Energy
DPR to enforce safety standards in tank farm operations
DPR boss revealed that tank farm operators will be forced to comply with the safety regulations of the agency.
The Department of Petroleum Resources (DPR), has promised to enforce safety practices in tank farms operating in the country, and will not allow it to be compromised.
The disclosure was made by DPR’s Zonal Operations Controller, in Port Harcourt, Mr. Bassey Nkanga, during a tour of tank farms with the House of Representatives Ad-hoc Committee, on the relocation of tank farms from residential areas.
He said, “DPR will continue to improve, we talk safety and safety is our watchword. The oil and gas industry knows that our vision on safety, cannot be compromised. But in the event of lapses, we allow room for correction until the required compliance level is met in terms of minimum safety requirements.”
According to the News Agency of Nigeria, the DPR boss revealed that tank farm operators that are within his jurisdiction, are aware of the safety regulations of the agency.
Nkanga said, “So far, what we saw today is quite commendable, the few lapses detected could be improved upon and I believe that affected companies will also make necessary improvements soon.”
On his own part, the Chairman of the ad-hoc committee, Mr. Sergius Age, said that there was a need for collaboration amongst the relevant government agencies.
He said, “When we started this task some months back, the various agencies were actually at each other’s throats. But today, there is better cooperation among them. I believe that by the time we shall be presenting our reports, they will all be working in synergy. Our emphasis has always been on safety compliance. We look forward to having a breakdown on collaboration among relevant agencies, such as the Federal Fire Service, the Nigerian Ports Authority, Federal Ministry of Environment, NIMASA, and others. We are determined to also ensure that operating tank farms, conform to operational guidelines of the DPR. From our findings today, one of the facilities we inspected, we saw about 24 storage tanks sited at close range, we observed issues with their offset that is too close. This simply means that all storage tanks are exposed to possible danger if there is an incident of a fire outbreak. For others, the water sprinkles were not optimally functional and the hydrants were not also as forceful as we expected.”
The Ad-hoc committee chairman pointed out that that tank farm operators should put mechanisms in place to effectively manage some accidents that can occur after official hours.
Energy
Nigerian firm set to raise $1.2 billion to purchase electricity meters
MAPCo plans to raise N480 billion to purchase electricity meters and to help the DISCOs plug revenue gaps in their operations.
A Nigerian firm, Meter Assets Finance and Management Company (MAPCo), has concluded plans to raise N480 billion ($1.2 billion) over the next 3 years, to purchase electricity meters and help the electricity distribution companies (DISCOs) plug revenue gaps in their operations.
This is also in line with the Federal Government’s initiative to ensure that all electricity consumers are metered, which will put an end to estimated billing by the DISCOs.
According to a report from PricewaterhouseCoopers, less than one-tenth of Nigeria’s 41 million households have their electricity consumption metered, and half of those are faulty. As a result, distribution companies have to estimate bills, resulting in constant conflict with the consumers that delay payments.
The Chief Executive Officer of New Hampshire Capital, Onion Omonforma, said the Meter Assets Finance and Management Co. hopes to end the practice of estimated billings by raising funds to purchase and supply meters to consumers.
New Hampshire Capital, FBNQuest and Kairos Investments Africa are helping to package and structure the venture, known as MAPCo, for investors to either buy equity or inject debt into the company.
What they are saying
Omonformaa said, “The electricity distribution firms will then have the money to go back and buy more meters and the cycle continues, paving the way to close the metering gap. MAPCo will collect the cost of the meters from consumers at a premium over the next 10 years. The meters will be handed over to the power-distribution companies once paid off.’’
While disclosing that MAPCo plans to issue a N100 billion bond in the next year, Omonforma also pointed out that roadshows have been planned for the U.S. and Europe, and will include local institutional investors.
He said, “We envisage that a lot of people who are looking for a long-term instrument will key into it,”
It can be recalled that apart from repealing the estimated billing methodology in determining tariffs for electricity consumers; the Federal Government had insisted that all consumers must be metered, as part of the condition for a tariff increase.
Also, as part of the agreement reached with the organized labor in respect of the tariff increase; the Federal Government disclosed that the National Mass Metering Programme will be accelerated, with the distribution of 6 million meters to Nigerians for free.
What this means
A huge number of electricity consumers across the 36 states and the FCT are still unmetered by their respective DISCOs. This initiative by MAPCo will help bridge the existing gap, with more electricity consumers acquiring a prepaid meter and doing away with the controversial estimated billing.
Energy
N1.5trillion accumulated losses of NNPC, a serious going-concern risk – PWC, SIAO Partners
The auditors of NNPC have raised doubts over the inability of the Corporation to continue as a going concern following rising and humongous losses.
According to the recently published 2019 Audited Financial Statements, the Nigerian National Petroleum Corporation (NNPC) Group and Corporation had an accumulated loss of N1.9 trillion and N474 billion respectively. The Auditors of NNPC, made up of Pricewaterhouse Coopers, SIAO Partners, and Muhtari Dangana & Co. have raised serious doubts over the inability of NNPC to continue as a going concern following rising and humongous losses, resulting in the negative capital base.
READ: U.S. budget suffers a deficit of $3.1 trillion in 2020, as pandemic slams the economy
In their report, the auditors disclosed that there is an existing material uncertainty that casts significant doubts on the ability of the NNPC to escape bankruptcy – as there are serious impairments on the company’s ability to generating sufficient revenues to meet its immediate obligations as at when due.
READ: NNPC reveals survival strategies to cope with oil sector downturn and new normal
What you should know
- In its joint report to the stakeholders, the auditors gave an unmodified opinion and drew attention to the fact that the NNPC Group and Corporation recorded net losses of N1.8 billion and N107.8 billion respectively in 2019, compared to N803.1 billion and N254 billion in 2018 respectively. While its current liabilities exceed its current assets by N4.4 trillion and N1.1 trillion for the Group and Corporation respectively, compared to N3.3 trillion and N968.7 billion in 2018 respectively.
- NNPC Group and Corporation’s current assets, according to the financial statements, stood at N5.3 trillion and N4.5 trillion in 2019, while total current liabilities stood at N9.7 trillion and N5.6 trillion respectively.
- In 2018, NNPC Group and Corporation’s total current assets stood at N5.4 trillion and N4.8 trillion respectively, while total current liabilities stood at N8.7 trillion and N5.7 trillion respectively.
- The accumulated losses according to the financial statement are approximately N1.5 trillion and N474 billion, compared to N1.6 trillion and N490.7 billion for the Group and Corporation in 2018 respectively.
READ: NNPC explodes, denies custody of $3.5 billion subsidy fund
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What to expect
- The Management of the corporation is currently executing robust mitigation procedures, as it is receiving the requisite support from the Federal Government to ensure that the Group and Corporation have adequate resources to continue in operational existence for the foreseeable future.
- To make the Group and Corporation commercially viable, the Federal Government had commenced the elimination of cost drivers responsible for the accumulation of the shortfalls in settling Domestic Crude Obligation; and the introduction of the Price Modulator mechanism in the Petroleum Products Pricing Regulatory Agency (PPPRA) template, designed to eliminate the major cause of the losses.
- The Federal Government is also minimizing breaches to the country’s pipeline networks; pursuing the passage of the Petroleum Industry Bill, PIB, and its implementation, which would restructure the petroleum industry, improve transparency and governance, and also give the NNPC the autonomy to operate profitably.
- The NNPC Management further revealed the plans to recapitalize the NNPC with steps to resolving all the outstanding related party payables and receivables and enable a clean slate start prior to recapitalization.
READ: Nigerian Stock market records sixth consecutive losses, investors lose N15.55 billion
Energy
FG to inject over N198 billion on capital projects in power sector in 2021
The Federal Government plans to inject N198.27 billion on various capital projects in the power sector across Nigeria in 2021.
The Federal Government plans to inject N198.27billion on various capital projects in the power sector across Nigeria in 2021.
This was disclosed in the 2021 Appropriation Bill, which President Muhammadu Buhari presented to the National Assembly recently.
READ: Buhari presents N13 trillion 2021 Budget to National Assembly
Breakdown:
* National rural electrification, managed by the Rural Electrification Agency, will invest a total of N17.86billion on power infrastructure development in rural communities.
READ: CBN to sanction exporters who default on export proceed number
* The Nigerian Electricity Regulatory Commission plans to invest N294.1million on capital projects, while capital projects to be handled by the Nigerian Electricity Management Services Agency will gulp N441.1million.
* The allocation for capital projects to be handled by the Transmission Company of Nigeria, as contained in the proposed budget, is N4.69billion.
READ: Buhari earmarks N420 billion for N-Power, GEEP and others under NSIP in 2021 budget
* The capital outlay projected for 2021 by the Nigeria Electricity Liability Management Limited is N914.87million, while the National Power Training Institute targets to invest N294.1million.
* The total overhead for the entire ministry and its agencies was N1.16billion.
* The amount budgeted for personnel in the power ministry and its agencies is N4.9billion.
READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers
COVID-19 Update in Nigeria
Breaking: Senatorial, State House of Assembly bye-elections postponed – INEC
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COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦461/$1
#EndSARS: Tinubu says he has no investment in LCC, collects no dime from Lekki Tollgate
Sanwoolu says curfew may be partially lifted
Naira stabilizes in forex markets as dollar supply hits record low during curfew
