October Edition

Finance

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Crude oil swap: Nigeria loses $966m in four years …Spends N4tr on subsidy payments in seven years

Oil rig KUNLE KALEJAYE

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he Federal Government lost $966 million in crude oil swap deals between 2009 and 2012, according to the Nigerian Extractive Industries Transparency Initiative, NEITI. Crude oil swap is an arrangement by the government through the Nigerian National Petroleum Corporation, NNPC, ?under which the nation's crude oil is traded for refine products to meet local fuel consumption.

Revealing this at a one-day forum on fuel subsidy in Lagos, NEITI's Director of Communications, Mr. Orji Ogbonnaya Orji, restated public concern that the objective of the arrangement has been compromised and abused to the extent that between 2009 and 2011, there was a loss of $866 million revenue from the process.

Orji explained that in 2012 alone, the cost of crude oil swapped was $6.4 billion while value of refined products returned to Nigeria

was $6.3 billion, leaving the nation with a revenue loss amounting to $100 million. ?He maintained that similar concerns were raised with subsidy payments, noting that NEITI's audit reports showed that total subsidy payments between 2006-2012 stood at N4 trillion. ?He said in 2006, N219.72 billion was spent on subsidy while payments for 2007 was N236.64 billion; 2008 (N360.18 billion), 2009 (N198.110 billion), 2010 (N416.45 billion), 2011 (N1.9

trillion) and 2012 (690 billion.

"The subsidy payments in 2012, N690 billion when compare to N1.9 trillion paid in 2011 shows a 29% reduction. This reduction may be due to the January 2012 national protest against oil subsidy", Mr. Orji said.

T h e N E I T I communications director stated that the transparency initiative audit also revealed that the Nigerian National

Petroleum Corporation, NNPC, had claimed that a total sum of N1.7 trillion was paid as subsidy between 2006-2012. ?"NNPC deducted these sum directly from domestic crude oil proceeds before remitting the balance to the Federation account.

"Subsidy deductions by NNPC increased by 110% from 198 billion in 2009 to N416 billion in 2010, and 89% in 2011 (N416 billion to N786 billion 89%).

"The increase between

Why govt exempted NNPC, power firms from TSA

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h e F e d e r a l Government says it exempted the Nigerian National Petroleum Corporation, NNPC, and twelve other Ministries, Departments and Agencies, MDAs, from the Treasury Single Account, TSA, initiated by President Muhammadu Buhari’s government to reduce corruption in public institutions because the

affected agencies are profitoriented government business entities that pay dividends to the Federal Government.

The MDAs exempted alongside NNPC include the Power Holding Company of Nigeria, Bank of Industry, Nigeria Railway Corporation, Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta

Power Holding Company /National Integrated Power Project, National Communication Satellite Limited, Galaxy Backbone Ltd, Ajaokuta Steel Company Ltd, Urban Development Bank, Nigerian Export-Import Bank and Transcorp Hilton Hotel.

The validation for this information came vide a

2009 and 2011 alone was 186% from N198 billion to N786 billion," he maintained. ?He stressed that government needed to conduct an in-depth investigation into the management of subsidy payments; ensure NNPC follows due process in the Petrol Subsidy Fund, PSF, scheme; deregulate the downstream sector; ensure refineries work to their full capacity; build new refineries; and gradually phase out oil subsidy.

circular from the AGF’s office to The Director, Central Bank of Nigeria, Banking and Payments System Department, r e f e r e n c e d FD/LP2015/C/ADC/20/1/ /DF dated September 14, 2015 and authored by M. K, Dikwa, for the Accountant- General of the Federation, Federal Ministry of Finance, Funds Department, Abuja.

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O

perators in the Nigerian power sector are lamenting what they described as the huge debts still owed gas producers and suppliers by owners of turbines, blaming the debts for the decline in the production of gas, and poor distribution channels, leading to instability in power generation.

According to Chief Executive Officer, Frontier Oil Limited, Thomas Dada, firms were owing gas producers and suppliers huge debts, a problem that has made it difficult for power generation companies, GENCOs, to access gas for production.

He stressed that gas supply was still a major problem in the industry, despite the relative improvement in power generation and supply in the country.

Dada cited poor gas distribution channels and low production as some of the problems in the industry.

He said: "If you ask the gas producers and suppliers how much they are being owed by owners of gas powered plants, they would tell you that it is a lot of money.

Given this scenario, one would realise that gas problems cut across stakeholders in the value chain.

"By this we can see the problem is from producers to suppliers to the power plants that could not access the product for production due to pipelines vandalism and other infrastructural problems.”

Also speaking, the Chief Executive Officer, Egbin Power Plant, Mr Dallas M. Peavey remarked that the relative improvement in power generation and supply in the country recently does not negate the challenge of adequate gas supply faced by producers.

He noted that Egbin plant has not been able to meet the required capacity because of gas, despite that it increased its electricity generation from 300 megawatts, MW, to 500MW. “People are saying that gas supply to the turbines has improved, ditto electricity generation, but nobody has been able to tell Nigerians the volumes or extent to which gas suppliers have supplied the product to the power plants.

"Egbin plant has an installed capacity of over 1,000MW. The plant has gone through rehabilitation in order to produce

Gas plant

Huge debts owed gas suppliers stifling power production —Operators optimally. Despite this, the plant is yet to meet its capacity. We need to prioritise the issue of gas to power in this country for the growth of the industry.”

A Director of Sahara Energy Group, owner of Egbin Power Plant and Ikeja Electric, James Ogungbemi, said the company, which has the capacity to distribute over 1000MW of electricity, is distributing less than 500MW due to gas.

He said stable electricity

Stable electricity supply would be a mirage, until power generation companies improve generation in the country

Uganda gets Shs 4.4bn to boost power

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h e A f r i c a n Development Bank, AfDB, has approved a $121 million (Shs 4.4 billion) loan and grant to Uganda to help improve access to electricity for rural households and businesses.

The money, approved on September 16, is expected to facilitate economic growth, improve livelihoods and allow access to social services in rural communities, AfDB said in a statement.

AfDB contributed $100m

while the additional €10.205 million grant was mobilized from the sustainable energy for all window of the EU-Africa Infrastructure Trust Fund.

AfDB will fund the Uganda Rural Electricity Access project, which will include the development of 1,147km of medium voltage and 808km of low voltage distribution networks.

The project is expected to connect to the grid about 58,206 rural households, 5,320 rural business centres and 1,474 rural public institutions.

AfDB said: “In addition, it will support the scaling-up of “inclusive and green” connections by supplying and installing ready-boards for those who cannot afford household wiring and allowing households to pay connection charges in installments… ” “The project financing plan also includes a component to support key sector institutions; namely, the Rural Electrification Agency (REA), in its ability to execute and monitor viable feasibility studies and social and environmental

supply would be a mirage, until power generation companies improve generation in the country.

He urged investors to invest in gas production and supply in order to meet the required needs of the turbines in Nigeria and further help in improving power supply.

Ogungbemi said when there are many gas investors in the sector, the issue of debt owed gas supply is going to reduced. assessments, as well as that of the Electricity Regulatory Authority (ERA) to conduct studies to determine appropriate tariff levels.”

Alex Rugamba, AfDB director of energy, environment and climate change department, said: “This project financed in partnership with the EU w i l l a d v a n c e implementation of the government-led, sectorwide approach in Uganda’s energy sector to drive economic development and improve livelihoods of rural Ugandans.”

Only 16 per cent of the population is connected to the national grid, with most of them living in urban areas. In its Vision 2040, government hopes to have 80 per cent of the population connected.

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NEITI seeks boost to funding, demands 5% of recovered monies

CBN headquarters, Abuja OSCARLINE ONWUEMENYI

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he Nigerian Extractive Industries Transparency Initiative, NEITI, is demanding modification to its existing laws that will allow it double civil money penalty on erring mining, oil and gas companies for providing falsified information regarding volumes of production, sales and income.

NEITI's Legal Director, Mr. Peter Ogbobine, who disclosed this in an overview of proposed adjustments to the NEITI Act 2007 at a round table in Abuja, described as inadequate the limitation of civil sanction to only about N20 million given the value of transactions involved in the oil and gas industry, even as he proposed 12 areas of amendment.

He regretted that in spite of the fact that NEITI has broken new grounds and brought more transparency to the extractive sector, the desired end of accountability has not been significantly achieved.

He acknowledged that the poor funding from federal government has greatly hindered its operation.

Accordingly, Ogbobine, NEITI is also seeking an amendment to its enabling laws that allows it to retain five per cent of monies recovered from oil companies due to findings of its audit report of the sector.

To this end, the initiative

advocated that five per cent of monies accruing to Natural Resources Development Fund should be made available to it, to further complement their efforts.

In a swift reaction, Chairman of the occasion and former Senate Committee Chairman on Public Accounts, Sen. Ahmed Lawan argued that

NEITI should rather seek more realistic source of funding for its activities.

The Chairman argued that though it is important to impressively fund NEITI, it demands for five per cent of Natural Resources Development Fund may not be achievable.

He said, in 2012 the Natural Resource Development Fund had

In South Africa, renewables attract R192.6bn investment

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outh Africa's renewables sector has attracted R192.6bn in investment, of which 28% (R53.2bn) is much-needed foreign investment, according to the Department of Energy, DoE. The State of Renewable Energy in SA report, which was released at the SA International Renewable Energy Conference (SAIREC) this week, explains that SA is well on its way to achieving a goal

of 30% clean energy by 2025.

“We’re making intelligent use of our natural advantages,” said Energy Minister Tina JoematPettersson. “Renewables are a massive success story for South Africa.”

The report comes as a Bloomberg study revealed on Tuesday that wind power is now the cheapest electricity to produce in Germany and the UK, even without government subsidies. “It’s the first

time that threshold has been crossed by a G7 economy,” reported Bloomberg.

In addition, a panel member at the SAIREC said on Tuesday that the cost of new build for solar and wind energy is the same as building a coal power station. Tobias BischofNiemz, chief engineer at R&D Core, said that means “business sense can (now) drive the decisions”.

Renewables were catapulted to prominence in South Africa when electricity

N870billion in its account but the 7th Senate last year discovered that over N700billion had been misapplied.

On her part, the Executive Secretary of NEITI, Mrs Zainab Ahmed reiterated that the organisation indeed requires adequate power to impose sanctions on extractive industries operators.

shortages in 2008 led to load shedding, leading to bold targets in the 20102030 Integrated Resource Plan for 17 800 MW of new power generation capacity from renewables, the DoE report states.

South Africa has already committed to 6 236 MW of renewable energy generation by 2019.

Another 6 000 MW will be procured from 92 independent producers, with 37 having started commercial operation, adding 1 860 MW to the grid.

The sector has contributed to over 109 000 construction jobs and cut about 4.4 million tonnes of carbon dioxide.

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AfDB to triple annual climate financing by 2020

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resident of the A f r i c a n Development Bank, AfDB, A k i n w u m i Adesina, says the AfDB would nearly triple its annual climate financing to reach $5 billion a year by 2020. AfDB’s climate spending will increase to 40% of its total new investments by 2020.

“Climate change is both an urgent threat and a unique opportunity,” Adesina said.

“The Bank is significantly stepping up its support for African countries, not only to meet that threat but also to seize the opportunity to drive low-carbon, climate-resilient growth.”

Half of the $5 billion will be dedicated to reducing Africa’s greenhouse gas emissions by unlocking Africa’s enormous potential for renewable energy, especially solar, hydro, wind and geothermal power. The AfDB will also work with its clients to improve energy efficiency and build sustainable transport

systems.

The other half of the $5 billion will help African economies adapt to climate change through measures such as investing in climateresilient crops, building sustainable infrastructure and improving irrigation and access to water. To this end, the Bank will also be integrating climate resilience into all of the infrastructure projects it finances.

The African Development Bank has committed almost $7 billion to support climate-resilient and lowcarbon development in Africa in the past four years. Its energy investments last year will deliver power that is 90% generated from renewable sources. The AfDB also supports the Africa Renewable Energy Initiative and the Africa

The Bank is significantly stepping up its support for African countries, not only to meet that threat but also to seize the opportunity to drive low-carbon, climateresilient growth

Adaptation Initiative, both endorsed by the African Union heads of state and government.

As well as increasing its own climate financing, the AfDB will pursue public and private co-financing opportunities. The Bank will be seeking, for instance, to mobilise concessional financing from the Green Climate Fund. It will also issue more green bonds as a way of funding its climate investments.

“The current climate financing architecture is not providing the finance Africa needs,” Adesina said. “Much more needs to be done to increase Africa’s access to climate finance”.

The Bank’s announcement reflects the high priority it places on addressing climate change in its Ten Year Strategy 2013-2022, as well as massive new support for the energy sector.

Soon after Adesina became President in September, the Bank unveiled the New Deal

on Energy for Africa. The landmark initiative aims to solve Africa’s huge energy deficit by 2025, and to spur economic growth that will enhance Africa’s capacity to adapt to climate change.

Developed countries have committed to mobilising $100 billion a year from 2020 in climate finance for developing countries. In Paris in December, the international community is expected to finalise a new global climate agreement and decide how to finance it, at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21).

“To meet the $100 billion per annum target by 2020, we must improve the predictability and mobilisation of finance,” Adesina said. “I support the efforts by Multilateral Development Banks to enhance our share of climate finance, now and in the future.”

Labour

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Egbin Power, Labour at war over staff quarters, others KUNLE KALEJAYE

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he management of Egbin Power P l c a n d organised labour in the electricity industry are currently at war over usage of the housing estate, staff clinic and schools at the Egbin power plant.

Involved in the disagreement with the management over the facilities are the members of the Senior Staff Association of Electricity and Allied Companies SSAEAC, and the National Union of Electricity Employees, NUEE. Chairman of Egbin Power Plc, Mr. Dayo Adesina, explained that the recent Amber security alert declared by the management was unavoidable alleging that in light of security reports linking illegal occupants on the facility with plans to disrupt operations and destroy property.

The company's Chief Executive Officer, Mr. Dallas M. Peavey Jr., also alleged that the illegal residents and their wards as well as certain groups in the community have been linked with plans to disrupt the operations of the power plant. They are also responsible for incidences of rape, robberies and vandalism occurring on the facility.

“The illegal occupants are not documented and this is a huge risk in an enclosed environment. Outcomes from various investigations show that some of the criminal and untoward acts perpetrated in the estate have been traced to individuals linked to some of the former PHCN staff most of whom have either retired or transferred about eight years ago but has refused to vacate the estate after being served quit notices for over two years now," he said.

"They continue to harass our staff and issue threats of major disruptions to the facility. The situation deserves immediate national attention considering the strategic role Egbin plays in the power sector.

"We therefore appeal to law enforcement agencies to

Egbin power station

urgently address the situation which may result in sabotage to the plant,” he alleged.

The Egbin CEO added that the housing constraint is taking its toll on the technical personnel and engineers at the plant, who work on shift and on-call duty, explaining that no fewer than 150 members of staff are being denied accommodation by the situation. This development, he added, had led to endless cases of “trauma and impeded productivity” in the company.

But, in a swift reaction, SSAEAC and NUEE condemned what they termed "the wanton destruction of property, inhuman and degrading treatment meted out to its members at the facility".

Citing a joint statement in 2013, the groups explained that the Power Holding Company of Nigeria, PHCN, was unbundled into ?18 companies with the private investor acquiring about 51

percent equity shares and the remaining 49 percent equity share left to the government and the workers.

Much to the workers' chargin, the unions said, some investors claimed 100 percent equity shares at the detriment of the government and the workers.

"At the Egbin Power Plant, the management claimed that ?they have bought staff quarters, staff schools, staff clinic and the rest vacant

land measuring about 600 acres.

"It may interest the public to know that these properties are non-core assets that were not sold along with the power plant to Egbin Power Plc. The ownership of this noncore asset, particularly the school reside with the workers who contributed their hard-earned money to establish the school for the betterment of their children, the unions said.

NUPENG laments job terminations at Chevron

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he National Union of Petroleum and Natural Gas Workers, NUPENG, says it is watching with keen interest 'ongoing termination' of the jobs of its members at Chevron Nigeria Limited.

The union, in a statement issued in Warri, Delta State, by its President, Igwe Achese, described as unfortunate the fact that the resolution reached with

Chevron and the Federal Ministry of Labour has not stopped the termination of the jobs of its members.

It stated that Chevron and its labour contractors have reneged on the resolutions reached at all its meetings in spite of the Federal Ministries of Labour and Petroleum Resources' intervention.

“Chevron Nigeria Limited in their bid to deplete the numerical strength of

NUPENG, introduced an obnoxious criteria of using remuneration to determine which union the contract workers should belong to in the company.

"Other issues include the massive retirement of members by management of the various Chevron Labour Contractors without due process,” NUPENG said in the statement.

It maintained that some of the workers transited from the former six contractors to

the new 16 but were not been paid their full entitlements.

NUPENG added that Chevron even refused to appear in a meeting convened by the Group Managing Director of the NNPC in Abuja last week.

The union added that the company had begun “secret recruitment of workers to phase out NUPENG members and that will be resisted at all cost.”

Labour

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Oil workers

Save oil workers, clear debts owed JV firms, PENGASSAN urges govt MKPOIKANA UDOMA

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he Petroleum and Natural Gas Senior Staff Association of N i g e r i a , PENGASSAN, has expressed worry over Federal Government's irregular contribution to the Joint Venture, JV, funding with the multinational oil companies.

PENGASSAN President, Comrade Francis OlabodeJohnson, said non-payment of joint venture cash call by the government has forced operators to scale down on

…Calls for special force against oil theft the spectrum of exploration and production operations by embarking on downsizing and redundancy of workers to cut

cost, thereby increasing the unemployment situation in the country.

Johnson made the call

Going forward, the government should also endeavour to put in process funding of the JV operations to enable the pursuit of exploration opportunities, expanding operations in the oil and gas industry as well as increase government revenue leading to more employment opportunities for Nigerians,

during the 4th triennial delegates’ conference of PENGASSAN, Shell Branch, in Port Harcourt, with the theme: 'Building an Industrial Relations Community in a Challenging Global Economic Downturn'.

He explained that the Federal Government has been defaulting in the payment of counterpart funding for company operations and that the Joint Ventures were owed billions of dollars in cash call arrears.

He added: “As workers in the industry and Nigerians, we call on the government to

Govt to use solar energy production to boost employment

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he Nigeria Directorate of Employment, NDE, has announced government’s plans to use solar energy to boost employment generation for thousands of youth in the country.

Speaking recently at a solar energy system training, NDE DirectorGeneral, Mallam Abubakar Mohammed, said the agency had been involved in environmental scanning to address

unemployment over the years.

He said one of the steps taken was the training of youths in renewable energy, specifically solar energy system, due to the energy crisis confronting Nigeria as a nation.

He said although Nigeria needs adequate supply of energy to drive its economy and power its domestic, economic, technological and social sectors, it has however been difficult to meet the energy needs of the citizenry

by successive governments.

The NDE boss also stated that the directorate had produced 950 technicians in 19 states of the federation, adding 50 were resettled in Ilorin, Kwara State out of the 100 unemployed youths who were trained while another 50 were resettled in Akure, Ondo State, out of the 61 persons trained.

According to Mohammed, “It is a known fact that over

70 percent of Nigerians are living in the rural areas, a larger percentage of which have no access to national grid-supplied electricity; the high cost of grid extension to such areas and widespread of rural communities, combine to make rural electrification by means of renewable energy attractive.”

evolve means of urgent process of clearing cash call arrears by paying the debts owed the IOCs, as it was done on subsidy for petroleum marketers.

“Going forward, the government should also endeavour to put in process funding of the JV operations to enable the pursuit of exploration opportunities, expanding operations in the oil and gas industry as well as increase government revenue leading to more employment opportunities for Nigerians,” Johnson said.

The PENGASSAN president also expressed worry on the level of oil theft and pipeline vandalism in the country, and called on the Federal Government to establish a special taskforce for the protection of pipelines and other oil installations in the country.

He urged government to ensure sound pipeline integrity to pave way for safe transportation of crude and other petroleum products across the country.

Explaining that it was necessary for the government to provide adequate security for the nation’s oil facilities, the PENGASSAN president stated that security agencies should be empowered to ensure regular surveillance of the pipelines to arrest activities of vandals.

Labour

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President Buhari

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resident of the Nigeria Labour Congress, NLC, Ayuba Wabba, has urged the Federal Government to move fast to return the nation's economy on the path of growth.

Wabba said the current state of the economy was not impressive as he urged Presid ent Muha m m a d u Buhari to introduce 'smart measures' to turn around the economy.

In a statement in Abuja, the NLC president also asked the government to lay emphasis on textiles, agriculture, solid minerals and taxation in the drive towards bettering the economy.

According to him, labour is particularly worried about the state of the nation's economy given that it had been purported that the economy could collapse next year in the face of what it is going through.

Wabba was, however, of the view that the Federal Government could not turn the economy around all alone, urging the government to consider a partnership with the organised private sector to return the economy on the path of growth.

He said: “The performance of the economy at any point in time is of great concern to labour. In the months preceding the 2015 general elections, the performance

Act swiftly to re-grow economy —Labour Labour is particularly worried about the state of the nation's economy given that it had been purported that the economy could collapse next year in the face of what it is going through

nose dived largely due to a number of reasons including dwindling oil sales in the international market, fiscal indiscipline, corruption, rising cost of governance and unhelpful macro-economic policies.

“However, the general elections, arguably was the trigger, as the economy cascaded to its lowest ebb immediately after the elections, in recent years…

"The naira is still

considerably weak against the major currencies of the world making the cost of living to rise sharply since we are an import-dependent nation, inflation is not abating, oil prices keep on falling etc. Indeed, there are strong speculations that the economy might run into a recession next year for reasons not unconnected with sluggish growth in two consecutive quarters.”

NAPTIN graduates 156 engineers T

he National Power Training Institute of Nigeria, NAPTIN, has graduated 156 engineers under its graduate Skill Development Programme, NGSDP. Speaking at the 4th graduation ceremony of the programme in Lagos, Director General, NAPTIN, Mr. Reuben Okeke, said the graduates comprised 79 distributions engineers, 73 generation and four in the transmission cadre.

He said the graduates will be employed by various power distribution companies, DISCOs; the generating companies, GENCOs; and the

transmission company to boost power supply in the country.

According to him, "out of this number (156), 100 have been sponsored by the Sahara Power Group, 45 by the Taraba State Government, three by the Yobe State Government while eight are selfsponsored.

"I am proud to announce that of this 156, 122 passed with merit while 33 are in the pass category with just one in the satisfactory completion category. "l want to say that there are 15 female graduating

engineers of which one will shortly be recognised for award of best graduating trainee in the self-sponsored category.

"I have no doubt in declaring unequivocally, that all 156 graduates are fit to work in Nigeria power sector,’’ he said.

Okeke stated that the institute is committed to the power sector development initiative of the Federal Government, which mission, according to him, is to promote a centre of training

that fully supports the rapid development of the power sector.

Commenting, Mr. Godknows Igali, Permanent Secretary, Ministry of Power, said that potentially Nigeria can hit 5,000 mega watts but the country is currently generating between 4,600 to 4,700 mega watts which also depends on the distribution companies who has the capacity to wheel the energy

Solid Mineral

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Five countries indicate interest in Nigeria’s solid minerals

Solid minerals

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ive countries have indicated interest to invest in Nigeria’s mining sector, according to the president of the Miners Association of Nigeria.

Shehu, who spoke in Abuja, listed the countries to include Thailand, South Africa, Dubai, Canada and Australia.

He said they had declared interest to come to Nigeria with their equipment and start mining very soon,

adding that their investment in the solid minerals sector would boost Nigeria’s economy and create job opportunities for the youth.

While encouraging the investors, the president said the Nigerian Minerals and Mining Act, 2007, and its Regulations 2011, were in line with international standard and guaranteed security of tenure.

He also said that Nigeria had a favourable geology and readily available geosciences data for prospective investors.

There are 44 minerals occurring in no fewer than 500 locations in Nigeria; the notable minerals are metallic, tin, tantalite, columbite, iron ore, nickel, lead, zinc, zircon, silver, and copper

Stakeholders call for local content policy in steel sector

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takeholders in the manufacturing sector have lamented the challenges facing the nation's steel industry, urging the Federal Government to act swiftly to prevent a possible collapse of the industry.

According to them, the government should, among others, extend the local content policy operating in the oil and

gas sector to the steel industry by, at least, enforcing the use of made-in-Nigeria iron rods in all government projects.

Director General of the Manufacturers Association of Nigeria, MAN, Remi Ogungbefun, and Chief Executive Officer of African Industries Group, Sanjay Kumar, who spoke separately, said government's efforts to grow the economy would fail so far as the steel industry iwas bedevilled with

problems.

According to Ogungbefun: “The situation in the sector is very bad. So many companies have closed down and many more are about to close shop. This is as a result of policies that are not helpful to manufacturers.

"One of the greatest challenges facing the sector today is patronage. If government is ready for industrialisation, it must

enact policies directly targeted at encouraging local manufacturing.“ Also commenting, Kumar maintained that the owners of over 30 private steel plants producing various steel products in the country have invested well over N100 billion since inception, pointing out that these investments were facing imminent danger in the face of numerous challenges confronting the industry.

According to him, Nigeria is richly endowed with various minerals that manifested in multiple occurrences all over the country.

“There are 44 minerals occurring in no fewer than 500 locations in Nigeria; the notable minerals are metallic, tin, tantalite, columbite, iron ore, nickel, lead, zinc, zircon, silver, and copper.

“Among them are industrial minerals, barytes, talc, limestone, clays, marble, graphite, asbestos, feldspars, glass sand, gypsum, mica, precious minerals, gold, silver, gemstones coal, bitumen, lignite and uranium," he said.

The president said currently, mining contributed only 0.3 per cent to Nigeria’s Gross Domestic Products, GDP. According to him, mining in Nigeria is over 2,400 years old; it started as form of artisan mining by communities in search of materials such as gold, clay, base metals for sculptures.

Freight

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West Africa losing $2bn yearly to maritime piracy

Sea pirates

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est African countries are losing $2 billion annually to maritime piracy and armed robbery, the Ghanaian Chief of Naval Staff, Rear Admiral Geoffrey Mawuli Biekro, has said.

Speaking in Accra while presenting a lecture titled, “The Spate of Piracy and Armed Robbery at Sea and its impact on the Maritime Industry: The Role of Maritime Educational Institutions”, Biekro noted that maritime piracy and armed robbery on the African continent mainly took place along the Gulf of Guinea and the Indian Ocean.

He maintained that the prospects of the oil and gas industry was threatened by the activities of maritime pirates and armed robbers at sea and that efforts were required to combat the menace.

Biekro said the impact of maritime piracy had direct bearing on economic development of any country and great attention is needed to ensure maritime security around the countries’ territorial waters.

Accirding to the Chief of Naval Staff, there were

efforts by both global and regional bodies to combat maritime piracy, which has resulted in cooperation to provide solutions in that direction.

He said the international maritime organisation was also helping countries with technical support to address some of the challenges associated with maritime piracy.

On the efforts of Ghana towards maritime security,

Rear Admiral Biekro said the country has established the marine police unit and has also boosted the fleet of ships for the Navy to improve monitoring of the country’s territorial waters.

“The Ghana Navy will continue to seek measures to monitor and address maritime piracy along the West Africa sub-region,” he added.

He said operational collaborations have

improved over the years to combat the activities of pirates and armed robbers on the seas. He, therefore, called on maritime institutions to hold workshops on maritime security in the area of law enforcement. He said these institutions needed to collaborate with research agencies to find solutions to the menace in the areas of research.

The event featured the

story of Mr Jewel Ahiable, an Electrical Engineer, who was a victim of maritime piracy.

He narrated how he and his crew members were captured for 1000 days (Two years, nine months), adding that when the ship was captured by the Somali pirates; they demanded a ransom of 10 million dollars for which the ship owners refused to pay.

Capacity development crucial to maritime sector growth, says NIMASA Boss KUNLE KALEJAYE

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he Nigerian M a r i t i m e Administration and Safety Agency, NIMASA, has reiterated its commitment to capacity building, saying it was vital for the growth and development of nation's maritime sector.

For this reason, NIMASA’s Acting Director General, Mr. Haruna Baba Jauro, said the agency was

prepared to partner with the British military.

Receiving a delegation from the British Military Advisory and Training Team, BMATT, led by Commander Shaun Quinn of the Royal Navy, during a courtesy visit to the agency head office in Apapa, Lagos, Mr. Jauro said the wiliness was there to partner with the British.

He added that the relationship between the British and the Nigerian government dated back to

the pre-colonial era and that NIMASA was willing to consolidate on the already existing relationship between the two countries, especially in the area of training for the growth and development of the Nigerian maritime sector and the nation at large.

“The Agency is willing and ready to collaborate with the British Military in the area of training of our personnel because training is part of capacity building and capacity building is key to

the growth and development of the maritime sector”, the director general said.

Earlier, the leader of the delegation who is also the BMATT Staff Officer Maritime, noted that the reason for the visit was to know some of the functions of the Agency and to also discuss possible areas of collaboration regarding training of its personnel towards enhancing a virile and safer maritime sector.

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Nigeria Navy personnel on duty

NIMASA, Navy renew agreement on maritime security KUNLE KALEJAYE

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he Nigerian M a r i t i m e Administration and Safety A g e n c y , NIMASA, and the Nigerian Navy have resolved to deepen collaboration to provide a safe and secured maritime environment for shipping activities in the country.

They renewed this resolve when the Acting Director General of NIMASA, Mr. Haruna Baba Jauro, recently visited the Chief of the Naval Staff, Vice Admiral Ibok-Ete Ibas, at

the Naval headquarters in Abuja.

Mr. Jauro, who expressed NIMASA’s commitment to the collaboration between both organisations, commended the Nigerian Navy for keeping to the spirit and letters of the existing Memorandum of Understanding, MoU, between them, which he said has drastically improved safety in the Nigerian maritime domain.

According to the Jauro, “Having acquired a satellite surveillance system that is capable of monitoring in real time vessel activities in our maritime domain, NIMASA is also committed to the MoU with the Nigerian Navy both

of which have the overall aim of making Nigeria a maritime destination of choice for both operators and investors.”

H e s a i d t h e determination of his agency to enhance business activities in the maritime sector by ensuring safety and security also led to a Public Private Partnership, PPP, arrangement with Global West Vessel Specialists Limited, GWVSL, which was approved by the Federal Government.

According to him, the mandate of GWVSL is to procure and bunker vessels for NIMASA’s operations,

manned by the personnel of the Nigerian Navy on a Supply, Operate and Transfer, SOT, basis for a 10 year period after which ownership of the vessels will revert to NIMASA. Responding, the Chief of the Naval Staff, Vice Admiral Ibas appreciated the efforts of the management of NIMASA in the past eight years since the MoU was first signed most especially in the areas of training of officers and logistics support to Naval operations.

Throwing light on the use of NIMASA vessels by the Nigerian Navy personnel,

Reforms to enhance revenue generation - Customs boss

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h e n e w ComptrollerGeneral, Nigeria Customs Service, NCS, Col. Hameed Ali (rtd), has restated his commitment to undertake reforms and restructure the service to generate more revenue.

A statement issued in Abuja by Mr. Wale Adeniyi, spokesman of the NCS, quoted Ali as making the remark at his

maiden meeting with the management of the service on assumption of duty.

It said that the CG charged the management to cooperate with him to deliver on the mandate given by President Mohammadu Buhari.

"The mandate the President has given me are three basic things: reform customs, restructure customs and increase revenue generation.

"I don’t think that is ambiguous; I don’t think that

it is cumbersome. It is precise and I believe that is what all of you are here to do," Ali said.

He pleaded with the NCS management not to see him as a stranger but part of the customs family with a mission to help build and strengthen the service.

The statement said the new customs boss solicited the support and loyalty of all officers and men, stressing that a collective

approach was required to make the service better.

Earlier, the Deputy Comptroller General, Dr John Atte, while handing over, gave Ali a brief history of the service.

Atte assured the new CG of the unquestionable loyalty of officers and men to ensure elimination of smuggling and increased revenue collection.

he stated that by the provisions of the MoU, “we (Nigerian Navy) provide security, we arm those ships.

By whatever means the vessels are acquired, the Nigerian Navy is fully manning those boats and we still do.”

Admiral Ibas also advocated for a review of the existing MoU to reflect current realities and to make it more effective and beneficial to both organisations and the country at large.

Responding to questions from journalist, NIMASA acting Director General reiterated that the deal between his agency and GWVSL did not in any way encroach on the constitutional duties of the Nigerian Navy to protect the nation’s maritime coast.

He noted that the contract with GWVSL, owned by exmilitant, Government Ekpemupolo, alias Tompolo, was not an attempt by the agency to hijack the functions of the Navy.

He said: “It does not. Yes, it does not because the Navy is one of its kind and no one is willing to go there and take anything from them.

2015 October, SweetcrudeReports

Freight

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Maritime & trade contribute $15bn yearly to Nigeria’s economy'

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ormer Managing Director of Nigerian Ports Authority, NPA, Chief Adebayo Sarumi, says maritime and trade in the Sub-Saharan Africa region has experienced an unprecedented growth in the last few years, contributing over $15 billion annually to Nigeria’s economy.

But the former NPA managing director, who spoke in Lagos, said this contribution could grow to as much as $50 billion in the next few years.

He spoke ahead of the twoday International Sea Trade and Investment Convention’s held in Lagos.

“Maritime and trade in the Sub-Saharan Africa region has experienced an unprecedented growth in the last few years, contributing over $15 billion annually to Nigeria’s economy. But this can grow to as much as $50 billion in the next couple of years,,” Sarumi, the chairman of the Steering Committee for the convention, said.

According to him, the convention has the target of highlighting impediments to export trade restrictions, facilities and regulations within the maritime industry.

It is also targeted at creating the platform for stakeholders to develop a roadmap to address issues of products, standardisation, financing, incentives and the lack of infrastructure in the industry, Sarumi said, adding that the overall aim is

Cargo ship

to position Nigeria as a maritime hub.

It is also aimed at developing viable import/export market, standardise goods and services to meet global certification for export, import and finance, market linkage, trade and infrastructure

Maritime and trade in the SubSaharan Africa region has experienced an unprecedented growth in the last few years, contributing over $15 billion annually to Nigeria’s economy

investment.

"The convention would buoy up Nigeria’s export trade and maritime sector to make it attractive to global buyers and foreign investors,"’ he said.

Marina advocates return of national carrier

A

Mariner, Capt.

Adewale Ishola, has urged the Federal Government to re-establish a national shipping line for security reasons.

Ishola made the call in an interview with the News Agency of Nigeria in Lagos, saying, "We need a shipping line for the purpose of our national security".

Recall that the Nigerian National

Shipping Line, NNSL, was liquidated in 1995 and its more than 20 vessels sold.

He noted that "in times of war, because when we were in NNSL, we had to carry our soldiers to Lebanon, to Congo, for ECOMOG".

He added: "Even when I left NNSL; I was in a private shipping company; we also carried fuel to ECOMOG; I was in Liberia, I was in Sierra Leone.

'But if you do not have a national carrier, it is going to cost the country a lot of money.

You are going to pay a lot to hire foreign vessels to do your job for you.

"Also, there is no secrecy about what you have as your security equipment; which means they can sabotage it. So, it is good to have a national carrier. it is for our national pride too".

According to him, this will also help the nation to carry its flag around the whole world.

The master mariner, however, suggested that the pursuit of a national carrier

should be public-private driven initiative, where government should provide the enabling environment

Port

and funding, while professionals manage the system.

2015 October, SweetcrudeReports

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Motoring

2015 October, SweetcrudeReports

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Toyota developing autonomous “highway teammate” announcement is meant to underscore the maker’s technical prowess, it also reveals Toyota’s “cautious” nature, the Japanese giant still skeptical about the pace at which high-tech automobiles will be able to take over driving duties from humans.

Toyota’s system is less an auto-pilot than co-pilot, designed to handle relatively mundane chores as an assistant to a human driver who will remain in control, especially on more crowded urban roads. Some competitors, notably including Nissan, hope to have fully autonomous products that can navigate all roads on sale by as early as 2020.

“Toyota believes that interactions between drivers and cars should mirror those between close friends who share a common purpose, sometimes watching over each other and sometimes helping each other out,” the maker said prior to a demonstration of the Highway Teammate technology in Tokyo.

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oyota plans to roll out new technology that will allow its vehicles to autonomously navigate limited-access roadways. Dubbed “Highway Teammate,” and set to go into production by 2020, the system will be able to change lanes, merge with traffic and overtake slower vehicles.

Toyota is the latest automaker to lay out plans for the fast-emerging world of self-driving vehicles. But while its

Toyota’s autonomous systems is, for now, restricted to use on limited-access roadways.

Toyota has been testing its semi-autonomous on the notoriously crowded Shuto Expressway in Tokyo, using a modified version of a Lexus HYPERLINK “https://www.yahoo.com/autos/research/lexus/gs350”GSsedan. As with competitive systems, it relies on detailed satellite-based navigation and a variety of cameras and other onboard sensors to get a sense of what’s happening on the road nearby.

But focusing on highway testing underscores the fact CONTINUES ON PAGE 39

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An onboard display shows what the Highway Teammate technology is doing at any moment.

Toyota developing autonomous “highway teammate”

CONTINUED FROM PAGE 38 that, “We’re a cautious company,” said Toyota Vice President Scott Vazin. The maker, he added, doesn’t believe fully autonomous vehicles will “cut the mustard,” at least not in the short-term.

Driving on a freeway can be a complex chore, studies showing that a driver must make dozens of calculations every minute. But navigating a city street is ever more complex, Vazin added, and may pose some challenges that are, at least for now, impossible to program into a computer. What happens, for example, if a vehicle is in a situation where it either hits a young boy who has dashed onto the street or otherwise drives head on into a vehicle coming the other direction?

The fact that Toyota is laying out a timetable for offering even more limited self-driving technology suggests, however, the competitive bind the company finds itself in. Nissan, for one, hopes to take a leadership role in the field by pushing to the limits of autonomous technology as quickly as possible.

And it’s not alone. Tesla’s Auto Pilot is already in beta testing and the maker hopes to wireless upload a version of the software to Model S and new Model X vehicles in a matter of months. Cadillac will begin rolling out an early version of its Super Drive for the 2017 model-year.

Google, meanwhile, is already testing its own autonomous technology using both modified production vehicles – ironically, including several converted Lexus models – and new, specially-built prototypes. Later versions of those bubble-shaped “Google Cars” won’t even have steering wheel or pedals, the company plans, just a microphone for a passenger to speak directions, and an emergency stop button.

But Google has, inadvertently, demonstrated some of the challenges of this brave new world. So far, it has reported more than a dozen crashes, mostly minor, involving its various autonomous vehicles. None were caused by using self-driving technology, it contends.

But it appears that a number of rear-end crashes occurred when the cars quickly stopped on a yellow while drivers behind attempted to run the light.

Toyota is “open” to the idea that fully autonomous vehicles are possible, said Vazin, but it doesn’t believe that will happen for decades – in part because it will take many years to replace the current fleet of “dumb” vehicles now on the road that don’t have even rudimentary autonomous features.

40 Technology A Fuel cell technology 2015 October, SweetcrudeReports

fuel cell is a device that converts the c h e m i c a l energyfrom a fuel into electricity through a chemical reaction of positively charged hydrogen ions with oxygen or another oxidizing agent. Fuel cells are different frombatteries in that they require a continuous source of fuel and oxygen or air to sustain the chemical reaction, whereas in a battery the chemicals present in the battery react with each other to generate an electromotive force (emf).

Fuel cells can produce electricity continuously for as long as these inputs are supplied.

The first fuel cells were invented in 1838. The first commercial use of fuel cells came more than a century later in NASA space programs to generate power for satellites and space capsules. Since then, fuel cells have been used in many other applications. Fuel cells are used for primary and backup power for commercial, industrial and residential buildings and in remote or inaccessible areas.

They are also used to power fuel cell vehicles, including forklifts, automobiles, buses, boats, motorcycles and submarines.

There are many types of fuel cells, but they all consist of an anode, a cathode, and an electrolyte that allow positively charged hydrogen ions (or protons) to move between the two sides of the fuel cell. The anode and cathode contain catalysts that cause the fuel to undergo oxidation reactions that generate positive hydrogen ions and electrons.

The hydrogen ions are drawn through the electrolyte after the reaction. At the same time, electrons are drawn from the anode to the cathode through an external circuit, producing direct current electricity. At the cathode, hydrogen ions, electrons, and oxygen react to form water.

As the main difference among fuel cell types is the electrolyte, fuel cells are classified by the type of electrolyte they use and by the difference in startup time ranging from 1 second for proton exchange membrane fuel cells (PEM fuel cells, or PEMFC) to 10 minutes for solid oxide fuel cells (SOFC).

Individual fuel cells produce relatively small electrical potentials, about 0.7 volts, so cells are "stacked", or placed in series, to create sufficient

voltage to meet an application's requirements. In addition to electricity, fuel cells produce water, heat and, depending on the fuel source, very small amounts of nitrogen dioxide and other emissions. The energy efficiency of a fuel cell is generally between 40–60%, or up to 85% efficient in cogeneration if waste heat is captured for use.

The fuel cell market is growing, and Pike Research has estimated that the stationary fuel cell market will reach 50 GW by 2020.

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imeline of Hydrogen technology The first references to hydrogen fuel cells appeared in 1838. In a letter dated October 1838 but published in the December 1838 edition of The London and Edinburgh Philosophical Magazine and Journal of Science, Welsh physicist and barrister William Grove wrote about the development of his first crude fuel cells. He used a combination of sheet iron, copper and porcelain plates, and a solution of sulphate of copper and dilute acid. In a letter to the same publication written in December 1838 but published in June 1839, German physicist Christian Friedrich Schönbein discussed

the first crude fuel cell that he had invented. His letter discussed current generated from hydrogen and oxygen dissolved in water. Grove later sketched his design, in 1842, in the same journal. The fuel cell he made used similar materials to today's phosphoric-acid fuel cell.

In 1939, British engineer Francis Thomas Bacon successfully developed a 5 kW stationary fuel cell. In 1955, W. Thomas Grubb, a chemist working for the General Electric Company (GE), further modified the original fuel cell design by using a sulphonated polystyrene ion-exchange membrane as the electrolyte. Three years later another GE chemist, Leonard Niedrach, devised a way of depositing platinum onto the membrane, which served as catalyst for the necessary hydrogen oxidation and oxygen reduction reactions. This became known as the "Grubb-Niedrach fuel cell".

GE went on to develop this technology with NASA and McDonnell Aircraft, leading to its use during Project Gemini. This was the first commercial use of a fuel cell. In 1959, a team

led by Harry Ihrig built a 15 kW fuel cell tractor for AllisChalmers, which was demonstrated across the U.S. at state fairs. This system used potassium hydroxide as the electrolyte and compressed hydrogen and oxygen as the reactants.

Later in 1959, Bacon and his colleagues demonstrated a practical five-kilowatt unit capable of powering a welding machine. In the 1960s, Pratt and Whitney licensed Bacon's U.S. patents for use in the U.S. space program to supply electricity and drinking water (hydrogen and oxygen being readily available from the spacecraft tanks). In 1991, the first hydrogen fuel cell automobile was developed by Roger Billings.

UTC Power was the first company to manufacture and commercialize a large, stationary fuel cell system for use as a co-generation power plant in hospitals, universities and large office buildings.

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n recognition of the fuel cell industry and America’s role in fuel cell development, the US Senate recognized October 8, 2015 as National Hydrogen and Fuel Cell Day, passing S. RES 217. The date was chosen in recognition of the

atomic weight of hydrogen (1.008).

Types of fuel cell

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uel cells come in many varieties; however, they all work in the same general manner. They are made up of three adjacent segments: the anode, the electrolyte, and the cathode.

Two chemical reactions occur at the interfaces of the three different segments. The net result of the two reactions is that fuel is consumed, water or carbon dioxide is created, and an electric current is created, which can be used to power electrical devices, normally referred to as the load.

At the anode a catalyst oxidizes the fuel, usually hydrogen, turning the fuel into a positively charged ion and a negatively charged electron. The electrolyte is a substance specifically designed so ions can pass through it, but the electrons cannot. The freed electrons travel through a wire creating the electric current.

The ions travel through the electrolyte to the cathode.

Once reaching the cathode, the ions are reunited with the electrons and the two react with a third chemical, usually oxygen, to create CONTINUES ON PAGE 41

2015 October, SweetcrudeReports

Technology

Fuel cell technology CONTINUED FROM PAGE 40

water or carbon dioxide.

The most important design features in a fuel cell are:

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he electrolyte substance. The electrolyte substance usually defines the type of fuel cell.

The fuel that is used. The most common fuel is hydrogen.

The anode catalyst breaks down the fuel into electrons and ions. The anode catalyst is usually made up of very fine platinum powder.

The cathode catalyst turns the ions into the waste chemicals like water or carbon dioxide. The cathode catalyst is often made up of nickel but it can also be a nanomaterial-based catalyst.

A typical fuel cell produces a voltage from 0.6 V to 0.7 V at full rated load. Voltage decreases as current increases, due to several factors:

Activation loss Ohmic loss (voltage drop due to resistance of the cell c o m p o n e n t s a n d interconnections) Mass transport loss (depletion of reactants at catalyst sites under high loads, causing rapid loss of voltage).

To deliver the desired amount of energy, the fuel cells can be combined in series to yield higher voltage, and in parallel to allow a higher current to be supplied.

Such a design is called a fuel cell stack. The cell surface area can also be increased, to allow higher current from each cell. Within the stack, reactant gases must be distributed uniformly over each of the cells to maximize the power output.

Proton exchange membrane fuel cells (PEMFCs) In the archetypical hydrogen–oxide proton exchange membrane fuel cell design, a proton-conducting polymer membrane (the electrolyte) separates the anode and cathode sides. This was called a "solid polymer electrolyte fuel cell" (SPEFC) in the early 1970s, before the proton exchange mechanism was well-understood. (Notice that the synonyms "polymer electrolyte membrane" and "proton exchange mechanism" result in the same acronym.)

On the anode side, hydrogen diffuses to the

anode catalyst where it later dissociates into protons and electrons. These protons often react with oxidants causing them to become what are commonly referred to as multi-facilitated proton membranes. The protons are conducted through the membrane to the cathode, but the electrons are forced to travel in an external circuit (supplying power) because the membrane is electrically insulating. On the cathode catalyst, oxygen molecules react with the electrons (which have traveled through the external circuit) and protons to form water.

In addition to this pure hydrogen type, there are hydrocarbon fuels for fuel c e l l s , i n c l u d i n g diesel,methanol (see: directmethanol fuel cells and indirect methanol fuel cells) and chemical hydrides. The waste products with these types of fuel are carbon dioxide and water. When hydrogen is used, the CO2 is released when methane from natural gas is combined with steam, in a process called steam methane reforming, to produce the hydrogen. This can take place in a different location to the fuel cell, potentially allowing the hydrogen fuel cell to be used indoors—for example, in fork lifts.

The different components of a PEMFC are; —bipolar plates, — electrodes, — catalyst, —membrane, and — the necessary hardware.

The materials used for

different parts of the fuel cells differ by type. The bipolar plates may be made of different types of materials, such as, metal, coated metal, graphite, flexible graphite, C–C composite,carbon–polymer composites etc. The membrane electrode assembly (MEA) is referred as the heart of the PEMFC and is usually made of a proton exchange membrane sandwiched between two catalyst-coated carbon papers. Platinum and/or similar type of noble metals are usually used as the catalyst for PEMFC. The electrolyte could be a polymer membrane.

Proton exchange membrane fuel cell design issues

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osts. In 2013, the Department of Energy estimated that 80kW automotive fuel cell system costs of US$67 per kilowatt could be achieved, assuming volume production of 100,000 automotive units per year and US$55 per kilowatt could be achieved, assuming volume production of 500,000 units per year. Many companies are working on techniques to reduce cost in a variety of ways including reducing the amount of platinum needed in each individual cell. Ballard Power Systems has experimented with a catalyst enhanced with carbon silk, which allows a 30% reduction (1 mg/cm² to 0.7 mg/cm²) in platinum usage without reduction in performance.[26]Monash

University, Melbourne uses PEDOT as a cathode. A 2011 published study documented the first metal-free electrocatalyst using relatively inexpensive doped carbon nanotubes, which are less than 1% the cost of platinum and are of equal or superior performance. A recently published article demonstrated how the environmental burdens change when using carbon nanotubes as carbon substrate for platinum.

W a t e r a n d a i r management (in PEMFCs).

In this type of fuel cell, the membrane must be hydrated, requiring water to be evaporated at precisely the same rate that it is produced. If water is evaporated too quickly, the membrane dries, resistance across it increases, and eventually it will crack, creating a gas "short circuit" where hydrogen and oxygen combine directly, generating heat that will damage the fuel cell. If the water is evaporated too slowly, the electrodes will flood, preventing the reactants from reaching the catalyst

and stopping the reaction.

Methods to manage water in cells are being developed like electroosmotic pumps focusing on flow control. Just as in a combustion engine, a steady ratio between the reactant and oxygen is necessary to keep the fuel cell operating efficiently.

T e m p e r a t u r e management. The same temperature must be maintained throughout the cell in order to prevent destruction of the cell through thermal loading.

This is particularly challenging as the 2H2 + O2 > 2H2O reaction is highly exothermic, so a large quantity of heat is generated within the fuel cell.

Durability, service life, and special requirements for

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some type of cells. Stationary fuel cell applications typically require more than 40,000 hours of reliable operation at a temperature of -35 °C to 40 °C (-31 °F to 104 °F), while automotive fuel cells require a 5,000-hour lifespan (the equivalent of 240,000 km (150,000 mi)) u n d e r e x t r e m e temperatures. Current service life is 2,500 hours (about 75,000 miles).

Automotive engines must also be able to start reliably at -30 °C (-22 °F) and have a high power-to-volume ratio (typically 2.5 kW per liter).

Limited carbon monoxide tolerance of some (nonPEDOT) cathodes.

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hosphoric acid fuel cell (PAFC) Phosphoric acid fuel cells (PAFC) were first designed and introduced in 1961 by G. V. Elmore and H. A. Tanner.

In these cells phosphoric acid is used as a non-conductive electrolyte to pass positive hydrogen ions from the anode to the cathode. These cells commonly work in temperatures of 150 to 200 degrees Celsius. This high

temperature will cause heat and energy loss if the heat is not removed and used properly. This heat can be used to produce steam for air conditioning systems or any other thermal energy consuming system. Using this heat in cogeneration can enhance the efficiency of phosphoric acid fuel cells from 40–50% to about 80%.

Phosphoric acid, the electrolyte used in PAFCs, is a non-conductive liquid acid which forces electrons to travel from anode to cathode through an external electrical circuit. Since the hydrogen ion production rate on the anode is small, platinum is used as catalyst to increase this ionization rate. A key disadvantage of CONTINUES ON PAGE 42

2015 October, SweetcrudeReports

Technology

Fuel cell technology

Like SOFCs, MCFCs are capable of converting fossil fuel to a hydrogen-rich gas in the anode, eliminating the need to produce hydrogen externally. The reforming process creates CO2 emissions. MCFC-compatible fuels include natural gas, biogas and gas produced from coal. The hydrogen in the gas reacts with carbonate ions from the electrolyte to produce water, carbon dioxide, electrons and small amounts of other chemicals.

The electrons travel through an external circuit creating electricity and return to the cathode. There, oxygen from the air and carbon dioxide recycled from the anode react with the electrons to form carbonate ions that replenish the electrolyte, completing the circuit. The chemical reactions for an MCFC system can be expressed as follows: Anode Reaction: CO32- + H2 H2O + CO2 + 2eCathode Reaction: CO2 + ½O2 + 2e- CO32Overall Cell Reaction: H2 + ½O2 H2O

CONTINUED FROM PAGE 41

these cells is the use of an acidic electrolyte. This increases the corrosion or oxidation of components exposed to phosphoric acid.

High-temperature fuel cells] SOFC olid oxide fuel cells (SOFCs) use a solid material, most commonly a ceramic material called yttria-stabilized zirconia (YSZ), as the electrolyte.

Because SOFCs are made entirely of solid materials, they are not limited to the flat plane configuration of other types of fuel cells and are often designed as rolled tubes. They require high operating temperatures (800–1000 °C) and can be run on a variety of fuels including natural gas.

SOFCs are unique since in those, negatively charged oxygen ions travel from the cathode (positive side of the fuel cell) to the anode (negative side of the fuel cell) instead of positively charged hydrogen ions travelling from the anode to the cathode, as is the case in all other types of fuel cells. Oxygen gas is fed through the cathode, where it absorbs electrons to create oxygen ions. The oxygen ions then travel through the electrolyte to react with hydrogen gas at the anode.

The reaction at the anode produces electricity and water as by-products. Carbon dioxide may also be a byproduct depending on the fuel, but the carbon emissions from an SOFC system are less than those from a fossil fuel combustion plant. The chemical reactions for the SOFC system can be expressed as follows: Anode Reaction: 2H2 + 2O22H2O + 4eCathode Reaction: O2 + 4e2O2Overall Cell Reaction: 2H2 + O2 ? 2H2O SOFC systems can run on fuels other than pure hydrogen gas. However, since hydrogen is necessary for the reactions listed above, the fuel selected must contain hydrogen atoms. For the fuel cell to operate, the fuel must be converted into pure hydrogen gas. SOFCs are capable of internally reforming light hydrocarbons such as methane (natural gas), propane and butane.

These fuel cells are at an early stage of development.

Challenges exist in SOFC systems due to their high operating temperatures. One such challenge is the

S

A

potential for carbon dust to build up on the anode, which slows down the internal reforming process. Research to address this "carbon coking" issue at the University of Pennsylvania has shown that the use of copper-based cermet (heatresistant materials made of ceramic and metal) can reduce coking and the loss of performance. Another disadvantage of SOFC systems is slow start-up time, making SOFCs less useful for mobile applications. Despite these disadvantages, a high operating temperature provides an advantage by removing the need for a precious metal catalyst like platinum, thereby reducing cost. Additionally, waste heat from SOFC systems may be captured and reused, increasing the theoretical overall efficiency to as high as 80%–85%.

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he high operating temperature is largely due to the physical properties of the YSZ electrolyte. As temperature decreases, so does the ionic conductivity of YSZ. Therefore, to obtain optimum performance of the fuel cell, a high operating temperature is required.

According to their website,Ceres Power, a UK SOFC fuel cell manufacturer, has developed a method of reducing the operating temperature of their SOFC system to 500–600 degrees Celsius. They replaced the commonly used YSZ

electrolyte with a CGO (cerium gadolinium oxide) electrolyte. The lower operating temperature allows them to use stainless steel instead of ceramic as the cell substrate, which reduces cost and start-up time of the system.

Hydrogen-Oxygen Fuel Cell

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he Hydrogen-Oxygen Fuel Cell was designed and first demonstrated publicly by Bacon in the year 1959. It was used as a primary source of electrical energy in the Apollo space program. The cell consists of two porous carbon electrodes impregnated with a suitable catalyst such as Pt, Ag, CoO, etc. The space between the two electrodes is filled with a concentrated solution of KOH or NaOH which serves

42

as an electrolyte. 2H2 gas and O2 gas are bubbled into the electrolyte through the porous carbon electrodes.

Thus the overall reaction involves the combination of hydrogen gas and oxygen gas to form water. The cell runs continuously until the reactant's supply is exhausted. This type of cell operates efficiently in the temperature range 343 K to 413 K and provides a potential of about 0.9 V. MCFC Molten carbonate fuel cells (MCFCs) require a high operating temperature, 650 °C (1,200 °F), similar to SOFCs. MCFCs use lithium potassium carbonate salt as an electrolyte, and this salt liquefies at high temperatures, allowing for the movement of charge within the cell – in this case, negative carbonate ions.

s with SOFCs, MCFC disadvantages include slow start-up times because of their high operating temperature. This makes MCFC systems not suitable for mobile applications, and this technology will most likely be used for stationary fuel cell purposes. The main challenge of MCFC technology is the cells' short life span. The hightemperature and carbonate electrolyte lead to corrosion of the anode and cathode. These factors accelerate the degradation of MCFC components, decreasing the durability and cell life.

Researchers are addressing this problem by exploring corrosion-resistant materials for components as well as fuel cell designs that may increase cell life without decreasing performance.

MCFCs hold several advantages over other fuel cell technologies, including their resistance to impurities.

They are not prone to "carbon coking", which refers to carbon build-up on the anode that results in reduced performance by slowing down the internal fuel reforming process. Therefore, carbonrich fuels like gases made from coal are compatible with the system. The Department of Energy claims that coal, itself, might even be a fuel option in the future, assuming the system can be made resistant to impurities such as sulfur and particulates that result from converting coal into hydrogen. MCFCs also have relatively high efficiencies.

They can reach a fuel-toelectricity efficiency of 50%, considerably higher than the 37–42% efficiency of a phosphoric acid fuel cell plant.

Community

2015 October, SweetcrudeReports

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Under new MOU, Shell, NLNG provide N3bn for Bonny development

Bonny Island SAM IKEOTUONYE

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nder a new memorandu m o f understandin g , M o U , signed by the Nigerian LNG Limited, NLNG, and the Shell Petroleum Development Company of Nigeria, SPDC, with the Grand Bonny Kingdom in Rivers State, the two companies would be providing N3 billion annually for the development of the kingdom.

Part of the MOU provides that sustainable community development in the Kingdom would now be driven by the community rather than the corporate organisations as was the case in the past.

A statement by Dr. Kudo Eresia-Eke, General Manager in charge of External Relations at the NLNG, said the N3 billion annual development fund would be made available through the Bonny Kingdom Development Foundation, BKDF, which will manage all the community developmental activities, supervise initiatives by NLNG and SPDC and implement a revised Bonny Master Plan in Bonny.

The new MoU replaces a 1998 MoU signed by the companies, known as Joint Industry Companies, JIC,

for Bonny Kingdom, targeted at providing infrastructure and implementing a master plan, which has led to the provision of power supply, good roads, portable water supply, and a vocation school.

The Amanyanabo of Ancient Grand Bonny Kingdom, King Edward Asimini William DappaPepple III, Perekule XI signed the new MoU on behalf of Grand Bonny Kingdom, in the presence of Dr. Ipalibo Banigo, Deputy Governor, Rivers State, and Hon. Benjamin Ibietonye, Chairman, Caretaker Committee, Bonny Local Government area The statement added that during the signing ceremony at the palace of the Amanyanabo, the Managing Director and Chief Executive Officer of NLNG, Mr. Babs

The new MoU would change the approach of NLNG’s partnership with its host communities in a way that enables them take charge of their development Omotowa, said the new MoU would change the approach of NLNG’s partnership with its host communities in a way that enables them take charge of their development.

"I am pleased to announce the following three tranches of contributions that NLNG

will make annually, through the BKDF towards this vision: N1 billion towards the operations and maintenance of ongoing educational and utility institutions; N1bn towards the developmental initiatives of the Kingdom as reflected in the Updated Master Plan; and another

N1bn would be set aside as bonus to the community, which would only be released on the condition that there was a conducive environment to our businesses,” he said.

Managing Director of Shell Petroleum Development Company of Nigeria Limited and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, who also spoke at the occasion, said: “We’re delighted at the inauguration of the new MoU for Bonny Kingdom.

The successes of the previous MoU should inspire all parties to accord the latest one all the attention it deserves. SPDC will play its part to make the MoU work for the benefit of all stakeholders in this ancient kingdom.”

Agip records six cases of oil spill in September KUNLE KALEJAYE

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he Nigerian Agip Oil Company, N A O C – a subsidiary of the Italian multinational Eni – recorded six cases of crude oil spill in the Niger Delta in September, according to spills data obtained by SweetcrudeReports.

NAOC, which operates

Nigeria’s OMLs 60, 61, 62 and 63 as well as OPLs 282 and 135, also saw 11 cases of spill in August.

The data obtained from the National Oil Spill Detection and Response Agency, NOSDRA, confirmed all 17 cases (August and September) were mainly caused by sabotage and theft.

According to NOSDRA,

NAOC had two cases of gas spills due to sabotage and theft on September 2. The first occurred on the 6” Tuomo-Ogbeinbiri pipeline at Ogbosuware swampy area while the second incident occurred on the 6” TuomoOgbeinbiri pipeline at Adegbe, both in Port Harcourt, Rivers State. The two cases were reported to NOSDRA the following day.

On the September 8, NAOC spilled seven barrels (1,110 litres) of crude oil due to sabotage and theft on the 6” Ogboibiri-Tebidaba flowline at Azuzuama, Southern-Ijaw Local Government Area of Bayelsa State. NOSDRA said a “2' x 2' incision or cut was made by unknown persons on the pipeline, causing the spill.

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MKPOIKANA UDOMA

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youth group known as Aggrieved Niger Delta Youths, ANDY, has dragged the Niger Delta Development Commission, NDDC, before a Federal High Court in Port Harcourt over alleged diversion of funds meant for the development of the region, to personal pockets.

Under the case file FHC/PH/CS/141/2015, the Niger Delta youth group is challenging the NDDC board for failing to give the youths of the region their entitlements from the Federal Government.

Counsel for the youth group, Barr. Chris Ojobeagu, stated in Port Harcourt that the group is challenging the rationale behind the deprivation of Niger Delta youths of their rights, and why the youths are not carried along in the programmes of the intervention agency.

Ojobeagu explained that apart from the Federal Government, oil companies operating in the region have been releasing several funds for the training, empowerment and development of the Niger Delta youths.

According to him, “There is this international merchant Navy training sponsored by oil companies operating in the Niger Delta; this training was supposed to be done in Dubai, the money was released to NNDC, so where is the money? What are they doing with it? We are entitled to all these information, that is why we are in court. The Niger Delta youths are directly affected by their conduct.

“Several times the group has protested on the streets; sometimes, NDDC will give

Niger Delta

Group drags NDDC to court over ‘injustice against N/Delta’ them promises, other times they will use security agents to tear-gas the protesting youths. It is a great injustice and we are only asking for information. That is not too much. The right we have to get information from them is grounded by law.”

The aggrieved youths, according to Ojobeagu, is also accusing the board of NDDC of neglecting the youths of the region, who are the supposed

target of development by the Federal G+overnment.

“The substance of the matter is because of the injustice perpetuated on the youths of Niger Delta by the Board of NDDC; So many programmes have come from the federal government for the benefits of the youths but got diverted to personal purses of the bosses of the

governing council.

“The youths are the target of the entire programmes by the Federal Government, NDDC has not given them what has been handed to them from the Federal Government; and have failed to address them on the issue," he said.

However, the counsel for the NDDC, Barr. Ekanem Ekanem, has filed a motion

challenging the jurisdiction of the Port Harcourt High Court on the case.

Ekanem, who affirmed that the first sitting was fair, also said the court has adjourned the case to November 11 for hearing of the motion challenging the jurisdiction of the court on the matter.

Navy seizes vessel with stolen crude oil, arrests 11 MKPOIKANA UDOMA

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he Nigerian Navy says it has arrested a barge, a tugboat as well as eleven crew members suspected to be involved in oil theft.

The Central Naval Command who disclose this in Warri, said that the vessel are registered as MT DERA and the tugboat, RUNNER CHARLEY. According to the Flag Officer Commanding, FOC, of the Central Naval Command, Rear Admiral

Apochi Suleiman, the seizure followed intelligence report by a concerned citizen.

He said the vessel laden with 6,000 metric tonnes of suspected stolen crude oil was apprehended at Eremor 1 marginal oil field located off Peretorugbene in Ekremor Local Government Area of Bayelsa State.

The FOC explained that all the eleven crew members and the vessels are in its custody while preliminary investigation was ongoing.

“The barge was arrested at a point where there was no

loading point. But rather, the crude was suspected to be stolen from a well head at the Eremor 1 marginal field," he said.

Suleiman, in a statement, warned that there would be no hiding place for oil thieves within his command’s area of responsibility, adding that the command has made several successful raids on illegal refining sites in the fight against crude oil theft barely two weeks of his assumption of office.

The statement attributed

the feat to the Navy's zerotolerance stance on crude oil theft, pipeline vandalism, illegal oil bunkering and other sundry crimes, assuring that the Nigerian

Oil theft

Navy would continue to make illegal business of crude oil theft, pipeline vandalism and other s u n d r y c r i m e s unattractive.

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Shell restates commitment to Ogoni clean-up CHUKS ISIWU & YEMIE ADEOYE

…Urges govt to tackle pipeline vandalism, illegal refineries

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h e S h e l l Petroleum Development Company of Nigeria, SPDC, says it is commitment to the clean up of Ogoniland in accordance with the recommendations of the UNEP Report.

But it warned that a critical aspect of the UNEP report which emphasises on complete stoppage of pipeline vandalism and illegal refining of petroleum products in the area must be tackled by the Federal Government if the planned clean-up must succeed.

SPDC's General Manager, External Relations, Mr. Igo Weli, who disclosed this in Lagos, said the company is greatly encouraged by the leadership shown by President Muhammadu Buhari in setting up governance structures for implementation of the UNEP report. ''We are greatly encouraged by the positive and constructive response from representatives of the community, Niger Delta NGOs and civil society. This is an important step forward and SPDC is determined to play its part in maintaining the momentum.

“However, as the UNEP report stated, treating the problem of environmental contamination within Ogoniland merely as a technical clean-up exercise will ultimately lead to failure. Ensuring long-term sustainability is a much bigger challenge – one that will require coordinated and collaborative action from all stakeholders.

“This must include putting an end to the widespread pipeline sabotage, crude oil theft and illegal refining that are the main causes of environmental damage in Ogoniland and the wider Niger Delta today. Shell Companies in Nigeria will continue to be at the forefront engaging interested stakeholders and seeking sustainable innovative ways to resolve the problem,” said Weli noted that as part of SPDC's commitment to the clean-up, it has already

Oil spill

accomplished 16 of the 22 operator-specific actions directed at it by the UNEP report.

He said five of the actions were currently ongoing while one is pending, identifying the pending one as its expected contribution to the $1 billion Ogoni Remediation Fund.

Weli disclosed also that in meeting the actions expected of it, 470 incidents had been documented along SPDC right of way in Ogoniland, of which 368 had been remediated, 32 at various stages of remediation while 70 were outstanding. 40 of

the outstanding are in Bodo community, he said.

"We have also completed the physical verification of assets in Ogoniland covering delivery and flowlines, manifolds, flow stations, compressor stations, gas plants and burrow pits.

"SPDC JV funded a

regional water supply project at Eleme which provides access to potable water for about 30,000 indigenes across five clans from 103 outlets. This is being expanded by the Rivers State Government to include more outlets," he added.

NDDC awards 220 post-graduate foreign scholarships MKPOIKANA UDOMA

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n continuation of its post-graduate foreign s c h o l a r s h i p programme, the Niger Delta Development Commission, NDDC, has given award letters to 220 graduates who are set to depart for their studies abroad.

The successful graduates from the nine states of the Niger Delta were given their letters at a predeparture briefing and formal orientation held at the Hotel Presidential in Port Harcourt.

Addressing the graduates, who have joined the long list of NDDC scholars, the Managing Director of the Commission, Sir Bassey Dan-Abia, advised them to make good use of the privilege to be good ambassadors of Nigeria.

The NDDC chief executive officer noted that the Post Graduate Foreign Scholarship Scheme was initiated in 2010 with 200 beneficiaries in line with one of the policies set out in the Niger Delta Regional Development Master Plan.

According to him, "the

commission had recorded huge successes since the inception of the programme, sponsoring the training of more than 1,200 graduates in different fields, including engineering, medicine, ICT, agriculture and geosciences."

He added that the board and management had approved the inclusion of new courses such as environmental/oil and gas law and engineering projects management to widen the scope of the scheme.

Sir Dan-Abia expressed delight that some NDDC scholars did so well in their areas of study and were

awarded automatic scholarships in Harvard and Coventry universities to continue with their Ph.D programmes, while others were given teaching appointments in reputable universities.

Speaking on behalf of the beneficiaries, Mr. Udeme Dickson, who gained admission to study for a doctorate degree in A n a l y t i c a l a n d Environmental Sciences at the Northumbria University, Newcastle, United Kingdom, commended the NDDC for making the selection process transparent.

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Academy scroll

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he Nigerian C o n t e n t Development and Monitoring B o a r d , NCDMB, has announced a partnership with the Nigerian Universities Commission, NUC, to link the oil and gas industry with the university curricula so that both could improve their operations for the benefit of the economy.

The management of the two agencies agreed to the initiative, tagged 'Adopt A Faculty (AAFac) Programme', at a meeting in Abuja and set up a joint committee to develop a detailed action plan within four weeks.

Executive Secretary, NCDMB, Mr. Denzil

NCDMB partners NUC to take oil & gas education to varsities Kentebe, described the AAFac programme as a capacity development initiative of the Board intended to use academic institutions as a catalyst for local content development.

He said the programme is aimed at facilitating partnership between the academia and the oil and gas industry to align the university curriculum to industry technology and skill requirements to enable them train their students in courses and programmes relevant to the needs of the industry.

He listed other goals of the programme to include developing a culture for applied research, s t i m u l a t i n g commercialisation of research findings from academic institutions, encouraging beneficiaries of oil and gas resources to invest in manpower and i n n o v a t i o n a n d maintaining healthy pipeline of oil and gas talents.

Kentebe confirmed that the board would use its regulatory powers and

DESOPADEC to train 20 pilots

M

anaging Director of the Delta State Oil Producing Areas Development C o m m i s s i o n , DESOPADEC, Chief William Makinde, says the commission would train at least 20 commercial pilots before the end of his tenure.

He made the assurance

in Warri when workers of the commission who are of Urhobo extraction hosted him and Urhobo-born commissioners of the commission.

He said: “Before my tenure will come to an end, the commission must produce not less than 20 commercial pilots.

"In spite of the dwindling revenue of the state occasion by the drastic fall in the oil prices, which is also affecting

the revenue of the commission, our focus will be on human capital development of our youths, women and other sectors of the economy.�

According to Makinde, the commission, under his administration, would ensure equality in the employment of men and women in its youth development programme.

mandate to ensure that oil and gas operating and service companies comply with the AAFac programme.

On his own part, the Executive Secretary of the NUC, Prof. Julius Okojie, praised the board for initiating the programme and engaging the commission first rather than going to various institutions.

He said Nigeria has 142 universities with 610 academic programme, assuring the commitment of NUC to partner with N C D M B i n t h e

H e a l s o revealed plans by the board of commission to review and e n s u r e completion of outstanding projects from the previous board while pursuing fresh projects.

implementation of AAFac. The NUC boss decried the rejection of various students by operators in the industry due to perceived lack of relevant skills and expressed hope that the initiative will address the trend.

Okojie, who was represented by the Deputy Executive Secretary 1, Prof.

Chiedu Mafiana, said the first step in the AAFac programme would be to review the curriculum, identify the gaps both in theory and practical, and restructuring the curriculum to meet the needs of the oil and gas industry.

The deal identified the inclusion of effective monitoring and evaluation mechanisms into the action plan as imperative to ensure the success of the programme.

They regretted that most operators of the oil and gas industry had carried out intensive research and development in their home countries over the years and expressed hope that the AAFac programme will reverse the trend in favour of universities.

Community

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NDDC flags-off Ibeno road construction, to build desalination plant

E-mail: johniyene@yahoo.com

President Buhari, The Philosopher King

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Road construction MKPOIKANA UDOMA

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he Niger Delta Development Commission, NDDC, has flagged off the construction of the second phase of the N10.4 billion seven-kilometre IkoAtabrikang-OpolomIwuoAchang Road in Ibeno Local Government Area of Akwa Ibom State.

The phase two of the road which is five kilometres will continue from the 600-metre Ibeno bridge to link up with another 36-kilometre IkoroNtafra-Opolom Road, also being constructed by the NDDC. A t t h e o f f i c i a l commencement of the new phase in Ibeno, the NDDC Managing Director, Sir Bassey Dan-Abia, said that apart from the road project the commission was going to build a desalination plant in the oil-rich local government to ensure that the drinking water in the area was safe.

The NDDC boss noted that the Ibeno bridge was one of the longest built by the NDDC in the Niger Delta.

According to him, “When I first visited the bridge in February 2014, shortly after the fourth governing board was inaugurated, we were asked to commission the bridge which had them been completed. I did not buy the

idea of commissioning the bridge because I wanted to see that the road connected all the intended inland communities.

Thus, the contract for the second phase was the first to be awarded by the commission under my leadership.”

Sir Dan-Abia, who also paid a courtesy visit to the Paramount Ruler of Ibeno Local Government Area, Dr. Effiong Bassey Achianga, before the flag off ceremony, blamed the delays in the completion of NDDC projects in the area on funding challenges.

He, however, assured the royal father that the new NDDC would give them the special attention that they deserved as a major contributor to the oil wealth of the nation.

“Ibeno is a special area for the NDDC and as such, the commission will do everything within its powers, subject to the availability of funds, to complete all the projects started in the area and other parts of the Niger Delta,” he said.

In response, Dr. Achianga, who is also the Chairman of Akwa Ibom State Council of Chiefs, commend the Federal Government and the management of the NDDC for their efforts in executing some people-oriented projects in his domain.

He recalled that the NDDC Board and Management had visited him in February, 2014, “on the instruction of the former President Goodluck Jonathan to ascertain whether Ibeno Local Government Area was being marginalized.”

The monarch said it was unfortunate that some NDDC projects that would h a v e h e l p e d i n transforming the lives of the people of the area were being delayed on account of poor funding.

He listed some of the projects that had suffered delays to include the Ibeno Civic Centre, the Okroutip shore protection, Upenekang water project a n d t h e I t a k Abasi/Okoroitak shore protection project.

The NDDC Executive Director of Projects, Engr.

Tuoyo Omatsuli, who spoke specifically on the benefits of the second phase of the Ibeno road project, said that the NDDC recognised the importance of Eket and Ibeno local governments to the Federal Government, especially with the operational presence of the second largest producer of oil in the country, the ExxonMobil within the communities.

he appointment was very Nigerian: leaked to the foreign media while the president was attending the 70th session of the General Assembly of the United Nations. That is how President Buhari donned the toga of Nigeria's Minister of Petroleum Resources. To be fair to the gentleman, he will not be the first Nigerian president to appropriate that office but he certainly would be the first Nigerian president to occupy the high office twice with more than a shadow of doubt as to his qualification to hold a high level appointment in the Petroleum Ministry even once.

His predecessor in this office is Mrs. Diezani AlisonMadueke, an architect who got an MBA from Cambridge and worked for several years for the Shell Petroleum Development Company of Nigeria before being appointed Minister for Transport and later Mines and Steel; In 2011 Mrs. Alison Madueke was awarded a doctorate degree in management sciences by the Nigerian Defence Academy but was, at her appointment to the Ministry of Petroleum Resources as minister, adjudged by many in the industry to be unfit to manage Nigeria's most important business portfolio.

It is in this backdrop that a president, whose participation at the school certificate examinations has been embroiled in doubt, appoints himself to the sensitive office. Apart from the question of his academic qualifications, the president comes into this office when the oil and gas industry is facing its most daunting challenges in decades. Oil prices are at their lowest in a decade, alternative sources of energy and the cry for clean and renewal energy forms are at their highest pitch; the energy conundrum in Nigeria is conjoined to the Nigerian economy in such a manner that the health of the industry dictates the health of the Nigerian economy.

Muhammadu Buhari is the president that has taken four months to formulate an idea as to the manner of individuals he proposes to manage Nigeria with and after four months his list of nominees contain characters that like him, have shunned attendance at panels set up to examine acts of human rights abuses and economic sabotage. Has he been slow to formulate a team out of excessive prudence or the slowing of biological functions in an ageing facility? Neither is good for Nigeria. President Buhari would come into this office with a baggage of history. Like his immediate predecessor, President Buhari as Federal Commissioner for Petroleum and Natural Resources, was mired by a scandal of N2.8 Billion allegedly stolen from the NNPC's Midlands Bank accounts in the United Kingdom. When the loss was investigated by the Ayo Irikefe Panel, he and Olusegun Obasanjo, the duo who should have accounted for the movement of the sum were never invited by the panel to testify about the missing billions. Perhaps the general would have attended and perhaps he would have shunned that panel as he did several years later to the Oputa Panel.

Nigeria's oil and gas deposits are found largely in the Niger Delta area of Southern Nigeria and the people of that region have cried everlastingly that Nigeria's federating units should control the resources in their domains like other federations and contribute taxes to the delegates from all the states that constitute the federal government. Muhammadu Buhari's Katsina State has not contributed a litre of crude oil or a cubic meter of gas to the country's stock and he seeks to come into the position to determine how the resources are exploited and their earnings administered. Does this philosopher king have the requisite knowledge of the daunting challenges that face the host communities of oil and gas operations? Does he have the presence of mind to formulate a policy for the industry that can meet the challenges of the moment? If it takes our president four months to nominate his ministers, how long would it take him to conceptualise and initiate a policy that can meet Nigeria's domestic energy needs, the OPEC production politics, Nigeria's distribution channels in a glutted market, a robust investment policy that can leverage the exigencies of the moment, an industry structure that is functional and meets the needs of all stakeholders, especially the resource owners that have been divested of title, dignity and a safe environment, ALL of these while running Nigeria?

Muhammadu Buhari was elected to preside over Nigeria; it would serve him and Nigeria well if he sticks to his primary brief.

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