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DisCos gulp N1.3trn from electricity bills in 23 months

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An estimated 12.792 million registered consumers paid at least N1.367 trillion as charges for power supply to them by the 11 Distribution Companies (DisCos) within 23 months – from November 2020 to September 2022.

According to an analysis of data published by the Nigerian Electricity Regulatory Commission (NERC), the customers owe N590.6billion as debt of the entire N1.958trillion during the period.

The Nigerian Electricity Market (NEM) has experienced a huge liquidity crisis with over N1.7 trillion market shortfall. The billing and revenue collection were done according to customers’ bands with those in Band A (customers with over 20 hour daily electricity supply) getting the highest billing of N748.9billion and the highest revenue collection of N623.1billion accounting for about 45 per cent of the generated revenue. The customers however had N125.8billion as unpaid bills.

Band C (12 hours supply) had the second most billed customers with N412.5billion and the 11 DisCos receiving N255.5billion from the bill as N157billion was unpaid.

The third most billed customers were those on Band B  (16 hours supply) with N377.1billion bill but the consumers paid N268.3billion leaving N108.8billion unpaid bill.

Band D (eight hours) customers received N289.4billion bill but paid N158.6billion with N130.8billion as outstanding. N129.7bn was billed to customers under Band E (five hours supply) but this group of electricity users paid N61.9billion for the 23 months and had a debt of N67.8billion to pay to the 11 DisCos.

The lowest customer category is the ‘Lifeline’ (mostly in rural areas) getting N801.3 million bill for the 23 months but ended up paying N450.5million, and owing N350.8million.

According to the Multi Year Tariff Order (MYTO) 2022, this set of customers who are considered to be poor, are cross-subsidised by payments from the five other customer categories.

While the billing for the five categories of electricity consumers grew significantly in 2022 from the figures earlier, the revenue collection also improved.

Analysis of the average billing trend shows that customers on Lifeline paid N15.29 per kilowatts hour (kwh) in 2022 being the lowest hourly billing but they paid N7.58/kwh and N8.24/kwh in 2021 and 2022 respectively.

The bill for band A reached N62.95/kwh in 2022 being the highest charge but customers paid about N52.38/kwh leaving a N10.57 shortfall for every one hour of electricity consumption.

Band E customers that have a lower power supply of just five hours daily got N37.93/kwh in 2022 and paid N18.52/kwh leaving a N19.41/kwh hourly debt.

Generally, consumers were billed an average of N52.74/kwh in 2022 but paid N37.45/kwh as the power firms could not get a difference of N15.29/kwh for every hour of electricity supplied to the over 12m customers for most of last year.

Energy

Over 500mmscf/d gas supply projects to be commissioned — Presidency

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The Presidency has disclosed plans to commission over 500mmscf/d gas supply projects across the country.

This is in line with the country’s move to transition from fossil fuels to gas according to its Decade of Gas initiative.

In a press statement on Friday, the spokesperson to the President, Ajuri Ngelale outlined three projects the President is billed to commission.

The statement reads: “In line with his commitment to significantly leverage gas to grow the economy, President Bola Tinubu will commission three critical gas infrastructure projects being undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and partners.

“The projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.

“The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.

“The projects lined up for commissioning include: (1) AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d. This project is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. This additional gas supply will support further rapid industrialization of Nigeria. ”The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports. The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.”

“(2) ANOH Gas Processing Plant (AGPC) – 300MMscf/d. The ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State. The plant will produce dry gas, condensate, and LPG. The gas from ANOH gas plant will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialisation. The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

“(3)ANOH-OB3 CTMS Gas Pipeline Project. The project involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project. The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.”

“When commissioned, the projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively.”

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Energy

Shell signs agreement to build gas pipelines in Oyo State

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Shell Nigeria Gas, SNG, and the Oyo State Government have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

A statement released on Friday by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, disclosed that SNG will build and operate the gas distribution network, which will serve customers across Oyo State for 20 years.

According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.

Speaking at the signing ceremony, the Oyo State Governor Seyi Makinde, described the project as a catalyst for development in the state.

The Managing Director of SNG, Ralph Gbobo, noted that the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”.

He explained that the project would boost Oyo State’s internal revenue and create Job opportunities for indigenes.“

“The Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman, Shell Companies in Nigeria, Osagie Okunbor, remarked that the event pointed to the value of partnership as “Shell continues to power progress” in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

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Nigeria ripe for nuclear power to boost electricity generation – NAEC 

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The Nigeria Atomic Energy Commission (NAEC) in collaboration with Centre for Energy Research and Training (CERT), Ahmadu Bello University (ABU), Zaria would deploy nuclear science and technology to strengthen electric power generation in Nigeria.

Prof. Yusuf-Aminu Ahmed, Chairman NAEC disclosed this during the 20th Anniversary Symposium of the Nigeria’s first Nuclear Research Reactor-1 (NNR-1) in Zaria on Thursday.

Ahmed said the experience developed over the years on nuclear power at the centre makes Nigeria ripe and ready to go into the next level of power generation through the nuclear reactor.

“We have used the reactor for research and development over the years and now we are going to use the reactor for the purpose of generating electricity.

“President Bola Tinubu has already given the commission a mandate to see how it contributes in the clean energy sphere of Nigeria and the nuclear energy programme of Nigeria would participate,’’ Ahmed said.

He explained that the time for the project would not be open for the public; however, Ahmed added that international partners and vendors were working closely with the commission over the project.

He also said that intergovernmental agreements were signed with some of the vendors on the nuclear power in Nigeria and very soon President Tinubu would make an announcement on the issue.

Earlier, Sen. George Akume, Secretary to the Government of the Federation said the 20 years of safe operation of the nuclear research reactor was an indication that Nigeria has joined the campaign for safe application of nuclear energy.

Akume, represented by his Special Assistant on Technical Issues, Prof. Bolaji Babatunde, added that since the centre had safely operated the nuclear research reactor for 20 years, it can also obtain a nuclear reactor for electricity generation.

According to him, the process of having a reactor that would generate electricity is similar to operating a nuclear research reactor.

“President Tinubu has re-echoed the need for having nuclear energy into the sources of electric power generation in Nigeria and Nigerians should look forward to this power.

“Electricity generated through nuclear energy is clean and safe except for human errors or natural causes such as the one that happened in Hiroshima,’’ he said.

Earlier, Prof. Sunday Jonah, Director of the center said the event was to celebrate 20 years of safe operation, maintenance and utilisation of the first Nuclear Research Reactor code named NNR-1.

However, in spite of the numerous gains at the centre over the years, the Director lamented over a plot by NAEC to wrestle the centre from the university through the proposed NAEC Bill 2022.

He explained that such a move would negate the dreams of the founding fathers that established the centre in universities because of the culture of research and development being promoted at designated universities.

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