- FG threatens to revoke licences of DisCos over power supply
President Bola Tinubu has approved three new directives in the oil and gas sector to introduce fiscal incentives for related projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
This followed “extensive engagements, analyses, and benchmarking with other jurisdictions” a statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, said on Wednesday.
According to Ngelale, Tinubu approved the “Introduction of fiscal incentives for non-associated gas, midstream and deep-water developments.
“Streamlining of the contracting process to compress the contracting cycle to six months.
“The application of the local content requirements without hindering investments or the cost competitiveness.”
Wednesday’s directive is in keeping with his efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of Nigerians, said the Presidency.
It is also expected to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa, the statement further explained.
Ngelale noted that these incentives were developed in collaboration with the Federal Ministries of Justice, Finance, Petroleum, Budget and Economic Planning, Federal Inland Revenue Service, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.
The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation even as the Special Adviser to the President on Energy, Mrs Olu Verhijen, has been directed to “continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated time frame.”
FG threatens to revoke licences of DisCos over power supply
Meanwhile, the Federal Government, on Wednesday, threatened to revoke the licences of power Distribution Companies over persistent poor power supply across the country.
The Minister of Power, Adebayo Adelabu, made this known on Wednesday.
The minister, through his X handle, said the Chief Executives of Abuja Electricity Distribution Company, Ibadan Electricity Distribution Company, and the Managing Director of the Transmission Company of Nigeria have been summoned to a crucial meeting to explain the current challenges faced nationwide.
“The purpose of this meeting is to discuss the worsening power supply in their respective regions and to collectively find lasting solutions,” he said.
He lamented the insufficient electricity distribution by the Discos, despite the generation companies, saying, “The ministry has been exerting pressure on the Generating Companies to enhance their performance, resulting in a recent increase in generation to over 4000MW. Despite this progress, certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.”
He stated his commitment to hold all distribution companies accountable for their performance as “willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.”
He added, “Additionally, I have instructed TCN to prioritise repair works on damaged transmission towers and power lines to improve supply in affected regions. During recent supervisory visits to power-generating plants, I have witnessed firsthand the challenges faced by the sector.
“Plans are underway to settle outstanding debts owed to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide. I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians.”
