
Stakeholders have proffered strategies that could advance the energy sector in 2025, SUCCESS NWOGU reports
The Crude Oil Refinery Owners Association of Nigeria (CORAN) has called for the availability of sufficient feed-stock for indigenous refineries to make Nigeria a refining hub in Africa.
CORAN
Publicity Secretary, Eche Idoko, in an interview with New Telegraph over the weekend, also noted that with refining operations of about $20 billion worth 650,000 barrels per day capacity Dangote Refinery that is built at Free Zone, Lekki, Lagos, the resumption of operations by the old Port Harcourt and Warri refineries, the expected resumption of the new Port Harcourt Refinery and Kaduna Refinery, it is imperative to have enough crude oil.
He added that there should be feedstock for six modular refineries expected to commence operation soon in Nigeria.
They are: Azikel Refinery located in Yenagoa, Bayelsa State, with a capacity of 12,000 barrels per day (bpd); OPAC Refinery situated in Kwale, Delta State, with a capacity of 10,000 bpd; Duport Midstream Refinery located in Egbokor, Orhionmwon Local Government Area, Edo State, with a capacity of 2,500 bpd; Waltersmith Modular Refinery situated in Ibigwe, Imo State, with a capacity of 5,000 bpd and plans for expansion to 50,000 bpd; Atlantic Modular Refinery located in Brass, Bayelsa State, with a planned capacity of 2,000 bpd and Edo Modular Energy Refinery situated in Ologbo, Edo State, with a capacity of 6,000 bpd. He also advocated for more collaboration between CORAN and the Nigerian National Petroleum Company Limited (NNPC Ltd); the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as well as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
CORAN Idoko said: “Somehow, this year has been declared an oil and gas year with much happening. We are likely going to see more activities in oil and gas in the United States of America for instance.
In Nigeria, we hope that with more refineries coming on stream, and Nigeria can prove that they are a major refining hub, we will address the fundamental issue that will help refining which is the presence of feedstock.
“We are hoping that more fields will come into production this year. We want to see how NUPRC will enable more availability of crude oil for these refineries to produce.
Dangote is operating now, Port Harcourt refinery is operating, Warri is back and coupled with the six modular refineries that are operating.
We hope two more modular refineries will join this year. We want to see that there will be more investment in production.
“Very strategically and very importantly as well that will affect the common man, we want to see more cooperation and more coordination around the pricing of the petroleum product.
We do understand that it is a free market and there is going to be a price war, as a result of price competition, we want to see more coordination and we are hoping that those of us who are in the refining space should be able to work together.
“We want to see more collaboration with NNPC. We want to see how we can work with NMDPRA in coordinating pricing and distribution of these products so that the common man can actually reap the benefits this year.
We are hoping that the audacious economic policies by the federal government will begin to yield results and we see the naira continue in this improvement, if this trend continues, what it means is that our FX will go down and this will significantly affect the price at which we buy the feedstock and it will actually dovetail into affecting the pricing of petroleum products so that it can be affordable to the common man.
“A number of policies put by the federal government have started to yield results. We have seen the naira appreciate against the dollar and we hope that this trend will continue, if it continues and we are able to achieve naira to dollar to N1,000 or below mark, we are going to see very significant improvement in the price.”
Consultant
An oil and gas governance consultant, Mr. Ademola Adigun, urged the government to provide an environment that is enabling for completion of all the diversification of the existing divestments. Adigun, who also is Chief Executive Officer, AHA Consultancies, called for the sustenance of the war on crude oil theft.
He said: “Government should continue what they have been doing, that is making the environment for business conducive generally, complete all the diversification of the existing divestments which is good.
They should improve on reducing oil theft, reducing the fiscals and generally continue the downstream reforms. That will be very good for the economy.”
Analyst
A power sector analyst, Hilary Igale, said that to improve Nigeria’s power sector in 2025, several key areas needed attention.
He stated that it was necessary to expand power generation by increasing power generation from the current 4,000MW-5,000MW to 6,000MW with a focus on hydro and solar plants to enhance elec
Strategies should be activated to develop training programmes, for energy sector professionals and strengthen institutional capacity
tricity supply. For him, this can be achieved through renovating existing power plants or upgrading and maintaining existing power plants to ensure optimal performance; investing in new power projects and developing new power projects, such as the Mambilla Hydroelectric Power Project, to increase generation capacity; and promoting independent power producers (IPPs) by encouraging private sector investment in power generation through IPPs.
He stated that there should be the improvement of transmission infrastructure, for instance, upgrading the national grid to reduce frequent collapses is essential.
He stated that The Transmission Company of Nigeria should be supported in its plans to operationalize the Supervisory Control and Data Acquisition (SCADA) system and enhance grid monitoring and control by the first half of 2025.
He added that to embark on upgrading transmission lines and substations, thetr is need to strengthen the grid by replacing old infrastructure and increasing transmission capacity as well as implement a robust maintenance culture and regularly maintain transmission infrastructure to prevent breakdowns.
Renewable energy
Igale said renewable energy development was key to advancing the power sector. He added that developing renewable energy sources, such as solar mini-grids and decentralised energy systems, is vital for rural electrification.
He added that public-private collaborations and international partnerships can drive progress in this area. He stated that it was imperative to embark on solar energy development, harnessing Nigeria’s abundant solar resources to generate electricity.
He opined that wind energy should also be developed by exploring wind energy potential, particularly in the northern regions.
He also called for hydrokinetic energy development which will lead to tapping into the energy potential of Nigeria’s rivers and ocean tides. The analyst said that gas supply issues should be addressed.
He said: “Most of Nigeria’s electricity is produced by gas-fired plants. Resolving challenges like pipeline vandalism and inadequate infrastructure is necessary to ensure consistent gas supply.
“Securing gas pipelines, protecting gas pipelines from vandalism and sabotage, developing gas infrastructure, investing in gas processing plants, storage facilities, and transportation networks as well as diversifying gas supply sources and exploring alternative gas supply sources, such as liquefied natural gas (LNG) imports are very crucial to power sector growth.”
He added: “Distribution networks should be enhanced. Inadequate distribution networks and infrastructure have underserved many areas, especially rural regions.
Investing in distribution networks will help increase access to reliable electricity. “There should be distribution infrastructure upgrade through the replacement of old and inadequate distribution infrastructure with modern and efficient systems, expansion of distribution networks and extension of distribution networks to unserved and underserved areas.
“Implementing smart grid technologies, adopting smart grid technologies to enhance distribution efficiency and reduce losses are important.” The analyst canvassed the reduction of dependence on generators.
He noted that households and businesses rely heavily on gasoline-powered generators due to unreliable grid power, adding that improving grid power will help reduce this dependence and decrease costs and pollution.
He said: “There should be grid reliability increment, enhancement of grid reliability through infrastructure upgrades and maintenance; promoting of energy efficiency, encouragement of energyefficient practices and appliances to reduce energy consumption as well as developing alternative energy sources and supporting the development of alternative energy sources, such as solar-powered generators.
“Energy theft and losses should be addressed. Energy theft and losses are significant challenges in Nigeria’s power sector. Addressing these issues will help reduce revenue losses and improve the sector’s viability.
“Implementing smart metering, deploying smart meters to accurately measure energy consumption and detect theft, enhancing grid security, protecting the grid from tampering and vandalism; improving revenue collection and strengthening revenue collection mechanisms to reduce losses are required.
“Regulatory frameworks should be strengthened. A robust regulatory framework is essential for a well-functioning power sector. Strengthening regulatory frameworks will help attract investment, promote competition, and ensure compliance.
“There should be a review and update of regulations. Periodically reviewing and updating regulations to reflect industry developments and best practices are required.
Enhancing regulatory enforcement and strengthening regulatory enforcement mechanisms to ensure compliance as well as promoting transparency and accountability, and encouraging transparency and accountability in regulatory decision-making are key.
“Capacity building and training are required. Capacity building and training are essential for developing the skills and expertise needed to manage and operate the power sector efficiently.
“Strategies should be activated to develop training programs, create training programs for power sector professionals; enhance institutional capacity, and strengthen institutional capacity through capacity building and training and promoting knowledge sharing.”
Mining sector
A mining expert, Mary Iwobi, said the mining sector should be improved upon. He stated that to boost the mining sector’s growth in 2025, several key strategies must be implemented. She identified the strategies to include embracing digitalization and innovation.
He stated that the mining industry needs to adopt digital technologies to improve efficiency, reduce costs, and enhance sustainability.
According to him, this includes leveraging technologies like artificial intelligence, automation, and the Internet of Things (IoT) to optimise operations. She also advocated focusing on sustainability and environmental stewardship.
She said that miners must prioritize environmental sustainability, reducing waste, conserving water, and promoting biodiversity.
According to her, this not only enhances their reputation but also ensures compliance with increasingly stringent regulations. Iwobi said: “Addressing capital discipline and access to funding cannot be over-emphasised.
The sector must balance growth aspirations with capital discipline, exploring innovative financing options and partnerships to secure necessary funds.
“Another issue is developing strategic partnerships and collaborations. Mining companies should foster partnerships with governments, technology firms, and other stakeholders to drive innovation, improve operational efficiency, and enhance sustainability.
“Prioritizing workforce development and talent attraction are important. The industry must focus on attracting, retaining, and upskilling talent to address the impending skills gap and ensure a sustainable future.
“Another point is ensuring responsible mining practices. Companies must prioritize responsible mining practices, engaging with local communities, and ensuring that their operations contribute positively to the social and economic fabric of the regions they operate in.
“By addressing these critical areas, the mining sector can overcome its current challenges, capitalize on emerging opportunities, and achieve sustainable growth in 2025 and beyond.”
Ajaokuta Steel
A steel sector analyst, Ibrahim Bunu said Ajaokuta Steel Company should be made operational in 2025. He, however, stated that making it functional in 2025 requires addressing several key challenges.
He said the rehabilitation and completion of the plant is crucial, adding that fortunately, plans are underway to kick-start the revitalisation process in the first quarter of 2025.
He said that to ensure the plant’s functionality, the following steps must be taken: Addressing infrastructure challenges. According to him, the plant’s infrastructure, including roads, railways, and utilities, needs to be upgraded to support its operations.
He also said that securing of funding is pivotal, adding that adequate funding is required to complete the rehabilitation process and ensure the plant’s sustainability.
He also called for partnership with international experts. He opined that collaborating with international experts, such as the original builders of the plant, Tyazhpromexport (TPE), can provide valuable technical support and expertise.
Bunu said: “In addition, developing a robust maintenance culture is advised. Implementing a robust maintenance culture is essential to prevent equipment failures and ensure the plant’s longevity.
“Energy supply challenges should also be addressed. A stable energy supply is critical to the plant’s operations. Ensuring a reliable energy source, such as connecting to the national grid or exploring alternative energy sources, is vital.
Last line
“By addressing these challenges and taking a comprehensive approach to rehabilitation, the Ajaokuta Steel Company can become functional in 2025 and contribute significantly to Nigeria’s economic growth and development. Adopting strategic measures will also advance the energy sector in 2025.”