Oil & Energy

Pension: FG Probes PHCN Workers’ Union

Published

13 years ago

August 20, 2012

The Federal Government, has commenced probe into alleged
fraudulent conduct of the Power Holding Company of Nigeria (PHCN) workers’
union over non-remittance of pension contributions since 2006.

The Minister of Power, Prof. Barth Nnaji, made this known in
Abuja last week after he presented report of the ministry’s budget performance
to President Goodluck Jonathan at the State House.

The Tide reports that the presentation by Nnaji was in
fulfilment of the President’s directive of ensuring transparency and effective
implementation of the 2012 budget.

Nnaji said that apart from the alleged fraud, the leadership
of the union had been engaged in dissemination of wrong information to their
members to incite the workers against government.

He observed the ploy by the union leadership to blackmail
and coerce the Federal Government into exempting them from complying with the
national pension laws.

“There are lots of distortions out there. The workers are
not getting the right information. It is unfortunate that they are not getting
the proper information.

“But I can promise you that this week, we are going to
release many information pertaining to the main issue which the union is
quarrelling about with government,’’ he said.

He dismissed the information being circulated by the
leadership of the union that the severance pay of the workers would be pegged
at N85, 000.

“Most of the people who are junior officers, some of them
with WAEC qualification, are going to go home with N8 million.

“We just do not want to publish the real payment sheet.
Somebody who is in the position of an assistant general manager can go home
with N28 million.

“The highest officer can go home with N38 million. So,
anybody who is telling them of N85, 000 has a different mission.’’

The minister said that a target of 18 months had been set to
complete the metering of electricity consumers in the country, in conjunction
with the incoming private investors.

He noted that the process was vital to the entire
privatisation of the power sector.

He assured that the improved electricity supply being
experienced across the country would be sustained even after the rainy season.

Nnaji added that the non-hydro power plants were getting
more gas to run, following the success of the emergency gas supply intervention
initiative of both Ministries of Power and that of Petroleum Resources.

Noting that new power plants, including those under the National
Independent Power Project (NIPP) scheme in Sapele, Olorunsogo and Alaoji would
be completed and inaugurated later in the year, stressing the 2013 budget would
see to the completion of studies on setting up coal-powered plants in Kogi and
Enugu states, as well as hydro-power plants in Mambilla and Zungeru.

On the 2013 plan, the minister said government wanted to
have holistic implementation of the provision of the Electricity Power Reform
Act of 2005 and then prioritise completion of ongoing projects.

“This is very critical for the Transmission Company of
Nigeria.

“We have 156 projects that are ongoing and the amount
required to complete these projects will be included in the budget.

“We will simply concentrate on prioritising them so that we
can complete the projects.’’

Nnaji said there would be increase in the funding of
Transmission Company of Nigeria, while the generation and distribution
companies would be funded through the private sector.

Oil & Energy

No Subsidy In Oil, Gas Sector — NMDPRA

Published

1 week ago

September 8, 2025

The Tide

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.

The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.

Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.

He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.

Furthermore, the Presidential – Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.

For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.

Oil & Energy

‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

Published

1 week ago

September 8, 2025

The Tide

The Managing Director, Financial Derivatives Company Limited (FDC), Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b if electricity supply would increase from the present 4.500MW to 8,000MW.

Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.

In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.

He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.

“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”

The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.

“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.

“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.

“The way out is a bailout, or it is lights out for Nigeria”, he warned.

He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.

Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.

He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”

Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.

Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.

The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.

Oil & Energy

NEITI Blames Oil, Gas Sector Theft On Mass Layoff

Published

1 week ago

September 8, 2025

The Tide

The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.

The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.

Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.

In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.

He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.

According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.

“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.

While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.

According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.

Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.

“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.