Business

N9.12trn Budget Unrealistic -N’Assembly

Published

6 years ago

October 4, 2019

Joint Committee report of the Senate and the House of Representatives yesterday released a report asserting that the N9.12 trillion 2019 budget was unimplementable due to shortfall in oil production.
The report, which was obtained by The Tide in Abuja said, oil revenue which is nation’s mainstay was on the decline, hence, it was unrealisable for full implementation.
Chairman of the Joint Committee of the upper and lower legislative chambers in the 2019 budget review, Senator Solomon Adeola Olamilekan, explained: “The key parameters of the 2019 budget were based on a benchmark crude oil price of US6pb, crude oil production of 2.3mpb and exchange rate of N305/US dollar.”
“The projected FGN collectable revenue and fiscal deficit for the budget was N7.92 trillion and N1.86 trillion respectively. “
The report explained that the expected expenditures overshot the national revenue inflow to the extent that the nation has to go a borrowing.
Concerns raised by the report was hinged on the inability of the oil sector to meet with the projected 2.3million barrels of crude oil per day.
“The 2019 budget as approved was predicated on the assumption of a total production of 2.3 million barrels of crude oil per day. “
“However, available records showed that between January to September, 2019, the production output stood at an average of 1.86 million barrels per day with incremental production for repayment of cash call arrears, actual oil production was 1.95mbpd”, th report said.
The report further revealed that non oil revenues fell short of target as N1.71 billion was realised against the projected N2.14 billion as at June, 2019.
In his briefing after the plenary, Senator Olamilekan commended the Nigeria Customs Sevice for over shooting their target of generating over N1 trillion in six months.
He urged other revenue agencies of government to brace up to the challenges of raking in revenue for the government, saying that the country cannot continue to borrow in order to finance its capital projects.
Earlier at the plenary the Senate approved the MTEF to run from 2020 – 2023, while President Muhammadu Buhari was expected to present the 2020 Appropriation to the joint sessions of the National Assembly on Tuesday, next week.

Business

Abia Takes Over Electricity Supply In 8 LGAs

Published

5 days ago

July 28, 2025

The Tide

The Abia State Government said it is finalising a deal with the Enugu Electricity Distribution Company (EEDC) to assume control of electricity supply in eight Local Government Areas currently outside the coverage of Geometric Power.

The move is part of a broader plan to achieve full electricity autonomy and enhance industrial growth across the state.

The Statement Governor, Dr. Alex Otti, made the disclosure while inaugurating professionals to serve on six strategic government boards, including the Abia State Advisory Council on Electricity, chaired by Dr. Sam Amadi, a former Chairman of the Nigerian Electricity Regulatory Commission (NERC).

In a statement signed by the Chief Press Secretary to the Executive Governor, Ukoha Njoku Ukoha, Otti said the ongoing discussions with EEDC aimed to “island” the remaining eight LGAs—similar to the Aba ring-fenced area already powered by Geometric Power.

He added that the state intends to generate, transmit, distribute, and regulate electricity within its territory under the authority granted by the new Electricity Act signed into law in April.

“Electricity is so critical here because everything we are doing, particularly in the area of industrialisation, depends on electricity.

“In the next few months, we should be concluding a transaction with EEDC where we will pull the remaining eight local governments of the state out of EEDC and have them as an island, just like Aba”, the statement said.

The Governor explained that the plan to take over electricity supply in those areas is designed to eliminate dependence on national providers and improve service delivery across the board. Once completed, the deal will allow Abia to independently manage power supply in all 17 LGAs.

The statement emphasised that the State Government views reliable electricity as a foundation for economic development and industrialisation, with the power reform effort serving as a central pillar in its broader reform agenda highlighting the critical role of the Electricity Advisory Council in overseeing Abia’s power transition.

Responding, the Commissioner for Power and Public Utilities and Co-Chair of the Electricity Advisory Council, Engr. Ikechukwu Monday, expressed gratitude for the opportunity, pledging to leverage the council’s expertise to help the government meet its electricity goals.

Business

‘Gas Shortages, Infrastructure Deficiency, Bane Of Power Sector Growth’

Published

5 days ago

July 28, 2025

The Tide

Former Power Minister, Prof. Bart Nnaji, has said that until Nigeria fulfills investment commitments in gas infrastructure that would sustain adequate gas supply to thermal power stations, the growth of the power sector would continue to experience generation shortfall.

Nnaji said in the next two decades power generation in the country would be dominated by gas fired plants.

He attributed Nigeria’s persistent gas shortage to inadequate investment in gas infrastructure and called for more support from both government and the private sector.

Speaking at the 2025 Oriental News Conference, with the theme “Integrating Nigeria’s Gas Potential into Strategic Energy Transition Initiatives”, Thursday, in Lagos, Nnaji, who also doubled as Chairman of the event, said the country’s gas sector remained underdeveloped due to insufficient investment in extraction, transmission and transportation.

Addressing stakeholders from across the oil and gas value chain, including key government officials, Nnaji said “The focus should not rest solely on government-led efforts — the private sector must also play a vital role.

“What we need is for the government to act as a true enabler, offering the necessary support for infrastructure and gas harvesting. It’s baffling that with over 210 trillion cubic feet of gas, we still face local shortages.

“We’re unable to produce sufficient quantities to support operations across the country. Though operations improved this year, they weren’t previously at full capacity. A seventh train is underway, but we need more gas.”

According to him, Nigeria’s history of mining and exporting coal before abandoning it reflects a wider pattern of resource neglect.

The former power minister, who stated that gas-fired plants were critical to Nigeria’s power generation, stressed the need for a reliable supply to ensure thermal plants operate effectively.

He noted that Geometric Power Ltd, which he chairs, is among the companies generating electricity through thermal sources.

“For effective supply from thermal plants, an adequate and reliable gas supply is vital. While we have hydro power, gas-fired plants remain dominant and will likely stay that way for the next ten to twenty years”, he said.

While acknowledging the role of renewable energy in rural electrification, Nnaji stated that Nigeria’s baseload power must continue to come from gas or hydro sources, noting, however, that hydro power comes with limitations that require regional cooperation.

Business

NUPRC Blames Out Service Trunk Lines On Vandalism … As Rivers NUJ Promises Development Journalism

Published

5 days ago

July 28, 2025

The Tide

The Port Harcourt Regional Coordinator, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Dr. Musa Zagi, has blamed the out of service of its several Trunk Lines on act of vandalism.

Zagi expressed the reservation while playing host to a Courtesy Visit by the Rivers State Council of the Nigeria Union of Journalists (NUJ), in his office, in PortHarcourt, recently.

Lamenting the increasing incidents of what he described as wilful destruction of trunk lines, Zagi expressed regret over the frenzy for compensation, despite the Petroleum Industry Act (PIA).

He insisted that the vandalisation of the nation’s oil and gas facilities has contributed to the setbacks in the sector as it has also resulted to the out of service state of most of its trunk lines.

Zagi noted with dismay the decrease in production in the faces of increased population and expenses, adding that it has also led to increased trucking on the roads and all, at the detriment of the nation’s economy.

“Regrettably, production is decreasing while expenses and population are on the rise. This has incidentally increased trucking on our roads, since almost all our trunk lines are out of service. It is in this light that your visit to us becomes apt”, he stated.

While lauding the Rivers NUJ for initiating the visit, Zagi urged the Union to, through its reportage, sensitise the people on the need to eschew wilful vandalisation of the nation’s oil and gas facilities.

He said, “again your decision to change the narrative from incident reportage to developmental journalism should be commended by all. We are excited by that cheering news”.

Earlier, the Chairman of the Rivers State Council of the NUJ, Comrade Paul Bazia-Nsaneh, noted the crucial role of the NUPRC in managing the oil and gas industry, the heartbeat of the nation’s economy and stressed the need for partnership for greater productivity.

Bazia-Nsaneh stated that the Council under his leadership was poised to change the narratives of journalism from incident reportage to development journalism.

In his words, “We are moving away from incident or negative reportage to development journalism.

“NUJ, therefore, is open to partnering with you in that regard, having known the crucial role NUPRC plays in regulating the oil and gas, especially the upstream”.

By: Lady Godknows Ogbulu