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Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply

Nigerian Electricity Regulatory Commission says international electricity customers remitted the sum of N2.04billion to Nigeria in three months.

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Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply, NERC postpones increase of electricity tariffs

Nigeria’s international electricity customers – Togo, Niger, and Benin, remitted the sum of N2.04billion in the first quarter of 2020, as their outstanding electricity bill to the Market Operator (MO) of the sector in Nigeria.

This was found in the Nigerian Electricity Regulatory Commission 2020 first quarter report, which was released recently.

READ: FG to inject over N198 billion on capital projects in power sector in 2021

According to the report, a total of N4.05billion ($13.22million) invoices were issued by the MO to international customers including Societe Nigerienne d’electricite or NIGELEC; Societe Beninoise d’Energie Electrique (SBEE); and Compagnie Energie Electrique du Togo (CEET).

The commission stated that during the quarter, NIGELEC made a payment of ₦1.61billion ($5.27million) as part of its outstanding bills for the energy received from NBET and services rendered by the MO.

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READ: Nigeria to fix irregular power supply in 40 years- Senate

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It stated, “Similarly, SBEE paid ₦0.43billion ($1.39million) in respect of services received from MO.

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“It was noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC) had partly contributed to liquidity challenges being experienced in the industry.

“The settlement ratio to the expected Minimum Remittance Thresholds, having adjusted for tariff shortfall, indicated that power distribution companies needed to improve on their performance.”

READ: Shell to cut 9,000 jobs globally due to oil price crash as it shifts to clean energy

But

Special customers like Ajaokuta Steel Co. Ltd and others in its environs did not make any payment in respect of the N0.27billion and N0.05billion invoices issued to them by the Nigerian Bulk Electricity Trading Plc and the MO respectively, during the period under view.

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Meanwhile, the power distributors failed to remit N119.88billion to the sector within the same period.

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READ: FG set to create at least 5 million jobs for youths in the power sector – Minister of Power 

Whereas Discos were expected to make a market remittance of 46.09% during 2020/Q1, only 32.53% settlement rate was achieved within the timeframe provided for market settlement in the Market Rules,” it added.

What it means: The Discos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT and they are expected to improve on their performances.

READ: Apapa Command’s revenue rises 10.59% to N227.3 billion in the first half of 2020 – Customs 

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Energy

President Buhari calls for alignment of capacity, attraction of investments across power sector

President Buhari has called for the alignment of capacity and attraction of investments across components of the Power Sector’s value chain.

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President Muhammadu Buhari has called for the alignment of capacity and attraction of investments across the generation, transmission and distribution components of the Power Sector’s value chain.

This was disclosed by the Minister of Power, Engr Salam Mamman, who represented the President, in a speech read at the  launch of Eko Electricity DisCo’s Supervisory Control and Data Acquisition (SCADA) system in Lagos on Thursday.

He said, “We must ensure that there is an alignment of capacity and attraction of investments across the generation, transmission and distribution components of the Power Sector’s value chain.

“I acknowledge the Central Bank of Nigeria’s (CBN) financial support towards this project through the Nigeria Electricity Market Stabilization Facility granted in 2015. This facility significantly led to the successful completion of this project.

“My administration remains committed to addressing the liquidity challenges which are adversely affecting the Power sector’s viability. We have noted with grave concern: The increased fiscal burden on the Federal Government (FG) occasioned by the tariff shortfalls in the sector which are no longer sustainable.”

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Bottom line

It is obvious that the CBN’s Payment Assurance Facility (CBN PAF) targeted at supporting tariff shortfalls can no longer be extended and must be phased out to allow the sector’s financial independence.

The government is also aware that these tariff shortfalls sit on DisCos’ books and impair their ability to raise capital and invest.

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Energy

FG to begin online registration, monitoring of petrol stations, depots

The DPR has stated that it will commence the remote monitoring, registration, and accreditation of all petroleum products depots.

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FG to begin online registration, monitoring of petrol stations, depots

The Department of Petroleum Resources (DPR) has revealed that it plans to automate and begin remote monitoring, registration, and accreditation of petroleum products depots, retail outlets, and the entire downstream oil and gas industry, with the launch of the newly established Downstream Remote Monitoring Systems (DRMS).

While disclosing a statement in Abuja, the Head, Public Affairs of the DPR, Paul Osu, pointed out that the newly established Downstream Remote Monitoring Systems is expected to take off on December 1, 2020, after the launch in Abuja.

READ: Nigeria’s 5,000 BPD refinery will produce 271 million liters of petrol every year

According to a report by Vanguard, Osu explained that the DRMS is a web-based solution designed to provide intelligent regulatory and inventory management system for petroleum products supply and distribution from depot to retail outlets and also as a regulatory tool to monitor retail outlets and depot activities.

He said, “Other features of the application include retail outlets accreditation and re-registration, nationwide automated product inventory management, retail outlets coordinate recording for mapping purposes and transactions management and report generation of dealers nationwide.

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READ: NNPC says local operators must improve capacity to achieve low cost of oil production

“The establishment of DRMS is another strategic initiative of DPR to continue to create opportunities and enable business in the oil and gas industry in Nigeria.”

It can be recalled that the DPR had a few months ago, launched the National Production Monitoring System (NPMS), another online platform to assist the oil and gas regulator accurately monitor national crude oil production and exports, through the provision of a system for direct and independent acquisition of production data from oil and gas facilities in Nigeria

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READ: House of Reps summon Emefiele, NNPC GMD over unremitted N3.24 trillion

This is to ensure timely and accurate reporting of production figures and export data. This is also expected to guard against the crude oil theft that is prevalent in Nigeria’s upstream oil sector or reported cases of crude oil that is sold but unaccounted for.

The NPMS is an initiative that is developed as a replacement for the current paper-based report and ensures ready production reporting to the Federal Inland Revenue Service (FIRS) and the Nigeria Extractive Industries Transparency Initiative (NEITI) and other agencies.

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Energy

DPR approves new Liquefied Petroleum Gas guidelines for investors, operators

DPR has announced the introduction of new guidelines to accommodate more LPG investors and operators across the country.

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FG directs 9,000 filling stations to install gas facilities, FG discloses when Nigeria will start exporting petroleum products, DPR closes seven gas firms in Lagos, plans to close more

The Department of Petroleum Resources (DPR) has announced the introduction of new guidelines to accommodate more Liquefied Petroleum Gas (LPG) investors and operators across the country as part of its policy on gas.

This initiative by the oil and gas regulator is part of the measures aimed at enhancing the availability of LPG, also known as cooking gas in Nigeria, in addition to meeting the current administration’s target of 5 million metric tonnes of domestic, commercial and industrial LPG utilization in the next 10 years.

READ: Credit to Nigerian economy falls to N38.67 trillion

According to a report by ThisDay, the disclosure was made by the Zonal Operations Controller of DPR, Ayorinde Cardoso, while speaking with journalists during a public sensitization exercise on safe usage of LPG.

Cardoso stated that the federal government through the National Gas Expansion Programme was committed to making gas accessible and affordable for Nigerians.

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READ: Tesla up 500% in 2020, near $500 billion market value

He said, “We have a lot of people coming into the sector to invest and DPR is on ground to ensure that they follow the regulatory requirements. We have brought out new guidelines to encourage investors and anybody that wants to operate in the sector to follow the guidelines.

“DPR is also collaborating with the Lagos state government and other stakeholders to improve safety in gas storage, sales and distribution.”

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READ: DPR releases guidelines for establishment and operations of downstream gas facilities

What you should know

Nairametrics had earlier reported that as part of its new policy on gas, DPR had moved against illegal operators of gas facilities with the shutdown of 85 LPG plants in Lagos in the last 10 months. It stated that the plants were shut down for not complying with international safety standards and operating without approval or license from the DPR.

The Federal Government had encouraged stakeholders and investors to invest in the LPG sector to accelerate the development of the domestic gas market.

READ: How to access CBN’s N250 billion intervention fund for gas sector

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It can be recalled that the FG through the Central Bank of Nigeria had set up a N250 billion intervention facility for the national gas expansion programme, with the specific target at making Compressed Natural Gas (CNG) the fuel of choice for transportation as against petrol and LPG for domestic cooking, captive power, and small industrial complexes.

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