Business

Consumer Rights Group Kicks Against Proposed Sale of NIPP/NDPHC Power Plants

Published

2 years ago

August 30, 2022

The Nigeria Consumer Protection Network (NCPN) says the proposed sale of the five National Integrated Power Projects (NIPP) assets by the Bureau of Public Enterprises (BPE) poses a national security risk.

President of the organisation, Kola Olubiyo, in a statement in Abuja, on Monday noted that the planned disposal of the plants under the Niger Delta Power Holding Company (NDPHC), smacked of national assets stripping at a time the President Muhammadu Buhari’s administration is winding down.

The BPE recently pre-qualified 16 firms for the privatisation of the five NIPPs, including Geregu, Omotosho, Olorunsogo, Calabar and Benin-Ihovbor.

But the NCPN said it had seen the records of the firms described as the bidders for the NIPP plants, maintaining that some of the firms hardly have any experience in the business of power generation.

“The plants under the NIPP of the NDPHC have always been infrastructure providing power supply and national energy security.

“For instance, during the COVID-19 pandemic when the private Generation Companies (Gencos) ramped down electricity generation due to low revenue returns, the NIPPs being public assets, provided Nigeria with the much-needed energy security and its attendant socio-economic stability.

“They increased power supply to avoid economic and administrative shut down in the country.

“The private firms in the power sector so far have not fared better than the NDPHC Gencos which have its gas obligations, gas pipeline assets, contributed to both transmission and distribution networks nationwide,” the group argued.

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Olubiyo, a member of the National Technical Investigative Panel on Power System Collapses/System Stability and Reliability and Presidential Ad-hoc Committee on Review of Electricity Tariff in Nigeria, argued that if at any point other Gencos shut down operations because of legacy debts allegedly owed them, the NIPPS could act as a buffer.

“What BPE and any designated agency of government should be thinking of at the moment is how to optimise the NIPP/NDPHC Gencos so that Nigerians can make the best use of this power sector intervention, as that was what they were designed for.

“The NIPP interventions which cut across the power sector value chain and implemented by NDPHC require that the Nigerian Electricity Regulatory Commission (NERC) would have evaluated them and determined their real value.

“However, for over nine years, NERC has been endlessly doing evaluation of these investment values without result,” the group added.

Without this evaluation to determine the Capital Expenditure (CAPEX) in the NIPP power sector intervention projects, NDPHC, it argued, has been continually short-changed of revolving funds that should be re-invested into other power interventions.

“The NCPN at the moment opposes any move to sell off five of the NIPP Gencos for now. We are not saying that the plants would not be sold at the appropriate prices and time in the future.

“But not now, when Nigeria is seriously battling challenges of deliberate load rejection by the Distribution Companies (Discos) and deliberate low energy dispatch by the Transmission Company of Nigeria (TCN)

“It is already election time and we believe that even if the five NIPP plants are sold, the proceeds may go into the hands of political cronies,” the NCPN stated.

It argued that selling off the five NIPP plants may not guarantee their optimal performance as the new investors will have to begin a fresh journey of having some levels of Power Purchase Agreements (PPAs) and Vesting Contracts with the Nigerian Bulk Electricity Trading PLC (NBET).

However, at the moment, it maintained that the NDPHC has some already signed bilateral contracts for a “Take or Pay” deal for gas supply agreement for some of the Gencos which can come handy.

“We advise the government to join hands with experts and professionals as well as like-minded people within and outside the power sector to come up with a comprehensive mechanism to address the decline in growth.

“As the House of Representatives sit this week to take a deeper look at the issues at stake, the group urged the Special Investigative Committee to look into the basic and fundamental challenges.

“The Nigerian government should also learn from the poor delivery of the 2013 power sector privatisation exercise also carried out by the same BPE,” the group said.

Related Topics:ANIPP/NDPHC Consumer Rights power plants

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Lagos Rail Mass Transit part of FG free train ride – NRC

Published

14 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

14 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.