Connect with us

Opinion/Feature

(OPINION) Power Source Diversification Not Risky Option

Published

on

(OPINION) Power Source Diversification Not Risky Option By Nnaji Jekwu Onovo

By Nnaji Jekwu Onovo

 

COP27 just like the ones before it, is sounding alarm bells for the end to the use of fossil fuels as energy and power sources. COP, acronym for “Conference of the Parties” which in turn is a short form of “United Nations Climate Change Conference of the Parties” under the watch of UNFCCC secretariat tasked with supporting the global response to the threat of climate change. The ultimate objective of all agreements under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame which allows ecosystems to adapt naturally and enables sustainable development.

Fossil fuels are the greatest contributors to the threat of climate change; so the world is uniting to stop their applications; embracing cleaner renewable energies, SUN, WIND and HYDRO. What is Nigeria’s position vis-à-vis our abundance deposit of fossil fuels including natural gas? Nigeria is a country plagued by complex overlapping challenges, including Dutch Disease (resource curse). This informs the country’s inability to harness our abundant natural gas resource for power generation. Worst is that about 80% of our foreign exchange earnings is from oil and gas sales. So, the idea of world pivoting away from fossil fuels is unsettling us. We should not be in panic mode, and must avoid making irrational decisions.

President Muhammadu Buhari has said Nigeria would explore nuclear energy to generate electricity. The President spoke at the just concluded International Ministerial Conference on Nuclear Power in the 21st Century held in Washington DC; between 26 and 28 October 2022 few days before the start of COP27 at Sharm El-Sheikh, Egypt on 6th November 2022. Buhari, who spoke through the Minister of Science, Technology and Innovation, Sen. Adeleke Mamora, said like most other nations on the continent, Nigeria, with a population of over 200 million people, had a serious energy supply deficit, making it compelling for the government to critically look towards other energy options that were affordable, more environmentally friendly and sustainable.

While Nigeria should aim for diversity in its power sources, nuclear power plants are very expensive to construct and fraught with serious risks; diversification does not start with the most expensive and risky option. There is no perfect energy source. Each and every one has its own advantages and compromises. Nuclear power is once again considered a prominent alternative, because it’s now being touted as a more environmentally beneficial solution since it emits far fewer greenhouse gases during electricity generation than coal or other fossil fuel (including gas) burning power plants. Radiation isn’t easily dealt with, especially in nuclear waste and maintenance materials, and expensive solutions are needed to contain, control, and shield both people and the environment from its harm.

In several respects, nuclear and fossil fuel-burning power plants are similar; they both use heat to generate steam and drive turbines to produce electricity. They mainly differ in where their heat comes from; a nuclear reactor uses radioactive decay, and a fossil-fuel plant burns coal, oil or natural gas. In addition to the technical differences between the two approaches, they affect the environment differently: Fossil-fuel plants are notorious for greenhouse gas emissions, whereas nuclear reactors are known for radioactive waste.

All utility scale nuclear power plants simply use the reactor as a “nuclear boiler” to raise the steam which is then used to drive conventional steam turbine powered generators using the Rankine Steam cycle in much the same way as the fossil fuel. Instead of burning fossil fuel to provide the heat source in the boiler, heat is generated in a nuclear reactor by the controlled nuclear fission of unstable isotopes of heavy metals such as uranium.

Back in the 1950s, nuclear power held out the promise of abundant electricity “too cheap to meter,” or almost free. But today, utilities are encountering something they never expected: Natural-gas-fired power plants are cheaper to run than nuclear units. Nigeria is arguably a gas-resource country with huge gas reserves. It has proven gas reserves of about 184tcf broken into 95tcf associated gas and 89tcf non-associated gas and estimated as the world’s 7th largest gas reserves. What is the quantity of our uranium deposit, as major feedstock to nuclear power plants? A nuclear power station is resource-hungry and, apart from the fuel, uses many rare metals in its construction. One nuclear reactor plant requires about 20.5 km2 (7.9 mi2) of land to accommodate the nuclear power station itself, its exclusion zone, its enrichment plant, ore processing, and supporting infrastructure. Secondly, nuclear reactors need to be located near a massive body of coolant water, but away from dense population zones and natural disaster zones. We are better off investing in other energy solutions that are truly scalable, especially gas-powered plants.

It is pertinent to note that the developed economies sponsoring COPs are playing double standard and are not quite keen at abandoning fossil fuels. Europe includes natural gas and nuclear in the E.U.’s sustainable energy taxonomy. Europe’s taxonomy is its classification system for defining “environmentally sustainable economic activities” for investors, policymakers and companies. Two of the largest emitters, China and India, plan to increase emissions until 2030. They’ve argued that their growing economies need the support of fossil fuels, as other wealthier countries have historically done. Nigeria should therefore make the most of what we have, natural gas, to get what we want, steady power supply.

We require a solution with a very short lead time, in order to meet our electricity needs and the most viable is natural gas powered plants. The technology is being used extensively all over the world and is readily available. Stations could be erected, depending on required capacity, in a lead time of 1 – 3 years as opposed to the nuclear stations that require 6 – 8 years lead time.

By and large, we should embrace other renewable and sustainable energy, especially, SUN, WIND and HYDRO. In the words of Thomas Alva Edison: “We are like tenant farmers chopping down the fence around our house for fuel when we should be using Nature’s inexhaustible sources of energy – sun, wind and tide. — I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait until oil and coal run out before we tackle that.”

Opinion/Feature

Downstream Deregulation: Between Obasanjo’s Half-measures And Tinubu’s Bold Leadership

Published

on

By Temitope Ajayi
A video of former President Olusegun Obasanjo’s interview with News Central Television has been trending on social media platforms for the past week. In the interview, the former President, in a veiled reference to the current administration, said Nigeria has a President who came into office without a plan. Yet, the same ‘planless’ president is implementing a bold economic reform programme that Obasanjo initiated and abandoned mid-way.
This intervention is essentially about a tale of two leaders and how they both handled fuel subsidy removal, a very touchy issue every president of Nigeria has avoided since 1973 because of its disruptive nature and potential to precipitate a pushback that may lead to civil unrest. This serious matter in itself can make a difference between a bold and courageous leader from one that is pretentious and hesitant.
It is a fact of history that one of the things former President Obasanjo set out to do, among other reforms his administration embarked upon, was complete deregulation of the downstream oil industry. But hard as he tried, he failed to actualise it. Obasanjo faced so much opposition from organised labour and civil society groups that he abandoned a good policy that would have led to massive economic gains for the country. All he could muster the courage to do was to raise the pump price four times during his two-term tenure.
Twenty years after Obasanjo failed to implement complete downstream deregulation, President Bola Tinubu had the courage of his conviction to implement the policy, redirect the economy, and ensure efficiency in the management of public finance.
Despite his foibles and messianic complex, former President Obasanjo is no doubt a remarkable leader. His administration opened the economy and implemented essential reforms that his immediate successor should have continued with. What most critics find offensive about the former president is how he sees himself as the only saviour God created for Nigeria. As far as he is concerned, no other leader before and after him has been good enough. For context and clarity, it is essential to recall the former president’s position on deregulating the downstream oil sector when he was in charge.
In a national broadcast on October 8, 2003, President Obasanjo expressed his frustration and anger at the Nigeria Labour Congress for its opposition to the deregulation of the downstream sector to the point of accusing labour leaders of sedition thus:
“As you are aware, my government has embarked on fundamental reforms designed to depart from the waste and unproductive exercises of the past and leave lasting legacies for the prosperity and improved welfare and well-being of all Nigerians. Since 1999, we have gradually but steadily embarked on the programme of liberalisation and deregulation of the Nigerian economy to promote efficiency and effectiveness of service delivery. Most Nigerians and certainly all organised key stakeholders in the Nigerian economy, including the Nigeria Labour Congress, have endorsed the deregulation programme of government.
“It is a fitting symbol of our administration’s commitment to the welfare of workers and in an effort to cushion the effects of deregulation that the government provided 80 buses to the NLC in 2002. The transliner buses were delivered to the Congress for management without government interference. It is noteworthy that every step taken to deregulate the downstream oil sector has been dogged by, sometimes, irresponsible opposition by the Labour Congress. The result has been that we took too little steps to achieve no meaningful and satisfactory progress. We have tolerated all of these in the interest of promoting popular dialogue and informed dissent.
“Let me inform Nigerians that when government first came up with the deregulation programme, it was endorsed by the NLC and other stakeholders. In fact, the NLC had requested that we call it a “liberalisation” programme. It was thus more a matter of label than of substance. If we had been successful in implementing the deregulation or liberalisation of the downstream oil sector as earlier agreed by all stakeholders, including labour, we would not have been worrying about the periodic and unsatisfactory price-fixing which has led no where except to frustration. The failure to fully deregulate or liberalise has also cost Nigerians billions of naira which are currently wasted on millions of man-hours in queues at the petrol stations.
“The tens of billions of naira currently being lost in money that could have been used to increase capital spending in the universities, fund agriculture, repair and rehabilitate our roads, invest in education and health, improve security with extra police for security of lives and property.
“Realising that the investment of well over $400 million (excluding pipelines and depots) in the last six years mostly on Turn Around Maintenance (TAM) and repairs had not improved the performance of the refineries significantly, government had decided that it was unwise to put additional money into the repair of the Kaduna and Port Harcourt refineries before privatising them.
“What most Nigerians must know is that the contracts for the Turn Around Maintenance for the Kaduna and Port Harcourt refineries were awarded with 50% of the cost paid upfront before the advent of this administration in 1999. Allow me to add that two of the three refinery locations in the country today, were built by my administration as military head of state. This means that if for no other reason, I should be interested in keeping them working. Already, 18 private firms have been licensed to build refineries but they have been reluctant to go into the industry because of Government’s price control in the sector.
“If only 30% of these firms had been able to establish and operate private refineries, thousands of jobs would have been created and Nigeria would have been in a position to even export refined oil products. All these benefits and more have been denied to Nigerians by the stop-go approach to the deregulation or liberalisation programme, and only a few Nigerians are benefiting from the prevailing government-controlled system. In fact, the NLC’s approach has been counter-productive, and inflicted more pains on Nigerian workers. Each time there is a small increase of three naira or more, transporters have used the opportunity to jerk up transportation cost thereby making the ordinary worker poorer.
“A once-and-for-all total deregulation would have meant a once-and-for-all increase in transport cost and the pump price for petroleum products. Without a doubt, a once-and-for-all total deregulation would have resolved the problem of availability and thus bring down prices for those outside Abuja, Lagos, Port Harcourt and their environs who have always paid much more than the official posted price. Pump prices arising from the present total deregulation would, in reality, amount to a reduction in prices of majority of Nigerians.”
Interestingly, excerpts from the 2003 national broadcast by President Obasanjo present a contrast between the former leader and President Tinubu. They also showcase two leadership visions. One leader saw the need to fight for the country’s long-term sustainability but chickened out because he lacked the courage to upset the status quo. Two decades later, another leader saw the damage the failure to make the right economic decision had caused the country. He decided to correct it to avert a looming calamity. While former President Obasanjo left the most challenging task of his presidency undone, President Tinubu tackled head-on what has become an existential threat to our collective well-being from his first day in office. He has remained focused on the bigger picture.
President Tinubu recognises the burden of leadership and responsibility he bears on behalf of Nigerians. In discharging this burden, he knew from day one that he would have to make the right but unpopular decisions that would ultimately serve the best interest of the country and her people.
It is certainly not correct to say this president came to the office without a plan. President Tinubu came into the office with a clear plan titled “Renewed Hope 2023: Action Plan for a Better Nigeria.” It was a well-thought-out programme, with which he canvassed for votes across the country and was elected by our people.
In the past 17 months, he has remained faithful to the document as he implements the distilled eight-point agenda.
At the heart of President Tinubu’s economic revitalisation is gas development and expansion of gas pipeline infrastructure to enable Nigeria to compete with Russia in the European markets. In fairness to him, former President Obasanjo himself recently lamented he did not pay adequate attention to gas during his term of office.
Expanding the pool of available talents and human capital through granting of loans to young Nigerians who are the future of the country to enable them acquire tertiary or vocational education is part of the plans that propelled Tinubu into office. Consumer credit initiative that will promote local production and further stimulate the economy is also high on Tinubu’s action plan. To the President’s credit, these two important policy initiatives among several others are being implemented through NELFUND and Nigerian Consumer Credit Corporation (CrediCorp).
If there is one President of Nigeria that came prepared and well armed with a clear cut plan to reposition the country across sectors for better outcomes, that President, undoubtedly, is President Bola Ahmed Tinubu.
-Ajayi is Senior Special Assistant to President Tinubu on Media and Publicity
Continue Reading

Opinion/Feature

UNCOMMON SCHOLAR, EXCEPTIONAL ADMINISTRATOR: MY TRIBUTE TO PROF. OLOYEDE AT 70

Published

on

 

By President Bola Tinubu

As Professor Ishaq Oloyede turns 70 tomorrow, October 10, I pay a special tribute to this astute administrator, educator, author, and scholar, currently the Joint Admissions and Matriculation Board (JAMB) Registrar.

As the former Vice Chancellor of the University of Ilorin, Prof. Oloyede’s invaluable contributions to the nation through academia and public-sector administration have significantly impacted the academic community.

ALSO READ: Tinubu Congratulates Zainab Shinkafi-Bagudu On Her Election As President, UICC

His impactful tenure at the University of Ilorin, during which he introduced landmark ideas and innovations that helped the institution attain enviable heights, is on record.

Through patriotic dedication and commitment to his craft, Prof Oloyede imparted knowledge and character to thousands of students who underwent his teaching during his glorious and impactful academic career.

Indeed, the bedrock of development lies in education. Developing nations, including Nigeria, are in dire need of more scholars like Prof. Oloyede. His selfless sacrifices and innovative approaches to learning and leadership give hope for a brighter future.

Perhaps more remarkable is Prof. Oloyede’s transformative leadership at JAMB. He pioneered and sustained a series of reforms and technological innovations that have made the admission process in Nigeria transparent and credible.

In his eight years of stewardship at the board, thus far, Prof. Oloyede has demonstrated an uncommon commitment to financial integrity and accountability in public service. He has also raised the bar in administration and management.

I am proud of Prof. Oloyede’s accomplishments.

The nation owes the Professor of Islamic Jurisprudence a debt of gratitude for transforming JAMB, traditionally a non-revenue-generating government agency, into a consistent contributor to the national treasury through efficient financial management. His contributions to JAMB are invaluable and greatly appreciated.

On this occasion of his 70th birthday, I join members of the academic community, students, JAMB staff, and well-wishers in celebrating this scholar who, in words and deeds, has also done a lot to propagate the Islamic religion.

I pray that Almighty Allah will continue to honour the distinguished professor with health, wisdom and strength to serve the nation for many more years.

Continue Reading

Opinion/Feature

Clarification On NNPCL Refinery Operations

Published

on

 

By Sen. Heineken Lokpobiri PhD

My attention has been drawn to statements made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented me at a recent conference in Lagos. I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false. This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.

It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL, as it operates independently like any corporate entity.

ALSO READ: NNPC/Seplat JV’s “Eye Can See” Programme Restores Vision, Hope In Imo

The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.

I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability.

Sen. Heineken Lokpobiri PhD, Minister of State Petroleum Resources (Oil), wrote from Abuja, Nigeria

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.