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NNPC Ltd Using Fuel Subsidy Savings To Stabilize Pump Prices – Bagudu

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Abubakar Bagudu, the Minister of Budget and National Planning, has clarified that the Nigerian National Petroleum CoCorporation Limited (NNPC Ltd) is utilizing savings from the fuel subsidy to keep the current pump price steady.

In an interview with Channels Television on Saturday, Bagudu noted that the 2024 budget does not include provisions for fuel subsidy.

He explained that since the removal of the fuel subsidy in June 2024, the savings have been insufficient to cover the cost of fuel imports, which has affected NNPCL’s ability to maintain energy security.

Read Also: JUST IN: President Tinubu To Address The Nation On August 4

This situation arises amid continued uncertainties regarding the government’s fuel subsidy payments, despite the subsidy’s removal in June 2023, which caused the pump price to surge from N238 to more than N600 per liter.

He said, “That is the issue. If NNPCL is supposed to contribute the most it cannot contribute because I have to use the money to import fuel. NNPCL is obligated to provide energy security. Consequently what they are to provide is affected,”

Bagudu also addressed the ongoing #EndBadGovernance protests, which call for the reinstatement of the fuel subsidy, and assured that the government is attentive to public concerns and implementing necessary reforms.

He also mentioned that he is unaware of any funds being remitted by NNPCL to the Federal Government, noting that this information would typically be known by the Accountant-General.

“I am not aware. Not necessarily, the Accountant-General should know. I will be surprised if they have done so. Let’s face it, you told somebody to import fuel and he says the cost of import is higher than the cost of the product being sold.

“We have the NNPCL, the Petroleum Industry Act makes its private liability company and at the same time mandated it with energy security. So only NNPCL can say this is the price fuel is arriving in Nigeria.

“And if it is selling below that price, then obviously it is an NNPCL issue. It means it is NNPCL that is taking the loss. We don’t have the provision for fuel subsidy. That is not to say that NNPCL is not suffering a loss as a result of the difference between the landing cost and what it is being sold, he added.

He maintained that “President Tinubu is listening to Nigerians so that we do things differently.

Energy

Minister of Power, Adelabu Champions Mini-Grids Amid Northern Power Crisis

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In the wake of a prolonged power crisis impacting Northern Nigeria, Minister of Power Adebayo Adelabu visited the Zawaciki 1MWp mini-grid project in Kano, underscoring the potential of decentralized renewable energy solutions to alleviate regional power shortages.

The project, operated by Bagaja Renewables, provides daytime electricity to the Gida Dubu community, offering a vital source of power as the region faces widespread blackouts.

READ MORE: BREAKING: NPF Arraigns VDM Over Impersonation

Sadiq Zakari, Managing Director of Bagaja Renewables, welcomed the Minister to the facility and highlighted the critical timing of the visit.

“Bagaja Renewables had the distinct honor of welcoming the Honorable Minister of Power to the Zawaciki 1MWp interconnected mini-grid,” Zakari said.

“This visit comes at a critical time, as Northern Nigeria endures a prolonged blackout, underscoring the urgent need for alternative power solutions.

The Zawaciki mini-grid has been instrumental during this crisis, providing at least 9 hours of daytime electricity to the Gida Dubu community, demonstrating the potential of renewable energy in addressing the region’s energy needs.”

Minister Adelabu praised the Zawaciki project as a model for interconnected mini-grids nationwide, noting its role as a sustainable solution for communities grappling with unreliable power supply.

“The Honorable Minister expressed admiration for the Zawaciki project, recognizing it as a viable proof of concept for interconnected mini-grids across Nigeria,” Zakari stated.

“He emphasized the importance of such initiatives and called on state governors and other key stakeholders to support efforts to decentralize and strengthen the nation’s power infrastructure.

By backing projects like Zawaciki, stakeholders can play an instrumental role in reducing reliance on the national grid and ensuring a more stable power supply for local communities.”

Zakari underscored the transformative potential of private-sector renewable energy projects in Nigeria’s power landscape.

He said, “As we have witnessed here at Zawaciki, private-sector-driven renewable energy solutions can transform Nigeria’s energy landscape. With the right policies and support, we can empower communities and enhance energy resilience, even in times of national power instability.”

In addition to the Zawaciki project, Bagaja Renewables is developing several renewable energy initiatives across Northern Nigeria. Among these are:

Barhim Estate, Katsina: A residential power initiative aimed at expanding energy access for households in the region.

Kura-Karfi Commercial Cluster, Kano: Focused on delivering clean and reliable power to commercial areas, this project aims to support local businesses and stimulate economic growth.

Kafin Hausa, Jigawa: With site fencing completed, Bagaja Renewables is preparing to begin technical design and engineering work for a mini-grid in Kafin Hausa, slated to start construction soon.

Zakari said, “These projects represent Bagaja Renewables’ unwavering commitment to building a resilient, decentralized, and renewable-powered energy future across Northern Nigeria.

“Bagaja Renewables is dedicated to collaborating with the government and stakeholders to scale up renewable energy solutions that will support communities, industries, and essential services.

“We believe that decentralized power generation is the future for Nigeria, and we are eager to contribute to a sustainable, reliable, and inclusive energy system for all.” he added

 

 

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Power Restored In Four Northern States After 10-Day Blackout

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Power has been restored across Plateau, Bauchi, Gombe, and Benue States, bringing relief to residents who endured a 10-day blackout.

The Jos Electricity Distribution Company confirmed that electricity was reinstated around 7:20 p.m. on Wednesday, prompting celebrations in Jos, the Plateau State capital, and other affected areas.

READ ALSO: JUST IN: Tinubu Appoints Major General Oluyede As Acting Chief of Army Staff

The prolonged outage was caused by the tripping of a major 330kV transmission line between Benue and Enugu states, leaving several northern states without power.

The blackout severely impacted daily life and economic activities, with residents expressing frustration over the disruption to businesses, healthcare services, and personal livelihoods.

In response, President Bola Tinubu took swift action, summoning Minister of Power Adebayo Adelabu and National Security Adviser Nuhu Ribadu to address the crisis.

Presidential Adviser Bayo Onanuga disclosed on Monday that President Tinubu directed the Ministry of Power and relevant agencies to expedite restoration efforts.

“President Tinubu is deeply concerned about the reports of vandalism and deliberate destruction of essential power infrastructure,” Onanuga said in a statement.

“The President has tasked TCN engineers with bringing immediate relief to the affected states and implementing a long-term solution to prevent future outages.”

 

 

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Energy

Nigerian Power Supply: FGN Nears PPI Completion

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The Federal Government of Nigeria Power Company (FGN Power Company) has announced significant progress in the pilot phase of the Presidential Power Initiative (PPI), which is set to revolutionize the nation’s electricity transmission landscape.

The initiative, in partnership with Siemens, aims to enhance the country’s power infrastructure through the deployment of advanced technology and equipment.

READ MORE: ‘Only Savior Created By God For Nigeria’ – Presidency Slams Obasanjo

Kenny Anuwe, the Managing Director and CEO of FGN Power Company, revealed that the installation and commissioning of eight power transformers across key locations are now complete.

The transformers have been successfully deployed in Ajah, Maryland, Apo, Okene, Ihovbor, Amukpe, Potiskum, and Birnin Kebbi, resulting in a notable increase in the transmission wheeling capacity by 569.6 megawatts (MW).

In addition to the transformers, three mobile substations are operational in Ajah, Jebba, and Kawnar Dangora, further boosting the transmission capacity by an additional 151.2 MW.

Anuwe emphasized that these enhancements are pivotal in addressing the energy needs of the country and supporting economic growth.

Looking ahead, Anuwe stated that the transmission network will be augmented by an impressive 720.8 MW, with plans to commission the remaining equipment to deliver at least another 500 MW by the end of 2024.

This strategic initiative is expected to significantly improve power distribution and reliability, marking a transformative step towards a more robust energy sector in Nigeria.

 

 

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