Cloned Nigerian Anchor

Author: Chike Ozohili

  • 2023 Budget: We’ve nothing to hide, NDDC tells NASS

    2023 Budget: We’ve nothing to hide, NDDC tells NASS

    Following concerns by the lawmakers in the Upper Chamber of the National Assembly over the budget of the Niger Delta Development Commission (NDDC), the Commission has told the Senate it has nothing to hide.

    The Senate, on Wednesday, May 10 at its session, constituted an ad hoc committee to probe the financial activities of the NDDC for 2021 and 2022 Budget estimates. 

    The Senate also stood down consideration of the 2023 Budget of the NDDC for further clarification on the figures contained in the budget.

    While appreciating the concerns raised by the Senate, the NDDC, in a statement by its Director, Corporate Affairs, Dr. Ibitoye Abosede, said that the Commission would continue to respect its oversight functions.

    The NDDC said that it was ready to cooperate with the investigative committee insisting that it was committed to transparency and accountability in its operations.

    “It is important that we clarify that the Senate has not accused the Board and Management of the NDDC of corruption or misappropriation of N1.4 trillion.

    “The Senate only thinks that the funds were expended without approval or appropriation by the National Assembly. This misunderstanding can be quickly resolved by providing the necessary documents and explanations.

    “The NDDC also wishes to explain that the delays in submitting its budgets and audited accounts to the National Assembly were due to factors beyond its control, such as bureaucratic bottlenecks and frequent leadership changes. 

    “The Commission has, however, taken steps to address these issues to ensure timely compliance with all statutory requirements.

    “We appeal to the general public to refrain from making hasty judgments based on the Senate’s decision. The NDDC assures all stakeholders of its dedication to the development of the Niger Delta region and the welfare of its people,” the Commission said.

  • Electricity: Nigeria needs $3.5bn annually to generate 40,000mw by 2030- FG

    Electricity: Nigeria needs $3.5bn annually to generate 40,000mw by 2030- FG

    *As REA targets N7bn from investors

    Nigeria needs a $3.5 billion investment annually to generate 40,000 megawatts (MW) of electricity by 2030.

    This was even as the Rural Electrification Agency (REA) was targeting additional N7 billion revenue from its first investors’ matchmaking for Solar Naija Programme (SNP).

    Speaking at the investor match-making event, which the REA organised in Abuja, the Minister of Power, Engr. Abubakar Aliyu, disclosed that it would cost Nigeria an annual investment of $3.5 billion to attain 40,000MW by 2030.

    With 23 power generating plants connected to the national grid, Nigeria has the capacity to generate 11,165.4 MW of electricity.

    As at last January, Nigeria’s available power generation capacity in the First Quarter of 2022, according to a Nigerian Electricity Regulatory Commission (NERC) First Quarter 2022 Report published on January 6, 2023, decreased to 4,712.34MW from 5,465.72MW in the Fourth Quarter of 2021.

    It stated that in the First Quarter of 2022, the average hourly generation of all available units decreased by 190.58MWh/h (-4.44 per cent) from 4,294.02MWh/h in 2021/Q4 to 4,103.11MWh/h.

    The Commission attributed the decrease to incessant technical faults, gas constraints, as well as undulating load demand patterns that have continued to affect the amount of energy generated by power plants.

    Represented by the Ministry’s Director of Investment, Mrs. Eyo Babalola, Aliyu noted the Ministry was the fulcrum of the actions with which the government is transforming the industry from a public to a private sector-driven one.

    He said that, with the recent legislation that has empowered state governments to generate and distribute electricity, there are limitless investment opportunities in the sector.

    The Managing Director of REA, Engr. Ahmad Salihijo Ahmad, informed the Rural Electrification Fund (REF) is undergoing some slight reforms to work with private investors for impact financing.

    He explained the essence of the reform was to ensure there is a revolving fund that could suffice when there are non-viable areas.

    Meanwhile, the REA is targeting additional N7 billion revenue from its first investors’ matchmaking for SNP.

    The Programme aimed at providing the opportunity for potential investors to pitch their financial offerings to developers, clearly stating the selection criteria and key terms.

    In a statement by the Agency on Thursday, the Agency hinted that the event would facilitate networking and matchmaking forum that brings together key investors and high-performing developers (pre-evaluated by the SPN team) in the power sector.

    The event was organized in collaboration with the Power Africa Nigeria Power Sector Program (PA-NPSP, USAID).

    The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar connections in off grid communities.

    It stated that program is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.

    The objectives of the programme is to expand energy access to 25 million individuals (5 million new connections) through the provision of Solar Home Systems (SHS) or connection to a mini grid, Increase local content in the off grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.

    Speaking during the event, Ahmad encouraged partnerships like these to boost energy access in communities.

    “As the implementing agency for Nigeria’s off-grid strategy, the REA has been working to support private developers by creating an enabling environment to facilitate investments in various ways, including access to data, policy support, grants, capacity development, stakeholder management, and most importantly financing for Developers,” he said.

    The Acting Deputy Missions Director, USAID Nigeria, Stephan Menard, in his remark, encouraged private developers to key into the project. 

    “I encourage the private developers to take advantage in accessing financing towards improving the lives of Nigerians by delivering sustainable energy access,” he said.

    The Head, Solar Power Naija Programme, Barbara Izilien, looked forward to better days.

    “We hope, with this approach, we will be able to build quick partnerships that would lead to new connections, and further count towards our target of electrifying a minimum of five million households, serving a minimum of 25 million Nigerians,” he said.

    The Solar Power Naija Programme, implemented through the REA, is actively working on catalysing access to financing for developers in the off-grid sector to achieve the programme targets.

    The event witnessed the signing of Memorandum of Understanding (MoU) between the REA and Chapel Hill Denham through the Solar Power Naija Programme.

    The MoU is aimed to facilitate financing to developers for off grid electrification projects.

  • Oil production falls below benchmark to 998.6bpd in April

    Oil production falls below benchmark to 998.6bpd in April

    Nigeria’s oil production in April 2023 fell below the one million mark – the lowest in seven months – as the production figure fell to 998,602 barrels per day (bpd).

    This is a 21.26 per cent decline compared to March, when output was 1,268,202 bpd.

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for April 2023.

    The volume of production is at its lowest point in the last seven months.

    In the previous year, oil production fell below one million bpd in August and September owing to several issues, including oil theft.

    According to the NUPRC report, oil production decreased from 1.517 million bpd in March 2023 to 1.245 million bpd in April 2023, with the addition of condensate.

    Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil. It is usually separated from a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions.

    Speaking about the current oil output on Wednesday, the Chief Executive Officer (CEO) of the NUPRC, Gbenga Komolafe, said that oil production is currently about one million bpd below “its technically allowable capacity”.

    Komolafe, who was represented by the Executive Commissioner for Economy, Regulatory, And Strategic Planning, NUPRC, Kelechi Ofoegbu, at a host communities sensitisation workshop, attributed the low oil production to a number of issues, including the energy transition’s impact on hydrocarbon funding, a lack of investments, and insecurity.

    “While the commission is prioritising efforts towards increasing oil and gas production and ensuring maximum federation revenue through the optimisation of the oil and gas value chain, the efforts have been constrained by a myriad of challenges.

    “These challenges range from insecurity, low investment, and de-prioritisation of funding of hydrocarbon development arising from the energy transition.

    “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” he said.

  • TETFund-sponsored facilities at NOU Obagaji set for commissioning

    TETFund-sponsored facilities at NOU Obagaji set for commissioning

    In a move pursuant to its mandate of arresting the rot and deterioration in the educational infrastructure sector through the building of world class facilities in tertiary institutions, the Tertiary Education Trust Fund (TETFund) is set to commission two blocks of facilities it sponsored, ahead of the commencement of academic activities by October 2023.

    The facilities, which include an office building and a lecture theater, have been completed and are ready to be handed over to the National Open University Obagaji Study Centre in Agatu Local Government Area in Benue State this Saturday (May 13).

    According to an invitation signed by the Executive Secretary of TETFund, Arc. Sonny Echono, the foundation laying ceremony for an ICT Centre with classrooms (will) also be performed on the same occasion.

    “I am pleased to inform you that work has been completed on two blocks of facilities, namely: the office building and lecture theatre at the National Open University Obagaji Study Centre in Agatu Local Government Area, Benue State.

    “The facilities sponsored by TETFund will be handed over to the National Open University on Saturday, May 13, 2023, at 10 am. Additionally, the foundation laying ceremony for an ICT Centre with classrooms (will) also be performed on the same occasion as part of arrangements to ensure the commencement of academic activities by October 2023.

    “It is, therefore, with the greatest sense of humility that I extend our invitation to you to grace the occasion.

    “Please accept the assurances of my esteemed regards,” the signed invitation read.

  • Privatization: FG gives Transcorp Power discharge certificate

    Privatization: FG gives Transcorp Power discharge certificate

    Transcorp Power Limited has received the Discharge Certificate from the Federal Government in Abuja.

    Nigerian Anchor reports that Transcorp Power Limited, a leading power generation company, located in Ughelli Delta State, is the first power generation company to fulfil all privatisation obligations.

    Transcorp Power Limited, with an installed capacity of 972 megawatts, was presented with a post-privatisation discharge certificate by the Federal Government, following fulfilment of all privatisation conditions.

    This development means that Transcorp Power will no longer be subjected to post-privatisation monitoring, and it is the first privatised power generation company to achieve this milestone since the power sector privatisation commenced in 2013.

    One of the key targets set for Transcorp is a minimum available capacity of 670 megawatts.

    The Discharge Certificate was presented at the meeting of the National Council of Privatisation (NCP) by the Vice President, Professor Yemi Osinbajo, to Mr. Tony Elumelu, Group Chairman, Transnational Corporation Plc (Transcorp), owner of Transcorp Power.

    Osinbaho, who also doubles as the Chairman of NCP, commented on the ceremony.

    “Post privatisation monitoring is an important aspect of the Federal Government’s privatisation programme.

    “Transcorp Power has been able to ensure compliance and meet the expectations of post privatisation deliverables.

    “I commend Tony Elumelu and his Transcorp team for this feat. I urge Transcorp Group to continue in that path and even do better. This being the first, should not be the last post privatisation discharge event,” he said.

    Elumelu thanked the Federal Government for their trust and confidence in Transcorp.

    “In addition to fulfilling the post privatisation performance criteria, Transcorp has driven a strong indigenous agenda – our plants are managed and fully operated by Nigerians, creating jobs and reducing unemployment in the country.

    “Safety is very important to us as well, since we began operations in 2013, we have recorded zero incidents till date.

    Speaking at the Event, the Director General of the Bureau of Public Enterprises, Alex Okoh, congratulated the Board and Management of Transcorp for the milestones achieved in turning around the enterprise.

    He noted that Transcorp had met and exceeded the performance targets and all other covenanted obligations agreed during the signing of the privatisation agreement in 2013.

    “Transcorp Power increased the generation capacity of the plant by 227 per cent from the operational status as at handover in 2013.

    “Capital expenditure totalling N58.612 billion was covenanted for phase1, phase 2 as ‘additional investment’ but the actual investment made by Transcorp was the sum of N83.85bn, leading up to a score of 143 per cent,” he said.

    Transnational Corporation Plc acquired Ughelli Power Plc (now Transcorp Power Limited) from the Federal Government of Nigeria on November 1, 2013 when the power sector was privatised. At the time of acquisition, the plant had an available capacity of 160 megawatts. Transcorp invested and increased the available capacity to 680.83 megawatts (being a 227 per cent increase) within four years of takeover, surpassing the five-year target of 670 megawatts set by the Bureau for Public Enterprises (BPE).

  • N/Delta Oil Spill: UK’s Supreme Court rules in favour of Shell

    N/Delta Oil Spill: UK’s Supreme Court rules in favour of Shell

    The United Kingdom Supreme Court on Wednesday ruled in favour of Shell, a British multinational oil and gas company, over a 2011 offshore oil spill.

    The apex court ruled that it was too late for Nigerian claimants to sue Shell subsidiaries over a 2011 offshore oil spill.

    The case was one of a series of legal battles Shell has been fighting in London courts against residents of Nigeria’s oil-producing Niger Delta, a region blighted by pollution, conflict and corruption related to the oil and gas industry, Reuters report.

    In December 2011, there were allegations that an estimated 40,000 barrels of crude oil leaked when a tanker was loaded at Shell’s Bonga oilfield, 120 kilometres off the coast of Nigeria’s Niger Delta.

    Shell disputed the allegations and said the Bonga spill was dispersed offshore and did not have adverse effects on the shoreline, according to Reuters.

    A group of 27,800 individuals and 457 communities have made several attempts to drag Shell to court, arguing that the resulting oil slick polluted their lands and waterways, destroying farming, fishing, drinking water, mangrove forests and religious shrines.

    But a panel of five Supreme Court justices unanimously upheld rulings by two lower courts that found they had brought their case after the expiry of a six-year legal deadline for taking action.

    The claimants’ lawyers had argued that the ongoing consequences of the pollution represented a “continuing nuisance”, a type of civil tort, which would have meant the deadline did not apply.

    “The Supreme Court rejects the claimants’ submission. There was no continuing nuisance in this case,” Justice Andrew Burrows said during the ruling.

    While it was two Nigerians that were appellants in the Supreme Court case, the verdict would be applicable to the thousands of other claimants, the report added.

    Shell said the Supreme Court ruling had brought to an end all legal claims in English courts related to the spill.

    “While the 2011 Bonga spill was highly regrettable, it was swiftly contained and cleaned up offshore,” a Shell spokesperson said.

  • Technical challenges responsible for Abuja blackout – AEDC

    Technical challenges responsible for Abuja blackout – AEDC

    The Abuja Electricity Distribution Company (AEDC), has blamed technical challenges for the blackout that is being experienced in the Federal Capital Territory (FCT) and other parts of its franchise areas.

    Nigerian Anchor reports that the AEDC is responsible for electricity supply in the FCT, Kogi, Nasarawa and Niger states.

    In a public notice signed by its Management, which it posted on Wednesday afternoon, the electricity distribution company, DisCo, said that it was already aware of the situation.

    “The Management of Abuja Electricity Distribution Plc (AEDC) wishes to inform its esteemed customers that it is aware of the power outages and fluctuations being experienced in recent times.

    “This is primarily due to technical challenges caused by the combination of inclement weather conditions, vandalism, routine maintenance, and technical installations at various locations within our franchise area.

    “While we sincerely apologise for any inconvenience caused, we assure you that the ongoing technical installations across our franchise are aimed at improving the quality of your power supply.

    “We thank you for your patience and understanding,” AEDC said.

  • Transcorp Power Gets FG’s nod as preferred bidder for AEDC

    Transcorp Power Gets FG’s nod as preferred bidder for AEDC

    The Federal Government has approved Transcorp Power as the preferred bidder for the Abuja Electricity Distribution Company (AEDC).

    This was even as a 240-megawatt turbine, Afam Three-Fast Power Plant, was unveiled.

    Speaking on Tuesday, at the commissioning of the Afam Three-Fast Power Plant in Oyigbo LGA, Rivers State, the Vice President, Prof. Yemi Osinbajo, revealed that the approval was given by the National Council on Privatisation (NCP).

    He described the development as a significant breakthrough in the country’s power sector – an industry he said has been lacking private sector finance.

    “A major breakthrough of our privatisation process, which of course, as you know, started in 2005-2006, was and has been inadequate of private investments and real cash injections. 

    “From the time we started, an indigenous firm such as Transcorp Power and Heirs Holding have been making significant investments such as this 100 per cent acquisition of installed capacity Afam Power Plc and Afam Three-Fast Power Limited, jointly referred to as Afam GenCo. The acquisition cost, I am sure you have heard already, is N105.3 trillion.

    “Only yesterday (Monday), the National Council on Privatisation (NCP) formally delisted Transcorp Power Plc, formerly known as Ughelli Power Plc, from routine monitoring and evaluation by the BPE, indicating yet another successful power investment.

    “I can say the last few days belong to Transcorp Power because at the meeting of the National Council on Privatisation (NCP), the council approved Transcorp Power Consortium as the preferred bidder of the acquisition of the Abuja Distribution Company,” he said.

    Nigerian Anchor reports that the United Bank of Africa (UBA) took over the AEDC in December 2021, over the inability of its major stakeholder, Kann Consortium, to service the $122 million debt owed to the Bank.

    Kann Consortium had secured a loan from UBA to acquire AEDC in 2013, making it hold a 60 per cent stake in the DisCo.

    However, in April 2023, the bank said it would sell AEDC to recover the $122 million debt.

    Osinbajo also spoke of the Afam Three-Fast Power Plant.

    “In 2020, electricity subsidies reached N584 billion, but service-based tariffs have led to a doubling of collection in the Nigeria Electricity Supply Industry (NESI) from N40 billion in 2020 to N80 billion in the first quarter of 2023.

    “If this trajectory continues, the Nigeria Electricity Supply Industry will be able to pay for itself. Our administration has also created programmes for off-grid electrification. Rural Electrification Agency (REA) now has the capacity to provide electricity supply on a first-class basis.

    “We are on track to electrify all Nigerians in the next decade. However, we will not make progress if our gas supply does not improve. The gas supply challenges are hampering improvements,” Osinbajo said.

    The project, a subsidiary of the Transcorp Group, is located in Oyigbo, on the outskirts of Port Harcourt in Rivers State.

  • Tony Elumelu secretly bought my shares in Transcorp, Otedola reveals

    Tony Elumelu secretly bought my shares in Transcorp, Otedola reveals

    File photo of Tony Elumelu and Femi Otedola

    Femi Otedola, Nigeria’s billionaire businessman, has revealed business mogul Tony Elumelu went behind him to secretly purchase his shares at Transcorp Corporation PLC and that his offer to buy the Nigerian conglomerate for N250bn was rejected by the shareholders.

    Otedola’s revelation came to light on Tuesday in a statement he issued to TheCable, weeks after the businessman acquired stakes in Transcorp and sold the shares.

    He revealed that he had bought the shares of the company because he believed in the potential of the group to hit N2tn in valuation.

    “I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximise the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.

    “As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game,” he said.

    Going down memory lane, the majority shareholder in Geregu Power revealed some business deals between him and the Chairman of Transcorp, Tony Elumelu.

    “In 2005, while Tony was the Managing Director of Standard Trust Bank, he approached me to get funds to acquire UBA. I enthusiastically gave him $20 million, which was N2 billion at that time to buy the necessary shares in UBA for the acquisition. After a short period of time, the share price moved up and I decided it was a good moment to sell and get out of the bank. However, Tony appealed to me to hold on to the shares as he was convinced that there were future prospects – so, I kept the shares.

    “I became Chairman of Transcorp Hotel in 2007 with a shareholding of five per cent and unknowingly, Tony gradually started buying shares quietly.

    “By the following year in 2008, I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.

    “Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.

    “Years later in 2012, Tony said he wanted to see me, so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbid me by offering to buy the plant for $300 million,” he said.

    Otedola went on to add that his offer to buy Transcorp was “made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.

    “It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.”

    He, however, lamented that stakeholders in Nigerian companies were getting shortchanged by the owners and managers.

    “I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders,” he added.