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FG to Prioritise FX Allocation to Egbin Power, Others

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Egbin Power FX allocation

By Adedapo Adesanya

The Minister of Power, Mr Adebayo Adelabu, has disclosed that the federal government was working to gradually offset the debt owed Nigeria’s largest power generation company, Egbin Power, from April 2024, noting that constraints of gas supply and foreign exchange (FX) are also being tackled.

Mr Adelabu gave this assurance during his visit to the power plant in Lagos as part of his strategic measures to strengthen understanding among stakeholders, offer robust support to players, and address the challenges in the sector, with the overall aim of boosting power supply in Nigeria.

“The federal government is prioritising paying down on the outstanding debt and I have assured the board and management of Egbin Power that, effective April, we will start paying as a form of encouragement to continue to have them in operations,” the Minister said, according to a statement.

Regarding the constraints encountered by power generation companies (GenCos) in accessing forex, Mr Adelabu stated that crucial steps were being taken to prioritize allocation to the GenCos.

“Forex sourcing has been a major constraint to effective maintenance of the facility. I have seen what we have on the ground here, and the critical need for spares and tools for continuous maintenance. We will liaise with the Central Bank of Nigeria (CBN) to prioritize foreign exchange allocation to the power sector.

“This will ensure the companies can ramp up capacity in terms of output. It is not just peculiar to Egbin Power Plant, it is across all the power generating Plants. They need Forex for them to be able to maintain the turbines and replace tools and spares. This has been a major issue. I am going to take steps to ensure I liaise with the CBN to see how they can prioritize Forex allocation to the power-generating companies,” he added.

While speaking on challenges of gas supply, he explained that engagements were held with the Ministry of Petroleum Resources and gas suppliers as part of measures to guarantee payment of debts and resolution of the gas constraints.

“Gas shortage has impeded almost all our gas power plants. And we already had a conversation with the Minister of Petroleum Resources. We are also meeting with the gas suppliers to plead with them and have an understanding that the FG is prepared to start paying down the debt that we owe the gas supply companies.

“We need to make some cash injection in terms of payments, we want to give them some guaranteed debt instruments in terms of promissory notes. And we are looking at allowing them access to Nigerian gas wells. So that this will be used to defray the outstanding debt of the gas suppliers over time,” he explained.

The Minister commended the Board and Management team of Egbin Power for its robust investment to improve, sustain and maintain the Plant’s infrastructure and facility while contributing largely to the sector despite the challenges.

Speaking on the issues, the Chief Executive Officer (CEO) of Egbin Power, Mr Mokhtar Bounour, said: “One of the major challenges we are facing is gas constraint, which is not allowing us to run the full capacity of the Plant. It requires a lot of investment efforts to keep the units running and safe.

“The other issue is the accumulated debt which the Minister discussed with us. On our part, we are adequately ensuring the maintenance, availability of the Plant and its efficiency. We are investing a lot to get these units to run optimally. This requires millions of dollars in investment,” Mr Bounour explained.

He commended the Minister for his commitment to address the challenges. “We highlighted the challenges we are facing, and the Federal Government, through the Minister of Power, has promised to start solving them gradually so we can start seeing improvements soon. We hope that the liquidity challenge will be solved soon as the Minister has promised,” Mr Bounour added.

In a related development, electricity distribution companies (DisCos) have pleaded for understanding from their customers as the country plunged into another blackout due to grid collapse – the second time this year after it collapsed on February 4.

The national electricity grid collapsed at 4:30 p.m. on Thursday, throwing millions of homes and businesses into darkness.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

Buying Pressure Buoys NGX All-Share Index by 0.10%

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All-Share Index NGX

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited witnessed continued buying interest from offshore and domestic investors on Thursday, strengthening the market further by 0.10 per cent at the close of transactions.

Data revealed that the All-Share Index (ASI) was up by 105.26 points yesterday to 105,430.15 points from the preceding day’s 105,324.89 points, and the market capitalisation expanded by N65 billion to close at N65.287 trillion compared with the previous session’s N65.222 trillion.

Business Post observed that the market participants showed interest in equities across the key sectors of the exchange because of their prospects to yield better value later.

The insurance counter gained 0.63 per cent, the consumer goods index appreciated by 0.18 per cent, the energy index improved by 0.13 per cent, the banking space jumped by 0.09 per cent, and the industrial goods industry grew by 0.04 per cent.

Eterna chalked up 9.88 per cent to trade at N33.35, Cadbury Nigeria also gained 9.88 per cent to finish at N26.70, Fidson increased its value by 9.77 per cent to N19.10, UPDC rose by 9.77 per cent to N2.36, and Deap Capital soared by 9.38 per cent to N1.05.

On the flip side, Tripple G lost 9.72 per cent to end at N2.23, Golden Breweries receded by 8.91 per cent to N7.87, Veritas Kapital slumped by 7.81 per cent to N1.18, Caverton dipped by 5.53 per cent to N2.05, and Regency Alliance slipped by 4.05 per cent to 71 Kobo.

When the bourse closed for the session, there were 33 price advancers and 23 price decliners, indicating a positive market breadth index and strong investor sentiment.

Yesterday, investors bought and sold 537.2 million shares valued at N23.0 billion in 15,450 deals versus the 1.1 billion shares worth N28.8 billion traded in 15,080 deals on Wednesday, representing a rise in the number of deals by 2.45 per cent, and a decline in the trading volume and value by 49.19 per cent and 20.14 per cent, respectively.

Access Holdings led the activity log with 61.6 million stocks valued at N1.7 billion, Sterling Holdings exchanged 50.2 million equities for N296.2 million, Zenith Bank traded 40.5 million shares worth N2.0 billion, FBN Holdings sold 38.8 million equities valued at N1.3 billion, and UPDC transacted 23.6 million stocks worth N54.4 million.

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Economy

Crude Oil Market Dips as Trump Reiterates US Plans to Boost Production

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crude oil market

By Adedapo Adesanya

The crude oil market continued its downward movement on Thursday after the US President, Mr Donald Trump, repeated a pledge to raise his country’s oil production.

Consequently, the price of Brent crude futures fell by 32 cents or 0.4 per cent to $74.29 a barrel and the US West Texas Intermediate (WTI) crude declined by 42 cents or 0.6 per cent to $70.61 per barrel.

President Trump repeated a pledge to boost US production in a bid to lower oil prices and ease consumer inflation. The US is already the biggest crude producer in the world.

This move unnerved traders a day after the country reported a much bigger-than-anticipated jump in crude stockpiles.

Market analysts have questioned whether US oil producers will be willing to pump more barrels in the current market especially with Trump’s tariffs on Canadian and Mexican imports looming.

US government data from the Energy Information Administration (EIA) showed domestic crude stockpiles rose by 8.7 million barrels last week on Wednesday.

Prices also drew support from new US sanctions against individuals and entities for facilitating shipments of Iranian oil to China.

This is as President Trump reimposed a maximum pressure campaign against Iran, but also said he was open to a deal with the oil producing country.

The US said the tankers onboarded Iranian crude from storage in China as part of a scheme involving Iran’s military, which stands to profit from the sale of the oil.

The sanctions block access of the individuals and entities to any of their assets in the US and prohibit US foreign assistance.

China is also not sitting on its oars, it responded to the US blanket tariff of 10 per cent on all Chinese imports with several measured retaliatory tariffs, including a 15 per cent levy on LNG and 10 per cent on crude oil imports from the US.

US crude exports could slide to 3.6 million barrels per day this year, especially if the Trump Administration enacts the tariffs on Mexico and Canada – currently on pause until March 4.

Amid these developments, Saudi Arabia’s state oil company, Aramco has sharply raised prices for buyers in Asia.

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Economy

Genesis Energy’s Cutting-edge Solutions Thrill Katsina Governor

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Genesis Energy Governor Dikko Radda

By Modupe Gbadeyanka

The Governor of Katsina State, Mr Dikko Radda, has expressed delight at the technological advancements and operational excellence of a leading provider of integrated energy solutions, Genesis Energy.

Speaking at a tour of the company’s facilities in Lagos and Port Harcourt recently, Mr Radda said, “I am glad with what I saw, and they have really exhibited their capacity in terms of power generation in Nigeria.

“What I have seen here is the turbine system of power generation which they have built for over 10 years, and it’s still running at full capacity.

“Additionally, we have seen how Genesis Energy distributes electricity and the processes of distribution and the efficiency of the service. This visit has really indicated to us that they’re up to the task and they’re capable. I believe that they can handle any project that has to do with power generation in our country,” he stated.

The Governor first visited the organisation’s 84MW off-grid power plant at the Port Harcourt Refinery, the largest licensed facility of its kind in Nigeria.

The visit underscored Genesis Energy’s critical role in providing a stable and efficient power supply to key industrial facilities.

He later proceeded to Genesis Energy’s Lagos power plant in Banana Island, Ikoyi, which features 2×7.5MVA and 15MVA Injection Substations operating at 33/11KV. This facility ensures uninterrupted electricity to commercial and residential areas, further cementing GENESIS Energy’s position as a trusted energy solutions provider.

The visit underscores the growing collaboration between state governments and private sector players in addressing Nigeria’s energy needs, while also reinforcing Genesis Energy’s role in delivering sustainable power solutions nationwide.

“At Genesis Energy, we are driven by the belief that strategic partnerships are essential for unlocking Nigeria’s vast energy potential. As we continue to expand our footprint and innovate in the energy sector, we are proud to support industries, stimulate economic growth, and pave the way for a more sustainable energy landscape.

“We thank Governor Radda for his insightful visit and look forward to future collaborations that will help drive transformative change across Nigeria’s energy sector,” the Executive Vice President of Operations and Maintenance at Genesis Energy Group, Mr Simon Shaibu, remarked.

Over the past decade, Genesis Energy has continued to expand its footprint in the power sector, deploying cutting-edge energy solutions to drive industrialization, economic growth, and enhanced energy security across Nigeria. The company remains committed to supporting national energy objectives through strategic partnerships and long-term investments in sustainable power infrastructure.

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