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Nigerians bought N16tn fuel, generators in 2023 – FG

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In 2023 alone Nigerians spent a total of N16.5 trillion to buy diesel, petrol and generators to get electricity, the Federal Government announced on Tuesday.

It also announced that the formal power sector, including electricity generation, transmission, and distribution companies, made a total revenue of N1tn last year amid the over N16tn spent by power consumers in the informal sector.

The Minister of Power, Adebayo Adelabu, who announced this at the ongoing 2024 Nigeria Oil and Gas conference in Abuja, however, noted that electricity consumers on Band A category now get up to 24 hours supply of power.

He said, “If you know how much our people spend buying diesel, petrol, generators, and servicing them in a year; the last study we had in 2023, a total of N16.5tn was spent on this in self (power) generation. Even a number of the industries are off the grid. They now have their captive power between their environments with gas-powered generators.

“So spendings in this sector out of the grid is close to N20tn. And let me blow your mind, the revenue for the entire industry, the grid, I mean the formal power sector was just N1tn for 2023 that goes to the generation companies, transmission company and the distribution companies. Just N1tn formal revenue. But the informal spendings on generators, diesel, petrol, was close to N20tn.

“Even if it is just a quarter of that is put in the official power sector, we are talking about incremental revenue of N5tn that will bring the sector’s revenue to N6tn, sincerely we are going to have something close to uninterrupted 24/7 power supply in Nigeria,” Adelabu stated.

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The minister said the government was currently working hard to earn the trust of power consumers, stressing that it would be better to spend on electricity provided by the national grid because it is cheaper than spending on diesel or petrol-powered generators.

“That is what we are working on to ensure that that trust is back,that confidence is back. And all the manufacturing companies that are doing self-generation can cut it off and reconnect to the national grid because it is the cheapest source.

“As at the last study, Band A customers are enjoying uninterrupted supply and pay N206. For the companies that have their captive power using gas, they pay about N290/kwh.

“For those that are using petrol generators, it is about N450 per kilowatt-hour. And for those using diesel to power their generators, it is upward of N900. So it is still the cheapest, most efficient and the least cost for our productive activities,” the minister stated.

Meanwhile, Adelabu told delegates at the conference that the power sector in Nigeria consumes the largest share of the country’s domestic gas supply.

“I am here to advocate for increased investment in Nigeria’s gas development to unlock the full potential of our power sector and achieve the Nigeria Energy Transition Plan. The domestic gas-power market accounts for 60 per cent (approx. 700mmscf daily) of the total domestic gas supply. This gas quantity currently sustains Nigeria’s four gigawatts average grid generation capacity.

“In line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, our energy mix is projected to be 70 per cent (or 21GW) thermal source (most likely gas considering the country’s gas potential) and 30 per cent (or 9GW) renewable source.

“The power sector would require over five times what the industry currently utilises from the domestic gas market to achieve our 70 per cent thermal energy target with gas-powered generation. Additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations,” Adelabu stated.

To this end, the minister called on the investors at the conference to strongly consider investments in the further development of gas production in the country, especially Nigeria’s abundant unexploited non-associated gas reserves.

“To briefly spotlight the Federal Government’s recognition of the need for adequate liquidity in the Nigerian power sector to catalyse the much-needed investments across the value chain, the government recently introduced a cost-reflective tariff for the sector’s most served grid-tied customer segment.

“In addition, presidential approval was granted to resolve the power sector obligations to defray legacy debts to generation and gas companies. These actions speak to the government’s commitment to allowing efficient gas supply for the Nigerian power sector and ensuring there’s a clear line of sight for investors to recoup their investments in the country,” he stated.

The minister said he was confident that the Federal Government was committed to ensuring a viable and bankable power sector, and “we are convinced that the industry is investment-ready.” (PUNCH)

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Shocking! Vandals excavate, steal 3km of Port Harcourt–Kaduna Pipeline after spending months in South-East forest

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A petroleum product pipeline
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A major national security and economic sabotage has unfolded in Nigeria’s South-East as suspected pipeline vandals have excavated and removed more than three kilometres of a strategic high-pressure petroleum pipeline.

The pipeline transports refined petroleum products from Port Harcourt, Rivers State, to Kaduna in Northern Nigeria.

An investigation revealed that the large-scale vandalisation occurred in remote forests straddling Eha-Amufu in Isi-Uzo Local Government Area of Enugu State and Obeagu Community in Ishielu Local Government Area of Ebonyi State, raising serious questions about security oversight and the protection of critical national infrastructure.

The affected pipeline forms part of Nigeria’s vital petroleum distribution network, conveying petroleum products from the Port Harcourt refinery corridor through several states to northern parts of the country.

During a visit to the scene, SaharaReporters observed extensive excavation trenches stretching across difficult terrain, with evidence suggesting that the operation was carried out over an extended period rather than as a hit-and-run criminal activity.

The scale of the operation indicates a highly organised network involving specialised equipment, logistics support and detailed knowledge of the pipeline route.

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Reaching the vandalised section underscored the remoteness of the operation. It took the media over three hours and twenty minutes to reach the area by motorcycle.

At one point, the journey became impossible by road, forcing our crew and the commercial motorcyclist conveying them to abandon the motorcycle and trek more than two kilometres through a dense forest before arriving at the site.

At the scene, large sections of the pipeline had already been excavated and removed, leaving behind deep trenches and signs of heavy mechanical activity.

Residents of both Eha-Amufu and Obeagu communities alleged that the operation was masterminded by a businessman in Ebonyi State, whose identity could not be ascertained at the time of filing this report.

According to multiple sources familiar with the operation, the suspect allegedly mobilised dozens of workers from Abakaliki area of Ebonyi State and established a makeshift camp inside the forest for weeks or even months, while the excavation progressed.

One source told SaharaReporters: “I don’t know his real name. He came with more than 50 able-bodied men from Izzi. They spent over two months inside the bush excavating the pipeline.”

The source added that after exposing the buried infrastructure, the group deployed specialised cutting equipment to slice the pipes into transportable sections before evacuating them in trucks.

“They dug up the pipeline, cut it into pieces using heavy machinery and loaded the materials onto trucks. They lived in the forest throughout the operation. They evacuated the pipes in the dead of the night with assistance of corrupt elements in the security,” the resident said.

Residents expressed shock that such a large-scale operation could have continued for months without attracting decisive intervention from authorities.

Several sources alleged that multiple security agencies operating in the area were aware of the activities of the criminals. (SaharaReporters)

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My name has been cleared, says Alison-Madueke after London Jury acquits her of corruption charges

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Diezani Allison-Madueke
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Former Minister of Petroleum Resources, Diezani Alison-Madueke, has declared her complete vindication after being acquitted of all charges brought against her by a jury at Southwark Crown Court in London.

In a statement issued on Wednesday through her representative, Bolouere Opukiri, Alison-Madueke said the verdict marked the end of an eleven-year legal battle that had subjected her and her family to intense public scrutiny.

“Today, at Southwark Crown Court, I was acquitted of all charges brought against me,” she said.

Reflecting on the lengthy legal process, the former minister described the period as one of immense hardship and personal suffering.

“For eleven arduous years, this matter has weighed heavily upon me and my family. Today, a decade of unrelenting and unjust vilification, condemnation, and scrutiny has finally concluded,” she stated.

Alison-Madueke expressed gratitude to God, her legal team, family and friends for their support throughout the trial.

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“I give thanks to Almighty God for His faithfulness and for the complete vindication I have received. I am grateful to my legal counsel for their diligence, and to my family and friends for their steadfast support and encouragement throughout this period,” she said.

The former minister said the verdict had brought a sense of relief and closure after years of legal uncertainty.

“I am profoundly relieved. My name has been cleared, and this ordeal has come to an end,” she added.

Despite the acquittal, Alison-Madueke indicated that she intends to speak further about the events of the past decade and outline her future plans.

“This, however, is not the final chapter. In due course, I shall address this difficult period in greater detail and share my intentions for the future. For now, I intend to embrace the freedom that has been unjustly denied me for many years,” she said.

The statement followed her acquittal at Southwark Crown Court, bringing to a close a legal case that had attracted significant public attention over the past eleven years.

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London court acquits Alison-Madueke of all corruption charges

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Ex Petroleum minister, Mrs Diezani Alison-Madueke
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Diezani Alison-Madueke, the former Minister of Petroleum Resources, was on Wednesday acquitted by a London jury of six bribery charges, after ‌a rare corruption trial of a high-profile former energy official.

Alison-Madueke was minister between 2010 and 2015 under then-president Goodluck Jonathan.

She stood trial ​charged with five counts of accepting bribes and a ​charge of conspiracy to commit bribery, which she denied.

Prosecutors ⁠alleged Alison-Madueke, 65, was given “a life of luxury” in London ​from oil and gas industry figures seeking lucrative contracts in Nigeria, ​which has long grappled with mismanagement and corruption.

But the former minister, who was also briefly president of the Organization of the Petroleum Exporting Countries, ​said she never took any bribes and had no real ​influence over awarding of lucrative government contracts.

After a trial at London’s Southwark ‌Crown ⁠Court, Alison-Madueke was acquitted by a jury of all six charges she faced after more than 46 hours of deliberation.

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The not guilty verdicts are a major blow to British authorities, which began their ​investigation into corruption ​allegations against Alison-Madueke ⁠more than a decade ago.

Alison-Madueke stood trial alongside oil industry executive Olatimbo Ayinde, 54, who was ​charged with one count of bribery relating to ​Alison-Madueke ⁠and a separate count of bribery of a foreign public official.

Alison-Madueke’s brother Doye Agama, 69, was charged with conspiracy to commit bribery ⁠with ​his sister relating to payments made to ​Agama’s church.

Both Ayinde and Agama denied the charges against them and were also ​acquitted by the jury. (Reuters)

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