By Adedapo Adesanya

The federal government’s payment of electricity subsidies neared N200 billion, as it increased to N199.64 billion in December 2024.

This is according to data sourced from the Nigerian Electricity Regulatory Commission (NERC) in its newly released report, December 2024 Multi-Year Tariff Order,

The regulator computed that electricity subsidies rose by 2.76 per cent to N199.64 billion this month from N194.26 billion in November.

NERC explained that the rise in the exchange rate, which it pegged at N1,687.45 to the Dollar, the increase in inflation to 33.9 per cent, and changes in available generation capacity necessitated the minor review.

The report showed that the federal government retained electricity tariffs across all customer categories bar those who were migrated to the expensive Band A, which are expected to receive a minimum of 18 hours of electricity daily.

While Band-A customers now pay a revised N209/kWh, tariffs for customers in Bands B to E were allowed to remain frozen at the rate payable from December 2022.

With the policy, the federal government is expected to pay N29.10 billion (up from N27.86 in November) as subsidies for consumers under Abuja DisCo, while consumers under Ikeja Electric would enjoy electricity subsidies of N26.68 billion from the government.

On wholesale gas-to-power prices, NERC stated: “The review maintains the benchmark gas-to-power price of $2.42/MMBTU based on the established benchmark price of gas-to-power by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.”

The Commission maintained that the “approved tariffs shall remain in force subject to monthly adjustment of pass-through indices including inflation rate, NGN/Dollar exchange rate and gas-to-power prices.”

Business Post reported recently that the NMDPRA denied that it didn’t halt the distribution of gas to generating companies over a massive debt.

Meanwhile, the country has faced over 10 national grid failures this year alone throwing Nigerians into darkness with the most recent occuring earlier this month.

By Adedapo Adesanya

The Economic and Financial Crimes Commission (EFCC) has re-arraigned a former managing director of the defunct Bank PHB Plc (now Keystone Bank Limited), Mr Francis Atuche, and two others before the Special Offences Court sitting in Ikeja, Lagos on a nine-count charge bordering on conspiracy to commit felony and forgery.

Mr Atuche is currently serving a six-year jail sentence over a N25 billion fraud alongside one Mr Ugo Anyanwu (four years) after their conviction in June 2021.

Now, Mr Atuche and the two others, Mr Nnosiri Joachim (also known as Ifeanyi) and Mr Uguru Onyike were arraigned before Justice Olubunmi Abike-Fadipe.

When the charge was read to the defendants, they all pleaded not guilty.

Prosecution counsel, Mr Fanen Anum, told the court that the matter is starting de novo and therefore asked for a trial date.

Meanwhile, the counsel to the first defendant, Mr Anthony Ejere, prayed that the court allow his client to enjoy the earlier bail granted him by the court, despite that he was still a convict in another matter.

Also, counsel to the second and third defendants, Clement Onwuenwunor (SAN), asked the court to allow his clients to enjoy the earlier bail granted them by the court.

In her short ruling, Justice Fadipe upheld the request of their counsels that they be allowed to continue on the bail granted them by Justice Adeniyi Onigbanjo (rtd) and adjourned the case till May 6, 2025, for trial.

For context, Mr Atuche and the two other suspects were originally arraigned before Justice Habeeb Abiru before his elevation as a Justice of the Court of Appeal and subsequently as a Justice of the Supreme Court.

The case consequently started afresh before Justice Adeniyi Onigbanjo (who has now retired) hence the transfer of the case file to Justice Abike-Fadipe.

It was alleged that Mr Atuche contacted Joachim Nnosiri, an office assistant with Keystone Bank’s Central Sharing Services Centre in Lagos, to deliver some allegedly forged documents to the bank’s corporate headquarters also in Lagos for onward presentation in court as exhibits in an ongoing case between Mr Atuche and the EFCC.

The alleged forged documents are said to be board resolutions of Future View Securities Limited; Extra Oil Limited and Trajek Nigeria Limited.

The documents had been missing from the bank since October 2009.

By Adedapo Adesanya

Shell Nigeria Exploration and Production Company Limited (SNEPCo), the Nigerian subsidiary of Shell Plc, has announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

This will be the first of such investments in over a decade.

According to a statement on Monday, Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55 per cent interest.

Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day. The project produced its one-billionth barrel of crude oil in 2023.

This means Shell will operate the majority (55 per cent) in the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20 per cent), Nigerian Agip Exploration Ltd. (12.5 per cent), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5 per cent), on behalf of the Nigerian National Petroleum Company (NNPC) Limited.

The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

“The investment in Bonga North is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s Upstream business,” the oil major said.

The project will sustain oil and gas production at the Bonga facility. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with the first oil anticipated by 2030.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Ms Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.

President Bola Tinubu has welcomed the move saying it underscores the transformative impact of his administration’s policies and reforms in attracting investments in the oil and gas sector.

“This FID on Bonga North, and the FID on Ubeta earlier in 2024 both demonstrate the efficacy of the oil and gas reforms and directives championed by the President.

“These projects will trigger broader investments to revolutionise Nigeria’s power generation, transportation, and manufacturing sectors. In 2025 we anticipate further FIDs from international and domestic players. A new era of growth and opportunity for Nigeria,” according to a statement by the Special Adviser to the President on Energy, Ms Olu Verheijen.