Recently some Nigerian industrialists and electricity generating companies look to import coal from South Africa, as a proactive measure against the lingering power supply crisis in the country. This move has reopened debate on the ‘abandoned’ coal deposits in many parts of the country. The firms claim this will enable them switch over to coal-powered turbines, due to frustrations being experienced by operators in getting gas to fuel their respective power plants.

This will go down despite an inferred reserve of 2.75 billion tonnes of coal deposit in Nigeria. Just as the country is a major crude oil producer but relies heavily on imported oil products, joining the league of coal importing countries is most unfortunate when the nation’s coal resources remain largely unexploited. Such mismanagement and poor attention to issues of national development planning is lamentable."

Nigeria is assessed to have about the largest gas reserves in the world, but the parlous supply infrastructure has compromised distribution to various plants requiring the commodity. Yet, the nation’s coal reserves remain largely unexploited, even after the Federal Government has sold out the blocs to prospective miners.

Besides, some power generating companies (Gencos) are in the process of converting their plants to coal-fired turbines, in view of unabated crisis in securing gas to power their respective facilities.

Mostly affected by the gas paucity crisis are the Gencos that are located inland, which have not got the close proximity advantage to the gas supplying facilities, which are located in the Niger Delta region. One of the operators, who spoke with The Guardian on condition of anonymity, pointed out that lack of distribution facility had been the bane of several power generating plants that are not located close to the source of the commodity.

Only recently, the Minister of State for Power, Mohammed Wakil, disclosed that the government was disposed to developing alternative sources of energy, which abound in the country, and would include the exploitation of large deposits of coal for power in Gombe, Enugu and Kogi/Benue axis.

LEADING the coal-import initiative from South Africa is Dangote Cement Plc, which has already placed an initial order of 30,000 tonnes of the commodity from the continent’s second largest economy to power its 60-megawatts plants, with another 30 megawatts generating facility on standby. The company has allegedly slated $250 million for power generating conversion, which would involve establishment of three plants at Dangote Cement’s facilities at Obajana in Kogi State; Gboko in Benue State; and Ibeshe in Ogun State.

Explaining the rationale behind the move, Group Managing Director of Dangote Cement, Devakupar Edwin, explained that the company had to be proactive in resolving the lingering power supply crisis in the country, as ‘‘we cannot afford to compromise the objectives of promoting value addition and job creation in Nigeria.”

Edwin stressed that ‘‘no business can survive in an atmosphere of energy crisis. If we don’t have power and fuel, our operations would become endangered.” According to him, ‘‘Dangote Cement would be investing $250 million in coal-based power plants, due to increasing difficulties in getting gas supply to power our electricity generating plants. All our kilns will be powered by coal, with the new plants located in Obajana, Ibeshe and Gboko,” he said

Edwin, however, explained that the coal importation agenda was only scripted as a temporary measure, to forestall system collapse in their operations.

‘‘We are aware of large coal deposits in Nigeria and the allocation of blocs to prospective miners. But we have to take urgent steps to safeguard our investments in the country, more so as exploitation of the commodity has not commenced on a scale that can sustain our operations. Currently, we don’t have either gas or black oil (low pour fuel oil) to run our machines fully. We even had to resort to importation of black oil to do our business,” he said.

Nigeria is one of the top countries with huge deposits of coal. The largest deposit of coal in Nigeria is in Enugu. It was mentioned by Nigerian Electricity Regulatory Agency as one of the options for new energy plans. Since all these years that Nigeria has been planning and investing in the energy sector, no one was doing anything to develop the large coal reserve in the southeast state of Enugu? Yet they want us to believe that the power reform plan is still on course. But when they commenced the building of gas turbines for power, they commenced plans to produce and supply gas.

"That did not materialise as many locations were judged as inaccessible for gas supply. We were told that the coal deposit in Enugu could serve Nigeria in the next twenty years. So what is the obstacle that stands between exploiting it and using it to improve our energy or electricity challenges?

See more: - http://thebusinessaim.com.ng/nigerian-industrialists-and-electricity-companies-to-import-coal-from-south-africa/

must we import everything? FG refuses to sponsor d youth to exploit n manage other resources we have apart from oil, One day we'll also import water. Mtcheeew!