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Power generation drops, as GENCOs now operate below capacity

The total power generation in Nigeria has been moving between 3,000 megawatts and 3,500 megawatts in the last few months.

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GENCOS, Electricity, Power plant

Power generating companies (GENCOs) operating in Nigeria are now compelled to operate below their maximum installed-capacity, just as the total power generation in Nigeria has been hovering between 3,000 megawatts and 3,500 megawatts in the last few months.

According to the Nigeria Electricity System Operator, Nigeria’s total power generation stood at 3,741.30 MW of electricity as at 6 am on Sunday, October 28, 2018.

Why is Power Generation Dropping

Responding to the drop in power generation, the Executive Secretary, Association of Power Generation Companies, the umbrella body for the GENCOs in Nigeria, Dr Joy Ogaji, traced the cause of the problem to the distribution and transmission chains of the power channel.

She said,

“Specifically, generation companies are pinned down by some operational impediments. The frequency of instructions to either increase load or decrease load (ramp up and ramp down) and, in some cases, shut down, has induced damaging stresses to the components of the machines.

“These instructions, reflective of the grid behaviour, are subjecting key electrical components of the power plants to operational stresses. Our available generation has always been steady between 7,500MW and 8,000MW; you can check the records at the National Control Centre, Osogbo.”

The Executive Secretary also stated that the Transmission Company of Nigeria (TCN), via its subsidiary, the System Operator/NCC, now use generation plants as regulating power reserve to stabilise the national grid.

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She added:

“Some of the machines, for instance, with 145MW capacity, are subjected by the NCC to operate at 70MW, if not less on daily average, which constitutes 50 per cent base load value,”

She further accused the TCN of refusing to put some prescribed solutions in place, such as procurement of regulating and spinning reserve as well as tools to be developed. She also added that TCN’s inability to do these have forced the GENCOs to be operating outside their factory installed capacities.

DISCOs Estimated Billings To Reduce

It will be recalled that the Nigerian Electricity Regulatory Commission (NERC) two weeks ago announced that, it has concluded plans to put limits on the idea of estimated billings, currently used by the 11 Power Distribution Companies (DISCOs), as a result of numerous complains of bogus bills from electricity consumers nationwide, after five years of power sector privatisation.

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FrieslandCampina WAMCO completes purchase of Nutricima’s dairy business, positions its business in Nigeria for growth

Nutricima’s dairy business will be integrated into FrieslandCampina WAMCO Nigeria PLC.

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FrieslandCampina WAMCO has completed the purchase of Nutricima’s dairy business in Nigeria. In March FrieslandCampina and PZ Cussons signed an agreement regarding the acquisition. Nutricima’s dairy business will be integrated into FrieslandCampina WAMCO Nigeria PLC.

Nutricima Limited (the “Company”) was founded in Nigeria in 2005 and has earned itself consumer awareness within the dairy industry since then. FrieslandCampina WAMCO has acquired the Company’s production facility in Ikorodu, Lagos State and the brands Olympic, Coast and Nunu, a range of powdered, evaporated and ready to drink milk products. These brands have a good presence across the Nigerian dairy market.

This acquisition underlines FrieslandCampina WAMCO’s continued commitment to contribute to the development of the Nigerian dairy sector. The acquisition satisfies the need for additional production capacity for FrieslandCampina WAMCO to meet the growing demand for locally produced evaporated and powdered milk by Nigerian consumers.

According to Roel van Neerbos, President of FrieslandCampina Consumer Dairy, “FrieslandCampina WAMCO has been a key player in Nigeria since 1954. With this acquisition, we demonstrate our strong commitment to Nigeria and its dairy market.”

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Ben Langat, Managing Director of FrieslandCampina WAMCO Nigeria said “It is our mission to bring affordable and attainable quality dairy products to all Nigerians and meet the growing demand. That’s why we are pleased with this acquisition.”

Over the last few years, FrieslandCampina WAMCO has invested significantly in capital expenditure, including a new warehouse and a world-class Learning Academy to build capabilities across functions and to drive talent development. Recently, the company commissioned a state of the art plant for local production of Peak Yoghurt, which is directly linked to its highly successful dairy development programme; a major investment that has been at the center of Nigeria’s backward integration in local milk sourcing over the last decade with over 9000 local farmers spread across 5 States in Nigeria.

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FrieslandCampina WAMCO will continue to expand its portfolio, particularly through low unit price packs and by strengthening its distribution reach in the market.

Having fulfilled all requirements including requisite shareholders and regulatory approvals, FrieslandCampina WAMCO has commenced operations at the newly acquired plant.

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Cryptocurrency

BREAKING: Over 1,000,000 stolen XRP transferred from Kucoin to major crypto exchanges

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Ripple’s chairman transfers 500,000,000 XRP

In a series of tweets by Whale Alert, an advanced crypto tracker showed how crypto robbers transferred over a million XRP stolen from Kucoin to crypto exchanges like BYEX, Binance, in more than eight transactions at the time this report was written.

Here are some of the transactions captured by Nairametrics:

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Recall Nairametrics about two days ago broke the news when KuCoin Global CEO, Johnny Lyu in a statement disclosed yesterday about a reported hack lately in detail after private keys linked to crypto wallets got exposed and might have affected $150 million in user funds.

He added by saying the findings of the internal security audit report, revealed part of  Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the crypto exchange, which contained few parts of the total assets holdings.

More details will be released as the story is developing …

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Business

HealthPlus crisis: Alta Semper directors reported to Police for trespassing

HealthPlus has made a formal complaint to the Police following its ensuing battle with Alta Semper.

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HealthPlus crisis: Alta Semper directors reported to Police for trespassing

Nigerian Pharmacy Chain, HealthPlus Ltd which is in a battle for control with private equity firm Alta Semper Capital took a new twist as Health plus reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.

In a letter sent to the Assistant Inspector General of Police on the 25th of September, HealthPlus stated, “We had the presence of unknown persons around our head office locations.”

READ: FG apologizes, says Self-Certification directive is not for everyone

The locations stated were 4 HealthPlus branches in Lekki, Lagos.

HealthPlus stated further, “We are aware that there are unauthorized and illegal plans by certain persons to take over our company premises to steal sensitive company property and assets, and ultimately take over operations of the company”

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The 4 persons mentioned by HealthPlus are; Zachary Fond and Ivan Genadiev (both Alta Semper Directors), Ernest Eguasa, CFO of company and an unidentified middle-aged white man.

Explore the Nairametrics Research Website for Economic and Financial Data 

Niarametrics reported last week that HealthPlus Limited appointed Chidi Okoro as Chief Transformation Officer.

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However, the announcement set off a chain of allegations and counter-accusations, including online media mudslinging with both sides trying to court public sympathy for who is in control of the company.

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