Thursday 26 May 2016

“Refusal Of IOCS To Convert Gas To Power Causes Poor Electricity Supply” - Obasanjo

Chief Olusegun Obasanjo, who, spoke at a high-level session on “Africa’s, Energy: What’s the New Deal?”, at the ongoing 2016 annual meetings of African Development Bank (AfDB) in Lusaka, lamented that rather than building power plants for Nigerians to benefit, the IOCs preferred to burn the gas because such projects didn’t add to their profitability.
The former President, Cheif Olusegun Obasanjo, revealed that the refusal of international oil companies (IOCS) to convert gas to power contributed to the deteriorated state of electricity in the country.

According to him, “When I was president, I asked all the international oil companies producing crude oil in Nigeria not to burn gas and use it for electricity, only Agip responded and build a power plant of only three megawatts, the others ignored my call.”
Obasanjo stressed that going by resources and the potential that Africa has to generate power, there was no reason why the continent should be in darkness.

He argued that African governments should not deprive their citizens the benefit of electricity power in a bid to have an environment devoid of pollution due to power generation. “I’m an environmentalist, I will not keep environment clean at the expense of power in Africa. Without coal, industrialisation would not have been possible in Europe and other developed world. We may not use coal like in the past, but let use a mixture of what we have We have coal, gas, oil, sun, wind, fossil; let use them to get what we want,” he added.

AfDB President, Akinwunmi Adesina, noted that Africa has no business not having power because all the potential in all aspects of power generation. What needed to be, he added, was to exploit the potentials inherent on the continent, pointing out that there was a new deal on energy for Africa to add 160 gigawatts of electricity to the system.

Meanwhile, earlier at the meetings, the African Risk Capacity (ARC) took major steps towards its goal of providing $2 billion worth of annual climate disaster coverage to Africa’s most vulnerable populations.

ARC signed a Letter of Intent and a Memorandum of Understanding (MoU) with AfDB and the Conférence Inter-Africaine des Marchés d’Assurance (CIMA) respectively yesterday after a high-level panel at the AfDB’s Annual Meeting.
The Letter of Intent between ARC and the AfDB marked an announcement of their intention to collaborate in the areas of planning, preparation and response to extreme weather events and natural disasters for the benefit of the Regional Member Countries of the AfDB (RMCs).

The collaboration is expected to play a pivotal role in protecting investments for economic growth especially in key economic areas vulnerable to weather shocks such as agriculture. The Letter of Intent will support the introduction and mainstreaming of disaster risk financing into national fiscal policy in Member States.


ARC was established by Treaty in 2012 as a Specialised Agency of the African Union (AU). ARC was set up to help Member States improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters, therefore protecting the food security of their vulnerable populations.

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