News

Electricity Tariff Hike Looms As FG Raises Gas Price

Published

12 months ago

April 2, 2024

The Federal Government, on Monday, announced that the new price of natural gas for power generation companies is now $2.42 per metric million British thermal unit, higher than the previous rate of $2.18mmbtu.

Nigeria generates over 70 per cent of its electricity from thermal power plants that are fired by gas. Therefore, the rise in the cost of the commodity may lead to a hike in the tariff payable by power consumers once the Nigerian Electricity Regulatory Commission carries out another tariff review.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, an agency of the Federal Government, unveiled the new domestic base price and wholesale prices of natural gas for 2024 in an announcement on Monday.

The NMDPRA also pegged the cost of commercial gas at $2.92mmbtu, up from the previous cost of $2.5mmbtu. The announcement was signed by the Chief Executive, NMDPRA Farouk Ahmed.

Recall that the Multi-Year Tariff Order released by NERC in January 2024 for the electricity distribution companies was calculated based on the previous price of natural gas.

Therefore, going by the latest cost of the commodity, there is a high tendency for an upward review of power tariffs, as gas is a major component used in power production.

Gas producers including international and domestic oil and gas companies, have repeatedly called for the upward review in the price of the product, stressing that this would be an incentive to ramp up production.

In the announcement on Monday, Ahmed said the Petroleum Industry Act 2021 assented to by the President on August 16, 2021, and gazetted in August 2021, provided a clear regulatory framework for the determination of a market-based pricing regime for the domestic gas market.

The NMDPRA boss further stated that the latest action was taken in line with section 167, the third and fourth schedule of the PIA 2021, which mandated the regulator to determine the Domestic Base Price and the marketable wholesale price of natural gas supplied to the strategic sectors.

He said, “The DBP at the marketable gas delivery point under Sector 167(1) and other provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles.

“(b) The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas.

“(c) Lowest cost of gas supply based on three-tier cost of supply framework. (d) Market-related prices tied to international benchmarks.”

The NMDPRA, therefore, emphasised that it had set the “2024 Domestic Base Price at $2.42/MMBTU and wholesale prices for natural gas in strategic sectors, following consultations with stakeholders and in compliance with the PIA and Gas Pricing Regulations.”

News

BREAKING: 2 Female House Members Clash Over State of Emergency in Rivers State

Published

38 minutes ago

March 19, 2025

Gloria Ikibah

By Gloria Ikibah

Ahead of Wednesday plenary session, tension flared in the House of Representatives as two female lawmakers engaged in a heated argument.

Rep. Blessing Amadi (PDP, Rivers State) and Rep. Marie Ebikake (PDP Bayelsa State) were seen raising their voices at each other, with the disagreement linked to President Bola Tinubu’s declaration of a state of emergency in Rivers State on Tuesday, which led to the suspension of Governor Similayi Fubara and members of the Rivers State House of Assembly.

Naijablitznews.com observed Rep. Ebikake reading aloud from the Nigerian Constitution while Rep. Amadi, appearing visibly agitated, pointed at her colleague in disagreement.

Also in one instance, other lawmakers were seen in groups engaging in heated conversations, and Rep. Kama Nkemkama, a lawmaker from Ebonyi State was seen banging on a table before walking away in frustration

Meanwhile, the President is expected to formally transmit a correspondence to the National Assembly within two days, seeking legislative consent for the emergency rule. The matter is expected to dominate discussions at the plenary session.

News

Reps to Debate President Tinubu’s State of Emergency Declaration in Rivers At Wednesday Plenary

Published

1 hour ago

March 19, 2025

Gloria Ikibah

By Gloria Ikibah

The House of Representatives is set to deliberate on President Bola Tinubu’s declaration of a state of emergency in Rivers State.

This follows constitutional provisions that require the National Assembly to consider such a proclamation within two days if in session or within ten days if not.

A member of the House of Representatives, Rep. Patrick Umoh, in an interview on the News @10 on Nigeira Television Authority (NTA) explained that Wednesday plenary session will focus on the validity of the declaration and whether it aligns with the constitutional provisions.

Umoh emphasised that the president’s decision was made in response to threats to order and peace, as permitted under the Constitution.

“The President has done so, and there are reasons why this has been done, which are now public knowledge. It is the obligation of Parliament to consider the validity or otherwise of such a proclamation and then take our decision,” Umoh stated.

He also clarified that the House has the power to extend the state of emergency beyond six months if necessary, in line with Section 305 of the Constitution.

According to the lawmaker, he debate, will be conducted in collaboration with the Senate, given Nigeria’s bicameral legislative structure.

Addressing concerns that the state of emergency might lead to militarization and suspension of democratic structures in Rivers, Umoh disagreed with such views, insisting that the president’s decision aligns with democratic principles.

“I can’t concede to the argument of militarization. The decision to declare a state of emergency is in compliance with the Constitution. It is the discretion of Mr. President to appoint who administers the state where the declaration has been made,” he said.

On the possibility that the National Assembly might reject the declaration, Umoh noted that such a decision would mean the emergency rule cannot stand, as the Constitution requires legislative approval.

“If today the decision of Parliament does not go in sync with the declaration of the president, then the decision of emergency cannot stand. That’s the provision of the Constitution,” he stressed.

With the House expected to debate and take a resolution today, all eyes are on the National Assembly to determine the next steps in Rivers State.

News

Army notifies A’Ibom residents ahead of shooting practice exercises

Published

7 hours ago

March 19, 2025

Admin

The 2 Brigade, Nigerian Army in the Abak Local Government Area of Akwa Ibom State has announced plans to hold this year’s first quarter range classification exercise.

The exercise will begin today, March 19 and last till March 28, 2025, according to a statement by the acting Assistant Director, Army Public Relations, Lt Adebowale Adejimi.

Adejimi appealed to residents within the range area to stay off designated areas and not to panic at the sound of gunshots, adding that adequate preparations had been made for their safety.

“The headquarters 2 Brigade, 2 Brigade Garrison, and other Sub-units are scheduled to hold the First Quarter Range Classification Exercise for the year 2025 at 6 Bn Range Area in Abak LGA, from 19 – 28 Mar 2025.

“Consequently, the good people of Abak LGA are pleased requested to stay off the designated exercise area. They are also requested not to panic at the sound of gunshots.

“They are also to note that adequate measures have been emplaced for safety and security at the range area and environs.

“You are please requested to disseminate this to the general public for their awareness and safety. Thank you for your usual cooperatiom,” the statement added.

It urged residents not to panic at the sight of moving troops and gunshots.