings and their scholarship for our youths. This is what we are expecting and if these things are done, pipeline vandalism will be a thing of the past.
“PINL is changing the narratives in our area so I join others to pass a vote of confidence on PINL”, Ibe said.
Also speaking, an indigene of Soku, community, Ajenkebiokpomaa Orlu, said his people want the federal government to include the community in the scope of job covered by PINL.
“We have been hearing about PINL in Rivers State and other neighboring communities but it’s like a surprise to us because Soku as a major player in the ooo and gas sector, we are not part of their operations. We are supposed to be part of it as major oil bearing community with the largest gas plant in West Africa and other oil facilities.
“I’m here to tell Federal Government, NNPCL and PINL to include Soku community in their scope of job and mostly for the Federal Government to expand PINL’s scope of work in the area to include Soku oilfield.
Speaking with journalists on the sidelines of the engagement, the General Manager, Community Relations and Stakeholders Engagement, Dr. Akpos Mezeh, explained that Soku Tombia, Rumuji, Ogba, Abha, Gbarain are all host to gas lines “and we have engaged workers from those communities to help go secure the lines”.
He expressed hopes that the Federal Government would expedite action in expanding PINL’s contract to cover those areas.
Mezeh stated; “Soku is a major oil and gas host community and by virtue of the fact that our current contract on TNP does not cover Soku, we’ve been able to cover them based on the limited resources we have and so far we’ve been doing wonderfully well there courtesy of the support we get from the community and there has been no incident of vandalism in Soku.
“We are calling on the Federal Government to expedite action on the formalising the expansion that we are already doing to cover the areas outside our primary mandate.
“We have Soku, Tombia, Rumuji, Ogba, Abha, Gbarain which host gas lines and we have engaged workers from those communities to help go secure the lines and so we hope that the Federal Government would expedite action in expanding our contract to cover those areas.
“We have expanded our operations into gas and we are into the sixth month and the results is clear and from the report of NUPRC, gas production has increased.
“We’ve done a lot to ensure that gas facilities are given adequate protection. We have engaged more workers from the communities where gas lines are criss-crossing and although that’s not our primary area of responsibility but we are doing that as a duty call to ensure that we support the Federal Government and that’s why we are calling on the Federal Government to formalise the work that we are already doing”.
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Digital Technology Key To Nigeria’s Oil, Gas Future 

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Experts in the oil and gas industry have said that the adoption of digital technologies would tackle inefficiencies and drive sustainable growth in the energy sector.

The experts made the remark at the 2025 Press Week Lecture and Symposium organised by the Nigeria Union of Journalists (NUJ), News Agency of Nigeria (NAN) Chapel, Lagos,

With the theme of the symposium as ‘Transforming Energy: The Digital Evolution of Oil and Gas’, he gathering drew top industry players, media leaders, traditional rulers, students, and security officials for a wide-ranging dialogue on the future of Nigeria’s most vital industry.

Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, highlighted the role of digital solutions across exploration, drilling, production, and other oil services.

Represented by the Vice Chairman, Obi Uzu, Ogunsanya noted that Nigeria’s oil production had risen to about 1.7 million barrels per day and was expected to reach two million barrels soon.

Ogunsanya emphasised that increased production would strengthen the naira and fund key infrastructure projects, such as railway networks connecting Lagos to northern, eastern, and southern Nigeria, without excessive borrowing.

He stressed the importance of using oil revenue to sustain national development rather than relying heavily on loans, which undermine financial independence.

Comparing Nigeria to Norway, Ogunsanya explained how the Nordic country had prudently saved and invested oil earnings into education, infrastructure, and long-term development, in contrast to the nation’s monthly revenue distribution system.

Chief Executive Officer (CEO) and Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Using, represented by the Secretary of the Association, Ms Ogechi Nkwoji, highlighted the urgent need for stakeholders and regulators in the sector to embrace digital technologies.

According to him, digital evolution can boost operational efficiency, reduce costs, enhance safety, and align with sustainability goals.

Isong pointed out that the downstream energy sector forms the backbone of Nigeria’s economy saying “When the downstream system functions well, commerce thrives, hospitals operate, and markets stay open. When it fails, chaos and hardship follow immediately,” he said.

He identified challenges such as price volatility, equipment failures, fuel losses, fraud, and environmental risks, linking them to aging infrastructure, poor record-keeping, and skill gaps.

According to Isong, the solution lies in integrated digital tools such as sensors, automation, analytics, and secure transaction systems to monitor refining, storage, distribution, and retail activities.

He highlighted key technologies including IoT forecourt automation for real-time pump activity and sales tracking, remote pricing and reconciliation systems at retail fuel stations, AI-powered pipeline leak detection, terminal automation for depot operations, digital tank gauging, and predictive maintenance.

NUJ-NAN Chapel Chairman,  Yunus Yusuf, urged all stakeholders to leverage digital technology for a more transparent, efficient, and sustainable energy future.
He emphasised deploying digital tools to drive sustainability, empower communities, and reshape Nigeria’s oil and gas landscape.
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