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Need For Sustainable Power Supply

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The problem of poor power supply in Nigeria has been terribly lamentable  and the situation seems to have defied  all efforts by previous governments since in the 80s. one is tempted   to now  ask what  the present  administration under President Goodluck Jonathan can do to salvage  the country from the ugly trend.

From on-set, the Federal Governemnt has been matching words with action on how better to improve the power sector by ensuring that the mega watt rose to 150 from less than 50, even within the short period of this present dispensation. This was after the Chief executive officer of Olornrisogo Power Station was redeployed to the headquarters for efficiency.

The redeployment followed the warning by the Minister of Power, Professor Barth Nnaji that all managers of the different sections of the utility company –Power Holding Company of Nigeria (PHCN), from generation, transmission to distribution should either sit up or be prepared to be booted out. Nnaji first had a meeting with the Chief Executive officers of the different sections of the utility’s value chain when he stressed the need for them to show commitment to duty to give Nigerians the long expected power supply.

Although he agreed that the sector had suffered grave or gross neglect in a couple of decades ago, particularly under the military    administration, he was optimistic that if the capacity Nigeria currently has fully utilized, there would be considerable improvement in power delivery. The question now is, who is the cause of Nigeria’s predicament in the power sector. Is it the government or the authorities of the utility company?

With the efforts so far made by the government, one would think that the utility firm, PHCN is to be held responsible for the incessant epileptic power supply in the country. The helmsmen of the company just as the former  Nigeria Electricity Power Authority (NEPA), feel that their duties and at coming to defend  their budgets and collecting electric bills and  share same among themselves  and  sit back and seek frivolous reasons to justify spending such funds without practical evidence on ground.

Unlike in the past when all the funds that come to the different sections of PHCN pass through the headquarters, the CEOs of the different units currently go to government to defend their annual budgets and spend the money according to their discretions thereby and up at not utilizing the money to provide constant electricity for the people. Some utilize the money in providing poor service leaving undone what the money is meant for.

However, the Chief executive officers saw that it was no business as usual when the minister clamped down on four of their colleagues and that the ministry didn’t come to the combat in child’s gloves. Although, ever since that was done, the situation changed in terms of power supply but a lot needs to be done.  The minister needs to tour all the power facilities across the country including the South-South and Port Harcourt in particular to see for himself or have a practical feel of what the people of the area are suffering. All is not well with the PHCN formations across the country and for the Niger  Delta region that produces the bulk of the nation’s wealth, special attention should be paid to give the a sense of belonging and to compensate  them for the  long neglect.

The minister should extend his “Capacity Recovery” to Rivers State because from the look of things lack of commitment and human errors account for considerable power failure in the state. There is need to ensure sustainable electricity supply in Rivers State considering its population and economic contribution coupled with the fact that sustainable and successful business is bi-product of constant electricity supply.

An auto manufacturing company could not be built in Nnewi, Anambra State because of poor power supply in the country. According to the Minister of Power, his efforts as a key player in the do were fruitless as the planned power supply.

In a paper he presented during the 20th anniversary of Anambra State Nnaji said “it was the fledging auto industry in Nnewi which inspired me in the late 1990s to take steps to establish in Nigeria a state-of-the-art company to manufacture auto parts including engines, when I was the ALCOA foundation Professor of Manufacturing Engineering at the University of Pitts burgh”.

The only way to attract investment to Nigeria is for the government to ensure steady and uninterrupted electricity at all levels. The country is blessed with all kinds of natural resources which can attract foreign investors but because of the non-availability of uninterrupted electricity, investors are scared.

Most investors after carrying out feasibility study of the kind of investment they intend to bring into the country will end up being deterred because of the huge, cost of acquiring and fueling a generating plant that would be able to power their investment. Reports have shown that everyday industries and other manufacturing concerns are collspsing and unemployment rate rising as investors are not willing to come and do business in the country because of lack of sustainable power supply.

Sadly, an average Nigerian home spends more than the N18,000 minimum wage  which is yet to be paid, a month to power its generator  to have power. Much of the economic undevelopment in the country today is because of lack of power, at trend all patriotic Nigerians must not allow to continue. This power has risen to a point that the President, Dr. Goodluck Jonathan and all the state governors should make steady power supply their one-point agenda and do everything humanly possible to ensure that this is achieved before the end of 2012.

Obviously, the government at federal and state levels should partner with other stakeholders or establishments in ensuring that the power problem becomes a thing of the past because until  that is done, no matter how much we spend  on jingles and advertisements in the local and foreign media to woo investors to come and invest here, it will continue to be a mirage.

Ghana and other industrialized countries did not advertise in international media before virtually multinational and local companies were attracted to invest there. The issue of power supply is however, over-flogged because it is the main key to industrialization and  self-reliance in any country and any country without steady electricity remains impoverished with its people.

It has become necessary to suggest that Nigerian governments should send delegations to China and other countries and engage energy companies that will give the country steady power supply so that we can become economically viable, as that is the only way to generate to generate employment for our teeming youths.

In pursuance of its regulatory functions, the Nigerian Electricity Regulatory Commission (NERC) in collaboration with the Standards Organization of Nigeria (SON) and the National Environmental Standards and Regulations Enforcement Agency (NESREA) has approved standards and guidelines for the issuance of clearance certificates for importers of generating sets and broken-down parts. This is to ensure that all generating sets to be imported into the country meet all the approved standards and quality and to stop the indiscriminate importation of generating sets into the country.

There has been little or no difference in the state of power supply in the country since the power reform was initiated by former president Olusegun Obasanjo’s government in 2005. This is why the Nigerian Electricity Regulatory Commission (NERC) has embarked on a process of consulting with stakeholders over the need or otherwise to increase electricity tarriff in the country. Chief executive officer of NERC, Dr Sam Amadi, at a workshop on major Review of the Multi-year Tarriff Order (MYTO) urged the shareholders to be objective over the review process, noting that “public power supply in the country is still a standby in most homes and offices, as it was in 2005 when the reform in the power sector began.”

If we must achieve the goal of giving every citizen access to stable, reliable and fairly priced electric power, a reliable and sustainable framework must be put in place to ensure the robust interaction of market forces with social policy to attain equilibrium. This we can do by establishing a pricing regime that will sustain massive private sector investment and guarantee a positive return on investment, while also being fair to underprivileged consumers.  The power industry is characterized by lack of a transparent price determination process and abysmally low tariffs, all based on the political whims and considerations of the PHCN, as opposed to the economic principle of full cost recovery.

Shedie Okpara

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Rivers PETROAN Elects 12-Member Executive 

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The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.
The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.
The newly elected executive include, Pastor Ezekiel I. Eletuo  as  Chairman,  Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary,  Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.
Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.
Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.
Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.
He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.
Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.
The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.
He further described their efforts as instrumental in strengthening the union’s standing in the state.
In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.
He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.
Eletuo called on all members to support the new executive in its efforts to elevate the association.
Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.
Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.
He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).
Stakeholders present at the event also delivered their goodwill messages.
Highlights of the event included  administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman.    .
By: Amadi Akujobi
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FG Intensifies Efforts To Reposition Tourism Sector 

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The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.
This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred  fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.
The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .
Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.
Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.
According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.
She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.
Musawa explained  that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.
“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.
In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.
Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.
“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.
By:  Nkpemenyie Mcdominic, Lagos
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Big Oil Reconsiders Previously Unattractive Destinations

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The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.
The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.
Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.
Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal
The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.
“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.
It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.
Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.
However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”
Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.
By Irina Slav for Oilprice.com
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