Connect with us
nairametrics

Business News

Nigeria’s Power sector loses N117.8 billion in 66 days

Nigeria’s power sector has lost no less than N117.8 billion to gas shortage between January to March 2020, findings have shown. 

Published

on

Power sector loses N19.15 billion to gas shortages, transmission infrastructure challenges, Power sector loses N117.8 billion in first 66 days of 2020

Nigeria’s power sector has lost no less than N117.8 billion to gas shortages and others between January to March 10, 2020. This was disclosed in the review of the sector in the outgoing first quarter (Q1), 2020 by the Federal Ministry of Power.

The development showed that the sector lost as much as N2 billion daily in some days during the period under review, with the lowest loss pegged at N1.47 billion on February 4, 2020.

Hike in electricity tariff inevitable, as FG introduces a new policy, Power sector loses N19.15 billion to gas shortages, transmission infrastructure challenges, Second largest hydro power project in Africa to finally take off after settlement of legal dispute

Minister of Power, Sale Mamman

Data obtained from the ministry and Transmission Company of Nigeria (TCN) and the Presidency, showed that the sector started with a loss of about N54.32 billion in the first month of the year.

The loss for the month of February was N3.17 billion less at N51.15 billion, although the month also recorded the highest single daily loss of N2.31 billion on February 27. Within the first six days of March, the sector lost over N12 billion.

GTBank 728 x 90

[READ MORE: Power sector loses N19.15 billion to gas shortages, transmission infrastructure challenges)

A random pick of daily losses in January 2020 showed a loss of N1.88 billion on January 1; N1.64 billion loss on January 13; and N1.77 billion loss on January 30.

February 3 recorded a loss of N1.61 billion while N1.96 billion was lost on Valentine day and N2.1 billion on the last day of the month.

GTBank 728 x 90

The first six days in the month of March showed that the industry lost N2.21 billion, N2.21 billion, N1.97 billion, N1.87 billion, N1.93 billion and N2.16 billion respectively during the six-day period.

Most of the daily financial losses were traced to the unavailability of gas to fire thermal power plants and the lack of transmission infrastructure. The unavailability of distribution infrastructure as well as water management constraint also caused high-frequency issues on the grid, leading to even more losses.

The reports also disclosed that part of the financial losses was traced to the inability to generate a large quantum of electricity daily, due to gas shortage.

READ ALSO: AfDB to curtail Nigeria’s erratic power supply with $200 million

On February 29, 2020, for instance, a total of 3,432MW was not generated due to unavailability of gas; 110MW was not generated due to unavailability of transmission infrastructure while 816.4MW was not generated due to high frequency resulting from the unavailability of distribution infrastructure.

Also, on January 30, 2020, a total of 3,044MW was not generated due to unavailability of gas and 195.9MW was not generated due to unavailability of transmission infrastructure.

Fidelity ads

Still on the same day, 198MW was not generated due to high frequency resulting from the unavailability of distribution infrastructure, while 245MW was recorded as loss due to water management constraint.

By the 7th day of March, the TCN raised an alarm that the nation’s power sector was experiencing power supply shortage as a result of low gas supply, a development that restrained the ability of many thermal power stations to produce optimally.

Despite Power Supply constraint, Nigeria's industrial sector shows growth prospect

[READ ALSO: Power sector records N2.2 billion loss, here is why)

Why this matters: The Federal Government of Nigeria had listed the Ajaokuta-Kaduna-Kano project (AKK) gas pipeline project, the OB3 gas pipeline and the expansion of the Escravos – Lagos pipeline, for take-off in the first quarter of 2020.

However, the budget deficit resulting from the slump in global oil prices have stalled these projects, making it impossible to commence it in the Q1 2020.

These projects were targeted at reforming the power sector by improving gas supply in the thermal power stations.

Coronation ads

Ruth Okwumbu has a MSc. and BSc. in Mass Communication from the University of Nigeria, Nsukka, and Delta state university respectively. Prior to her role as analyst at Nairametrics, she had a progressive six year writing career. As a Business Analyst with Narametrics, she focuses on profiles of top business executives, founders, startups and the drama surrounding their successes and challenges. You may contact her via [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coronavirus

COVID-19 Update in Nigeria

On the 25th of September 2020, 213 new confirmed cases and 2 deaths were recorded in Nigeria

Published

on

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,062 confirmed cases.

On the 25th of September 2020, 213 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 10,526 samples across the country.

To date, 58,062 cases have been confirmed, 49,606 cases have been discharged and 1,103 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 494,577  tests have been carried out as of September 25th, 2020 compared to 484,051 tests a day earlier.

COVID-19 Case Updates- 25th September 2020,

  • Total Number of Cases – 58,062
  • Total Number Discharged – 49,606
  • Total Deaths – 1,103
  • Total Tests Carried out – 494,577

According to the NCDC, the 213 new cases are reported from 17 states- Lagos (51), Plateau (51), FCT (29), Rivers (18), Ondo (12), Oyo (9), Osun (8), Gombe (7), Ogun (7), Kaduna (5), Enugu (4), Edo (3), Jigawa (3), Kano (3), Benue (1), Delta (1), Sokoto (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,174, followed by Abuja (5,644), Plateau (3,373), Oyo (3,248), Edo (2,620), Kaduna (2,389), Rivers (2,305), Delta (1,801), Ogun (1,796), Kano (1,737), Ondo (1,620), Enugu (1,289), Ebonyi (1,038), Kwara (1,028), Abia (881), Gombe (864). Katsina (848), Osun (826),  Borno (741), and Bauchi (692).

GTBank 728 x 90

Imo State has recorded 566 cases, Benue (481), Nasarawa (449), Bayelsa (397),  Jigawa (325), Ekiti (317), Akwa Ibom (288), Niger (259), Adamawa (237), Anambra (234), Sokoto (162), Taraba (95), Kebbi (93), Cross River (87), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

GTBank 728 x 90

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

Fidelity ads

 

 

Continue Reading

Coronavirus

Lagos launches N5 billion support fund for 2,000 low-cost private schools

The Governor said the facility will benefit low-cost schools with amounts ranging from N500,000 to N5 million.

Published

on

Lagos State government has launched a N5billion support fund to help reduce the impact of Coronavirus pandemic on low-cost private schools in the state.

This was disclosed by the Governor of the state, Babajide Sanwo-Olu via his Twitter handle on Friday.

According to him, the educational sector is one of those severely impacted by the pandemic, with schools and vocational learning-centres shut since March.

He said, “With access to funding for privately owned schools and vocational training centres in the state, we are confident that this programme, under the partnership between First Bank Nigeria and Lagos State Education Trust Fund (LSETF) will help accelerate a sustainable return to learning and skills acquisition.”

GTBank 728 x 90

He explained that the facility will benefit 2,000 low-cost schools with amounts ranging from N500,000 to N5 million.

“As a responsible Government, we are obligated to provide interventions that would enable learners in schools study in line with the new normal,” the Governor Sanwo-Olu added.

The Chief Executive Officer, First Bank Nigeria, Dr Adesola Adeduntan, said “With this partnership, we are sure that registered educational institutions in Lagos State will have access to funds at subsidised interest rates to meet their needs as they reopen at this auspicious time.”

GTBank 728 x 90

Continue Reading

Business News

Paga Group relocates to the UK

Oviosu announced that he is very excited about moving to and working with the UK government.

Published

on

Paga records over $2 billion worth of transactions in 2019 , Paga acquires Ethiopian-based startup, Apposit, announces Paga subsidiaries

Paga Group has redomiciled from Mauritius to the United Kingdom (UK). The group is the holding company for its operations in Nigeria, México, Ethiopia, and the UK.

This was disclosed by the Chief Executive Officer and founder, Paga, Tayo Oviosu on Friday.

Why it matters: The company took the decision due to bureaucratic challenges it faced last year.

He said, “The laws and courts of Mauritius are not very fast-moving, and the rules are difficult. I’ve had one court case that was eventually thrown out after a year.

GTBank 728 x 90

“In the UK it would have been thrown out immediately, and the person would have had to pay us for our lawyer fees.

“Basically, not an easy place to do business. It is more painful than useful. I say stick to good ol’ America or UK or Netherlands or Luxemburg. Where you know there are professionals, and the legal system works.”

Oviosu said he is very excited about the move, looks forward to working with the UK government to promote trade with the UK.

GTBank 728 x 90

The Paga Group has raised $34.7 million in funding so far, according to Crunchbase.

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
Advertisement
IZIKJON
Advertisement
Fidelity ads
Advertisement
first bank
Advertisement
bitad
Advertisement
deals book
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement