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Nigeria Adopting a Phase-down Approach to Energy Transition – NUPRC Boss

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Mr Gbenga Komolafe, the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria is adopting a phase-down approach to transiting to cleaner sources of energy.

Represented by Mr Bashir Indabawa, Head, National Data Repository, NUPRC, he said that Nigeria was committed to achieving a low carbon footprint.

Komolafe said the global energy transition was a reality, adding that it was affecting investments in fossil fuel industries.

“Nigeria is fully committed to the COP 26 agreement, having pledged to achieve net-zero targets by the year 2060.

“However, the implementation process would have to align with our strategic national interest toward energy security and sustainability.

“In keeping with this commitment, we will be adopting the ‘phase-down’ as against the ‘phase-out’ approach in exploitation and utilisation of our endowed energy resources.’’

Komolafe said the government had adopted gas as its transition fuel and was working toward gas reserves growth, optimising gas production, increasing domestic gas utilisation as well as gas flare elimination.

Mr Justice Derefaka, Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, said the Petroleum Industry Act (PIA) was critical to gas development.

Derefaka said the PIA had generous fiscal provisions aimed at attracting investment in gas exploitation and utilisation.

According to him, other policies aimed at deepening gas utilisation in Nigeria include the Decade of Gas initiative, the National Gas Expansion Programme and the National Gas Flare Commercialisation Programme.

Mr Sharfuddeen Mahmoud, General Manager, Market, Competition and Rates Division, Nigerian Electricity Regulatory Commission (NERC), said there was chronic energy poverty in Nigeria.

Mahmoud said the problem was being addressed through the gas to power initiative of the Federal Government with agreements being put in place to ensure stable supply of gas to electricity generation companies.

He said NERC was also giving support to renewables which was being piloted by the Rural Electrification Agency to provide off-grid electricity for Nigerians.

Mr Bolaji Osunsanya, the Chief Executive Officer, Axxella Group, said creation of gas-based industrial clusters across Africa would boost the continent’s economy.

Osunsanya, represented by Mr Fisayo Duduyemi, the Chief Strategy Officer, Axxella Group, said the company had been making massive investments to bring gas closer to industries in Nigeria.

Speaking earlier, Mr Brian Reuben, the Founder, Africa Economic Summit said the summit was aimed at proffering solutions to the economic problems affecting Africa.

Reuben said in spite its huge potential and vast natural resources, Africa was still lagging behind in terms of human capital development.

He said there was the need for African countries to increase collaboration and forge strategic partnerships that would reposition the continent for greatness. (ASO)

Energy and Power

Diri Urges Patience On Bayelsa Independent Power Project

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‎From Mike Tayese, Yenogoa

Governor of Bayelsa State, Senator Douye Diri, has sued for patience on the ongoing installation of the state’s independent power project.

The 60-megawatt gas turbine project, which installation commenced in October this year, was earlier scheduled to be completed by December but suffered some logistical delay.

He called on people of the state to have an open mind about the project, which he said now requires a new completion date due to unforeseen challenges.

Diri, who undertook an on-the-spot-assessment of the project at Elebele in Ogbia Local Government Area on Wednesday, said like other Bayelsans, he was also disappointed that the December completion deadline could not be met.

He, however, stated that his reaction to the delay had been that of understanding rather than being angry as had been noticed, particularly on the social media.

‎”You can see I have  gone round the whole facility. It was based on the working agreement and information available at my disposal that I gave the December date. But as it is with every human endeavor, we must all have an open mind, when it comes to issues, particularly technical matters like this.

‎”I am as disappointed as any other Bayelsan because I believed that we were going to celebrate the 2025 Christmas with our own independent power, but it turned out not to be so.

‎”I call on Bayelsans to have an open mind. These technical experts are working virtually 24 hours, but delays like this will certainly come” he stated.

‎The state’s helmsman implored the people to appreciate the work of the engineers, stressing that a minor mistake was capable of jeopardising the millions of dollars expended on the project.

‎”For 29 years Bayelsa has been in darkness or has endured epileptic power supply. Now that we are getting close to the day of liberation, some people have become impatient. Let us not behave like the proverbial tortoise in the prison for years that asked to be released immediately as the place was smelling the moment he knew it would regain freedom the next day.‎”

‎Governor Diri gave a thumps up to the technical partners, Jampur Group, and its team on ground as well as the Managing Director of the Bayelsa Electricity Company Limited, Engr. Olice Kemenanabo, saying they were working round the clock to ensure the job was completed. 

‎”Those who have been following me on this inspection would know that work has not stopped even for one day since it started. I am sure the job is more than 90 per cent complete. So let us hold our fire. 

“Engineer Olice, I am not putting you under any pressure. From the reports I have, Olice is one of the best electrical engineers in Nigeria.”

The governor, however, hinted that the government was looking at inaugurating the project during its sixth anniversary in February. 

The MD of the Bayelsa Electricity Company Limited, Kemenanabo, who also spoke, said the state was on the right track towards actualising the project and assured that the alignment of the entire system, including the gas generator and alternator were on course. 

He also stated that the remaining two turbines would be delivered to the project site in a few days. 

‎Speaking on behalf of the Jampur Group, Mr. Sherrif Abu-Anif said the company was in good position to meet its own end of the bargain and appreciated the state government for playing its part very well.

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Edun Seeks Liquidity for Power Sector as NDPHC Declares Calabar Best Power Plant

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By Eze Okechukwu, Abuja

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun yesterday declared that liquidity was the major hindrance required by the troubled power sector to achieve the desired result of producing steady Power in Nigeria.

This is as the Managing Director of Niger Delta Power Holding Company (NDPHC) Chiedu Ugbo informed the Senate Committee on Power in Abuja yesterday that the Calabar Power Generation Company under its ownership was the best performing power plant in the country.

In his submission to the Committee investigating the controversial Make up Gas (MUG) Reprocessing Deal Involving the Ministry of Finance, NDPHC, Calabar Generation Company Limited and ACUGAS Limited, the Minister of Finance pointed out that the need for liquidity into the Power Sector remained the key to unlocking it.

The Minister who made the submission through his Special Assistant, Mallam Dahiru Moyi said the agreements on Gas supply between NPDHC and ACUGAS Limited was inherited by former President Muhammadu Buhari in 2015, following after the agreement was signed in 2011 during President Goodluck Jonathan’s administration.

According to him, “just as the Ministry of Justice was not aware of the contract agreement, the Ministry of Finance was also not part of it from the beginning but since government is a continuum, the Ministry of Finance later came into it for the purpose of facilitating the required liquidity.

“The issues on ground about contracts agreements being investigated by the Senate Committee on Power is not about restructuring but providing the required liquidity which the Ministry of Finance is doing through collaboration with the Nigerian Liquified Natural Gas (NLNG).

 “Since NLNG pays Gas in Dollars, the Ministry is collaborating with it for a practical solution of bringing liquidity into the age long contract agreement through Deed of Transfer.

“Make Up Gas (MUG) belongs to Calabar, Calabar belongs to NDPHC and NDPHC belongs to Federal and State governments with the Federal Government having 52.68%”, he said.

In his own submission before the Committee, the Managing Director of NDPHC, Chiedu Ugbo said the company as a result of the Gas supply agreement with ACUGAS Limited was taking Gas from three out of five units and generating power from Calabar plant to the National Grid which according to him was the best power plant in the entire country.

He said NDPHC went out of its way to construct an 80 kilometres gas pipeline for utilization of MUG in Calabar and Alaoji power plants.

He however lamented that problems relating to systemic transition, frequency and voltage issues have not made the firm achieve the desired results.

In his remarks, the Chairman of the Committee, Senator Enyinnaya Abaribe (APGA, Abia South) thanked the stakeholders for giving the Committee clarity on the issue but added that it was still an ongoing investigation.

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Energy and Power

Oil, Electricity Workers’ Unions Mobilise for Planned Strike

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The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to comply with the directive of the two labour centres to begin an indefinite nationwide strike on Monday.

Its General Secretary, Mr Afolabi Olawale, in a statement on Saturday, said the union was committed to ensuring total compliance with the directive.

Recall that the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) declared an indefinite nationwide strike to begin on Monday, to express their grievances over the proposed new minimum wage.

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In a joint statement signed by NLC President, Mr Joe Ajaero and TUC President, Mr Festus Osifo, the centres declared the strike over the tripartite committee’s inability to agree on a new minimum wage and the hike in electricity tariff.

Afolabi said the union was concerned and disturbed with the insensitive attitude of the federal government “to the very critical issue of negotiating a new minimum wage for Nigerian workers”.

“This is in view of the various socio- economic policies of this administration that have impoverished the working people of this country.

“Leaders of our great union at all levels, from the units, zones and branches, should immediately put all processes in place to ensure total compliance with this directive.”

Also, the National Union of Electricity Employees (NUEE) said it was mobilising its members to embark on the strike following the directive of NLC and TUC.

The Acting. General Secretary, Mr Dominic Igwebike, gave the directive to the members in a statement.

Igwebike said that along with the reasons of inconclusive negotiations on the minimum wage and electricity tariff hike, apartheid categorisation of Nigeria electricity consumers into bands was another, to embark on the strike.

“Given the above, all national, state, and chapter executives are requested to start the mobilisation of our members in total compliance with this directive to ensure the government does the right thing as stated above.

“The withdrawal of services becomes effective on Sunday 2nd June by 12.00 midnight, “ the union leader said. (NAN)

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