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Towards Effective Power Sector Reform

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The power sector is one of those sectors of the Nigerian economy that has received critical attention within the past 57 years of the corporate existence of the country as an independent state.
As part of measures to attain desired impact and maximal results in the power sector, vast treaties and hypothesis have been made over the past years, while billions of tax payers money have been sunked in.
The prospect of development, remains but a flicker, a mere shallow reflection of the expected breakthrough from the huge investment invested into the sector.
However, as the country marks its 57 independence celebration, Nigerians are desirous of the full dividends of the huge investment in the power sector.
The fact been that effective power supply is what is needed in the country to drive entrepreneurial growth and enterprise development among the teeming masses and create job opportunities.
Pundits have blamed the challenges in Nigeria power sector reforms on many factors.
One of such factors identified is the use of similar approach or methodology in solving power sector problems, thereby resulting in same old inefficiencies.
Apart from apparent diversion of fund meant for the resuscitation of the ailing sector, the lack of input of real technocrats and experts in policy making and implementation, has also been pointed as been responsible for the woes in the sector.
Musing over the prospect of development in the Nigerian power sector, an expert, Engr. Isaac Adekanya said the lapses in the sector reform were traceable to some missing links in the operation of the power sector.
Adekanya, who is the Port Harcourt branch Chairman of the Nigeria Institute of Electronic, Electrical engineers, disclosed in an exclusive interview with The Tide, that the Nigerian power sector was yet to attain synergy in the three major areas that constitute the sector, such as Power Generation (Genco) power Distribution (DISCO) and Power Transmission (Transco).
According to him, not all the power generated in the country are transmitted and distributed to the end users.
“There are a lot of technical challenges in the generation, transmission and distribution of power in the country. Most of the power projects carried out in the country have no consideration for the distribution and transmission of the generated electricity to the end users. An example is the Omoku power project, which is a huge investment but had not been able to make maximal impact because of the challenges of transmission and distribution”.
Adekanya, who is also a fellow of the Nigeria Society of Engineers said similar challenges exist in the transmission of generated electricity to the National Electricity Centre at Osogbo. He said most of the power generated are wasted along the line before they get to the end users.
In his view, the concentration of generated electricity at the Osogbo Power Centre where the needs of consumers across the country are decided may not be serving the best interest of the various sections of the country.
He noted that such discretionary measures in the allocation of power may not truly represent the electricity demands of the various states of the nation.
Alternatively, Engr. Adekanya suggested that power generation, transmission and distribution should be based on comparative economic advantage, as the various parts of the nation have peculiar natural advantages in strategic location of energy sources.
“The various parts of Nigeria are disposed with vast energy sources that can be explored based on comparative advantage. In the north, there is abundance of solar energy source, in the middle belt there are rivers that can be harnessed for hydro power generation while the Niger Delta is blessed with enormous gas potentials for thermal energy.
“These energy sources can be explored fully to serve the power need of the various areas where they are located. The idea of evacuating generated power to Osogbo before distribution may not be entirely the best option for the country. Nigerians are in serious need of electricity to do their business. It is regrettable that at 57, the country still runs a generator economy”.
Adekanya, who is a proponent of diversification as the panacea for effective power sector reform, also faulted the allocation of the DISCO by the federal government.
He said the DISCOs were given out on political consideration rather than competence and liberalisation.
He noted that the conspicuous absence, or non involvement of experts with the requisite technical knowhow in the DISCO stifles development in the sub-sector, as those involved are more concerned about profit motive than effective service delivery.
He therefore advocated for full liberalisation of the DISCO for more players to be involved on a note of competition in service delivery as in the case of the telecommunication industry.
In his submission, another expert in renewable energy, Elder Elkanah Hanson said the future of Nigeria’s industrialisation depended on renewable energy which is a global phenomenon.
Elder hanson, who spoke with The Tide correspondent in Port Harcourt recently, said nations of the world are taking advantage of renewable energy to serve their electricity needs.
The elder statesman, pointed out that Nigerian electricity laws were based on colonial orientation and as such do not serve our peculiar development need.
To attain sustainable development in power sector reforms, he called for a total revocation of the obsolete electricity laws and adoption of inventions that are best suited for our polity.
Elder Hanson, who described the concentration of generated electricity at Osogbo as “economic piracy”, said the major problem with Nigeria was its behemoth federal status, that disposses the component units of the country from developing at their own pace.
He called for total restructuring of the centralised federal structure of the country and added that electricity should not be the exclusive reserve of the Federal Government.
“At 57 Nigeria has come of age and should not be toddling again. It is ridiculous that we are still battling with defects in the power sector, our value system must change. The fight against corruption must be thorough and complete. The Federal Government should declare a state of emergency in the power sector. The lumping of power ministry with works and housing is wrong. The power ministry should be made to stand on its own and an expert should be saddled with the responsibility of running the ministry”.
Meanwhile, the Federal Government has stated that it was not against states building their own power projects to support incremental power.
Minister of power, works and Housing, Babatunde Fashola disclosed this at a meeting of the National Council of Power (NACOP) held in Jos, Pleateau State recently.
The minister explained that the law allows states to embark on electricity distribution under license through the Nigeria Electricity Regulatory Commission (NERC).
Fashiola further hinted that in the Power Sector Recovery Programme (PSRC) of the Federal Government, states are vested with enormous responsibilities to ensure that, “their residents comply with safety standards on building by not building on the right of way of 332/133,33 and 11KVA lines”.
He also urged states to encourage their residents to pay for consumed energy while the metering issue and estimated billing is addressed.
Fashola, who described the meter system as cost effective, called on state governments to set up debt verification teams with audit capacity to ascertain the debt profile and develop a payment plan which can be budgeted for. This he noted will help liquidity issues and contribute to the power sector reforms.
Considering the importance of power in the economic development of any nation, the 57th Independence anniversary of Nigeria offers an avenue for a critical review of the power sector for better service delivery.
The fact remains that competence and not politics should be the criteria for participation in the power sector. This will give more room for innovation and efficiency.

Taneh Beemene

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Oil & Energy

Global Energy Crisis Is Reviving Green Hydrogen

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The global energy crisis has reshaped global energy priorities seemingly overnight. The Strait of Hormuz has been closed to virtually all commercial traffic for well over a month now, severely restricting global flows of oil and gas. As a result, global energy prices have skyrocketed, and supplies have tightened, pushing many countries to explore alternative energy pathways in a big hurry. This has led to an unfortunate resurgence of coal-fired power, especially in Asia – but it is also set to supercharge the clean energy industry on a global scale. And one of the unlikely benefactors of this groundswell of new investment may be the green hydrogen industry.
China, the world’s top hydrogen producer, is planning to ramp up production of hydrogen, and especially green hydrogen, more quickly than previously planned in order to shore up its energy security as import-dependent Asian markets are rocked by skyrocketing oil and gas prices. China’s National Energy Administration (NEA) has referred to hydrogen as a “strategic lever” for national energy autonomy and resilience, and has pledged to accelerate the development of the domestic sector accordingly.
China’s 15th five-year plan, released last month, flagged hydrogen as a “future industry.” But, apparently, the future is now. According to a recent report from the South China Morning Post, the rhetoric around hydrogen coming out of China signals a shift away from research and toward rapid practical development of the sector.
Last year, the NEA earmarked 41 projects in nine regions across the country to lead hydrogen pilot projects all along the value chain “from production and transport to storage and application.” Now, leadership is pushing to bring those projects out of demo phases and into industrial applications as quickly as possible.
European leaders, too, are pivoting to embrace green hydrogen production with renewed enthusiasm. Earlier this month, ministers from Austria, Germany, the Netherlands, Poland, and Spain petitioned the European Union to loosen production regulations to encourage investment into the sector. And Italy successfully approved a €6 billion state aid plan to support renewable hydrogen.
Even the United States is getting on board. This week, the Trump administration instructed the Department of Energy to save $5 billion worth of hydrogen hubs that were slated for closure. The hydrogen projects – though not green hydrogen ventures – were funded under the Biden administration in order to promote cleaner-burning fuel sources.
Hydrogen could potentially be a critical pathway for decarbonization, as it combusts at high heat like fossil fuels. But, unlike fossil fuels, when it burns, it leaves behind nothing but water vapor. This could make it indispensable for the decarbonization of hard-to-abate sectors like steelmaking and shipping. However, the vast majority of commercial hydrogen is made with fossil fuels. Green hydrogen, by comparison, is made using renewable energies.
But while hydrogen, and especially green hydrogen, could be a key part of the global clean energy transition, research and development in the sector had been cooling for years, as commercial and cost-effective green hydrogen production methods largely failed to materialize. “Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen from being cost-competitive in many sectors,” Roxana Shafiee, a postdoctoral fellow at the Harvard University Center for the Environment, told The Harvard Gazette in 2024. Shafiee led a study that found cause to believe “that the opportunities for hydrogen may be narrower than previously thought.”
But the economics of energy are changing as we speak, and the global hydrogen market is likely about to see a windfall as the world rushes to replace geopolitically risky fossil fuels, which have become prohibitively expensive overnight. Clearly, global leaders are already reembracing the fledgling sector as part of an all-of-the-above approach to energy security and independence. While hydrogen may not be a silver bullet solution, it could be a critical part of a more diverse and therefore more resilient global energy landscape going forward.
By Haley Zaremba
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Oil & Energy

PETAN Tasks Indigenous Oil Firms On Investments Attraction    … Global Engagement Sustenance

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The Petroleum Technology Association of Nigeria (PETAN) has urged indigenous oil and gas companies to deepen global engagement and attract investment.
The Association urged intending participants to leverage the forthcoming 2026 Offshore Technology Conference (OTC) in the U.S. to expand their access to new technologies and partnerships.
PETAN said its participation at the global event would be driven by a deliberate strategy to position Nigerian firms as competitive players within the international energy value chain.
In a statement issued  by the Association’s Publicity Secretary, Dr Joan Faluyi, In Lagos, at the weekend,  PETAN would anchor its activities at the Nigerian Pavilion, with the theme: “Africa’s Energy Transformation: Scaling Investment, Technology, and Local Capacity for Sustainable Growth”.
Faluyi noted that the conference, scheduled for May 4 to May 7 in Houston, Texas, remained a leading platform for offshore energy dialogue, partnerships and innovation.
According to her, PETAN’s participation goes beyond routine attendance and reflects a focused effort to strengthen Nigeria’s visibility and influence in global energy discussions.
“At OTC 2026, PETAN is returning with stronger alignment and a clearer objective, to ensure Nigerian companies are not just present, but actively engaged and recognised as credible global partners,” she said.
Faluyi explained that the association had consistently showcased the capabilities of indigenous oil and gas service providers at previous editions of the conference, reinforcing their capacity to compete internationally.
She added that the Nigerian Pavilion would serve as a strategic hub for investment discussions, technical exhibitions and direct engagement with global stakeholders.
The association is also scheduled to participate in key engagements, including the African Energy Forum, the NCDMB–OEM Investment Forum and the PETAN Golf Tournament slated for May 7 at Quail Valley Golf Course, Texas.
Faluyi described OTC as a critical gateway for Nigerian companies seeking international opportunities, noting that visibility and engagement at the event often translate into commercial partnerships.
“In an increasingly competitive energy landscape, securing a seat at the global table is essential. Through sustained participation, PETAN continues to assert Nigeria’s place in that conversation,” she said.
Also speaking, PETAN Chairman, Mr Wole Ogunsanya, said the Association’s focus was to ensure that indigenous capacity is fully integrated into global energy decision-making processes.
“We have seen firsthand how global energy decisions are shaped at OTC. This year, we are returning to ensure indigenous Nigerian capacity is not just present but recognised, engaged and heard.
“We are taking our businesses to the table where real partnerships are formed,” he said.
Faluyi added that under Ogunsanya’s leadership, PETAN was prioritising strategic positioning to ensure Nigerian companies are not only visible but considered credible partners in major international energy projects.
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Oil & Energy

Solar Panels Imports Ban: Experts Recommend Phase -out Approach 

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Stakeholders in Nigeria’s energy sector have warned that an abrupt restriction on solar panels imports would undermine electricity access.
The experts called for a gradual phase-out of imports over several years rather than an outright ban.
Recall that the federal government had announced plans to halt solar panel imports after investing more than N200 billion to encourage domestic production.
Speaking at the Solar Power Media Training, in Abuja, last week, the Campaign Director, Secure Energy Project (SEP), Joseph Ibrahim, said stakeholders support the goal of building local manufacturing capacity but cautioned against sudden policy shifts.
“Let me be clear, we wholeheartedly support local manufacturing of solar panels”.
“We want to see factories in our states, jobs for our youth, and a supply chain that begins and ends on our soil”, he stated.
Ibrahim insisted that the most effective path forward is a carefully managed roadmap implemented over three to five years to give investors and workers time to adjust.
“If we rush this, we risk making solar power too expensive for the millions who currently rely on it for survival.
“By taking a phased approach, we allow time for investors to build their plants, for our workers to learn specialised skills, and for our economy to adjust without losing power”, he said.
The SEP director said policy stability, access to financing, and strict quality standards are essential to building a sustainable local solar manufacturing industry.
“To make local manufacturing a reality, we don’t just need new laws; we need an enabling environment. This means stability — policies that don’t change with the wind,” he said.
Also speaking, Tosin Asonibare,  said renewable energy has become a critical solution to Nigeria’s persistent electricity supply challenges.
He cited findings by the Global Initiative for Food Security and Ecosystem Preservation, indicating that many Nigerians remain unaware of the proposed import restrictions and their potential implications.
According to him, respondents in the report largely favoured a phased ban supported by incentives for importing raw materials needed for local production.
“The report also shows that infrastructure for locally manufactured panels is not fully available, so there is need for foreign direct investment improvement in government policy.
“So that the local manufacturers and assembling companies can have higher capacity to meet demand. If that is not done, the price of solar panels will go up”, he said.
He warned that affordability could become a major concern for consumers if restrictions are implemented without adequate preparation.
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