By Hallmarknews Sep 5, 2022 8:49 AM ...as filling stations lament of low sales Oil marketers’ revenue from the sales of Premium Motor Spirit (PMS), popularly known as petrol and diesel are being squeezed to record low, as Nigerians continued to experience improved power supply, Business Hallmark can report. The pressure from lower fuel sales and revenue drop comes as businesses and homes cut diesel and petrol consumption as power generation reached a record high of 5,043 megawatts on Thursday, 1st September 2022, an increase of 8.1% compared to 4,664MW recorded on 31st August, 2022. The Lagos Commissioner for Energy and Mineral Resources, Olalere Odusote, it would be recalled, had disclosed in March that Lagosians rely on off-grid electricity generation through fuel generators for over 80 percent of electricity. However, BH findings show that power supply had been on an upward trend since the beginning of August, with the partial activation of the Power Purchase Agreements (PPA) signed by power stakeholders in July. Partial activation of the agreement, informed sources told our correspondent, requires players in the sector to meet their minimum requirements. Explaining how it works, a source in the Nigerian Electricity Regulatory Commission (NERC), disclosed that the first leg of the power business, power generating companies (Gencos), must generate the stipulated power they signed to produce in the PPA. According to the source, failure to generate the contracted power by the Gencos will attract commensurate penalties up to the amount of energy not supplied as agreed. “That is not all. the TCN must be able to evacuate and wheel all the power generated by the Gencos. They also face penalties if they fail to wheel all the power produced by Gencos. “The last leg of the power arrangement, that is the distribution companies, are expected to also distribute all the power wheeled to them by the TCN. Failure to meet that target exposes the Discos to severe penalties”, said the source. Meanwhile, the power purchase agreement seems to be working, at least for now, as available data from industry players suggest improved supply. For instance, an average of 93,183MWh of electricity was supplied to consumers in the month of August 2022, as against an average of 86,221MWh sent out in July, data released by the TCN confirmed. Likewise, checks revealed that energy production spiked in the month of August, with a daily average generation of 94,281.68MWh. The improvement in power production and distribution continued in September, with a total of 102,875.3MWh of energy generated, while 101,630MWh was supplied, representing 98.8% of the total generated electricity. The highest frequency recorded on Thursday was 51.1Hz, while the lowest frequency was 49.8Hz. “This explains the improved power supply Nigerians have witnessed in the last one month. It has never happened before in the nation’s history for 98.8% of power generated to be transmitted and distributed to the end users. Let us pray that they will be able to sustain it”, declared Engineer Bolutife Ibidapo, an electrical engineer and CEO of BPL Powers Nigeria. As expected, the improvement in power supply is trickling down to other sectors with many Nigerians business owners and individuals confirming to our correspondent that they had seen a significant drop in their alternative energy bill. A senior official of the Manufacturers Association of Nigeria (MAN) informed BH that manufacturers spent 70% less on alternative energy sources such as diesel and gas in August with power supply improving in industrial clusters across the country.
Manufacturers largely rely on alternative energy such as diesel, gas, low-pour fuel oil (LPFO), USPs and coal-fired plants and. According to the source who did not want his identity revealed as the figures released are not yet official, cost of alternative sources of energy incurred by members of MAN dropped from about N24.6billion in July 2022 to only N6.2billion in August, signifying 75 percent decrease over the previous month. “In the last two months, there has seen improved electricity supply to the industry in terms of hourly supply and number of outage per day. ”Since July 2022, electricity supply from distribution companies to the manufacturing has stabilised at 20 hours per day on the average just as power outage stabilised at one daily. “The manufacturing sector’s annual self-generating capacity is around 13,223 megawatts. That means reduction in power outages means improvement in electricity supply to the sector and reduction in alternative energy bill”, the MAN official noted. Peeved by the loss of revenue, some businesses that benefit from irregular power supply like ice block factories, filling stations and phone chargers, it was learnt, recently send emissaries to the Lugbe Business Unit of the Abuja Electricity Distribution Company (AEDC) to lodge a complaint. “I heard some people went to complain at the AEDC office in Lugbe that the regular power supply is detrimental to their businesses”, said a resident of the FCT. While many Nigerians and businesses are basking in the euphoria of improved power supply, the downstream sector of the petroleum sector is largely reeling from the impacts. BH observed in virtually all the filling stations visited in Fagba, Ikeja, Ojodu, Agbado, AbuleEgba and Agege, that the stations were devoid of the usual jerrycans bearing customers who usually throng the stations to buy fuel in kegs. During a visit to the Mobil Filling Station at Odo-Eran at Ogba, Lagos, only two keg-bearing customers were seen buying fuel. When accosted by our correspondent, one of them disclosed that he is a vulcaniser and came to buy fuel for his tyre pumping machine. While the other claimed he came to buy fuel for his car that stopped on the road. Some fuel station managers who spoke on the development lamented bitterly on the effects of improved power supply on their sales. According to the station manager of Nationwide Filling Station on Yaya Abatan Road in Ogba, sales have been slow since the improvement in power supply. “As you can see, only vehicles are coming in to buy fuel. And they account for less than 40% of our sales. Customers who buy fuel in containers account for the major bulk of the fuel we sell to the public. “Before now, we used to sell a tanker with 33,000 litres volume in a day. We got this supply yesterday morning (Thursday), and we are still selling the consignment as at 5.24pm on Friday”, the manager lamented. A sales attendant at the Total Filling Station on Oba Ogunjobi Road, Agege, who grudgingly spoke to our correspondent, lamented the sharp drop in the numbers of container-bearing customers coming in to buy fuel. According to the attendant, he may be forced to look for another job if the situation does not improved. “Though, the pay is very low, I have been working here since 2019 because of what comes in from charges on kegs. “On a good day, I take home between N3,000 to N5,000 from fees charged on kegs. On a bad day, we get like N1,700. If you multiply, let’s say N2,000 daily, times 30 days, that gives us N60,000 monthly. That is what I used to supplement my salary of N20,000. “But since late July, business had been bad. For example, I have only sold six kegs today (Friday). That is just N300 as we collect N50 on a keg. I have informed my manager that if the trend continues till the end of the month, I will have no option than to resign from the job to go back to my Okada business”, said the attendant who preferred to be identified only by his first name, Saheed.
A top official of the Independent Petroleum Marketers of Nigeria (IPMAN), Mosimin, Ogun State chapter, Alhaji Sule Alabi, confirmed that sales have been slow since the beginning of August. According to him, marketers hardly dispose half of their daily supply in two days. “What this means is that sales and, indirectly, profits are now cut by half. Most fuels marketers, especially members of IPMAN, will not post positive results at the end of the operating year”, Alabi lamented. Meanwhile, Nigerians have continued to react to the improvement in electricity supply, with many of them expressing satisfaction with the recent stability in the electricity supply in their areas. “I now enjoy 23 hours of uninterrupted power supply daily. In fact, our light has not gone off since Monday (August 29). “Before now, I used to buy 10 litres of fuel weekly at the rate of N1,700 to basically charge my phones and pump water. “However, since the beginning of August, I do not have to worry again, as it is almost certain that Ikeja Electric will give us almost 24hour light everyday day,” said Banji Oyatogun, a resident of Abule Egba in Lagos. Another respondent, Mr. Jimoh Onigbinde, who lives in Fagba, Lagos, said there had been uninterrupted power in his area in the last five days. “I hope they are not just whetting our appetite and will later go back to their old habit of leaving us in darkness”, Onigbinde queried.

When you look closely at the posture of Nigerians, you'd realise that despite their complaints, they really do not what things to change. They profit from the organised chaos and there is an economy of corruption that feeds the nation. Did you read about the petrol attendant and the kegs? He would have wailed endlessly in the past about epileptic power supply. It is the reason that despite the great strides of this Nation, there is a loud cry to take us back to Egypt of the PDP years through Petobi. Imagine how a man would go to a power plant built by Siemens in Egypt to enquire if Nigeria has a deal with the company. The capacity to think is very small in this country and not in the least related to education and exposure.

IPOB terrorists are the cause.

Perfectbeing:
When you look closely at the posture of Nigerians, you'd realise that despite their complaints, they really do not what things to change. They profit from the organised chaos and there is an economy of corruption that feeds the nation. Did you read about the petrol attendant and the kegs? He would have wailed endlessly in the past about epileptic power supply. It is the reason that despite the great strides of this Nation, there is a loud cry to take us back to Egypt of the PDP years through Petobi. Imagine how a man would go to a power plant built by Siemens in Egypt to enquire if Nigeria has a deal with the company. The capacity to think is very small in this country and not in the least related to education and exposure.

power supply improves during the rainy season and begins to go down towards the end of the year! Are you mates with Egypt in terms of power supply,what rubbish are you talking about.

ObamaMessi:
IPOB terrorists are the cause.

Even as oduduwa terrorist and sheikhs Gumi terrorist are still living

Totilopussylick:


Even as oduduwa terrorist and sheikhs Gumi terrorist are still living

Gumi is the speaker of truth just like boko haram are freedom fighters.

ebufa:




power supply improves during the rainy season and begins to go down towards the end of the year! Are you mates with Egypt in terms of power supply,what rubbish are you talking about.

In the history of rainy seasons have you seen power this stable?

Wailing wailer

ebufa:




power supply improves during the rainy season and begins to go down towards the end of the year! Are you mates with Egypt in terms of power supply,what rubbish are you talking about.

LIAR. POWER SUPPLY NEVER IMPROVED TO ANYTHING NEAR THIS LEVEL IN PREVIOUS ''RAINY SEASONS''.

OR YOU LIVE IN A DIFFERENT NIGERIA?