Nigeria shows gas and power business potentials for Qatar, Dr. Theodore and Dr. Haruna agreed

Nigeria has many potential developments across the energy sector and especially in gas to power projects, as the largest economy in sub-Saharan Africa, but limitations in the power sector constrain growth. Dr. THEODORE, CEO of POWERGLOBE QATAR and Dr. HARUNA Bawa-Abdullahi Wase, Ambassador of of the Federal Republic on Nigeria in Qatar met today in order to address some of the business opportunities across Nigeria. Nigeria and Qatar have finalized plans to sign a memorandum of understanding (MoU) for the investment of $390 million in former’s transport sector in 2013. Now is a good opportunity for investments in energy sector, including natural gas ad electricity projects.

Dr. THEODORE, CEO of POWERGLOBE QATAR and Dr. HARUNA Bawa-Abdullahi Wase, Ambassador of of the Federal Republic on Nigeria in Qatar met today in order to address some of the business opportunities across Nigeria (Photo: QGN)

Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts (MW) of electric power from existing plants, but most days is only able to generate around 4,000 MW, which is insufficient. Nigeria has privatized its distribution companies, so there is a wide range of tariffs. The today generations install capacity is mainly thermal of around 10,142 MW and hydro of 2,380 MW. Additionally, there is a pipeline of 11,750 MW according to Power Africa 2030. The current connections are current access rate of 45% (rural 36% and urban 55%), households today without power  close to 20 million and with target universal access by 2030. The new off-grid connections 237,000 and the new grid connections 266,000.

The basic problem today with Nigeria is the macroeconomic forces, the lack of creditworthy utilities and the lack of strong, transparent regulator. Power Africa assisted the Government of Nigeria with agreements to move the Qua Iboe gas project closer to financial close. In parallel, Power Africa is assisting with agreements on several solar projects that will help Nigeria diversify its energy mix. Power Africa also helped Nigeria’s first private IPP, the Azura Edo Project, reach financial close in 2015, including a $50 million investment by The Overseas Private Investment Corporation (OPIC). Construction is underway on the project, which will add 450 MW to the grid in 2018.

Power Africa, through the United States Agency for International Development (USAID) and the U.S. Trade and Development Agency (USTDA) is working to improve commercial operations and reduce losses at five distribution companies: Abuja, Benin, Eko, Ibadan, and Ikeja. Power Africa is supporting off-grid options as well. With a $15 million OPIC loan, Lumos, Inc. is deploying rooftop solar panel kits to approximately 70,000 residential and small commercial customers in Nigeria, using a lease-to- own business model. In partnership with General Electric, the U.S. African Development Foundation (USADF) and others, Power Africa has awarded nine $100,000 grants to entrepreneurs for innovative, off-grid energy projects in Nigeria.

Furthermore, Dr. THEODORE met His Excellency, MOHAMMAD Sanusi Barkindo, Secretary General of OPEC (Organization of the Petroleum Exporting Countries) during the energy awards of Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development (7th May 2018) and they discussed the oil and petroleum industry, the macroeconomic forces and the lack of creditworthy utilities across Nigeria. Today, the General Secretary (His Excellency, MOHAMMAD Sanusi Barkindo) is Nigerian and Nigeria is the most populous country within OPEC, with around 177 million inhabitants. Located on the Gulf of Guinea on Africa’s western coast, Nigeria covers an area of around 924 thousand square kilometres. Abuja, the capital since 1991, has a population of more than one million. English is Nigeria’s official language, although many local languages such as Hausa, Yoruba, Igbo and Ijaw are also spoken. Apart from petroleum, Nigeria’s other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land. The oil and gas sector accounts for about 35 per cent of gross domestic product, and petroleum exports revenue represents over 90 per cent of total exports revenue. Its currency is the naira. Nigeria’s Head of State and Commander-in-Chief of the Armed Forces is HE Muhammadu Buhari (the country joined OPEC in 1971). Nigeria economic and energy data:

Population (million inhabitants) 177.072
Land area (1,000 sq km) 924
Population density (inhabitants per sq km) 192
GDP per capita ($) 2,262
GDP at market prices (million $) 400,571
Value of exports (million $) 34,704
Value of petroleum exports (million $) 27,788
Current account balance (million $) 2,722
Proven crude oil reserves (million barrels) 37,453
Proven natural gas reserves (billion cu. m.) 5,475.2
Crude oil production (1,000 b/d) 1,427.3
Marketed production of natural gas (million cu. m.) 42,562.4
Refinery capacity (1,000 b/cd) 446.0
Output of refined petroleum products (1,000 b/d) 53.5
Oil demand (1,000 b/d) 393.1
Crude oil exports (1,000 b/d) 1,738.0
Exports of petroleum products (1,000 b/d) 17.9
Natural gas exports (million cu. m.) 25,146.5
  • b/d (barrels per day)
  • cu. m. (cubic metres)
  • b/cd (barrels per calendar day)

Sources: QGN, Global Energy Review 2017, QGN, QNA, OPEC, the Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development, BBC.