Business
Sahara Group urges human capital transformation in power sector
By Biztellers
Leading energy and infrastructure conglomerate, Sahara Group has said ramping up human capital capacity through investment in training, technology and artificial intelligence would enhance performance across the power sector value chain.
Speaking on the Group’s expansion plan, Kola Adesina, Executive Director Sahara Group said the company had through the expertise and commitment of its employees recorded significant achievements in the sector where it operates Egbin Power, the largest thermal plant in sub-Saharan Africa, Ikeja Electric, Nigeria’s largest distribution company, and First Independent Power Limited (FIPL).
Sahara Group through these entities contributes 25 per cent of power generated and distributed in Nigeria, making it the nation’s foremost power company.
Adesina explained that Sahara continues to rethink its human capital profile to adequately tackle challenges and optimize emerging opportunities, with emphasis on achieving generational knowledge transfer and birthing future solutions today through technology.
“One critical need in the sector today is that of ensuring we have the right people manning the machines, processes, operations, and stakeholder management. We also need our regulation and policy formulation to be top-notch. At Sahara, we have a nimble and disruptive approach to keeping our people agile and adaptable to unfolding trends. This is expressed through our Graduate Engineering Programs, foreign exchange programs for our employees, and various employee learning and development platforms that make our people operate at the highest level,” he said.
Adesina who is also Group Managing Director, Sahara Power Group (a member of the Sahara Group) said continuing investments in its power assets demonstrate Sahara’s dedication to bringing energy to life responsibly and making a difference in the sector.
“From strategic overhauls of our turbines to network upgrades; human capital transformation to technology-driven service delivery and an unwavering investment in environmental sustainability, Sahara Group remains committed to Nigeria’s power project, until we achieve uninterrupted power supply,” he said.
Adesina disclosed that Project Egbin 2.0, which involves doubling the capacity of power plant to shore up generation capacity would be achieved through a mix of alternative and sustainable energy sources to ensure availability of cleaner and more regular power in the nation.
“Sahara Group ventured into the power sector with a mission to make a difference. Beyond being the foremost power operator in Nigeria, our dream is to light up opportunities, homes, businesses, and dreams responsibly,” he said, adding: “We recently embarked on an overhaul project involving three of our units in Egbin, all of which led to the availability of all six (6) Units at the start of this year, ensuring full capacity at the plant for a sustained period.”
Also speaking, Chief Executive Officer, Egbin Power Plc. Mokhtar Bounour, said the company’s reward and recognition initiatives have continued to drive outstanding performance and innovation within the organisation.
“Our strategy is translated to an action plan where we empower our team members at all levels. We give them equal opportunity to take initiative which enables them to get rewarded for their performance. As you can see, Egbin Power Plc is not just a power plant. We work tirelessly towards making sure that the environment is safe, clean and the people are happy. And they go back safe to their families. They are also enjoying the hard work and delivering the power continuously to the grid with sustainability and responsibility,” he noted.
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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