Business

Nigeria’s Power Supply: Which Way Forward?

Published

11 years ago

June 15, 2015

President Muhammadu Buhari and Governor Nyesom Wike of Rivers State

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.

Shedie Okpara

Business

Bayelsa To Spend N1.24trn As Diri Presents 2027 Appropriation Bill …Works, Education, Sports, Others Gulp Lion’s Share

Published

3 days ago

November 6, 2026

The Tide

Bayelsa State Governor, Senator Douye Diri has presented the 2027 Appropriation Bill of the State to State House of Assembly.
Christened the ‘’Budget of Assured Prosperity for Sustainable Growth and Development”, the appropriation bill was based on a projected revenue of N1,242, 688,970,520,22.
The Governor said the 2027 proposals were derived from broad stakeholder engagements involving traditional rulers, technical experts, the organised private sector and citizens across the state, noting that it was a historic budget being the first as the state was beginning its fourth decade and presented at a time sustained investments were visible in all the local government areas.
“Our fiscal priorities remain clear: roads and bridges that connect communities, better health and education services, reliable power and an environment in which businesses and families can thrive”, he said.
Presenting the estimates, governor Diri said N840.791 billion representing approximately 68 per cent was proposed for capital expenditure while recurrent expenditure was put at N401.897 billion representing approximately 32 per cent.
He observed that the proposed budget was approximately 22 per cent larger than that of the 2026 fiscal year, which was N1.016 trillion, just as he listed some strategic projects that would continue to receive priority attention in 2027, saying they were all at advanced stages of completion.
The projects according to the governor, include the Ekeremor–Agge Road Phase I, Nembe–Brass Road Phase I, Akaba–Ayakoro Road with spur to Otuegwe 1, Glory Drive Phase 3, Agbere-Elemebiri Road, the 30,000-seater stadium at Igbogene, and the nine-storey state secretariat complex.
The governor expressed the conviction that with work progressing on the three senatorial roads, all local government headquarters would be connected to the state capital and boost socio-economic activities across the state.
“With work progressing on all senatorial causeways, we are moving closer to an ambition our people have held since the creation of the state: to connect the capital to every local government headquarters and open up access to our coastal communities. This will boost fisheries, marine and blue economy enterprises, and tourism.
“These projects demonstrate that our beautiful terrain should not limit our ambition. With resolve, sound planning and prudent management, Bayelsa is building what many once thought were impossible”, he added.
Giving a breakdown of the sectoral allocations, Works and Infrastructure got the lion’s share of N422.84 billion followed by Education ¦ 126.97 billion and Sports ¦ 68.50 billion.
Also, Health was allotted ¦ 53.32 billion, Security N24 billion, Public Utilities N22.94 billion and Agriculture got N17.74 billion.
Diri charged the Ministry of Budget and Economic Planning to enforce coordination, transparency and accountability and ensure effective implementation of the budget.
According to him, government would continue to improve its model schools, support accreditation of programmes in tertiary institutions, strengthen science and technical education and introduce digital learning tools in schools.
He added that the administration would pursue the upscaling of its 60 megawatts independent power plant to 100 megawatts and prioritise water provision in 2027.
He also remarked that the allocation to the sports sector would enable government accelerate work on the stadium project as the state prepares to host the National Sports Festival.
In his remarks, Deputy Speaker of the House of Assembly, Rt. Hon. Michael Ogbere, commended Governor Diri for the successful implementation of the 2026 budget, and appreciated him for his visionary leadership.
Hon. Ogbere described Diri as a peace maker, bridge builder and a leader who has constructed roads and bridges across 80% of all communities in the state, expressing confidence that the projects outlined were achievable.
The Deputy Speaker assured the governor of the 7th Assembly’s support and speedy passage of the budget while the Majority Leader, Rt. Hon. Monday Bubou, moved a motion for the members to pass a vote of confidence on Governor Diri and the administration, which was unanimously endorsed by the lawmakers.

Ariwera Ibibo-Howells, Yenagoa

Business

NNPC Targets Two Million Bpd Productions In 2027

Published

3 days ago

November 6, 2026

The Tide

The Nigerian National Petroleum Company Limited (NNPC) has said that ongoing reforms in Nigeria’s oil and gas sector have lifted national crude oil production by 600,000 barrels per day, from about 1.2 million barrels per day to 1.8 million barrels per day.
According to the company, the improvement has strengthened Nigeria’s position as a destination for international energy investment.
Group Chief Executive Officer ( GCEO) of NNPC Limited, Engr. Bashir Bayo Ojulari, made the remarks last week at an Energy Talk titled “Nigeria’s Reform Agenda: Competing for Energy Capital”, moderated by John Defterios, Chairman, MENA, APCO, at the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates.
Ojulari linked the production growth to the implementation of the Petroleum Industry Act (PIA) 2021, an improved investment climate, better investment decisions, and stronger collaboration between NNPC Limited and its partners.
He said the current output level is a milestone in NNPC Limited’s journey towards its 2 million barrels per day target by 2027.
The Company, he explained, is focused on maintaining infrastructure, protecting base production, increasing output from existing assets, and advancing new projects designed to lift production further.
“The figure of 1.8 million barrels per day is a stage in a journey towards our objective.
We are concentrating on the basics, which are maintaining our infrastructure, protecting base operations and executing the projects that will take production higher,” Ojulari stated.
On the domestic market, the GCEO said the removal of petrol subsidy has been accompanied by an expanded Compressed Natural Gas (CNG) programme.
He noted that over 400 CNG conversion centres have been established, while more than 1,000 trucks are transporting petroleum products

Nkpemenyie Mcdominic, Lagos

Business

SEREC Demands Independent Forensic Audit Of NIMASA CVFF Funds

Published

3 days ago

November 6, 2026

The Tide

The Sea Empowerment and Research Centre (SEREC) has call for an independent forensic audit of the Nigerian Maritime Administration and Safety Agency (NIMASA), following conflicting claims over the management and currency status of the Cabotage Vessel Financing Fund (CVFF).
The centre said the controversy surrounding the fund had reinforced its earlier concerns about transparency, accountability and the possible erosion of contributions through currency conversion and administrative decisions.
In a reaction titled, “Cocks Crow at Dawn — On the CVFF Audit Crisis,” forwarded by SEREC’s representative, Eugene Nweke, the organisation said the latest revelations had vindicated its earlier calls for a comprehensive examination of NIMASA’s accounts from 2004 to date.
SEREC said former NIMASA Director-General, Temisan Omatseye, had disclosed that dollar-denominated contributions were converted into naira and invested in fixed deposits during his tenure, while the incumbent Director-General, Dr Dayo Mobereola, maintained that the fund remained in dollars with the Central Bank of Nigeria.
The organisation said the conflicting accounts raised questions about the actual value, location and management of the fund, which was to provide financing support established for indigenous shipowners under the Coastal and Inland Shipping (Cabotage) Act.
It argued that shipowners, as contributors to the fund, deserved documentary evidence showing how much had accrued, where the money was domiciled, the interest generated and the amount currently available for disbursement.
SEREC also warned that converting dollar contributions into naira exposed the fund to significant foreign exchange losses, given the depreciation of the local currency over the years.
According to the organisation, if the contributions were converted into naira and retained in that currency, the fund could have suffered a substantial erosion in its real value, undermining its original objective of strengthening indigenous shipping capacity.
It maintained that the CVFF was contributors’ money and should not be treated as government largesse, stressing that shipowners had a legitimate right to demand accountability.
The centre further criticised maritime industry stakeholders, particularly shipowners’ associations, for allegedly prioritising access to the fund over sustained demands for transparency in its management.
SEREC insisted that no disbursement should take place without a comprehensive forensic audit to establish the fund’s financial history and current position.
It said the audit should cover all contributions, currency conversions, investments, accrued interest and administrative transactions relating to the fund from 2004 to date.
The organisation said the findings would provide the necessary clarity on the financial position of the CVFF and help restore confidence among indigenous shipowners seeking access to the facility.

Nkpemenyie Mcdominic, Lagos