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On Melaye’s Power Sector Exposé

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Senator Dino Melaye, representing Kogi West Senatorial District in the National Assembly (NASS) stirred the hornet’s nest recently as he took a swipe at the Nigeria’s power sector, describing it as reeking of corruption.
Acting on the mandate and directives of the upper legislative chamber, the Kogi-born Senator during plenary, presented a substantial motion on what he referred to as “series of financial abuses in the power sector”.
Apparently securing the nod of his colleagues on the presentation of the motion through a voice vote, Melaye went ahead to expose the alleged financial impropriety within the power sector.
Citing Order 42 of the Senate Standing Rule, Melaye, who is renowned for his knack for controversy drew the attention of his colleagues to the $1.35 billion allegedly squandered within the power sector.
He explained that about $1 billion Eurobond raised in 2003 to fund key power sector projects was allegedly spent by officials of the Ministry of Power without appropriation and feasibility study.
According to him. “In July 2003, the Federal Government raised $1 billion from Eurobond issue, from which $350 million was given to Nigeria Bulk Electricity Trading Plc (NBET), in 2014, this money was stolen in installments”.
He added: “Sometime last year, the ministry of power came up with an idea of a project they called Afam Fast Power to build new generating power plants to add power to our grid, so far $35 million has been spent by the ministry of power on the Afam Fast Power project without appropriation or detailed feasibility study”.
The motion also sought to know how $29 million was purportedly paid to General Electric for turbines, while other firms received $6 million for same project.
Senator Melaye in his vintage hyper critical posture, urged fellow senators to carry out thorough investigation on the matter in line with the anti-corruption fight of the Federal Government.
Senator Melaye’s revelation of the festering rot in the power sector has put the ill-fated sector in the eye of the storm, with its activities now placed under strict public scrutiny.
Lending their analytical views on evolving activities in critical sectors of the Nigerian economy, such as the Nigeria National Petroleum Corporation (NNPC) contract scan, pundits are of the view that the content of Senator Melaye’s motion should not be swept under the carpet.
A Port Harcourt-based lawyer, Barr Barivule Kpobe, who commented on the alleged power sector fraud as revealed by Melaye, said Nigeria power policies over the years have been a mirage.
According to him, “the more you look, the less you see paxiom best portrays the trend of activities in the power sector”.
“The Nigeria power sector has gulped billions of tax payers’ money but various attempts to fix the sector have slipped into institutional fraud and apparent misappropriation of funds”.
A public affairs analyst and Environmental sociologist, Dr Steve Wodu also expressed disappointment over the management of the Nigeria power sector and its attendant embarrassment on the psyche of Nigerians.
Speaking with The Tide in an interview the senior lecturer in the Department of Sociology, University of Port Harcourt, said the rot in the power sector was a reflection of the “tactical institutional failure in the country”.
Wodu noted that Melaye’s revelation was not the first time that such fraud was unearthed in the power sector, noting that the Nigeria power sector has been prone to mismanagement of funds over the years.
According to the university don, the lack of sustainable power supply in the country was the fallout of such institutional mess.
Wodu also picked holes in the anti-corruption campaign of the Federal Government.
He observed that the anti-corruption drag-net is yet to catch up with some people with obvious corruption stains who still move around with impunity.
“The Federal Government should be proactive in its anti-corruption campaign and ensure that the law takes its full toll on any one found to be corrupt, this will make the people to build confidence in the anti-corruption campaign,” he said.
In his view, an expert in renewable energy as alternative source of power supply, Elder Elkanah Hanson faulted Nigeria power policies, describing it as one of the most enduring “colonial legacies” in the country.
Speaking at a public function in Port Harcourt, recently, Hanson said the fraud in the power sector was as a result of unrealistic power policies which Nigeria inherited from the colonial masters without due consideration for the peculiar power demand of the country.
Elder Hanson called for total scrapping of Nigeria’s electricity laws and a paradigm shift to renewable energy as the source of power in the country.
According to him “a renewable energy is more convenient and cheaper to generate. Nigeria has the capacity to generate enough power supply for the entire country through renewable energy, we have to follow the global trend as we cannot orbit independently of the world”.
The expert also called for a total overhaul of the power sector with experts and technocrats taking the centre stage, and decried the present practice in the sector where participation in the sector is driven by political considerations and not expertise and service delivery.
On Melaye’s revelation, he called for the prosecution of all those linked with the scandal no matter how highly placed. In his postulation, a mechanical engineer, Festus Tor, said Nigeria’s economic woe was as a result of the failure of the power sector.
While commending the Federal Government over its efforts in reforming the power sector, he called on the Senate to carry out a thorough investigation on the alleged mismanagement of fund meant for the actualisation of the Nigeria Integrated Power Project (NIPP).
Tor also urged the government to encourage local technocrats and entrepreneurs through the provision of incentives to foster a more home driven and efficient power policy.
“Nigeria is a very big economy, and the only way we can compete with the rest of the world is through sustainable power supply. Nigeria technocrats should be encouraged to play key roles in policy formulation and implementation in the power sector”.
Tor also called for the review of the Nigeria power sector with proper involvement of states in the generation, transmission, and distribution of power.
An analyst, Mr Fidelis Nwiyor, who also spoke on the issue, commended Senator Melaye and the Senate in general over their move to investigate the management of the $1 billion Eurobond by the ministry of power.
He said the recent probe of the power sector by the Senate will test the strength and commitment of the National Assembly towards checkmating the appropriation and disbursement of public fund.
However, some analysts are also skeptical over the fact that Melaye’s motion might as well be another antic of the Senate to continue their intermittent feud with the executive.

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Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

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Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended

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Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

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Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.

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Administrator Assures Community Of Improved Power Supply

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The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.

By: King Onunwor

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