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Domestic Gas Supply To GenCos Rises By 20.2% In Q1’21

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Domestic gas supply to gas fired generating plants (GenCos) across the country rose significantly by 0.51million standard cubic feet per day (mmscfd) to 2,505mmscfd in the first quarter (Q1) of 2021.
This is 20.2 per cent increase when compared to 2,000mmscfd recorded in the corresponding period of 2020, data contained in the Nigerian National Petroleum Corporation (NNPC), Financial and Operations Report for the month of April, 2021 has shown.
According to the report, a total of 795mmscfd was delivered to gas fired power plants to generate an average power of about 3,416MW of electricity in April, 2021.
It was gathered that this is a decline of 6.0 per cent when compared 844mmscfd supplied in March, 2021 to generate 3,530MW.
The generation sub-sector includes 23 grid-connected generating plants in operation with a total installed capacity of 10,396MW (available capacity of 6,056MW) with thermal-based generation having an installed capacity of 8,457.6MW (available capacity of 4,996MW), and hydropower having 1,938.4MW of total installed capacity with an available capacity of 1,060MW.
However, the report also indicated that a total of 2,355mmscfd of gas was sent to the generating plants in the fourth quarter of 2020, an increase of six per cent when compared to Q1’2021.
A breakdown of gas distribution figures showed that a total of 209.27Billion Cubic Feet (BCF) of natural gas was produced in the month April, 2021, translating to an average daily production of 6,975.72mmscfd.
For the period April, 2020 to April, 2021, a total of 2,902.52 BCF of gas was produced representing an average daily production of 7,369.76mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07 per cent, 19.95 per cent and 17.98 per cent, respectively, to the total national gas production.
According to the NNPC report, out of the 206.40BCF of gas supplied in April, 2021, a total of 126.83BCF of gas was commercialized; consisting of 42.92BCF and 83.91BCF for the domestic and export market, respectively.
This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94mmscfd of gas supplied to the export market for the month.
This implies that 61.45 per cent of the average daily gas produced was commercialized while the balance of 38.55 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 9.74 per cent for the month under review.
Total gas supply for the period April, 2020 to April, 2021 stood at 3,081.77 BCF out of which 548.34 BCF and 1,398.78 BCF were commercialized for the domestic and export market respectively.
Gas re–injected, fuel gas and gas flared stood at 1,134.64 BCF.
“Out of the 1,430.90mmscfd of gas supplied to the domestic market in April, 2021, about 794.79mmscfd of gas representing 54.54 per cent was supplied to gas-fired power plants while the balance of 636.11mmscfd or 44.46 per cent was supplied to other industries”.
Similarly, for the period of April, 2020 to April, 2021 an average of 1,313.32mmscfd of gas was supplied to the domestic market comprising an average of 778.76mmscfd or (59.30%) as gas supply to the power plants and 534.55mmscfd or (40.70%) as gas supply to industries.
The Federal Government has stated that plans are underway to reduce the price of gas for power generation companies in the country.
This, according to the Minister for Industry, Trade and Investments, Otunba Adeniyi Adebayo, was geared towards boosting the manufacturing sector competitiveness which has been hampered by power electricity supply.
Speaking at a roundtable discussion on the industrialisation of Africa organised by the Manufacturers’ Association of Nigeria (MAN), Adebayo, noted that Africa contributes less than two per cent to international trade, pushing it to the bottom of the global value chain.
He said this led to lower export trade volumes, lost job opportunities and reduced foreign exchange for players in the continent’s real sector.
According to him, all stakeholders need to work together towards developing measures to improve the cost competitiveness of the manufacturing sector in order for Nigerian industries to lead the transformation of the country and Africa’s economy.
Adebayo said, “For example, we are collaborating with the Ministry of Petroleum Resources to lower the cost of gas which is critical to the production of the energy sector. This is one factor that can improve the cost competitiveness of the sector.
“Another way that Nigerian industries can position themselves for the African economic transformation is by aligning themselves with the country’s industrialisation programme.”
Despite the rise in domestic gas supply, Nigerians have continued to lament over the epileptic power supply across the country.
The former President, Manufacturers Association of Nigeria (MAN), Mr Frank Jacobs, stated, “It is possible to gauge the loss suffered by manufacturers arising from paucity of electricity supply and high cost of alternative energy source. Capacity utilization in the sector has barely been above 50 per cent.
“This implies that the production has been sub-optimal; production value in the sector was estimated at N8.38trillion in 2016. Another way of measuring the loss to manufacturers as a result of the challenges of electricity supply is by looking at the huge cost of alternative energy which was estimated at N129.95billion as at 2016.
“Even though the sector, especially the distribution aspect has been privatised, it is important that government should find ways and means of supporting the DisCos until a stable, quality and reasonably priced electricity is available to the manufacturing sector.
“There is need for government to continue to offer integrated support to all stakeholders on the NESI value-chain i.e. manufacturers, GenCos, TCN, and DisCos in terms of finance and expertise.”
A trader in Olodi-Apapa, Kazeem Onoja, said power supply was good when he moved to the area about eight years ago.
According to him, “Then, public power supply from PHCN was quite okay, we were having between 14 and 20 hours of power supply on most days. We knew their schedule – the days we are meant to have supply and the days we would not have except a major fault occurred.
“Power supply has steadily deteriorated as the area developed and more people come into the neighbourhood”.
On her part, Executive Secretary, the Association of Power Generation Companies (APGC), Joy Ogayi, said, “To bridge the gap between demand and supply of power, there is need for all parts of the power chain to be fully effective to bring about the installed capacity of 13,200MW to hungry consumers.
“However, this is not the case in the power sector in Nigeria.”

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Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings

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The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.

This was contained in an online report obtained by The Tide Source in Port Harcourt recently.

The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.

The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.

The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.

Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.

The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.

The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.

Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.

Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.

Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.

His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.

Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.

The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.

The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.

‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.

“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.

 

King Onunwor

 

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Firm Mulls Crash Down On Vegetable Oil Price …Targets Revenue Boost, Job Creation

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A firm, Kompetenz Investment Zentrum Ltd,  has said it would crash down the cost of vegetable oil in the market through adequate production and milling of its product for large scale sales in and around the State.
The Head, Human Resource Management of the firm, Mrs Amina Shehu said this in Yenagoa, the State capital, Wednesday while speaking with newsmen on an inspection tour of the company.
She noted that while other firms have previously managed the Palm farm, her company which she described as an experienced manager of palm farms recently acquired right of management of the Bayelsa Government-own palm plantation in September, 2026.
“We inherited a poorly managed farm and machineries from our predecessors, and so we’re working assiduously to overhaul the mills in this firm, more especially the biggest one.
”Today we’ve been able to put the small one into use, and it’s functioning well. Some engineering contractors have also came around with their various interest in bidding for the repair and overhaul of the ailing big mill we inherited, but surely the cost of repairs shown to us by the engineers run into billions.We’re however determined to get all our equipments and machinery functioning soon”, she said.
Mrs Shehu bemoaned the dysfunctional State of the farm facilities prior to its acquisition,  adding however that there were plans by the company to get all moribund machinery functioning and put them to maximum utilisation and production capacity, while also working towards ensuring revenue boost for the firm and the State in the future.
Speaking on manpower and employment generation, the company’s HRM  emphasised that at low peaks, the firm has employed no fewer than 200 staffers, comprising regular, casuals and workers on its daily payroll.
“At peak periods of harvest, more hands would be employed and production and milling capacity will be increased to 10 tons of palm oil  per day in order to gradually crash down the soaring price of red oil in and around  this State.
“We have just acquired the right of management of the Bayelsa Palm estate in September, 2026. We’re barely two months old as new management of this farm. As you can see for yourselves, a lot of work is currently ongoing in this farm.
“We have borrowed loans to run this farm, and so a lot of work; slashing of the palm fruits and clearing of the farm is ongoing.  But upon what we have done which amounts to millions, it’s like we have  not yet started because the Bayelsa Palm estate is really big” Mrs Shehu added.
She noted that during the world food day the company  “showcased some of our produce and as we speak calls are coming in from far and near placing orders and showing interest in doing business with us.
“Our Director (our boss), has the requisite experience in this business. He has reinvigorated and invested in similar Palm farm businesses in other parts of this country.
“Some contractors have also came around with their various interest in bidding for the repair and overhaul of the ailing machinery we inherited, but surely the cost of repairs shown to us by the engineers run into billions.
‘We determined to get all our equipments and machinery functioning as we progress. For now we have  about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”.
The Tide gathered that the firm is the new operator of the Bayelsa Palm estate and managers of the state’s Palm tree plantation.
The Tide  spoke with a cross section of traders and consumers in major markets of the State and reports said the price of Palm oil which is botanically referred to as ‘elaeis guineensis’ has increased astronomically in recent months, due to general inflation in prices of commodities.

Ariwera Ibibo-Howells, Yenagoa

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Traders Decry Continuous Increase In Prices Of Foodstuffs

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Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.

This was made known by the traders when The Tide  visited the market recently.

The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .

A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to  N200 was seen.

Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.

According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of  N13,000.

Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.

A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.

Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.

In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.

Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.

Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.

He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .

Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.

Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .

Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.

“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.

He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.

The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.

Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.

He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.

Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.

Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.

He further commended the President, the Federal Ministry of Power and TCN for completing the project.

It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.

 

Wali Chioma, Obasi Chidinma & Amarachi Uche

 

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