PaulIdu:
No need to feed it to the national grid again ..I am tired of that lame law ..let it be used to power sokoto city which will automatically make more power available on the national grid

You just echoed one of the policies frustrating growth in the power sector. The situation in Abia state is an example.

Blue3k:


The multiplier effect has nothing to do with transfer payments such as allocation money. Stop using terms you dont know. You embarrass yourself enough. Both terms were correct.

The multiplier effect and cascade effect have nothing to do with why south is economic engine of nigeria. Allocation doesn't have anything to do with multiplier. The money goes to state govenment as tax revenue not to business or individuals.

Explain why you are using terms you dont understand. We are talking about allocation. I left definitions I could find.

http://www.dictionary.com/browse/multiplier-effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.


https://en.m.wikipedia.org/wiki/Cascade_effect

A cascade effect is an inevitable and sometimes unforeseen chain of events due to an act affecting a system.


http://www.investopedia.com/terms/m/multipliereffect.asp#ixzz4RcbNDZNU

What is the 'Multiplier Effect'
The multiplier effect is the expansion of a country's money supply that results from banks being able to lend.

Abeg go pack one side; because you no reach my level.

You continue to represent those ppl with very limited mental agility and intellectual capacity that can only operate from a narrow one dimensional perspective against the reality of a three dimensional world.

For example if taught to recognise the image of an upright cup such person easily becomes confused and unable to recognise the same image as a cup once it is turned sideways or at any other angle other than upright.

Now go back and carefully revise all my posts and come back when you finally understand what I have been talking about.

MeAboki:

Now go back and carefully revise all my posts and come back when you finally understand what I have been talking about.

Stop your your nonsense. When I said the south productivity igr abd gdp is isn't based solely on oil revenue. You said it had to do with northern oil bloc owners first then you said it has to do with multiplier effect and cascade effect. All your points fell to floor you are truly pathetic dunce for continuing to this clown show. You don't even understand either term that's why you can't defend that point when I press you. Then you end up switching topic to new direction.

I already said as well I'm not sure about the oil block thing. I haven't seen credible source like minister or government website that documents this. Just silly articles and nairaland post with no source.

Stop these weak replies. Even if the revenue is generated by someone who's born in north it's counted as southern gdp and productivity. It's like saying east coast of USA made California successful because Facebook is head quatered there. It's as stupid as your other dumb points. You associate individual with state and geopolitical region.

Are going to say east coast developed and is responsible for silicon valley. No because it took place in California and industry in California. The place we're the individual entrepreneurs doesn't matter. Only a twit would think so.

All the southern geological regions out produce in terms of gdp and igr. The southern productivity isn't completely oil. Lastly 7/13 of richest Nigerians are from south. Almost all the companies they run are based in south where the do bulk of operations.

MeAboki:


Opunu! everything you talked about: IGR, GDP etc are all related to the oil revenue being locally generated by northern oil bloc owners while you greedy, lazy and parasitic lot do fvck all.

Blue3k:


Lol no its not. The igr is not dependant on northern block owners. Hence why kano in top 10. Second lagos is number one because oil nope. Another failure on your part. You keep switchin points. I proved the north generates least economicly now you hide failures.

Why is Anambra on top ten in igr. Quit talking nonsense and think. North is laggard region because you're pathetic lot hates facts and reason. They need to invest in educating so you children don't grow up to be mouth breathers like yourself.

Your myopic world view makes you think every economic development is all about oil.

MeAboki:

I guess you have never heard of cascade or multiplier effect - go figure.

Did I hear someone say 30 mW can power a whole state?
Firstly lets know what 30 mW is?
30 mW = 30000 kw
30000 kw = 37000 kva

Let's assume each home/office/Biz premise uses an average of 5kva per day. (Assuming the consumers are households and small businesses)
That will be 37000/5 = 7400 users.
What is the max that can be charged users monthly in Sokoto?
If we peg it at #10,000
That will be 7,400 X 10,000 = #74,000,000

Since the plant uses 33,000 daily, monthly consumption will be about 1,000,000 ltrs monthly.
If the fuel is sourced at #150 per ltr ( which I doubt they can get that low)
Monthly will be = #150,000,000 monthly.

So if you run the plant with #150,000,000 monthly (excluding maintenance and salaries) and rake in #75,000,000.
Is that sustainable?

The project can only be sustainable is areas like Lagos, port Harcourt, Abuja and other highbrow areas that won't mind paying say #30,000 - #50,000 monthly for uninterrupted power supply.
Then and only then can the project be a sustainable one.

Just my humble opinion.

crisycent:


Tell me how much they sell and let's analyse it here.

I dont know that is why I cant conclude. Without the data, you cant just say its not profitable.

ernieboy:

here is a more comprehensive analysis.
the current cost of elec in Nig. is about 19 naira. but remember that both transmission and distribution have a cut in that 19 naira but for the purpose of simplicity let's assume the gen plant gets the entire 19 naira per kW.

cost of 1 mW of power------ 19 x 1000(1000 kW make 1 mW)=19000 naira

cost of 38 mW daily output------- 38 x 19000=732000 naira per day

cost of diesel 33000 litres @ 100 naira per litre( conservative subsidized estimate)------33000 x 100=3,300,000 daily

bottom line------- daily revenue(732000) - daily cost (3.3 million) = -2,568,000 (daily loss)

note this analysis is based on the gen plant getting the entire 19 naira per kW which is not possible because trans and distribution will collect a cut

also the analysis is based on a subsidized 100 per litre of diesel.

This analysis is not complete.

Donbigi2:


That plant is not sustainable
It cost 33 000 liters per day to run it
300mw should cost 330 000 liters per day to run
3000mw should cost 3 300 000 liters to run
According to your logic...


You see why it's not sustainable?

You have a point but, from a layman's view. Do you know that Nigeria consume about 40million liters of PMS per day.
If it will cause using 3.3million liters to power turbine that will generate 3000MW which is more that 75℅ power generated now, don't you think it make sense.
It simply means quantity of fuel use by individual Wil reduce drastically and then channel to the power plants.

Keneking:
Up North

Indeed Tambuwal and others are doing well

Unlike South West, where there is no progress in power..always relying on Niger Delta gas

Important points:

“it consumes 33,000 litres per day.” ie One trailer per day
“It is only after it works for five years that it can be shut down for routine maintenance,”

wen will you atop this hatred
hope you are not amongst dose enemy of development that pushed Nigeria into recession by bombing installations

2n2k:


@ bolded. Diesel can be trucked in standard tankers by road up north. They just need a big tank to at least hold may be a 30 days stock at a time. There is no gas pipeline to Sokoto currently. Who will build one? Will such pipeline not be at risk of vandalisation by the ND militants like the one for kaduna refinery?

You are right. Diesel is usually moved by tankers anywhere in the world, except in advanced country where the power station is in direct negotiation/contract with refineries. Here, fuel transfer lines are built and diesel supply are monitored by flow-meters, so as to check and calculate quantities used. Diesel Storage tanks of at least 5000 meter cubic must be constructed (usage/reserve in case of emergency).

I'm sure you've heard of liquefied natural gas. Jordan, a country in the middle east, with 9 Million population has no single mineral resources or crude oil, and yet are able to generate 6000 MW at the moment. How do they run their natural gas fired power plants? LNG.
They get supplies from Saudi Arabia and Israel at the port of Aqaba, and transport these liquefies gases by tanks to be used in power station. Nigeria has LNG and should start utilizing also.

glambo:


You have a point but, from a layman's view. Do you know that Nigeria consume about 40million liters of PMS per day.
If it will cause using 3.3million liters to power turbine that will generate 3000MW which is more that 75℅ power generated now, don't you think it make sense.
It simply means quantity of fuel use by individual Wil reduce drastically and then channel to the power plants.

Don't forget that cars consumes fuel (so 40m can't be just for electricity) what of people that pay 1k for power like me but my fridge, ac tv etc are always on?
Nigeria can't cope with that generator infact the north can't cope with it because they don't use pay as you go meter

ernieboy:

here is a more comprehensive analysis.
the current cost of elec in Nig. is about 19 naira. but remember that both transmission and distribution have a cut in that 19 naira but for the purpose of simplicity let's assume the gen plant gets the entire 19 naira per kW.

cost of 1 mW of power------ 19 x 1000(1000 kW make 1 mW)=19000 naira

cost of 38 mW daily output------- 38 x 19000=732000 naira per day

cost of diesel 33000 litres @ 100 naira per litre( conservative subsidized estimate)------33000 x 100=3,300,000 daily

bottom line------- daily revenue(732000) - daily cost (3.3 million) = -2,568,000 (daily loss)

note this analysis is based on the gen plant getting the entire 19 naira per kW which is not possible because trans and distribution will collect a cut

also the analysis is based on a subsidized 100 per litre of diesel.

Note that the cost of electricity per kW hour is not uniform for all customers.

1wolex85:


I dont know that is why I cant conclude. Without the data, you cant just say its not profitable.

Lol

5 trillion Nara will generate 40000MW of electricity which will solve our needs. Perhaps another 2 trillion would do the transmission and distribution issues. May take 5-8 years to finish. If each state does what Kano ten times we can have power soon over a period of three years.

stpat1:
Did I hear someone say 30 mW can power a whole state?
Firstly lets know what 30 mW is?
30 mW = 30000 kw
30000 kw = 37000 kva

Let's assume each home/office/Biz premise uses an average of 5kva per day. (Assuming the consumers are households and small businesses)
That will be 37000/5 = 7400 users.
What is the max that can be charged users monthly in Sokoto?
If we peg it at #10,000
That will be 7,400 X 10,000 = #74,000,000

Since the plant uses 33,000 daily, monthly consumption will be about 1,000,000 ltrs monthly.
If the fuel is sourced at #150 per ltr ( which I doubt they can get that low)
Monthly will be = #150,000,000 monthly.

So if you run the plant with #150,000,000 monthly (excluding maintenance and salaries) and rake in #75,000,000.
Is that sustainable?

The project can only be sustainable is areas like Lagos, port Harcourt, Abuja and other highbrow areas that won't mind paying say #30,000 - #50,000 monthly for uninterrupted power supply.
Then and only then can the project be a sustainable one.

Just my humble opinion.

Excellent!! in Australia, an average home spends 150 AUD per month which is 150x200 =#30,000 per month

obailala:

These are interesting figures. If just N3.8billion could build a 30mw gas/diesel plant, then I would assume N38 billion can build a 300mw plant and N380billion (~$1bn) can build a 3000mw plant.

If these above figures are real, one begins to wonder how OBJ spent $16billion and GEJ spent about $8billion, yet power generation capacity is still not up to 6000mw.


This is one bloody expensive venture to operate, reason Nigeria should forget the initial capital cost and consider solar power.

[size=2pt]Attn: Lalasticlala[/size]

bring the moni na. Or you think $1m per mw na beans.mind you we need between 50 and a 100 gw of power.
That's 50 to 100 billion dollars with a d
We have gas let us manage it till solar comes down.besides nothing is holding you from using solar for residential

THE 33,000LITRES DIESEL USAGE SOKOTO POWER PLANT.
By Kolawole

Last night I stumbled on this news headline on nairaland “The Sokoto State Government has successfully conducted a test-run of its N3.8 billion Independent Power Project (IPP)” read it here https://www.nairaland.com/3496136/sokoto-test-runs-independent-power. Looking at the headline, you wouldn’t understand where I’m heading until you read the body of the news. As usual and common to Nigerians on social media, the criticism and commendation begin with most of the comments both against and support lacking in-depth knowledge of the subject matter.

Let me summarized the content and the bone of contention. Summary;

“The project, awarded in November, 2008, is the first of its kind in the Northern part of the country, with an installed capacity of a minimum of 30 megawatts and a maximum of 38 megawatts. It cost 3.8 billion naira and almost 8years to build. The plant which is now being test run on diesel, will consumes 33,000 litres per day.”

“Did you see that? 33,000 liters per day.” 33,000 liters of diesel is one fully loaded truck, YES’ I mean the longest truck or say na Tanker we dey call am. Lol

This is what causes the arguments, trust naija people; we started voicing our opinions as if we are experts in the field.

Realizing the technicality of the subject matter, and the absurdity and ridiculousness of a plant using 33,000 litres to an ordinary mind, I decided to seek knowledge and get understanding on it.

In fact, one comment simply put it “what makes it different from mikano generator”

This fuels my hunger more.

Imagine! Milkano Generator for that matter.

Now, here is my findings and please note, I intentionally made it simple by not factoring transmission and personnel cost.

kolagbemi:

Now, here is my findings and please note, I intentionally made it simple by not factoring transmission and personnel cost.

I think you post got cut off.

Blue3k:


I think you post got cut off.

Yes my brother. I've been trying to post it for days now but nairaland antispam kept banning me. it has banned me again.

I've however posted it on my blog.

you can read it here https://kolagbemi./2016/12/05/the-33000litres-diesel-usage-sokoto-power-plant-by-kolawole-raiyegbemi/

Thanks

Blue3k:


Dude get a clue. The IGR In the north is lowest of any region. Second yes people would get cut either way due to royalty check if federal government didn't hold exclusive domain over land and mineral resources.

Stop lying to yourself. The north has highest poverty rates, lowest standard of living, lowest GDP, lowest gdp per capita, lowest IGR, lowest igr to Allocation ratios.

Ps: I find allocation system to be bad system because it enables laziness especially the laggard north. Fiscal federalism would be better.

Only a slowpoke would talk like this. Your busy quoting nouns and adjectives you can't explain.

Let me use a country many like you worship to give an example. How does the US state's social system work ? Do you know why it's called the welfare state ?

You say the north has high poverty levels and yet you want to cut off the support lines - to feed people who by your warped logic are already fat.

Please, dont make comments on issue like these because you have the worst value system I am yet to encounter.

escapefromusa:


Only a slowpoke would talk like this. Your busy quoting nouns and adjectives you can't explain.

Let me use a country many like you worship to give an example. How does the US state's social system work ? Do you know why it's called the welfare state ?

You say the north has high poverty levels and yet you want to cut off the support lines - to feed people who by your warped logic are already fat.

Please, dont make comments on issue like these because you have the worst value system I am yet to encounter.

Your the one talking nonsense. I already live in United States. The stats I mentioned are true. The social support goes to only the poor citezens and for limited time and scopes. You being unproductive person that refuses to work doesn't mean you can feed of government teet. That's different from allocation that goes to poor unproductive ststes.


Quit being leach and crying for system that rewards laziness. The place is poor due to bad economic policies. The system you advocate for doesn't help poor but keeps them poor.

The us welfare system does do some hard due to fact some poor people would leach of system due to fact the make more doing nothing being able to keep benefits then working. After you make certain

Ps: just because you don't understand terms and stats listed doesn't make them incorrect. No i dont just say north has high poverty the statistics do. Lol instead of disproving my points you go on emotional rant about how I hate poor people lol. Get a life crybaby. Those childish arguements should be left to inbreds among your ilk.

escapefromusa:


Only a slowpoke would talk like this. Your busy quoting nouns and adjectives you can't explain.

GDP = Gross domestic product
IGR = Internally generated revenue
Per capita: per person.
Ratio = proportion

escapefromusa:

Let me use a country many like you worship to give an example. How does the US state's social system work ? Do you know why it's called the welfare state ?

The social welfare system works by product tax payer given money to government to give to poor individuals not state government as transfer payment. The are various rules to who qualify and how long for welfare. The nation doesn't doll out allocation to states.

The usa called welfare state because of amount of money spent on entitlement spending. The welfare state hasn't helped eliminate poverty like it's intended goal was in the 60s was. The great society program president johnson dreamed failed.

escapefromusa:

You say the north has high poverty levels and yet you want to cut off the support lines - to feed people who by your warped logic are already fat.

Letting the states that produce keep the tax revenue that's generated in theur states isn't wrong. That's how it should work. The money doesn't go to people it goes to government coffers. You crying like leach for money that generated outside of borders like a baby is weird.

It's like Borno state having diamond mine. The government keeps most of revenue then gives Borno small fraction. Then distributes the rest to states that have nothing to do with production that went on. Instead of focusing on becoming more productive they looking to ear fruits of another states labor.

Lastly the allocation system doesnt benefit north person on average. The money that been given out hasn't brought it to parity. It's just enabled the state government laziness economicly speaking.

Please read my article on the topic here.

https://kolagbemi./2016/12/05/the-33000litres-diesel-usage-sokoto-power-plant-by-kolawole-raiyegbemi/

PaulIdu:
No need to feed it to the national grid again ..I am tired of that lame law ..let it be used to power sokoto city which will automatically make more power available on the national grid

.

if not for that law, Lagos and most Niger delta states will have notoriously uninterrupted power while Sokoto before now will be in darkness .
The fact that you can generate now doesn't mean that others who generated for you when you couldn't are stvpid.

Blue3k:


Dude get a clue. The IGR In the north is lowest of any region. Second yes people would get cut either way due to royalty check if federal government didn't hold exclusive domain over land and mineral resources.

Stop lying to yourself. The north has highest poverty rates, lowest standard of living, lowest GDP, lowest gdp per capita, lowest IGR, lowest igr to Allocation ratios.

Ps: I find allocation system to be bad system because it enables laziness especially the laggard north. Fiscal federalism would be better.

Exclusive domian is the narrative of the Lazy and unproductive.
Get serious!!

Blue3k:


Dude get a clue. The IGR In the north is lowest of any region. Second yes people would get cut either way due to royalty check if federal government didn't hold exclusive domain over land and mineral resources.

Stop lying to yourself. The north has highest poverty rates, lowest standard of living, lowest GDP, lowest gdp per capita, lowest IGR, lowest igr to Allocation ratios.

Ps: I find allocation system to be bad system because it enables laziness especially the laggard north. Fiscal federalism would be better.

Did anyone stop you from investing the proceeds from your allocation?

jpphilips:


Exclusive domian is the narrative of the Lazy and unproductive.
Get serious!!

Ok so your saying the citezens should have access to property and mineral rights for land they own. I think it be great for average citezens. Since you didn't have arguements to the other things listed I'm guess you agree.

The lazy unproductive thing not true either. Other more productive countries believe in concept.