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2017: Nigeria’s Energy Sector In Retrospect

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For the Nigeria’s oil and energy sector, the year 2017 will remain contentious in the annals of its activities. A cursory look at the sector during the year under review indicates that it went through one of its most challenging moments in the nation’s history.
Apart from the most glaring challenge of contending with the constant rise of the price of crude oil at the international market, the sector faced a lot of internal tussles and schisms on the local stage, with key stakeholders as actors in the evolving conflicts and the Nigerian masses as victims.
The Nigeria National, Petroleum Corporation, (NNPC) was caught in a crisis of interest as the Group Managing Director (GMD) of the corporation, Maikanti Baru and the Minister of State for Petroleum, Dr Ibe Kachikwu, traded blames, accusations and counter-accusations over alleged contract scam and lack of due process in the running of the (NNPC). The conflict of interest in the NNPC dominated the public domain for a while, with shocking revelations of overloaded contract figures and skewed appointment.
The tension was however, subsumed by the Presidency on a note considered by pundits as “partisan compromise” at the disadvantage of the Nigerian masses, who needed proper explanation of the real issues in contention.
Shortly, after the Baru/Kachikwu debacle, came the escalating fuel scarcity across the entire country. In the face of the biting fuel scarcity across the country, the major opposition party, at the centre, the Peoples Democratic Party (PDP), accused the Federal Government of covering up huge sleazes directly involving the ruling All Progressives Congress (APC), especially in the alleged diversion of fund in oil subsidy payouts, resulting in massive fraud in the oil regime.
The PDP, in a press statement said, the Jonathan’s administration ensured a domestic production of 5 million litres out of the 25 million litres daily domestic consumption in the country, but the present administration had failed to make any remarkable impact in the sector.
According to the PDP, the APC paid itself N1.4b daily for fuel importation through the NNPC, which is the sole importer and price moderator in the oil sector.
The development was said to have dimmed the expectations of private importers and market forces to leverage on the scrapping of subsidy and ushering in of a regime of partial deregulation of the downstream sector.
Vice President of Nigeria, Prof Yemi Osinbajo however justified the removal of subsidy saying, “The Central Bank of Nigeria (CBN) did not have enough,” with oil earnings dipping to $550m in April, while the amount required for oil importation alone gulped about $225m.
During the year under review, critical stakeholders affirmed that oil and gas sector in the country went through great turbulence and inflicted panic on Nigerians. Commenting on the fuel crisis in the country, President of the Nigeria Association of Petroleum Explorations (NAPE) faulted the Federal Government’s pegging of the foreign exchange rate and the pump price of petrol.
He pointed out that the lack of flow of foreign exchange, denied private marketers access to fund and called for total removal of subsidy on petroleum. The Depot and Products Marketers Association (DAPPMA), also accused NNPC of denying its members adequate supply and allocation of products, thereby causing the scarcity of petroleum products across the country.
Executive Secretary of DAPPMA Olufemi Adewole, disclosed in a media report that the NNPC and its subsidiaries were into some shady deals which has resulted into acute scarcity of products and inflicted pains on Nigerians. He urged the corporation to ensure adequate supply of products to its members to save Nigerians from further sufferings.
NNPC, however denied the allegations that it denied DAPPMA members and the Independent Petroleum Marketers Association (IPMAN) of the supply of product, especially PMS. The NNPC said members of DAPPMA have taken receipt of products from the Pipeline Products Marketing Company (PPMC) in substantial volumes and currently owed the company N26.7b as at December 21st, 2017.
NNPC further promised to improve on the glaring shortcomings in the supply of products by providing 1.2b litres in January 2018, translating to about 40 million litres per day. The general consumption rate of Nigerian is however estimated at 700 trucks, which is about 27 to 30 million litres per day.
The alleged increase of petroleum pump price was also dismissed by the corporation, as it insisted that the ex-depot price of N133.28 per litre would be maintained to stabilise the government’s official price of N145 per litre.
In 2017, the federal government also commenced the implementation of the Nigeria Gas Master Plan (NGMP), as it awarded the $2.8bn gas pipeline contract designed to run from Ajaokuta to Kano. The 614 kilometre 40-inch pipeline contract was presented by the Minister of State for Petroleum, Dr Ibe Kachikwu to the Federal Executive Council, for approval in the last quarter of 2017.
The award of the gas pipeline contract marked the beginning of the implementation of the first phase of the master plan that was approved in 2016. The project is designed to transport additional gas supply from upstream producers to various demand points at the cost of N7.7bn.
In its bid to improve the Nigeria power sector, the federal government also launched the power sector reforms recovery programme, an action plan designed for sweeping restructuring of the 11 Electricity Distribution Companies (DISCOS) for effective service delivery. The power sector reforms recovery programme was launched by the Minister of Works, Power and Housing, Babatunde Fashola at a stakeholder’s meeting held in Abuja also in the last quarter of 2017.
In the action plan, the Nigerian Electricity Regulatory Commission (NERC) is to engage the DISCOS on revised business plan to meet up their responsibilities in the country’s privatised electricity market. Stakeholders also canvassed for the full liberalisation of electricity to improve service delivery.
The Nigeria Society of Engineers in a stakeholders’ conference on the diversification of the Nigerian economy held in Port Harcourt in the later part of the year, urged the government to consider technocrats in the allocation of DISCOS, noting that such initiative would enhance service delivery in the sector.
During the year under review, the Nigeria Content Development and Monitoring Board (NCDMB) also made moves to consolidate content development in the oil and gas industry.
Executive Director of the (NCDMB), Engineer Simbi Wabote, engaged key stakeholders across the country through workshop and seminars organised by the board on the need for strict implementation of the Nigeria Oil and Gas Industry Content Development (NOGICD) act.

 

Taneh Beemene

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Oil & Energy

The Tofu Brine Battery That Could End the Lithium Era

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Researchers in Hong Kong and China have developed a new form of battery that is more eco-friendly and longer lasting than lithium ion batteries –  and it runs on tofu brine. The new water battery is still in research phases, but if the technology proves to be scalable enough to hit commercial markets, it could be a game-changer for the energy and tech sectors.

“Compared with current aqueous battery systems … our system delivers exceptional long-term cycling stability and environmental friendliness under neutral conditions,” the research team, composed of scientists from the City University of Hong Kong and Southern University of Science and Technology in Shenzhen, Guangdong, said in a paper published this month in Nature Communications.

The researchers found that their battery model can be recharged over 120,000 times. “At over a hundred thousand cycles, this could mean a single water-based battery could last at least a decade or so,” states a recent report on the breakthrough from Interesting Engineering. “For applications like grid storage (solar farms, wind balancing), that’s extremely valuable,” the article went on to say.

This kind of lifespan would represent a drastic improvement over the battery technologies that dominate today’s market. Lithium-ion batteries degrade after between 1,000 and 3,000 charge cycles. This could prove revolutionary, as finding an alternative to lithium-ion batteries to power rechargeable devices is a major priority for Big Tech and the global energy sector.

Moreover, these tofu-brine batteries could prove safer and more environmentally friendly than lithium-ion batteries. According to the study authors, the full cells are environmentally benign and nontoxic and can be directly discarded to environments according to various standards.” Water based (also called aqueous) batteries can also potentially be cheap to produce as they rely on ingredients that are less rare in addition to being less hazardous.

Lithium is environmentally harmful to extract, prone to fires, and its supply chains are geopolitically fraught. Currently, China alone controls half of the global lithium market, and is rapidly increasing its stake. In 2024, more than eight in ten battery cells on the planet were made in China. This means that finding a battery model that can compete with lithium-ion batteries in applications like grid-scale energy storage and electric vehicles would have revolutionary implications for global markets.

Researchers around the world have been racing to develop battery models that could diversify the market and make it more competitive and resilient. These models range widely in size, components, and application, with models currently under development for next-gen sodium-ion batteries, quantum batteries, nuclear batteries, and even sand and dirt batteries.

Of course, the irony is that the leading alternatives to lithium-ion batteries are also being developed in Chinese labs. If this new tofu-brine battery proves scalable and applicable outside of a laboratory environment, it could just be another step toward Beijing’s goal of near-total domination of clean energy technology value chains and status as the world’s first and premiere ‘electro-state.’

China’s extreme advantage in global battery making gives it a major point of leverage in global economies as the world continues to electrify at a rapid pace. It is estimated that European demand for lithium in batteries will reach kilo tonnes (thousands of tonnes) of Lithium Carbonate Equivalent by next year, and North American demand will reach 250 kit LCE. it’s all but certain that the vast majority of that demand will be supplied by China.

Other nations are aware of the risk of this dependency, and are taking pains to protect and promote domestic battery manufacturing, but these efforts may be too little, too late. “For globally competitive battery manufacturing industries to emerge outside of Asia over the next ten years, companies will need to do far more than ensure regulatory compliance,” summarizes a McKinsey & Company report released in January. “Challenges will need to be overcome on multiple fronts spanning supply chains, talent management, operations and technology.”

By: Haley Zaremba

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Oil & Energy

REA TO Spend N100bn On Hybrid Mini-grids For Govt Agencies In 2026

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The Rural Electrification Agency (REA) says it will spend N100 billion in 2026 to deploy hybrid mini-grids for government agencies within and outside Abuja.

The Managing Directors, REA, Abba Aliyu, disclosed this while addressing newsmen on the sidelines of the 2026 budget defence session organised by the House Committee on Rural Electrification in Abuja, Friday.

The approved funds form part of the National Public Sector Solarisation programme, a component of the agency’s broader N170 billion budget proposal for 2026.

The initiative is designed to improve electricity reliability for public institutions while reducing operational costs and easing pressure on the national grid.

Aliyu explained that the agency’s total proposed budget for 2026 stands at N170 billion, with N100 billion of the amount dedicated specifically to the solarisation initiative targeting government agencies.

He said the hybrid mini-grid systems combine solar power with complementary energy sources to ensure an uninterrupted electricity supply.

“The total budget size for 2026 operations is N170 billion, out of which N100 billion had been approved for National Public Sector Solarisation.

“The managing director said that the N100 billion targets provision of hybrid mini-grid for government agencies within and outside Abuja”,
He stated that the intervention covers agencies in the Federal Capital Territory as well as other parts of the country with the aim of reducing energy costs for government operations while improving electricity reliability.

Aliyu cited the National Hospital in Abuja as an example where similar infrastructure had been deployed to ensure stable power and cut operational expenses.He added that beyond the Solarisation

programme, the 2026 budget includes over 500 electrification projects nationwide, covering grid extensions for nearby communities, deployment of transformers, mini-grids for agrarian and cottage-industry clusters, and solar home systems for sparsely populated areas.

Recall that earlier in February 2026, REA signed a Memorandum of Understanding with the Economic Community of West African States (ECOWAS) to deploy solar power systems to 15 public institutions across Nigeria.

The project will be implemented under the Regional Off-Grid Electricity Access Project (ROGEAP), a World Bank-supported initiative aimed at expanding off-grid electricity access across West Africa and the Sahel.

ECOWAS will provide a $700,000 grant to fund the installation of solar photovoltaic systems in selected rural health centres  and schools in the Federal Capital Territory, Niger, and Nasarawa States.

The initiative marked the formal commencement of Nigeria’s pilot implementation phase under ROGEAP, with REA serving as the technical and financial implementing agency.
 through interconnected mini-grids.
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Oil & Energy

PIA: TotalEnergies Transfers OLO Oilfield HCDT Obligation To Aradel ……Says HCDT Enabled Completion of 100 Projects In 2 years

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Pursuant of the Petroleum Industry Act (PIA), TotalEnergies has handed over the OLO Oilfield Host Community Development Trust (HCDT) to Aradel Holdings Plc.
This transition follows Aradel’s earlier acquisition of the Olo and Olo West marginal fields (formerly part of OML 58) from the TotalEnergies/NNPCL Joint Venture, and formally completes the transfer of settlor responsibilities under the trust, ensuring that community development work already underway continues without interruption.
Speaking at the Hand-Over ceremony in Abuja, weekend, the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said the development trust remains intact, its governance structure preserved and its statutory funding obligations transitioning seamlessly to the new settlor as envisioned by the PIA.
Represented by the Executive Commissioner, for Health, Safety, Environment, and Community (HSEC), John Tonlagha, Eyesan explained that the Commission would continue to provide firm and consistent oversight to ensure full compliance with the PIA for the benefit of both the communities and the industry.
Also speaking, the General Manager, Community Affairs, Projects and Development, TotalEnergies, Dornu Kogam, urged Aradel Holdings to maintain the same transparent, community-centered approach throughout project completion.
TotalEnergies further confirmed that all obligations up to the date of transfer have been fully met, and no outstanding liabilities remain adding that Aradel formally assumes full responsibility going forward, with the Commission’s regulatory consent granted.

In his remarks, the Community Affairs Manager, Aradel Holdings Plc, Blessyn Okpowo, affirmed the company’s commitment to honouring all PIA obligations and continuing Total Energies’ community engagement approach.“We want to say that in line with the PIA, we will honour commitments and duties required of the settlor and we want to work very smoothly with the way TotalEnergies has worked with them,” he stated.

The Chairman, Board of Trustees, OLO host community, Wales Godwin, commended the HCDT’s delivery of 118 projects out of 160 planned.

He recognised the Commission’s role in approving the Community Development Plan (CDP) before project start, underscoring regulatory excellence.The parties noted that between 2023 and 2025, the trust has enabled the completion of more than 100 community projects, spanning water supply, electricity, road infrastructure, education, and healthcare with a further 40 projects currently ongoing.

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