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Power: Towards Actualising FG’s 6,000mw Target

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Recently, the Federal
Government stirred the hope of Nigerians when it announced a new target of 6,000 megawatts  of electricity generation in the country.
At the 15th Herbert Macaulay Memorial Lecture, organized by the Faculty of Engineering, University of Nigeria, Nsukka, Penultimate Saturday, the Minister of Power, Prof Chinedu Nebo, promised that the country would hit 6,000 megawatts in electricity generation before December this year.
The simplest interpretation of the minister’s pronouncement is that before the next six months, electricity generation which for the past four months has been struggling to stabilize at 3,500 megawats would catapult to 6,000 megawatts, which is a little less than 100 per cent increase. Quite a fear indeed, if actualized.
More than any administration, the present administration led by Dr Goodluck Jonathan has shown bold commitment in the development of the nation’s power sector through its reform agenda.
The administration inherited 2,250mw electricity generation during its inception under the then Power Holding Company of Nigeria (PHCN), and decayed infrastructure with power plants that hardly met half of their installed capacities.
But realizing that electricity remains the catalyst that could power the nation’s economy in its bid to actucalise its vision of becoming one of the first 20 economies of the world in 2020, it privatized the then PHCN by opening the market for interest foreign and local investors for efficiency.
Apart from privatizing PHCN, it embarked on massive repairs and upgrading of power plants across the country and had recently also disclosed its determination to embark on the longest gas pipeline project that would run from the South, through the West and to the Northern part of the country.
For a nation with the 9th biggest gas reserves in the world, abundant coal and hydropower potentials, growing interest in solar energy and huge power infrastructural development, achieving 6000mw target for her 170 million citizens should not attract any reasonable attention, after all.
Yet major challenges that may truncate the humble target of 6000 mw electricity generation set by the government are, the activities of callous vandals who vandalise with passion, oil and gas pipelines, including electricity transformers through which the electricity as the end point can get to the Nigerian masses.
Early this year, Federal Government successfully repaired the Escravos gas pipeline that was crippled by incessant vandalism and was able to raise generation to over 900mw, but while Nigerians were enjoying the improved power generation, the vandals attacked Trans-Forcados pipeline, leading to its being shut down thereby forcing the nation back to where it was.
The Managing Director of 4 Power Consortium recently lamented over the negative impact of transformer vandals to the Port Harcourt Electricity Distribution Company (PHEDC).
He said an average of four transformers were being vandalized daily in Akwa Ibom State alone and noted that in the company’s effort to improve power generation to the people, the activities of the vandals to power facilities have become a challenge difficult to surmount. Infact, the MD even threatened that PHED was considering a shut down in the state.
According to Edevbie, the vandals have strong penchant for transformer oil which they consider to be lucrative.
Another company manager had also revealed that the vandals target the copper wire which they sell at cheap prices to some dealers who melt them for the production of earnings, necklaces and other jewelries.
Yet another obstacle to Nebo’s 6000 mw, target by December this year will also come from the mistrust between the former PHCN workers inherited by the new private investors.
The management of Power firms across the nation are being accused of power welfare of their staff and also not ready to tolerate unionism .
They are also accused of targeting staff who are interested in union matters. Just two weeks ago, the Nigeria Labour Congress in the South South had to picket PHEDC.
Among their reasons were nonpayment of the  severance package to some of the former PHCN workers which was part of the privatization processes casualisation of staff, as well as the new investors’ unwillingness to tolerate labour unions in their firms.
As a result of the frosty relationship, NLC sealed off all the offices of PHEDC in the four states it covers and only suspended the picketing when it assumed a violent dimension.
The new investors on their own parts complained of being weighed down by huge debt by customers who benefitted from their services. The MD of 4 Power accused the government of being the worst debtors and disclosed that through most of the parastatals and agencies, the government’s huge debt was frustrating the company’s operations.
So, while Nebo means well in his new target, as the representatives of the government,  it also behoves him to initiate ways and means through which government agencies that have become irresponsible debtors to the power companies to do well by offsetting their debts. Maybe, the better way of doing this is by designing ways of withdrawing directly from their subventions and allocations.
It is only when the huge debts owed the new power firms are paid that the ambitious 6000mw target could be actualisable.
It baffles the common masses when issue of non payment of severance packages resurfaces in view of the several hundreds of billions of Naira Federal Government said had been released to the PHCN former staff. Not minding whether the claims are right or wrong, the government should ensure the privatization process of the reform should be seen as a past stage that has been fairly concluded by those directly involved.
The Public must come to the reality of the fact that the new investors are in business solely for profit unlike before when government was in charge and electricity supply was viewed as a social services. As the tone has changed, so also should the dancing step change in order to match.
The community leaders and chiefs who for one reason or the other were not paying for electricity services supplied to them before must know that nobody other than them would pick their bills for services they enjoyed through the private firms.
The new call for re-orientation should as well as be approached with patience on the part of the new investors. The public must know that the investors have only recently taken over and therefore not expect the best which should come with time. In the other way round, the new investors should also be patient in their bid for profit maximization since their publics and customers need to adjust their with time.
The investors should do themselves good by developing a framework that could engender good relationship with their workers by way of embracing unionism because, it is a reality they can not run away from as long as their operations are in line with the nation’s constitution.
On the part of the consumers, of both classes, the investors must consider attractive Corperate Social Responsibility (CSR) initiatives to engender and sustain cordial and harmonious relationship with them.
Such CSR initiatives would be of huge benefit to the power firms as they would need to collaborate with the public especially in protecting their facilities since frosty relationship may not be able to drive such collaboration.
With these steps, and better protection of pipelines  through involvement of the natives, 6000mw could be attained by December.

 

Chris Oluoh

 Minister of State for Power, Mr Mohammed Wakil (right) and Team Leader of American Investors, Mr Roy Tefeez, signing a Memorandum of Understanding (MoU) on power in Abuja, recently. With them is Director, Legal Services, Ministry of Power, Mrs Adedotun Shoetan. Photo: NAN

Minister of State for Power, Mr Mohammed Wakil (right) and Team Leader of American Investors, Mr Roy Tefeez, signing a Memorandum of Understanding (MoU) on power in Abuja, recently. With them is Director, Legal Services, Ministry of Power, Mrs Adedotun Shoetan. Photo: NAN

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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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