$20 Billion Ogidigben Gas Contracts Hits Rock

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The Ogidigben Gas Revolution Industrial Park (GRIP) which was projected to generate 250,000 direct and indirect jobs, as well as contribute to generating 5.5 GW of electricity has hit the rocks. The project was expected to cost $20 billion and work had already commenced as Julius Berger had cleared over 2 KM of 2,700 hectares at the proposed site of the project.

The immediate past Group Executive Director, Gas and Power for the Nigerian National Petroleum Corporation (NNPC), Dr. David Ige, declared this at the Nigerian Gas Business Forum in Lagos. He expressed his disappointment at the abandonment of the project and stated that the project had to be halted for two major reasons:

 

  1. The ethnic dispute between the Ijaw and Itsekiri over the land and the name “Ogidigben.
  2. Another unnecessary dispute between Nigeria Export Processing Zone Authority (NEPZA) and the Nigerian Port Authorities (NPA).

 

It’s unbelievable that little squabbles can cause a major project like this to come to a stop.

 

Read more: $20bn Ogidigben Gas Park contracts hit the rock

 

Power Sector Stakeholders Kick Against Bill to Criminalize Estimated Billing

The Minister of power, works and housing-Babatunde Fashola, the Nigerian Electricity Regulatory Commission (NERC) and the Association of Nigerian Electricity Distributors (ANED) have opposed the bill proposed by the house of representatives. They claim the bill will worsen the electricity situation in the country.

At a public hearing in Abuja, the house committee on power deliberated on the bill sponsored by Femi Gbajabiamila. The bill aims to amend the power sector reform act to prohibit and criminalize estimated billing by DisCos and provide for compulsory installation of pre-paid meters for all electricity consumers in the country.

Fashola said the bill could crumble the electricity sector, noting that the financial challenges of metering must be addressed first.

Read more: Power Sector Stakeholders Kick Against Bill to Criminalize Estimated Billing

 

 

 

TCN Plans 5 New Sub-Stations in Ogun

As part of efforts to boost power supply in the country, the Transmission Company of Nigeria (TCN), has begun arrangements to build electricity sub-stations in 5 different locations in Ogun state.

TCN Executive Director-Mr. Usman Mohammed-disclosed this during an unscheduled visit to Sagamu, Ijebu-Ode and Abeokuta sub-stations. He noted that the construction of sub-substations is important to the company’s effort towards delivering electricity to these areas, which are the most industrialized parts of the country.

 

Read more: TCN Plans New Sub-stations in Ogun state

 

Bill to Criminalize Estimated Billing may Lead to $5 Billion Compensation

Speaking through their association- the Association of Nigerian Electricity Distributors (ANED)-the 11 DisCos in Nigeria have said that the proposed amendment to the country’s Electric Power Sector Reform Act (EPSRA) 2005 by the House of Representatives will conflict with certain existing agreements in the industry and this lead to payment of compensations worth $5 billion to operators in the sector.

The DisCos stated that agreements like the Share Sake agreement (SSA) and the Performance Agreement, both signed with the government, could be affected by the bill proposed by Hon, Femi Gbajabiamila. According to them, implementation of the bill means the federal government would compensate them for losses.

Read more: Gbajabiamila’s Alteration of EPSRA May Lead to $5bn Compensation, Discos Warn

Gas Unavailability Denies Customers 60 GW of Electricity in One Month

A report from the office of the Vice-president, Prof. Yemi Osinbajo, showed that in May, 60 GW of electricity was not generated due to the unavailability of gas.

A research conducted by Sweetcrude showed that a total of ₦ 193 billion was lost by the power sector between January and May 2018, as a result of insufficient gas supply, distribution, transmission and water reserves.

Meanwhile, in line with its Transmission Rehabilitation and Expansion Program (TREP), TCN has completed and energized 3 new transformers in Plateau state and Ogun state in order to boost electricity supply.

Read more: Unavailability of gas denies customers 60,000 MW in May

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