Oil & Energy
Stakeholders Predict Stable Oil, Gas Sector
Stakeholders in the oil and gas sector have expressed optimism that Nigeria’s exit from economic recession will help to stabilise the industry.
They also commended the federal government’s effort at exiting the country from the recession.
They made the commendation in separate interviews with journalists in Lagos following the National Bureau of Statistics (NBS) Gross Domestic Product Report for the second quarter 2017.
The National Bureau of Statistics (NBS) had said Nigeria exited its worst economic recession in more than two decades, notching up growth of 0.55 per cent in the second quarter of 2017.
President, Oil and Gas Trainers Association of Nigeria (OGTAN), Dr Afe Mayowa, said Nigeria’s exit from recession would bring stability in the oil and gas sector, adding that “it’s an indication of good things coming to the industry”.
Mayowa said that the sector would gradually regain its lost glory, adding that it controlled over 90 per cent stake in the economy.
According to him, the federal government has been working hard in ensuring the sector gets over its challenges.
“There is peace and tranquility in the oil communities.”
The National President, Nigeria Gas Association (NGA), Mr Dada Thomas, said it was a good news that Nigeria’s economic growth stood at 0.55 per cent in the second quarter of 2017.
Thomas said that government could achieve better and faster growth rate by encouraging gas to power, while urging government to ensure effective policy formulation that would attract investment in the oil and gas sector.
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, said that the empirical issues affecting the economy were still there but added that the latest figures showed that there was improvement at the macro level.
According to him, this gives positive signals to investors that the economy is turning around.
“It shows that some of the positive steps are taking effect at the macro level.
” However, the challenges of productivity, business environment and costs of doing business need to be addressed.
“On the part of citizens, they are worried about their social welfare while businesses are worried about several hindrances and costs of doing business. Worries vary across the board,” he said.
The Managing Director, Degeconek Nig. Ltd, Mr Abiodun Adesanya, said it was possible for Nigeria to be out of recession, as the country’s economy was heading to the right direction.
Adesanya commended the NBS pronouncement that Nigeria was out of recession “because the prediction had always been that things were heading in the right direction”.
According to him, it simply means Nigerians should continue with that trajectory so that they don’t nosedive again. The citizens need to be careful so that they don’t have wastage.
“However, the implication is that we have to ensure that we really build upon what we did and ensure it has direct impact on what we are doing.
“It is also very important that we take lessons learnt and that we actually apply those lessons so that we don’t make the mistakes all over again.
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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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