Connect with us

Energy

You’ll answer questions over $16bn power projects, Buhari to OBJ

Published

on

President Muhammadu Buhari on Tuesday threw a jibe at former President Olusegun Obasanjo for spending $16bn on power projects during his tenure as the President without corresponding power supply to Nigerians.

Although he did not mention any name, Buhari said a former Nigerian leader was bragging at a time that his administration spent the amount on power sector, yet there was nothing to show for the expenditure.

Buhari spoke at the Presidential Villa, Abuja while receiving members of the Buhari Support Organisation led by the Comptroller-General of the Nigeria Customs Service, Col. Hameed Ali (retd).

The House of Representatives had in 2008 described the $16bn spent on power projects by the Obasanjo administration as a colossal waste.

The Socio-Economic Rights and Accountability Project had also in 2016 called for an investigation into the expenditure.

On Tuesday, Buhari insisted that past administrations failed to invest in infrastructure in the country.

He gave an indication that no roads were repaired in the country after his days at the Petroleum Trust Fund.

The President said, “You know more than I do on the condition of our roads. Some of them were not repaired since the PTF days.

“No matter what opinion you have about (late Gen. Sani) Abacha, I agreed to work with him and the PTF. We constructed road from here (Abuja) to Port Harcourt, to Onitsha, to Benin and so on.

“This was in addition to other things in education, medical care and so on. You know the rail was killed and one of the former Heads of State between that time was bragging that he spent $16bn, not naira, on power. Where is the power? Where is the power? And now we have to pay the debts. “This year and last year’s budgets that I took to the National Assembly were the highest in capital projects: more than $1.3 tn.

“Let anybody come and confront me publicly in the National Assembly. What have they been doing? Some of them have been there for 10 years. What have they been doing?”

Buhari said anybody who claimed to be fighting for the country should not be misappropriating or misapplying the nation’s resources the way some people did.

He reiterated his position that past Nigerian leaders did not save during the oil boom era.

He said, “I have to repeat what I want the public to know here.

“I said and I challenge anybody to check from Europe, Asia and America; between 1999 and 2014, Nigeria was getting 2.1 million barrels per day and was selling at an average cost of $100 per barrel.

“It went up to $143. So, Nigeria was earning 2.1 million times 100 times 16 years seven days a week.

“When we came, it collapsed to between $37 and $38 and it was oscillating between $40 and $54 sometimes.

“I went to the Governor of Central Bank, thank goodness I did not sack him, and he is still there. I went with my cap in my hand and say oya (give me money). He said there were no savings, only debt.”

Buhari’s allegation based on ignorance –Obasanjo

But responding, Obasanjo said the President’s allegation that $16bn was wasted on power project, was rooted in ignorance.

In a statement issued on his behalf by Kehinde Akinyemi, his spokesman, Obasanjo said, “The answer is simple: the power is in the seven National Integrated Power Projects and eighteen gas turbines…”

The ex-President referred Buhari to his autobiography, My Watch, saying he had cleared allegations about the power project in the book.

The statement read, “It has come to the attention of Chief Olusegun Obasanjo that a statement credited to President Muhammadu Buhari, apparently without correct information and based on ignorance, suggested that $16bn was wasted on power projects by “a former President.” We believe that the President was re-echoing the unsubstantiated allegation against Chief Obasanjo by his own predecessor but one.

“While it is doubtful that a President with proper understanding of the issue would utter such, it should be pointed out that records from the National Assembly have exculpated President Obasanjo of any wrongdoing concerning the power sector and have proved the allegations as false.

“For the records, Chief Obasanjo has addressed the issues of the power sector and the allegations against him on many occasions and platforms, including in his widely publicised book, My Watch, in which he exhaustively stated the facts and reproduced various reports by both the Economic and Financial Crimes Commission, which conducted a clinical investigation into the allegations against Chief Obasanjo, and the Ad Hoc Committee on the Review of the Recommendations in the Report of the Committee on Power on the investigation into how the huge sum of money was spent on Power Generation, Transmission And Distribution between June 1999 and May 2007 without commensurate result.

“We recommend that the President and his co-travellers should read Chapters 41, 42, 43 and 47 of My Watch for Chief Obasanjo’s insights and perspectives on the power sector and indeed what transpired when the allegation of $16bn on power projects was previously made. If he cannot read the three-volume book, he should detail his aides to do so and summarise the chapters in a language that he will easily understand.

“In the same statement credited to the President, it was alleged that there was some bragging by Chief Obasanjo over $16bn spent on power. To inform the uninformed, the so-called $16bn power expenditure was an allegation against Chief Obasanjo’s administration and not his claim. The President also queried where the power generated is. The answer is simple: The power is in the seven National Integrated Power Projects and eighteen gas turbines that Chief Obasanjo’s successor who originally made the allegation of $16bn did not clear from the ports for over a year and the civil works done on the sites.

“Chief Obasanjo challenges, and in fact encourages, anybody to set up another enquiry if in doubt and unsatisfied with the EFCC report and that of the Hon. Aminu Tambuwal-led ad hoc committee.”

OBJ’s govt didn’t spend $16bn on power projects – CNM

In his response,  however,  the spokesman for the Obasanjo-led Coalition for Nigeria Movement, Mr. Akin Osuntokun, described the allegation as a rumour.

Osuntokun alleged the rumour was concocted by those in the late President Umaru Yar’Adua’s government and then spread by a former lawmaker.

He said several investigations and reports had shown that only $6bn was spent on the power sector during Obasanjo’s eight-year tenure.

He said Buhari was playing cheap politics with statistics.

The CNM spokesman said the late Senior Special Assistant to Obasanjo on Power Sector Reform and Coordinator, Seke Somolu, had provided all evidence as regards the matter.

He said that as far as Somolu was concerned, only $6.3bn was spent on the power projects during Obasanjo’s regime.

Osuntokun stated, “Seke sought to educate us saying $16bn was voted but warrant was issued for no more than $6.3bn spent largely on orders for turbines which could only be manufactured to specifications since they could not be picked from departmental stores’ shelves. Part of the disbursements also went into drawings, building of bridges on which the turbines would be ferried and compensation for communities from whom pieces of land was acquired. And much more.

“This once again demonstrates what I have cited as the pathological incompetence of this President. Is it not beneath the dignity of the exalted office he holds to join the chorus of beer parlour gossips? How can a president who has all the information at his beck and call degenerate to this level?

“Is it on account of a famed short attention span which precludes him from grappling with any serious reading beyond his self-confessed affinity for newspaper cartoons? Is it with this kind of levity that he attends to federal executive council memos?

“We are now beginning to see the reason why Nigeria is fast disappearing into the abyss of primitive Stone Age leadership. It is not too late for him to heed the well-considered advice of his doctor to go home, eat more and sleep more.”

GrassRoots.ng is on a critical mission; to objectively and honestly represent the voice of ‘grassrooters’ in International, Federal, State and Local Government fora; heralding the achievements of political and other leaders and investors alike, without discrimination. This daily, digital news publication platform serves as the leading source of up-to-date information on how people and events reflect on the global community. The pragmatic articles reflect on the life of the community people, covering news/current affairs, business, technology, culture and fashion, entertainment, sports, State, National and International issues that directly impact the locals.

Energy

Energy Experts Proffer Solution To Nigeria’s Energy Conundrum 

By SANDRA ANI

Published

on

Energy Experts

Key players and experts in Nigeria’s oil and gas and power sectors have called for concerted measures and actions that will lead to property utilization of the country’s vast gas reserves.

Key players and experts in Nigeria’s oil and gas and power sectors have called for concerted measures and actions that will lead to property utilization of the country’s vast gas reserves.

They expressed the opinion that Nigeria’s gas reserves are critical asset towards achieving the ongoing energy transition that will be affordable and sustainable.

Speaking at the 4th Oriental News conference in Lagos on Thursday July 24,2025 themed’ , “Integrating Nigeria’s Gas Potentials into Strategic Energy Transition Initiatives,” the Manager, Energy Transition NLNG, Temitope Ogedengbe, advised that Nigeria must avoid adopting a “copy-paste” approach to energy transition, insisting that the country must tailor its strategy to reflect local realities, including the urgent need for economic growth, energy security, and national development.

“Our transition must leverage our unique strengths and resources to grow our economy,” Ogedengbe said. “Energy transition should not be a copy-paste exercise.

“Nigeria must design its own, since we need economic development, energy security, and to address developmental issues.”

Ogedengbe, while highlighting challenges around gas utilisation, lamented that despite Nigeria’s abundant natural gas resources, a large portion is still being flared or reinjected due to the absence of viable commercial arrangements.

“We’re not taking nearly the amount we should be. We are still failing and reinjecting because there is no commercial arrangement to optimise this; for many reasons,” he stated.

He noted that while marginal fields hold potential, they are difficult to produce economically. 

“The issues there are marginal fields, which are difficult to produce,” he said, adding that the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Gas Flaring Commercialisation Programme is trying to address this.

According to him, a significant chunk of Nigeria’s gas is still either exported or flared, while domestic utilisation and value addition remain underdeveloped.

 “We are not investing enough, and we are not examining the right approaches,” he added.

Speaking on the global LNG market, Ogedengbe noted that although there is still a market for  LNG produced by Nigeria, demand patterns are shifting, particularly in Europe, where buyers now favour lower-carbon LNG options.

He said, “There is still a market for LNG produced in Nigeria, but what is happening is that Europe is asking for lower-carbon LNG. 

“There’s a need to use operational levers to reduce carbon, attract premium markets, and unlock funding opportunities, including through reduced taxes and levies.”

He further stated the NLNG remains central to Nigeria’s gas future, revealing that the company plans to expand its capacity to 30 million tonnes per annum.

” As part of its energy transition strategy, the company is integrating technologies and processes aimed at reducing emissions and generating carbon credits.

“We’re using offsets to reduce our emissions, both at the national and international levels, to take carbon out of the atmosphere and promote our operations,” he explained.

Ogedengbe emphasized the need for a multi-pronged, well-coordinated approach to decarbonising the country’s gas sector to ensure long-term viability and global competitiveness.

Also, at  the same conference, former Power Minister, Prof. Bart Nnaji said that shortage of gas supply and infrastructure deficit has continued to act as disincentive to investment and growth of the power sector.

Nnaji, said in the next two decades power generation in the country will be dominated by gas fired plants.

He attributed Nigeria’s persistent gas shortage to inadequate investment in gas infrastructure and called for more support from both government and the private sector.

Nnaji, who chaired the event, addressed stakeholders from across the oil and gas value chain, including key government officials.

He said the country’s gas sector remains underdeveloped due to insufficient investment in extraction, transmission, and transportation.

“The focus should not rest solely on government-led efforts — the private sector must also play a vital role,” the former minister said.

“What we need is for the government to act as a true enabler, offering the necessary support for infrastructure and gas harvesting. It’s baffling that with over 210 trillion cubic feet of gas, we still face local shortages.

“We’re unable to produce sufficient quantities to support operations across the country. Though operations improved this year, they weren’t previously at full capacity. A seventh train is underway, but we need more gas.”

He said Nigeria’s history of mining and exporting coal before abandoning it reflects a wider pattern of resource neglect.

Nnaji said gas-fired plants are critical to Nigeria’s power generation, emphasising the need for a reliable supply to ensure thermal plants operate effectively.

He noted that Geometric Power Ltd, which he chairs, is among the companies generating electricity through thermal sources.

“For effective supply from thermal plants, an adequate and reliable gas supply is vital. While we have hydro power, gas-fired plants remain dominant and will likely stay that way for the next ten to twenty years,” he said.

Nnaji acknowledged the role of renewable energy in rural electrification but maintained that Nigeria’s baseload power must continue to come from gas or hydro sources.

He noted that hydro power, however, comes with limitations that require regional cooperation.

In her submission, Engr. Chichi Emenike, Acting Managing Director and Gas Asset Manager of Neconde Energy Limited, sounded alarm over the consequences of some policies of Government that has undermined the ongoing energy transition.

According to her, unpaid gas supplies, dollarised operations, and policy inconsistencies are discouraging investment in the sector.

Emenike, said Neconde, for instance, has gas that has been produced and supplied to the electricity generation companies (GenCos) and that has not been paid for almost two years now.”

“This is a serious conundrum, whereas we have sourced funds from somewhere to produce these gas molecules from our facilities. How am I going to pay back?”

Emenike further explained that Nigeria’s upstream gas production is highly dollarised, making it costlier than crude oil development and difficult to sustain without a commercially viable framework.

“Don’t forget that the gas production industry is highly dollarised, including the requisite inputs. There is no part of the operation, including the technology, that is produced locally. The bulk of it has to be imported in US$.

“The O&M, well drilling, and accessories to drill a gas well are all dollarised. So, it costs more than what it costs to drill a crude oil well. The handling of a gas well is highly sophisticated, unlike that of crude oil.”

Speaking on systemic issues within the gas-to-power value chain, Engr. Emenike said, “Over 500 million standard cubic feet (scf) of gas are being transported with the NGIC pipeline.

“If you multiply this figure by one dollar, you will understand the cost. Whereas so much money went into drilling some of these wells, it costs $35,000 plus or minus, and that is outside other assumptions of fees.”

Commenting on the financing and investment environment, Emenike called for a pragmatic national energy plan that begins with achievable goals, rather than lofty ambitions.

“Let us start with what is doable; I mean the low-hanging fruit. Let us stop with big numbers. We should tidy up small fields that are struggling to juggle both CAPEX and OPEX.

“We need to sit down once as a nation to be selfish enough to determine what is needed to take care of Nigeria’s economy alone in the Gulf of Guinea.”

She called for urgent clarity on Nigeria’s position in the energy transition and a realistic approach to funding.

“Where do we sit as Nigerians today on this energy transition plan? Where is the money to run the transition?

“Presently in Nigeria, it is difficult for a gas investor to determine end-to-end where the funds would be coming from. We need a strategy; we need to be serious. Or else, gas investors would rather take what they should have invested in the Nigerian economy to Mozambique or elsewhere.”

Emenike further warned about the economic risks associated with policy instability.

“Gas economics is such that it must be end-to-end. Even before you draw down the first financing, you have tied that investment to a commercial arrangement.

“When you have a business, as much as you think you know, in the case of Nigeria, once you put your leg out in this economy, you will see so many things flood in unexpectedly. Your IRR (rate of return) goes down the drain due to policy flip-flops and multiplicities of levies and fees.”

She insisted that the sector needs regulatory reforms and an end to what she described as rent-seeking behaviour by government agencies.

“We have to deal with the rent-seeking attitude of our regulators to enable investors repatriate their investment financing.

“They should stop flogging investors with all forms of regulations and later charge them with potential incidents of non-conformity, which translates to fines, even for not operating, after they have created the crisis.”

Calling for collaborative efforts, she advocated infrastructure sharing and coordination within the value chain.

“We need to leverage infrastructure to unlock the stranded assets across the country. We need to look at how to put together our war chest to achieve a lot for the industry. We need to set the rules of the game.”

She emphasised the importance of investor confidence and a market-driven approach.

“Every investor wants to see a clear line of sight. Market forces should be allowed to play out. The government should not create a monopolistic environment that stifles investment. They should allow it to have that flexibility.”

“None of these government officials understand how investors raise capital to finance their projects and the terms of it. Government has no business in business. They should stop the rent-seeking attitude and stop looking for short-term benefits. Quick fixes will not work.”

She has therefore challenged the FG to focus inwardly and begin with achievable solutions.

According to her, “There is much more to be gained if we have a very selfish Nigerian plan that focuses on Nigerian interests alone. This can service the entire Gulf of Guinea if we are serious. Let us start with the small gas fields.

She further urged the FG to stop putting benchmarks on gas for power, adding that the market forces should be allowed to dictate the price.

Engr. Emenike charged the Nigerian government to allow flexibility in the market and encourage alliances within the value chain operators.

Continue Reading

Energy

NNPC, Dangote Strengthen Strategic Partnership

Bot partners reaffirmed commitment to Healthy Competition Towards National Prosperity, reports SANDRA ANI

Published

on

NNPC and Dangote partnership
Group CEO of NNPC Ltd., Mr. Bashir Bayo Ojulari receives the President/Chief Executive of Dangote Group, Mr. Aliko Dangote during a visit by the latter to the NNPC Towers, on Thursday

As part of ongoing efforts to promote mutually beneficial partnerships and foster healthy competition, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and Dangote Petroleum Refinery & Petrochemicals (DPRP) have pledged to deepen collaboration aimed at ensuring Nigeria’s energy security and advancing shared prosperity for Nigerians.

This commitment was made during a courtesy visit by the President/Chief Executive of Dangote Group, Mr. Aliko Dangote, and his delegation to the Group CEO of NNPC Ltd., Mr. Bashir Bayo Ojulari, and members of the company’s Senior Management Team at the NNPC Towers, on Thursday.

During the visit, Dangote pledged to collaborate with the new NNPC Management to ensure energy security for Nigeria.

“There is no competition between us, we are not here to compete with NNPC Ltd. NNPC is part and parcel of our business and we are also part of NNPC. This is an era of co-operation between the two organizations.” Dangote added.

While congratulating the GCEO and the Senior Management Team on their “well-deserved appointments,” Dangote acknowledged the enormity of the responsibility ahead, noting that the GCEO is shouldering a monumental task, which he expressed confidence that, with the capable hands at his disposal in NNPC, the task is surmountable.

In his remarks, the GCEO, Mr. Bashir Bayo Ojulari assured Dangote of a mutually beneficial partnership anchored on healthy competition and productive collaboration.

Ojulari highlighted the exceptional caliber of talent he met in NNPC Ltd., describing the workforce as a dedicated, highly skilled and hardworking professionals who are consistently keen on delivering value for Nigeria.

Expressing the company’s readiness to build a legacy of national prosperity through innovation and shared purpose, Ojulari said NNPC will sustain its collaboration with the Dangote Group especially where there is commercial advantage for Nigeria.

Both executives also committed to being the relationship managers for their respective organisations through sustained productive collaboration and healthy competition, thereby envisioning limitless opportunities for both organizations.

Continue Reading

Energy

AVEVA is providing data management support for renewable natural gas projects

Reporter: Godwin Ezeh

Published

on

Caspar Herzberg, CEO of AVEVA

Key Highlights

●        AVEVA’s industrial information infrastructure has been selected by Archaea Energy to provide key data management support

●        AVEVA’s industrial software to optimize performance across Archaea’s RNG plants

AVEVA, a global leader in industrial software driving digital transformation and sustainability, has been selected by Archaea Energy, the largest renewable natural gas (RNG) producer in the US, to build a comprehensive operations data management infrastructure.

Using AVEVA’s software, Archaea Energy can collect, enrich and visualize its real-time operations data, enabling performance analysis across its growing network of plants.

Using AVEVA PI Data Infrastructure, a hybrid solution with cloud data services, the plants will be able to share data to highlight operational opportunities and optimize efficiency.

Caspar Herzberg, CEO, AVEVA, stated,

“Through this collaboration and the use of AVEVA PI Data Infrastructure, Archaea’s growing network of plants will have streamlined operations with accurate performance analysis throughout the expansion. AVEVA’s CONNECT software platform leverages industrial intelligence from a central location, making it easier to deploy additional digital solutions in the future.”

“As the largest RNG producer in the United States, we are dedicated to delivering reliable, clean energy,” said Starlee Sykes, chief executive officer of Archaea Energy. “This relationship will allow us to optimize operations and offer detailed performance analysis as we continue to expand across the country.”

Continue Reading

Trending