Oil & Energy
FG Promises To Grow Economy With Solar Energy Sources
The Federal Government will grow the economy by generating power from both on-grid and off-grid sources, Power, Works and Housing Minister, Babatunde Raji Fashola has said.
He said generating electricity from these sources was key to realising the government’s economic goals.
Speaking at the inauguration of solar electrification project in Iponri, Lagos, he said provision of solar and other off-grid methods of power generation was inevitable, if the country wants to grow the economy, adding the development informed the decision to support the Rural Electrification Agency (REA) to boost businesses with solar power.
He said the government, through a scheme known as Energising Economies Initiatives has assisted in providing electricity to markets across the country.
He said 700 mini-grids were conceptualised in Iponri market to provide solar power to shop-owners in the market.
Fashola said: “The federal government is bouying activities in Small and Medium Scale Enterprises (SMEs) through various energy sources. SMEs remain engine of economic growth in any nation and the government in realisation of this fact is ready to improve activities in that sub-sector of the economy.
“Markets in places, such as Aba, Warri, Sabon-gari and other areas, are benefitting from the scheme. These markets are enjoying energy that is cheaper, cleaner and highly accessible. Owners of shops are paying between N1500 and N2000, implying that the charges are moderate and good for their businesses. Good in the sense that those business-owners are no longer facing environmental hazards caused by the use of generators, coupled with the fact that they spend a lot of money in fueling their generators.”
He said the charges were cheaper compared to the bills paid by electricity consumers.
Also, the Rural Electrification Agency Managing Director, Mrs Damilola Ogunbiyi said the development of modules for solar electricity by indigenous meters manufacturers was necessary to enable solar energy consumers further minimise cost.
“I cannot advise people we are trying to help build their businesses through provision of solar energy, to procure meters for over N30,000. To me, it is expensive. That is why meter manufacturers should try and develop modules, which would be applicable to solar electricity.” he said.
She said mini-grids serve 450 shops out of 1700 shop at Iponri, adding the shops in the market, were in various tiers depending on their level of consumption on the solar hybrid power system, which has 700 kilowatts capacity.
The federal government, through the Rural Electrification Agency, implements the Energising Economies Initiative (EEI), which supports the rapid deployment of off-grid electricity solutions to provide clean, safe, affordable and reliable electricity to economic clusters (e.g. market places, shopping centres, industrial facilities) in Nigeria through private sector developers.
EEI aims to assist over 80,000 shops within a year, empower over 340,000 micro, small and medium-size enterprises, create over 2,500 jobs with the initial 16 economic clusters while serving over 18 million Nigerians.
The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.
The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.
The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.
By: Lady Godknows Ogbulu
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