Nasir El-Rufai, former governor of Kaduna State, will head up the new Ministry of Energy focused on the larger strategic goal of using the Electricity Act 2023 to bring Federal and State government capacities to widen energy access for Nigerians. With the creation of a new ministry for energy and the appointment of a swashbuckling reformer to head it, the Federal Government is signalling its intention to turn the focus away from oil, bringing together gas and power to deepen industrialization and grow petrochemicals, experts say.
BusinessDay gathered that El-Rufai has lined up a broad team of experts comprising local and international consultants and experts to develop a strategy for the new ministry. The creation of a new ministry for energy and power to manage the country’s vast gas resources seeks to solve the perennial problem of lack of gas to run plants and remove control of gas supply and pricing, something industry operators have clamoured for long craved.

In an earlier story, this paper reported that the government was considering excising gas from the Ministry of Petroleum Resources. The proposed appointment of El-Rufai, with a track record as a strong-willed reformer, to head the ministry signals Tinubu’s intention significant for changes.

The new ministry will be tasked with removing constraints to gas supply by establishing a complementary and flawlessly interconnected framework for electricity and natural gas, giving the electricity sector regulator, the Nigerian Electricity Regulatory Commission (NERC), the purview of the energy, not just electricity, industry.

The privatization of the power sector in 2013 aimed to inject private capital into the industry, excise government control allowing private operators to manage power generation, distribution and transmission.

However, things went differently than planned. Firstly, Nigeria needed help finding a buyer for its transmission assets. The entities that bought power distribution assets needed more capacity to invest in improving the network and couldn’t even fund meters for their customers. Debts owed by legacy plants bogged down generation companies, and tariffs could not guarantee commercial returns as NERC’s cost-reflective taxes were at odds with the industry that supplies natural gas for power.

“There is currently no assurance that Discos can pay up for even the energy being supplied today, let alone higher priced energy due to more expensive gas. If they let gas prices rise, electricity tariffs will follow; with the attendant political implications in a country where barely any power is being supplied,” an investor told BusinessDay.

power plants delivered 4517MW to the grid, including about 700MW of hydropower, leading to about 1.1 billion standard cubic feet of gas (1.3bcf) given to power plants that day.

Sources with knowledge of the government plans tell BusinessDay that the Ministry of Energy will pay specific attention to gas to deepen the use of the resources for power, industries and petrochemicals. The government employs local and international consultants, including analysts at Boston Consulting and McKinsey, to develop the strategy.

Some of the ideas being proposed are the equivalent of a gas Domestic Supply Obligation (DSO) overseen by a collection of stakeholders, including International Oil Companies, indigenous suppliers, non-NGC pipeline owners such as there are, IPPs, other major non-IPP gas buyers (fertilizer, cement, heavy industry) and the ministry rather than a situation where government by fiat commands supply.

The price control regime for gas-to-power set up in 2009 has yet to incentivize the development of new gas supply and processing facilities. The new reality will require renegotiating current prices from the politically mandated to the best possible commercial price. Experts are calling for the Gencos, NERC, and the Ministry of Power to sit down with gas suppliers and the NNPC.
in some gas projects the NNPC is engaged in, including the $400mn OB-OB3 pipeline project due in 2016. The project will deliver 700mmscfd to Western Nigeria, where demand and thermal Gencos are highest from the Eastern Niger Delta. The project aligns with the aspirations of operators. Bolaji Osunsanya, CEO of Axxela Limited, in an interview with BusinessDay, said Nigeria should be looking at increasing exploration beyond the 206 Trillion Cubic Feet of gas it currently has and developing the market.

“The policy should be growth-oriented and expansionary; we should do more than export, but use more gas locally, which means additional LNG trains to complement what the Nigeria LNG is doing. There’s no reason why we shouldn’t be more aggressive in exploiting our gas resources,” he said.

https://businessday.ng/news/article/el-rufais-energy-ministry-focuses-on-gas-petrochemicals/

All the directors and administrators in that ministry will be muslims.

zeuss:
All the directors and administrators in that ministry will be muslims.

Is he now an energy expert. Why do these people keep making their journey full of pit holes and difficulties.

Why not push the candidacy of an industry expert and instead make elrufai the chairman of energy commission to supervise the ministry

zeuss:
All the directors and administrators in that ministry will be muslims.

See pain abeg
Go hang yourself.
Tinubu wants merits
It doesn't matter if they are all muslims or Christians
Nigeria is full of religious bigots that only see other people's problems but turn a blind eye to theirs.

the bitter truth is that a lot of people are pained seeing elrufai in the ministerial list.
THEY CANT DO ANYTHINGBUT WAIL

triple996:

See pain abeg
Go hang yourself.
Tinubu wants merits
It doesn't matter if they are all muslims or Christians
Nigeria is full of religious bigots that only see other people's problems but turn a blind eye to theirs.

the bitter truth is that a lot of people are pained seeing elrufai in the ministerial list.
THEY CANT DO ANYTHINGBUT WAIL

All evil has an expiry date.

kettykings:
Is he now an energy expert. Why do these people keep making their journey full of pit holes and difficulties.

Why not push the candidacy of an industry expert and instead make elrufai the chairman of energy commission to supervise the ministry

These are the issues reasonable Nigerians complain about.

But you will sooner be tagged IPOB for wanting right people in right portfolios

PERFECT! This is ABSOLUTELY good news. I wish him the very, very, best. My dad told me he will be made to hold such a sensitive portfolio because he has shown dexterity through out his life endeavors and the ability to reform and revive.

Good news. I has no doubt in El-Rufai's capabilities. You need to see Abuja before and after, Kaduna before and after. El-Rufai's CV is not a WAEC result obtained from special center lol nor a certificate obtained from a diploma course. He is a thorough breed of excellence. Nothing short of a first class material like Prof. Soludo, Sanusi Lamido......and co. More so none of the ministers has a mere WAEC certificate as their highest qualification in their CV. None......

So Elrufai a quantity surveyor will head ministry of Energy?
Nigeria doing the same thing, expecting a great result.

I believe in his capacity to deliver;
But he's a bigot

zeuss:
All the directors and administrators in that ministry will be muslims.

That's a fact..
but what do you expect from an administration that came onboard with a Muslim Muslim ticket..

El rufai is a failure as a human being
This ministry will be a total disaster and a conduit pipe for corruption

Anything a known bigot does backfires because of his tendencies to see things through the prism of religion and ethnicity..

Toh

Not a bad portfolio

kettykings:
Is he now an energy expert. Why do these people keep making their journey full of pit holes and difficulties.

Why not push the candidacy of an industry expert and instead make elrufai the chairman of energy commission to supervise the ministry

maticar:

These are the issues reasonable Nigerians complain about.

But you will sooner be tagged IPOB for wanting right people in right portfolios

This were the same people defending Osun state Governor when he appointed Lawyer as a Health Commissional in Osun state 😀😀😀


Bunch of hypocritehypocrites

I think the legislation that compels the president to appoint ministers within 60 days should be reviewed and included that their portfolios must be stated before they appear in the senate for their "Take a bow" sessions.

At least that will allow the people to know the ministries they will head and not depend on newspaper speculation and hearsay.

waledeji:
This were the same people defending Osun state Governor when he appointed Lawyer as a Health Commissional in Osun state 😀😀😀


Bunch of hypocritehypocrites

A lawyer as health commissioner is the head ache of osun but a quantity surveyor as an energy minister is the headache of Nigerians and mankind that depends on the energy deposit and potential of Nigeria. That's why Nigerians are bothered.

zeuss:
All the directors and administrators in that ministry will be muslims.

.All the Governors of the entire 17states in southern Nigeria are Christians,yet Muslims are not complaining.
Pained 'obidients'and delusion are 5 and 6

waledeji:
This were the same people defending Osun state Governor when he appointed Lawyer as a Health Commissional in Osun state 😀😀😀


Bunch of hypocritehypocrites

Don't mind the pained losers jooor

zeuss:
All the directors and administrators in that ministry will be muslims.

Yes,go hug transformer.

ZombiePUNISHER:


That's a fact..
but what do you expect from an administration that came onboard with a Muslim Muslim ticket..

El rufai is a failure as a human being
This ministry will be a total disaster and a conduit pipe for corruption
Between you and El-refai,who is the failure.

Anything a known bigot does backfires because of his tendencies to see things through the prism of religion and ethnicity..

Between you and El-refai who is the failure.

Depriest2020:
So Elrufai a quantity surveyor will head ministry of Energy?
Nigeria doing the same thing, expecting a great result.

It's all about political will for any sector to work. You need to be hot headed, no nonsense, go-getter . Am interested on who will fix federal roads

Tinubu is destined to fail




El Rufai? An important agency?

As long as there is no Ibo

zeuss:
All the directors and administrators in that ministry will be muslims.

I love the fact that SE gas will be piped to the north

kettykings:
Is he now an energy expert. Why do these people keep making their journey full of pit holes and difficulties.

Why not push the candidacy of an industry expert and instead make elrufai the chairman of energy commission to supervise the ministry

kokoA:
Nasir El-Rufai, former governor of Kaduna State, will head up the new Ministry of Energy focused on the larger strategic goal of using the Electricity Act 2023 to bring Federal and State government capacities to widen energy access for Nigerians. With the creation of a new ministry for energy and the appointment of a swashbuckling reformer to head it, the Federal Government is signalling its intention to turn the focus away from oil, bringing together gas and power to deepen industrialization and grow petrochemicals, experts say.
BusinessDay gathered that El-Rufai has lined up a broad team of experts comprising local and international consultants and experts to develop a strategy for the new ministry. The creation of a new ministry for energy and power to manage the country’s vast gas resources seeks to solve the perennial problem of lack of gas to run plants and remove control of gas supply and pricing, something industry operators have clamoured for long craved.

In an earlier story, this paper reported that the government was considering excising gas from the Ministry of Petroleum Resources. The proposed appointment of El-Rufai, with a track record as a strong-willed reformer, to head the ministry signals Tinubu’s intention significant for changes.

The new ministry will be tasked with removing constraints to gas supply by establishing a complementary and flawlessly interconnected framework for electricity and natural gas, giving the electricity sector regulator, the Nigerian Electricity Regulatory Commission (NERC), the purview of the energy, not just electricity, industry.

The privatization of the power sector in 2013 aimed to inject private capital into the industry, excise government control allowing private operators to manage power generation, distribution and transmission.

However, things went differently than planned. Firstly, Nigeria needed help finding a buyer for its transmission assets. The entities that bought power distribution assets needed more capacity to invest in improving the network and couldn’t even fund meters for their customers. Debts owed by legacy plants bogged down generation companies, and tariffs could not guarantee commercial returns as NERC’s cost-reflective taxes were at odds with the industry that supplies natural gas for power.

“There is currently no assurance that Discos can pay up for even the energy being supplied today, let alone higher priced energy due to more expensive gas. If they let gas prices rise, electricity tariffs will follow; with the attendant political implications in a country where barely any power is being supplied,” an investor told BusinessDay.

power plants delivered 4517MW to the grid, including about 700MW of hydropower, leading to about 1.1 billion standard cubic feet of gas (1.3bcf) given to power plants that day.

Sources with knowledge of the government plans tell BusinessDay that the Ministry of Energy will pay specific attention to gas to deepen the use of the resources for power, industries and petrochemicals. The government employs local and international consultants, including analysts at Boston Consulting and McKinsey, to develop the strategy.

Some of the ideas being proposed are the equivalent of a gas Domestic Supply Obligation (DSO) overseen by a collection of stakeholders, including International Oil Companies, indigenous suppliers, non-NGC pipeline owners such as there are, IPPs, other major non-IPP gas buyers (fertilizer, cement, heavy industry) and the ministry rather than a situation where government by fiat commands supply.

The price control regime for gas-to-power set up in 2009 has yet to incentivize the development of new gas supply and processing facilities. The new reality will require renegotiating current prices from the politically mandated to the best possible commercial price. Experts are calling for the Gencos, NERC, and the Ministry of Power to sit down with gas suppliers and the NNPC.
in some gas projects the NNPC is engaged in, including the $400mn OB-OB3 pipeline project due in 2016. The project will deliver 700mmscfd to Western Nigeria, where demand and thermal Gencos are highest from the Eastern Niger Delta. The project aligns with the aspirations of operators. Bolaji Osunsanya, CEO of Axxela Limited, in an interview with BusinessDay, said Nigeria should be looking at increasing exploration beyond the 206 Trillion Cubic Feet of gas it currently has and developing the market.

“The policy should be growth-oriented and expansionary; we should do more than export, but use more gas locally, which means additional LNG trains to complement what the Nigeria LNG is doing. There’s no reason why we shouldn’t be more aggressive in exploiting our gas resources,” he said.

https://businessday.ng/news/article/el-rufais-energy-ministry-focuses-on-gas-petrochemicals/

That guy is good intellectually but have attitude and character problem as visible in his younger version called son.

He is an lslamic minded person and not a balanced person

Very good. Elrufai is a very passionate and hardworking individual

El Rufai is always a square peg in a square hole because he is passionately committed in his endeavours. If he brings the same vigour as he brought in during his time as FCT minister, into the new Energy ministry, then the days of electricity blackouts and impunity of DISCOs may soon be over.

Flathead8:
I love the fact that SE gas will be piped to the north

.I love it too, the east is the real developer of Nigeria with human capital and oil and gas.

Finger cross sha, I can't defend any politician now. I believe his work will speak for him when resume and the

Wicked wike wil b minister of what

Niger Delta

mytime24:
Wicked wike wil b minister of what