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How and Why Goodluck Failed to Fix Electricity

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Prof. Chinedu Nebo, former minister of Power, has asked the new government to wield the big stick which the immediate past government could not muster to deliver reliable electricity power supply to Nigerians.

The Guardian reported that Nebo also gave excuses why the government he served for two years and three months failed to improve electricity supply in the country.

He advised President Muhammadu Buhari, to “Wield the big stick and ensure there is gas to power if power generation is to improve.’’

Blaming inadequate gas supply and vandalism for the failure of the government he served, Nebo claimed that there are huge investments in the National Integrated Power Project (NIPP) and other investments in power generation had led to a historic 6000 megawatts installed generation capacity at handover.

Nebo said: “I hate excuses. But I would say that commitments were made to give us gas, but we didn’t get the gas. It is just as simple as that. It is very painful. I also blame vandalism.

According to the Guardian, but much of the blame goes to the oil firms and gas producers for what I consider their hypocrisy.

“They have been hypocritical with this whole issue of making sure that we have gas and helping us bring Nigerians out of darkness.”

He accused gas producers of being more interested in exporting the nation’s gas and diverting what remained for the domestic market to industries, instead of the power sector where it is greatly needed.

On generation, he said: “I regard the NIPP project as a huge benefit to this country. It wasn’t President Goodluck Jonathan’s administration that started it. It was started under the Olusegun Obasanjo administration, but it was left to fizzle out until President Jonathan came on board. He re-energised it and got all the three arms of government to agree to continue and complete the 10 plants.

‘‘In fact, the NIPP projects are contributing more power than the legacy Power Holding Company of Nigeria (PHCN) power plants to the national grid today. I would say that Jonathan’s administration did phenomenally well. Most of the NIPP projects had been completed, with a few on-going.

‘‘Again, privatisation and commercialisation of these plants are still ongoing. The completion of the privatisation of the other assets of PHCN was wonderful, because the entire process was adjudged to have been very transparent by global referees and umpires who observed the whole process and who certified it was very accountable.

“Since then, the private sector has injected so much to revive ailing turbines, much more than government could ever have found the money to do. Today, we have Egbin Power Plant adding over 220mws, Ughelli over 400mws.

But my two regrets, however, are that we lost the war against vandalism and we lost the war against inadequate gas supply.

“This new government should take a cue and make sure that the petroleum sector does what it ought to do to make sure that there is enough gas going to the power plants. It is very critical. If the new administration does not do that, Nigerians are going to keep suffering in darkness.”

On vandalism, he noted: “I do hope that the administration would also fight vandalism and bring the vandals to their knees. If we don’t do that, we are still going to have a problem. Every two weeks, the gas pipelines are blown up.
It takes two weeks to fix them only for them to be blown up again within 24 to 48 hours of fixing.

‘‘It cost over N120 million and thereabouts every month to fix the pipelines that are damaged. But recently, it is costing over N1billion plus to make sure that the integrity of the transportation of the gas-to- pipeline is maintained.

“I think it is scandalous that we produce over 5 billion scf of gas every day, sell 4 billion and retain only 1 billion scf for local use. The one for local use is preferentially given to industries and not to power, starving the power sector of the needed gas to industrialise this country and I think that is a shame.”

He was full of encomiums for Jonathan, noting that a good foundation had been established in power generation capacity.

He said: “For generation, as I have said, the NIPP projects have been great and many of them are coming on board, and more and more plants would be ready. If there is gas, it shouldn’t take long before every Nigerian would know that a lot happened in the last few years with regard to the power sector.

‘‘It is very important that we look at the score cards.

For two years and three months, I was Minister of Power. Looking back, it hasn’t been a bed of roses. Even if it were a bed of roses, when you have roses, you have thorns. In fact, sometimes, we have seen more thorns than the roses. But we are grateful to God that the power sector has really come a long way.”

“Thankfully, a lot of funding has being injected into the transmission infrastructure. The grid is being strengthened, and for the first time, we were able to hit a peak of over 100,000 mega watts hours in a day within the Jonathan administration that the grid handled. We had less collapsing of the grid. We used to have systems collapse all the time. It is now minimised.

“With regards to distribution, privatisation, of course, has helped. Discos are now under the private sector. One or two are doing well, and the others are either average or not doing well. But I think government should continue to create an enabling environment. The hich will now give the power to the Discos. So, the Discos are suffering, simply because there is not enough power, and many of them are not able even to find enough money to keep them afloat. They need money in order to remain afloat.’’

On how to solve the power supply problem, Nebo said: “The best way, the quickest way, the most inexpensive way of making sure that Nigerians get power, adequate power and eventually 24/7 power is embedded generation or distributed power.

‘‘If you have embedded generation, 10mws or 20mws, by the time you put 20mws in 10 different places, you would have 200mws. You can do that in one year. But for a mega 200, 400, or 500mw plant, it is a different thing entirely. By the time you build that, starting from concept, to design and financing, getting international partners, the partial risk and national sovereign guarantee, it would have taken five to six years.

“While in one year, you can have 50 of 20mws plants that translate to 1000mws, trying to do one mega plant of 1000mws takes five years. This means that we can actually give Nigerians 2000mws of power by embedded generation or distributed power every year, till the year 2020. With that, we will meet our target.”

He also called for action on the Petroleum Industry Bill (PIB), noting that it would liberalise the market, and make it easier for more gas to be available.

The Guardian discovered that many people residing in the suburbs and villages are connected directly to the electricity poles without meters and they pay cash monthly, to marketers.

One such customer told The Guardian: “I approached the electric people in my area of Lagos for a meter and I was told that prepaid meters are not available. One of the marketers advised that I should pay N25,000 to get an account generated for me to enable me get connected and get bills from the Disco on a monthly basis, which I agreed.

‘‘The marketer collected the money from me without proof of payment and connected electricity supply to my apartment that same day with a promise to send me a bill by the end of that month. I was surprised at the end of that month, the bill was not sent, but the marketer came to demand N3, 000, which is supposed to be my monthly bill. He collected it with another promise to send the bill by the end of the second month, which I never got. This continued until I complained to a higher authority before they now started sending bills to me.”

The Guardian also discovered that most of the shops and houses in Aja, Okota, Agege, Sango, Ikorodu, Epe areas do not have meters, but rather, the marketers collect the money in cash every month.

The investigation also showed that most of the houses in the villages across the country are not connected to electricity meters, though the residents pay monthly to marketers.

For example, virtually all the houses in Atuagbo Uneah in Esan Central Local Council of Edo State are not connected to meters, but directly to the electric poles. The customers do not get monthly bills, but pay cash directly to marketers.

Also, in Npkehi, in Owerri North Local Council of Imo State, residents make monthly payments to workers of Enugu Disco who neither give them bills nor receipts.

The fact is that some marketers are feeding fat on the desperation of Nigerians with the excuse of non-availability of prepaid meters.

Lamenting the poor power supply in the country, Buhari at his inauguration, had said that despite the about $20 billion expended in the electricity sector in the last 16 years, no significant achievement has been recorded.

He however, vowed to tackle the issue of power supply during his tenure.


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Climate Action Africa Opens Applications for CAAF24 Deal Room

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Climate Action Africa (CAA), a leading advocate for climate resilience and sustainable development, has announced the opening of applications for the Deal Room at the 2024 Climate Action Africa Forum (CAAF24). The Deal Room is a groundbreaking platform that aims to connect high-impact climate innovators in Africa with potential investors seeking to accelerate sustainable solutions.

The CAAF Deal Room is a strategic initiative that aims to create opportunities for innovators in the climate-tech domain focusing on emission reduction, energy, agriculture, transportation, circular economy, and building and construction.

The goal of the Deal Room is to select finalists who will have the opportunity to pitch their innovative ideas and solutions at the upcoming 2024 Climate Action Africa Forum, which will be held on June 19th in Lagos, Nigeria.

The Deal Room aims to boost investments in Africa’s green economy by galvanising a community of innovators, entrepreneurs, and investors to create applicable solutions that can mitigate the challenges of climate change on the African continent.

The Deal Room session will facilitate financing for solutions contributing to the growth and sustainability of Africa’s green economy. These deals may encompass prize money, equity plans, debt financing, mergers and acquisitions, and other investment options.

“Through the CAAF24 Deal Room, we aim to bridge the critical gap between promising climate ventures and the essential resources they need to thrive,” says Grace Oluchi Mbah, Co-founder and Executive Director of Climate Action Africa (CAA). “By facilitating connections between passionate entrepreneurs and dedicated investors, we can collectively unlock the immense potential of climate solutions in Africa.”

The eligibility criteria for applying include:

●     The company must be African-owned and operate in any of the 54 African countries.

●     It must be a for-profit company, between 1-5 years post-incorporation, post-MVP (minimum viable product), and post-GTM (go-to-market).

●     The company should leverage digital technology to deliver its business model.

●     Female ownership is an added advantage.

 Those eligible to apply include venture capitalists, impact investors, climate tech startups, Green SMEs (small and medium-sized enterprises), philanthropic organisations, and government representatives.

Following the CAAF24 deal-room will be a post-event accelerator in partnership with the Silicon Valley-based Founder Institute and IDEA Africa. This Africa-wide initiative is specifically designed to further accelerate and enhance support for promising Climate Tech startups and founders who participated in the Deal Room.

The official unveiling of this accelerator will take place at the Climate Action Africa Forum 2024 (CAAF24), marking a significant step forward in driving Climate Tech innovations throughout Africa.

Applications for the CAAF24 Deal Room are open from April 22nd until May 17th. Interested applicants can register at https://deal.caaf.africa/register.


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LCCI Urges FG to Simplify Trade Procedures to Boost Economy

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The Lagos Chamber of Commerce and Industry (LCCI) has said that the government needs to simplify and harmonize trade procedures and address bottlenecks in order to boost economic growth in the country.

President of LCCI, Mr. Gabriel Idahosa, gave the charge at a Quarterly media briefing on the State of the Economy yesterday in Lagos.

He said that the government has to create an atmosphere that promotes export growth and competitiveness, which is projected to boost export earnings, raise domestic revenue, improve citizens’ welfare, and increase business productivity.

“We recommend that reforms must include simplifying and harmonizing trade procedures as well as addressing bottlenecks such as port logistics, congestion, and transportation costs. This is expected to position the country as the commercial centre of the region and a springboard into regional value chains,” he stated.

On managing the persistent high inflation, the LCCI president said both monetary and fiscal authorities should focus on the factors driving the inflation rates by tackling the supply-side deficiencies instead of focusing too much attention on the demand-side management.

“We urge the Central Bank of Nigeria (CBN) to continue with its foreign exchange (forex) market reforms with intense discipline, as the high exchange rate against the naira is a major driver of the skyrocketing inflation rates.”

Idahosa acknowledged the improvement in the naira exchange rate in the last few days, moving towards the level of N1000 per dollar or lower.

“CBN needs to sustain its policy and regulatory reforms in the FX market, adopt policies that would attract more FX inflow into the economy as well as build market confidence in the performance of the FX market,” he added.

 


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Dufil Takes Donation of Indomie Noodles Cartons to Vulnerable Communities in Abuja and Environ

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In line with its commitment to provide critical support to indigent members of communities around the country in the face of the ongoing economic challenges, Dufil Prima Foods Limited, makers of Indomie Instant Noodles, in partnership with Golan Helps Abuja Food Bank Initiative (GHAFBI) and Meluibe Foundation on Wednesday, April 17 distributed Indomie noodles cartons to vulnerable communities in Kuje and Kubwa Local Government Areas in Abuja.

With the goal of alleviating hunger and supporting communities across Nigeria, Indomie Instant Noodles has committed to donating a substantial quantity of noodle packs to various NGOs working tirelessly to address food insecurity.

These organizations play a crucial role in reaching remote and underserved areas, ensuring that nutritious meals reach those who need them most.

“We are deeply committed to making a positive impact in the communities where we operate,” said Olusola Olayinka Idowu OON, former Permanent Secretary, Budget and National Planning, and the CEO/Founder of GHAFBI.

“At GHAFBI, we believe that everyone deserves access to wholesome and nourishing food. Our partnership with Dufil Prima Foods to donate Indomie Noodles packs is a big step towards addressing food insecurity and supporting vulnerable communities in Abuja”, said Idowu who was also the former National Conveyor, UN Food System Dialogues in Nigeria.

Speaking in the same vein, Obialunanma Nnaobi-Ayodele, Executive Director, The Meluibe Empowerment Foundation, expressed her gratitude to Indomie Noodles for the partnership. “Our vision as an NGO is to change the world one step at a time, by providing relief and support to vulnerable communities.

This is achieved through collaborations and partnerships, one of which is what we have done with Indomie Noodles. We remain grateful for their support through this food relief initiative”, she said.

By partnering with NGOs, Indomie Instant Noodles works closely with local leaders and community heads in directly engaging with rural communities to distribute noodle packs and provide immediate relief to families facing hunger and ensuring that food assistance reaches those who are most in need, especially in hard-to-reach areas.

“We are grateful for the opportunity to collaborate with NGOs and community leaders to make a meaningful difference in the lives of people facing food insecurity”, said Temitope Ashiwaju, Group Corporate Communications and Events Manager, Dufil Prima Foods Limited. “Together, we bring hope, love and relief for all”.

The community leaders and some of the beneficiaries also expressed their immense gratitude to Indomie for the support, stressing the impact the products donated will have in alleviating hunger in their communities.

Speaking at the outreach centre, His Royal Highness, Muhammed D. Jibril, Community Leader of Gbazango Community in Kubwa Local Government Area said: “I am very grateful to Indomie Noodles for coming to our aid in these challenging times. I pray for more expansion and growth for the business and may God bless Indomie Noodles”.

Other communities who benefited from the product donations include Wunmi, Tondo, Godoji and Shazhi communities in Kuje Area Council of Abuja.

Dufil Prima Food’s donation of Indomie Noodle packs underscores its commitment to corporate social responsibility and its dedication to supporting communities in need. By providing essential food relief, Dufil Prima Foods is contributing to the well-being and resilience of vulnerable populations in Nigeria.

Indomie Instant Noodles remains dedicated to bringing joy to mealtimes and making a positive impact in communities around the world.


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