Oil & Energy
Expert Proffers Solution To Nigeria’s Energy Challenges
As divergent views continue to trail insinuations over another hike in the prices of petroleum products, an energy expert, Dr Samuel Dike, has warned that any attempt to make Nigerians pay more for petroleum products would be counter productive.
Dike who holds a doctorate degree in Energy Law in an interview with The Tide said Nigerians were already at the brickwall due to recession caused by inappropriate policies of Federal Government .“Government has erased subsidy in the petroleum sector, increased pump price two times in this adminsitraiton, promising that things will get better, and things are not getting better.
“For Government to come up with the idea of further price increase means government is incompetent to handle of Nigerian problems and the towel should throw in the well,” he said.
Advising Federal Government to jettison any such idea the don proffered solutions to the current challenges confronting product availability in particular and critical aspects of the sector.
Dike stressed the need for government to stop importation of petroleum and invest all the money recovered from politicians in refineries for adequate production to meet the needs of the people.
“Government should grant lincence to more individuals and groups with capacity to establish refineries.
“Government should recognise the illegal refineries, talk with the operators and regulate their activities so that they could be producing and pay taxes to the government”, he said.
Dike who studied in University of Aberdeen, United Kingdom advised Federal Government to replicate the mineral Mining Act 2007 by which government recognised small-scale miners, granted them licence to produce minerals, Gold, Limestone such that the beneficiaries are today rich in the north.
He explained that such legal framework should also be introduced for small scale operators n the Niger Delta region instead of tagging them as illegal bunkerers.
The energy expert called on government to recognise, regulate and empower them so that they could operate legally and flood the local market with petroleum products. He also urged government to restructure the Nigerian National Petroleum Corporation (NNPC) and make sure it is well positioned to promote energy security.
The university lecturer who is also the Managing Director, Global Research Support Limited, stressed the need for domestic supply obligations to all companies so that after empowering them they can be invovlved in producing and supply to the domestic market before they export.
On the issue of militancy in the Niger Delta region, he emphasised that for fruitful negotiation between the militants and the Federal Government noting that the Niger Delta, according to United Nations Energy Information and Administration, has produced over $400 billion worth of crude oil since oil was first struck in commercial quantity but regretted that the region has no tangible development to show for the huge contribution other than pollution and environmental degradation.
He said when development in the region is commensurate with what it had yielded such that cities in the region becomes like Abuja, and people from the region accorded their rightful position in the oil sector, the militant agitation would be a thing of the past.
Chris Oluoh
Oil & Energy
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Oil & Energy
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By Felicity Bradstock for Oilprice.com 16
Oil & Energy
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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