Business

Towards Efficient Power Supply In Rivers

Published

9 years ago

July 3, 2015

A Gas Turbine Generating Station in Rivers State.

The Rivers State Governor,
Chief Ezenwo Nyesom Wike in his maiden address during his inauguration on May 29, 2015 reeled out his action plan, among which was to enhance the Rivers people’s prosperity through power supply and energy security. He promised to ensure the completion of on-going electrification projects.
According to him, as an initial step towards tackling the challenges 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 power sector by the immediate past administration. We will also review all issues relating to the secret privatisation and or sale of the government investments in power and other related projects without due process”.
Without wasting time, the governor has set up a Judicial Panel of Inquiry to probe the alleged sales of four Gas Turbine Generating Stations. They are Trans-Amadi (Port Harcourt) Station – 3x20mw solar GT, Omoku (ONELGA) Gas Turbine – 3x20mw solar GT, Eleme (ELGA) Gas Turbine – 1x20mw (G.E. Engines) and Afam Gas Turbine Station.
These were projects initiated and completed through the former Governors Peter Odili and Governor Amaechi’s administration’s then decision to embark on an extensive construction of the State Power Grid System (450mw) projected over 10 years period to feed all the 23 local government areas in the state.
There were also two others – Soku (AKULGA) Station 2x10mw and Bonny (OLGA) Station – 2x10mw involved in the scheme as a reintegration into the new grid system.
The Rivers State government Policy Strategy for the development of power infrastructure is structured to achieve economic empowerment of its citizenry and to raise the living standards of the people through the establishment of sustainable industrial base grassroots programme. This actually informed Governor Odili to initiate the gas turbine projects. Now, Governor Wike irked by the present scenario in the power sector of the state has decided to find out the root cause of the incessant epileptic power supply in the state.
Some people have misconstrued Governor Wike’s intention as an action to witch hunt the immediate past governor Chibuike Rotimi Amaechi while some view it as a cheap way of gaining or currying the favour of Rivers people.
Whichever way anyone might think about the probe into the alleged sales of the four gas turbine plants, the decision of Governor Wike is in the right direction and in the good interest of the entire state and the people.
In the advanced countries of the world, energy availability is highly prized so much so that living standard is a measure of the National Energy Index or industrial development. Some schools of thought believed that Africa’s under-development was initiated by Europe during the heinous slave trade that was alien. But today in several countries, under development has become a trademark in transitional societies.
Development is a function of growth and change in the economic, political and social institutions just as a positive change in the people’s lives gives eloquence to dismal economic and social deprivation. Rivers people have suffered for decades despite the lavish generosity God has bestowed on the state, hence every leader of the state must strive to put in place a programme of infrastructural development designed to raise the moral tone of a people whose poverty profile ranks the worst in the midst of plenty in the whole world.
Rivers people deserve an aggressive rural and urban electrification programme, economic empowerment / poverty alleviation, among others that need to be factored on both short and long terms.
Electrification by means of Isolated Diesel Generating Stations as a stop-gap should be a measure for short-term relief while long-term programme should embrace a two-system generation and supply such as electrification by means of direct inter-connection to National grid and gas turbine power plant / grid system.
The Odili administration had put both long and short-term objectives for electricity supply for the state to achieve reliable power supply to rural communities.
It has also provided standby power plant to boost existing state government development programmes / efforts in the rural areas, establish a sustainable industrial base in the rural areas as well as build a bridge to link government and the rural population by creating development impacts and economic empowerment of the rural dwellers.
One would think that this is in line with the present administration’s plan to develop more urban towns from Ahoada, Bori and Degema. It is our belief that adequate supply of reasonably prized energy is an essential ingredient for meeting the basic needs of society, stimulating and supporting economic growth as an index of industrialisation. The Wike administration as we can see, has taken electrification as a major policy focus and the thinking now is the urgent need to establish a sustainable industrial base in the rural areas of the state to arrest the rural-urban drift syndrome and provide a catalyst for industrial growth of small and medium scale industries. Such policy drive will provide a conducive atmosphere for employment generation and poverty alleviation at the grassroots.
Government should be faithful in the implementation of its development policies, especially as it concerns electrification projects conceived as prime movers with multiplier effects in various catchment areas of the state. The rise in power consumption has assumed a progressive surge since the end of the Nigerian civil war in 1970 and the national grid has become weak and fragile to cope with the insatiable power demands, so there is the need to revolutionise the concept of gas turbine power plant application as an alternative power generation system to the wailing and dwindling national grid now in the control or hands of private power distributors.
The Rivers State government, beginning from the Odili’s administration to Amaechi’s regime has spent billions of Naira to acquire, install and operate four gas turbine power generating plants but the power supply situation has not witnessed or produced any positive result. It is important that before this administration continues to invest in power supply, it should find out the actual cause of the problems and factors militating against power generation and distribution in the state. These problems underscore the necessity for the on-going probe so as to know the way forward in the state’s power sector. Governor Wike’s decision is in order.
The reason for the probe is not far-fetched because we don’t have to remain stagnant and expect things to normalise without certain decisions backed with actions.
More than 75 per cent of the power transmission / distribution infrastructure on the national grid in the state were constructed and funded by the Rivers State government without any refunds from the federal government or the agencies concerned after commissioning. In adding, other payments have been disbursed to the power agencies for supply / installation of distribution transformers but all these efforts have yielded no satisfactory result.
Rivers State is playing host to a number of strategic and heavy power consuming industries with already congested radial feeder which is grossly inadequate to meet the ever-rising power demands in the state, so it has become expedient if not compelling that the Federal Government commences work on the construction of more transmission infrastructure to improve power flow into Rivers State. The Rivers State Government in collaboration with oil companies in the state such as Shell Petroleum Development Company (SPDC), Agip, Total and others should work out ways of providing constant power to the rural communities through gas turbine plants.
Investments in gas turbine power generating electrification scheme is a profitable venture, not in terms of cash returns, but will continue to attract favourable consideration as a reliable power plant in the state. The operation of gas turbine as a power plant permits wider flexibility in fuel application, improves system stability under designed load and holds good hope for low capital investments per megawatt output in the long-term. It is understood that major electricity generation / supply industry activities are replete with difficult problems and sometimes unpredictable failures requiring immediate remedial actions to address the incipient faults through efficient maintenance of all power system plants and equipment. This requires the total commitment of government in training skilled manpower and staff mobility as well as handling the challenges in equipment and gas delivery.
Attention must be given to poor maintenance culture and power equipment replacement policy caused by the former administration. There is no gainsaying that one of the most effective means of power generation in the world today is through the use of gas turbine engine, but it is capital intensive and very expensive to maintain.
Therefore, one sure way of sustaining the present Rivers State government-owned gas turbine projects is through a well-articulated revenue generation system.
Gas turbine engines are made to function non-stop for about 30,000 hours (4 years) before it is due for major servicing. So, by implication, consumers are expected to have an uninterrupted power supply for four years. This makes it mandatory for beneficiaries of the project to pay the required revenue in order to ensure sustainability of the project.
Certainly, consumers would be pleased to pay when they begin to enjoy steady power supply. By doing that, the state government has to enact a legislation for power generation, transmission and use in the state. This will ensure uninterrupted power supply in Rivers State just like in the advanced countries.

Shedie Okpara

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

19 hours 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

5 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