Business

Nigeria’s Power Supply: Which Way Forward?

Published

9 years ago

June 8, 2015

The importance of power or electricity in the growth of any economy worldwide cannot be under-estimated based on the fact that every other sector depends on the availability of power to function effectively and productively. This understanding prompted President Muhammadu Buhari to single out dwindling power supply as the major cause of the nation’s poor economic performance over the years.
Buhari in his inaugural speech to the people of Nigeria at his swearing-in on Friday, May 29, 2015 at the Eagle Square, Abuja, described as a national shame that an economy of 180 million generates only 4,000MW, and distributes even less. According to him, continuous tinkering with the structures of power supply and distribution and close on 20 billion dollars expanded since 1999 have only brought darkness, frustration, misery and resignation among Nigerians, saying “we will not allow this to go on.”
He noted that careful studies are underway during this transition to identify the quickest, safest and most cost-effective way to bring light and relief to Nigerians.
Sounding similarly, Rivers State Governor, Barrister Ezenwo Nyesom Wike in his inaugural address to Rivers people said “we will seek to enhance our prosperity through power supply and energy security.
He stated that until steady power supply is taken for granted, our development efforts will be in jeopardy and so we will strive to achieve power and energy security for Rivers State in partnership with the private sector and the Federal Government as well as ensure the completion of on-going electrification projects.
“As an initial step towards tackling the challenge of irregular power supply before making fresh investments, we will conduct a forensic audit to find out the reasons behind the failure of the state to reap maximally from the huge investments already committed to the sector by the immediate past administration. “We will also review all issues relating to the secret privatization and or sale of government investments in power and other related projects without due process”, he stressed.
Meanwhile, the new administration of President Muhammadu Buhari is under intense pressure to reverse the privatization of power assets in the country initiated under the out-gone Goodluck Jonathan government. Another task given to the federal government is to increase its equity in the already privatized power assets from 49 to 59 per cent in order to have control in the running of such power assets across the country.
The move has already received endorsement from the National Union of Electricity Employees (NUEE) which called for immediate review of the power sector privatization exercise on the strength of alleged irregularities, fraud and worsening power situation in the country. The NUEE was responding to a statement by the out-gone Minister of Power, Professor Chinedu Nebo that the new government should not tamper with privatisation of the power sector.
According to NUEE, the privatisation of the sector has made the generation and consumption of power in the country to be ineffective, adding that the payment of over N200 billion to the private sector by the government after the privatization exercise leaves much to be desired.
Leaders of the union and General Secretary and factional president of Nigerian Labour Congress (NLC), Comrade Joe Ajaero said there is need for the Buhari presidency to revisits the privatisation because the exercise has not made any positive impact on consumers, months after it was done.
“We want to say, as a union, that the sham called privatization should be revisited. If privatization as we were told, was to bring us heaven-on-earth, and it has not done that, why would we insist on it? Of course, our position as NUEE has been No to privatization, especially given that we are an under-developed economy. It is the function of the state to provide power. Even the so-called privatization you can see that even this year alone, between January and now, they have even given the so-called private sector over N200 billion. So, why fund them if you say that electricity is in the hand of the private sector? That brings you to the fraud on who owns them. Why should you sell your house to somebody and you still give him money to maintain it? So, it’s a fraud,” Ajaero said.
There is a huge cry by electricity consumers nationwide that privatization of the nation’s power assets seem not to have generated the desired results as the power situation in the country continues to dwindle.
Industry sources said that given the flood of complaints by electricity consumers nationwide over constant power outages and huge estimated bills by the private owners of power assets, the new government of President Buhari may decide to take a second look at the entire power privatization process.
According to some industry experts, the new owners of the privatized assets are not helping matters as they are more interested in recovering their investment instead of upgrading dilapidated power facilities. “The new owners are more of financial experts who want to recover their monies so soon,” they said, adding that it is expected that if the Buhari government increases its equity share in the power companies, given its mindset to fight corruption, there would be improvement in power supply in the country.
Also adding their reaction to the attitude and activities of the private power owners the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged the Federal Government to enact laws that would enhance utilization of power-saving technology and moderate electricity wastage.
Its Director of operations, Mike Osatuyi who made the appeal in an interview with newmen said the nation’s epileptic power supply had made it imperative for government to ensure effective power or electricity utilization and energy conservation. As he put it, “there is need for the government to enact a law to checkmate electricity wastage following the nation’s high demand for electricity supply,” pointing out that his company was prepared to partner with government agencies to provide the technology and technologists, equipped with technical know-how in energy conservation techniques.
He noted that the power-saving technology would reduce pressure on generation and eliminate the burden of huge investments on more generating plants by government. Osatuyi emphasised the need to operate an influential state structure for policy realisation in power efficiency and also monitor the activities of the private investors in the power sector.
Also expressing their worry over the poor services of the distribution companies since after the privatisation process, the Managing Director, Energy Solution Nigeria Limited, Mr Yomi Kolawole urged electricity consumers in the country to seek legal action against DISCOs to stop outrageous billing of the customers.
Kolawole said since the Federal Government handed over Power Holding Company of Nigeria (PHCN) to private investors last year, the electricity supply had worsened, while there had been a steady increase in monthly billing. He noted that some consumers have resorted to vandalizing DISCOs’ installations in their communities.
“Now that the power sector has been privatized, the individual companies must be held responsible for their actions.
They cannot continue to give consumers outrageous bills monthly without electricity supply. The Nigeria Electricity Regulatory Commission (NERC) had ordered all DISCOs to provide us with prepaid meters, but till now, they have not given up to 10 per cent of their customers”, Kolawole emphasized.
Some artisans in Lagos recently decried the increase in electricity tariff, saying that it negated the federal government’s policy on inclusive growth and self-employment. NERC chairman, Dr Sam Amadi had explained that the increase was a result of recent rise in the price of gas and other technical losses incurred by the power generation and distribution firms. But a barber interviewed had said it was wrong for NERC to increase tariff now that power was not stable.
A Lagos High Court has, however, stopped NERC from implementing the new tariff.
The way forward in the country’s power supply is in question and it is a herculean task before the present administration of President Muhammadu Buhari and other administrators of this nation.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

2 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

6 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu