In order to execute the recent electricity deal signed by the Federal Government of Nigeria and German-based company, Siemen, Nigeria may spend about €3.11 billion or N1.15 trillion across four major states.
According to the Technical and Commercial Proposal obtained, the Nigerian electrification project which has three phases and is aimed at achieving 25,000 megawatts of electricity in the country by 2025 will require more than N1.15 trillion to execute.
The details: According to the information contained in the technical proposal, the budgetary price for the transmission assets upgrade, which includes 11 containerised substations and 10 mobile substations is €330 million or N113.42 billion.
- Similarly, the cost of the distribution assets upgrade was estimated at €250 million (N85.92 billion). The upgrade would include products and systems for 14 stations and upgrade of 26 substations.
- According to the proposal, the power system simulation which would entail new software licences for the Transmission Company of Nigeria (TCN) was put at €192,000; software M&S for TCN (€182,000); training and technical services support for TCN (€1.35 million); new software licences for 11 distribution companies (€1.41 million); software M&S for Discos (€848,000) and training and technical services support for Discos (€1.81 million).
- Lastly, the cost of system development studies for 25,000MW transmission, sub-transmission and distribution grid capacity was put at €1 million.
The Back Story: President Muhammadu Buhari signed the Nigerian Electrification Roadmap which was presented by Siemens in November 2018. The deal was facilitated by the German Chancellor, Angela Merkel last year, in August.
- The deal was signed in Abuja with the Global Chief Executive Officer of Siemens, Joe Kaeser. The agreement came months after the leading supplier of systems for power generation held several meetings and consultation across Nigeria.
- Speaking about the roadmap deal, President Buhari said, “we are making an important move towards addressing Nigeria’s electricity challenge. Our goal is a simple one: to deliver more electricity to Nigerian businesses and homes.”
Execution Phases: According to the proposal, the second phase of the project execution is targeted at increasing the grid capacity from 7,000MW (expected to be achieved in phase 1) to 11,000MW.
Basically, for the new power generation to support central and northern regions, it was revealed in the proposal that “The Nigerian National Petroleum Corporation is already in the process of developing the Ajaokuta-Kaduna-Kano Pipeline Project and the establishment of power plants in Abuja, Kaduna, and Kano states.”
In order to achieve this, Siemens and other participants will focus on transmission and distribution assets upgrade including the North East Transmission Infrastructure Projects 2; supervisory control and data acquisition for Discos; 40MW embedded power project in Abuja, and gas processing projects to ensure fuel availability.
It was further disclosed that: “Siemens proposes a gas processing facility for 300 million standard cubic feet per day from existing flare gas assets for the generation of about 1,200MW of electricity within 36-48 months.
“The 40MW embedded power project was estimated to cost $770 — $815 per kilowatt, depending on the scope of supply and location, among others, amounting to about $31.68m (N9.72bn).”
The third phase according to the proposal would focus on additional transmission and distribution assets upgrade and large-scale power project in order to increase the grid capacity from 11,000MW to 25,000MW.
The projects will be executed in four states in Nigeria. The proposed projects are 1,350MW in Abuja; 1,350MW, Kaduna; 1,350MW in Kano, and 450MW in Lagos (Agura).
The budgetary cost of the Abuja, Kaduna and Kano projects is an average of €700/kW, while that of Lagos is €600/kW, amounting to about €3.11 billion ( N1.07 trillion).
In the meantime, it was stated that the current estimations are still subject to changes based on additional information on the specific projects, location, financing and contractual terms and conditions.
MRS Oil announces resignation of its MD, appoints an acting MD
The disclosure was made in a notification by the oil marketing giant.
Oil marketing giant, MRS Oil Nigeria Plc, has announced the resignation of its Managing Director, Mrs Priscilla Thorpe-Monclus with effect from August 5, 2020, and the subsequent appointment of Mr Marco Storari as the Managing Director in an acting capacity.
The oil firm also announced the resignation of one of its directors, Mr Christopher Okorie, also with effect from August 5, 2020.
The disclosure was made in a notification by the oil marketing giant, which was sent to the Nigerian Stock Exchange (NSE) on August 7, 2020, and signed by its Company Secretary O.M. Jafojo.
The statement from MRS Oil Nigeria Plc reads:
“At the Board Meeting of August 5, 2020, the Board of Directors of MRS Oil Nigeria Plc, considered and approved the resignation of Mrs Priscilla Thorpe-Monclus as Managing Director and Director of the Company, and the resignation of Mr Christopher Okorie as Director of the Company, effective August 5, 2020.
“The Board of Directors also considered and approved the appointment of Mr Marco Storari as Director and Managing Director (Acting) of the Company.’’
According to the statement, Mrs Thorpe-Monclus, during her tenure as the Managing Director, showed great commitment and dedication in her drive for the new MRS Brand, which resulted in the unveiling of three new retail outlets in Lagos, one in Owerri, two in Kano and two new outlets in Abuja. It also resulted in an overall business turnaround for the oil company.
The board commended the efforts of Mrs Thorpe-Monclus and Mr Okorie to the growth of the company and wished them the best in their future endeavours.
Mr Marco Storari, on the other hand, is a seasoned leader with more than 3 decades’ experience in the management, shipping, trading and terminal operations in the industry. He has held various high-level positions where he recorded business successes in companies in Italy, Monaco and Nigeria.
He was, until his appointment as Acting Managing Directors, the Group Executive Director, Storage and Terminal for MRS Holdings Limited. He has been a driving force in the transformation of the MRS Group over the last 10 years.
The Board of Directors of MRS has expressed its confidence in the ability of Storari to bring to bear his wealth of experience in the industry, to improve business efficiency.
MRS Oil Nigeria Plc is a fully integrated and efficient downstream player, with leading positions in the Nigerian Oil Industry. The oil firm, with its head office in Nigeria’s commercial capital, Lagos, previously traded under the name Texaco Nigeria Plc. It has 3 business units namely sale of petroleum products at retail outlets, sale of aviation fuel, and blending of lubricants.
Ogun State initiates tax relief scheme to cushion effects of COVID-19
Governor Abiodun urged taxpayers in the state to make use of the relief packages.
The Ogun State Government has announced that its Internal Revenue Service would launch tax relief packages to cushion the economic effects of the COVID-19 pandemic on taxpayers in the state.
This was announced by the State Governor, Prince Dapo Abiodun, on Saturday morning through a statement that was issued via his official Twitter handle.
Governor Abiodun urged taxpayers in the state to make use of the relief packages which include a 6 month extension of the 2019 income tax returns deadline for self-employed residents from March 31, 2020 to September 30, 2020.
He also granted an “8-month extension of filling of 2019 annual PAYE returns by PAYE operators/tax agents from January 31, 2020 to September 30, as well as complete waiver of interest and penalty for late filling for the extension period.”
I have approved certain tax reliefs to be immediately effected by the Ogun State Internal Revenue Service towards cushioning COVID-19 economic effects on our taxpayers. These include: pic.twitter.com/SIyEBt26G4
— Prince Dr. Dapo Abiodun – MFR (@dabiodunMFR) August 8, 2020
Other packages include a total waiver of interest and penalties for late remittances of PAYE for the extended period, and a waiver for late payment of Personal Income Tax, which would run from January 1, 2020 to December 31.
Finally, the state granted a waiver on weekly tax payments by operators of betting and pool businesses from April 1 to June 30, 2020.
The Governor said that the state’s Tax Audit Reconciliation Committee (TARC) would run its operations through video conferencing to “continue ensuring ease of doing business while maintaining physical distancing.
COVID-19: World Bank approves $114 million response funds for Nigeria
FG is expected to provide grants from the CoPREP to the 36 states and the FCT.
The World Bank has approved the sum of $114 million to assist Nigeria in its fight against the coronavirus pandemic.
The fund is to help Nigeria prevent, identify and respond to the dangers associated with the coronavirus disease with special focus on the various states and the Federal Capital Territory.
This was disclosed in a statement from the bank on Friday, August 7, 2020.
According to the statement, the funds come in the form of $100 million credit facility from the International Development Association (IDA) and $14 million grant from the Pandemic Emergency Financing Facility.
It also states that the Federal Government is expected to provide grants from the COVID-19 Preparedness and Response Project (CoPREP) to the 36 states and the Federal Capital Territory.
The World Bank Director for Nigeria, Shubham Chaudhuri, in a statement on Friday, said, “Nigeria has ramped up its efforts to contain the Covid-19 outbreak, but more needs to be done at the states level, which are at the front line of the response.”
He disclosed that the project would provide the states with the much needed direct technical and fiscal support in order to strengthen their position in the fight against the pandemic.
The World Bank Chief also pointed out that the project would finance federal procurements of medical equipment, laboratory tests and medicines to be distributed to the states based on their needs.
According to the World Bank, CoPREP would finance further support to all the 36 states and the FCT through the NCDC to implement the COVID-19 Incident Action Plan.
Nigeria has recorded about 45,687 confirmed cases of the coronavirus disease with 936 fatalities and 32,637 people discharged as at August 7, 2020. Some serious concerns have been raised about the country’s testing capacity, which though has improved is still regarded as inadequate.