Energy
$900bn Needed to Fix Energy Sector – President Jonathan
…FG sets up power intervention funds with N300bn as seed capital
… Local banks’ commitment to power sector hits N750bn
ABUJA – President Goodluck Jonathan Monday said Nigeria would need about $900 billion to properly address its energy sector in the next 30 years.
Jonathan, who was represented by Vice-President Namadi Sambo at the Nigeria power financing conference in Abuja, added that the largest chunk of the funds would have to come from the private sector.
According to him, in the power sector alone, $10 billion is needed for generation and distribution to add 5,000 megawatts to the national grid.
He reiterated his confidence in the ability of the global community of private and institutional financiers to meet up with its request for improved investment in Nigeria’s infrastructure expansion.
The president explained that the federal government had long realised its challenges to sustainably fund critical national infrastructure projects, hence its continued discussion with the private sector to address the situation.
Jonathan also disclosed that the government had set up an intervention fund to further support the growth of the power sector with about N300 billion initial deposit.
He however stated that the total size of the fund, which would be contributed in partnership with Development Financial Institutions (DFIs), was being worked on.
President Jonathan expressed his conviction in the ability of private and institutional financiers to extensively participate in the next phase of Nigeria’s power sector reform programme, with investments in gas-to-power initiatives, renewable energy sources as well as on-grid electricity generation, transmission and distribution projects.
“Under our national integrated national infrastructure master plan, we need a total of $2.9 trillion for our infrastructure development efforts in the next 30 years. The energy sector alone needs an infusion of about $900 billion during the period.
“Of this, a significant percentage is expected to come from the private sector. The power sector alone needs about $10 billion for CAPEX (capital expenditure) of generation and distribution companies in the next few years to enable us add additional 5,000 megawatts.
“Similarly, our transmission network continues to attract serious attention. The transmission grid requires an annual investment of about $1.5 billion for the next five years to ensure its reliability and stability. The Transmission Company of Nigeria (TCN) has commenced the aggressive implementation of the expansion blueprint funded by a mix of appropriation and funds from financial and multilateral institutions,” he explained.
The president further said: “It is the belief of this government that the private sector is suitable to effectively manage and attract the huge capital required for constant and affordable power to all Nigerians.
“This confidence on the Nigerian private sector stems from a track record of resilience, vibrancy, foresight and courage. In virtually all sectors of our national economy, this great show of enterprise, creativity and patriotism by our business community has kept our national economy strong, versatile and forward looking.
“When we started our divestment programme in the power sector and their foreign partners, there was a lot of pessimism. However, it was the dynamism of the Nigerian private sector that ensured the raising of over $2.5 billion that ensured the successful conclusion of the process.
“It is on this account that this government has continued to work with the private sector as the drivers of economic growth and national development. Beyond the incentives amply stated, we will continue to fine tune and improve the enabling environment for economic activity and social development.”
On the new contributory intervention funding, Jonathan said: “It is obvious that government alone cannot fund the infrastructural deficit in Nigeria, especially given the trend in the global economy.
“This conference therefore comes at an appropriate time given the opportunities in Nigeria. Nigeria has become an obvious destination of priority for Foreign Direct Investment (FDI).
“To enable industry players have access to cheap, long term funds, government is hereby setting up a ‘Power Sector Intervention Fund’. The financial resources for this special fund will be pooled from the federal government, Development Financial Institutions (DFIs) as well as local and global financial partners.
“The Coordinating Minister of Economy will give details of the operational structure of the bond. But, it will essentially provide avoidable refinancing and unending services to the sector. On its part, the federal government will make initial deposit of N300 billion and I call on all participants to join hand towards the success of this endeavour.”
Meanwhile, the Managing Director of Diamond Bank Plc, Dr Alex Otti, said as at December 2013, Nigerian banks had committed a total of N750 billion to support the power sector reforms.
Otti, who spoke on behalf of other local participating financial institutions in the Nigerian Electricity Supply Industry (NESI), reiterated that the banks would improve on their financial support to the sector for as long as the government is committed to transparent processes in the sector.
– THIS DAY
Energy
Asharami Synergy Unveils Fuelling Solutions In Omagwa
In line with its commitment to driving access to quality petroleum products, Asharami Synergy Limited, a leading Sahara Group downstream company, has said the public can now access exceptional fuelling solutions at its newly commissioned retail station in Omagwa, Rivers State.
Situated strategically along the Airport Road in Omagwa, the station, which features a storage capacity of 45,000 litres each for Automotive Gas Oil (AGO, also known as diesel) and Premium Motor Spirit (PMS, also known as petrol) is equipped with two pumps and four discharge nozzles for PMS and AGO.
The facility also has ample space for sundry services in a bid to ensure consumers get more “miles and smiles” as well as the energy to “go further” with Asharami’s world-class products.
“The Asharami Omagwa Retail Station is fully operational, offering a range of premium products and services. It’s a one-stop shop that also gives our esteemed customers eat-in and take-out restaurant services, shopping, as well as the Asha lubricants and Asha Service experience which will ensure premium care for all classes of automobiles and engines,” said Oladimeji Williams, Head, Government Relations and Business Development at Asharami Synergy.
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At the Commissioning, Willaims said the new station represents an important step in Asharami Synergy’s expansion plan aimed at reaching and serving more communities responsibly. “This station is strategically positioned close to the airport, serving as the gateway for powering socio-economic development in the community and those close to it, while enabling Asharami Synergy integrate all aspects of its downstream business towards ensuring efficiency and value for our customers,” he stated.
Williams commended the Federal Airport Authority of Nigeria (FAAN) and the Omagwa community leaders for their support and collaboration throughout the project’s duration, describing it as a “seamless and productive process that highlights Asharami’s corporate stewardship and social impact” in the community.
Similarly, Ifesinachi Ezike, Regional General Manager (South South), FAAN, emphasized the broader significance of the new station, stating, “This occasion marks a significant milestone not just for Asharami Synergy but for the airport and the entire community. It marks not just an opening of a new facility but the beginning of a renewed commitment to enhancing the travel experience of all our passengers and stakeholders”.
In a move that underscores its commitment to sustainability and community development, Asharami Synergy also commissioned a solar-powered borehole during the launch. The borehole is set to improve access to clean and reliable water for residents, marking a tangible contribution to the local community.
“At Sahara, we are always making a difference—not just through our business operations; we are unwavering in our commitment to driving sustainable development and building partnerships that enhance the well-being of our host communities,” Williams added.
Energy
Awards Galore For Shell, Staff At NAPE 2024 Conference
The Shell companies in Nigeria and staff won awards in recognition of their robust participation at the 42nd Annual International Conference and Exhibition of the National Association of Petroleum Explorationists (NAPE), held in Lagos.
At the closing dinner of the event, the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Ronald Adams pledged sustained efforts by the company to address “the Nigerian energy trilemma by powering progress towards energy security in a sustainable manner”.
On the awards, the Shell was declared Best Overall Exhibitor and Best Exhibiting Energy company (International) just as Geophysicist Somime Oguntola took home the Award of Excellence for Oral Paper (second place).
The icing on the cake was a Shell staff, Johnbosco Uche, being installed as the new President of the NAPE.
It was gathered that the Shell companies in Nigeria have supported NAPE since its founding in 1975, using the skills and expertise of the large pool of energy professionals in its employment to improve its activities especially educational and mentoring programmes.
In addition to being a major sponsor of the 2024 conference, Shell mounted a high-profile exhibition, featuring among other things, career counselling, engagements on Nigerian Content and Contractor development and panel sessions on Women in Industry and Sustainability Energy Challenge.
A highlight was the Shell medical stand which attended to more than more than 500 conference participants and members of the public over the four days of the annual event. The doctors and nurses offered a wide range of services including laboratory tests, deworming, medical consultation as well as ophthalmology checks and distribution of nearly 300 eyeglasses.
Adams referred to the operations of SNEPCo as an example of Shell’s contribution to energy security in Nigeria. “As a result of sustained production from Bonga, we have provided funds to finance development, created a new generation of Nigerian Deepwater professionals, empowered indigenous contractors and service providers, and implemented social investments that have touched lives in the six geo-political zones of the country,” he said.
Adams added, “SNEPCo and indeed Shell are in Nigeria for the long haul. Our commitment is reflected in both our current and growth plans, all of which are grounded in principles of safety, affordability, and competitive performance.”
Energy
Accugas Denies Culpability In Akwa Ibom’s Power Outage
Owing to the persistent power outage, which has crippled economic and social life in most parts of Akwa Ibom State and environs, Accugas Limited has washed its hands off the ugly situation.
This was contained in a statement under the signature of its Communications Manager, Okwudili Onyia, in which the company traced the anomaly to a “fault in the 132-KV Aba-Itu transmission line”.
To ameliorate the situation, the company maintained that “It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.”
In addition, the company pledged thus, “Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”
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The statement reads, “Accugas Limited, a subsidiary of Savannah Energy, wishes to strongly deny the misinformation concerning its alleged involvement in the current power outage in Akwa Ibom State.
“The power cut in Akwa Ibom State is entirely due to the reported fault in the 132-KV Aba-Itu transmission line, which, unfortunately, is preventing power being transmitted from the National Grid into the State. It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.
“Ibom Power Company (“IPC”) is one of 23 thermal power generation companies which channel power to the National Grid, which in turn disseminates all accumulated power to each State of the Federation through the electricity distribution companies (“Discos”). Indeed, Accugas supplies gas to enable c. 20% of Nigeria’s thermal generation capacity and, as such, is a critical enabler of the Nigerian economy.
“Within Akwa Ibom State, Accugas has been the sole supplier of gas to IPC since 2014 and, together with other Savannah subsidiaries, has invested over US$1.5 billion in gas development within the state. Furthermore, Savannah has recently invested c. US$45 million in a gas compression project at Accugas’ Uquo central processing facility at Esit Eket. Accugas’ commitments also extend to several social investment projects in the state. All the foregoing investments and projects, including other imminent investments Accugas intends to make in the State, demonstrate the Company’s long-term commitment to Akwa Ibom State and Nigeria.
“Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”