Oil & Energy
IPMAN Blames Aggrieved Members For Nigeria’s Petrol Woes
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says some aggrieved members frustrated foreign investors from establishing refineries in the country.
IPMAN President, Chinedu Okoronkwo, who spoke on the backdrop of the fuel scarcity in Nigeria and increase the price of aviation fuel and diesel, said the crises could have been prevented if the country had working refineries.
He said some investors from Italy had perfected plans to invest $3bn in setting up two refineries in Bayelsa and Kogi states but were frustrated out of the country.
Okoronkwo, who said this recently in The Arise TV Interview monitored by our correspondent, urged the government to provide some interventions to solve the aviation fuel and diesel crises.
Air fares have skyrocketed in the country in recent days as the price of aviation fuel rises steadily and now sells for about N600/litre.
On why it was difficult for IPMAN to work with the government in resolving moribund local refineries and stop oil importation, Okoronkwo said, “When I came on board, that was one of the major issues we had wanted to tackle.
“In any house where you have crisis, that house does not grow. Those (members) who lost started throwing tantrums, doing a lot of things to disturb that process.
“We would have had about two refineries now: one at Itome in Kogi and another one in Bayelsa. A group came from Italy with about $3bn. We took them to the Villa, DSS and they did their documentation. Those groups who felt they were not happy with what was going on started harassing those white investors and they left. The lands and everything are still there”, he said.
The IPMAN boss, however, advised against selling Nigerian refineries “as scraps,” noting that they should be fixed “before talking about selling them.”
He continued that “We have divisions of labour. If this product (petrol) is available, the marketers will work for 24 hours or even 48 hours. I can’t talk for the government. But right now, they have assured us of availability and we must go to bank with their words.
“The dollar is the determinant of these products. I think that is the area government can look at and see how refineries can take off, looking at the chain of bringing in the products. By the time these local refineries are up and running, some of these problems will not be there.
“For now, everything comes from abroad even the aviation fuel. The government can do some intervention so that this crisis (of high cost of diesel and aviation fuel) will not escalate. Russian war is another factor. Intervention will go a long way.
“The government did it with the aviation issue when Abba Kyari was alive. He called the marketers and singled those who are into aviation fuel and NGO (diesel) and the government did some interventions.”
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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