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Nigeria’s power generation hits 3-year high of 5,105MW— Minister

Published

2 months ago

August 8, 2024

Adebayo Adelabu, the Minister of Power, has said that Nigeria’s power industry produced 5,105 megawatts of electricity on July 27, 2024, marking its highest level in three years.

Adelabu made this announcement during the first meeting of the Inter-Ministerial Power Sector Working Group in Abuja on Wednesday. The minister emphasized the recent accomplishments and future objectives of the electricity sector, stating that on July 27, a record-breaking 5,105MW of power was generated and transmitted, marking the greatest level achieved in the past three years. This represents an enhancement from the former capability, which was approximately 4,000MW or lower.

“Our target is to achieve a landmark generation and transmission of 6,000MW by December.”

To maximize the economic potential of Nigeria’s power industry, the ministers at the meeting advocated for enhanced collaboration across all ministries and sectors and underlined the sector’s critical role in promoting economic growth and industrialisation, coinciding with President Bola Tinubu’s vision.

Adelabu underlined the significance of inter-ministerial collaboration to attain these objectives, stressing that “power is not something that should be left alone to the Ministry of Power and its agencies. There are many supportive ministries without which we cannot achieve our mandate.”

According to him, the power ministry is collaborating closely with the Ministries of Environment, Water Resources and Sanitation, Budget and Planning, and Petroleum Resources, specifically with the Minister of State (Gas), Ekperikpe Ekpo.

Joseph Utsev, the Minister of Water Resources and Sanitation, had the same opinion, “The Ministry of Water Resources and the Ministry of Power are like brothers and sisters. We will do everything possible to work together to achieve the renewable energy agenda of the President in making life better for Nigerians.”

Adelabu emphasized the importance of renewable energy sources in meeting the demand for sustainable energy solutions.

“We are focusing on generating power in a sustainable and environment-friendly manner. This is why we talk about renewables, through solar, wind, and small dams,” he said.

The Minister of Environment, represented by Minister of State, Iziaq Salako, highlighted the ecological consequences of power generation and underscored the significance of effectively handling the trash produced during this process.

“As we go ahead to develop our power sector, we are also developing a process to manage the waste that will come out,” he said.

Adelabu specified the scope of responsibilities for the working group, which encompass the implementation of smooth liquidity and financing in the power sector, offering guidance on the governance structure of electricity distribution companies, and prioritizing the energy transition program to attain net zero emissions by 2060.

According to the minister, the coordinated efforts aim to enhance both power generation and delivery, while also ensuring that homes, businesses, and industries throughout the country benefit from these improvements.

Nigeria suffered its worst electricity supply late last year but the poor situation has relatively improved but the capacity deficit remains for one of Africa’s largest economies.

Related Topics:Electricity cost Featured Nigeria

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Egypt reduces 2040 renewable energy target to 40%, prioritises natural gas

Published

1 day ago

October 20, 2024

Ifeoluwa Dada

Petroleum Minister Karim Badawi announced on Sunday that Egypt had reduced its 2040 renewable energy target down from a previous goal of 58% to 40%, highlighting the fact that natural gas will continue to play a significant role in the nation’s energy mix for years to come.

Egypt promised to increase the percentage of renewable energy output in its energy mix to 42% by 2035 before hosting the COP27 climate meeting in 2022.

Later, the aim was advanced to 2030. Mohamed Shaker, the then-minister of electricity, unveiled a bold proposal in June 2024 to increase this to 58% by 2040; however, that goal has since been abandoned.

“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said in the opening session of the Mediterranean Energy Conference 2024.

Egypt’s persistent dependence on fossil fuels coincides with efforts to regain the confidence of international oil companies, whose domestic activities ceased due to a shortage of hard currency that put the nation in debt to the tune of billions of dollars.

Since entering office in July, Badawi has met with many foreign energy corporations, such as Eni of Italy, which intends to increase production in Egypt’s largest gas field, Zohr, by digging additional wells in early 2025.

At its peak of 3.2 billion cubic feet per day (bcf/d) in 2019, Zohr’s gas output allowed the nation to turn a profit.

However, by early 2024, output had dropped to 1.9 bcf/d, forcing Egypt to import more gas through a pipeline connecting it to Israel and more LNG to avoid a months-long load-shedding program.

Additionally, Egypt imports fuel oil that contains sulphur; in September, imports reached a record-breaking 255,000 barrels per day (bpd), the highest level since at least 2016.

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Nigerian govt imposes 5% tax on telecom, betting services

Published

2 days ago

October 20, 2024

Ifeoluwa Dada

As part of a new plan to restructure the nation’s tax system, the Nigerian government has proposed a 5% excise fee on gaming and betting operations, and telecom services.

The bill was obtained from the National Assembly on October 4, 2024. It was titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.”

The goal of the new legislation, according to an examination of it on Friday, is to impose excise taxes on services like betting, lotteries, gaming, and telecoms that are offered in Nigeria.

According to a portion of the bill, the amount of an excisable transaction is the amount that the service provider charges for the service, expressed in both money and money’s worth.

“Services, including telecommunications, gaming, gambling, betting, and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.”

Telecom services, including postpaid and prepaid services governed by the Nigerian Communications Commission, will be subject to a 5% charge, according to a breakdown of the excise duty structure in the law.

Lottery services, gaming, gambling, and betting will all be charged at the same rate.

The bill also establishes criteria for currency transactions, stating that excise duty will apply to any discrepancy between the actual transaction rate and the current Central Bank of Nigeria exchange rate.

Part of the government’s plan to increase non-oil revenue in the face of budgetary challenges is the new tax structure.

Authorities are trying to increase their revenue base because to the telecom and gambling industries’ explosive growth.

Additionally, the measure seeks to guarantee that currency trades match official CBN rates, with any discrepancy subject to excise duty under a model of self-assessment.