Following the significant decline in power supply witnessed across the country in the last couple of days and the untold hardship it has brought upon Nigerians, there are indications that the power situation is far from improvement. Vanguard learnt that power generation had dropped from 3,000 megawatts to about 2,988.72MW. In a telephone interview with Vanguard, Chief Executive Officer, Egbin Power Plc, Mr. Mike Uzoigwe, said Egbin plant produced 300 megawatts, as against the expected 1000 megawatts it needs to deliver to Nigerians.

United Bank for Africa Plc’s (UBA) exposure to the energy sector stood at N548.35 billion for two years, 2013 and 2014. According to the information obtained from bank’s Annual Report and Accounts for the 2014 financial year, the energy sector accounted for 27.26 per cent of its total loans and advances to customers in the two year period. Specifically, in 2014, energy firms borrowed N287.88 billion from the bank, while in 2013, they borrowed N260.479 billion.

Seven Energy International Limited, the indigenous Nigerian integrated gas Company has commenced the supply of gas to the 560 MW Calabar National Integrated Power Project (“NIPP”). The commercial delivery of gas to Calabar NIPP commenced on March 2015, and is being executed through Accugas, a wholly-owned subsidiary of Seven Energy. When operating at full capacity Calabar NIPP will increase national power generation by over 10 percent.

The Founder and President, Good Governance Initiative (GGI), Mr. Festus Mbisiogu has expressed the need for the incoming government of Muhammadu Buhari to ensure that Nigeria enjoys uninterrupted power supply to enable progressive economic growth. Mbisiogu, who stated that a recent research showed that Nigerians spend about N150 billion on a yearly basis to generate power for use both at homes and offices, also said that the situation is not benefiting the poor masses.

Indigenous companies have begun to lay off workers and cut salaries as a way of coping with the challenges of the crude price crash at the international market. Those who cannot cope with the downturn in the industry have also had to close shop, pending when the fortunes of the petroleum industry improves. Dropping the hint in an exclusive chart with Vanguard, the Chairman, Petroleum Technology Association of Nigeria, PETAN, Mr. Emeka Ene, argued that indigenous companies are the most affected in the current crises facing the industry.