Showing posts with label Nigeria. Show all posts
Showing posts with label Nigeria. Show all posts
Friday, December 11, 2009
PIB may not be passed by the end of the year
Senator Lee Maeba, the chairman of the senate committee on upstream petroleum, according to Next has chastised Emmanuel Egbogah, the senior special adviser to the president on petroleum matters for stating that the PIB would be passed by the end of the year. According to Maeba, the executive cannot speak for the legislature in terms of when a bill would be passed. Whilst we agree with this statement in principle, we must nevertheless reiterate that the delayed passage of the PIB has significantly impacted oil and gas investment in Nigeria. We encourage the legislature to use their best efforts in ensuring that a good bill is passed as soon as possible.
Saturday, December 5, 2009
More from Law Inter Alia Blog
Ayisha from Law Inter Alia;s response to our comments and our follow up.
Ayisha
"Creative Energy you are right about power generation being decentralised under the 1999 Constitution but isn't the interpretation of the relevant sections in doubt if State generating and distributing power have to go through a federal agency such as NERC? what was the story between Lagos and FGN regarding the Enron barge during TInubu and Obasanjo's time? Why is there a limit to what states and IPPs can generate and distribute outside of the national grid? I also agree about unbundling but as long as we do not solve the gas problems and the 'price of electricity' problems (the FGN is the largest customer and I dare say biggest debtor of NEPA) and have a proper legislative framework in place...unbundling will do little for us."
Creative Energy
There is actually no limit to what the States can generate and distribute outside the national grid. The main problem is that the cheapest (and probably the most efficient) way to distribute power generated is through the existing national grid. The costs of developing another grid, which is isolated to a particular state or neighboring states is likely to be very high (perhaps prohibitive), which is why States like Lagos, who have tried to organise power generation, have passed this power on to the national grid for transmission and distribution. The controversy between Lagos and the Federal Government was essentially that Lagos wanted the power being generated by Enron (and being transmitted to the national grid) to be isolated to Lagos State i.e. that Lagos State should get the additional 300 or so MW being generated. My vague recollection was that the FG initially agreed to this but later reneged. The problem appears to be that the FG (being in control of the national grid) may want to allocate electricity in a politically expedient fashion.
Ayisha
"Creative Energy you are right about power generation being decentralised under the 1999 Constitution but isn't the interpretation of the relevant sections in doubt if State generating and distributing power have to go through a federal agency such as NERC? what was the story between Lagos and FGN regarding the Enron barge during TInubu and Obasanjo's time? Why is there a limit to what states and IPPs can generate and distribute outside of the national grid? I also agree about unbundling but as long as we do not solve the gas problems and the 'price of electricity' problems (the FGN is the largest customer and I dare say biggest debtor of NEPA) and have a proper legislative framework in place...unbundling will do little for us."
Creative Energy
There is actually no limit to what the States can generate and distribute outside the national grid. The main problem is that the cheapest (and probably the most efficient) way to distribute power generated is through the existing national grid. The costs of developing another grid, which is isolated to a particular state or neighboring states is likely to be very high (perhaps prohibitive), which is why States like Lagos, who have tried to organise power generation, have passed this power on to the national grid for transmission and distribution. The controversy between Lagos and the Federal Government was essentially that Lagos wanted the power being generated by Enron (and being transmitted to the national grid) to be isolated to Lagos State i.e. that Lagos State should get the additional 300 or so MW being generated. My vague recollection was that the FG initially agreed to this but later reneged. The problem appears to be that the FG (being in control of the national grid) may want to allocate electricity in a politically expedient fashion.
Tuesday, November 24, 2009
Information Minister gets lecture on managing oil wealth from Venezuelan Ambassador
The Venezuelan Ambassador to Nigeria has injected himself into the ongoing petroleum products deregulation debate by advising the Dora Akunyuli, the Information Minister that Nigerians currently pay significantly more for petroleum products than Venezuelans.
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