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

Take Concrete Action To Boost Oil Production, FG Tells IOCs

Published

5 days ago

February 9, 2026

The Tide

The Federal Government has called on urged International Oil Companies (IOCs) operating in Nigeria to take concrete steps to ramp up crude oil production, following the country’s ambitious target of reaching 2.5 million barrels per day by 2027.

Speaking at the close of a panel session at the just concluded 2026 Nigerian International Energy Summit, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government had created an enabling environment for oil companies to operate effectively.

Lokpobiri stressed that the performance of the petroleum industry is fundamentally tied to the success of upstream operators, noting that the Nigerian economy remains largely dependent on foreign exchange earnings from the sector.

According to him, “I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.

“I am also happy with the team I have had the privilege to work with, a community of committed professionals. From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.

“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”

The minister pledged the federal government’s continued efforts to sustain its support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.

“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot.

Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said.

Lokpobiri added that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.

“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he stated.

It would be noted that Nigeria’s daily average oil production stood at about 1.6 million barrels per day in 2025, a significant shortfall from the budget benchmark of 2.06 million barrels per day.

Oil & Energy

Host Comm.Development: NUPRC Commits To Enforce PIA 2021

Published

5 days ago

February 9, 2026

The Tide

The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has restated the commission’s commitment to ensuring oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.

Eyesan made the remark at a Sensitization Programme in Owerri, Imo State, explained that the PIA 2021 mandates oil companies to contribute 3% of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.

Represented by Atama Daniel, Eyeso said “The funds will be used for education, healthcare, infrastructure, and economic empowerment”.

Eyesan assured that the commission would facilitate a smooth implementation process and ensure compliance by oil companies.

She, however, urged oil-producing communities to protect oil facilities in their areas as well as stop all illegal oil exploration activities within their communities.

The chief executive also disclosed that NUPRC has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.

Earlier, the National President, HOSTCOM, Dr. Benjamin Tamarenebi, advised the host communities to always embark on sustainable development projects rather than frivolous projects.

He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the Petroleum Industry Act.”

Tamarenebi noted that monarchs, as heads of Host Communities Board of Trustees, have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, adding that awarding contracts to themselves will lead to compromise.

He disclosed that funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.

“They can build schools and other sustainable projects and think of something that will always be a more economical variable in the community; if this is done there would be economic activities and development. In order not to waste the funds, manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city”, he said.

In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye, urged regulators to ensure smooth implementation of the Petroleum Industry Act as it relates to the oil producing communities.

Abiye noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.

Oil & Energy

PETROAN Cautions On Risks Of P’Harcourt Refinery Shutdown

Published

5 days ago

February 9, 2026

The Tide

The Petroleum Products Retail Outlets Owners Association (PETROAN) has expressed fears of rust, corrosion, abandonment, lack of lubrication, and eventual destruction of installed equipment at the PortHarcourt Refinery due to continued Shutdown.

PETROAN said it would also result in rendering the entire revamp effort futile if urgent action is not taken.

The Public Relations Officer and Spokesperson of the Association, Dr. Joseph Obele, in a statement, noted that over $1.5 billion of public funds were reportedly expended on the rehabilitation of the Port Harcourt Refinery, which was reopened in November 2024 and shut down again in May 2025 due to alleged financial losses.

Speaking on the sidelines of the recent remarks credited to the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, in which he described the re-operationalisation of the Port Harcourt Refinery and Petrochemical Company as a ‘waste of resources’ and admitted that NNPC lacks the capacity to operate refineries profitably, Obele expressed disappointment, describing the statement as troubling, demoralising, and deeply disturbing, and raising fundamental questions about institutional responsibility, governance, and the stewardship of public resources.

With the huge funds already spent on the rehabilitation process, Obele stated

therefore, that for the GCEO of NNPC to dismiss the entire exercise as a waste of resources, without clear attribution of responsibility, performance audits, or accountability measures, is unacceptable to Nigerians.

“If NNPC truly lacks the capacity to run refineries profitably, as admitted by its own GCEO, then Nigerians deserve to know who advised the investment, who supervised the rehabilitation, who certified the restart, and who benefited from the contracts and operations.

“Public institutions cannot casually dismiss a multi-billion-dollar national asset as a mistake without consequences”, he said.

The PETROAN spokesperson also faulted the narrative by Ojulari that Nigerians should be “thankful” solely because of the success of the Dangote Refinery.

While acknowledging the strategic importance and commendable achievement of the privately owned refinery, he stressed that private investments cannot replace the constitutional and economic obligation of government to efficiently manage public assets.

“Dangote Refinery is a private investment driven by profit and efficiency. NNPC, on the other hand, holds national assets in trust for Nigerians. One cannot be used as an excuse for the failure of the other,” Dr. Obele emphasized.

The energy expert further warned that repeated public admissions of incompetence by NNPC leadership risk eroding investor confidence, weakening Nigeria’s energy security framework, and undermining years of policy efforts aimed at domestic refining, price stability, and job creation.

He described as most worrisome the assertion that there is no urgency to restart the Port Harcourt Refinery because the Dangote Refinery is currently meeting Nigeria’s petroleum needs.

“Such a statement is annoying, unacceptable, and indicative of leadership that is not solution-centric,” he said.

The PETROAN National PRO reiterated that Nigeria cannot continue to normalise waste, institutional failure, and retrospective justification of poor decisions stressing that admitting failure is only meaningful when followed by accountability, reforms, and a clear, credible plan to prevent recurrence.

By: Lady Godknows Ogbulu