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Nigeria’s Next President Must Be Brave About Power Sector – CEO, Century Power

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By Edozie Obasi-Eze

The crisis-ridden power sector in Nigeria can be easily solved, only if the incoming administration would give the sector the kind of attention it deserves.

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Chief Executive Officer, Century Power Generation Limited, Dr Chukwueloka Umeh, expressed the opinion at an online interactive session with media men.

According to him, the next administration, in Nigeria must from its first day in office declare a national emergency on the power sector.

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Dr Umeh who also serves as an Executive Director of Nestoil Ltd as well as the CEO of Nesto Aviation Services Ltd., warned that the current problems in the sector would continue, or even get compounded, if the next government fails to deploy professionals to head the ministry of power and its agencies.

He observed that Nigeria’s power sector was beset with weak infrastructure, illiquidity as well as the issue of square pegs in round holes, leaving the country with over 200 million persons with just a meagre 4,000mw.

The former General Electric Company official noted with concern that while Egypt for example, with about half of Nigeria’s population is producing 57,000mw, while Nigeria continues to struggle to produce 4,000 megawatts. He described the situation as embarrassing and criminal.

In his words, “We should all hide our heads in shame as a country. Some years ago, Nigeria produced 5000mw and everybody was celebrating. I was like have these people lost their minds?”

Dr Umeh made it clear that whoever becomes the next Nigerian president must understand the critical importance of the sector, cut bureaucracy and free the sector from undue government interference, except in a regulatory role.

“It is my hope that whoever is the next president will understand that they need to do something drastically different. They need to be brave. They need to show political bravery and do the right thing.

“They need to remove government handouts from the industry and just have government as a regulator. The administration needs to make sure that the person in charge of the power industry is somebody that understands the industry.

“We don’t want just an administrator. We need somebody that clearly understands the industry, somebody like Prof Barth Nnaji who was the minister of power under Goodluck Jonathan; who is a player in the industry.

“He understood the industry well, and he had the motivation to make it work. So we need somebody like that running the industry. Whoever is the president next year, needs to treat this industry as an emergency. Which means they need to remove all the red tapes stopping things being done quickly,” he added.

According to the Aerospace Engineer, Nigeria should go beyond mere consultations, committees and conferences to the execution of the blueprint to revamp the sector.

“We need to quickly remove the government’s fingers from every part of the sector: Generation, transmission and distribution, and have those people who are not doing well either removed or they are set clear timelines for to fix the problem.

“The next administration needs to reduce the regulations that are barring new entrants from coming into the industry,” he added.

According to Dr Umeh, the Century Power Generation Limited has for years been pursuing a Power Purchase Agreement (PPA) with the Nigerian Bulk Electricity Trading Company Limited (NBET) without success despite the ready international funding for its project in the country.

“I can tell you today. We have spent about a year or more trying to get approval to move gas on the existing pipeline. It is one meeting after the other. This thing should take about two weeks to do. It is taking over a year and we go to meetings, you speak English, you generate minutes of meetings and reschedule for another one, just talking and wasting resources.

“So these things need to be made very quick. Remove all the red tape and allow us to do proper business. I tell people it is not rocket science, but even if it is rocket science, we have rocket scientists,” he maintained.

He pointed out that presently, “there are a lot of people in the industry who have no business being in the power industry because they don’t understand the sector.

“There are a lot of supposed experts that when you speak to them for five minutes, it becomes clear that they don’t really know much about the industry.”

In the short term, he disclosed that Century Power would keep pushing to have a power purchase agreement signed and executed by the government, while working on utility scale plants that may not be as large as the 1,500mw Okija power plant owned by the company.

“They are not quite as large as Okija plant. Just about 20 to 100 megawatts to supply directly industrial clusters and Discos, this is what we’ve been working on doing and to make it in such a way that it will be economically viable to us and to the off-takers,” he explained.

Energy

Nigeria’s Q1 Gas Production Increases to 687bscf, Flaring Drops 8%

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Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s gas production rose by about 3 percent in the first quarter of 2026, while gas flaring declined by over 8 percent year-on-year.

An analysis of the commission’s gas production status reports for the first three months of 2025 and 2026 revealed that total gas output increased from 667.27 Billion Standard Cubic Feet (BSCF) in Q1 2025 to 687.09 billion scf in Q1 2026.

The increase of approximately 19.81 billion standard cubic feet represented a year-on-year growth of about 2.97 percent, highlighting continued slow but steady expansion in Nigeria’s gas sector amid the federal government’s push to deepen gas utilisation and monetisation.

In addition, the NUPRC figures had it that January 2026 gas production stood at 233.96 billion scf, compared to 236.32 billion scf in January 2025.

However, production rebounded strongly in the subsequent months, with February 2026 output rising to 212.62 billion scf from 199.68 billion scf in February 2025.

In the same vein, March 2026 production climbed to 240.51 billion scf, compared to 231.28 billion scf recorded in March 2025, making it the highest monthly production level in the period under review.

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At the same time, the data showed marked improvement in gas flare management. Total gas flared in Q1 2025 stood at 50.95 billion scf, compared to 46.83 billion scf in Q1 2026. The reduction of about 4.12 billion scf translated to a decline of roughly 8.1 percent year-on-year.

Similarly, average flare intensity improved significantly during the period. The average gas flare rate dropped from about 7.65 percent in Q1 2025 to approximately 6.81 percent in Q1 2026, indicating that a larger proportion of produced gas was captured for productive use rather than burnt off.

In the same vein, monthly flare rates for Q1 2025 were 7.92 percent in January, 7.94 per cent in February and 7.08 percent in March. For Q1 2026, the flare rates declined to 7.34 percent in January, 6.62 percent in February and 6.48 percent in March.

The data also revealed a significant shift in the structure of Nigeria’s gas production. Associated gas production, which is gas produced alongside crude oil, declined during the review period.

Total associated gas output fell from 370.28 billion standard cubic feet in Q1 2025 to 332.82 billion standard cubic feet in Q1 2026. In contrast, non-associated gas production recorded substantial growth.

Non-associated gas output increased from 296.99 billion standard cubic feet in Q1 2025 to 354.17 billion standard cubic feet in Q1 2026, suggesting increased contribution from standalone gas projects and dedicated gas developments, rather than reliance on oil-linked gas production.

Also, export gas sales recorded one of the strongest improvements during the quarter. The NUPRC data showed that export gas sales rose from 223.99 billion standard cubic feet in Q1 2025 to 292.87 billion standard cubic feet in Q1 2026.

This represented an increase of about 68.89 billion standard cubic feet or approximately 30.75 percent year-on-year. Findings show that the increase was likely driven by stronger Liquefied Natural Gas (LNG) export performance and improved international demand for Nigerian gas supplies.

However, domestic gas sales weakened slightly during the same period. Domestic sales declined from 186.98 billion standard cubic feet in Q1 2025 to 171.15 billion standard cubic feet in Q1 2026, representing a drop of roughly 8.5 percent.

This raised concerns regarding the adequacy of gas supply to Nigeria’s domestic market, especially for power generation and industrial use. Despite the decline in domestic sales, gas utilisation efficiency improved marginally due to lower flare volumes.

The improved flare metrics suggested that operators were more efficient in capturing and commercialising produced gas. According to the data, total utilised gas stood at 639.91 billion scf in Q1 2025 and 639.68 billion scf in Q1 2026, indicating relatively stable utilisation volumes despite higher production.

With proven gas reserves estimated at about 215.19 trillion cubic feet (TCF), Nigeria has in recent years increasingly prioritised natural gas as a transition fuel capable of supporting domestic energy needs, industrial growth, petrochemical expansion and export earnings.

The federal government has also intensified efforts to reduce routine gas flaring through stricter regulatory enforcement and commercialisation initiatives targeted at flare gas recovery, especially through the Nigerian Gas Flare Commercialisation Programme (NGFCP).

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Energy

Renewed US-Iran Tensions Drag Oil Price Northwards

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After the United States carried out what it described as defensive strikes in southern Iran, which put fresh question marks over the fragile ceasefire and ongoing peace talks between Washington and Tehran, oil prices spiralled on Tuesday.

The world is taken aback because the strikes came in the midst of hopes that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

Consequently, from about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 percent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

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Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

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Energy

At 92% Completion, NLNG Train 7 Nears Pre-commissioning Phase

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The seventh gas liquefaction train of the Nigeria Liquefied Natural Gas (NLNG) Limited is on the verge of completion, having reached 92 percent of project stages.

The plant which aligns with existing trains at the company’s gas processing complex in Bonny Island, Rivers State, will propel Nigeria’s LNG production capacity with additional 8.0 million tons per annum (mtpa) from current 22 mtpa to 30 mpta upon completion.

Managing Director and Chief Executive Officer, NLNG, Adeleye Falade, made the revelation at a forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

According to him, the $7.0 billion project driven by Saipem, Chiyoda, Daewoo continues to enjoy broad support from the presidency and industry regulators.

In a presentation delivered on his behalf at the event, Falade stated that the project has so far consumed a significant 120 million man hours out of the target 200 million man hours of mostly indigenous labour.

He also declared that the company has enhanced all safety measures on the construction site after recording two lost time on injury (LTI) incidents. He assured that the project contractors are prioritizing workplace safety as the project drives to pre-commissioning stages.

Mr Falade, whose presentation was delivered by Train 7 Project Manager, Ali Uwais, also noted that the Train 7 project has helped galvanize local investment in steel fabrication and galvanizing capabilities, pointing at the 4000 tons of steel already deployed in the project.

He also pointed to the spur effect in the domestic cable manufacturing industry, stating that all cables used in the project are manufactured in Nigeria. He, however, added that additional interventions are required to close quality gaps in the local manufacturing industry.

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In noting the urgent need for in-country standard accountabilities, Mr Falade challenged agencies and regulators in the manufacturing industry to rise to the plate of ensuring international competitiveness on product quality.’

In counting some of the interventions driven by the company to close capacity and capability gaps in the domestic industry, he noted that the NLNG is relentless in establishing centers of excellence in tertiary institutions in the country with the purpose of addressing human capacity deficits.

The Train 7 project alone, he pointed out, has facilitated the training of 13,000 Nigerians, bolstered community focused participation initiatives, and facilitated rapid infrastructure development in the host Bonny Island.

Mr Falade told the industry audience at the event that the real value of the Train 7 project must transcend site activities to capture capacity, facilities and infrastructure developed for the project.

He called on other players in the industry to contribute to building capacity, standards and quality that compete globally, adding that Train 7 proves that Nigeria can grow and develop to global standards.

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