News
Kachikwu Canvasses Fuel Subsidy Removal …As FG Slams $1.1bn Suit Against Shell, Eni
Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, yesterday, stated that until the downstream sector of the Nigerian petroleum industry is liberalised and subsidy of petroleum products removed, the country would continue to struggle and face challenges in terms of ensuring stable fuel supply.
Speaking in Abuja, at the presentation of the key achievements of the Ministry of Petroleum Resources in three years, 2016 to 2018 and award to staff of the ministry, Kachikwu argued that to address fuel supply challenges, the country needed to find a way to satisfy the need to provide products sufficiently for the populace and at the same time to be able to free the sector for growth.
be able to free the sector for growth. He said, “In the midstream and downstream sectors, we have struggled. I would love to see a day when there would be no fuel scarcity in this country. But for that to happen, there are certain realities. The liberalization of the sector is going to be a panacea to being able to solve this. As long as we continue to subsidise products, create market-unfriendly type practices, we would continue to struggle.
“We are not going to trade our way out of the fuel crisis by bringing sufficiency, by expanding reserves, by extravagant costs which cost the country a lot of money; that is not the solution. The solution is to get our refineries working.”
Kachikwu noted that investments are lacking in the petroleum sector, adding that over the years, refineries’ turn around maintenance, TAM, had been fraught with faulty models which had hampered the effectiveness of the refineries.
Meanwhile, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the Federal Government is targeting to grow the crude oil production to 2.2 million barrels per day (mbpd) by the end of January, 2019.
Kachikwu made the disclosure during the presentation of the ministry’s achievements in three years (2016 to 2018) and awards to staff in Abuja yesterday.
He said that by the end of 2019, crude oil output would have hit 2.5 million barrels based on the coming on stream of the Egina field and the recently approved 30 field works which had the capability of increasing Nigeria’s output by 500,000 barrels per day.
“Crude oil production had been sustained at a fairly large level. We started at 800,000 barrels and we have grown it to about two million barrels.
“We should be doing more but for the cyclical difficulties in terms of occasional pipeline disruptions and occasional closure for purpose of maintenance.
“We are averaging about two million barrels and about 300,000 of that are roughly condensates.
“Really, by the end of January 2019, we should have grown production to about 2.2 million barrels which have been our signpost.
“In addition to that, there are 30 other field works that have been approved by the Department of Petroleum Resources, which have the capacity of adding about 500,000 barrels per day production,’’ he said
According to Kachikwu, by the end of 2019, the country will be averaging 2.5 million barrels production, which will be the first time it will be done in the country.
The minister said that the oil reserves had been grown by over 600 million barrels, rising from 36.18 million barrels to 37.2 million barrels.
He noted that government had been able to grow the gas reserves from 192 trillion cubic feet to 199.09 trillion cubic feet of gas in two years.
Kachikwu said: “We discovered so many new fields, like Owowo. We have been able to grow rig activity in the country.
“ When we assumed office, the rig activity in the country was about two to three rigs that were operating in Nigeria at the time.
“As at 2017, we had about 21 rigs in operation, up from about 16 rigs in operation in 2016.
“Hopefully, with the big FPSOs, it is beginning to look as if there are possibilities in Nigeria. We expect to see a lot more rig activity in Nigeria.’’
In another development,the Nigerian government is taking oil giants Shell and Eni to court in London, requesting the return of $1.1 billion (969 million euros) as part of a case of alleged corruption dating back to 2011, Bloomberg reported yesterday.
FG alleges that the money was used by the companies to buy an oil exploration licence in the Gulf of Guinea but was diverted to bribes and kickbacks, the report said.
The government alleges that Shell and Eni were partly responsible for the fact that “corrupt Nigerian officials” used the money for personal enrichment, it added.
The alleged corruption is already the subject of a separate court case in Milan in which Nigeria is a civil party. Shell and Eni have always denied any unlawful action.
In a statement yesterday, a Shell spokesman said that the deal in 2011 was “a fully legal transaction with Eni and the Federal Government of Nigeria”.
News
FG Spends N10tn On Power Since Privatisation
The Federal Government says it has invested more than N10tn in Nigeria’s electricity sector since its privatisation in 2013, but the intervention has yet to deliver the reliable power supply expected from the reform.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed this yesterday at the sixth annual conference of the Power Correspondents Association of Nigeria, in Abuja.
The conference afforded stakeholders to examine the country’s roadmap to reliable and affordable electricity under the Federal Government’s ambition to grow the economy to $1tn by 2030.
Anuwe said the huge government spending has kept the industry afloat but stressed that public funding alone could not address the country’s electricity challenges, calling for increased private sector participation and alternative financing models to accelerate infrastructure development.
The conference was themed, “$1trn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply.”
The disclosure raises fresh questions about the outcome of the 2013 power sector privatisation, which transferred the country’s 11 distribution companies and six generation companies to private investors, while the Federal Government retained ownership of the transmission network.
Despite successive government interventions, electricity supply has remained unstable, with inadequate generation, gas shortages, weak transmission and distribution infrastructure, mounting sector debts and poor investment continuing to undermine the industry.
Anuwe acknowledged that government funding had been significant but insufficient to meet the sector’s ambitions.
“Government has invested over N10tn in the electricity sector since the advent of privatisation. But is it enough? How much money is enough? If government didn’t invest that money, the industry would not be standing today.
“No matter how you look at it, no matter how critical you are about what government’s role is, if government did not put that money in, the industry would not be standing,” he said.
He, however, described the continued dependence on government funding as unsustainable, noting that the Federal Government was responsible for more than 95 per cent of new infrastructure investment in the sector.
“That’s not why we privatised. We have all kinds of excuses why that has happened. And a lot of them are legitimate. But it’s time for us to move from excuses to saying how do we fix it. It does not need the government to do everything. I believe that government cannot do everything,” Anuwe said.
He said the country needed simpler investment structures, predictable regulations, clear institutional responsibilities and commercially viable projects to attract private capital.
According to him, the FGN Power Company is targeting an investment structure that could attract 1bn, with the Africa Finance Corporation expected to match the amount.
He disclosed that the company’s ongoing Presidential Power Initiative projects were expected to deliver additional transmission capacity, with a target of 5,540 megawatts by 2029 and at least 60 per cent improvement in grid reliability.
The projects include a second batch of 12 Siemens substations and special projects involving Omotosho substations, which are expected to cumulatively deliver nearly 3,400MW.
Anuwe said most of the ongoing first-phase transmission substation and line projects were now expected to be completed in the first quarter of 2027, following delays.
He added that the company had secured financing for its pilot phase and was working with international technical and financial partners, including Siemens Energy, China Machinery Engineering Corporation and TBEA.
The Minister of Power, Joseph Tegbe, in his address, said the Federal Government had also developed a four-pronged roadmap to address the sector’s challenges through grid stabilisation, sector liquidity and sustainability, asset optimisation and expansion and enhancement of the national grid.
He said the government had raised N1.23tn under its N3.3tn plan to settle verified legacy debts owed to electricity generation companies.
According to him, more than 2.8 million electricity customers have been metered under the Presidential Metering Initiative, while additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026.
“Let me inform this gathering that we have developed a four-pronged roadmap to address
the power sector challenges comprehensively. These are Grid Stabilisation, Sector Liquidity
and Sustainability, Asset Optimisation, and Expansion and Enhancement of the grid. Central
to this plan is a corridor approach that prioritises major load centres for reliable, round-
the-clock electricity supply.
“A technical audit has been commissioned to establish a robust diagnostic baseline, identify critical constraints and guide the prioritisation, sequencing and
execution of interventions. The corridor approach gives this roadmap a practical industrial focus.
“In the past two months alone, I have commissioned newly installed substation equipment across Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri, Walalambe and other locations, adding over 1,300MVA to Nigeria’s transmission capacity. This has unlocked more power to the respective Distribution Companies for onward distribution to industrial and household customers,” Tegbe said.
He added that the government was adopting a corridor-based approach to improve electricity supply in major economic centres, beginning with the Lagos-Ogun axis and Abuja franchise area, which together account for more than 50 per cent of national electricity demand.
The minister said the proposed 24-hour electricity zones would align generation, transmission and distribution capacity with demand in industrial clusters, subject to technical readiness and commercial viability.
He also identified vandalism as a major threat to electricity infrastructure, disclosing that President Bola Tinubu had approved a coordinated anti-vandalism campaign involving security agencies.
Earlier, the Chairman of PCAN, Obas Esiedesa, said reliable and affordable electricity was indispensable to the country’s ambition of building a $1tn economy by 2030.
He urged stakeholders to move beyond identifying the industry’s problems and focus on practical solutions, particularly investment, infrastructure development and sustainable financing.
News
Fubara: Why We Engage Only Qualified Engineers, Indigenous Contractors On Projects …As Governor Bags NATE Platinum Award, Inducted Into Highest Membership Cadre
Governor of Rivers State, Sir Siminalayi Fubara, has stated that his administration engages indigenous contractors, qualified engineers and technologists in road and housing projects to ensure the delivery of standard and quality projects in the State.
Governor Fubara stated this yesterday while declaring open the 42nd Conference of Technologists in Engineering ( CONFOTECH) and Annual General Meeting of the Nigerian Association of Technologists in Engineering, (NATE), in Port Harcourt.
The conference saw the association conferring its Platinum Award on Governor Siminalayi Fubara and his induction into the highest membership cadre of NATE in recognition of his massive infrastructural development across Rivers State.
Governor Fubara, who was represented by his Chief of Staff, Mr. Sunny Ewule, expressed the readiness of his administration to the continued partnership and support for professional associations in promoting professionalism, building capacity and driving technological advancement.
He thanked the leadership and the entire membership of NATE for finding him worthy of their most prestigious award and honour, the NATE Platinum Award, and the accompanying induction into the highest membership cadre of the association.
“I consider this award not as a personal achievement but as a recognition of the collective effort of my administration and the good people of Rivers State in the area of infrastructure development and the deployment of engineering and technological solutions to advance the socio-economic development of the state, he said.
Governor Fubara noted that the theme of the conference: Safety, Regulation and Enforcement in Engineering: A Panacea to Industrial and Technological Growth in Nigeria, could not be more timely and relevant.
According to Fubara, no meaningful industrial growth can take place without safety, strong regulation, and enforcement, adding that it is for that reason that his administration has continued to insist on standard, quality delivery, and the engagement of qualified engineers, technologists and indigenous contractors in road construction, housing and other major developments across the state.
In his welcome address, the National President of the Nigerian Association of Technologists in Engineering (NATE), Engr. Dominic Udoatan, said the conference underscores a fundamental truth that safety, effective regulation and strict enforcement are indispensable to sustainable industrial and technological growth.
He urged government, regulatory bodies, employers and professional associations to work together to ensure competence, accountability and the protection of lives and property, while expressing the association’s sincere appreciation to Governor Fubara’s administration for its recognition of the importance of infrastructure, technical competence and technological advancement.
News
IGP Warns Police Officers Against Partisanship …Directs Regular Engagement With Journalists
The Inspector-General of Police, Olatunji Disu, has warned officers of the Nigeria Police Force against engaging in partisan political activities, insisting that the Force would remain neutral before, during and after the 2027 general elections.
The IGP gave the directive during a strategic meeting with senior police officers, including Deputy Inspectors-General of Police, Assistant Inspectors- General of Police and Commissioners of Police, at the Force Headquarters, Abuja, last Wednesday.
He told the officers across the country to maintain regular interactions with journalists as part of efforts to tackle misinformation and fake news ahead of the elections.
He said sustained engagement with the media would strengthen public communication, promote transparency and help curb the spread of misleading information capable of undermining public confidence in the electoral process.
Disu assured that the Nigeria Police Force would not allow itself to be used by politicians or political parties, saying the Force remains committed to providing a level playing field for all participants in the electoral process.
“We will remain neutral, ensure the safety and security of the electorate before, during and after the election,” he said.
The Police Chief warned that any police officer found participating in partisan politics would face appropriate disciplinary and legal consequences.
On the protection of citizens’ rights, the IGP charged Commissioners of Police to ensure that all reported cases of human rights violations are properly documented, investigated and resolved within a reasonable period.
He also directed police commands and zones across the country to establish accessible and visible Complaints Response Units to enable members of the public report alleged abuses and obtain appropriate redress.
Disu emphasized the need to improve the welfare of police personnel, directing Commissioners of Police to ensure prompt payment of death benefits to families of fallen officers and personally visit such families to demonstrate the Force’s support and solidarity.
He highlighted some of the achievements recorded by the Force but maintained that more efforts were required to address prevailing security challenges, particularly banditry in parts of the country.
He also cautioned Commissioners of Police against travelling outside their respective states without obtaining express approval from his office.
The IGP thanked President Bola Tinubu for his continued support and commitment to strengthening the capacity of the police to combat crime and maintain national security.
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