Oil & Energy

Strategising For Rivers Electricity Grid

Published

14 years ago

May 21, 2012

It is inexplicable that despite the
abundant sources and resources of energy at Nigeria’s disposal, it is still
difficult for the citizens to enjoy efficient power supply. About seven years,
after the Power Sector Reform Act 2005, we are yet to move to the point of
counting our benefits.

What baffles one most is that despite all
the efforts made by the Federal Government in this regard and the huge amount
sunk into the power sector to revamp it, there is no remarkable improvement. A
total of $16 billion has been poured for 10 years, yet the whole business is
stinking, not much has changed, sounding like a hoax every passing day.

It is the exclusive responsibility of the
federal government to give the people the opportunity to enjoy affordable and
accessible stable electricity. What the nation needs at this time are scores of
compact micro-schemes to deliver power off grid to take the hook off the inept
Power Holding Company of Nigeria (PHCN).

So, as the PHCN is warming up for
privatization before the end of this year, it is pertinent that state
governments and private investors take over the distribution and transmission
of electricity in Nigeria. There are gas, coal and water resources available
for exploit to the advantage of the power sector. Independent Power Projects
(IPP) will enable state governments deliver services that are so critical to
the welfare of the people.

It is high time we began to question the
reasoning behind retaining any monopoly in the value delivery chain which is a
negation of the liberal mantra of the present administration under President
Goodluck Jonathan. The Power Holding Company of Nigeria originally christened
Electricity Corporation of Nigeria (ECN) and later called the National
Electricity Power Authority (NEPA) has outlived its usefulness.

The corporation or organization is not
living up to its bidding both in distribution and transmission, so it is good
enough for privatisation. Current realities show that transmission suffers the auctioneers hammer.
There is a drastic and constant drop in the power supply ocean. Obviously, not
much has changed in the power scene, the chain remains as unreliable as ever.

The Rivers State Government during a press
conference in Port Harcourt recently called on the Federal Government to
dispose of its distribution aspect to the private sector operators so that they
can run them as business, bring in efficiency and make power available to our
people.

The Commissioner for Power, Hon. Augustine
Wokocha who addressed the conference said: “We are prepared, as a government to
invest into distribution despite the
fact that it is not part of our responsibility. People are tired of hearing
megawatts, megawatts, they want to see just one watt. The issue of power
distribution is the exclusive property of the Federal Government via the PHCN”.

According to him, the government’s
objective is to provide regular power for the people. “Our driving force is not
to make profit but for our people to make profit for themselves and the
improvement of the economy of the state to be independent and self-sustaining”.
The government, as he puts it, is acting as a catalyst to the industrial and
economic development of the state, noting, however, that it will partner with a
private sector outfit that will buy the generation aspect, of which discussion
is on-going.

The commissioner disclosed that the state
government is strategising itself towards creating own grid in the state such
that “all our generation will be on that grid and the power supply not from
one, generation point. However, he added
we are conscious of the fact that at the beginning, the demand will jump up, so
we are determined to establish a reasonable capacity and to ensure that other
Nigerians can enjoy what we are doing”.

He explained that for now, the Rivers State
Government has a sharing arrangement with the PHCN to the ratio of 70:30,
pointing out that the governor in 2008 had said that about N22 billion arose
from that agreement for which PHCN has not paid anything and it is running into
N100 billion by now. “The amount is based on what we have generated from the
70:30 formula and given to PHCN”. The government has 70 while PHCN takes 30.

On the way forward, Wokocha explained that
the state is not going to depend on the sharing any more as a modality for
power purchase agreement is being worked out whereby PHCN will buy what the
government is generating and pay for it.

Many states including Rivers State are
anxiously waiting for the whistle to blast for them to invest their resources
in power generation. But it is worthy of note that the situation where states
would invest their hard-earned money in power generation only to have the
output wheeled into the national grid by an arrogant Federal Government is not
encouraging.

Federal Government should allow states move
into the venture of power distribution and transmission if we are to have a
durable framework for captive power generation. From its four gas turbines, the
Rivers State government under the IPP has 180 megawatts of electricity and
hopes to increase if given the free hand.

Today, the Lagos State Government has
delivered the Akute Power Project – a 12 MW Plant dedicated to the state water
corporation with another IPP to deliver 15 MW in two phases to serve the
Central Lagos Business District on course, and many more which are off-grid
underway.

There are reports that limited gas supply
is one of the major challenges facing the eight gas turbines in the country –
NIPP Power Plant, Egbin Power Plant, Olorunsogo Plant, Alaoji Power Plant,
Ihovbor Power Plant, Calabar Power Plant, Gbarain Power Plant and Omotosho Power Plant. The 304
MGW installed capacity eight gas turbines power plants in the country built and
inaugurated about five years ago have practically packed up and six of them
broken down.

The issue of gas needs in this country is
one that the Federal Government has not given adequate thought. Until this matter is sorted out and
bound to impact the power sector, the problem of power shortage and outage
would continue to rear its ugly head. The issue of gas supply slow down the
operations of most of the turbines in the country.

In 2010, government’s efforts at improving
power supply got a boost with the commencement of gas supply to the PHCN
facilities. Pan Ocean Oil Corporation (POOC), operator of the NNPC Pan Ocean
Joint Venture commenced supply of gas to the Nigerian Gas Company (NGC) to be
conveyed eventually to PHCN power generating plants. It supplied 50 million
standard cubic feet per day (mmscf/d) of gas to the NGC from its Ovade-Osharefe
gas processing plant.

The flares out directive of the Federal
Government must be adhered to by oil and gas companies. With the gas processing
plants and pipelines which transverse the country, one would think that the
challenge of gas supply is no issue. Oando has so far expended more than N18
billion to develop a 128KM cross-country gas pipeline traversing Akwa Ibom and
Cross River States and has an installed capacity of 100 mmscfd of gas.

The move by the Federal Government
currently to facilitate the supply of gas to companies should be intensified
and implemented to the letter. A team is on a weeklong tour of gas
installations for this purpose. This will go a long way to actualise the hope
that 75 per cent of electricity can come out from natural gas. Nigeria has past
the stage of Kainji and shortage of gas to generate electricity. We have more
than enough gas resources for power generation, so the Federal Government must
be alive to its responsibility by ensuring that sufficient gas is supplied to
power our turbines at all levels.

If the Federal Government means that its
plans for improved power supply must
come to fruition, it must afford to compromise handing over the power busiess
to investors and be serious about the Power Agenda. It should ensure that
whoever gets the power generation, transmission and distribution assets must be
an investor who has the will-power to improve on it and not the type that would further resell to
another investor thereafter, thereby compounding the power problem being
suffered by the citizens. The new tariff billed to commence from June 1 should
be put on hold until the power supply improves.

Federal Government investment in power has
not been able to translate into stable power because of lack of accountability
but if the government had done the right thing to design a mechanism to restore
confidence in the power sector, a good result would have been recorded before
now. Statistics show that the power generation target set for 2011 was 5,000
Megawatts, achievement was 4420MW while target for 2012 was 6,000MW but has
crashed to 3200MW resulting in the sacking of some top officials of the PHCN
recently. The uncooperative attitude of some staff of PHCN reveals that there
are major threats to the actualisation of the new power reforms.

To ensure sufficient gas supply for our
power, not just international oil companies should participate in the gas
project of this country but also indigenous firms should be given priority
attention or consideration. Gas to power distribution is a boost the country
badly needs and there must be a corrupt-free national strategy for managing the
gas revenues because the worry about monies generated from the oil ad gas
sector in this country is the ‘course’ of embezzlement and misappropriation. We
must try to avoid the mistakes of the past. Nigeria is a democracy everybody is
watching, so it is expected that there is going to be improvement in the power
sector with the Power Road Map of the present administration. President
Jonathan should exert the political will to actualize the programme.

Our power sector needs a lot of gas, so
there should be concerted efforts to develop our gas resources as never done by
past administrations. Nigeria has large gas resources and so should subsidise
the product for easy reach and domestic consumption. Nigeria is adjudged the
world’s seventh largest producer of high grade gas with zero per cent surplus
and rich in natural gas liquids. It is a universal knowledge that no country
attains the status of industrialization without the impacting influence of
power supply.

Shedie Okpara

Oil & Energy

Abia Secures $145m Investment Commitment To Establish Solar Manufacturing Plant

Published

2 days ago

July 20, 2026

The Tide

Abia State Governor Alex Otti has welcomed a proposed $145 million investment to establish a solar manufacturing plant in Isiala Ngwa South Local Government Area, describing it as a major boost to the state’s industrial and renewable energy ambitions.

The development was disclosed in a statement issued last week by the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, after Otti received the investors, led by their Team Leader, Dr. Oko Jaja, at the Government House in Umuahia.

During the meeting held on July 16, 2026, Otti said he was encouraged that the proposed project had reached the Final Investment Decision (FID) stage, with the investors committing up to $145 million to establish the solar manufacturing facility in the state.

What they are saying

Governor Otti welcomed the investors’ commitment, saying the project had progressed to the stage where they were ready to invest up to $145 million in Abia.

“I’m glad that at least you have reached the final investment decision where you are investing up to $145 million.”, he said.

He also assured the investors of the state’s continued support, noting that the government had already provided the land required for the project and remained willing to address any additional requirements needed to facilitate the investment.

“We had to do everything that was required to make the land available. And we would like to assure you that if there is any other thing that you need for this investment, do not hesitate to let us know”, the Governor said.

Speaking on behalf of the investors, Dr. Oko Jaja said the project, being developed with Chinese partners, had advanced significantly and that the first tranche of funding is expected to be released by September 2026, paving the way for implementation.

Also speaking, the Chief Executive Officer of MD NWAKANMA NIGERIA Limited, Dennis Madu Nwakamma, said construction of the plant is expected to commence by the end of September under a public-private partnership with the Abia State Government. He added that the project will manufacture solar panels and related products while creating jobs and providing technical training for young people in the state.

The proposed investment adds to Abia’s growing push into the renewable energy sector. The state is among the few in Nigeria with a regulated electricity market and is home to Geometric Power, whose integrated power system supplies electricity to Aba and surrounding communities.

The development also follows Governor Otti’s recent commissioning of an upgraded 5MVA power station at Abia State University, which doubled the facility’s capacity from 2.5MVA to improve electricity supply within the institution.

Earlier, in February 2024, he commissioned the 188MW Geometric Power Plant, a landmark project aimed at expanding power generation and improving electricity access in the state.

The proposed solar manufacturing facility is the latest in a series of investment projects announced for Abia as the state seeks to attract private capital into manufacturing and infrastructure.

In March, Governor Otti commissioned a $35 million industrial facility in Aba, part of a planned $100 million investment expected to deepen the city’s manufacturing base and attract additional private sector activity.

The state government has also completed the acquisition of Afro Beverages from the Asset Management Corporation of Nigeria (AMCON) after paying N500 million to facilitate the revival of the company.

Separately, the Federal Government and the African Development Bank have urged the Abia State Government to resolve administrative delays affecting the commencement of the $263.8 million Abia State Integrated Infrastructural Development (ABSIID) project, which is expected to strengthen infrastructure and support economic growth across the state.

Oil & Energy

FG Urges Against Operators’ Actions That Could Distabilise Market

Published

2 days ago

July 20, 2026

The Tide

The Minister of Power, Chief Joseph Tegbe, has called on operators in the Nigerian Electricity Supply Industry (NESI) to avoid actions that could affect the decentralised electricity market.

The minister made the call at the workshop on Legal, Policy and Regulatory Harmonisation between federal and state institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI), in Abuja.

Tegbe said the Federal Government retains an important leadership role, while state governments now have expanded responsibilities; the Nigerian Electricity Regulatory Commission (NERC)continues to regulate areas within its jurisdiction; and state regulators are emerging to supervise their respective markets.

He further stated that transmission remains a national asset; distribution companies continue to serve millions of customers; generation companies continue to supply energy into the grid; private investors provide capital; development partners provide technical support; while consumers remain at the heart of every decision.

Nothing that none of these institutions exists in isolation, he said: “Our success is interconnected. This is why collaboration must become the defining principle of our decentralised electricity market. We must ensure collaboration rather than competition between institutions. We must build alignment instead of regulatory conflict. We must practice mutual respect instead of jurisdictional rivalry.”

He said the Electricity Act did not establish parallel electricity industries, but complementary electricity markets, operating within one national framework.

“Our objective must therefore be regulatory coherence. Investors should not encounter conflicting rules. Developers should not navigate contradictory approval processes. Consumers should not become casualties of institutional uncertainty. Market participants should enjoy clarity, predictability and confidence wherever they choose to invest,” he stated.

Oil & Energy

Fuel Imports Surged By 207% In June — NMDPRA report

Published

2 days ago

July 20, 2026

The Tide

Nigeria’s petrol importation surged by 207 per cent in June 2026, even as domestic Premium Motor Spirit supply fell by 22 per cent, according to the latest data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The development marked a sharp reversal from the pattern recorded at the beginning of the year when domestic refining was supplying the bulk of the country’s petrol requirements.

The NMDPRA’s June 2026 Fact Sheet, obtained by our correspondent on Saturday, showed that average daily PMS imports rose from 5.9 million litres in May to 18.1 million litres in June.

The 12.2 million-litre daily increase represented a 206.8 per cent month-on-month rise.

In contrast, domestic PMS receipts fell from 41.5 million litres per day in May to 32.5 million litres per day in June, representing a decline of 9 million litres or 21.7 per cent.

Despite the sharp drop in domestic supply, total PMS receipts rose from 47.4 million litres per day in May to 50.6 million litres per day in June. This represented an increase of 3.2 million litres per day or 6.8 per cent.

The report read, “Total PMS receipts rose by seven per cent from 47.4 million litres per day in May to 50.6 million litres in June, driven by a 207 per cent surge in imports to 18.1 million litres, even as domestic supply fell by 22 per cent to 32.5 million litres per day.

“Domestic daily receipts include DPRP gantry and all coastal evacuation receipts. Consumption data is based on volumes trucked out from all facilities into the domestic market.”

The figures suggest that the increase in imports more than compensated for the decline in domestic supply during the month.

The development is significant because Nigeria entered 2026 with a much stronger domestic supply position. In January, domestic PMS supply was reported at 40.1 million litres per day, accounting for about 61.8 per cent of the country’s petrol supply, while imports averaged 24.8 million litres per day.

However, imports fell sharply to 3.0 million litres per day in February before rising to 5.9 million litres per day in March. The country’s dependence on imports then remained relatively low through the following months before the sharp increase recorded in June.

Compared with January, June’s domestic PMS receipts of 32.5 million litres per day were 7.6 million litres, or 19 per cent, lower than the 40.1 million litres recorded at the beginning of the year.

Conversely, June’s import volume of 18.1 million litres per day was 6.7 million litres, or 27 per cent, below January’s 24.8 million litres per day.

However, the composition of supply changed considerably. While domestic supply accounted for the larger share of the market in January, the June figures showed a much greater reliance on imports to supplement local production.

The June data also showed that the country’s crude oil receipts by domestic refineries improved during the month.

Crude oil receipt by domestic refineries rose from 0.578 million barrels per day in 0.632 million barrelsMay to per day in June, an increase of 0.054 million barrels per day, or 9.3 per cent.

The NMDPRA rounded the increase to 10 per cent in its fact sheet.

The rise in crude receipts occurred at a time when domestic PMS supply decreased, indicating that higher crude deliveries alone did not immediately translate into higher petrol receipts in the domestic market.

The figures could also reflect changes in refinery operations, product yields, maintenance activities, evacuation arrangements and the balance between domestic production and imported products.

The June fact sheet further showed that average daily PMS consumption increased marginally from 46.3 million litres in May to 47.4 million litres in June.

The 1.1 million-litre increase represented a 2.4 per cent rise.

The increase in consumption, however, was far smaller than the 207 per cent jump in petrol imports.

As a result, the country’s petrol stock position improved during the month. PMS stock sufficiency rose from 16.2 days in May to 19.7 days in June.

This represented an increase of 3.5 days, or 21.6 per cent.

The improvement means that the country entered July with almost 20 days of petrol stock sufficiency, despite the increased reliance on imports.

The increase in petrol stocks is significant against the background of the supply disruptions and price volatility that have characterised the downstream petroleum market since the removal of petrol subsidy.

At the beginning of 2026, the NMDPRA reported that PMS stock sufficiency had risen to 33 days in January, compared with 29.2 days in December 2025. However, the stock position subsequently declined before recovering to 19.7 days in June.

The June data also showed a dramatic increase in imported Liquefied Petroleum Gas, popularly known as cooking gas.

Total LPG receipts rose from 4.1 kilotonnes per day in May to 5.1KT per day in June, representing a 24.4 per cent increase.

Domestic LPG receipts, however, fell from 4.0KT per day to 3.6KT per day, a decline of 0.4KT per day or 10 per cent.

Imports rose from 0.1KT per day in May to 1.5KT per day in June.

That represented an increase of 1.4KT per day, or 1,400 per cent.

The sharp increase in LPG imports helped push total receipts higher, even as domestic supply declined.

The figures indicate that LPG supply exceeded consumption during the month, potentially supporting inventory replenishment.

The supply of Automotive Gas Oil, commonly known as diesel, declined by 14 per cent in June.

AGO receipts fell from 18.8 million litres per day in May to 16.2 million litres per day in June, a decline of 2.6 million litres or 13.8 per cent.

The decline was entirely recorded in domestic receipts as the country recorded no AGO imports in either May or June.

The NMDPRA data showed that diesel consumption remained unchanged at 16 million litres per day in both months.

Consequently, June’s total AGO receipts of 16.2 million litres per day were only marginally above consumption.

Despite the lower supply, AGO stock sufficiency improved from 31 days in May to 37.1 days in June.

That represented an increase of 6.1 days or 19.7 per cent.

The rise in stock sufficiency, despite lower daily receipts, suggests that existing inventories continued to provide a substantial buffer for the diesel market.

The supply of Aviation Turbine Kerosene also fell during the month.

ATK receipts declined from 3.6 million litres per day in May to 2.5 million litres per day in June.

The 1.1 million-litre decline represented a fall of 30.6 per cent.

ATK consumption also fell from 3.1 million litres per day to 2.9 million litres per day, representing a 6.5 per cent decline.

The drop in consumption was, however, significantly smaller than the decline in receipts.

Domestic gas supply rose marginally during the period under review.

The NMDPRA reported that domestic gas supply increased from 4.984 billion standard cubic feet per day in May to 5.116Bscf/d in June.

The increase of 0.132Bscf/d represented a 2.65 per cent rise.

The authority said its domestic gas supply figure includes volumes supplied to the Nigeria LNG Limited.

The modest improvement came as the Federal Government and industry stakeholders continued to focus on increasing gas availability for power generation, industrial production and other domestic uses.

The January-to-June 2026 trend points to a petroleum market that has remained heavily influenced by the changing balance between domestic refining and imports.

Nigeria began the year with domestic PMS supply accounting for the majority of total supply. January’s 40.1 million litres per day from domestic sources compared with 24.8 million litres per day from imports.

By June, however, domestic supply had fallen to 32.5 million litres per day, while imports stood at 18.1 million litres per day.

Although the absolute volume of imports in June remained lower than January’s figure, the sharp increase from the May level showed how quickly the market could turn to imported products when domestic supply weakened.

The trend also highlights the continuing importance of domestic refining capacity to Nigeria’s fuel security.

In May, the Dangote Petroleum Refinery supplied an average of 41.5 million litres of petrol daily, according to reports based on the NMDPRA’s monthly data. The figure was significantly higher than the 40.1 million litres per day recorded in January. However, June’s domestic PMS receipt fell to 32.5 million litres per day.

The development comes amid the gradual transformation of Nigeria’s downstream petroleum sector, with the Dangote refinery increasingly supplying the domestic market while imports continue to act as a balancing source.

The figures also demonstrate that increased refinery crude supply does not automatically guarantee a corresponding increase in domestic petrol receipts. In June, crude receipts rose by about 9.3 per cent, while domestic PMS receipts fell by 21.7 per cent.

For consumers, the most immediate implication is that the country’s petrol supply system remains dependent on a combination of local refining and imports.

The June data therefore presents a mixed picture: domestic refining received more crude, total petrol supply increased and stock levels improved, but local PMS receipts fell sharply while imports surged.

In the wider downstream sector, diesel supply remained entirely domestic, LPG imports increased dramatically to supplement weaker local receipts, aviation fuel supply declined and gas availability recorded modest growth.

The data underscores the continuing transition of Nigeria’s petroleum market from an import-dependent system to a mixed supply structure in which domestic refineries are expected to provide the bulk of demand while imports fill supply gaps.