…As Energy Economists say PMS should sell at N120/l

By Michael Eboh

The Vice President of Nigeria, Mr. Yemi Osinbajo, on Monday, lamented that the country does not have sufficient gas to fire the country’s power plants to generate up to 7,000 megawatts (MW) of electricity.

This was even as the President of the Nigerian Association for Energy Economics, NAEE, Mr. Wumi Iledare, stated that in line with the current realities in the global petroleum industry and the foreign exchange rate, the price of Premium Motor Spirit, PMS, also known as petrol, in the country should be about N120 per litre.

Osinbajo, who was speaking at the NAEE/International Association for Energy Economics, Annual International Conference 2016 in Abuja, expressed his disappointment in the fact that despite Nigeria’s enormous natural gas reserves of over 185 trillion cubic feet, the country is still faced with huge energy supply problems.

Osinbajo, who was represented by his Senior Special Assistant (Power and Privatisation), Chiedu Ugbo, said: “In fact, it is an irony, that we do not have sufficient gas to fire our power plants up to 7,000MW, yet in energy industry circles, Nigeria is described as more of a gas territory than an oil territory.”

He pointed out that presently, the country has over 12,500MW of installed electricity generating capacity, consisting of gas thermal and hydropower plants, stating of that capacity, about 7,000MW is available to be generated if the required fuel is available.

He, however, disclosed that in spite of the available capacity, power plants in the country, over the last couple of weeks, distributed less than 4,000MW of electricity to consumers across the country.

Osinbajo blamed the development on inadequate investment on gas facilities,gas flaring, inadequate gas infrastructure and vandalism among others.

He said, “We have limited gas molecules to supply to the power plants. This is a result of many years of under-investment in gas gathering and processing for domestic consumption and also many years of gas flaring. Nigeria alone flares about half of the 40 billion cubic meters of associated gas estimated to be flared in Africa annually.

To address the situation, Osinbajo disclosed that the Federal Government is aware that there is no alternative to electric energy for energizing and powering Nigeria’s economic growth and development; hence it is determined to resolve the challenges to achieving sustainable energy supply in the country.

“We are working tirelessly towards resolving the gas-to-power challenge, ensuring that the needed investment will be made in gas gathering and processing for domestic consumption especially for power plants and at the same time working to ensure sustainability of supply of existing gas volumes,” he noted.

Also speaking, Iledare stated that he does not see the low oil price as a disaster for Nigeria, stating that it offers the country the opportunity to adopt fiscal responsibility practices and reduce fiscal irresponsibility.

He further stated the low oil price allows the country to take advantage of the situation to allow prices in the sector to be determined at current international market price, while he recommended a PMS’ price of N120 per litre, stating that the Federal Government had no business regulating the sector.

He said managing the petroleum sector has become‎ elusive, adding that regulators should be autonomous and any regulation put forward should have the backing of the law.

He warned that it is fool-hardy for the country to perpetually develop oil and gas resources for cash, instead of for the basis of satisfying the country’s energy needs.

http://www.vanguardngr.com/2016/04/power-crisis-nigeria-lacks-gas-to-generate-7000mw-osinbajo/

Everything is gona be alright

You must provide the twenty thousand megawatts you promised your zombie followers.

He said "governance is not rocket science", Now they are saying "we are not magicians". Dullards.

The Vice president, should remember that his predecessors gave the same statements. All in all, he and his boss should quickly come up with a solution on this
http://www.vanguardngr.com/2010/07/nigeria-needs-20000mw-of-electricity-by-2020-says-vice-president-sambo/

while he recommended a PMS’ price of N120 per litre, stating that the Federal Government had no business regulating the sector.

Like seriously, has he briefed his boss on this. The president wants to be the all in all of the petroleum sector. If he hands off the sector, then we can take the VP's statement seriously

So dis man sense never wake up since May 29 2015 What of the gas being waisted since all dis days

Good morning Osunbade

maupe:

Like seriously, has he briefed his boss on this. The president wants to be the all in all of the petroleum sector. If he hands off the sector, then we can take the VP's statement seriously

The VP did not make that statement.

You didn't say so during the election.

What about the 10000MW? Kai. Another scam.

That's what I call a cheap talk...... Flaring of gas is still on in many communities in the Niger delta

Apc always looking for excuse since May 29

.

SeverusSnape:
You must provide the twenty thousand megawatts you promised your zombie followers.

.

Hehehe they had no plans for Nigeria aside deep propaganda to wet the throats of their zombie followers...

It seems they injected all APC politicians and followers with a full "zombie injection"

Rochas

Evidently, these people are incapable of handling this country

Soon you guys will lack gas to make obnoxious excuses ...iranu + abasha

Baba kekere, we didn't elect you to tell us what we lack, ALL WE NEED IS SOLUTION

Not a single good news since May 29 last year from this Government

Nigeria depends too much on Oil and gas for everything. Our leaders are too fish-brained. There are other ways to generate power but no, there's oil and gas. They won't invest in projects that could redefine and uplift this country. They'd rather stick to one which they could steal from. Oil rogues!

At least someone is being honest.

Not the Pinocchio Lai Mohammed.

APC MEANS SCAM

Ok Prof You did well by letting us know.. Sir, this is also to let you know that we the consumers have adopted a formula whereby NO LIGHT, NO BILLS..

Recently we dont even know if the bills we are paying is actually ours or the Bills being consumed by our forefathers..

Where is the change we all voted for oh.

I laugh at the change we are witnessing today! I thought constant power supply is no rocket science Osinbade!!

k

Even the zombies can now testify to this SCAM.

kennygee:
At least someone is being honest.

Not the Pinocchio Lai Mohammed.

You say being honest? After lying to his gullible zombie supporters? ... I've said it before and I will say it again.. Only true federalism will salvage this country.. Forget all this grammar.. We should stop lying and deceiving ourselves!

Meanwhile oil will become worthless by 2030 and Saudi Arabia just announced that their economy will survive without oil as from 2020, that's for those that are planning ahead. The earlier we allow states to go and manage their resources, the better for us. I'm from Ebonyi and I know that we will be alright without oil..

Why can't they proffer solutions instead of always telling us the problems ?

Must it be gas? cant we explore other means of generating power?

That's why I use cold fusion to generate energy and you should all do the same.