Sunday, 27 September 2015

Nigeria’s electricity generation increases by 871MW in two weeks


 By Oluwagbenga Bankole
Nigerians hope of enjoying more hours of electricity supply have received a boost this is because the country’s electricity generation has increased by 871.9 megawatt in two weeks from 3700mw it recorded two weeks ago to 4,078.20MW.

According to data obtained by Nigerian NewsDirect from Federal Ministry of Power the new electricity peak generation is still below the Peak Generation level of 4,810.7MW achieved on August 25th of this year, although the country’s power generation capacity currently stands at 6,000 MWs and is to the expected to grow to 40,000 MW by 2020.

It also put the nation’s daily average energy distributed at 3,987.27mw, while Peak Demand forecast still stands at 12,800MW.

Meanwhile our correspondent gathered that the Ikeja Electricity Distribution Company and Eko Electricity Distribution Company account for over 40 per cent of power consumption in Nigeria.
 Lagos which used to be the country’s political capital before Abuja, remained Nigeria’s commercial and industrial hub with a large concentration of industries in the state and the adjoining Ogun State.

Nigerians in the nook and crannies of the country acknowledged that power supply has improved drastically since the inception of this present administration. The achievement according to experts in the industry was achieved because vandalisation of gas pipelines which supply power plants in the country have reduced drastically.  

The improvement has made households and businesses experiencing more hours of electricity unlike before. Running of generators all through the night have no doubt reduced to the barest minimum.

Expects have predicted that the current improvement in power supply if sustain will help the nation’s goal of being among the top 20 economies of the world in 2020, a mileage that is merely seven years away.

To sustain the current trend, the former Minister of Power, Professor Barth Nnaji urged President Muhammadu Buhari to sustain the power sector road map.

Speaking exclusively with Nigerian NewsDirect, Nnaji also said that for the sector to achieve its aim of giving Nigerians interrupted power supply, the sector requires integrity at various level.

He noted that people should continue to do the right thing for the country, adding the there should be no compromise.

The Chief Executive Officer of Geometric Power Limited noted that power reform was informed by government’s decision to resolve the problems of power in the country and disclosed that most of the pillars of the reform have been put in place.

 “The government at some point decided that okay, we are going to solve this problem of electricity, and that’s why we talk about power reform. I will say that most of the pillars of power reform are in place, all that remains now is implementation. The pillars for example, we have a regulatory commission, we have bulk filter who buys power from whoever produces power. We have appropriate tariff regime etc., so all the things are in place but implementation must be correct,” he stated.

Daily subsidy on petrol now N678.8m


By Oluwagbenga Bankole
The subsidy on Premium Motor Spirit (PMS) popularly known as petrol is now N678, 800,000 for daily consumption of the product within the country.

According to the latest figure from the Petroleum Products Pricing Regulatory Agency (PPPRA), the Federal Government is paying N 16.97 as subsidy for every litre of petrol consumed in Nigeria.

The PPPRA pricing template released on September 24, 2015, revealed that the Expected Open Market Price (EOMP) or total cost for petrol was N 103.97per litre.

This was against a retail regulated price of N87 per litre. The difference between the EOMP and the retail price is therefore N16.97.

According to the Nigerian National Petroleum Corporation (NNPC), Nigeria consumes about 40 million litres of the PMS daily.

The cost elements that make up the landing cost include the product’s offshore cost, N 77.52; trade margin, N 1.47; lightering expenses, N 4.10; NPA, N0.77; financing, N 0.81; jetty depot throughput charge, N0.80; and storage charge, N3.

According to the agency, the cost of the product’s distribution margin, retailers get N4.60; transporters, N2.99; dealers, N1.75; bridging cost is N5.85; marine transport average, N0.15; and the admin charge, 
N0.15. The sub-total margin stands at N 15.49.

When added to the landing cost of N88.48, an EOMP of N 103.97per per litre is arrived at. But this is subsidised and a flat official rate of N87 per litre is given.

Over the years there have been controversy surrounding the exact amount government pays to marketers as subsidy.

Just recently, the audit report by PricewaterHouse Coopers (PWC) on the financial management of the Nigerian National Petroleum Corporation (NNPC) revealed that there were many cases of duplicated subsidy payment by the NNPC to many oil marketers between 2012 and 2013.

According to the report, payment of subsidies for petrol (PMS) and kerosene (DPK) between January 2012 and July 2013 when investigated had a difference of $980 million (about N195 billion) due to duplicated payments.


Why Buhari should privatised our refineries- Expert


By Oluwagbenga Bankole



The Managing Director of Petrocam Trading Nigeria Limited Mr. Patrick Ilo has urged President Muhammadu Buhari to privatised the nation’s four refineries stating that when the refineries is in the hands of private companies, it will function to the demands of Nigerians.

Nigeria has four petroleum refineries which are managed by the NNPC. Two of these refineries are in Port Harcourt, one in Kaduna with another in Warri. They all have a combined installed capacity of 445,000 barrels per day.

The Group Managing Director of NNPC, Dr. Ibe Kachikwu recently disclosed that the federal government is considering the option of building new refineries to complement the old ones as soon as possible.

Kachikwu said it is obvious that the old refineries are wearing out and can no longer meet local demands of products across the country, adding that it is only when new refineries are built that the problems of fuel scarcity and other problems associated with the inability of NNPC and its subsidiary to deliver will be resolved.

Speaking exclusively with TOTALNEWS247, Ilo said that there is nowhere in Europe where government is involve in oil refineries, adding that it is always a private initiative or better still I believe it should be a Public Private Initiative (PPI).

I absolutely think our refineries should be privatised because the business of government belongs to nobody but when it is in the hand of credible people and it is well structured then it works better,” he said.

On the plans of the company to collaborate with its foreign partners and build a refinery in the country, he said that to build a refinery here in Nigeria the government has to deregulate the downstream sector, emphasizing that you cannot be producing and government will be compelling you to sell at a certain amount of money.

He said if there is guided deregulation; one will be able to plan and do what is necessary, adding that at this stage, the environment is not conducive to have a refinery.

Waiting for Buhari’s ‘noisemakers’- By Ochereome Nnanna



It is three days to the end of September 2015, the magic month within which President Muhammadu Buhari promised to appoint his ministers. It is expected that in spite of his foot-dragging and reluctance, he will publish the names of the nominees before Friday this week.

We saw him display the same foot-dragging and reluctance in fulfilling his pledge to make his assets declaration public “within the first 100 days”. After sending his spokesmen to deny he ever made such a pledge, he and his Vice President unveiled their assets on the 87th day, though Buhari did not allow us to know in concrete terms how much he is worth.

Mind you, that he unveils his ministerial nominees does not mean they will start work soon. In fact, it is not certain when the Federal Executive Council (FEC) will become functional. The president’s open disdain for the offices of ministers of the federal republic shows he won’t care a hoot how long it takes for them to fully come on board. The president and some leaders of his ruling All Progressives Congress (APC) are seen to be spearheading the rift with the leadership of the Senate, the very body constitutionally empowered to approve his ministerial nominees. If the president were eager to have his cabinet in place as soon as possible, he would have stayed true to his earlier undertaking to work with whoever emerged as the leaders of the Federal Legislature.

Since Buhari took over four months ago, he has fallen in love with Permanent Secretaries and Directors in the Federal Civil Service; the very nest of corruption. No political appointee can take a dime out of government coffers without the collusion of civil servants. According to him in an interview with a French television station while visiting France recently, these dutiful civil servants are the ones “doing the work” everyday. Ministers, he added, are mere “noisemakers”. Left to him, he will prefer to work with the civil servants and dispense with ministers.

Some Nigerians have applauded him for this outburst, saying he was “brutally frank” while some even said he displayed “courage” in calling ministers dirty names. Unfortunately for him and them, the Constitution of the Federal Republic of Nigeria 1999, at Section 147, directs the president to appoint ministers from each state of the federation. Section 148 spells out the functions of the ministers and makes it clear that he must meet them regularly.

Ministers and civil servants have their jobs clear cut out for them by law. None can take the place of the other. It is strange that a man who ruled this country thirty years ago as a military officer and had no problem with appointing and working with ministers is now displaying open hostility to those offices. During his military days, he suspended the constitution. He was thus not bound by any law to appoint ministers yet he did without being prompted. But now that the constitution binds to appoint ministers, why is Buhari bellicose and spitting fire?

Before we offer our insights into that, let us make it clear that ministers are very important in every regime, irrespective of the type of government in place. Apart from the efforts of the Nigerian constitution to make it a mechanism to carry every state in the federation along even by a regime that heavily tends to monolithic sectionalism such as Buhari’s, they are there as agents of the president and his ruling party within the machinery of governance.

The party (APC) campaigned based on a set of manifestoes and promises and the electorate gave their majority votes to it instead of renewing PDP’s mandate. Buhari is expected by the constitution to appoint qualified APC members from all parts of the country to mann his cabinet as ministers. Though most people often clamour for “technocrats” (rather than “politicians”) to be given ministerial jobs, Section 147(5) of the constitution says such nominees must be qualified to be members of the House of Reps, which means they must be card-carrying members of political parties.

The implication of these are obvious: the Federal Executive Council (FEC) chaired by the President with the Vice President as the vice Chairman is a body made up of elected and appointed members of (largely) the ruling party. If ministers are “noisemakers”, then so is the president. It is the same constitution that insists that the president and his deputy must be politicians that also affirms that ministers must be party members. The job of ministers is to act as the political heads of the ministries and drive the president’s (and ruling party’s) domestic and foreign policies, programmes and visions. They are also to advise the president and carry out any instructions he may dish out to them in their respective ministries.

Civil servants, on the other hand, are permanent staff of the state whose job is to carry out instructions issued by the political heads of their ministries and departments in line with the strict rules of the civil service. They are forbidden to belong to political parties or betray allegiance to any political group. This makes it possible for them to serve under the regime of any president and political party that wins election.

So, why is Buhari suddenly reluctant to appoint ministers when he showed no such trait as a military ruler? The answer could be discerned from the way he has approached governance so far. In constituting his “kitchen cabinet” or the “inner circle”; people whose jobs demand that they see him every day (Service Chiefs, personal advisers, assistants, heads of sensitive federal institution that control revenue and the economy, elections, and the security of state) Buhari picked only people he knows and “trusts”. These people have tended to be mainly from his own part of the country. He calls them the “long suffering” loyalists who worked for him even when there was no hope of success.

He has also, in the past four months, courted and secured the direct loyalties of top federal bureaucrats, a potentially dangerous aspect that could predispose them to political influences of the president. These are the people he now feels “comfortable” to work with.

What about his fellow APC leaders; those who jumped on the bandwagon in the past eighteen months during which the merger took place? What about the “new” PDP which swelled their ranks, thus tilting victory to him? He felt “comfortable” receiving the “rogues” and “saints” among them; accepting their billions in campaign funding, smiling for the cameras while they dressed him in borrowed robes to entice voters. He swam in their hyperbolic propaganda. Everything they brought to help him win he collected; no one who came forward, and nothing they brought was considered too “dirty”.

As soon as he achieves his objective of becoming an elected president he reverts to his old mode of seeing “politicians” as “dirty” people, forgetting that he is now one of them; has been since 2003.

Buhari may well be building a very strong personal power base, sidetracking the vehicle that brought him to power and using his personal disciples and the federal bureaucracy to run a civilian dictatorship. Even when the ministers come, they may find themselves mere figureheads and passengers in Buhari’s government.

The fact that a crowd of ill-regarded ministers (“noisemakers”) is brought in might not douse the regional dominance and agenda (rather than party agenda) that have been unfolding.

It might well be a fostering of the “97%/5%” formula that makes Buhari a president who belongs to some Nigerians and not to the others.