Thursday, 4 February 2021

LAPO advocates cancer treatment support for poor Nigerians


A Non-Governmental Organisation, Lift Above Poverty Organisation (LAPO) has called on both the Federal and State Governments to provide cancer treatment support for indigent individuals due to the high cost of managing and treating the ailment.

Mr Honestus Obadiora, Executive Director, LAPO NGO, made the call on Thursday during a sensitisation and awarenesses rally organised by LAPO in Igando area of Lagos State.

Obadiora, represented by Mrs Sandra Asowata, Head, LAPO NGO, Western Region, said the awareness, which was centered on Cervical, Breast and Prostrate Cancer was part of activities to mark the 2021 World Cancer Day.

Obadiora noted that LAPO was committed to the empowerment of poor and vulnerable people in Nigeria through the implementation of innovative financial and non-financial development programmes.

According to him, the organisation believes that poverty is further reinforced by diseases and vice versa and has therefore been involved in community health improvement across the country.

"As a development organisation, LAPO is concerned that cancer is now a major cause of morbidity and mortality in Nigeria with over 100,000 persons diagnosed every year of which about 80% die due to late detection. 

”Globally, 9.6 million people die from cancer every year even though over 80 per cent of cancer cases are preventable with early detection while 40 per cent of the disease can be eradicated by lifestyle changes.

"In 2016, the LAPO Community Campaign for Cancer Control (LAPO-C4) project was initiated by the Founder towards preventing and mitigating cancer-related deaths in Nigeria. 

”The main focus of the project is mass awareness creation, basic screening services for detection of pre-malignant conditions and building referral linkages for uptake of medical services," he said.

Obadiora said the project was being implemented in collaboration with six Community-Based Organisations across Lagos, Edo, Imo, Abuja and Rivers State.  

He said  between November 2016 and December 2020, LAPO created mass awareness about cancer in target communities across the country under the LAPO-C4 project.

The executive director said the organisation sensitised 83,405,597 community members against cancer, screened 38,595 persons and referred 26,215 for further screening and treatment in government-approved health facilities. 

He said: ”World Cancer Day aims to save millions of preventable deaths each year by raising awareness and education about cancer, and pressing governments and individuals across the world to take action against the disease. 

"The need for improved access to basic cancer screening services across the country cannot be overemphasised. 

"The best approach is the integration of cancer control services, including the inclusion of the Human Papillomavirus (HPV) vaccine in the routine immunisation schedule at Primary Health Care Centres in accordance with the 2018 - 2020 Nigeria National Cancer Control Plan (NCCP). 

”We are also advocating for a government policy on cancer treatment support for indigent individuals considering the enormous financial burden of managing the ailment in Nigeria. 

”We appeal to well-meaning individuals and corporate organisations to support LAPO in the implementation of cancer prevention and Maternal and Child Health projects in the country. We need your commitment to create a cancer-free world. ” (NAN)



Wednesday, 3 February 2021

DPR clarifies crude accounting process

The Department of Petroleum Resources (DPR) has clarified the process it uses for accounting for crude production in the country.

The agency disclosed that most incidents relating to oil theft occurs from the land terminals.

A statement issued on Thursday in Lagos by Mr Paul Osu, Head, Public Affairs, DPR, said Mr Sarki Auwalu, Director, DPR made the clarification while speaking before the House of Representatives Ad-hoc Committee on Oil Theft in Abuja.

Auwalu told the committee chaired by Hon. Peter Akpatason, that the DPR was the agency of government saddled with the responsibility of monitoring crude oil production and lifting.

He said: I will like to use this opportunity to give a brief on how we account for hydrocarbon in this nation.

”I think that will provide a better view for this committee as well as Nigerians. The process starts from the well because every crude oil comes from well, and you cannot drill a well without knowing the capacity of that well to produce.

“So, the hydrocarbon accounting in the DPR starts from well. Once you drill a well, you will need to have what we call a maximum efficiency rate to know the capacity that well will produce. The volume accounting starts from that point.”

According to him, the methodology used in hydrocarbon accounting are static measurement and dynamic measurement.

The director said: “The static is the volume that went into tank that you can dip and know the volume, while the dynamic is the volume that goes across the meter.

”We have two kinds of meters: we have production meter that you measure the volume of oil produced and we have custody transfer meter where you measure the volume of oil that exchanged hands.

“What we do is to take inventory of all wells producing in every field based on the volume we give, within which that well cannot produce more than that.

“If you under produce, you can kill the reservoir. If you over produce, you can kill the reservoir. All these volume measurements, whether static or dynamic, we take record of them.”

He disclosed that Nigeria has over 30 terminals with five of them being land terminals.

Auwalu said: “Most of the thefts, they are coming from land terminals because the land producers have to use pipelines to transport the crude into the terminals for export.

” In the process, you have a lot of third party interference which results in volumes that are being taken and are stolen.

“So, most of the discrepancies in production and export, you can easily calculate the theft volume.

“And the theft volume, if not all, come from the land terminals. But the offshore terminals, it is actually practically impossible to steal crude from offshore terminals, since it is from the bottom of the sea.”

Earlier in his remarks, Akpatason said the effects of crude oil theft could not be overemphasised, adding that it was the responsibility of all patriotic Nigerians to put an end to the menace.

He said the DPR was identified as the agency playing a key role in the monitoring of crude oil production and lifting in the country hence its invitation to the agency. (NAN)

Group urges FG to reverse power sector privatisation

An electricity consumer group, ‘Where’s the Light Movement,’ has called on the Federal Government to reverse the power sector privatisation policy for failing to achieve its set goals.

The group said the sector should be returned to public ownership under democratic control and management of workers and electricity consumers.

Mr Sina Odugbemi, the convener of the group, who briefed newsmen on Wednesday in Lagos, urged the government to take a bold step to reverse the privatisation and take charge of the sector.

Odugbemi said Nigerians had not experienced the desired objectives of available, accessible and affordable electricity supply for the past seven years of privatising the sector.

“The only way forward is for government to reverse the privatisation policy and bring back the power sector under exclusive public ownership.

“We are advocating for democratic control and management of workers and consumers in a more transparent manner.

“The reversal will help to check looting of public funds, mismanagement, nepotism, inefficiency among others to sustain the growth and development of the sector including guaranteeing uninterrupted and affordable electricity supply to all Nigerians,’’ he said.

Odugbemi noted that the Electricity Distribution Companies (DisCos), the Generation Companies (GenCos) and the Transmission Company of Nigeria had to demonstrate sufficient technical and financial capacity to solve the sector’s challenges.

“The social welfare and right of all Nigerians must be guaranteed at all times in accordance with Section 14 (1) (b) of the 1999 Nigerian Constitution (as amended).

“Section 14 (1b) states that ‘the security and welfare of the people shall be the primary purpose of the government.’

“Provision of Light enhances comfort, wellbeing, productivity and security of lives and property of citizens; absence or inadequacy of electricity to the citizens negates the purpose and the spirit of Article 14 (1) (b) of 1999 constitution,” said Odugbemi.

He noted that in spite of the billions of naira sunk into the sector by the government since it was privatised in November 2013, 46 per cent of Nigerians were yet to be connected to the national grid.

“Those connected to the national grid cannot boast of enjoying quality supply. Electricity is life, it is extremely instrumental to production, services, education, healthcare, well being among others,” Odugbemi said.

According to him, apart from reversing the privatisation policy, the tariff should be reviewed downward to N21 per kilowatt with no further increment due to the current economic realities in the country.

He called for metering of all electricity consumers, adding that estimated billing should be stopped and all debts accumulated by consumers as a result of the “crazy bills” should be cancelled.

He also called for life insurance policies for electricity workers as well as massive public investment in the power sector to guarantee uninterrupted power supply to all Nigerians. (NAN)

Thursday, 28 January 2021

Sylva lays foundation stone of DPR’s new headquarters in Abuja

Chief Timipre Sylva, Minister of State for Petroleum Resources on Thursday performed the ground breaking and foundation laying ceremony of the the Department of Petroleum Resources (DPR) permanent headquarters building in Abuja.

Speaking at the event which held physically and virtually,  Sylva said the 
building located at Plot 32, Cadastral Zone, Central Business District, Abuja was tagged "The Barrel”.

He said the project was another milestone achievement by President Muhammadu Buhari  in the area of infrastructural development and its commitment to reposition the oil and gas industry for effective service delivery. 

Sylva said : "The DPR, as a critical agency of government, regulates and monitor activities of the Nigerian oil and gas industry which drives all other sectors of the economy. 

"DPR exercises its mandate by providing opportunities and enabling businesses using service instruments – Licenses, Permits and Approvals. 

"This edifice – the barrel, when completed, will provide a conducive environment to support oil and gas business across the value chain for operators, service providers, investors, relevant government agencies, international collaborators, and other stakeholders. "

According to him, with its fascinating design, the building  reflects a state-of-the-art, innovative and timeless architectural masterpiece, that honors the history of the Abuja Central Business District landscape.  

”This product of ingenious craftsmanship will provide a comfortable, safe and efficient work ambience, for a 21st century regulatory agency, that is fully equipped to enable business and drive foreign direct investments in Nigeria," he added.

Also, Mr Sarki Auwalu, Director, DPR, commended the president for approving the construction of the new headquarters and Sylva for his commitment to the administration's vision for the oil and gas industry.

Auwalu said : "As a department, we will continue to justify the confidence reposed in us by government. 

"Rest assured that this building will support DPR’s commitment to enabling businesses and creating opportunities for the industry to thrive, using our robust regulatory framework and service instrument.” (NAN)




Thursday, 21 January 2021

Buhari inaugurates National Oil and Gas Excellence Centre in Lagos

President Muhammadu Buhari on Thursday inaugurated the National Oil and Gas Excellence Centre (NOGEC) Lagos, aimed at strengthening Nigeria’s position as a regional leader in the oil and gas industry.

Buhari said the establishment of NOGEC, situated at the Lagos Annex of the Department of Petroleum Resources (DPR), would enhance safety, value and cost efficiency in Nigeria’s petroleum sector.

He said: “NOGEC aligns with the administration’s commitment to fostering stability, growth and sustainability of the Nigerian oil and gas industry for economic development.

“You will recall that at the inception of this administration, we set a clear road map for the oil and gas sector in order to increase revenue.”

The President said the centre would boost the nation’s Gross Domestic Product (GDP), generate employment and poverty reduction.

“It is therefore another milestone in the development of the oil and gas sector and its utilisation for the greater good of the country.

“The establishment of NOGEC is an indication that the Nigerian oil and gas industry has come of age despite the odds,” he added.

He said the Federal Government had made some significant achievements in the oil and gas industry in spite of the impact of the COVID-19 pandemic which affected global economies, including Nigeria’s, in 2020.

The achievements, Buhari said, included the signing of the Final Investment Decision on the Nigerian Liquified Natural Gas Company Train 7, construction of the Ajaokuta-Kaduna-Kano gas pipeline project and inauguration of the 5,000BPD Waltersmith Refinery in Imo State.

“While acknowledging our achievements, we must not relent but redouble our efforts to combat the challenges of global energy dynamics.

”I, therefore, urge you all to rededicate yourself to nation building and take advantage of the establishment of the centre to address the challenges confronting the sector.

”On our part, we will spare no effort to ensure that Nigeria benefits hugely from its natural resources.

“We will continue to leverage on oil and gas development and pursue our economic diversification drive,” the President said.

Also, Chief Timipre Sylva, Minister of State for Petroleum Resources, said the ministry under Buhari’s leadership had continued to implement sustainable reforms and policy directives in the Nigerian oil and gas industry .

Sylva said: “This is targeted at driving optimum value from our petroleum resources for Nigerians.

“NOGEC which is being inaugurated today is a testament to the successes achieved in this regard.

”NOGEC has been carefully designed to support the achievement of the ministerial priorities significant amongst which are cost reduction, increase in production, and value maximisation in the industry.

“The centre, under the direct supervision of the DPR, will leverage the existing capacity of the National Data Repository as the principal data warehouse of the industry to drive initiatives that will enhance safety.”

The minister said the flagship centres were Search, Rescue and Surveillance Command and Control Centre and National Improved Oil Recovery Centre.

Others, according to him, are Oil and Gas Dispute Resolution Centre, Oil and Gas Competence Development Centre and Integrated Data Mining and Analytics Centre.

He said when fully operational, the centre would contribute to reducing the cost of doing business in the oil and gas industry, enhance safety of the work force and provide data that were critical for prospective investors.

Earlier, in his address of welcome, Mr Sarki Auwalu, Director of DPR, said NOGEC encompasses industry-focussed programmes that would drive strategic mediation in operations, skills and competence development.

Auwalu said it also included the use of Big Data, Internet of Things and Artificial Intelligence for decision making, deployment of proven technology for secondary and tertiary oil recovery as well as coordinated response for emergency.

He said : “Today, we have concluded the framework and implementation modalities for successful take-off of these Programmes within NOGEC.

“We have no doubt that the industry now has the resource and platform to interact, cooperate and collaborate on salient industry issues that remain impediments to cost reduction, safe operations and optimum value optimisation.”

Auwalu also lauded the President for his visionary  leadership and stewardship to drive Nigeria’s energy security and economic sustainability agenda and Sylva for his commitment to the growth of the industry. (NAN)

Sunday, 3 January 2021

A Review of Nigeria's Oil and Gas Industry in 2020By Solomon Asowata, News Agency of Nigeria (NAN)

A Review of Nigeria's Oil and Gas Industry in 2020

By Solomon Asowata, News Agency of Nigeria (NAN)


The year 2020 can be described as one of the most difficult years for the oil and gas industry globally in the last few decades.

The year witnessed the Coronavirus pandemic which necessitated countries and states to lock down their borders thereby preventing movement of persons, goods and services for months unless under special circumstances.

This restriction of movement affected many sectors of the economy but one of the worst hit was the oil and gas industry which fuels mobility of mankind and businesses across the globe.

So, with a sharp drop in air and land movement, the demand for Jet A1 (Aviation fuel) , Diesel and Premium Motor Spirit (PMS) also known as petrol declined drastically. 

Also, during the period, there was an oil price war between Russia and Saudi Arabia which further led to a crash in the price of crude oil at the international market.

A combination of both factors affected the revenue of countries like Nigeria which is largely dependent on crude oil to sustain its economy thus it was not a surprised when the country went into recession.

However, in spite of these challenges, the industry recorded some positive achievements that could be consolidated on in 2021 to not only boost revenue accruing from the sector but also help to diversify its economy to reduce the dependency on oil.


Below is a review of some major issues and events which occurred in the sector in the outgoing year.

Crash in Crude Oil prices

The crash in crude oil prices caused by COVID-19 pandemic and price war between big oil producers was one of the major challenges faced by the industry in 2020.

Prices at the international market according to available data have hovered from $40 to $50 per litre for most part of the year and was at a negative at the height of the pandemic.

Minister of State for Petroleum Resources, Chief Timipre Syla says with the current second wave of the pandemic, the situation is not expected to change in the coming months.

This had compelled the Nigerian government to adjust its 2020 budget while also borrowing to fund some parts of the 2021 budget.


Removal of Petrol Subsidy

In April, Mr Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC) announced that the federal government will no longer be subsidising petrol.

Although the move was opposed by Organised Labour, the government stuck to the decision which it says can save the country one trillion naira annually to be deployed to other critical sectors of the economy.

Mr Tunji Oyebanji, Chairman, Major Oil Marketers Association of Nigeria (MOMAN) and Mr Chinedu Okoronkwo, President, Independent Petroleum Marketers Association of Nigeria (IPMAN) believe the removal of subsidy is in the interest of the country.

They say it will open up the sector for Foreign Direct Investment which will be beneficial to Nigerians in the long term.

However, the situation has led to an unstable fuel price regime with prices varying every other month after the announcement. The pump price of PMS which was N145 per litre in January 2020 is now between N164 to N172 across the country.

Transmission of PIB to the National Assembly 

The transmission of the Petroleum Industry Bill (PIB) to the National Assembly in September by the president according to industry stakeholders shows a willingness to reposition the oil and gas industry.

Kyari is confident that the bill which has passed second reading will be passed into law in 2021.

The PIB which has been mooted for almost two decades will provide a clear fiscal environment for the sector thereby attracting investors and increasing governments revenue.


Declaration of 2020 as the Year of Gas

The declaration of 2020 by the Federal Government as the Year of Gas was one of the key policies that shaped activities of the oil and gas sector in 2020.

With 203 Trillion Cubic Feet (tcf) of proven natural gas reserve, Nigeria according to Sylva can best be described as a gas country hence the need to deepen its domestic utilisation for economic growth and sustainability.

This necessitated the creation of the National Gas Expansion Programme (NGEP) in January, a committee that has been driving the implementation of the objective.

On Aug. 10, the "Go-Live" of the 
National Gas Transportation Network Code (NGTNC) was inaugurated by Sylva to unlock the potential of gas as a resource and revenue earner for Nigeria.

``It is believed that the implementation of the code will provide for investors in gas, the confidence to invest heavily in the sector and enable Nigeria consolidate on the multiplier effect of gas on the economy, says Mr Justice Derefaka, Technical Adviser, Gas, to the Minister.

Also on Dec. 1, President Muhammadu Buhari rolled out the deployment of autogas in the country with the inauguration of five gas-powered Mass Transit Buses handed over to the Nigeria Labour Congress (NLC).

According to the NGEP),  autogas  (Compressed Natural Gas) service stations are already in operations in the Federal Capital Territory Abuja , Kano and Kaduna States.

Others are Kogi, Kwara, Ogun, Ondo, Oyo, Lagos, Edo, Delta, Rivers and Bayelsa States and the government is targeting free conversion of one million vehicles from petrol to gas.

The committee says the scheme is a way of reducing Nigeria's dependence on oil while at the same time providing a cheaper and cleaner alternative source of energy for Nigerians.

Dr Mohammed Ibrahim, Chairman, NGEP says the autogas scheme and domestic utilisation of Liquefied Petroleum Gas will create about 12.5 million direct and indirect jobs.

In June, the president flagged off the construction of the Ajaokuta -Kaduna-Kano (AKK) pipeline project which will create job opportunities for Nigerians.

Mr Sarki Auwalu, Director, Department of Petroleum Resources (DPR) says  connecting the entire country with gas networks such as Escravos Gas Pipeline System (ELPS), Obiafu-Obrikon-Oben(OB3) and Ajaokuta -Kaduna-Kano (AKK) pipelines is part of the strategic agenda to bring gas to the people.

Similarly in June, Final Investment Decision (FID) was taken on the 
NLNG Train 7 project which is expected to ramp up NLNGs production capacity by 35 per cent from 22 million Tonnes Per Annum (MTPA) to around 30 MTPA. 

Mr Tony Attah Managing Director, NLNG, says, ``the   project   is anticipated to create about 10,000 new jobs during the construction stage, and on completion, help to further diversify the revenue portfolio of the federal government and increase its tax base.

Inauguration of Waltersmith Modular Refinery

On Nov. 24, Buhari inaugurated the 5,000BPD Waltersmith Modular Refinery at Ibigwe, in Imo State and also performed the groundbreaking for the companys 45,000BPD Refinery.

The refinery was constructed with the support of the Nigerian Content Development and Monitoring Board and will supply kerosene to the state and its environs.
Inauguration of Oredo  Integrated Gas Handling Facility

On Dec. 22, Buhari inaugurated the Integrated Gas Handling Facility and LPG Processing and Dispensing Plants built and operated by the Nigerian Petroleum Development Company, an Upstream Subsidiary of NNPC in Oredo, Edo State.

The president said : “The Oredo Integrated Gas Handling Facility will be delivering 240,000 metric tons of commercial grade Liquefied Petroleum Gas and Propane. It will also deliver about 205 million standard cubic feet per day of lean gas to the domestic market.


Marginal oil field bid round

In June, Nigeria opened bid round for 57 marginal oil fields in the country with over 600 companies applying for prequalification.

Mr Paul Osu,Head , Public Affairs, DPR says the objective of bid round is to deepen the participation of indigenous companies in the upstream segment of the industry and provide opportunities for technical and financial partnerships for investors.



Gas Explosions and Fire Incidents 

The year 2020 witnessed an increase in gas explosion and fire outbreaks caused by petroleum products leading to fatalities and destruction of property worth billions of naira.

On Jan. 19, a Nigerian National Petroleum Corporation (NNPC) pipeline at Ile Epo axis of Alimosho Local Government Area of Lagos State exploded leading to the death of five persons according to the National Emergency Management Agency (NEMA). 

Similarly, on March 15, NEMA confirmed the death 15 persons when an explosion occurred at Abule Ado, in Trade Fair axis of Lagos State.

No fewer than 60 students of Bethlehem Girls College located within the area also sustained injuries while over 50 buildings were destroyed.
Also on Sept. 25, 44 persons sustained various degree of injuries when a gas tanker exploded in Iju area of the state.
A few weeks later, on Oct. 8, that five persons lost their lives when a gas plant exploded at Baruwa area of Alimosho while eight persons were rescued alive with various degrees of injuries.

According to NEMA, 44 buildings were also destroyed in the inferno which started at about 5:40am when a a LPG tanker was in the process of discharging at the Best Roof Gas Plant Station located within the densely populated area.

Another inferno also occurred on Nov. 5 at the OVH Energy tank farm at Marine Beach, Ijora area of Lagos State. However no life was lost in the incident.

Reacting to the upsurge in fire incidents and gas explosions, Dr Kennie Obateru, Group General Manager, Group Public Affairs Division, NNPC says operators of gas plants and other petroleum products facilities in the country must ensure strict adherence to safety rules and regulations.

Also, Auwalu says the DPR will begin the enforcement of the Minimum Industry Safety Training for Downstream Operations (MISTDO) at petroleum facilities nationwide from January 2021.

``The growth of Nigerias downstream sector has resulted in increase of incidents leading to loss of lives, damage to property and environmental pollution. 

``Some of these incidents have come from fallen tankers, petrol station fires, gas explosion and vandalism. 

``Our records show that 70 per cent of accidents in the Nigerian oil and gas industry between 2013 and 2019 occurred in the downstream sector, he says.

2021 Projection for the industry

In their projections for the future, experts believe that the foundation laid in 2020 in spite of the enormous challenges will help the country actualise its vision for the oil and gas industry.

The experts say the autogas policy, increase in domestic utilisation of gas, full deregulation of PMS and coming on stream of the Dangote Refinery in Lagos and other modular refineries in Bayelsa, Rivers and Edo portends good omen for the country.

They also wants quick passage of the PIB to provide the legislative framework that will usher in a new era for Nigerias oil and gas industry and transform the country into a petroleum product refining hub. (NAN)

A Review of the Nigerian Power Sector in 2020 By Solomon Asowata, News Agency of Nigeria (NAN)

A Review of the Nigerian Power Sector in 2020 

By Solomon Asowata, News Agency of Nigeria (NAN)


The power sector is a critical aspect of the economy and getting it right will help transform Nigeria into an industrialised country hence successive governments have continued to make massive investments and implement several policies to actualise this objective.

The year 2020 marked seven years since the privatisation of the Nigeria Electricity Supply Industry but unfortunately, Nigerians are yet to feel the impact of the privatisation exercise.

Power generation still hovers around 5,000MW while transmission and distribution to end users is constantly being plagued by disruptions caused by obsolete equipment and vandalising of power infrastructure.

However, in spite of these challenges and the COVID-19 pandemic, the sector recorded some significant achievements which could serve as a launching pad to making electricity available for majority of Nigerians in the coming years.

Below is a review of some of the major issues which occurred in the sector in the outgoing year.

Siemens $2bn Power Deal 

In February, the Federal Government signed a deal with German electricity giant, Siemens Group to find a lasting solution to Nigerias energy crisis.

The deal which was signed on behalf of the country by the late Chief of Staff to the President, Mr Abba Kyari, before his unfortunate demise a few months later, will not only enhance the distribution network but will also increase generation capacity to the tune of 40,000MW.

The deal, signed under the Presidential Power Initiative (PPI) is expected to save the nation $1 billion annually with Siemens providing general technical training for employees of Electricity Distribution Companies, Transmission Company of Nigeria and the regulators.

The Federal Government also approved the sum of N8.64 billion as part of counterpart funding for the Phase 1 of the PPI which includes projects in transmission, distribution, metering, simulation and training.

Mr Saleh Mamman, Minister of Power, says, This significant, timely and high-level intervention between President Muhammadu Buhari and Chancellor Angela Merkel addresses critical infrastructure deficits in the value chain and helps reposition the power sector to become more attractive, viable and investable.

Similarly, Mr Adeola Samuel-Ilori, National Coordinator, All Electricity Consumers Protection Forum, says the deal can help Nigeria put its energy woes behind if properly implemented.

``The contract as signed, will enhance not only the distribution networks but also increase generation capacity to the tune of 40,000MW.

``Another beautiful thing about the contractual agreement is the elimination of middlemen and subcontractors which characterised past government efforts and led to humongous fraud.

``The deal with Siemens is government to government tripartite agreement.”



He insists the Buhari-led administration will largely be remembered for the success or failure of the deal just like its predecessors which spent millions on the power sector with nothing or little results.

Service Reflective Tariffs (SRT)

On Sept. 1, the Nigerian Electricity Regulatory Commission (NERC) approved Service Reflective Tariffs (SRT) for the 11 DisCos which led to increment in electricity tariffs for customers enjoying 12 hour supply and above daily.

The increment was opposed by labour groups and following talks between the government and the union leaders, its implementation was suspended on Sept. 28 for a period of three weeks.

However on Nov. 1, after an agreement was reached by the parties and slight adjustments made by the DisCos, the implementation of the revised SRT took effect.

Mr Dafe Akpeneye, Commissioner, Legal Licensing and Compliance, NERC, says the Multi Year Tariff Order (MYTO) 2020 was approved by NERC for the DisCos with effect from Sept. 1 after series of dialogue with all stakeholders in the industry.

He explains that the last MYTO was done in 2015 but became effective in 2016, adding that the new review was done to ensure that rates charged by DisCos are fair to customers.

Akpeneye says it is also to ensure that DisCos operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.

According to the commissioner, the rationale behind the SRT is to ensure that the issue of blank increment in tariffs for all customers is removed.

``The SRT is an innovation to remove unfairness in billing customers. The customers have been placed in Bands A, B, C, D and E depending on their hours of electricity supply.

"Only customers enjoying daily supply of 12 hours of electricity and above are affected by the increment and the DisCos must guarantee these hours of supply to the locations, he says.

National Mass Metering Programme 


With 59.6 per cent of electricity customers on estimated billing, the president on Oct. 30 flagged off the National Mass Metering Programme (NMMP) targeting 6 million households.

The key objectives of the NMMP are to: increase Nigerias metering rate, elimination of arbitrary estimated billing; and strengthening the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity.

The programme also aims to support Nigerias economic recovery by creating jobs in the local meter value chain, reduction of collection losses and increasing financial flows to achieve 100 per cent market remittance obligations of the DisCos.

It will further improve network monitoring capability and availability of data for market administration and investment decision making.

 Mrs Folake Soetan, Acting Chief Executive Officer, Ikeja Electric Plc, says the Disco will meter 106,000 customers under the scheme in the first phase.

``For the first phase of the programme, which will run till the end of the year, Ikeja Electric is rolling out over 106,000 prepaid meters to customers across its six Business Units - Ikeja, Abule-Egba, Akowonjo, Oshodi, Ikorodu and Shomolu."

According to her, beneficiaries of this programme, which will cut across all locations in IE network, will not be required to pay upfront for the installation of meters. 

Similarly, Mr Adeoye Fadeyibi, Managing Director, Eko Electricity Distribution Company (EKEDC), says 100,000 customers under its network will get pre-paid meters during the first phase.

``The mass metering programme is a welcome development and a boost to the deepening of the Nigeria Electricity Supply Industry (NESI). 

"The programme couldnt have come at a better time than now given the impact of the COVID-19 pandemic on businesses and household income. 

``We are happy for the initiative and acknowledge governments renewed desire to improve the power supply and bridge the metering gap. 

``Electricity as we all know is an important essential needs of any society and we all have acknowledge the menace of the estimated billing both on the customers and even us as a business.

``It is my belief that with this mass metering initiative we can begin to say we are on a path to better days ahead. 

``In the next 18 to 24 months, over six million meters will be distributed across households in the country and for us at Eko, we will be rolling out over 100,000 meters in the next few weeks in the first phase of the programme, Fadeyibi says. 

Mr Uche Ike, Executive Director, The Energy Forum, believes that investments and policies made in 2020 will begin to yield the desired results in power supply and distribution in the near future.

"Hopefully, we will begin to see the benefits of the Siemens deal in the second or third quarter of 2021 but Nigeria must continue to pay its counterpart funding for the project," he says.

Also, Samuel-Ilori says NERC must live up to its statutory obligations to enable Nigerians enjoy stable power supply.

He says the regulatory agency should ensure they the DisCos are not shortchanging customers, especially with the way they went about the implementation of the SRT.(NAN)