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Nigeria’s power minister condemns vandalization of energy infrastructure

Published

2 months ago

March 19, 2024

Adebayo Adelabu, Nigeria’s minister of power, has lamented the enormous amount of money lost as a result of vandals’ constant attacks on electricity infrastructure, where they blow up these facilities with explosives.

This occurred as the minister gave assurances regarding the government’s strategy to reduce debt (N2 trillion from gas providers and N1.3 trillion from GENCOs) and increase service delivery efficiency throughout the value chain.

The Minister expressed happiness with the utility company’s scorecard while being greeted by a group headed by Mrs Folake Soetan, Managing Director and Chief Executive Officer of Ikeja Electric.

“Let me start by congratulating you for the good job that you are doing here and in every district, you are still topping the list,” the Minister remarked during the formal visit to IE’s headquarters.

“I am bothered about what is happening. I am not discouraged by the sinking reputation of the power sector’s operators. I believe that this is the time that we can go around the operators to ensure that we do things differently.

“With my six months foray in this sector, I found out that achieving a stable, uninterrupted, functional, electric supply is not insurmountable. It is not as the issues are so simple. It is not rocket science. You know what to do, what to fix, what to get, and with time, you get significant improvements. It can start gradually.

He said: “There is a lack of funding in the sector, which has led to the issue of infrastructure deficit. Once, we have the money (which we are working on) and can pay for gas suppliers and generation debts, we will achieve an operational capacity of almost 8,000MW, as we have almost 13,000 installed capacity.

“On the infrastructure deficit, there is a need for the DISCOs to as a matter of urgency, drive more investment to the sector as certain infrastructure is needed to drive capacity. So, when you have an increased power supply, you should not be caught unaware.

On subsidy, Adelabu said: “We will not allow little or low investment in the sector, else it will be achieved by legislation. I am looking at capitalization requirements for DISCOs that will compel them to bring more funds. Because the power business is highly capital-intensive and requires lots of investment in infrastructure.

“But investment can never be lost; it always translates into revenue for sales and revenues for the investor. So, we believe that our Discos must be ready to invest in high-impact infrastructure.”

Since January of this year, the appalling state of the electricity supply has gotten worse as gas suppliers to gas-fired thermal power plants have stopped supplying the product to the plants because of the $1.3 billion in debt that the electricity-producing facilities owe.

Related Topics:Adebayo Adelabu Featured Nigeria's power minister

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Nigeria received $1bn tax income from Shell in 2023

Published

19 hours ago

May 8, 2024

Ifeoluwa Dada

Shell Nigeria, a multinational oil company, claims that through the operations of Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company of Nigeria Limited, it exclusively paid $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

According to the numbers released in the recently released 2023 Shell Briefing Notes, SNEPCo remitted $649 million, while the SPDC paid $442 million.

Similar payments made by the two firms in 2022 totalled $1.36 billion, according to a statement from Abimbola Essien-Nelson, the company’s manager of media relations.

“These payments are Shell exclusive and do not include those made by our partners,” said SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

Okunbor explained, “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

He continued by saying that Shell has been an investor in Nigeria for more than 60 years and that the Briefing Notes provide an update on the state of the companies’ operations in Nigeria for 2023, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power.

He claimed that the studies demonstrated how the businesses kept driving advancement, collaborating closely with communities and stakeholders to support socio-economic growth and offer more affordable, environmentally friendly energy options.

“It is important to emphasise that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses. Our collective focus remains on delivery of safe operations and care for our people,” Okunbor maintained.

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Zimbabwe’s new gold-backed currency now official unit of exchange

Published

1 day ago

May 7, 2024

Ifeoluwa Dada

Zimbabwe’s Treasury says that the newly introduced gold-backed currency is the official unit of exchange for transactions. It also stated on Tuesday that laws requiring businesses to utilize the official rate would be released soon.

The Zimbabwe Gold (ZiG) has been stable on the official market since its inception in early April, but it has had a shaky start on the black market, where dealers are demanding a premium of 65% of the official rate to purchase dollars.

Additionally, some stores are charging customers who pay in the new currency—while the ZiG is being rejected by informal traders—a premium over the market rate, which is fixed at ZiG 13.6 per US dollar.

“To ensure orderly pricing, the Government will soon be introducing the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services,” Finance Minister Mthuli Ncube said in a statement.

Since the ZiG’s inception, the government has been working to keep it afloat; this month, officials launched a campaign against unlicensed foreign exchange dealers.

Zimbabwe, located in southern Africa, abandoned the Zim dollar last month after it lost 70% of its value since the beginning of the year. This is the country’s fourth effort to introduce a local currency in ten years.