Energy
Fate of DisCos shaky as govt plans other options


BY: The Nation
Years after it was privatised, the power sector has failed to deliver the desired result, the Federal Government said yesterday.
Vice President Yemi Osinbajo, who delivered the verdict, spoke of other options to re-engineer the sector for effective power supply to meet domestic and industrial needs of Nigerians. He was not specific on the options.
Prof Osinbajo laid it bare in his May Day address to workers at the Eagle Square in Abuja. He said the government was not happy that several years after the sector was privatised, it has failed to deliver.
The Power Holding Company of Nigeria (PHCN) Plc. was unbundled in 2013 during the administration of Dr. Goodluck Jonathan. It was to allow for private sector involvement in the generation and distribution of power.
The vice president, who represented President Muhammadu Buhari, said the government was “strongly committed to changing the narratives” in the power sector.
He said: “Today, that sector, after it was privatised, still remains stalled in delivering power to many Nigerian homes and businesses.
“We must act as a matter of national importance and we are committed to doing so, to work and re-engineer the sector for much more effective performance. Workers shall be called upon to play a greater role in supporting the government to attain all these goals.”
Osinbajo, who also told the workers that the new minimum wage would be fully implemented by the Buhari administration, however, expressed concern over incessant strikes by workers as a means of resolving industrial disputes.
He said the nation was losing so much in terms of resources and manpower to job boycotts.
The vice president said: “Industrial peace is central to economic stability. Every industrial disruption cost the national economy very dearly in terms of money and manpower that are lost.
“It is for this reason that I urged all actors in the industrial relations system to be circumspect and ethical in the use of industrial action as tools for resolving work place crisis. Industrial actions, because of the huge economic and social cost, should be the last and not the first option for resolving disputes.”
Osinbajo, who was silent on the crisis between Labour & Employment Minister Chris Ngige and organised Labour over the change in the chairmanship of the Nigerian Social Insurance Trust Fund (NSITF), however, assured workers that President Buhari will reciprocate the renewed mandate given to him by the electorate by ensuring prompt delivery on his electoral promises.
He said: “At the just concluded general elections, Nigerians and indeed Nigerian workers gave our administration another mandate to govern them. We shall reciprocate this electoral gesture by focusing on the critical issues that will advance and improve the quality of the lives and livelihood of Nigerians.
“These include the building of infrastructure, such as roads, rail, hydroelectricity and revaluing all sectors of the national economy in order to put our country on the path of a sustainable economic growth and prosperity.”
Osinbajo said the Buhari administration remained strongly committed to the goals of the International Labour Organisation (ILO) movement, adding that “on assumption of office in 2015, in spite of daunting economic challenges which confronted us at the time, we ensured that no worker was retrenched across the country.
“We followed this commitment by providing bailout funds for states that were unable to pay salaries at that time in order to pay their accumulated arrears. He also released Paris Club refund owed since 2005 to make sure that workers were not owed anything.
“We also ensure the payment of outstanding benefits of retrenched workers. Retrenched Nigeria Airways workers who were owed for decades were paid. We also ensured that the Pensions Transitional Arrangement Directorate (PTAD) also paid arrears owed to parastatals, civil servants pensioners covering about 101, 393 civil service pensioners in all grade levels and 76,310 parastatal pensioners across 186 ministries, departments and agencies. This is in addition to the arrears that were paid to officers of the Police, Customs and Immigration.
“The administration also settled pension issues of the Armed Forces and paramilitary personnel who were dismissed as a result of their participation in the civil war. All these veterans have now been paid their outstanding benefits.
Source: The Nation


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.
Energy
NNPC, Dangote Strengthen Strategic Partnership
Bot partners reaffirmed commitment to Healthy Competition Towards National Prosperity, reports SANDRA ANI


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.
Energy
AVEVA is providing data management support for renewable natural gas projects
Reporter: Godwin Ezeh


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.”