Oil & Energy
Reps Uncover $270m Forex Scam
The House of Representatives ad hoc committee on the Review of Pump Prices of Petroleum products on Thursday, discovered another staggering sum of $270 million collected by oil marketers for the purpose of purchasing petroleum products but which was rather diverted.
A document provided by the Central Bank of Nigeria (CBN) to the Hon Nnana Igbokwe-led investigative panel, indicated that the amount was applied for and received for the purpose of importing petroleum products, including kerosene and petrol.
The House also queried the oil companies for diversion of petroleum products which were allocated to them for listing and distributions which, unknown to them, were tracked.
Following this discovery, the committee issued a summon on the Managing Director of Ascon Oil Limited to appear before it on May 15.
The representative of Folawiyo Energy Limited Oladikpo Makanjuola, was handed over to anti-fraud unit of the Nigeria Police to make further statement on allegations of diversion of petroleum products and forex.
Igbokwe said, Ascon Oil Limited collected forex worth $190 million for the purchase of petroleum products which unfortunately were diverted.
The panel placed for further inquiry into the status of 25 metric tones of petroleum products in the custody of Folawiyo Energy Limited which was discharged in June 2015 at MT High Efficiency by Pipeline Products Marketing Company (PPMC) that cannot be traced.
In his testimony, Mr Makanjuola, denied that his company was owing PPMC stock or take responsibility for any missing product, remarking that, “because we only followed what they instructed us to do.
“For the record, my company has never owed PPMC in finance or stock, it will be uncharitable for them to claim we owe them. They are responsible for evacuation of their stock. We only do the physical inspection”, he said.
But, however, the House committee insisted they must take responsibility for the status of products allocated and lifted by them as indicated in the log book and flow charts provided by the PPMC.
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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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