President Muhammadu Buhari was last Wednesday forced to offer needless apology when he realized the economic quagmire his government’s mishandling of the fuel and power problems has caused a lot of hardship for Nigerians.
Prolonged shortage of Premium Motor Spirit (PMS) or petrol and the collapse of the national grid have caused untold hardship for Nigerians.
President’s apology according to stakeholders is needless because if those people in charge of these key and important sectors of the economy know what they are doing, Nigerians would not have find themselves in this sorry state of paralysis occasioned by lack of fuel and power.
If Nigerians have been managing blackouts before now, because the Transmission Company of Nigeria cannot wheel more than 4000 megawatts despite claims by the minister of power that Nigeria has installed capacity of 18,000 mw and daily generation of 8,000 mw, the recent system collapse has exposed them to more hardships
However, these twin problems of lack of power and fuel are not new. The government is aware of the issues with them but it has demonstrated incompetence in many areas of our national life. Now, these problems are staring everyone in the face because of negligence and arrogance on the side of the government officials.
Take the issue of power, especially as regards the recent grid collapse that has grip the nation like an epidemic. One of the major causes of grid collapse has been the lack of gas for the generating companies to provide the minimum frequency stability in the grid. If generation is low, the grid would be destabilized. There have been series of calls by generating companies that the government should intervene in respect of the debt owed them by electricity distribution companies so that they can have enough cash to pay gas suppliers, but the government pretended not to be hearing their cries.
Now the bubble has burst, the government is adopting a fire brigade approach to resolve the issue. Such an approach in the past has never provided a lasting solution.
Recently, the Transmission Company of Nigeria (TCN ) in a press release, signed by Ndidi Mbah, general manager, public affairs, stated why there is loading shedding all across the country. In the press release was a list of some of the power generating companies and the generating profiles in the last two months. Most of the power plant that are not working optimally are owned by the government.
A summary of the power generating profiles in the last two months, for instance, clearly shows that fourteen (14) gas-powered generating stations were either not generating at all or had limited generation at various times within the period, further depleting the quantum of power generation available for transmission into the grid on a daily basis. Power generating stations in this category include; Omotosho units 5 & 6, Olorunsogo units 3, 4 & 6, Omoku units 3 & 6, Omotosho NIPP units 3 & 4, Delta units 15, 17, and 18, Afam VI units 11 & 12, Olorunsogo NIPP unit 3, Ihovbor NIPP unit 2, Sapele Steam unit 3, Sapele NIPP unit 1, Odukpani NIPP units 1 & 3, and Okpai units 11, 12 & 18. The situation with these plants would have profound effect on the grid system.
Also, within the same period, Jebba Hydro and Shiroro Power Generating Stations were either out or had limited generation, causing additional loss of 232MW from the grid, while other power generating plants such as Omotosho units 3&4, Olorunsogo units 1, Delta units 10 &20, Afam VI unit 13, Ihovbor NIPP units 4, Geregu NIPP units 22&23 and Odukpani NIPP units 2, 4 & 5, have also been out either on fault or for scheduled maintenance, causing a further loss of about 3,180MW from the grid
A combination of the above scenarios have persisted and the total effect on the grid is a persistent low generation, which TCN Operators have had to strive to dispatch in a way that will not jeopardize the stability of the grid.
More recently, from the 1st to 4th of March, 2022, there was generation shortfall due to water management in Shiroro and Jebba hydro with the loss of 307MW and 125MW respectively from both stations. Within the same period, there were fault and technical problems in Egbin, causing 514MW shortfall and in Geregu causing 230MW shortfall, while reported fault at Alaoji NIPP reduced generation from the substation by 263MW.
“Gas constraint alone in Olorunsogo gas generating plant reduced generation from the station by 104MW, in the same vein, Omotosho gas lost 102MW and Sapele NIPP lost 263MW. In Omotosho NIPP, there was generation shortfall of 233MW and in Omoku a shortfall of 112MW. Two units in Okpai have limited generation due to technical problems causing a 204MW drop in generation and in Afam VI 511MW drop in generation.
Gas constraint and fault in Olorunsogo NIPP reduced generation by 240MW, Geregu NIPP by 435MW, and Ihovbor by 142MW. Also, due to gas pipeline pigging, Odukpani NIPP was shut down which caused a reduction of generation by 575MW.”
Government cannot claim it is not aware of these problems.
But the typical I don’t care attitude of Nigerian leaders is what has brought the nation to this situation. It was only when the nation’s hardship became aggravated by lack of electricity and fuel that the president who is on medical trip had to start apologising
The Association of Power Generation Companies(APGC) has also said that Illiquidity, caused by the huge sums owed GenCos by the Nigerian Bulk Electricity Trading Plc (NBET), has more than ever before continued to frustrate the GenCos and kept them incapable of meeting their obligations which are extremely necessary to keep their power plants running and make capacities available.
“Such obligations include our operations and maintenance (O&M) as and when due, procurement of critical capital, spare parts and accessories, payment, and servicing of existing loans from lenders and financiers, employee obligations, etc.”
According Joy Ogaji, executive secretary of the association most of the electricity generated in Nigeria, about 80%, comes from gas-fired turbines. Natural gas is the feedstock or fuel of these plants. GenCos have consistently been dealing with unending gas-related challenges which inhibit optimal generation.
“Issues of gas volume, gas quality, gas pressure and gas transportation have consistently curtailed capacity utilization by GenCos thereby affecting generation. These issues need to be addressed urgently too, as GenCos have always requested.”
“Unfortunately, the unenforceable state of the contracts in the NESI and the broken cycle of payment assurance has made the enforcement of what would ordinarily be basic obligations of parties to the industry agreements, impossible”
President Buhari who spoke about the issue of power outages witnessed recently in various parts of the country said: “The blackouts seen in the national grid are also being addressed,” he assured Nigerians. “A dip in hydroelectric generation due to seasonal pressures has coincided with technical and supply problems at thermal stations.
“On this, the government is also working tirelessly to resolve the issues at the latter to guarantee sufficient power flows into the national grid.”
As part of emergency measures put in place following a meeting convened with key stakeholders to address the low power generation in the country, the President said the main challenge was identified as being one of low gas power generation, as a result of sabotage of gas pipelines leading to the shutdown of power plants coupled with routine maintenance on other gas power plants.
To recover over 1000MW, he said actions were agreed upon between the players in the Nigerian Electricity Supply Industry (NESI) and NNPC.
According to President Buhari, the actions targeted the National Integrated Power Project (NIPP) plants, Niger Delta Power Holding Company (NDPHC), and power plants run under NNPC Joint Ventures, Agip and Shell (NAOC and SPDC).
He explained that progress on the key actions has already ensured the restoration of 375MW to the grid after the pipeline from “Okpai 1” was repaired.
To also ramp up the underutilised capacity of the NDPHC capacity, he said a $50 million gas supply agreement was being finalised to secure the sustainability of up to 800MW of under utilised NIPP assets.
The question is why would the government wait until the country experienced such a horrific situation before saying that it would address the issue of gas to the NIPPS.
An industry operator had explained the challenges faced by the NIPPS being operated by Niger Delta Power Holding Company ( NDPHC ), a federal Government-owned generating company.
Another operator that does not want his name mentioned, but toe the line of Joy Ogaji said:” What you need to know about the present state of the Nigerian Electricity Demand And Supply Industry And causes of epileptic Power Supply.”
“Niger Delta Power Holding Company ( NDPHC ) which is government-owned has over 1200 megawatts of electricity that are mechanically available to generate but severely constrained by inadequate gas supply. Currently, Niger Delta Power Holding Company/ NIPP Gas-Fired Power Plants have gas to generate only 400 MW.”
“In order to guaranteed stable power (NDPHC) had to deposit over N5 billion with gas suppliers to be able to run the 600MW daily for one month.”
Despite that, NDPHC only receives gas supply to run 300 MW on average due to NGC gas pipeline challenges. In addition, NDPHC also has a gas supply agreement with Total Energies for gas supply to Alaoji NIPP for two gas turbines of at least 230 MW.
However, TotalEnergies pipeline was recently vandalized and Total Energies declared force Majeure.
Below is a breakdown of NDPHC available generation capacity.
Benin (Ihovbor) – 345 MW but only 1 Gas Turbine (GT) on Grid (100MW). NIPP / NDPHC have 2 GTs mechanically available (230MW) but no Gas
Omotosho has 345 MW but only 1 GT running on Grid (100MW), 2 GTs are mechanically available (230MW) but with no Gas to run them.
Ogorode (Sapele ) Power Plant has – 345 MW but only 1 GT on Grid (100MW),2 GTs mechanically available (230MW) but with no Gas
Olorunsogo Power Plant – 1 GT has available (115MW) but with no Gas
Alaoji NIPP Power Plant has 345 MW but only 1 GT on Grid (100MW). 2 GTs available (230MW) but no gas from the total due to pipeline vandalism of Total’s pipeline
Total units on Grid = 4GTs = 400MW
Total units mechanically available that are ready to be vis a vi’s NIPP / NDPHC Gas fired power plants but with no gas for generation = 1045MW.
The Nigeria National Petroleum Company (NNPC ) controls not less than 60% of the Equity Shares of the Joint Venture Contracts that has International Oil Companies ( IOCs ) responsible for gas supply as Partners.
NNPC will not give gas to Niger Delta Power Holding Company on credit, as It considers it as purely on commercial transaction which is purely done on a Cash and Carry basis.
For TotalEnergies to supply gas to NIPP / NDPHC Power Plants, the organisation has to provide a Standing Order for Uninterrupted Payment or Standing Approval for Payment cover by a Deposit of the Sum of N20 billion Credit Line of Banking Instruments
Financial Institutional Backed Payment Guarantee…
Niger Delta Power Holding Company is not allowed to Sell Power at Premium Value using Electricity Market Price Or Tariff benchmarks …
Even when NIPP Units are available for the Grid to utilise, lack of Incentives vis a vis energy load rejection, Low Level of Energy Load Dispatch.
Power Generating Plants ordinarily ought not to shut down.
At times, in a day, NIPP / NDPHC Power Plants and other private sector non-NIPP Power Plants could be ordered to shut down more than 30 times a day .
The Power Plants will be picked Load and the transmission Company of Nigeria through the load dispatch management team could instruct the Power Plants ” Drop Load! Drop Load !! Drop Load !!!
The idea of asking that Power Plants Machines be dropped has a lot of adverse effects on the Health and General Well-being of the Machines.
Some operators say the government is being hypocritical about the power sector and that should stop if the country wants to make progress. Lack of proper governance is alleged to have been responsible for the myriads of problems the sector is facing.
