Majorwaves Energy Report September 2020 edition by majorwavesenergyreport

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

CONTENTS

Nigeria’s Oil Sector Suffers 6.63% Decline amid Production Cuts

We’ll Fix Refineries With Money Saved From Subsidy Removal – FG

78 Firms Jostle For NNPC’s Multi-Billion Dollars Depots, Pipelines, Assets’ Rehabilitation Contracts

Nigerian Content Summit: Stakeholders Reject Repeal of NOGICD Act, Advocate Improvement

Nigeria trudges on with full deregulation

36 “The Oil and Gas Sector Remains One of The Least Gender-Diverse, With Sparse Female Representation in Technical and Field Roles” -Funmi Ogbue, President/ Co-Founder WIEN

EMMAN Appeals to FG to Review Levies on Imported Finished Electricity Meters.

PPI to Invest in Infrastructure Ugrades

Crude Affreightment: NIMASA Revives Move to Change Terms of Trade

Lagos State Government Bans Barge Operations along Marina Coastline, as Ports Authority Revoke Approvals

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

Finally, the Nigerian government has taken the bold step of deregulating the downstream sector. That clearly means the subsidy has been removed. Previous administrations had failed to successfully do the needful. It has always appeared as the most rational thing to do but lack of political will or labour resistance always stood in the way. However, these are early days to predict the entire consequences. For instance, what becomes of the continued existence of PPPRA agency? Also, are we going to witness labour resistance in coming weeks? Our cover story moves beyond the platitudes to grapple with the complexity of the situation amid multiple global challenges like the pandemic and fall in oil price on a population with massive unemployment. Why have the people shown solidarity with the government thus far? Will this change? So far, unanimous resistance is unlikely because the launch of the Survival Fund (grant) for MSME among other measures being put in place strikes the right chord and resonates with any approved standard of empathy towards the governed. The Nigerian Content Development and Monitoring Board, NCDMB is deliberate about leveraging technology to bring on the needed development within and outside the oil industry. Its Hackathon initiative is worthy of emulation by every institution, whether public or private for vital disruptions. We also bring you feedback on National Assembly’s plan to amend the NOGICD Act in order to expand the benefits of Nigerian Content beyond the oil and gas industry as it held the first virtual Nigerian Content Summit. Read new initiatives by government to fix the nation’s power challenge, as well as some benefits of Chevron’s GMOU, where community firms now handle multi-billion Naira projects. Let’s hear from you. And…please, stay safe!!

Jerome Onoja

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Editor’s Note Publisher Joshua Bretz Managing Editor Jerome Onoja Editor Margaret Nongo-Okojokwu Business Development Stanley Etim Taiwo Olamilekan Amicable Aluu Production Solomon Obande Toma Stephen Research Analyst Simon Olanipekun Correspondents: Lagos Ikenna Omeje Abisoye Vincent Emeka Enunwah Daniel Terungwa Chukwunonso Mordi Port Harcourt Arit Dan Stella Odogu US Omaya Joko UK Kunle Kazeem

Majorwaves Energy Report is published by Majorwaves Communications, 25B, Adebayo Doherty Street, Lekki Phase 1. Lagos Phone: +2349035477966 Email: info@majorwavesenergyreport.com www.majorwavesenergyreport.com

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

INDUSTRY NEWS

Nigeria’s Oil Sector Suffers 6.63% Decline amid Production Cuts

For the first time in more than three years, the nation’s economy shrank in Q2 2020 as the Gross Domestic Product fell by 6.10 per cent, compared to a growth of 1.87 per cent in the previous quarter. The NBS, in its GDP report for the second quarter of the year, said the oil sector, which grew by 5.06 per cent in Q1, declined by 6.63 per cent year-on-year in Q2, indicating a decrease of 13.80 per cent compared to the same period of 2019.

in demand and prices caused by the coronavirus crisis. They decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended in July by one month. Under the April deal, Nigeria was expected to cap its production at 1.41 million bpd in May and June but the country overproduced during the period. The Lagos Chamber of Commerce and Industry attributed the low level of crude production in the period under review to OPEC+ production cut agreement aimed at rebalancing the oil market. The LCCI said, “We also note that the economy experienced stockpiles of unsold crude cargoes particularly in April and early May, due to collapse in crude demand from Asia and Europe.

“The oil sector contributed 8.93 per cent to total real GDP in Q2 2020, down from figures recorded in the corresponding period of 2019 and the preceding quarter, where it contributed 8.98 per cent and 9.50 per cent respectively,” it said. The NBS said the average daily oil production in the country fell to 1.81 million barrels per day in Q2 from 2.07 million bpd in the previous quarter and 2.02 million bpd in Q2 2019.

“In addition to these, the steep contraction was also fuelled by weakening oil prices witnessed in the quarter. We note that oil prices averaged $33 per barrel in Q2 2020 compared to $51 per barrel in the first quarter.” The OPEC+ production cuts have helped lift the price of the international oil benchmark, Brent crude, from a low of around $16 per barrel in April. It stood at $45.91 per barrel as of 6:45pm Nigeria time on Tuesday.

The Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, agreed in April to an output cut to offset a slump

The Director-General, Budget Office of the Federation, Ben Akabueze, had said in May that the nation’s oil revenues had declined by nearly 90

mid the collapse of oil prices and demand, Nigeria’s oil and gas sector saw its contribution to the economy tumble in the second quarter of this year as it recorded negative growth.

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per cent amid the slump in prices caused by the coronavirus pandemic. He noted that prior to the oil price decline, the Nigerian economy was already fragile and vulnerable, with sluggish growth, low revenue to GDP ratio, constrained fiscal space, among others. According to him, oil and gas represents only about 10 per cent of Nigeria’s GDP, but accounts for about 50 per cent of government revenues and over 90 per cent of export earnings. The contribution of the power sector to the economy also suffered a decline in Q2. According to the NBS, the electricity, gas, steam and air conditioning supply sector recorded a year-onyear growth of 8.64 per cent in Q2 2020, down from the 29.75 per cent growth rate recorded in same period of 2019 and 17.51 per cent in Q1 2020. It said, “The contribution of electricity, gas, steam and air conditioning supply to nominal GDP in second quarter 2020 was 0.92 per cent, higher than the contribution made in the corresponding quarter of 2019 at 0.82 per cent and higher with its contribution of 0.38 per cent in the quarter before.” “In real terms, however, the sector declined by –3.00 per cent in Q2 2020, a decrease from the growth rate of 0.43 per cent recorded in the same quarter of 2019. When compared to the immediate past quarter, this was a decrease of –0.69 per cent.”

INDUSTRY NEWS

NLNG, LCCI Promote Solutions in Carbon Reduction and Bioenergy

igeria LNG Limited (NLNG), in partnership with the Lagos Chamber of Commerce and Industry (LCCI) has, presented the winning work of The Nigeria Prize for Science for 2019 to industry players to help reduce country’s carbon footprint and kickstart a vibrant bioenergy industry. A release by the Manager, Corporate Communication and Public Affairs, Sophia Horsfall said the winners, Professor Meihong Wang and Dr Mathew Aneke, on Thursday presented their work on Carbon Capture, Carbon Utilization, Biomass Gasification and Energy Storage for Power Generation at the annual NLNG-LCCI Business Interactive Forum. This year’s forum was held as a webinar. The 2019 winning work provides solutions to the capture of carbon from the atmosphere and subsequent utilization as well as providing alternative and safe energy for cooking and electricity, with the potential of reversing the trend of tree cutting for cooking and contributing positively to the roll-back of droughts and desertification in the country. The Nigeria Prize for Science is a $100,000

award sponsored by NLNG, in the last 15 years, to promote innovations in science and technology that will solve age-old problems and drive development in Nigeria. The prize is awarded annually. In her remarks, NLNG’s General Manager, External Relations and Sustainable Development, Mrs Eyono Fatayi-Williams, said the company has gotten an inspiring list of winning works in different areas of science through The Nigeria Prize for Science. She added that the force behind NLNG’s drive was its vision of “helping to build a better Nigeria”. She remarked further that the Company’s interest was to make solutions, recognised through the prize, practicable and beneficial to Nigerians. She stated that NLNG was keen to contribute to solutions that will uplift the country beyond its developmental challenge and that will bring value to ordinary Nigerians. She stated further that NLNG was partnering with the Lagos Chambers of Commerce and Industry (LCCI) to build an interface with industry players that will push these novel solutions beyond research to commercial success. She

called on the LCCI members to explore opportunities presented by the winning works in the Nigeria Prize for Science. In her speech, the President of Lagos Chambers of Commerce and Industry (LCCI), Mrs Toki Mabogunje, represented by the Deputy President of the Chamber, Dr Olawale Cole, said the handshake between the industry players and scientists is the path to generating value that can turn around the narrative on the country’s development. She added that the NLNG/LCCI Business Interactive Webinar will help drive healthy conversations that can enable wide-scale use of the winning works, urging scientists seeking solutions to Nigeria problems not to relent in generating innovations that will improve the lives of Nigerians. Professor Wang is a Professor of Energy Systems at the University of Sheffield. He is a Chartered Engineer and has published over 180 technical papers and industrial reports. Some of his papers have won awards such as the SAGE Best Paper Prize 2014 and Ludwig Mond Prize 2014 by IMechE.

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INDUSTRY NEWS

We’ll Fix Refineries With Money Saved From Subsidy Removal – FG Daniel Terungwa

Nigeria Demands $1.1 Billion Advance from Eni, Shell in Graft Case Daniel Terungwa

igeria has asked a Milan court to order Eni and Royal Dutch Shell to pay $1.092 billion as an immediate advance payment for damages in one of the oil industry’s biggest-ever corruption scandals.

he Federal Government says the deregulation of the petroleum downstream sub-sector would enable it to rake in over N1trn annually for the development of the country. The Minister of State for Petroleum Resources, Timipre Sylva, told newsmen that with deregulation, the government would fix the moribund refineries in the country to make them commercially viable and create more jobs for the citizens. “Talking about refineries; what we’ve done is to sequence the rehabilitation of the refineries. We’re going to start first with Port Harcourt refinery. In Port Harcourt, we have two refineries; the old refinery and the new refinery with 60,000 and 250,000 barrels capacity respectively. “Now, there’s going to be a third refinery within Port Harcourt which is going to collocate, it’s going to be a private refinery in Port Harcourt. “That project will be signed in the

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fourth quarter of 2020. And by the first quarter of 2021, work will start in earnest. Discussions are ongoing with rehabilitations of Warri and Kaduna as well,” Sylva said. The Minister noted further that the time has come for Nigerians to face reality and do the right thing as deregulation will save a lot of money for the country. He said; “At least, from the very beginning, it’ll save us up to a trillion and more every year. Already, we’ve taken up the budgetary provision for subsidy which is about N500bn in the budget. “Also, we’ve taken off the excess forex price that special rate given to NNPC which also came at a cost. So, all the money that we used to defend the Naira at that time to subsidise the dollar will now be freed up for development.”

In a report by Reuters, lawyer for the Nigerian government, Lucio Lucia, at a hearing into alleged corruption linked to Eni and Shell’s 2011 acquisition of the OPL 245 offshore field, called for the advance payment ahead of a broader damages package to be set by the court at a later date. The long-running case revolves around the purchase of the OPL 245 offshore field, some 150 km off the Niger Delta, for about $1.3 billion from Malabu, a company owned by former Nigerian oil minister Dan Etete. Prosecutors allege that about $1.1 billion of that money was siphoned off to politicians and middlemen, half of it to Etete himself. Shell says the 2011 agreement was a settlement of long-standing litigation, following the previous allocation of the block by the Nigerian government to Shell and Malabu. In July, prosecutors in the case asked for Eni and Shell to be fined and some of their present and former executives, including Eni CEO Claudio Descalzi, to be jailed. They also requested the confiscation of a total of $1.092 billion from all the defendants in the case, the equivalent of the bribes alleged to have been paid. On Wednesday, Lucia joined up to the request for seizure of that amount. Etete, Eni, Shell and the managers accused in the Milan court case, including Descalzi, have all denied any wrongdoing.

INDUSTRY NEWS

FG to Create Over 12M Jobs Through National Gas Expansion Programme

he Minister of State for Petroleum Resources, Timipre Sylva, has said the implementation of the National Gas Expansion Programme (NGEP) will create over 12 million direct and indirect jobs across the country. This was contained in a release issued recently by Mr Justice Derefaka, Technical Adviser on Gas Business and Policy Implementation to the Minister. According to the release, Sylva made the statement at the recently concluded Ministerial Mandate Performance Scorecard Review Session. The release quoted him as saying: ” In terms of impact, the NGEP will create over 12 million direct and indirect jobs and human capacity development nationwide. “I, hereby declare NGEP as the flagship programme of the ministry based on the outstanding work the committee is doing.

meant it when it declared this year “The Year of Gas”. The Minister listed the Nigeria Gas Flare Commercialisation Programme (NGFCP), flag off of the National Gas Transportation Network Code (NGTNC), ongoing Marginal Field Bid Round, flag off of the construction of the AjaokutaKaduna-Kano (AKK) gas pipeline and Committee on Gas Sector-Wide Review of the Domestic Gas Pricing Framework, as other programmes initiated by the government to boost gas usage in the country. “These programmes and activities are geared towards achieving the mandate handed to us by Mr President. “It is therefore my earnest hope that we will carefully drive these programmes and activities to a logical conclusion,” he said.

“I have surrendered my vehicles to the NGEP to convert all to dual fuel with use of either Auto Liquefied Petroleum Gas (LPG)or Auto Condensed Natural Gas (CNG). “And on that premise, I now have the moral standing to direct that all Chief Executive Officers and their able lieutenants do same by converting all their official vehicles to run on autogas.”

Also speaking, the Technical Adviser, Downstream to the Petroleum Minister, Dr. Abner Ishaku said the promotion of gas as replacement fuel will also save the nation the much-needed Forex expended on imported fuels. Ishaku noted that it would provide alternatives to Premium Motor Spirit , Automotive Gas Oil and Dual Purpose Kerosene for Nigerians.

According to him, this will demonstrate to the Nigerian people that the government

On his part, Derefaka who also spoke at the event said the initiatives were geared

towards making Nigeria the hub of gas production and utilisation on the African continent, in addition to optimising the nation’s enormous gas potential. Derefaka said: “The world is gradually turning away from crude oil to gas to drive their economies. Our collective efforts should be putting all machineries in place to make gas a critical catalyst to our economic development. “The approach should include the diversification of our economy, efficient management of revenues, commitment to local value addition in the gas industry. “In the long run, a sustained decline in the price of oil may not be a bad thing for Nigeria as this may push us to diversify our economy using gas and away from dependence on oil.” Derefaka, who is also the programme Manager, NGFCP said Nigeria need to use gas and invest in critical sectors of our economies such as education, health, infrastructure and agriculture. According to him, this will provide a solid base for industrialisation, local value addition, economic development and sustainable growth. Derefaka said gas has a leading role as a key enabler to the diversification and growth of Nigeria’s broader economy through adequate power generation, provision of feedstock for value-adding manufacturing, and increased government revenue from LNG.

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INDUSTRY NEWS

78 Firms Jostle For NNPC’s Multi-Billion Dollars Depots, Pipelines, Assets’ Rehabilitation Contracts Transparent Public Bid Opening Processes fetch NNPC ICRC’s accolades

Dr Kennie Obateru

In his opening remarks, the Group Managing Director of the NNPC, Mallam Mele Kyari, stated that the exercise was in fulfilment of NNPC’s avowed commitment to transparency and accountability as an Extractive Industries Transparency Initiative (EITI) partner company and as directed by President Muhammadu Buhari that all its operations must be guided by integrity.

eventy eight (78) companies have joined the race to secure the contracts for the rehabilitation of critical downstream pipelines, associated depots and terminal infrastructure of the Nigerian National Petroleum Corporation (NNPC) through the Finance, Build, Operate and Transfer (BOT) model. This came as the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Engr. Chidi Izuwah, has commended the leadership of the Nigerian National Petroleum Corporation (NNPC) for totally driving a transparent bid opening processes for the rehabilitation of NNPC pipelines and its critical downstream infrastructure noting that NNPC is showing to the world that things could be done correctly such that would yield value for Nigerians. A press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted Engr. Izuwah as saying that the novel NNPC virtual public bid-opening exercise was in line with the ICRC infrastructure revolution drive.

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Mele Kyari

“You showed to the world that you’re driving a totally transparent Public Private Partnership process in line with the infrastructure revolution of President Muhammadu Buhari. Today’s public bid opening for the rehabilitation of NNPC pipelines, depots/terminal infrastructure is quite commendable. “I commend the GMD Mallam Mele Kyari, his team and the NNPC Group for showing to the world that things can be done properly and in the best interest of the shareholders,” Engr. Izuwah stated.

“This is not possible to achieve if we do not have the leadership disposition that is in support of transparency. I can confirm to all of you that it is the clear directive of Mr. President that this company must be accountable and must be transparent to its shareholders. We must take all necessary steps to make sure that our transactions are known to the citizens of this country, that we do things for the common good of all of us and that in doing our business, we must ensure integrity,” the GMD stated. He posited that as an EITI partner company, NNPC is a global company, completely transparent to its shareholders and stakeholders stressing that the Corporation must always disclose her transactions,

INDUSTRY NEWS contracting processes, selection of its partners, identities of partners and beneficial owners of the partners. “Nobody will cut corners, nobody will cheat the shareholders of this company and also this company will ultimately deliver value to its shareholders,” Mallam Kyari stated. He noted that the Finance, Build, Operate and Transfer (BOT) model became imperative in the Corporation’s journey to rehabilitate its downstream infrastructure which over time have become vulnerable, lost value and integrity due to age and incessant vandalism. “Some of these assets are as old as forty years (40) years and they are due for replacement and when you want to do a replacement of this scale, you do need a lot of resources. And we know that we require these assets so we decided that we bring

in private partners who will fund these pipelines, they will construct it, they will operate it with us and then ultimately they will fully recover their investment from the tariff which we will pay for using these pipelines and as soon as they recover their cost and their margin, they will hand over these assets back to us,” Mallam Kyari informed. Mallam Kyari averred that by the end of the first quarter of 2021, the final partners of the bid opening would be selected. He assured the bidders that the NIPEX portal which was deployed for the pre-qualification exercise was a time tested technology that would not give room for any human indiscretion. Earlier, the Chief Operating Officer, Downstream , Ms L awrencia Ndupu, who was represented by the Managing Director, Petroleum

Products Marketing Company, Musa Lawan, said the Nigerian Pipelines and Storage Company (NPSC) operates 5,120 length of pipelines which traverses the entire country with two coastal depots in Lagos and Calabar assuring that the public bid opening processes is being done transparently. On her part, the General Manager, Supply Chain Management (SCM), NNPC, Mrs. Sophia Mbakwe, said at the end of the submission of virtual bids, seventy eight (78) companies submitted bids for the pre-qualification of rehabilitation of NNPC downstream critical pipelines, associated depots and terminal infrastructure. Other external observers who witnessed the exercise were Bureau of Public Procurement, the Nigeria Extractive Industries Transparency Initiative (NEITI), Civil Liberty Organization and the Centre for Transparency Watch.

Osifo Festus Emerges PENGASSAN President National Delegates Conference of the union at the NAF Center in Abuja. Osifo contested against Fredricks Rowland of Shell Petroleum Development.

he Petroleum and Natural Gas Senior Staff Association of Nigeria has elected Festus Osifo as its new president.

Osifo won the election that took place on Thursday at the 6th Triennial

Osifo polled 20 0 votes while Rowland got175 votes. Other candidates that emerged in other positions are: Duru Mathew, Deputy President; Ugwulo Kelechi, National IRO; Ononokpono Victor, National Treasurer; Udoh Anietie, National PRO.

The rest are Dan’azumi Kabiru, National Fin Sec; Chiwendu Ngozi, National WIP; Ogbuwu Charles, National Auditor 1; and Olabiyi Bosun, National Auditor. Osifo attended Heriot Watt University, Scotland, where he obtained a master’s degree in Petroleum Engineering. Before this, Osifo studied Mechanical and Manufacturing Engineering at the University of Portsmouth, United Kingdom where he graduated with first class honours. Before his election as PENGASSAN president, he held dif ferent leadership positions, including serving as the Non-executive Director of Heiwa Africa, Chairman of PENGASSAN Producer’s Forum and Chairman of Total E&P branch of PENGASSAN.

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INDUSTRY NEWS

OPEC Turns 60

heFourteenth of September 2020 is a very special day for OPEC. This sees the Organization celebrate its 60th anniversary.

a number of landmark decisions, such as the ‘Declaratory Statement of Petroleum Policy in Member Countries’ in 1968 and expanding its Membership.

Few would have foreseen six decades ago that the Organization would have risen to the heights it has today in the global energy arena. Back then in Baghdad, the five Founding Fathers of OPEC, Juan Pablo Pérez Alfonzo of Venezuela; Abdullah alTariki of Saudi Arabia; Dr Tala’at al-Shaibani of Iraq; Dr Fuad Rouhani of Iran; and Ahmed Sayed Omar of Kuwait gathered together in the AlShaab Hall in Baghdad, to midwife OPEC into the world.

Sixty years on, the Organization that is today 13 Member Countries is now an integral part of the international energy community and the multilateral system. It is widely consulted on oil industry affairs, remains firmly committed to secure and steady supplies and fair returns to investors, Member Countries run their own domestic oil sectors across the entire value chain, and the Organization has expanded its activities to champion issues affecting mankind as a whole.

In the context of that time, when the oil industry was dominated by the major oil companies, which was reflected in its structure and behaviour, it was a heroic and pioneering act by the Founder Members to come together in the Iraqi capital. The seminal ‘Baghdad Conference’, saw these five visionaries from the Founder Member Countries gather together around the premise of cooperation and with the need to write their own story. Pérez Alfonzo said after the meeting: “We are now united. We are making history.” It would prove to be a profound statement. In the 1960s, OPEC established itself with courage, persistence and diligence, through the development of its Statute that remains in place today, registering at the United Nations (UN) Secretariat on 6 November 1962, under UN Resolution No 6363, initiating

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In reflecting on this, Mohammad Sanusi Barkindo, OPEC Secretary General said: “I often think back to that day in 1960, the mood in Baghdad, how those visionaries envisaged the future of OPEC and the oil industry. What is clear is that what was set in motion has stood the test of time; OPEC still has the same core objectives, of order and stability in global oil markets, but its role has also broadened considerably, in terms of deeper cooperation with other producers, dialogue with a host of industry stakeholders, and an embrace of human concerns such as sustainable development, the environment and energy poverty eradication.” The 60th anniversary is a time to reflect and appreciate the efforts of all those who have worked so hard throughout our history to make OPEC the resounding success it has become. This includes generations of Heads of State and

Government, Ministers, Governors and other high-level experts from outside the Secretariat and, from within the Secretariat, Secretary Generals, Management and Staff of every relevant discipline. They have all enriched the Organization, through commitment, perseverance and sacrifice, to cope with the many ups and downs experienced by OPEC and its Member Countries. It is also an opportunity to, once again, extend the Organization’s gratitude to Austria and the City of Vienna, which have been warm and generous hosts to the Secretariat since OPEC moved to this grand, historic city 55 years ago. To further celebrate the 60th anniver sar y, Ira q , th e cit y of Baghdad and the Al-Shaab Hall plan to hold events, including music and cultural activities, albeit this is dependent on the COVID-19 pandemic. More details will be provided once available. Looking ahead, the Organization stands ready to meet the many challenges we shall face as we enter the next 60 years of our history. We remain focused on a balanced and stable oil market, in the interests of both producers and consumers, as most recently exhibited through the Declaration of Cooperation and the historic production adjustments of 2020 ; f ur th er elevating dialogue and cooperation through the Charter of Cooperation; and providing options and solutions to some of the major challenges facing humankind, such as sustainable development and energy poverty alleviation.

INDUSTRY EVENT

Angola Oil and Gas Conference & Exhibition Returns to Luanda

-Angola’s leading energy event organized by Africa Oil & Power returns for its second edition. -On June 15-16, 2021, the key players of the Angolan energy industry will converge for the year’s biggest event, with two days packed with expert debates, networking opportunities and deal-making rounds. -Angola Oil and Gas 2021 is expected to outdo the enormously successful first edition of 2019 The Angola Oil & Gas Conference & Exhibition will return on 15-16 June, 2021, after its 2020 program was postponed due to COVID-19 restrictions. Organized in partnership with the African Energy Chamber, the event is endorsed by the Ministry of Mineral Resources and Petroleum. The second edition of the Angola Oil

& Gas Conference & Exhibition will expand in size, scale and prestige. Anchored by a VIP program of senior government officials and global CEO’s, Angola Oil & Gas 2021 will be the premier gathering place for deal-making and networking. Discussion points include a focus on the post-COVID 19 reality of the Angolan energy landscape, offshore and onshore oil and gas exploration and licensing, the new marginal fields bid round, gas monetization, doing business in Angola and digitalization and technology. New to the conference will be a Digitalization and Technology forum; a showcase on the exhibition floor of advanced technology pioneered in Angola. The 2021 event follows a highly successful inaugural event that took place in June 2019, which saw more than 1,700 delegates, 67 speakers, and nearly 50 exhibitors.

Officially endorsed by the Ministry of Mineral Resources and Petroleum, Angola Oil & Gas 2019 gathered key government officials and executives from across the energy value chain for a week of keynote presentations, moderated panel discussions, exhibitions, networking gatherings, and investment facilitation. Angola Oil & Gas 2019 was opened by H.E. President João Lourenço, with keynote addresses delivered by H.E. Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum, H.E. José de Lima Massano, Governor of the National Bank of Angola and H.E. Eng. Paulino Jerónimo, President of ANPG. Private sector keynotes and appearances were given by Total CEO Patrick Pouyanné and ExxonMobil’s Senior VP of Upstream Oil & Gas Deepwater Hunter Farris, among others.

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INDUSTRY EVENT

Kosmos Energy, Oando, TGS and More Revealed in the First Speaker Line-up of AOW Virtual – Africa Oil Week’s Online Conference Aimed at Reigniting the African Upstream

ith a series of strategic outlooks, panels and an interactive natural gas vs renewables debate, AOW Virtual’s goal is to reconnect the African upstream following a tumultuous year that has featured unprecedented supply and demand shocks in the sector. Perhaps the most hotly anticipated of the conference, the “Somalia Licensing Round: De-risking Above Ground Factors” session offers delegates the first opportunity to hear directly from the senior members of the Somali government about licensing round details, following the official announcement made on August 4th. Security and geophysical experts will also be on hand to provide insights and answer questions. Speakers include: * Hon. Eng. Abdirashid Mohamed Ahmed, Minister of Petroleum & Mineral Resources, Federal Republic of Somalia * Ibrahim Ali Hussein, Chairman and Chief Executive Officer, Somali Petroleum Authority * Phil McDonald, Regional Director (Africa), Castor Vali

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* Dr Alessio Checconi, Senior Business Development Manager AME, TGS * Scot Fraser, Co-Founder & Director Exploration, Ventura International Energy LLC * Daniel Berkove, Senior Associate Energy, IHS Markit By popular demand, AOW Virtual will also be shining the spotlight on the West African region, from Côte D’Ivoire to Nigeria in the “West Africa Regional Focus: New Ventures & Opportunities” session and the “Interactive debate: natural gas vs renewables” will aim to answer which is the most viable energy source for Africa as well as investment, infrastructure, technology and ESG required. Lastly, it wouldn’t be an Africa Oil Week event without a strategic outlook from Operators across the continent. Senior executives will deliver insights on which new ventures, projects and geographies they’re prioritising in the new post-pandemic landscape. Among other industry leaders confirmed to speak in the online conference are: Tracey Henderson, Chief Exploration Officer, Kosmos

Energy, Liv Hovem, CEO, DNV GL, Dr Alex Irune, COO, Oando Energy Resources, Christine Roche, Manager - AMME, PGS, Adam Pollard, Senior Research Analyst, Sub-Saharan Africa Upstream Oil & Gas, Wood Mackenzie, Chris Hindle, Director, Critical Resource with more speakers expected to be revealed in the lead up to the event. AOW Virtual will take place over two afternoons packed full of strategic outlooks, debates, and a much-anticipated government bidding round. 100s of C-level executives from across the value chain are expected to attend and join meaningful conversations reigniting the African upstream once again. AOW Virtual, an unmissable online conference from the producers of Africa Oil Week is free of charge to attend in an aim to provide the global oil and gas audience with a platform to discuss insights and learnings on how to operate in the ‘new normal’ as well as the challenges and opportunities post Covid-19. AOW Virtual is CPD certified, so attending sessions will count towards continuing professional development.

INDUSTRY EVENT

Nigerian Content Summit: Stakeholders Reject Repeal of NOGICD Act, Advocate Improvement By Jerome Onoja, Ikenna Omeje bills. The platform also provided key stakeholders with the opportunity to discuss and share their views on the provisions of the bills and how well they address existing challenges while charting the path to sustainable economic development and self-sufficiency. In particular, the legislative impact of the bills on thematic areas of the economy such as investment promotion, economic competitiveness, transparency, human capital development; public procurement; and ease of doing business were critically examined. Declaring the summit open, the Minister of State for Petroleum Resources, Chief Timipre Sylva urged industry stakeholders to work together to promote Nigerian content. He said: “We must all put our efforts to ensure that local content is reflected in all facet of our economy. This cannot be

takeholders in Nigeria’s oil and gas industry have lent their voices to the ongoing consultation by the National Assembly on expanding the benefits of Nigerian content to the economy through amending the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, giving assent to both the proposed Nigerian Content Development and Enforcement Bill (2020) and the Nigerian Content Development and Enforcement Commission Bill (2020). M a j o rit y o f t h e s p e a ke r s , panellists and notable attendees recommended that the NOGICD Act be slightly amended to improve on the successes registered, also due to a few inconsistencies with terminologies among other grey areas. But, they were unequivocally against overhauling or repealing the Act and replacing it with the

Nigeria Oil and Gas Industry Content (NOGIC) Bill 2020. They noted that it could reverse the gains of local content accrued by the NCDMB under the NOGICD Act 2010 over the last decade. They were also unanimous about extending the benefits of Nigerian Content to other sectors of the economy but again, advised that

“

the peculiarity of each sector would require legal provisions and framework adapted to suit it.

The virtual consultative summit, which held September 16 – 17, 2020, with the theme, “Expanding the Nigerian Content Possibilities,” was aimed at discussing and creating understanding of the immediate and wide implications of the proposed

Timipre Sylva

overemphasized as it is a national priority for our dear President to diversify to other sectors of the economy from our mainstay – oil and gas, thereby increasing revenue generation and creating employment for our teeming youths. “We are here today to talk about the possibility of broadening the Nigerian

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INDUSTRY EVENT overemphasized as it is a national priority for our dear President to diversify to other sectors of the economy from our mainstay – oil and gas, thereby increasing revenue generation and creating employment for our teeming youths. “We are here today to talk about the possibility of broadening the Nigerian content opportunities and leveraging linkage opportunities to other sectors of the economy. “It is also important to note that the drive for local content growths in the oil and gas sector, has been tremendous as a result of collective efforts. Prior to 2010 when the Nigerian Oil and Gas Content Industry Development Act was enacted, Nigerian content was less than 2 percent , but today, it is about 30 percent. And projected to get to 70 percent by 2027, as enshrined in the 10-year Strategic Roadmap of NCDMB. I want to add that the success of the NOGICD Act 2010 was by no means done by the NCDMB alone. It has been the collective effort of all industry stakeholders. Therefore, the compilation and implementation of Nigerian content across major sectors of our economy, appeals for sustainable partnership in our drive.” Mr. Bayo Ojulari, the Managing Director of SNEPCo spoke on the need to intensify efforts at developing human capital, a practice which is consistent with Shell companies in Nigeria. He further admonished players in the industry to pull resources and expertise together in order to take on major projects, like what obtains with companies from Korea. “We can point to key industry leaders who are ex-Shell staff, entrepreneurs, CEOs of notable companies with international track record, even kings who have stood out among their counterparts in host communities. These point to the fact that,” he noted.

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there is a human capital development standard with Shell and such standard is worthy of emulation across the entire industry 16

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Mr. Bayo Ojulari

Also speaking at the summit, the Managing Director of Nigeria Liquefied Natural Gas (NLNG), Mr. Tony Attah expressed displeasure over challenges industry operators face in the area of maritime, and advised that further bureaucracies w o u l d m a ke t h e b u s i n e s s environment uncompetitive. He said: “Today, every ship that calls in-boarding must pay $400,000 for just one call. It doesn’t matter if it’s our own ship or it’s a third party ship. $400,000 boat charge is the highest charge in the world. Our neighbours here, Equatorial Guinea, could take $50,000. The average across the world that we have looked at, is $120,000 per call. We are now gradually getting to a point that on a call-to-call basis, for somebody who wants to buy FOB, we are not attractive. So if you look at this overlay and the speed at which we are becoming unattractive, it implies that we are going to become uncompetitive globally. “I think it’s important that we get counsellors and guidance of the Oil Producers Trade Section (OPTS), as supported by the country chairman of Shell to just

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do the needful and allow the Act as it is today; to just consolidate and move Nigeria forward. Give it another 10 years to stabilise.”

On his part, the Executive Secretary , Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote listed some of the achievements of the board to include the integration of Total’s Egina Floating Production Storage and Offloading (FPSO); processing of barite in-country; pipeline coating in-country; raising of the Nigerian Content Intervention Fund (NCIF) from $200 million to $350 million; 40 percent Nigerian owned marine vessels; 420 million tonnes per annum pipe mills including two world class mills in Abuja and Lagos; 9 million training man hour – over 7,000 trainees; NOGIC JQS; and the emergence of three Nigerian independents -- Aiteo, Eroton and Seplat.

Mr Tony Attah

He also spoke about the board’s involvement in modular refineries; noting that the board has equity investments in Waltersmith modular refinery, Azikel modular refinery and Duport modular refinery. Waltersmith which is located in Ibigewe , Imo State, is a 5,000 barrels per day (bpd) modular refinery. Azikel in Gbaran, Bayelsa State, is a 12,000 bpd, while Duport is a 2,500 bpd refinery, and is located in Egbakor, Edo State. According to Wabote, Waltersmith will probably start refining this month. He stated that the vision of the board, through its 10-year Strategic Roadmap, which will elapse in 2027, is to

INDUSTRY EVENT

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create 300,000 direct jobs, achieve 70 percent local content and retain $14 billion out of $20 billion annual industry spend in-country.

On the proposed amendment Bill of the NOGICD Act, Wabote said that the board is in support of section 38 of the new Bill, which states that operators should set aside 0.5 percent of gross revenue for research and development; section 68, which makes provision for administrative sanctions against erring companies without first securing a conviction in court; and section 70, which provides further clarity on the roles required of the board: R&D, diaspora, linkage, PPP’s, and other interventions .

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the expertise the country has acquired in the oil and gas industry, through local content, should be deployed to other major sectors of the country’s economy, so as to develop them as well. “Given the trajectory of the oil and gas industry and knowing that, as a mainstay of the Nigerian economy, it has not been able to contribute significantly to the nation’s GDP, any effort to rejig the present legal framework that will spur development across sectors is a welcome development,” Ogbuanya said.

There’s a need to borrow a leaf from the successes of Nigerian content in the oil and gas, largely resulting from the strong support and direct involvement of the Petroleum Ministry,” she said. Speaking on the position of service companies on the NOGICD amendment bill, the Chairman, Petroleum Technology Association of Nigeria (PETAN), Mr. Nik Odinuwe said that the section of the 2010 NOGICD act on operations in land and swamps, which is exclusive to Nigerian oil and gas companies, should be left un-amended, as it has led to capacity growth and economic expansion in the country.

Representing Petroleum Contractors Trade Section (PCTS) of the Lagos Chamber of Commerce and Industry (LCCI), Rosario Osadebe threw her weight behind the idea to escalate the benefits of Nigerian content legislation beyond oil and gas industry. However, she noted that each industry is unique.

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“This is not a case of one size fits all.

Nik Odinuwe

of the association is to improve on the Act and not to repeal it.

Engr. Simbi Wabote

He said, “Nigeria didn’t stop producing oil even during this period of COVID-19 in spite of the fact that expatriates are unable to fly in. That’s because Nigerians have developed capacity to for these highly technical activities.

The NCDMB boss emphasized that the Nigerian content is not about indigenization or ‘Nigerianisation’, but domestication of skills and retention of value in-country. Also lending his voice to the discussion, a justice of the Industrial Court of Nigeria, Hon. Justice Nelson Ogbuanya stated that local content in the country’s oil and gas industry has been a success story, but noted that there is a need to rejig the NOGICD Act 2010 in such a way that will increase the contribution of the oil and gas sector to the country’s Gross Domestic Product (GDP). He advised that

“There is an American quote that says: ‘If it isn’t broken, don’t fix it’. So, why repeal the Act if it has achieved this much in just 10 years?

Hon. Justice Nelson Ogbuanya

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“The position of PETAN is that the Act be maintained and not repealed by the National Assembly,” he quipped.

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LOCAL CONTENT

EGCDF Award Projects Worth N.6 Billion to Indigenous Contractors in Delta By Margaret Nongo-Okojokwu

he Egbema and Gbaramatu Communities Development Foundation (EGCDF) in Warri South West and Warri North Local Government Areas of Delta state has awarded 16 projects worth N643, 608,485.22 million to 16 indigenous contractors, with stern warning to the contractors not to abandon any of the projects. The projects includes construction of bungalows, access walkways, concrete jetties, waiting sheds, access roads, staff quarters, renovation of school building, perimeter fence, landscaping of hostel block, renovation of cottage hospital and water scheme in 14 communities out of the 17 communities and blocs that constituted the EGCDF. In his speech during the signing ceremony of the new projects circle by the Executive Chairman of Egbema and Gbaramatu Communities Development Foundation, Ambassador Jude Ebitimi Ukori, said the project

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selection, scoping and bid process were in line with the EGCDF practice. He explained that the 16 projects were keenly contested for by five contractors from the host communities for each project. He added that the engagement of the indigenous contractors with projects was to build their capacity to enable them compete with others globally. Ukori noted that the current executive of the EGCDF met a lot of projects that were ongoing with little money available to complete them. “So we were patient and careful to ensure that the projects were completed. And as I speak with you 99% of such projects have been completed”, he said. He advised the successful contractors to complete the projects as soon as possible as it is the tradition of the EGCDF to give out mobilization to contractors who are interested. “So we are going to mobilize you with 50% with a proviso of Advance Payment Guarantee from any of our reputable

commercial banks. “I advise every one of you to get the projects completed before expending your gains. Don’t indulge in unnecessary expenditure such as bride price payment of your wife, purchase of cars, completion of personal building with the project money until you first complete the EGCDF project because the principle of EGCDF is ‘no to abandonment of project and variation”, he said. Also speaking, Mr. Emmanuel Emeribe, Team lead of Chevron Nigeria Limited commends EGCDF for bringing sustainable development to the people, adding that CNL will continue to keep its side of the bargain for continuous development of the communities. On his par t, Chief Sule Akposibeowei, PPRC Rep, stated that the jobs have drawings and Bill of Quantities, as such the contractors should study them properly before embarking on the projects because there is no room for variation.

LOCAL CONTENT

NCDMB Commences Phase 2 Sea-Time Training for 40 Cadets By Margaret Nongo-Okojokwu

he Nigerian Content Development and Monitoring Board (NCDMB) has kicked-off the phase 2 of the Sea Time cadet Training programme for 40 cadets. The kick-off ceremony was held recently at the NCDMB Hall at Charkins Maritime and Offshore Services Limited, Ozuoba, Port Harcourt, Rivers State. This is coming weeks after the Board conducted aptitude tests and interviews for 60 prospective candidates, of which 40 cadets (38 males and 2 females) were adjudged to be successful. All the candidates were pooled originally from the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS) for the cadet training programme. The aim of the cadet training is to address the deficit of trained cadets in the maritime and oil and gas industries and reduce the dependence of foreign personnel in the marine operations. Under the program, the cadets will be trained

by Bernard Schulte Group for 12 months on board a foreign vessel and will be international certified with the Certificate of Competence (COC) recognized by the Nigerian Maritime Administration and Safety Agency (NIMASA). In his opening remarks, the Executive Secretary, NCDMB, Engr. Simbi Wabote explained that the cadets training is a Human Capacity Building Initiative of the Board, geared towards increasing the participation of Nigerians in the oil and gas industry, as shipping is a very important aspect in the sector. According to him, over 10,000 vessels berth at the Nigerian Port each year, yet there was a deficit of qualified Nigerians to man those vessels. He reiterated that the Board implemented the 6020-20 capacity building model to ensure that trainees get trained and employable in the industry after their exercise, stating that NCDMB and other servicing companies have complied with the model.

The Executive Secretary who was represented by the General Manager, Capacity Building Division, Dr. Ama Ikuru stated that phase 1 of the cadets training programme was a success and that cadets were appreciative of the opportunity that extended to them. He advised the cadets to be obedient, hardworking and dedicated to their programme and assured that the Board will continue to support them to succeed. Also speaking at the kick-off, the Chief Executive Officer, Charkins Maritime and Offshore Safety Centre, Sir Charles Kimikanwo Wami commended the Board for its effective implementation of the Nigerian Content Act and drive to ensure compliance. He appreciated the Board for its collaboration, which is driven by the vision to empower the youths by providing job opportunities. He advised the cadets to make good use of the opportunity and become good ambassadors to their communities and the nation.

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LOCAL CONTENT

Sylva Unveils NCDMB Gas Hub in Bayelsa ...performs groundbreaking of RUNGAS LPG plant By Margaret Nongo-Okojokwu operations phase. Sylva assured Rungas and other stakeholders that the Ministry of Petroleum Resources was committed to supporting the success of the manufacturing plant, adding that a committee had been set-up to drive the National Gas Expansion Program to make Nigeria the gas hub for the African continent. In his remarks, the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote explained that the Board developed a 10-Year Strategic roadmap in 2017 and commenced its implementation in January 2018, with an ambitious goal of achieving 70 percent Nigerian Content level by the year 2027.

he Minister of State for Petroleum Resources , C h i e f T i m i p r e Sy l v a recently unveiled the Nigerian Content Development and Monitoring Board (NCDMB) Gas Hub and performed the groundbreaking ceremony of Rungas LPG Composite Cylinder Manufacturing plant, located inside the Gas Hub at Polaku community, Bayelsa state. The Gas Hub is sited at the 10.6 hectares of land which the Board had purchased at Polaku Community in 2013 for the purpose of establishing a pipemill. Discussions with various investors regarding set up of the pipemill did not yield desired results, thereby forcing the Board to restrategise on how to utilise the land for productive uses. Speaking at the event, the Minister stated that the project was in furtherance of the efforts of President Muhammadu Buhari’s administration to diversify the Nigerian economy by developing the nation’s huge gas resources across the entire value chain. He commended NCDMB for restrategizing to utilize the 10 hectares of land for gas related projects, adding that the event is a practical step being taken to give effect to the Federal government declaration of

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2020 as year of gas. Commenting on the proximity of the NCDMB gas hub to the Shell Gbarain-Ubie gas plant, Sylvia hinted that it will provide opportunities to leverage and activate value adding initiatives. “The location of this land is close to the Gbarain Gas Plant that produces more than one billion standard cubic feet per day of gas; that provides opportunities to leverage on the proximity to activate value adding initiatives and lead to industrialization and multiple economic activities. Commenting on the groundbreaking of Rungas Prime limited facility, Sylva said achieving LPG penetration across Nigeria will require targeted interventions directed at both the demand and supply end of the LPG value-chain. He mentioned that it is a pragmatic step towards achieving Federal Government’s agenda of LPG penetration towards making LPG the preferred choice for cooking fuel. The Minister indicated that the manufacturing plant will have the capacity to produce between 400,000 to 1 million LPG composite cylinders per annum and in turn make composite LPG cylinders accessible and affordable to Nigerians as well as create employment opportunities during its construc tion and

He said: ”Technical Capability Development is one of the pillars of our Strategic Roadmap meant to facilitate the building of manufacturing facilities and capabilities to support in-country manufacturing and assembly of equipment and input materials required for exploration and production activities’’. Wabote explained that the strategic roadmap provided the leverage to use the Polaku land for gas related activities and partner with Rungas Limited to setup LPG Cylinder Manufacturing plant; Shell Nigeria Gas to set up Pressure Reduction and Metering Station and Total Support Energy Limited for the provision of CNG and LNG mother-stations. Shedding more light on the Board’s new strategies for the Polaku land, Wabote stated that “within a year of changing the direction towards gas, we have finalised partnerships with three investors with four hectares of the land already taken up. He mentioned that these activities will contribute to our drive towards the 70 percent Nigerian Content and creation of job opportunities and other economic activities. He congratulated Rungas Prime Industries Limited and other stakeholders for taking the bold step to bring the facility to Bayelsa State.

LOCAL CONTENT

Azikel Refinery: FG Reiterates Commitment to End Fuel Importation By Margaret Nongo-Okojokwu

he Federal Government has reiterated its commitment to end fuel importation into Nigeria by encouraging investments in local refining of crude oil in the country. The Minister of State for Petroleum Resources, Chief Timipre Sylva stated this while speaking during an inspection of the first hydroskimming 12,000 barrels per day private modular refinery, being built in Yenagoa, Bayelsa state capital, by Azikel Petroleum Refinery, owned by businessman, Dr. Azibapu Eruani. According to a statement issued by Azikel, the Minister expressed President Muhammadu Buhari’s commitment to reversing Nigeria’s status as a net importer of refined petroleum products to a net exporter in the coming years, adding that the refinery was important to Nigerians and the country’s search for economic prosperity. Sylva stated that the refinery, which was about 75 per cent completed, has the capacity to process 12, 000 barrels of crude per day. He noted that the Azikel hydro-skimming

refinery is a massive visionary and pragmatic quest to facilitate the Federal Government’s objectives towards attaining self-sufficiency in the production of refined products such as petrol, diesel, aviation fuel and liquified petroleum gas (LPG). He said: “The Azikel Refinery is set to actualise the export of refined products from Bayelsa State to other states in the Nigerian federation, with daily production of 1.5 million litres of petrol, one million litres of diesel 500,000 litres of kerosene and aviation fuel, thereby reversing of the stigma of Nigeria, the world’s fifth-largest producer of crude oil being a net importer of refined products.” The minister further stated that the people-focused dream of President Buhari to industrialise the Niger Delta, boost infrastructural develop m ent an d f a cilitate employment-creation was been dynamically actualised by the Azikel Refinery through the additional workforce and encouragement of hundreds of youth towards the acquisition of vocational skills needed to fill paid and self-

employment slots being rapidly created by the refinery. He commended the Nigerian Content Development Monitoring Board, NCDMB, in the development of the project, as well as the participation of the Nigeria National Petroleum Corporation, NNPC, Nigerian Agip Oil Company, NAOC, Total Nigeria and Shell Petroleum Development Company of Nigeria (SPDC) for the supply of feedstock for the Azikel refinery. Also speaking, President of Azikel Petroleum Refinery, Dr. Azibapu Eruani commended the Federal Government for granting the company the license to build the refinery. He pledged to work assiduously towards actualising the government’s objective of industrialising the nation, creating positive economic multipliers, including jobs for the youth and other Nigerians. He said, “The Azikel Refinery is only a subsidiary that genuinely mirrors the patriotism and innovations of the Azikel Group.”

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LOCAL CONTENT

EMMAN Appeals to FG to Review Levies on Imported Finished Electricity Meters. By Jerome Onoja one-year deferment of the 35 percent import adjustment tax (levy) imposed on fully built unit (FBU) electricity meters HS Code 9028.30.00.00 under the 2019 fiscal policy measures for the implementation of Economic Community of West African States (ECOWAS) common external tariff (CET) 2017 – 2022. The approval for the adjustment followed a request by Zainab Ahmed, Minister of Finance, Budget and National Planning, to support the Nigerian Electricity Regulatory Commission (NERC) roll out 3million electricity meters under the Meter Asset Provider (MAP) framework.

ollowing President M u h a m m a d u B u h a r i ’s ap p roval of on e year deferment of the 35 per cent import levy on electricity meters to help improve Nigeria’s electricity meter deficit, the Electricity Meter Manufacturers Association of Nigeria (EMMAN) has appealed to the Federal Government to review its decision to promote full local content in the manufacturing of pre-paid meters. The association says the directive to defer 35 per cent import duties on importation of pre-paid meters is an incentive for mass importation of pre-paid meters as against up scaling of production capacity for made in Nigeria meters. A c c o rdin g to it , t h e l o c a l manufacturers are not being patronised by off-takers at the downstream of the power sector value chain because they are not prepared to cut corners. EMMAN believes the presidential approval of tax deferment on importation of 3 million finished electricity meters would have negative effects on the

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power sector. It says allowing such decision to run for a year would jeopardise government efforts at industrialising the country. The group stresses that the deferment might set back the development that was already on ground while the decision would dampen the hope of the local manufacturers as well as cripple the anticipated growth in the sector. It noted that as an in-depth manufacturer in the sector, it takes an average of three months to set up SKD (Semi Knocked Down)/ Completely Knocked Down (CKD) factory. The association, therefore, advised the government that importers should be encouraged to set up factories so as to create a value chain that would provide employment opportunities to Nigerians. It would be recalled that President Buhari considered and approved a

MAP regulation is a gradual up scaling of the patronage of local manufacturers of electricity meters with an initial minimum local content of 30 percent with the potential of significant job creation in the area of meter assembly, installation and maintenance. Speaking as a member of the Original Equipment Manufac turer (OEM) in the downstream of the power sector, Mr Kola Balogun, Chairman of Momas Electricity Meters Manufacturing Limited (MEMMCOL), said that the 35 per cent levy is the only protection that is available to them in the sector and it is not peculiar to the sector alone. Balogun said the removal us an indication that the government is more disposed to favour importation to the detriment of our local industry.

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The implication of this is that over 600million US dollars would be exported to China to import the approved 3million meters. This means we would further be developing another country’s economy and continue to increase unemployment , pover t y and underdevelopment in our country.

LOCAL CONTENT “We are bold to emphatically say that we at MEMMCOL, have the local capability to bridge the metering gap if the right policy is put in place. “This can be by way of financial intervention by the government whereby certain agreed percentage of the cost of meter supply would be advanced to us like the importers do with the Chinese and upon completion of installation balance payment would be made to us. “We do not even mind to furnish a bank guarantee as our own commitment in such deal.” According to him, the right thing that would have been done by the government is to identify challenges facing local manufacturers and find a way to proffer solutions.

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For instance there is high tariff rates payable to import raw materials that are not readily available in the country, the duty payable on our raw materials ranges from five per cent per to 40 per cent plus other port charges. These are like the ETLS of 0.5 per cent, CISS of one we cent, VAT of 7.5 per cent and surcharge of 7 per cent whereas it is a one off payment of 10 per cent duty on the finished meters plus other port charges for Importers and we sell at the same regulated prices. “You will agree with me that this is not fair to the manufacturers given the amount of investments manufacturers put in place in terms of technology transfer, plant and machinery, human capital development through training and retraining, research and development,” he added. The chairman stressed that was the major reason most of the industries in the country had closed down because of high production costs, thereby making manufacturing not to be viable and encouraging. Balogun, therefore, suggested that the way forward was

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backward integration whereby government would categorise the key local players in the sector and other sectors of our economy, according to their production processes by separating assemblers from manufacturers and issue certificates accordingly. He listed the certificates to the include Semi Knocked Down (SKD), Completely Knocked Down (CKD), Original Equipment Manufacturer (OEM) and Original Brand/Design Manufacturer (OBM/ODM). The MEMMCOL boss said all the raw materials necessary to manufacture would be made to attract zero per cent import tariff rate for OBM/ OEM manufacturers while the relevant government offices would monitor the use of the gains from the import tariff policy to ensure that they plough it back into their investment. This, he added, would develop the sector and the economy at large as well as encourage the manufacturers of the raw materials to come and set up their factories in the country. According to him, there will be no reasons for the country to import anymore. “We wish to use this medium to advise the

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Federal Government to send its delegate to verify our capability and replicate this across all our various sectors so as to be well informed before taking industrial decisions,” Balogun said. Mr Kunle Olubiyo, President, Nigeria Consumer Protection Network, also said there is an urgent need for Federal Government of Nigeria to put in place a very strict regime of sanctions against off-takers who have deliberately refused to accept indigenous technology and made in Nigeria pre-paid meters or pre-paid meters assembled in Nigeria. Olubiyo noted that metering devices in the electricity sector provides the end users, the market players, participants and seemingly regulatory agencies a spectrum of

energy, accountability, efficiency conservation and of course probity. He said, the issues of customer centricity, customers satisfaction, value for money, customers behaviours, customers being short changed, liquidity challenges and prospects for reasonable returns on investments amongst others were all linked to effective metering and closures of the embarrassingly huge metering gaps. “As important as the vexed issue of metering are, there are other variables and extraneous factors that, if not eradicated or boldly addressed once and for all, Nigerian Electricity Market shall remain an elusive growth and a vicious circles of stagnation. “As Electricity Consumers, we have taken our time to present our position to Federal Government of Nigeria via a five-page document tagged, “Conditions Precedent to Increase in Electricity Tariff. “As a matter of fact, what we need now is a review downward of the presently discriminatory pricing of gas pricing methodology and disparity in the gas pricing business model with different pricing options for different off-takers. “ El e c tricit y co n s um e r s a re increasingly being made to pay for fixed cost, padded cost, over-bloated indexes of hyper inflated cost of production of each unit of electricity measured in kilowatt per hour etc.,” Olubiyo said. According to him, end users of electricity have been badly battered and impoverished by a cartels of energy cabals fiddling with the economic soul of Nigeria and holding the Nation down in perpetually counter-productive operations. He added, “With just political will and sincerity of purpose, Nigerian government could change the narratives and not only make Nigeria great again but make her a more virile, robustly prosperous and globally-competitive reindustrialised country.”

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LOCAL CONTENT

Local Content Saves Nigeria US$2bn on LNG Train 7 By Margaret Nongo-Okojokwu

Act would always protect investments in-country, adding that companies that build capacities are given first right of refusal in industry projects. “The law is a protective instrument for businesses. There are cable manufacturers in Lagos. If there is any opportunity to supply cables to oil and gas companies in Nigeria, those companies have the right of first refusal.”

he pragmatic implementation of the Nigerian Oil and Gas Industr y Content Development (NOGICD) Act has saved Nigeria the sum of US$2bn in the Engineering Procurement and Construction (EPC) contract for Nigeria LNG Train 7 Project.

He said: ”In the LNG Train 7 projec t contrac t which was recently concluded and awarded, the difference in price between Saipem that had established itself in Nigeriaand the second lowest bidder that was coming from outside the country was US$2bn. That’s a huge sum of money that this country

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote dropped the hint on Thursday at the 2020 Annual Capacity Building Workshop organised by the Board for the Judiciary.

would have lost if not for the drive for the development of Local Content.

The workshop was held via zoom and it drew over 117 participants, including Justices of the Supreme Court, Appeal Court, National Industrial Court, Federal High Court and external solicitors. Wabote delivered the keynote address at the workshop and stated that contrary to wrong insinuations held in some quarters, ample evidence has proven that sustainable Local Content practice reduces the cost of oil and gas projects in addition to creating job opportunities and economic prosperity. He gave example with the LNG Train 7 EPC bid, where Saipem Contracting Nigeria and its consortium won the contract with a much lower bid than its competitor, leveraging its commitment to Local Content and investments in Nigeria in the last 50 years.

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“The other consortium had no footprint in-country and it proposed to put extra US$2bn on the back of the project to develop local capacity to execute the project. This is evidence of cost savings associated with the development of Local Content.” Admitting that developing Local Content and building capacity would always entail some costs at the beginning, the Executive Secretary insisted that such costs ultimately gets reduced overtime and creates much needed jobs and stability in the polity. He also clarified that the focus of Nigerian Content implementation is not Nigerianization, rather it encourages domiciliation of capacities and promotion of foreign direct investments and home grown investments. He assured that the NOGICD

On the possibility of recording 100 percent Nigerian Content in the sector, the Local Content boss clarified that “the aspiration is neither possible nor desirable, especially for a developing country like Nigeria. You still need foreign direct investments. The industry is a very vast business, with high intensive technology. You still need to leave some space for foreign participation and investment to grow the industry. But you are going to see 70 percent. That is our aspiration, growing from five percent which was the level when Nigerian Content started.” Speaking further, the Executive S e c re t a r y s a i d N ige ria n Content implementation led to the development of huge infrastructural and human capacities, which kept the operations of the oil and gas industry running smoothly at the height of COVID-19, notwithstanding the exit of most expatriates. ”Despite the impact of COVID-19 and expatriates leaving the country, Nigeria’s crude oil production never stopped. We still produced to the limit that were stipulated for us by OPEC. This confirms that Nigerian Content helped the oil and gas industry and ensured that we never felt the impact of COVID-19,” he said.

LOCAL CONTENT The Chief Justice of Nigeria, Hon Justice Ibrahim Tanko Muhammed delivered the opening remarks at the workshop, represented by Hon. Justice Olukayode Ariwoola JSC. He described the implementation of Local Content policies across the globe as an apparatus through which citizens of oil rich countries derive value from crude oil resources. He also thanked the NCDMB for enhancing the capacity of the judiciary to dispense justice from an informed and contemporary position, particularly as it related to Local Content development and oil and gas operations. Mrs. Rose Chukwuonwe, a Director of Periscope Consulting and former Coordinator Legal

Ser vices NCDMB set the background of the workshop. She indicated that one of the Board’s mandate as enshrined in the NOGICD Act, is to build incountry capacity and capabilities of key stakeholders and the legal sector is one of such important groups. She noted that the workshop was expected to deepen the Justices’ understanding of the philosophy and objectives of the NOGICD Act, increase their understanding of the provisions of the Act and aid seamless implementation and enforcement of the Act. The workshop was also expected to bridge the knowledge gap, create needed awareness of the workings of the Act and build the

necessary synergy for effective implementation and enforcement of the NOGICD Act, she added. In his comments, the Director of Legal Services, NCDMB, Barr. Mohammed Babangida Umar, stated that “no matter how good your law is, if you don’t have the support of the judiciary it becomes difficult to succeed.” He assured that the Board would continue to build the capacity of the judiciary, especially the Justices, ”to enable them have a good understanding of the Local Content law, so that when matters around the Act come before them they will be in a good position to dispense Justice.”

NOGTECH: 5 Winners Emerge, Get US$50,000, Product Development By Margaret Nongo-Okojokwu

entrepreneurs. Each of the five winning teams was given a cheque of US$10,000 equity-free grant and they will proceed to participate in a 3-month incubation programme during which they will get workspace, expert mentors, global partners and market access to the nation’s oil and gas industry, ensuring they become commercial and investor-ready.

ive innovative teams were selec ted on Saturday as the winners of the Nigerian Oil and Gas Technology (NOGTECH) Hackathon sponsored by the Nigerian Content Development and Monitoring Board (NCDMB). The teams are Fuel Intellisense, Homefort Energy, Gricd Mote,

Kiakia Gas and Airsynq and their projects were picked as the most innovative and bankable by judges, after the 15 semifinalists made presentations on their innovations. The threeday Hackathon started on Thursday with the teams having detailed engagement with industry experts, mentors and

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote announced at the closing of the programme in Lagos that the Board will support the five firms in their product development phase, drawing from the US$50million Nigerian Content Research & Development Intervention Fund. Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

LOCAL CONTENT The Board’s support he said, will go into helping the companies get patents for their innovations and produce prototypes, supporting them to conduct field trials, business start-up as well as provide industry linkages. He however confirmed that the Board’s funding would depend on the success of the product incubation phase, stressing that “the goal is to fund bankable businesses, not charities.” He explained that the sponsorship of the NOGTECH Hackathon is within the Board’s mandate, hinting that section 70 of the Nigerian Oil and Gas Industry Content Development Act empowers “the Board to engage in targeted capacity and capability d e ve l o p m e n t i n te r ve n t i o n s and conduct studies, research, investigation, workshops and trainings aimed at advancing the development of Nigerian Content.” He stated that the Board announced the initiative through a webinar it organized in May 2020, during the height of COVID-19 lockdown, because it saw the opportunity to create a platform for local creation of digital technologies to solve problems for the Nigerian society. The Board was also keen to stimulate the participants to channel their intelligence and become successful entrepreneurs, he said. Wabote counselled the five winning teams to be clear about their vision and strategy and retain their passion, stressing that their motivation should not be on making quick financial gains, rather on innovating solutions, making a difference and contributing to the society. According to him, “All the greatest inventors, particularly in the technology space did not start by looking for money as the objective. They started because they wanted to make a difference and create a change. The prize money is not the key factor. It was meant to bring people together.” “Once you have passion in anything that you do, you will be successful.

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But once you put money first, you will be chasing money and it will be running away.” He also advised other participants of the programme to stay committed, passionate and driven by value, stressing that there were many other routes to push their ideas to the market and the real winners are defined by the marketplace. One of the winning teams is Fuel Intellisense, a project that will help fuel stations to get accurate data and avoid loss of revenue through syphoning underground fuel or stealing of fuel from different outlets. The project proposes to install a system that can be viewed remotely from anywhere, showing how much fuel was dispensed per day and what is left. The system will be installed on existing pumps and tanks. Another project is Homefort Energy, which seeks to make cooking gas affordable and accessible to low income families, whereby they can pay for gas using the pay as you go model. The initiative seeks to help millions of Nigerians, especially the rural poor to switch from using firewood or kerosene to cooking gas. Another winning project is Gricd Mote and the proponents explained that it would provide cool shade transportation for temperature sensitive items in health sector and the oil and gas space and store them in correct conditions. The product will also provide monitoring for temperature humidity and locations of these items. Kiakia is another winning product and it seeks to get gas to the end users while enabling them to know the quantity of gas left in their cylinders, so that they don’t run out of gas in their homes. The system will also be used to order for gas and can be deployed by gas plant owners to manage sales in their plant. The fifth project is Airsynq, a novel idea of balloon lifted satellite that uses helium to stay in flight up to about 2160 hours or about 90 days and having to come down for 24 hours routine maintenance. This

technology can provide a year continuous area surveillance, with an artificial intelligence software that can help international oil companies and security teams monitor all the activities around areas where the balloon is deployed. The balloon goes through a routine of checking each image in real time and then reports every activity that is happening with sensors that are able to pick out images from altitude of about 3000 metres and with the balloon lifted satellite operating at about 3000 feet above the ground. NOGTECH is the first ever technology Hackathon in the Nigerian Oil and Gas industry and it was organized by the NCDMB in partnership with Learners Support Consultancy Company. The General Manager, Capacity Building Division NCDMB, Dr. Ama Ikuru explained that call for entries was made in June in seven thematic areas: health, asset security, tackling cyber threats, renewable energy, skills and talent management and supply chain. He said that a total of 630 entries were received at the close of submission in the third week of July. The entries were subjected to two stages of review, first from internal NCDMB Judges and then from external judges, before the top 15 teams were selected for the threeday Hackathon. He revealed that the Board was also working on other projects in support of technology development and innovations in the Oil and Gas Industry. Some of the initiatives include the sponsorship of ENACTUS – Science and Technology Innovation Challenge; Establishment of modern Research & Development Centres of Excellence; Upgrade of Laboratories in Universities and Technical and Vocational Education and Training; Active participation in Technology Expos and NCDMB Research Product Development framework to help inventors attain market penetration.

SOCIAL INVESTMENT

Senate President Flags Off NCDMB’s GSM Training for 1,000 youths By Jerome Onoja programme as a landmark effort in the Federal Government’s commitment to uplift the wellbeing of youths which constitute key par t of th e natio n’s population.

he Senate President, Dr. Ahmad Ibrahim Lawan on Thursday opened the training sponsored by the Nigerian Content Development and Monitoring Board (NCDMB) for 1,0 0 0 youths from Yobe State, focussing on GSM phone repairs, hardware, software, and entrepreneurship development. The training is part of NCDMB’s Youth Empowerment Programme for the North East and is designed to train and empower youths in high impact economic sectors such as ICT, Agriculture and construction. The training is conducted in partnership with the National Information Technology Agency (NITDA) and the learning centres will be located at the Federal University, Gashua, Yobe State; Federal Polytechnic, Damaturu, Yobe State; Atiku Abubakar College of Legal Studies, Nguru, Yobe State and the Federal College of Education, Potiskum, Yobe State. In his remarks at the virtual event, the Senate President described the

He noted that GSM devices are growing in sophistication as important communication tools, just as users are multiplying by the day, such that any person that is skilled in repairs will have continuous patronage. He canvassed for increased budgetary allocation for the youth population and creative engagement, to enable th em contrib ute meaningfully to the economy and stay away from crime, which is often the result of idleness. Lawan also praised the synergy between NCDMB and (NITDA) in jointly organizing the training, assuring that the Senate would continue to provide legislative impetus for collaborations amongst government agencies in the delivery of their mandate. In his welcome address, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote explained that the Board is charged with developing local talents, facilities and assets that support the oil and gas operations and its linkage sectors but it had realised that the oil industry is incapable of absorbing all local talents even at peak capacity, hence the conceptualization of strategic youth empowerment programme.

He said the GSM programme would entail classroom phase, software and hardware modules, entrepreneurship development phase where trainees will benefit from starter packs and renting and furnishing of shops for apprenticeship and market linkage opportunities. The Board would also sponsor mentorship and business development support to facilitate participant’s entry into the business world as SMEs and payment of stipends during the training, apprenticeship and mentorship phases. He assured that the model has worked effectively in previous trainings sponsored by the Board. On why the Board decided on GSM Training, Wabote stated that “since the GSM revolution in 2001, the ICT sector has evolved as a major contributor to employment, wealth creation, technology development and innovation. The ICT sector has grown its contribution to the Gross Domestic Product (GDP) from about three percent in 2001 to 11 percent in 2019.” He also hinted that the event further amplifies Nigerian Content outreach to Nigerians irrespective of state of origin or residence. He further called on youths from the North East with qualification relevant to the oil and gas industry to register on the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), to stand a chance of being selected for training and employment opportunities. In his goodwill message at occasion, the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva stated that the Training and Empowerment programme falls within the Ministry’s priority areas of contributing to President Muhammadu Buhari’s aspiration to free 100 million Nigerians from poverty by 2030.

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PHOTO GALLERY

NIGERIA’S INFORMATION AND CULTURE MINISTER, CHIEF LAI MOHAMMED TOURS WALTERSMITH’S 5000BPD MODULAR REFINERY AT IBIGWE, OHAJI-EGBEMA LGA, IMO STATE.

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PHOTO GALLERY

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

PHOTO GALLERY

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PHOTO GALLERY

FIVE WINNERS EMERGE!

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

Nigeria trudges on with full deregulation By JEROME ONOJA AND AMOS IKE

eregulation and the attendant hike in fuel price, amid the COVID-19 pandemic, is generating c o n t r ove r s y a c r o s s the country and has pit the people against the government. This article explores the arguments in support and against the policy and changes that are expected in the short to long term.

controversial issues in the Nigerian political and economic space. However, the policy was bedeviled by uncertainty and lack of clarity, especially as government had been giving conflicting information about the policy. Initially, the government had stated that it would hands off the fixing of prices and allow marketers to determine the prices.

The Federal Government, in March 18, 2020, achieved a major milestone in the downstream petroleum sector, with the announcement of full deregulation of the industry.

Few days after, the Petroleum Products Pricing Regulatory Agency

This move was considered a bold step, as the issue of deregulation and fuel subsidy removal had remained 32

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(PPPRA) said it would not allow marketers to be solely responsible for fixing the price of Premium Motor Spirit, PMS

also known as petrol. Again, few days after, the same PPPRA recanted, stating that it would no longer interfere, and that marketers were now free to determine the prices, while it added that it would continue to regulate the sector to ensure consumers are not exploited by the marketers. Announcing the policy, Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Abdulkadir Saidu, had stated that deregulation of the sector was in the country’s best interest because

COVER STORY for the policy, Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that after a thorough examination of the economics of subsidising petrol for domestic consumption, the federal government concluded that it was unrealistic to continue with the burden of subsidizing PMS to the tune of trillions of naira every year.

Mr. Abdulkadir Saidu

This, he said, becomes even more relevant, especially as subsidy was benefiting in large part, the rich, rather than poor and ordinary Nigerians. According to Sylva

In addition, giving the guidelines for the policy, Abdulkadir stated that under the market-based pricing regime, products prices would be determined by market forces, adding that this explained the downward and upward movements in the guiding pump price band of PMS, which reflected market realities. He said: “The agency shall monitor market trends and advise the NNPC and oil marketing companies on the monthly market-based guiding price which shall include the indicative retail price at which the product shall be sold across the country.

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competition has a way of forcing down prices and ensuring that companies place a tight rein on production cost such that wastes that could be passed on to consumers in form of high prices are eliminated. He said: “The trillions of naira that would have been spent subsidising PMS could be injected into other key sectors such as agriculture, education, health, power and infrastructure. “There will also be focus on the provision of social safety nets for the poor who bear the brunt of the COVID-19 pandemic.

“The Federal Government would continue to monitor the price of petroleum products and advise on monthly guiding prices that guaranteed reasonable returns to operators while ensuring consumers paid appropriate prices

in line with market reality and were not overcharged. “The government’s role in a deregulated economy was to provide, through the operation of the Petroleum Products Pricing Regulatory Agency, a pricing mechanism to create a market-driven price regime.” On his part, explaining the rationale

Chief Timipre Sylva

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when crude oil prices were down, government, through its regulatory functions ensured that the benefits of lower crude oil prices were enjoyed by Nigerians by ensuring that PMS price was lowered, adding that at that time, the government indicated that increase in crude oil prices would also reflect at the pumps. He blamed fuel subsidy for the low refining capacity in the country, noting that subsidy made it impossible to attract the much-needed investments into the refining sector. He said: “This is a necessary action taken by a responsible government in the overall interest of Nigerians. Indeed, one of the reasons we have been unable to

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COVER STORY attract the level of investments we desire into the refining sector has been the burden of fuel subsidy. “We need to free up that investment space so that what happened in the banking sector, aviation sector and other sectors can happen in the midstream and downstream oil sector. “We can no longer avoid the inevitable and expect the impossible to continue. There was no time government promised to reduce pump price and keep it permanently low.” He called on Nigerians to ignore the antics of unscrupulous middlemen who would want status quo ante to remain at the expense of the generality of Nigerians, noting that in addition to attracting investments and creating jobs and opportunities,

“

the deregulation policy would free up trillions of naira to develop infrastructure instead of enriching a few. He said: “Deregulation means that the government will no longer continue to be the main supplier of petroleum products. But will encourage private sector to take over the role of supplier of Petroleum Products.

“Petroleum products are refined from crude oil. Therefore the price of crude (the feedstock) for the refining process will affect the price of the refined product.” He, however, maintained that the government was mindful of the likely impact higher PMS prices would have on Nigerians, adding that to alleviate this, the government was working very hard to roll out the auto-gas scheme, which would provide Nigerians with alternative sources of fuel and at a lower cost. Furthermore, harping on the alternative to PMS, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, pledged to support ongoing initiatives by the Ministry of Petroleum Resources to provide alternate energy source to Nigerians through aggressive activation of Compressed Natural Gas, CNG, refill stations for motorists across the country. Kyari affirmed that the NNPC had already keyed into the gas penetration agenda as championed by the Minister of State for Petroleum Resources, Chief Timipre Sylva. He said as an energy company with focus on cleaner and cheaper sources of fuel, the

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Kyari also shed more light on the status of the nation’s refineries, noting that the plants were deliberately shut down to allow for a robust diagnosis of the issues which have overtime made it impossible for the facilities to operate up to their name plate capacity. He added that the shutdown also became inevitable due to difficulties in feeding them with crude oil via the pipelines that have been completely compromised by vandals. He said the corporation was moving rapidly to execute complete rehabilitation of the refineries under an exercise that would guarantee restoration of the facilities to at least 90 per cent capacity utilization. Also speaking in support of the deregulation policy, Chairman of Major Oil Marketers Association of Nigeria, MOMAN, who is also the Chairman/Managing Director, 11 Plc, Mr. Adetunji Oyebanji, said:

“

“This means also that market forces will henceforth determine the prices at the pump. In line with global best practices, Government will continue to play its traditional role of regulation; to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers;

a regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates.

“

NNPC would continue to work with other stakeholders in the industry to provide viable alternatives to petrol, which would ultimately lead to reduction in demand for the product and eventual reduction in price.

Mallam Mele Kyari

“Despite some issues associated with it, deregulation is the best foundation to grow the industry.

They should open up NNPC assets like pipelines and depots to third parties. They should also grant all players equal access to forex, so we don’t have a single entity involved in importation. “However, we are just starting the process. It is a beginning; eventually it will bring development to the industry, attract investment, create jobs and grow the economy.

COVER STORY “In a deregulated environment, prices will go up and down with market forces. It is to be expected. At times, it will go up and at times it will go down. Since we are importing almost 100 per cent, the movements will follow the movements in the international product prices.

necessary to facilitate the smooth functioning of market are effectively and conclusively implemented. The NESG said:

“Only one importer is a monopoly. I don’t think that augurs well for competition.

“

If all players have equal access to foreign exchange at the same rate, then we would have a level playing field.

Professor Omowumi Iledare,

Mr Asue Ighodalo

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“Adequate communication to stakeholders and the general public on the benefits derivable from these actions must also be regularly carried out. Mr. Adetunji Oyebanji

“If Company A can bring in product cheaper than Company B, it can compete on price. This will not happen as long as only one entity is importing and determining who gets what.” In its own submission, the Nigerian Economic Summit Group, NESG, also applauded government’s decision to deregulate the sector, noting that the benefits would ensure smooth functioning of the petrol market. In a statement by Chairman of its Board of Directors, Mr Asue Ighodalo and NESG Chief Executive Officer, Mr. Laoye Jaiyeola, the NESG commended government’s actions at deregulating fuel and electricity prices and urged that proper policies, processes and procedures be put in place, to ensure that all the reforms (beyond price deregulation)

NESG notes the nation’s huge exposure to the vagaries of oil price fluctuations and emphasizes the need for a better structured and effective diversification of the economy. “However, NESG is not oblivious to the continuing crucial role of the oil and gas sector in our economy. Accordingly, we applaud the work now being done by the Presidency to see to the quick passage of the Petroleum Industry Bill (PIB), and urge further stakeholder consultations so that the resultant law will create the required enabling environment for investment flows, reserves enhancement, technology transfer and utilization efficiency.” On his part, Ghana National Petroleum Corporation (GNPC) Professorial Chair, Oil and Gas Economics and Management, Institute for Oil and Gas Studies, University of Cape Coast, Professor Omowumi Iledare,

“

put the real price of petrol in Nigeria between N200 and N215 per litre, stating that the NNPC was magnanimous to sell the commodity at N151.56 per litre, ex-depot price. Iledare, who is a petroleum economist said: “The N160 per litre price in my opinion is social optimal price. The range to guarantee fair return, looking at foreign exchange, is about N200 to N215 per litre. “It should be noted that 50 per cent to 55 per cent of the total accounts for crude cost, 15 per cent to 20 per cent transportation and Value Added Tax (VAT) about eight per cent, while distribution and marketing attract 15 per cent margin. “I empathize with Nigerians on the seemingly immediate pain but this is going to be temporary compared to not deregulating.

“

Deregulation is a necessary and inevitable decision for the government to make now to avert the eminent collapse of the energy sector.

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COVER STORY “With perseverance, Nigeria will be better off in the long run if this subsidy gorilla is tamed once and for all. However, the optics must meet the rhetoric and action. The executive needs to do something with Petroleum Products Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund (PEF) to substantiate the deregulation direction.

He said: “They have developed a thick skin that our pleas and cries no longer mean anything to them.

“People are still making the mistake of thinking the increase of PMS pump price is a removal of subsidy. It is not,

“

as long as NNPC continues petroleum product importation via the use of federation assets (crude oil that belongs to Nigeria and not to NNPC) to meet domestic demand and equalization charges are still paid out by PEF to maintain uniform pricing nationwide, then subsidy is very much alive, perhaps indirectly.” However, despite the fine points laid out by supporters of the policy, there are still larger dissenting voices, led by ordinary Nigerians and labour bodies, who are arguing that that the hike in the prices of the commodity, which accompanied the deregulation policy, was coming at a wrong time and would further worsen the sufferings of ordinary Nigerians. Specifically, President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, described the hike in the price as unnecessary and an attempt to further impoverish Nigerians. He said:

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Clearly, the action of the Federal Government is most insensitive and an affront to the Nigerian people who are bearing heavy burden of the COVID-19 pandemic. 36

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Comrade Ayuba Wabba

Eve r y w h e re in t h e w o r l d , governments are granting various types of palliative but ours is interested in piling more miseries on its citizens. We will resist this latest move to impoverish the mass of the working people.” Wabba emphasised that the government failed to acknowledge the fact that the naira had been on free fall for many years, which had also affected the prices of commodities. “The point we have made is that many Nigerians have been pushed to the edge and it is insensitive to increase the prices of the two commodities at the same time-petroleum products and the electricity.

“

You can see the impact already in the prices of bread which have increased from N250 to N300,” Wabba added. The President of the Trade Union Congress (TUC) Comrade Quadri Olaleye, bemoaned the fact that the increase in fuel prices and electricity bills, coming at a time people were losing jobs, when businesses were adversely affected by COVID-19, were wicked steps.

Comrade Quadri Olaleye,

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No government has raped this country like the present one; ironically it has enjoyed our understanding the most. They beat us and when we cry, they send security operatives after us or force us to pay a fine of N5 million for ‘hate speech’. Our patience has run out.” Also, the Petroleum and Natural Gas Senior Staff Association of Nigeria argued that the recent hike in fuel price was not caused by the global price of crude oil but a deliberate devaluation of the naira by the Federal Government. The President of PENGASSAN, Comrade Festus Osifo, said: “The driver of the pump price is the currency exchange. What has necessitated this today is not actually because of the fact that the product pricing is increasing internationally. The crude oil price relatively in the last six months has been hovering between $40 and $45 per barrel. “But what has necessitated this is actually the devaluation.

“

Today, we observe that in the last three months, we have had a 25 per cent devaluation of our currency. The government did it deliberately to have more money.

COVER STORY majority of the Nigerian citizens. I think this is double jeopardy and all stakeholders need to engage with the government.” He argued that increasing fuel price in 2020 in the middle of the global COVID-19 pandemic and a worsening economy would exacerbate the suffering of Nigerians.

“

“I think the timing today is even more problematic compared to 2012 because we are battling a pandemic. I can tell you that for a lot of households, their income has diminished; a lot of businesses have been shut down since March. Comrade Festus Osifo

“They now have more money having done the devaluation and are now passing the burden to us because petroleum is not refined in Nigeria but abroad and everything is priced in dollars. The cost of crude oil, labour cost and all other costs that go into it, as they are priced in dollars. “So, by the time you bring it to Nigeria and ask us to pay in naira which has been devalued, by the time you factor in the 25 per cent devaluation of the naira, you will have to pay more.” The PENGASSAN boss further stated that the landing cost which had increased was solely determined by the Federal Government and was paid in naira; hence, it ought not to have been reviewed upwards. “For us, this is not the best time. If as a government you have devalued your currency and you are making 25 per cent excess on top of your currency, which is fine, then, you have more money to pay workers and meet your naira need, it is fine. “But again, you are telling us that the landing cost has increased in naira. Not necessarily in dollars, and you are also passing that unto the

to avoid worsening the country’s unemployment situation, with the sack of their staff. He advocated replacing PEF with the Petroleum Infrastructure Fund, PIF, while he stated that the PPPRA, lacking in commercial regulation, would be difficult to function in a deregulated sector. He said: “The PEF helps equalise petrol price across the country, because we had sought to provide a uniform price of petrol across the country. It is an agency that collects and disburses equalization funds. Under a fully deregulated market, the promise of a uniform price across the country is eliminated. Even under the equalization price, petrol was not sold at a uniform price.

“I can tell you that today, Nigerians are facing hardship. I believe that 2012 was a bit better than it is today because the pandemic has ravaged the average household in Nigeria. You have seen the recent figures from the National Bureau of Statistics. We are actually in negative Gross Domestic Product. By the next quarter, we could be in recession. This is not the right time to have done this,” Osifo noted. Furthermore, apart from price changes, the deregulation policy has also thrown up a number of other issues, such as the role of some government agencies, going forward. Specifically, immediate past President of the Society of Petroleum Engineers (SPE), Mr. Joe Nwakwue, called on the Federal Government to immediately find new roles for the Petroleum Equalisation Fund (PEF) and the Petroleum Products Pricing Regulatory Agency (PPPRA), stating that the downstream petroleum sector regulators would become redundant and irrelevant under the current policy of deregulation. Speaking in Abuja, at a capacity building workshop on the Petroleum Industry Bill, PIB, Nwakwue, however, c autioned against outright scrapping of the agencies,

Mr. Joe Nwakwue

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“The notion that we were equalizing price was never feasible and not right. I lived in Eket for five years, there was no day that the price was uniform in Eket with other parts of Nigeria. The existing model of equalization has failed;

then one would ask, why would one want to keep an institution that had failed in its duties? “If we deregulate fully, there is no promise of uniform price, which also means there is no

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COVER STORY is no need for price equalization, ensuring that the body should be shut down and used for another purpose.

“

“I suggest PEF be restructured to an infrastructure fund that would identify commercially viable and feasible private sector project, invest and take equity stake in them, like the Sovereign Wealth Fund, SWF. “FG would not have had any need to go borrow $2.8 billion to build AKK; it would have partnered with some investment consortia and the infrastructure fund to provide the funding for that project. The essence of transitioning it to infrastructure fund is so as not to dismiss its staff. “What has PPPRA been doing since 2015 that Premium Motor Spirit price had been fixed at N145 per litre. However, shutting them down would create an unemployment and labour crisis; so, they need to be repurposed.”

In addition to the issue of structure and appearance, there are still complaints by some operators in the downstream sector of uncertainty and lack of clarity in government’s stance concerning the deregulation policy. Specifically, National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, disclosed that the decision of the marketers to hands off fuel import stemmed from the uncertainty, policy inconsistency and lack of clarity of governments’ plans and programmes for the downstream sector. He argued that once the deregulation is properly outlined and the rules of engagement brought out, its members, comprising major and independent marketers, as well as depot owners, are ready to commence fuel import. He said: “We can import products. Marketers, depot owners, they are all ready to get into the business and make it beneficial.

He said:

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The fully deregulated market option is our best bet. “The notion that should happen is the regulation of quality and quantity, not price. People should be served the right quantity of products paid for and the quality sought.” 38

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He also stated that currently,

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there is the absence of a level playing field in accessing foreign exchange, and government’s failure to develop a clear policy on modalities by which oil marketers can access dollars from the Central Bank of Nigeria (CBN). In particular, he claims that in several meetings between oil marketers and the Ministry of Petroleum Resources, the government officials would claim to have issued directives to the CBN to make foreign exchange available to marketers at certain rates, when importing fuel, noting, however, that on approaching the CBN, the marketers would be told they are not aware of such deal.

He further stated that the Federal Government should completely do away with the temptation to resume fixing of fuel price, stating that government should instead be concerned with regulation of the sector.

“We should do away with fixing prices; let the market determine the prices. Attempt should not be made to regulate the prices, market forces should be allowed to fix the prices.

“In reality, there is no way any marketer, retail outlet owners, or tanker and depot owners, would invest in a business where they cannot be certain that they would make profit. It helps when the government clearly defines the guidelines of the full deregulation. Even if it is the partial deregulation that had already given us some level of authority to play in, without being able to import our own products, we have to know exactly what the rules are.”

Dr. Billy Gillis-Harry

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But you cannot invest money in a business that you are going to lose. There is no deregulation that the government cannot still regulate some part of it. So why delay?

The oil marketers claimed that they are willing and ready to immediately resume fuel import, but access to foreign exchange and lack of enabling laws and guidelines backing the pronouncement of deregulation would continue to deter them from importing. Gillis-Harry said, “We, as Nigerians, have only one guaranteed and legal source of getting funds for international trade transactions of any kind, and that is only from the Central Bank of Nigeria (CBN).

COVER STORY “One of the things we have canvassed at PETROAN is that all FOREX allocations for any of our transactions should be on a level playing ground. Nobody should access dollar at a privileged price above the other. “Whether, it is Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products M a r ke te r s A s s o c ia ti o n of Nige ria (DA PPM A ); Independent Petroleum Marketers Association of Nigeria (IPMAN) or PETROAN, we should all have access to dollar at the same price. That way, the market would be properly defined by market forces.” He maintained that oil marketers were fully in support of deregulation; noting, however, that they want the government to do the right thing to ensure that the rules are properly spelt out and policies are clear enough to enable oil marketers understand government’s plans and roadmap, to enable them know what to do at any given time. In addition, issues surrounding the legality of the policy were also called to question. Particularly, an energy expert and Senior Partner, Energy & Commercial Contracts, Primera Africa Legal, Mr. Israel Aye, noted that while it was within the powers of the Minister of Petroleum or his delegate to remove under-recovery on petroleum products, especially as it was in line with the oil and gas

policies, until the Petroleum Ac t was amended, the government could not have been said to have deregulated the downstream petroleum sector.

“We need a framework that shows how the pricing template was arrived at, the intervals of the price modulation adjustments, whether monthly, quarterly, weekly or daily.

He said: “The bedrock of the regulation of the downstream and petroleum product price control is Section 6(1) of the Petroleum Act. Until we change the law, the minister may hardwire the removal of subsidies and formally replace it with the Price Modulation template (2015), assuring bulk importers that they can sell at cost-reflective prices subject to price regulation mechanisms prescribed in the regulation.

“There must be an agency l e g a ll y e m p o w e re d to handle the responsibility of modulation of petroleum products prices in the country outside the NNPC, which should be allowed to face its responsibility of handling the operations side of the business. “We must demand an open and transparent process to handle all the issues in the price modulation value chain to remove arbitrariness and exploitation.” He, however, explained that the much-needed reforms of the Nigerian petroleum industry would be achieved by the passage of the Petroleum Industry Bill (PIB).

Mr. Israel Aye

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“In order to deregulate the downstream sector, we need to amend or expunge Section 6(1) as it is currently written. We need a framework that prescribes the role and responsibilities of each institution taking decisions at every point in the petroleum producing pricing process.

H o w e v e r, d e s p i te t h e controversies and false starts, it appears the Federal Government is bent on continuing with the policy and Nigerians, despite the pains, are hoping that the policy benefits them in the medium to long term. It is hoped that the policy would bring all the advantages promised by the government, such as grow Nigeria’s refining capacity, force down the price of petroleum products, release funds hitherto used for subsidy on other project and speed up Nigeria’s economic growth and development.

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POWER

PPI to Invest in Infrastructure Upgrades By Mordi Chukwunonso regarding the project. ‘’the project will be implemented in three phases and the federal government is to provide 15 percent counterpart funding as its contribution towards the project. We have a provision in the 2020 appropriation revised for the government’s counterpart funding.

he presidential power initiative (PPI), also known as the Siemens Project, will invest in infrastructure in the form of improved payment systems, distribution substations, transformers, protection devices, smart meters and transmission lines among others, on behalf of the other shareholders in Electricity Distribution Companies (DisCos). President Muhammadu Buhari approved the release of funding, 15,21million euros and N1.708 billion, for the first phase of the PPI, to kick-off the pre-engineering and concession financing work streams, which Nigerian companies will take part in the site surveys & soil investigation Civil works, supply of smart meters, data center hosting and power system modelling. The approval was a sequel to the 2018 deal between Nigeria and Siemens AG of Germany followed the agreement signed between the two parties. This was disclosed by one of the media aides of President Muhammadu Buhari, Tolu Ogunlesi via his twitter handle. According to him, this Phase 1 of the PPI includes projects in transmission, distribution, metering, simulation and training.

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‘’This phase 1 focused on ‘’quick-win’’ measures to increase the end-toend operational capacity of Nigeria’s electricity grid to 7GW. Transmission projects proposed under Phase 1 include 132/33 kV Mobile Substations; 132/33 kV (60 MVA) transformers and containerized GIS Substations. ‘’ T h e re w ill b e sig ni f ic a nt opportunities for local content on this project; for Nigerian companies to take part in the site surveys & soil investigation civil works, supply of smart meters, Data center hosting, power system modelling,’’ he added. The minister of finance, budget and national planning, Mrs Zainab Ahmed also said the funding for the first phase of the project would be used to finance 23 transmission initiatives and 175 separate transformative projects. according to her, The funding for the PPI will be secured under concessionary terms (up to 3 years moratorium and 12 year repayment at concessionary interest rates) through the German Euler Hermes cover, which Nigeria will lend as a convertible loan to the other shareholders in the Discos and all Discos have, directly and through the BPE, been diligently carried along

‘’ The federal government is taking the loan from the German government with the plan to unlend this particular loan to the distributing network. So it is a convertible loan facility to the Discos to restructure an appropriate loan agreement as soon as we are able to close out on this initial phase of the process and council approved and ratified Mr President’s approval’’. She added that ‘’the project would support the operations of the Nigerian electricity regulatory commission (NERC to transit towards a programme of improving metering in the electricity industry in the country’’. Onyeche Tifase, Managing Director Siemens Nigeria, said the phase 2 will target the remaining network bottlenecks to enable full use of existing generation and distribution capacities, bringing the systems operational capacity to 11,000 MW. ‘’Phase 3 will develop the system up to 25,000 Mw in the long term. This includes upgrades and expansions in both generation, transmission and distribution’’ Siemens will begin pre-engineering works for the transmission, distribution and meter data management systems (MDMS) infrastructure across the country, to enable the development of a functional, efficient and reliable electricity grid system. Comprehensive studies and power system analysis software for the Nigerian utilities are also included. The goal of the presidential power initiative is to increase the operational capacity of the national grid in three phases to achieve a capacity of 25,000 MW in the long term from its current capacity of 5GW.

POWER

NERC Seeks Same Regulatory Power as CBN, NCC By Mordi Chukwunonso Esther

they receive. Unhappy? Contest the band classifications you have been assigned’’ He said in order to protect unmetered customers from exploitation by the DisCos, NERC came up with ‘’Parity with Neighbours’’

he Nigerian Electricity Regulatory Power has called for the same regulator y power as Central bank of Nigeria (CBN), Nigerian Communications Commission (NCC) to decisively handle the challenges in the Nigeria’s power industry. This was revealed by NERC’s Commissioner of Legal Licensing and compliance, Mr. Dafe Akpeneye during an online town hall meeting, monitored by Nigerian News direct, with customers on the new servicebased electricity tariff on Friday 11th September. Mr Dafe said the commission has spoken with the Senate and House committee on Power to put it in same regulatory power as CBN and NCC and he also made clarifications on myriads of issues raised by electricity consumers. The commission mandated DisCos to put consumers on a particular band range, stating that all billing should be based on the Cap. He emphasized that where this is not done, customers should raise issues to the commission for quick action.

NERC insisted that electricity distribution companies (DisCos) must not increase tariffs of customers enjoying less than 12 hours daily power supply daily. This was after they had announced the application of the new service based tariff (SBT) on September 1. The DisCos said the classes of customers had been grouped into five bands with bands D and E who were not enjoying 12 hours daily power supply not affected by the new tariff plan. Akpeneye who was responding to claims by some costumers that the DisCos were not following the increment terms, insisted that those below 12 hours supply daily should not experience any increase. He explained that the hours and bands were decided by the commission after consultations but costumers were assigned to bands by the DisCos. ‘’Anyone who is enjoying less than 12 hours of electricity must not have their tariffs increased. Customers who receive electricity service below the band they have been assigned can have the DisCos move them to the actual band of electricity

‘This is the principle we are applying with unmetered customers. It basically means as an unmetered customer, you cannot be charged more than your metered Neighbour’’, he said. Abdulrazaq Jibril, a consumer who resides in Abuja said during the meeting ‘’we do not have problem with the electricity hike but a situation where Abuja Electricity Distribution Company (AEDC), Lugbe office will be keeping us in darkness every day in guise of fault is unacceptable’’ Another electricity customer, known as Prophet Edmond said ‘’Give us meters or cap all unmetered customers, DisCos can’t be imposing unnecessary bills on us’’ Akpeneye responded to the complaints revealing that NERC had mandated all DisCos to invest massively in electricity infrastructure in order to increase power supply to customers. In his closing words, Dafe noted that the commission will work to have more of the session to actively engage customers on prevailing electricity related challenges.

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ENERGY WOMAN

“The Oil and Gas Sector Remains One of The Least Gender-Diverse, With Sparse Female Representation in Technical and Field Roles” -Funmi Ogbue, President/ Co-Founder WIEN

Funmi Ogbue, the co-founder of WIEN (Women in Energy Network) has built successful structures on which her organizations have thrived in the consulting, oil and Gas, defence and development sectors. She has demonstrated the importance of female leadership in a country where 50% of the population are women who are largely underemployed. She has grown her organizations by 100% year on year from inception. Funmi who holds an MSc from the University of Manchester is the MD of Zigma, a company focused

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on oil and gas services, providing soil remediation and engineering, procurement and construction services. She is also founder of Jake Riley with its focus on public sector transformation; Libra Security which provides security services and; Support our Troops Foundation (SIOT) an NGO supporting the military troops and their families. Here are excerpts from her interview with Margaret Okojokwu Tell us something we don’t know about yourself

Not too many people know that I have a military background. I am the second child and first daughter of retired colonel Olusegun Oladeinde who passed on in June this year (May his soul rest in peace). I have four siblings: two brothers and two sisters. Growing up in a military family meant that we frequently moved from one military barrack to the other all over Nigeria (Makurdi, Enugu, Kaduna, Zaria, Lagos and Ado-Ekiti) and in Alabama United States as well as Aldershot UK whilst my military police father was serving in the Nigerian Army.

ENERGY WOMAN I was educated by all arms of the military starting from Army Children school, Airforce Primary school and Navy Secondary Schools. However, after my secondary education, I came into civilian life and attended the University of Lagos where I obtained a Bachelor of Science degree in Sociology between 1988 and 1992. Thereafter I attended the University of Manchester for a Master of Science (M.Sc.) degree in Organisational Change and Development in 2005. I have worked in the local and international landscape garnering experience largely in FMCG, International Development, Consulting, oil &gas and power industries. I held roles as Managing Partner of Ancorapoint, an organisational development and strategic marketing firm, then as Human Resources Director at British American Tobacco, and senior HR positions in multi-national companies such as Royal Dutch Shell, Canadian Occidental Petroleum, Mercer Consulting in the UK as well as Ibadan Electricity Distribution Company Limited (IBEDC). I started my own company, Jake Riley Limited in 2015 as a Public Sector focused People and Process consulting firm that uses Technology and Organizational Development to facilitate change in public sector organizations. The company is a Microsoft and Oracle Partner with presence in London, Lagos, Abuja and Port Harcourt. I started Zigma earlier in 2002 but didn’t begin operations until later. The company which began as an oil and gas service company is now investing in Exploration and Production (E&P). In 2020, I co-founded the Women in Energy Network (WIEN), to among other objectives, serve as a pipeline through which women with capacity could attain leadership positions.

The Nigerian Oil and Gas O p p or tu nit y Fair (NO GOF) organised by the NCDMB and managed by your company, Jake Riley in 2019, was a huge success based on feedback from the industry. How did you pull it off? For the benefit of those who are just hearing about Nigerian Oil and Gas Fair (NOGOF) for the first time, NOGOF was conceived in 2017 by the Nigerian Content Development and Monitoring Board (NCDMB) as a biennial fair to bring together major players across the upstream, midstream and downstream sectors as well as the government agencies and industry regulators, to showcase opportunities in the Nigerian Oil and Gas industry and present available in-country capacity. NOGOF 2019 which was the second edition was contracted to Jake Riley to organise. The theme of that 2nd edition was “Maximizing Investments in the Nigerian Oil and Gas for the Benefit of the Nigerian People,” and it was held at the new NCDMB Headquarters, Oxbow Lake, Yenogoa, Bayelsa, Nigeria on the 4th and 5th of April, 2019. In organizing the conference, we designed NOGOF 2019 to have a nice blend of hard and soft issues. There were technical sessions that addressed pertinent issues, networking sessions to connect with industry colleagues and more importantly, awards were given to recognize companies that have contributed to the development of local content in the country. The 2 days conference started with a welcome barbecue, 13 opportunity presentations, 7 insightful panel sessions, 98 exhibiting companies and awards ceremony. NOGOF 2019 attracted over 1,500 participants; delegates, exhibitors, speakers, and media. We were able to attract sponsors from industry heavyweights like NNPC, Samsung Heavy Industries Nigeria, Dangote Group, Marine

Platforms Limited, Aiteo, Shell, Agip, OES/ODENL Energy, UBA Group, Exxon Mobil and others. We also did something unique with the launch of the Compendium of Nigerian Content Opportunities which was circulated to all delegates. That compendium till today still serves as a useful reference document for strategy development and the memories of NOGOF 2019. The compendium contains projects and opportunities that covers the oil sector value chain and was designed to provide a database of Nigerian content opportunities to help indigenous and potential investors prepare, improve their capacities to participate in available and upcoming projects. I would say that NOGOF 2019 was a success in all ramification because Jake Riley identified and utilised the best resources locally and internationally to put the event together. Additionally, at the heart of what we do at Jake Riley is Project Management. Its core to everything we do. We follow a structured methodology and pay attention to details, so this ensures that our projects tend to always get executed successfully. What should we expect of the next NOGOF? The next Nigerian Oil and Gas Opportunity Fair (NOGOF) is slated for 8th-9thApril, 2021. The industry should expect that NOGOF 2021 will surpass that of 2019. Stakeholders should expect an expanded plethora of opportunities for indigenous companies to operate in the oil and gas sector. More opportunities starting from logistics, repair and maintenance, engineering, spare part and servicing among others. In organising the conference, we hope to incorporate a lot of lessons that have been learnt in the last one year, the most outstanding one being the impact of COVID-19 on our sector.

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ENERGY WOMAN You are the Co-founder of the Women In Energy Network (WIEN). What inspired the vision? When I was in Shell I was head of Change Management, Diversity and Inclusiveness and at the heart of D&I in Shell Nigeria Exploration and Production so I have always been aware of the importance diversity and core to the work I did then was a strong focus on gender diversity. It was my job at the time to help Shell leadership look at policies from a D&I lens, ensure employees felt included and the organisation got the best out of every people asset it had. So, it is a topic I have had much education and experience in, not from an affirmative action perspective but more from a value realisation lens. Meanwhile, at the time I didn’t belong to any feminine groups as I felt quite comfortable in a man’s world and always felt I would win by competing and being quite good at whatever I was called to do; I always felt the reward for good work was more work and that was what I always focused on, and more importantly the organisations I worked for realised the importance of diversity and did all they could to make it work. However, in the last few years my eyes have really opened to the fact that it is not really the case on an industry wide basis. There really are not enough women who are financially secure and in senior positions in our industry. I have joined WE Connect International, Women’s President Organisation and started to become a keen advocate to increase the participation of women in the industry. So, together with some industry players we founded Women in Energy Network (WIEN) to provide a platform for women that work across the energy sector value chain; to network, develop, collaborate and advocate for increased women participation.

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WIEN is a network of highly accomplished women across the entire energy value chain with the willingness and capacity to support Nigeria’s vision to deliver power, energy and prosperity to the citizenry. 44

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One of the causes that we are passionate about is “Closing the Nigerian Energy Gap” and our vision is to become the leading Women’s Association that advances women’s participation and leadership across the energy value chain.

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Our mission is helping women emerge as leaders in the field of energy, ensure they have the required capabilities to win projects, have access to funding opportunities and use the most technologically advanced methods in all that they do.

Our key pillars of focus include but are not limited to the following; Identifying projects and initiatives that will close the energy gap; S p otlig htin g wo m e n ow n e d businesses and women in leadership; Providing a pipeline through which women with capacity could earn leadership positions and Supporting education of the girl child in STEM subjects. Interesting. So how is the network faring presently and what should we expect to see in the future?

Since January when we were founded, we have not relented in pursuing our vision. We set the ball rolling with a Breakfast Session as part of activities to commemorate the 2020 International Women’s Day. Following that, we were hosted by the Minister of State for Petroleum Resources, the Group Managing Director of state-owned oil group, NNPC as well as key officials of the federal legislature. Our efforts through advocacy visits to key decision makers have started yielding results as all these state actors we engaged, have committed to encouraging greater women’s participation in the energy sector and partnering to support our future programmes. To cushion the effect of the COVID-19 lockdown and maximise the opportunities brought by the pandemic,

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WIEN has been doing a lot collectively and individually to join hands with the Nigerian government to deal with the COVID-19 pandemic. WIEN have donated test kits and lab equipment that will boost the testing capabilities of our health institutions. Our members through their individual companies are making donations in consignments of medical consumables, logistics facilities as well as providing free food items. So far, we have been partnering with non-profits, and the private sector to create sustainable solutions and inspire change. We are proud to highlight women stories and projects that are making a difference and creating opportunities for more women in the sector. Also, in recent times, we have been hosting webinars and virtual events to provide our members with networking, educational, and leadership opportunities. Over the next few years, WIEN expects to impact thousands of female entrepreneurs in the country.

collaborate with the Diversity SWG of NCCF? If yes, to what extent? Of course, yes. Like I said earlier we have been partnering and are open to more partnership with the federal, state as well as local governments and non-profits in aspect of finding sustainable solutions to some of the challenges that women entrepreneurs encounter in their businesses. Collaboration in the area of training, financial empowerment, tax exemptions among others. That is why we are so much pleased with the inauguration of the Diversity Stakeholder Working Group by the Nigerian Content Development and Monitoring Board (NCDMB) as well as a Fund that will be dedicated for women business owners in oil and gas sector. Members of the Diversity SWG are made up of companies represented by women. If you scan through the list of the women, you will find that majority of them are WIEN members. You have in the SWG women like Audrey Joe-Ezigbo, Alero Onosode, Patricia Simon Hart and Pricilla Thorpe-Monclus who are key members of WIEN. The Diversity SWG seeks to improve women participation in the oil and gas industry and promote all-inclusive gender policies, so we have conveyed our deepest appreciation to the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote for approving the addition of the Diversity SWG to the Nigerian Content Consultative Forum (NCCF), where the interests of all practitioners in the oil and gas sector are represented. For us at WIEN, the creation of the Diversity SWG not only represents the interest of women in the oil and gas sector but recognizes the importance of diversity to the sector.

The oil industry is highly technical. What ways do you think we can attract greater women participation in core technical activities of the industry?

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ENERGY WOMAN

A major step that can be taken to attract women participation in a sector as technical as the oil and gas is the implementation of deliberate policies that will improve the girl child access to education, especially in STEM.

It is obvious that women are underrepresented in the roles that are growing the fastest – notably STEM. Additionally, as we begin to have more women at the top and we promote their achievements, you create positive imagery at the top, which in turn pull the younger people in. Everyone likes to follow success so the importance of role models cannot be overemphasised. The oil and gas sector remains one of the least gender-diverse, with sparse female representation in technical and field roles. Women currently represent a fraction of the oil industry’s workforce and are even scarcer in engineering and other technical fields that are the lifeblood of the sector. If you narrow that down, you find that women constitute less than 20% of the workforce in Nigeria’s oil and gas and even smaller percentage in terms of women CEOs. If we don’t intervene, the imbalance will accelerate further. Another way I think women can be brought to the fore, is to give them more opportunities in the sector especially those that are very challenging. The single most powerful thing the sector can do is to consciously promote more women to the top whether in private or public institutions.

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More women should be promoted to leadership positions in the sector where their authority and influence can have a substantial impact on the industry’s future.

Are there plans for WIEN to

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ENERGY WOMAN There should be an increasing number of women working on the rigs, at the refineries and more significantly, in the exploration and production (upstream) space. Government at all levels must promote women leadership in the sector by appointing more women as heads of agencies, parastatals and institutions at sectional, regional and international levels. The few women that are top of the industry today have been outstanding and that way they become role models to those intending to come into the industry. If the many barriers to entry in this so-called technical sector for women is removed, it broadens the space for job creation and community development Your company was one of the beneficiaries of the Project 100 initiative by the Ministry of Petroleum Resources, it speaks a lot to your level of professionalism as KPMG managed the process. Tell us about your process and how the P100 is playing out. Project 100 as you are aware was conceived in 2017 by the Federal Ministry of Petroleum Resources in collaboration with the NCDMB to identify 100 indigenous oil and gas companies and support them through special interventions to facilitate their incubation, maturation and growth into world class service companies. The first phase began in January 2019 and 60 companies were selected. We are pleased that one of our companies, Zigma Ltd. was selected out of a rigorous process through KPMG that evaluated over 8000 companies.

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These sixty companies that are currently Project 100 beneficiary companies including Zigma, presently contribute over N50 billion to Nigeria’s Gross Domestic Product (GDP) as well as account for 1,500 direct and 15,000 indirect employees in the oil sector. Majorwaves Energy Report

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So far, there is a Project 100 beneficiary companies’ executive committee which I currently chair. We interface regularly with the NCDMB through this platform on emerging challenges and opportunities for P100 companies. We recently had a virtual meeting with the Board where we made some recommendations for the continued success of P100 companies post COVID-19. We made a case for the creation of a platform for P100 Companies for the purpose of engagement, collaboration and continuous development within the industry and the NCDMB, a platform that would further help to drive the much-needed access to market for P100 Companies. We appealed to the NCDMB to facilitate valuable introduction and access of P100 Companies to owners of major projects such as NLNG Train 7 project, AKK, and to other major IOCs (Chevron, Exxon, NOCs etc) projects. We also asked the Board for P100 Companies to be introduced to marginal field operators for project consideration, this will further drive the P100 imperatives and its sustainability. We are deeply appreciative of the NCDMB’s Executive Secretary Engr. Simbi Wabote for considering some of our requests to cushion the impact of COVID-19 on our members. Tell us about your pet project, SOT. Where did that come from? Well, growing up in the barracks exposed me to the several challenges that military families face.

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Support Our Troops (SOT) foundation is my way of giving back and supporting the military families. SOT is the first-of-its-kind charity organization in Nigeria I set up to essentially help to call attention to the plight of soldiers in the frontline, their widows and orphaned children.

SOT has been working with military establishments to draw attention to the sacrifices of soldiers and their families as well as provide support for the Nigerian military. It is endorsed by the Ministry of Defence and works closely with the Nigerian Armed Forces. Since inception SOT has donated thousands of computers to schools, more than 1000 school supplies consisting of school bags, pens, erasers, rulers and books to orphans. We have donated morale boosting kits for deployed troops in North East Nigeria and also provide morale boosting care packs to members of the armed forces on front lines during festive periods. We have also donated over 10,000 care packs made up of toothbrushes, toothpastes, milk, sugar, slippers, bathing soaps, washing soaps, chocolate drinks, Nigerian Hero t-shirts and bags to troops. We make End of Year donations to widows, cash and fabric donations to enable them provide Christmas meals to their families. We organized and sponsored a public lecture at the beginning of 2020 in commemoration of the Armed Forces Remembrance Day. As I speak with you,

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SOT in collaboration with African Union, is developing a Military Family Housing Scheme to provide affordable housing options to military families and free housing to military widows.

The unveiling of the housing scheme for widows of late military personnel will take place soon. That’s really amazing to know. Let’s talk about the current trend in the country, that’s referring to the recent deregulation of the downstream sector, what is your take on this? Recall that the federal government had in March this year announced

ENERGY WOMAN automatically result in inflation. However, I think this will be the period of temporary discomfort that Nigerians may have to go through. On the other hand,

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I am in total support of the federal government’s decision not to back down on deregulation of the sector.

government must ensure that it channels the savings from the removal of subsidy to other productive and infrastructural development projects that will cushion the impact of the removal of subsidy on PMS on the average Nigerian. Give your opinion on the general outlook of the oil and gas industry and what you expect to change?

the deregulation of the downstream oil sector. At that time the price of crude oil in the international market had crashed due to the impact of COVID 19. The fall in crude price also translated to a corresponding decline in the pump price of the Premium Motor Spirit also known as petrol. The government had to take the opportunity presented by COVID 19 to hands off subsidy on PMS while the PPPRA continued the pricing modulation of petroleum products to protect the interest of consumers. However, with the rebound in crude oil price, the government found itself in a very tight situation- whether to go back to the subsidy or stick to

deregulation of the downstream sector.

The impact of the spread of the coronavirus on the global oil sector has been particularly severe than on any other industry. Nigeria, a major exporter of crude oil, has been unfortunately caught in the midst of the unfolding consequences of Covid-19. The drop in the price of crude oil in the international market has taken a heavy toll on the nation’s economy hitting foreign exchange earnings. It was that bad that countries were selling their crude at a loss.

With falling prices, lower oil sales, steeping government revenue and decline in investment as well as business opportunities in the sector, the outlook is no doubt dire. Narrowing it further down, you will notice that for a long while, there has I am in total support of been a very low level of activity in the Oil and Gas Industry in Nigeria the federal government’s because there are no major projects decision not to back down on going on due to a combination of the deregulation of the sector. factors I mentioned earlier. Although the outlook was beginning to look up as Nigeria LNG Train 7 took Final Understandably, this development Investment Decision (FID) and we has or will lead to increase in prices were expecting Bonga SW to take of goods and services and will FID, however with the current oil Majorwaves Energy Report 47 My take is that since the consensus is that subsidy on petroleum product has cost the country enormously in terms of financial resources and high corruption,

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MARITIME

ENERGY WOMAN price everything has slowed down again. Another issue for me is the length of time it takes to run the procurement process in the sector in Nigeria. If you do complete the tender and you win it, it can take up to years to complete the delivery cycle and then you are paid at which point the cost of funds has eaten up all your margin. We can’t survive very long with this situation and with the high level of investment required in the sector. it’s a major disaster waiting to happen. I really hope government will look into providing some sort of relief so our businesses can survive. What is the Nigeria of your dreams?

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I look forward to a Nigeria where the balance of power tips significantly away from government officials, political office holders and law makers who are in charge of our common wealth to the citizenry so there is more accountability and transparency in the manner in which our affairs are managed

and most importantly where every single policy, project and initiative is done 100% to the benefit of Nigerians. Then and only then will our country truly be one that exists to protect and serve its citizenry today and for years to come.

Crude Affreightment: NIMASA Revives Move to Change Terms of Trade Daniel Terungwa

he Nigerian Maritime Administration and Safety Agency (NIMASA) has reinforced efforts to change the Terms of Trade for the affreightment of Nigerian crude oil from Free on Board (FOB) to Cost Insurance and Freight (CIF).

This was made known by the Director-General of NIMASA, Dr Bashir Jamoh when he received a delegation from the Nigerian National Petroleum Corporation (NNPC) led by the newly appointed Group General Manager, Crude Oil Marketing Division, NNPC, Sir Billy Okoye. Jamoh, on behalf of NIMASA, appreciated NNPC Group for accommodating the Agency’s interests in transactions where the maritime regulator relied on data from the national oil company. The Director General stated that, “Since 2018, NIMASA has championed move for a change in the Terms of Trade with regards to transportation of Nigerian crude oil, from FOB to CIF to ensure greater benefits for the country from its oil resources. “A technical committee involving NIMASA, NNPC and other stakeholders would be set up to develop a template for the desired change, with workable timelines,” he said. He commended the synergy between NIMASA and NNPC Group, noting that 70% of the agency’s revenue comes from sale of crude. The DG revealed that the Maritime Intelligence Unit recently established by the Agency is part of efforts to ensure a proactive approach to security in waters that belong to Nigeria. Sir Billy Okoye, in his speech, declared that NIMASA was a “critical stakeholder in the business of crude oil sale.” He said his goal was to get the two agencies of government interfacing more closely with each other to resolve challenges and ensure seamless movement of crude and petroleum products in the country.

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MARITIME

Lagos State Government Bans Barge Operations along Marina Coastline, as Ports Authority Revoke Approvals

he Federal Government, in conjunction with Lagos State Government, on Tuesday ordered the stoppage of all such operations, which have desecrated the once beautiful and peaceful Marina coastline. The Nigerian Ports Authority (NPA) is to revoke barge approvals granted some companies operating in Lagos. The Minister of Transportation, Hon. Rotimi Amaechi, and the Lagos State Governor, Mr. Babajide Sanwo-Olu, who defied the early morning downpour to inspect the activities around the Marina coastline, made the stop-work order during an unscheduled visit to the Marina. They went round the coastline, seeing the long row of trucks and containers that have constituted health and security hazards on the Marina. Amaechi and SanwoOlu kept on shaking their heads on seeing the devastation of the coastline that used to be the pride

of the state, attracting crowds of visitors. Amaechi and Sanwo-Olu found the “unwholesome” activities on the coastline “shocking” and “unacceptable”.

those using the roads and we have agreed with NPA to cancel all barge permits pending when each person will come back to NPA, NIWA and Lagos State Government to renew such approval,” he said.

The Minister spoke of an urgent need to sanitise the entire Marina coastline and restore its tranquility and beauty.

Sanwo-Olu directed the Lagos State Commissioner of Police to arrest and prosecute anyone who flouts the order to stop ”unauthorized activities” on the Marina.

He ordered that trucks must immediately stop coming to Marina to load.

He said the State Government would do everything the to bring sanity to the coastline.

Amechi said the National Inland Waterways Authority (NIWA) did not grant anyone the permission to carry out barging operations, insisting that all such activities must stop immediately.

“We are also talking to the Federal Ministry of Works and Housing because we understand that some of the approvals were from the Federal Ministry of Works. So, we are also taking up that responsibility and we would do what we need do,” the governor said.

“The Federal Ministry of Transport has agreed with Lagos State Government to ensure that whoever is making use of Marina coastline should stop. We have agreed with Commissioner of Police to stop

Also at the inspection were the Managing Director of NPA, Hadiza Bala Usman, representatives of NIWA, Ministries of Works and Waterfront as well as the Police.

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MARITIME

MAN to Obtain First Multifunctional Classroom Simulators in Africa By Mordi Chukwunonso Esther

he maritime Academy of Nigeria (MAN), has said it has obtained assurance from its Indian partners, ARI, that the first multifunctional classroom simulator that contains high voltage training software, rules of the road, DP, pilotage and blind pilotage fully integrated, would arrive in Nigeria by the end of September 2020. This was disclosed by the Rector of MAN, Duja Effedua in a briefing made available to Guardian. He explained that the present management has been able to refurbish the Academy’s equipment by acquiring three stateof-the-art simulators. The simulators include: the full mission bridge simulator, the full mission engine room simulator and the Multi-functional classroom simulator, which are the latest in marine training simulators and can sit up to 30 cadets in a work station. Effedua said: ‘’the multifunctional classroom has the ECDIS, GMDSS, Apar Radarm high voltage training

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software, rule of the road, pilotage, blind pilotage and the DP among others integrated into it. It is pertinent to state that the Academy is the only institution in Africa that has the Multifunctional classroom. On the 3rd of September, 2020, our partners, the ARI of India assured us that all the simulators will be in Nigeria by the end of September 2020, as soon as the embargo on international flights gets relaxed. ‘In order to avoid mistakes of the past, the Academy has trained 15 of its ICT staff as both users and maintainers at the manufacturers facilities in India. The ICT team was fully involved in the training as they can now assemble, dismantle as well as carry out repairs on the simulators. The Academy will therefore not need to fall back to the manufacturers for maintenance,’’ he said. In the area of training, the Rector said: ‘’Apart from cadets training, the Academy is also involved in the retraining/training of staff of the maritime industry. From January

2018 to March 2020, before the national lockdown, a total of 8,508 seafarers including participants for Certificate of Competence were successfully trained. The breakdown of the number of seafarers trained is as follows: number of certificate of competence participants is 1,707 while the number of Mandatory short courses participants stand at 6,801. ‘’The management has been able to buy publications and provide training materials such as free laptops for cadets. The classrooms are now smart classrooms equipped with smart boards and other electronic teaching aids, all air-conditioned. Our hostels are now en-suite. To further boost the quality of training, more lecturers have been engaged for all the schools including a foreign master mariner (Captain) from India and the Academy is looking forward to engaging more qualified international lecturers to support our Nigerian professionals’’, he said.

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ACROSS AFRICA

German Africa Business Forum Organizes Exclusive Webinar By Mordi Chukwunonso

he G ermany Africa b u sin e s s Fo r u m is organizing an exclusive webinar to encourage new deals between German and African public and private energy stakeholders on Thursday, 6th of August, 2020.

private energy stakeholders. This is an extremely timely initiative, Covid-19 has accelerated several major trends and dynamics within Africa’s energy sector which are set to significantly increase the demand for German capital and technology on the continent.

This was revealed in an article released by African energy chamber on Monday by the executive chairman at the African energy chamber, NJ Ayuk. He declared ‘’The African energy chamber is calling on Germany to work with African businesses to lower carbon emissions and support Africa’s path to a net zero future. From gas flaring to gas-topower and cleantech, Germany has the capital and technology Africa needs to build an inclusive and sustainable energy future’’.

‘’Energy has been identified by most African governments and financial institutions as a key sector able to support Africa’s economic recovery post Covid-19 in parallel, global trends toward a cleaner energy transition are now accelerating and Africa is no stranger to the game.

The article reads ‘’the Germany –Africa business forum(GABF) is organizing an exclusive webinar to encourage new deals between German and African public and 52

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The reshaping of the continent from 2021 onwards provides a great opportunity for German companies and technology to fight energy poverty in Africa and support the natural gas monetization and valorisation drive from Mozambique to Senegal, Nigeria and Equatorial Guinea.

‘’By engaging not only with African governments but with the continent’s entrepreneurs and private companies, German stakeholders can structure the deals who will ensure a successful future for the GermanAfrican energy cooperation. German technical knowhow and technology is increasingly looked after when it comes to assessing climate change risks and opportunities in business planning and supporting public policies embracing decarbonisation’’. NJ Ayuk concluded ‘’we need to foster a candid and constructive dialogue with a broad range of German and African stakeholders on investment, energy poverty, the creation of an enabling environment for private businesses and the implementation of free market policies that benefit the poor and emerging African middle class’’.

SUSTAINABILITY

Mitigating Farm Risks with Insurance as Climate Change Worsens But the break lasted for approximately two months, covering states in more than three geo-political zones of the federation, which indicated the effects of climate change on agriculture and food availability.

ulti-p eril insuran ce coverage for food and cash crop production has been identified as one of the ways to minimise losses of farmers and get them back to business, as farms are ravaged by droughts, floods, herders, and other disasters which have threatened food sufficiency and discouraged thousands of farmers. Cases of farm destruction by the flood have been reported in Taraba, Kebbi, and Benue states in the last few weeks, where grains were submerged, flushed away, and in some cases, lives were lost. In addition to flood, elongated ‘August break’ from July to early September, longer than the 25-day period predicted by the Nigerian Meteorological Agency (NiMet), has also dealt a devastating blow to crops and expected produce. Flooding has displaced more than 15,000 people in states like Kaduna, Katsina, Sokoto, Kebbi, Benue, Taraba, and Zamfara, where massive farm produce worth billions were said to have been lost. President Muhammadu Buhari has expressed concerns and made a promise to compensate farmers in Kebbi State in particular, farm and insurance professionals have advocated massive awareness of farmers about the benefits of taking insurance covers for their farms as business entities.

Publicity, Garba Shehu, had disclosed that: “With the loss of six lives and still counting, thousands of hectares of land flooded and estimated economic losses of more than N1 billion by rice farmers in Kebbi State, we face a major setback in our efforts to boost local food production.” He added: “I am particularly sad over this incident because it’s a setback to our efforts to boost local rice production as part of measures to stop food importation.” The 2020 Seasonal Rainfall Prediction (SRP) of NiMet early in the year predicted that “Severe dry spell that may last 10 to 18 days is predicted over Niger, Bauchi, Jigawa, Sokoto, Zamfara, Katsina, Kano, Kebbi, Yobe and Borno in the month of June.” It added that a moderate dry spell that might last eight to 12 days was expected around Yelwa, Bida, Minna, Zaria, Funtua, Lafia, Bauchi, Abuja, Gombe, and Yola in June 2020. NiMet forecast says: “In the year 2020, the severe effect of the little dry season is expected over the coast of Lagos, Ijebu-Ode, Ibadan, Akure, Shaki, Iseyin, Ilorin, and Ado Ekiti.” The length of days with relatively dry spells, the agency added, was expected to last between 10 and 25 days in places like Abeokuta, Osogbo, Shaki, Iseyin, and Ilorin, with more than 50% chance of occurrence while the coast of Lagos, Ikeja, Ibadan, Ijebu-Ode and Akure could have dry spells above 30 consecutive days in a worst-case scenario.

Sporadic farm destruction by itinerant herdsmen is still recorded in almost all the states of the federation, particularly in food crop production zones of north-central, among which are Taraba, Nasarawa, Benue, Kaduna, Plateau, and Niger states. Farmers have lost not only their products but also sometimes, their lives in clashes emanating from crop destruction. Mitigating losses with agro-insurance Based on its 2020 forecast released earlier, NiMet had warned that “farmers are advised to … adopt risk management techniques like insurance; adopt climate smart agriculture (improve productivity, build resilience and reduce emission) such as soil and water conservation, water harvesting techniques and supplementary irrigation during the dry spell.” The forecaster also urged authorities concerned to facilitate the provision of early maturing and droughtresistant varieties to guard against the risk of crop failure and poor yield, saying, “The use of weather climate information is encouraged throughout the agricultural value chain.” Also harping on insurance, Head of Agriculture, Leadway Assurance, Mr Ayo Fatona, advised farmers in the country to embrace multi-peril crop insurance policy following risk factors from man-made and natural disasters. The policy would ensure farms against the risks of physical loss or damage to crops caused directly by the perils such as fire, lightning, aircraft damage, windstorm damage, flood, an outbreak of pests and diseases, and drought. The standard coverage provided by the policy, he explained further, would pay for the production costs of crops that have been lost or damaged

Senior Special Assistant on Media and

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SUSTAINABILITY during the period from planting up to the maturity of the crop.

would compensate him for the market value of the crops that are lost or damaged during harvest.

For an additional premium, farmers may also purchase coverage extensions. An extension increases the coverage a farmer receives and

Explaining the premium rate for the standard coverage (without extensions), he said such ranges from

3.25% to 4.50% of the production costs. Source: Guardian

Nigeria to Participate in Agriculture Transformation Initiative - FAO FAO, however, assured commitment to support the country’s development through the initiative, innovation digitalisation of agriculture and called for a quick ratification and domestication of pending international legal instruments. According to the statement, the minister of Agriculture, Alhaji Sabo Nanono said the initiative was a good one and timely for the country to ensure food security and nutrition to all Nigerians. he Food and Agriculture Organisation of the United Nations (FAO) says Nigeria has expressed its interest to join the Hand- in-Hand initiative to accelerate agricultural transformation and sustainable rural development.

According to the statement, the Hand-in-Hand initiative was launched in 2019 by FAO’s Director General, Qu Dongyu, to support evidence-based, country-led and country-owned investments for eradicating poverty and ending hunger and all forms of malnutrition.

“ Despite the plethora of challenges that have threatened food security in the country, the current administration is focused on empowering the rural people through modern food and agricultural systems that emphasize a value chain approach to feed its people and create jobs,” he pointed out.

Mr David Tsokar, FAO National Communication Officer, made this known in a statement in Abuja.

“The initiative will help countries to develop independent investment plans to close food gaps, end malnutrition, support economic development and reduce environmental impac ts with concrete evidence.

The statement said that the minister directed that a letter expressing Nigeria’s interest to participate in the initiative be drafted immediately.

The statement said that the country was ready to join the other 20 countries currently involved in this new initiative. “There are incidents of floods in most parts of the country, where much of the food is produced, like we have in Kebbi state; we have also seen growing conflicts over land resources; “Yet many farmers still face challenges related to market access and these affect farming and food production. 54

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All of which will lead to the attainment of the Sustainable Development Goals particularly goals number one and two on poverty eradication and ending hunger,” The statement said that through the initiative, FAO would bring its technical expertise in all ares of its mandate, with emphasis on innovation and digital technologies.

He also nominated a focal point from the Ministry, to liaise with the FAO team and other Government experts from the National Bureau of Statistics (NBS) in assembling required data for analysis. Source: NAN

Majorwaves Energy Report SEPTEMBER 2020, Vol 3 No 9

Majorwaves Energy Report

SEPTEMBER 2020, Vol 3 No 9