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Harnessing Nigeria’s Hydro-Electricity Sources

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On many occasions,
economists have stressed that the energy sector is cardinal to Nigeria’s efforts to actualise its vision of becoming one of the top 20 economies of the world by 2020.
They note that the erratic power supply across the country has stifled the economic growth of the country and made the citizens’ livelihoods somewhat difficult. They also raise concerns that Nigeria currently generates approximately 4,500 megawatts of electricity, while it needs about 200,000 megawatts to efficiently meet the energy needs of its population.
The experts, however, commend the Federal Government’s efforts to construct and inaugurate nine dams in line with its Transformation Agenda, underscoring the need for the optimal utilisation of the hydroelectricity component of the dams.
Although tangible efforts have been made to boost the country’s energy production capacity through alternatives such as solar power, biomass, biogas reactors, wind turbines and coal, the experts stress the need to place considerable emphasis on hydroelectricity generation as well.
Water experts particularly argue that the 2014 World Water Day, which will be celebrated on March 22 with the theme: “Water and Energy’’, should be viewed as a platform for renewing commitment to utilising dams for improved power generation.
The experts point at Inyishi and Amauzari Dams in Imo, Ibiono Ibom Dam in Akwa Ibom, Mgbowo Dam in Enugu State, Owena Dam in Ondo State, Galma Dam in Kaduna State, Sulma, Dutsi and Mashi dams in Katsina State as some of the dams that could be used to generate power.
They argue that while all the dams could be used for water supply and irrigation, two of them — Mashi and Galma dams — have the capacity to generate six megawatts of electricity.
The immediate past Coordinating Director, Nigerian Integrated Water Resources Management Commission, Mr Razaq Jimoh, said that most of the dams with irrigation, water supply and hydropower generation components are underutilised due to paucity of funds.
Jimoh stressed that efforts should be made to revive the varying components of the dams to boost water supply and electricity generation, as according to him. We have examples of some large dams that had been completed for over 20 years and their level of utilisation, in some cases, is not more than 30 per cent.
“If you have a dam that is for four purposes and you are only enjoying one purpose, such a dam has not been maximally utilised.
“If you are enjoying the four benefits for which the dam was designed, you will derive more benefits from the dam for the community,’’ he said.
Jimoh noted that Kainji Dam, one of the country’s major hydropower generating dams, was designed to generate 960 megawatts, adding, however, that it could generate 760 megawatts because only eight of its 12 turbines had been installed.
In an attempt to reinvigorate the power sector, the Federal Government in 2011, selected 20 medium and large dams for hydropower generation and produced a roadmap for the development of the critical infrastructure in the water and power sectors.
In the same vein, the Federal Ministry of Water Resources said that it would achieve a 95-per-cent development of its hydropower potential capable of producing up to 10,000 megawatts of electricity by 2015.
These efforts notwithstanding, stakeholders insist that paucity of funds, inadequate technical staff and synergy among the federal and state governments are some of the major constraints to efficient electricity generation in the country.
However, the Minister of Water Resources, Mrs Sarah Ochekpe, said that “the Federal Government is indeed conscious of the fact that globally, there is a relationship between the number of dams and hydropower generation for the socio-economic benefit.
“As part of measures to improve electricity supply, the installation of 30 megawatts electro-mechanical turbines for the Gurara Dam has been completed”, he remarked.
“Besides, the Bureau of Public Procurement has given a no-objection right to the Federal Ministry of Power to harness the 40-megawatt hydropower component of Kashimbilla Dam in Taraba. “It’s a multi-purpose dam; we have the dam, the airstrip, irrigation, potable water and electricity; this dam will be completed this year,’’ Ochekpe added.
Moreover, Mr Yusuf Ismail, the Deputy Project Site Engineer, Bokolori Dam in Sokoto State, said that the dam had the potential to serve the residents of Sokoto State much better if its hydropower component was developed and duly utilised.
He called on Federal Government to harness the hydropower potential of the dam, recalling that the dam was constructed in 1978 and equipped with three megawatts hydropower and seven megawatts diesel engines for power generation.
To boost the Federal Government’s efforts to improve power generation, Gov. Rabi’u Kwankwaso of Kano State pledged in 2013 to finance the installation of the hydropower component of Tiga and Challawa dams at the cost N14.2 billion to produce 35 megawatts of electricity for the state.
He said that although the venture ought to have been captured in the Federal Government’s budget, the delay in harnessing the hydropower potential of the dams for the benefit of the state prompted his administration’s intervention.
“The dams had been completed but the hydropower component has not been utilised; it has been difficult to get both the Federal Government and development partners to install turbines for the generation of electricity.
“For this reason, the state government has taken the bull by the horns and will now take up the project 100 per cent and finance it,’’ he said at a recent forum.
Expressing reservations about the condition of dams across the country, Sen. Heineken Lokpobiri, the Chairman of the Senate Committee on Water, said that the components of many dams, particularly those in the northern parts of the country, had not been utilised.
“It is one thing  to construct the dams, it is another thing to see how the state and local government would be able to tap into them and utilise them optimally.
“The dams are completed, Federal Government has done its own but the state governments need to come in and partner with it so as to ensure the benefits are taken to the door steps of the end users,’’ he said at a recent meeting of the committee.
Ukuedojor is a staff of NAN.

 
Magdalene Ukuedojor

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TotalEnergies, Conoil Sign Deal To Boost Oil Production

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TotalEnergies has signed agreements with Conoil Producing Limited under which to acquire from Conoil a 50 per cent interest in Oil Processing Licence (OPL) 257, a deep-water offshore oil block in Nigeria.
The deal entails Conoil also acquiring a 40 per cent participating interest held by TotalEnergies in Oil Minining Lease (OML) 136, both located offshore Nigeria.
Upon completion of this transaction, TotalEnergies’ interest in OPL257 would be increased from 40 per cent to 90 per cent, while Conoil will retain a 10% interest in this block.
Covering an area of around 370 square kilometres, OPL 257 is located 150 kilometers offshore from the coast of Nigeria. “This block is adjacent to PPL 261, where TotalEnergies (24%) and its partners discovered in 2005 the Egina South field, which extends into OPL257.
Senior Vice-President Africa, Exploration & Production at TotalEnergies, Mike Sangster, said “An appraisal well of Egina South is planned to be drilled in 2026 on OPL257 side, and the field is expected to be developed as a tie-back to the Egina FPSO, located approximately 30 km away.
“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO.
“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria”.
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“COP30: FG, Brazil Partner On Carbon Emissions Reduction

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The Federal Government and Brazil have deepened collaboration on climate action, focusing on sustainable agriculture, renewable energy, and the reduction of black carbon emissions.
The partnership is anchored in South-South cooperation through the Brazil-Nigeria Strategic Dialogue Mechanism, which facilitates the exchange of ideas, technology, and policy alignment within the global climate framework, particularly the Paris Agreement.
The Executive Secretary, Amazon Interstates Consortium, Marcello Brito, made the disclosure during an interview with newsmen, in Abuja, on the sidelines of the 2025 COP30 United Nations Climate Change Conference, held in Belem, Brazil.
Brito emphasized that both nations are committed to global efforts aimed at curbing black carbon emissions, a critical component of climate mitigation strategies.
“Nigeria and Brazil are collaborating on climate change remedies primarily through the Green Imperative Project (GIP) for sustainable agriculture, and by working together on renewable energy transition and climate finance mobilisation,” Brito said.
“These efforts are part of a broader strategic partnership aimed at fostering sustainable development and inclusive growth between the two Global South nations,” Brito added.
TheTide gathered that President Bola Ahmed Tinubu announced an ambitious plan to mobilize up to $3 billion annually in climate finance, through its National Carbon Market Framework and Climate Change Fund, positioning itself as a leader in nature-positive investment across the Global South.
Represented by the Vice President, Senator Kashim Shettima, Tinubu made the announcement during a high-level thematic session of the conference titled ‘Climate and Nature: Forests and Oceans’
Tinubu stressed that Nigeria’s climate strategy is rooted in restoring balance between nature, development, and economic resilience.
Hosted in the heart of the Amazon, on November 10—21, the 30th COP30 conference brought together the international community to discuss key climate issues, focusing on implementing the Paris Agreement, reviewing nationally determined contributions (NDCs), and advancing goals for energy transition, climate finance, forest conservation, and adaptation.
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DisCo Debts, Major Barrier To New Grid Projects In Nigeria ……. Stakeholders 

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Energy industry leaders and lenders have raised concerns that the high-risk legacy debts of Distribution Companies (DisCos) and unclear regulatory frameworks are significant barriers to the financing and development of new grid-connected power projects in Nigeria.
The consensus among financiers and power sector executives is that addressing legacy DisCo debt, improving contractual transparency, and streamlining regulatory frameworks are critical to unlocking private investment in Nigeria’s power infrastructure.
Speaking in the context of new grid-connected power plants, during panel sessions at the just concluded Lagos Chamber of Commerce and Industry (LCCI) Power Conference, Senior Vice President at Stanbic IBTC Infrastructure Fund, Jumoke Ayo-Famisa, explained the cautious approach lenders take when evaluating embedded or grid-scale power projects.
Ayo-Famisa who emphasized the critical importance of clarity around off-takers and contract structures said “If someone approaches us today with an embedded power project, the first question is always: Who is the off-taker? Who are you signing the contract with?” . “In Lagos State, for example, there is Eko Electricity and Excel Distribution Company Limited. Knowing this is important,” she said.
She highlighted the nuances in contract types, whether the developer is responsible just for generation or for the full chain, including distribution and collection.
“Collection is very important because you would be wondering, ‘is the cash going to be commingled with whatever is happening at the major DISCO level, is it ring-fenced, what is the cash flow waterfall,” she stated.
Ayo-Famisa pointed out that the major stumbling block remains the “high leverage in the books of the legacy DisCos.” Incoming project financiers want to be confident that their cash flows won’t be exposed to the financial risks of these indebted entities. This makes clarity on contractual relationships and cash flow mechanisms a top priority.
Noting that tariff clarity also remains a challenge, Ayo-Famisa said “Some states have come out to clearly say that there is no subsidy; some are saying they are exploring solutions for the lower income segments. So, the clarity would be on who is responsible for the tariff, is this sponsored?, Can they change tariffs?, In terms of if their cost rises, they can pass it on, or they have to wait for the regulator.
“Unlike, what you find in the willing seller-willing buyer, where they negotiate and agree on their prices. Now they are going into grid, there is Band A, Band B, if my power goes into, say, Ikeja Electric, or I have a contract with them, “am I commingled with whatever is happening across their multiple bands?”
Also speaking, Group Managing Director and CEO of West Power & Gas Limited, Wola Joseph Condotti, stressed the dual-edged nature of decentralization in the power sector.
“Of course, decentralization brings us closer to the people as the jurisdiction is now clear. You also know that your tariff would be reflective of the type of people living in that environment. You cannot take the Lagos tariff to Zamfara, and this is what has been happening before now in the power sector. So, decentralization brings about a more customized solution to issues you find on the ground.
“Some of the issues I see are those that bother on capacity. It was a centrally run system that had 11 DISCOs. Of the 11 DISCOs, I think there are 3 or 4 of us today that are surviving or alive, if I may put it that way. If you go to electricity generation companies, they are doing much better,” she said.
Condotti highlighted regulatory overlaps as another complication, especially when power generation or distribution crosses state lines.
She said, “Investors would definitely have a problem. Say if you have a plant in Ogun State supplying power to another state, say Lagos State; you are automatically regulated by NERC. But the truth is that the state regulator of Ogun State and Lagos State wants you to comply with certain regulatory standards.”
With the growing demand for reliable electricity and an urgent need for infrastructure expansion, the ability to navigate these complex financial and regulatory landscapes would determine the pace at which new grid-connected power projects can be developed.
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