Nation

‘Without Alternative Energy, Petrol Price’ll Rise on Subsidy Removal’

Published

5 years ago

July 23, 2021

The Department of Petroleum Resources (DPR) has warned that the pump price of petrol in the country may rise up to as much as N1,000 per litre when petrol subsidy regime comes to an end without an alternative energy source.

The DPR stated this just as some oil and gas experts have advocated for a measure from the government that will ensure that Nigeria gets commensurate value from its abundant oil and gas resources like its fellow oil producing nations.

The Director of DPR, Mr. Sarki Auwalu, said this while responding to questions and comments generated by a paper he delivered in Lagos, recently, at the Second Quarter, 2021 Business Dinner of Petroleum Club, Lagos.

The topic of the paper was, “A Discussion on the Future of the Nigerian Petroleum Industry.”

The questions and comments came from a former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun; political economist and Founder of Centre for Values in Leadership, Prof. Pat Utomi; Production Geologist at Shell Nigeria, Mr. Adedoyin Orekoya; and Chairman of AA Holdings, Mr. Austin Avuru; amongst others.

Responding to the subsidy concerns and the disparity in the petrol consumption figures given by NNPC and the DPR, as raised by Orekoya, Auwalu, acknowledged that Nigeria was spending so much on petrol subsidy.

He said eliminating it would require making alternative fuel available to Nigerians and that failure to do that will plunge Nigerians into paying higher petrol prices when subsidy is removed.

He stated that Nigerians may be paying as high as N1, 000 to buy one litre of petrol in the country when subsidy on petrol is removed and when the alternative energy or autogas gas policy becomes fully operational.

He, however, said the alternative fuel regime comes with initial cost as it will lead to spending $400 to convert one vehicle from running on petrol or diesel to running on either Liquefied Natural Gas (LNG) or Compressed Natural Gas (CNG).

Auwalu maintained that converting eight million public vehicles currently present in Nigeria to gas-powered will cumulatively cost $3.2billion to achieve.

He said, “So, to eliminate subsidy, they don’t call it subsidy anymore now, it’s under-recovery of purchase. So, to eliminate under-recovery, what you need is alternative fuel. Without alternative, you will subject people to higher prices and that is why we go for price freedom.

“As at today, there are 22 million cars in Nigeria. Eight million are for public use. Imagine if you want to convert every car into gas, the average cost of conversion is $400. Converting eight million cars requires $3.2billion. To do that, there are a lot of environmental investors which can invest and recover from the sale of gas and we are encouraging that.

“Once that is achieved, you will see that PMS can be sold at N1,000. After all, the average distance covered by one gallon equivalent when you compare it with LNG or CNG with respect to energy for mobility, is 2.7 against one; one for PMS, 2.7 for LNG or CNG.

”So, with that advantage, you will see that it creates opportunity for this industry again. The issue of subsidy, volume will all vanish and that is what we are working towards.”

He, however, warned that the rise in Nigeria’s local refining capacity as seen in the coming on stream of a number of refineries in the country without a corresponding increase in the country’s oil production volume may threaten the country’s membership of the Organisation of Petroleum Exporting Countries (OPEC).

The director lamented that out of Nigeria’s over 7,100 reservoirs and its mature basins, the country was recovering just as low as about 1,000, a situation he said, needed the collaboration of all industry players to find a solution to before Nigeria gets evicted from OPEC due to low contribution.

“How do we now get the national production capacity so that we export more, we consume more? Today, we have huge additional capacity in domestic refining. If we don’t increase the production, we have to get out of OPEC, because you can’t be a net consumer to stay in exporting countries.

“So, the challenge is for all of us. As the refining capacity is increasing, we have to now get production capacity to increase so that we remain the net exporter. We believe this will guarantee and fortify the future,” he said.

Responding to Kupolokun’s question on the need to address the low contribution of the oil and gas sector to the country’s Gross Domestic Product (GDP), which is less than 10 per cent, Auwalu attributed the abysmal contribution to lack of deep investment into the value chain of the sector as well as the export mentality of the players.

According to him, only few players, mostly indigenous companies, have the mentality of ensuring that more output, especially with respect to gas, was given to the domestic market to power the country’s economic growth.

He said there was need to focus on domestic market in order to grow the sector’s contribution to GDP.

He explained what the department and the Federal Government were doing to address the two-pronged challenge of energy transition and the transition from the international oil companies (IOCs) operating in Nigeria, who are divesting out of the country, leaving the indigenous oil companies to take over from them.

Auwalu said the department had foreseen such situation and had planned ahead by setting up the Oil and Gas Excellence Centre to equip local companies to be able to fill the gap created by such transition.

“Now, we are saddled with two transitions: energy transition and transition from IOCs to NOCs. Why did we establish Nigerian Oil and Gas Excellence Centre? It’s because of this. We’ve seen this coming; we thought it twice before now.

“It is our duty to make those companies functional, and to do that, we need to establish a centre of excellence that will help in the migration from IOCs,” he explained.

Also reacting to the need for scenario planning and the possibility of galvanising the private and public sector to work together to increase the value of oil and gas to the economy, as proposed by Utomi, the DPR henchman noted that the agency had transformed from mere regulator to business enabler and opportunity provider and was working to maximise the value of the sector to the economy.

Auwalu maintained that as a business enabler, DPR was after creating an enabling environment for operators to work, produce, make returns on their investments and pay taxes and royalties to the government as while providing employment to Nigerians.

Nation

REAN, SON synergise to curb fake renewable energy product

Published

3 weeks ago

June 29, 2026

The Tide

The Renewable Energy Association of Nigeria (REAN) says it has strengthened collaboration with the Standards Organisation of Nigeria (SON) to enhance quality control and enforcement frameworks.

Mr Oisereime Lloyd-Dietake, the Head of Communications, REAN, in a statement on Tuesday in Abuja, said the collaboration would also involve stakeholder engagement on testing, certification and capacity building in Nigeria.

He said the synergy would strengthen quality control and enforcement frameworks, promote policy alignment, and ensure stronger regulation across the renewable energy value chain.

“REAN reaffirms its commitment to standardisation and quality assurance; tighter collaboration with SON is critical to eliminating fake and substandard renewable energy products from the Nigerian market.

“Enforcement and gaps in existing standards have continued to allow inferior products to circulate, undermining consumer confidence and slowing sector growth.”

Lloyd-Dietake said that at high-level discussions, REAN also highlighted the need for stronger regulatory coordination to address emerging challenges in the renewable energy space.

According to him, the issues include inconsistencies in standards, affordability issues linked to certification processes; and the increasing presence of substandard solar and renewable energy equipment in the country.

“The association further raised concerns about delays in product testing and approval, calling for the establishment of more testing laboratories and certification facilities to improve efficiency and reduce bottlenecks in the system,’’ he said.

Lloyd-Dietake urged closer collaboration among key regulatory bodies, including the Nigerian Electricity Management Services Agency, the Nigerian Electricity Regulatory Commission, and the Rural Electrification Agency.

He said such team work would ensure harmonised standards and more effective enforcement against fake renewable energy products in the Nigerian market.

In response, SON acknowledged the important role REAN continued to play in supporting standardisation within Nigeria’s renewable energy industry and reaffirmed its willingness to deepen collaboration with the association.

SON further confirmed that REAN would be actively involved in future standard review processes and upcoming stakeholder engagements related to renewable energy and electric mobility standards development.

Lloyd-Dietake said REAN affirmed its willingness to formalise the partnership through a Memorandum of Understanding (MoU).

He said the MoU is aimed at deepening cooperation, promoting quality assurance, and accelerating Nigeria’s transition towards reliable and standardised renewable energy solutions.

Nation

Self Help Africa programme expands water access for 320,000 Nigerians

Published

3 weeks ago

June 29, 2026

The Tide

The WASH Systems for Health (WS4H) Programme, implemented by Self Help Africa, has expanded access to safe water and sanitation services for more than 320,000 people in Kano and Cross River States.

The organisation disclosed this on Tuesday at the WS4H National Results and Learning Workshop in Abuja, where stakeholders reviewed achievements and lessons from the intervention.

Speaking at the event, Self Help Africa Country Director, Joy Aderele, said the programme demonstrated that sustainable WASH improvements require strong institutions, effective governance, adequate financing and collaboration.

Aderele said the UK-funded programme was designed to strengthen systems that support sustainable access to water, sanitation and hygiene services.

According to her, the intervention focused on improving governance, planning, financing, accountability and sector coordination to ensure resilient service delivery.

“More than 320,000 people now have improved or restored access to water services through programme-supported interventions,” she said.

She added that more than 5,520 household toilets were constructed in Yala and Makoda Local Government Areas, boosting sanitation, public health and efforts to end open defecation.

Aderele said the programme also strengthened public investment in WASH, with Cross River increasing its sector budget by 211 per cent in 2026 and Kano by 169.07 per cent.

She added that dedicated WASH budget lines had been established across 40 Ministries, Departments and Agencies in both states, strengthening accountability and institutional commitment.

According to her, both states reviewed and adopted updated WASH policies, while key planning documents were developed to guide future investments and service delivery.

She said Cross River also recorded a major legislative milestone through the passage of the Water Law and Open Defecation Prohibition Bill.

Aderele added that lessons from interventions in Yala LGA were already informing expansion efforts in Obubra Local Government Area.

While commending the achievements, she noted that capacity gaps, resource constraints and climate-related pressures remained challenges to sustainable WASH services.

“The sustainability of these gains will depend on continued government leadership, adequate financing, strong partnerships and investment in institutional capacity,” she said.

Also speaking, the Programme Manager of WS4H, Mr Timothy Ibeawuchi, said the intervention focused on strengthening systems needed to sustain gains and attract future investments.

According to him, the programme engages stakeholders in developing strategies that preserve achievements and support long-term service delivery.

“System strengthening work takes time because it addresses the fundamental issues responsible for sustainable and resilient service delivery,” he said.

Ibeawuchi said the programme strengthened policy development, planning, financing, monitoring and evaluation systems across the WASH sector.

He said two pilot local government areas were supported to develop WASH strategic plans outlining sector goals, targets and activities between 2026 and 2030.

According to him, the plans will guide future interventions and improve service delivery in the affected councils.

Earlier, the representative of the UK Foreign, Commonwealth and Development Office (FCDO), Chidera Chukwu, reaffirmed support for Nigeria’s development efforts in spite of the programme nearing completion.

Chukwu commended the Self Help Africa-led consortium for delivering the programme with professionalism and a strong focus on systems strengthening.

He said the consortium contributed greatly to strengthening Nigeria’s WASH sector through policy reforms, improved coordination and enhanced accountability.

“Together, we have advanced key policy and legislative reforms, including open defecation-free laws and strengthened state WASH frameworks,” he said.

According to him, the reforms represent enduring system-level changes that will continue delivering benefits beyond the programme’s lifespan.

In his remarks, Mr Jamilu Habu, Director of Water Quality Control and Sanitation, Federal Ministry of Water Resources and Sanitation, commended the programme’s achievements.

Habu, who represented the Permanent Secretary, said the intervention strengthened governance, coordination, evidence-based planning and institutional capacity in the WASH sector.

He described the workshop as an opportunity to review achievements, share lessons and identify pathways for sustaining and scaling successful interventions.

According to him, the programme’s innovations and best practices will guide future policies and investments aimed at expanding access to safe WASH services.

Habu stressed the need for continued collaboration among governments, development partners, civil society organisations, the private sector and communities.

He said stronger partnerships remained essential to achieving universal access to water, sanitation and hygiene services and meeting Sustainable Development Goal 6.

Nation

Lagos Residents Stranded As Floods Cut Off Ajah, Mafoluku Communities

Published

3 weeks ago

June 29, 2026

The Tide

Residents of Ajah, Mafoluku and other flood-prone communities in Lagos have recounted how Thursday’s torrential rainfall left them stranded, submerged homes and cut off access to major roads.

The residents, who spoke with Tide source, on Friday called for urgent government intervention to tackle the recurring flooding blamed on poor drainage infrastructure.

Along Mobil Road in Ajah, Mrs Rukayat said floodwaters submerged about 200 metres of the road, forcing commuters to wade through waist-deep water.

“The water level was almost up to my lap. People literally had to wade through it to get home,” she said.

According to her, many motorists turned back, while others abandoned their vehicles and continued their journeys on foot.

“The only way to pass through the water was by walking or using a tricycle. Even then, the tricycles broke down and had to be pushed,” she said.

Rukayat said some youths assisted stranded tricycle operators by pushing their vehicles through flooded sections for a fee.

She said residents had repeatedly alerted authorities to the flooding but little had changed.

“We reported this when the rains started, but apparently nothing has been done about the problem,” she said.

She attributed the flooding to poor drainage and possible blockage of a major canal serving the area.

“There is a big canal here, but I don’t know what is preventing water from flowing through it properly,” she said.

According to her, overgrown vegetation and sand deposits might have obstructed the canal, reducing its capacity to discharge stormwater.

She added that although floodwaters usually receded after a few hours, sections of the road remained waterlogged.

In Mafoluku, residents said several streets, homes and access roads were submerged, leaving many unable to return home after going about their daily activities.

Mrs Iriagbonse Okunkpolor, a resident of Agboola Street, said what began as a short trip to buy household items became an hours-long ordeal.

“I left my house to buy a few items nearby, but the rain started suddenly and flooded the entire street.

“I was stranded for hours because there was no safe way back home,” she said.

Another resident, Mr Mukaila Idris, described the flooding as both dangerous and distressing.

“The current was very strong. I watched people pay young men to carry them across the water because they were afraid of being swept away or falling,” he said.

According to him, only physically fit residents could navigate the floodwaters safely, while many others waited several hours for the water level to subside.

Mr Williams Ekpo, who lives in the Eyinogun area, said the flood extended beyond the roads and entered residential compounds.

“The floodwater entered our compound and damaged some household items.

“This happens almost every rainy season, yet nothing seems to be done to address the drainage problem,” he said.

The residents urged the relevant authorities to investigate the persistent flooding and improve drainage infrastructure to prevent a recurrence during the rainy season.