Connect with us

Energy

Nigerian Govt Begins Disconnection Of Power Firms For Rule Non-Adherence

Published

on

 

The Nigerian Federal Government recently declared that it has begun the disconnection of some power firms from the national grid. This action is a result of the firms’ non-adherence to the Electricity Market Rules that govern the Nigeria Electricity Supply Industry (NESI).

 

The federal government emphasized that these rules were sacrosanct and must be complied with by all existing or new players in the sector.

 

The NESI is made up of electricity generation, transmission, and distribution companies that need to interact effectively to create the requisite harmony for growth, efficiency, and profitability of the sector. Therefore, the rules must be obeyed and upheld by all the players in the NESI.

 

According to the Market Operator, an arm of the Federal Government’s Transmission Company of Nigeria, Dr Edmund Eje said in a statement “Some of these rules are domiciled with the Market Operator, but today, adherence to the Market Rule is below expectation.

 

“Adherence to the Market Rule is below expectations, and market indiscipline is one of the major factors dealing a disastrous blow to the scalability and growth of the market.

 

“Market Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many. If the rules of every game are observed, there would be no need for sanctions.” He added.

Although the government did not name the affected power plants, it outlined the procedures being taken before suspending or disconnecting a power firm in the market.

 

Firstly, the notification of non-compliance would be issued, which has to do with when a participant violated the market rules or failed to pay amounts due to the Market Operator.

 

Secondly, a notice of intention to suspend would be sent if the participant fails to comply with the notification of non-compliance.

 

The notice of intention to suspend will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the suspension.

 

The third step is an opportunity for the participant to respond, where they will be allowed to respond to the notice of intention to suspend and provide reasons why the suspension should not be imposed.

 

Finally, if the participant still fails to comply with the notice of suspension, the Market Operator may escalate the suspension to the Commission for the Business Continuity Regulation to click in.

 

The government cautioned that some of the sanctioned players might attempt to politicize the action to score cheap points and whip up unnecessary sentiments, but people should be sensitive to the real issues, which are efficiency and survival of the NESI.

Energy

Renaissance, Sterling Bank Back Indigenous Oil and Gas Contractors Financially

Published

on

The appetite for improving access to capital for indigenous oil and gas contractors, strengthening the capacity of Nigerian businesses to execute critical energy projects and contribute to the country’s production ambitions, has seen the Renaissance Africa Energy Company Limited (‘Renaissance’) go into a strategic financing partnership with Sterling Bank Limited.

The partnership, formalised through a Memorandum of Understanding (MoU), brings Sterling Bank into the renewed Renaissance Vendor Financing Scheme (RVFS), a structured financing programme designed to address one of the longstanding challenges confronting indigenous service providers in Nigeria’s oil and gas industry: access to timely and affordable funding for contract execution.

READ ALSO: Group Demands Fair Share of NNPC Jobs for Ogoni Oil Exploration

The expanded programme brings together 13 financial institutions with combined financing commitments of $4.1 billion and ₦435 billion, creating a substantial pool of capital to support eligible contractors delivering projects for Renaissance, operator of the former Shell Petroleum Development Company (SPDC) joint venture assets.

Speaking on its participation, Dele Faseemo, Group Executive, Corporate and Investment Banking at Sterling Bank, described the partnership as an important opportunity to connect financial capacity with productive enterprise in one of Nigeria’s most strategically important sectors.

“At Sterling Bank, we believe financing should enable capable businesses to deliver, grow and compete. Our participation in the Renaissance Vendor Financing Scheme reflects that conviction. By providing structured funding to qualified contractors, we are supporting the businesses that keep the energy value chain moving, strengthening Nigerian content participation and contributing to the broader objective of increasing the country’s productive capacity,” Faseemo said.

For many indigenous contractors, securing a major contract represents only the first step towards business growth. The ability to mobilise equipment, procure materials, retain skilled personnel and meet demanding project timelines often depends on access to adequate working capital. Financing constraints can therefore limit the capacity of otherwise qualified businesses to execute contracts, scale their operations and participate more meaningfully in the energy value chain.

Through the RVFS, participating financial institutions will provide structured financing to eligible contractors against confirmed contracts awarded by Renaissance, subject to applicable credit assessment and approval processes. The arrangement is intended to ease funding pressures, improve project execution and strengthen the financial capacity of indigenous service providers.

Tony Attah, Managing Director and Chief Executive Officer of Renaissance Africa Energy Company Limited, highlighted the importance of the financing arrangement to the company’s growth ambitions.

“What we’ve been able to achieve as Renaissance is to go into that partnership with these incredible 13 banks who have come up to support this vendor scheme at over $4 billion and over ₦435 billion funds available for the vendors to be able to support us in our growth agenda,” Attah said.

He further emphasised the financial advantage the scheme offers participating contractors, noting that, “The interest rate that the banks are offering to the contractors is very competitive, and it is certainly better than the vendors going out to the respective banks on their own.”

The Renaissance Vendor Financing Scheme builds on a contractor financing programme established in 2010, which has evolved over the years to support local service providers executing projects across the oil and gas value chain. Its latest expansion comes as Renaissance pursues an ambitious growth strategy, including its aspiration to achieve production of one million barrels of oil equivalent per day by 2030.

Delivering on this ambition will require sustained investment not only in upstream production assets but also in the network of engineering firms, equipment suppliers, logistics providers, technical specialists and other indigenous businesses whose services are essential to operational performance.

With an established presence in corporate banking and energy sector financing, Sterling Bank continues to support businesses operating across critical segments of the Nigerian economy through tailored financial solutions, strategic partnerships and sector-specific expertise.

The collaboration reinforces the Bank’s commitment to supporting indigenous enterprise development, strengthening local capacity and financing productive economic activity, while contributing to efforts to improve Nigeria’s energy security and long-term industrial competitiveness.

Continue Reading

Energy

UNDC Assures on Readiness to Protect Oil, Gas Pipelines

Published

on

Pipeline contract

The Niger Delta Youths are primed to assume national responsibilities in critical areas of the economy by protecting vital oil and gas assets in the region.

The United Niger Delta Congress (UNDC) gave the assurance at a media briefing in Abuja, over the weekend, adding that the youths of Niger Delta were ready to work with the federal government in this regard.

The group maintained that youths in the region have shown that such responsibilities, including the security of pipelines, can be entrusted to them.

Speaking at the news conference, Niger Delta Youth activist, Mallam Julius Obi, said the Niger Delta is safer while the nation’s crude is flowing based on the fact that youths in the region are doing the job.

He said that being a youth should not be a disqualification from strategic national assignments but when matched with preparation and character, a national asset.

“We are calling on the federal government to note that Nigeria is full of young men and women who are prepared, disciplined and ready to carry out national responsibilities.

“We urge the federal government to keep opening the doors of strategic national service to young Nigerians who have earned trust the only way it can be earned, by delivery,” Obi said.

READ ALSO: JUST IN: Ex-Delta Governor Emmanuel Uduaghan Is Dead

The group commended President Bola Tinubu for sustaining the security reforms in the oil and gas industry and the the National Security Adviser (NSA), Mallam Nuhu Ribadu, for coordinating the protection of the nation’s pipelines, and the management of NNPCL for providing the enabling environment.

Continue Reading

Energy

Ambakederimo Questions NNPC Over Crude Oil Sales, Upfront Payments

Published

on

Joseph Ambakederimo, convener of the South-South Reawakening Group, has questioned the accountability of Nigeria’s crude oil forward sales, demanding clarification on the volume of crude lifted, outstanding balances and the use of upfront payments.

Speaking during an interview on Arise TV on Sunday, Ambakederimo expressed concern over the monitoring of crude oil transactions, questioning who was responsible for tracking deliveries and providing feedback on the arrangements.

“We don’t even know who is monitoring and giving us the feedback of the barrels of crude that have been lifted on forward sales basis,” he said.

SEE MORE: South-South Group Opposes Coastal Road Alignment With East-West Road

He challenged the Nigerian National Petroleum Company Limited (NNPC) to provide details of the transactions, including the quantity of crude already lifted, the outstanding balance and whether the agreed deliveries had been completed.

“Today, can we get this from NNPC? How much have they lifted? What is the balance remaining? Have they been completed?” he asked.

Ambakederimo also questioned how the money collected upfront under the arrangements had been spent, demanding an explanation of its use.

“That money that was collected upfront, what was the use of the money? Can you justify it?” he asked.

He argued that Nigeria should make better use of its natural resources to accelerate infrastructure development and improve living conditions.

Citing land reclamation projects in the United Arab Emirates, Ambakederimo said Nigeria could explore similar opportunities to create additional land for residential and other developments.

He recalled seeing a signpost while travelling from Dubai to Abu Dhabi describing a project to reclaim land from the sea, using the example to highlight the development possibilities he believes Nigeria could explore.

The South-South Reawakening Group convener also argued that Nigeria could reclaim land in suitable areas, provided environmental concerns were properly managed.

He called for the country to translate its natural resource wealth into infrastructure and improved living conditions, stressing the need for greater accountability in crude oil transactions.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x