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FG Signs $328M Agreement to boost Nigeria’s electricity supply

by Folarin Kehinde
written by Folarin Kehinde

The Federal Government of Nigeria (FGN) Power Company has announced the signing of a major Engineering, Procurement, Construction and Financing (EPC&F) contract with China Machinery Engineering Company (CMEC) group worth US$328,818,916.99 to boost power supply across Nigeria.

Minister of Power, Chief Adebayo Adelabu while speaking in Abuja on Wednesday at the signing ceremony stated that the project will ensure the rehabilitation and extensive construction of 330 kV and 132 kV transmission lines under Phase 1 of the Presidential Power Initiative (PPI) while preventing stranded capacity in the grid.

Adebayo explained that the project
with a load capacity of 7,140
megawatts will act as the arteries that carry the increased power generated through Nigeria’s midstream transmission projects directly to the homes, businesses, and industries adding that the project is deliberately designed to seamlessly complement the ongoing midstream transmission enhancements.

“By focusing on upgrading and expanding our transmission network, we are directly addressing a key bottleneck in the power sector value chain. This will translate to a significant improvement in electricity reliability and accessibility for millions of Nigerians fostering economic growth, creating jobs, and enhancing the quality of life for our citizens.”.

Meanwhile, Adelabu noted that the government is aware of the current power supply challenges but is working tirelessly to address them hence the contract signing but emphasized that Nigerians should join hands in protecting the nation’s critical assets while they continue working towards providing affordable and reliable power supply to Nigerians.

“This project, I also want to reiterate that it will involve a lot of installation of expensive wire lines, expensive substations that are seen as national, critical national assets, we urge Nigerians to join hands in protecting this because it’s going to be executed with taxpayers’ money. Even if it is through finance, the repayment of the financing will be from
taxpayers’ money.

“If we destroy our transmission or distribution assets, we are destroying our own personal assets. So this asset must be guarded and protected generously for us to have unaltered and undisturbed regular power supply to our people.”. he added.

Managing Director/Chief Executive Officer, FGN Power Company, Kenny Anuwe on his part stated that the signing signifies a critical and concrete step towards
addressing the power infrastructure challenges of Nigeria adding that the expansion and upgrade of Nigeria’s transmission infrastructure are crucial for effectively wielding the incremental power that is generated from the work that Siemens Energy does.

Anuwe noted that having recognized that a robust and reliable transmission network is the backbone of a stable power
sector, he stressed that the partnership with CMEC is a strategic move to strengthen that backbone and to
ensure that the investments being made in generation can translate into tangible benefits for the Nigerian populace.

“We are particularly delighted to partner with CMEC on this transformative project.
The global reputation for engineering excellence, project execution capabilities, and commitment to quality are well established both in Nigeria and elsewhere. We are confident that this expertise will be invaluable in delivering this crucial infrastructure efficiently at the highest standards.”.

“Today, we are forging a power alliance to meet Nigeria’s growing energy and infrastructure needs.This contract is not just a procedural step. It is a reaffirmation of our commitment to transparency, accountability, and delivering on the promises made to Nigerians. We are
determined to ensure that this project is executed diligently, efficiently, and with the utmostattention to quality and timelines.”. he added.

Responding, Vice-President, CMEC, Li Xiaoyu expressed optimism about the contract and the timely execution of the project for the benefits of Nigerians.

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Headlines

FG unveils power sector communications team

by Folarin Kehinde
written by Folarin Kehinde

The Federal Government has inaugurated the Power Sector Communications Team in a bid to enhance transparency and communication within the power sector.

The inauguration ceremony, held at the Power House in Abuja, was presided over by the Minister of Power, Adebayo Adelabu, who emphasised the importance of effective communication in addressing the sector’s challenges.

This was disclosed in a statement by the Chairman, PSCT Bolaji Tunji, on Wednesday.

In his speech, Chief Adelabu described the PSCT as a “strategic initiative designed to bridge the gap between the power sector and the public.”

He noted that the power sector, which is often misunderstood and fraught with challenges, requires a platform for clear and consistent communication to build trust and confidence.

“The PSCT is more than just a team; it is a commitment to excellence in communication,” the Minister stated.

“We envision a Nigeria where electricity is not just a luxury but a fundamental right. To achieve this, we must work together, and effective communication is key,” he added.

The PSCT, as outlined by Adelabu, will focus on translating complex technical issues into plain language, fostering collaboration among stakeholders, and creating a positive narrative around the power sector.

“I am confident that under the leadership of its dedicated members, the PSCT will excel,” he said, adding, “Together, we will transform the power sector from a source of frustration to a catalyst for national growth.”

The Chairman of the PSCT, Bolaji Tunji, expressed his enthusiasm about the team’s reactivation, noting that while the idea of the PSCT is not new, its revival marks a renewed commitment to addressing communication challenges in the sector.

“It gladdens my heart that the Power Sector Communications Team is being inaugurated today. Our vision is to transform the perception of the power sector by providing consistent, truthful, and insightful information that highlights the ongoing progress and challenges within the sector,” he said.

Tunji highlighted several strategic initiatives that the PSCT will undertake, including a nationwide campaign focused on educating the public on critical power sector issues such as energy theft and vandalisation.

“Our goal is to empower citizens with the knowledge to understand their roles in safeguarding our power infrastructure and to inspire collective action against these harmful practices,” he explained.

The Chairman also stressed the importance of stakeholder engagement, noting that regular dialogues, workshops, and forums will be organised to foster better understanding and cooperation among all players in the power sector value chain.

“This engagement is crucial in ensuring that all stakeholders are aligned in their efforts to provide reliable and affordable electricity to the Nigerian people,” Tunji stated.

In his remarks, Tunji underscored the need for adequate funding and inclusion of the communication team in all relevant activities within the Ministry and its agencies.

“Communication is not just a nice-to-have; it’s a must-have for a public utility organisation like ours. I want to appeal to us to commit to communication that is clear, concise, compassionate, and customer-centric,” he added.

The inauguration of the PSCT is seen as a critical step towards improving transparency and building public trust in Nigeria’s power sector.

As the Minister concluded, “By working together, we can create a brighter, more electrified future for Nigeria.”

The coordinator of the Power Sector Communications Team Magdalene Abang, stated that PSCT is committed to fostering a positive narrative around the power sector and building public trust in the government’s efforts to achieve sustainable energy access. 

Abang while appreciating the minister stated that the guidance of the minister has been instrumental to enhancing communication within the sector and promote public understanding of power sector issues.

“We are particularly grateful to the Minister of Power for his visionary leadership and unwavering support for the PSCT. Your guidance and encouragement have been instrumental in our efforts to enhance communication within the sector and promote public understanding of power sector issues.

“We would also like to extend our deepest gratitude to the agency heads present today. Your leadership and dedication to the PSCT’s objectives are truly commendable. Your valuable insights and contributions have significantly enhanced our discussions and helped us develop effective strategies for improving sector communication.” She added.

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HeadlinesOpinion

Expert flays NNPC N287B profit; describes it as a manipulated balance sheet full of deception

by Leading Reporters
written by Leading Reporters

A financial expert, public issues commentator and good governance advocate, Dr. Nnaemeka Obiareri has described as deceptive,

manipulative and sheer distortion of standard accounting standards the recently announced profit of N287billion by the Nigeria National Petroleum Corporation NNPC, from its perennial operational losses.

He said that when the figures brandished by NNPC leadership is interrogated, it would be discovered that NNPC did not engage in any extensive or extra-ordinary productive or trading activities in 2020 to generate and report such huge profits in 2020 from a consistent six years loss (2015-2020). 

“From my desktop review and analysis, I knew straight away, that it is either they reported bubble paper profit to enable them debit a ledger for a particular nefarious game or they engaged in unwholesome balance sheet engineering games.

“What Melee Kyari presented as profit from direct  NNPC operations and activities is actually a retention  of 20% of the profits and dividends paid by independent entities,  which the NNPC   received on behalf  of the federation ( FGN, States and LGAs). This is the first time they are allowed to retain such.  

“According to a reliable source, before now,  the FGN and the states used to collect 100% of all the dividends paid by these independent entities . 

“However, in 2020, the NNPC decided to retain the 20% from the dividends paid the the NLNG, the NGC, the West African Gas Pipeline ( Operated by Chevron) etc and consolidated same in their balance sheet.  

“So, what they reported were retained portions of the dividends  paid by other entities for the Federation.  All the poppycock by Melee Kyari of improving efficiency at the NNPC and cut cutting cost  measures  over the last one year are just hogwash . NNPC as an entity under him,  its operations  and that of  the three  refineries are cesspool of losses and perfidy . Don’t be deceived by their tales by moonlight . 

”It is a grave affronts to our sensibilities and intelligence for these guys to receive about $2.5billion/N1trillion (using CBN official rates)  as combined dividends on behalf of the federation from independent entities established by acts of Parliament for the benefits of the federation,  consolidate the retained  20% portion of  dividends meant for the Federation accounts and then report it (N287bn)  as profits made from the activities of a  corporation that did nothing,  other than , import PMS at a loss under subsidies and ignorant people clap away without asking questions  

“The most painful thing here is that these people understand that IGNORANCE walks on all four in Nigeria.  So, they assumed rightly, that a majority of us have no common sense , capacity , competence and ability to dig beyond the surface.  They also realise that investigative journalism built on deep knowledge is absent in this clime. THEY ALSO realise that we do not have many people with the discipline, knowledge,  good conscience and integrity in the NASS to probe, dig , uncover and recover as we have it in the US Congress.  So, they  corner our resources,  throw pittance at us  and then rub it on our faces  ..

“For those,  who have the discipline,  knowledge, ability and time,  kindly fish out the 2019 audited financial reports of the following independent entities set up by acts of Parliament for the benefits of the federation: 

  • The  NLNG; 2. The West African Gas Pipeline Company ( Operated by Chevron);  3. The Nigeria Gas Company(NGC);  4. Duke Oil;  5. The NPDC; 6. C. 7 Wheel Insurance ; etc 
  • When you add up all of the dividends  for the year ended 2019, which was declared,  paid and  transferred to the NNPC accounts in 2020 on behalf of the federation , you will get in excess of over $2.5bn/N1trillion (using the CBN official rate). 

“These guys at the NNPC are not sincere one bit . It is the height of deceit and manipulation of numbers, for them to gleefully consolidate the profits and dividends of independent entities, with independently audited balance sheets , who have been making and reporting  consistent profits over the last 10 years retain 20% of such dividends,  use them to cover the huge losses and pillaging at the NNPC and report same as profit for the NNPC, for the first time over the last 43 years . 

“Honestly, if the misappropriation and cornering of our national resources at our MDAs like the  NNPC, Petroleum Ministry,  FIRS, Customs,  NIMASA, NPA, are checkmate and  the leakages plugged , Nigeria will not need to borrow to fund our critical infrastructure needs .

“This is why we clamour for urgent and  total constitutional, fiscal,  administrative,  socio-economic and autonomous RESTRUCTURING of this jungle to stop the ongoing  bleeding,  destruction and destitution of the masses.  

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