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Economy

FG, Siemens Sign 25,000MW Electricity Deal

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  • No middlemen will be involved, Says Buhari  

By Mathew Dadiya, Abuja

In its continuous effort to address the epileptic power supply in the country, the Federal Government of Nigeria and German -based electricity giant – Siemens on Monday, signed an agreement to boost power supply from current 5000MW to 25,000MW by 2025.

President Muhammadu Buhari while speaking shortly after a signature ceremony for the deal said that the goal of his administration was simply to deliver electricity to Nigerian businesses and homes.

 

Buhari said that his administration’s priority was to stabilise the power generation and gas supply sector through the Payment Assurance Facility, which led to a peak power supply of 5,222 MW.

Nonetheless, the President noted that the constraints remained at the transmission and distribution systems.

He said: “This is why I directed my team to ask Siemens and our Nigerian stakeholders to first focus on fixing the transmission and distribution infrastructure – especially around economic centres where jobs are created.

“Whilst it was evident that more needed to be done to upgrade the sub-transmission and distribution system, our Government was initially reluctant to intervene as the distribution sector is already privatised. 

“I am therefore very pleased with the positive feedback from private sector owners of the distribution companies, who have all endorsed Government’s intervention to engage Siemens on this end-to-end plan to modernise the electricity grid.”

The president said that his challenge to Siemens, Nigeria’s partner investors in the Distribution Companies, the Transmission Company of Nigeria and the Electricity Regulator is to work hard to achieve 7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023 – in phases 1 and 2 respectively. 

“After these transmission and distribution system bottlenecks have been fixed, we will seek – in the third and final phase – to drive generation capacity and overall grid capacity to 25,000 megawatts. 

“With our strong commitment to the development of Mambilla Hydroelectric and the various solar projects under development across the country, the long-term power generation capacity will ensure adequate energy mix and sustainability in the appropriate balance between urban and rural electrification. 

“Our intention is to ensure that our cooperation is structured under a Government-to-Government framework,” he added.

President Buhari warned that no middlemen will be involved, so as to achieve value for money for Nigerians. 

He insisted that all products be manufactured to high quality German and European standards and competitively priced.

This project, however, President Buhari acknowledged would not be the solution to all nation’s problems in the power sector. 

But he expressed confidence that it has the potential to address a significant amount of the challenges we have faced for decades. 

Meanwhile the Global Chief Executive Officer of Siemens, Joe Kaeser, who spoke to State House Correspondents after the meeting that the road map will enable Nigeria delivers the country’s capacity of power in the first phase of 7,000, second phase up to 11,000 and third phase 25,000 megawatts. 

Kaeser said: “That will significantly enhance the country’s power supply and gets the country to the next industrial phase. We believe we will all very much benefit together, the people of Nigeria and of course Siemen as a company.

“I’m very honured that we were able to sign this road map today in the presence of President and our partners. I will personally make sure that this will be the big success of Nigeria, Siemen and our partners in the country.”

On the cost of the project and how long it will last, Kaeser said: “we have really talked about solutions and how it can bring power to the people literally, from generation to transmission and effective distribution. Yes, we have been talking money at this time because this about a long term partnership and is a road map which we are going to work all the way till 2025.

“The first phase is suppose to be done by 2021, second phase till end 2022 and the final phase by 2025.”

Also, the Director General of Bureau for Public Enterprises (BPE), Alex Okoh, while fielding questions from State House Correspondents, described the partnership as credible.

He said what has been done so far is the technical evaluation from both the transmission and distribution to know what the gaps are, to essentially understand what the gaps are in terms of the technical infrastructure to improve the transmission and distribution capacity.

Okoh said that the next phase is to do the detailed commercials and see costing of what the Siemen intervention will entail before they will agree on the financial frameworks to domiciled the financial commitment within the books of the DISCOS. 

“If you look at the amount of losses that is being experienced in the entire power sector, there are huge. We are talking about double digits losses between 30 percent and in some DISCOS almost 70 percent ATC and C losses. So that is a strong signal that the way the market is currently structured is not sustainable and if we don’t improve the critical infrastructure in terms of the winning capacity of TCN and also the distribution capacity of the DISCOS, then this kind of situation will persist for a long time. 

“That is why we welcome this intervention and we believe that within the timelines that have been directed by Mr. President, we will be able to significantly improve power supply in the country.”

Economy

Umahi congratulates Mbah, urges opposition parties to stop distraction in Enugu

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…..Umahi congratulates Mbah

Minister of Works, Chief Dave Umahi, has congratulated Gov. Peter Mbah on his victory at the Enugu State Governorship Election Petition Tribunal, even as he called on opposition parties to stop distracting the governor.

Umahi, who is an All Progressives Congress (APC) stalwart, said it was not about party affiliation but about the quality of the individual chosen by the people of the state to lead them.

The minister, who said this when he inspected the collapsed bridge at the Enugu end of the Enugu-Port Harcourt expressway, advised the opposition in the state not to waste their time contesting Mbah’s ‘divine and people’s mandate’.

He also said that Mbah’s initiative to commence the reconstruction and dualisation of Enugu-Abakaliki road up to the Ebonyi boundary was another display of people-driven leadership by a private sector person in governance.

“I am happy that you came from the private sector. There is a high hope, especially with the steps you have taken so far.

“They are in tandem with President Bola Tinubu’s steps and I pledge to support you. There must be a change; we must reset the country.

“I want to publicly say, while congratulating you on the tribunal victory, that whoever is taking you to court must stop wasting his time as you are clearly the people’s choice and for good reasons.

“So we will continue to support and pray for you and I urge whoever is distracting you that they should understand the steps of God and know that your emergence is divine and we are very proud of you.

“I know Gov. Mbah as a very successful private person and he is going to bring it to bear in the governance of this state.

“I also believe that what he is bringing to the table will rub off positively on Enugu State, the entire South-East states,” he said.

The minister also commended Mbah for ending sit-at-home in the state, describing it a major step forward for the Igbo nation.

“Let me also thank you for being able to courageously stop sit-at-home in Enugu State.

“It is a major thing you have done for the Igbo people and for the country,” he said. (NAN

…..Umahi congratulates Mbah

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FG Plans Full Production Capacity  Revamp  for DICON  – Matawalle

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By Tony Obiechina, Abuja 

The Minister of State for Defence, Dr Bello Muhammed Matawalle, has charged the staff and engineers of the Defence Industry Corporation of Nigeria (DICON) to improve on their performances as Federal Government plans to revamp and scale up the industry to a full production capacity.

In a statement by the Acting Director of Press and Public Relations of the Ministry, Attari Hope in Abuja on Saturday, Matawalle stated this during his maiden visit to DICON facilities in Kaduna State.

 

In an address to  staff of the industry, he said “as the technical personnel of this promising industry, your professionalism and dedication to work is paramount in sustaining the vision and growth of this industry.

We will ensure you get adequate funding to achieve this.”

The Director General of DICON, Maj Gen AE Edet, lauded the Minister of State for his words of encouragement and assured hm of DICON’s unwavering commitment to its vision and objective which it was set up.

As part of his maiden tour of DICON, the Minister of State visited the DICON’s Special Equipment Factory, Ballistic Helmet Production Unit, Tailoring Unit, amongst others.

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Economy

Kwara EXCO Okays N239bn 2023 Revised Budget

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Kwara State Executive Council has given approval to Governor AbdulRahman AbdulRazaq to present to the state House of Assembly, a draft revised 2023 budget of N239,084,199,757.00, with capital expenditure taking some 50.2% of the chunk, while recurrent tanked to 49.8%.

The revised budget is 27% larger (N50,238,596,196.

00) than the approved 2023 budget earlier approved by the House.

The approval followed a submission from the Commissioner for Planning and Economic Development, Hon.

Lafia Aliyu Kora Sabi, who said that a service-wide and bottom-up process for the revised budget started since June 2023 — followed by thorough deliberations and reviews of submissions from the Ministries, Departments and Agencies (MDAs) of the government by the Central Budget Committee (CBC).

“The pertinent factor governing the selection of projects for execution in the remaining part of the year is the emphasis placed on capital projects that are critical to stimulate the economic activities in the state for inclusive growth and development,” Sabi told the council, adding that special considerations have been made to boost economic activities and improve the living standard of the people.

The cabinet, among other government processes, also approved for Star Sewing Machine Limited, an International firm, to manage the state’s Garment Factory following a long-drawn bidding process involving open tendering in line with relevant laws.

Held Friday evening, the council meeting was chaired by Governor AbdulRazaq, attended by Deputy Governor Kayode Alabi; Secretary to the State Government, Alhaji AbdulKadir Mahe; and all the commissioners.

Chevron continues to partner Nigeria for socio-economic development—MD

Chevron Nigeria says it has continued to make significant investments in Nigeria including generating socio-economic development in several communities across the country in its six decades of operation.

Its Chairman and Managing Director (MD), Mr Rick Kennedy, made this known in a statement on Sunday in commemoration of Nigeria’s 63rd Independence Day.

Kennedy said that the company strove to build lasting relationships to help enable human progress now and into the future.

According to him, Chevron Nigeria has been successful in leading and investing in some major initiatives in the Nigerian oil and gas industry.

“These include the development of the Deep Water Agbami project which has produced over one billion barrels of oil.

“The development of the Escravos Gas Processing facility to enable the reduction of flares and be the largest supplier of on-spec domestic gas in Nigeria.

“Also, the development of the Escravos Gas-to-Liquids facility to reduce gas flaring and produce high quality diesel,” he said.

The MD said also, that Chevron companies in Nigeria had developed and imbibed the Local Nigerian Content development philosophy well before the enactment of the Nigeran Oil and Gas Industry Content Development Act (“NOGICD Act”) in April 2010.

He said that Chevron had helped in building the capacities of several Nigerian businesses by providing training, contracts and procurement opportunities to Nigerians on all projects in our operations.

“For the last 10 years, one of the Chevron Nigeria companies, Chevron Nigeria Limited has spent an estimated annual average of $1 billion on Nigerian suppliers and service providers.

“Chevron does all these, not because it is compelled to, but because it is the right thing to do,” Kennedy said.

Also, Chevron Nigeria’s General Manager, Policy, Government and Public Affairs, Mr Esimaje Brikinn, said that Chevron Nigeria’s focused on helping to engender the development of communities in the Niger Delta.

According to him, this is through the erstwhile Global Memorandum of Understanding (GMoU) a community-driven, participatory partnership model for community engagement pioneered by Chevron Nigeria in 2005.

“Through the GMoU, we provided funds to execute hundreds of projects in the communities where we operate in the Niger Delta region.

“This has led to social investment projects benefitting over 600 communities in the Niger Delta area.

“We will be leveraging our experience with the GMoU in the implementation of the Host Community Development Trust provisions of the Petroleum Industry Act,” Brikinn said. (NAN)

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