SweetCrude Reports June 2013

Crude oil theft in Nigeria, now global issue – Alison-Madueke

P/8

Customs reaffirms competency as DI contracts go sour P/35

SweetCrude P\8

REPORTS

A Review Of The Nigerian Energy Industry JUNE, 2013

VOL 01 N0. 04

www.sweetcrudereports.com

UPDATES

MONTHLY BASKET PRICE Apr-13 104.45 106.44 Mar-13 112.75 Feb-13 109.28 Jan-12 106.55 Dec-12 106.86 Nov-12 108.36 Oct-12 110.67 Sep-12 109.52 Aug-12 99.55 Jul-12 93.98 Jun-12 108.07 May-12 118.18 Apr-12 Daily | Weekly | Monthly | Yearly

102.44 US

124 120 116 112 108 104 100 96 92

Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep12 Oct-12 Nov-12 Dec-12 Jan-12 Feb-13 Mar-13 Arp-13

Nigeria's Sovereign Fund opens this month with $1bn SWF World leaders China - $1.21trn UAE - $816.6bn Norway - $715.9bn Saudi Arabia - $538.1bn Singapore - $402bn Kuwait - $342bn Hong Kong - $298.7bn Russia - $187bn Qatar - $115bn US - $110bn Australia - $89bn

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f all goes well, Nigeria will see first investment of its Sovereign Wealth Fund this month (June), according to the Nigeria Sovereign Investment Authority,

CONTINUES ON PAGE 26

PHCN: A metaphor for fraud, misgovernance

Nigerians groan under crazy billing, forced contributions Corruption bane of power sector —Dr Amadi

Power

2013 June, SweetcrudeReports

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Confusion over10,000mw power target CHUKS ISIWU

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t is now certain that Nigeria would be unable to achieve its dream of attaining 10,000 megawatts, mw, of electricity generation and supply by the end of this year as originally planned by the Federal Government.

After years of proclaiming the determination to achieve this dream, confusion set in late last month as the Minister of Power, Prof Chinedu Nebo, and Minister of State in the ministry, Hajia Zainab Kuchi, were at variance for the first time over the plan.

Appearing before the Senate Committee on Power, Steel Development and Metallurgy on Wednesday, May 22, Kuchi had given a re-assurance that the Federal Government would achieve the plan of pushing up the level of power generation to 10,000mw by December this year. She told the committee, with Senator Phillip Aduda, as chairman, that power generation will increase from the present 4,500mw to 6,000mw in July and rise further to 10,000mw

by December and that activities were on towards the realisation of various projects that would deliver the 10,000mw before the end of the year.

A day after, the Minister was to make a u-turn on her pronouncement before the Senate, claiming she was misquoted and that the 10,000mw target would only be feasible by December 2014.

Disassociating herself from the ‘alleged’ pronouncement at the Senate, Kuchi told journalists in Abuja: “With the processes that we have put in place, the statistics available to us, and the efforts at reforming the Transmission Company of Nigeria, TCN, we will achieve 10,000mw by December next year.

“Though we are generating up to 7,000mw of electricity currently, we are only able to wheel 4000mw because of our poor transmission network.

Power plant

The preferred bidders, who were fully aware of the status of the companies, expressed total confidence in the privatisation programme and were particularly eager to take over the companies having paid the initial 25 per cent of the bid price “By 2014, we will be able to wheel 10,000mw, by which time the National Integrated Power Project, NIPP, plants would have come on stream.”

She maintained that the privatisation programme for the Power Holding Company of Nigeria, PHCN, was on course and that the

PHCN power plants would be handed over to the new owners by July, as government was currently sorting out pending severance packages of electricity workers.

The minister added: “The claim that the Minister of State for Power said the generation and distribution companies that were bided for last year could not be handed over to successful bidders because the companies were currently not in good shape is also not

accurate. “ I n f a ct , a t a re ce nt Presidential Power Signing Summit, several agreements on vesting contracts and gas supply agreements were signed with preferred bidders.

“The preferred bidders, who were fully aware of the status of the companies, expressed total confidence in the privatisation programme and were particularly eager to take over the companies having paid the initial 25 per cent of the bid price.

Boom for solar power in Kenya

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evelopers in K e n y a ’ s C o a s t a l region are increasingly turning to solar energy for residential projects due to high cost and erratic nature of power supply from the national grid.

As a result, installation of solar

panels on rooftops for new and old projects is growing as clients demand for more reliable energy for heating water.

Chloride Exide, a major battery, solar and back-up supplier in East Africa, recently installed and commissioned eight water heating units at Nautilus residences, a new

development of luxury single storey homes built for sale in Kilifi.

“The heating units installed are indirect cylindrical tanks which are best suited for salty water,” said the Coast area manager of Chloride Exide, Sheikh Margubali.

According to him, the region is one of the sunniest

places in South Africa and it was, therefore, necessary that the resource is fully exploited to reduce cost in constructing and maintaining residential houses.

Margubali said homes could cut 65 per cent in cost of power through use of solar power.

Power

2013 June, SweetcrudeReports

Wind and solar energy

Problem of power sector is corruption, not lack of funds —NERC boss ...Says no need for rural electrification agency OSCARLINE ONWUEMENYI

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he chairman and chief executive officer of t he N i g e r i a n Electricity Regulatory Commission, NERC, Dr. Sam Amadi has argued that the major challenge to the development of the nation’s electricity sector was not inadequate funding as has been bandied over the years, but corruption, inefficiency and greed of operators.

Amadi, who spoke in an i n t e r v i e w w i t h SweetcrudeReports in Abuja, stressed that more than 80 percent of the challenge within the power sector was due to corruption.

He noted that it was fashionable among government officials to point fingers at poor funding as the challenge in the power sector, but wondered how

What we see going on inside the sector is that opportunistic, corrupt and self-serving people have taken over the whole place, and that is why the sector is where it is today. And it cannot change if the regulator is not strengthened and given the freereins to perform judiciously they had applied funds that were made available in the past.

He said, “What we see going on inside the sector is that opportunistic, corrupt and self-serving people have taken over the whole place, and that is why the sector is where it is today. And it cannot change if the regulator is not strengthened and given the free-reins to perform".

According to him, the only way corruption could be uprooted within the sector is to empower the regulatory

agency, adding that the sector requires a regulator that is corrupt-free, firm, fair and not serving the interest of elements in the government.

He maintained that any attempt to undercut the regulator will further throw the sector in chaos. “For me, proper funding is the least of the problems; first ensure that there is prudence and efficiency in the system, and institute performance benchmarks for the various sectors.

"Furthermore, there is need to have clear-cut rules and regulations, with an empowered regulator to manage expectations in the sector. All of these come before talk of proper funding,” he stated.

Amadi further stressed the need for the 11 distribution companies, DISCOs, to be given more incentives in the form of financial support and matching grants from state governments to extend their services to rural areas of the country where there is no electricity, arguing that if that was done, there would not be need for creation of the Rural Electrification Agency, REA. He said that the concept of having an agency based out of Abuja and dealing with rural communities was not pragmatic and would yield more bureaucracy than electricity for the communities.

According to him, “We

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should reconsider whether we need a rural electrification agency. Granted, the Act provides for a rural electrification agency, which has been attended with a lot of debate even before we came in as commissioners of NERC. But, my opinion is that there are more proactive ways to go about the issue of rural electrification.

“I mean, we have distribution companies, which are also mandated by law to ensure that electricity reaches the rural parts of the country, and what these DISCOs need is little incentive so they can perform this function effectively. If they are incentivised and they do their jobs, you don’t need a rural electrification agency.”

He added that, “When you have a DISCO in Abuja, for example, putting transformers and delivering electricity in rural Kwali, that is rural electrification.

It does not have to be a centralised agency located in Abuja trying to transmit electricity to rural communities scattered all over the country. This is not right when you look at the bureaucracy it will create, the cost implications, and the propensity for corruption.”

Such financial incentive, he noted, should be given through an independent regulatory body such as NERC to ensure proper supervision and monitoring.

On the question of application of renewable energy in the country, the NERC chief executive noted that his commission has already come out with a template for the adoption and use of renewable energy in the country.

“We have a framework for licensing renewable energy , and we are presently working on a special tariff structure for renewable energy.

However, we appreciate that renewable energy is quite expensive and cannot be applied expansively for generic use.

“We have to be careful that the application of renewable energy programmes does not crowd out the need to expand and improve our conventional energy resources. This is because even for countries that have long embraced renewable energy, it is mainly used as a supplement to other conventional energy forms. It is only used as a top up energy resource to complement what they already have in the form of hydro, thermal or nuclear,” Amadi said.

Power

2013 June, SweetcrudeReports

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he Nigerian Electricity Regulatory Commission, NERC, has said that its recently introduced Credit Advance Payment for Metering Implementation, CAPMI, scheme will remove the current estimated billing system practiced in the power sector and entrench appropriate billing as a culture within the sector.

NERC announced the commencement of the implementation of the new electricity metering scheme last month.

The commission directed all the electricity distribution companies of the Power Holding Company of Nigeria, PHCN, to promptly commence implementation of the scheme, which is aimed at fasttracking the deployment of meters to customers.

Specifically, the CAPMI is a measure by NERC to close up shortfalls in metering of eligible electricity consumers

by PHCN distribution companies as a result of their failure to achieve comprehensive metering of consumers in the power sector within an 18 month period stipulated by NERC. This failure together with continued consumers' complaints and dissatisfaction with the current estimated billing system practiced within the sector pushed NERC to introduce the new scheme.

The scheme provides a platform for willing customers to pay the cost for meters provided by the distribution companies into a dedicated account jointly managed by the companies and meter vendor/installers.

It is expected that customers will have meters installed at their preferred locations within 45 days by such vendor/installer that has been accredited by NERC once payment has been confirmed.

In a statement, NERC chairman, Dr. Sam Amadi, stated that the cost of the meters was arrived at using the standard market price plus the most efficient installation costs.

The statement by Assistant General Manager, Media of the commission, Maryam Abubakar, quoted Amadi as disclosing that the distribution companies had submitted data to this effect during the review of the MultiYear Tariff Order, MYTO, as well as review of prices supplied by local manufacturers of meters.

New power meter

NERC says new metering scheme will ensure appropriate billing

It is expected that customers will have meters installed at their preferred locations within 45 days by such vendor/installer that has been accredited by NERC once payment has been confirmed According to him, NERC had followed a comprehensive due process by first advertising and inviting the Bureau of Public Procurement, BPP, to supervise the process of certification based on the metering code before selecting vendors and installers that will participate in CAPMI.

Consultations were also held with various stakeholders, including preferred bidders, would-be vendors and installers and distribution companies as well as the financial institutions that will participate in the scheme to agree on the framework and logistics of implementing

it.

Also, the commission emphasised on preference for local firms while selecting successful applicants as a way of localising the process and promoting local content in the sector, Amadi said.

With the coming into effect of the CAPMI, NERC also ordered the PHCN distribution companies to commence immediate supply of meters paid for by customers dating back to January 2011.

"It is regrettable that customers paid for meters and they were not supplied with the same months even years after.

"This is a double jeopardy considering that meters ought to have been supplied to them free once they paid bills. The commission had to take January 2011 as deadline for a number of reasons.

Nevertheless we are working on measures to ensure that customers who paid before January 2011 are metered within the shortest possible time," Amadi said.

The order is to be complied with in 44 days with failure expected to attract sanction on the chief executive officer of the defaulting distribution company.

In June 2012, NERC introduced a new set of electricity tariffs which provided that meters would be supplied for free for customers.

It set a goal of 18 months to meter the 2 million customers without meters. But, nine months after the target was set, not a single meter of the identified 2 million deficits in the country had been deployed.

This has made the introduction of an alternativeself metering plan, dubbed CAPMI, to become necessary.

Power

2013 June, SweetcrudeReports

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Indigenous meter manufacturer seeks govt funding YEMIE ADEOYE

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n an effort to arrest the problem of nonavailability of electricity meters in the nation’s power sector, an indigenous meter manufacturing company, MEMMCOL, has advised the Federal Government to patronising indigenous electricity meter manufacturing companies in the country in line with the provisions of the Local Content Act. This is also _expected to curb crazy billing by the Power Holding Company of Nigeria, PHCN, which has been described as the new face of fraud by electricity consumers.

Crazy billing is a situation which allows PHCN to impose electricity bills on their customers which are not commensurate with their electricity consumption, and the customers are expected to pay up or be forcefully disconnected.

Ambassador Igali

To help arrest the situation, electricity meter manufacturing company, MEMMCOL, has decided to shore up its investments to the tune of N3 billion in order to meet up with production obligations if and when required, especially as thousands of applications for the newly introduced pre-paid metering system is always met with “No meters in stock” response nationwide, making power consumers helpless in the hands of PHCN officials who know no better than imposing ridiculous bills on Nigerians.

Speaking recently with newsmen in Lagos, Mr Kola Balogun, chairman of MEMMCOL, urged the Federal Government to give financial support to local manufacturers of electricity meters as such support would go a long way to enhance their growth.

FG approves alternative funding for DISCOs, GENCOs

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he Federal Government has approved the institution of an alternative funding mechanism for the successor companies of the Power Holding Company of Nigeria, PHCN, according to Permanent Secretary, Ministry of Power, Ambassador Godknows Igali.

The PHCN successor companies are the power generating companies, GENCOs, and distribution companies, DISCOs, created from the unbundling of the national power monopoly.

The move by the Federal Government is to give the DISCOs and GENCOs, which have been turned in to private investors, stability till their hand over to their preferred

Improving distribution of electricity will help reduce poverty (and) will go a long way to improve the quality of medical care and raise educational standards bidders.

Igali made this known when the Senate Committee on Power visited the ministry in Abuja as part of their oversight functions, stating that due to the zero allocation to the PHCN successor companies, they have been having a hard time financing their operations.

Chairman of the Senate Committee, Senator Phillip

Aduda advised the ministry to ensure that all labourrelated issues with the PHCN workers were settled before hand over to the preferred bidders to avoid litigations or other problems that could affect the gains so far achieved with the privatisation exercise.

Kaduna Electricity Company warns staff

against extortion The Kaduna Electricity Distribution Company, KEDC, has warned that it would punish any of its staff involved in extorting money from customers. KEDC is one of the power distribution companies created from the unbundling of the Power Holding Company of Nigeria, PHCN. Addressing the Customers’ Consultative Council at Sabon-Tasha Business Unit forum in Kaduna, the Managing Director of KEDC, Malam Mohammed Idris, said the management was worried by frequent complaints of monetary extortion by its staff.

Idris said the company was determined to deliver quality service to customers and

would not allow any bad eggs to tarnish the image of the company and rubbish its efforts to meet the aspirations of its consumers.

He said: "PHCN/KEDC is committed to ensure efficient service delivery which will meet customers’ satisfaction at all times."

Idris said the company designed the forum to create an opportunity for customers to rub minds with the company’s management on issues of quality of services with a view to finding solutions to identified problems.

He urged electricity consumers not to relent in reporting erring staff of the company who, under any guise, demanded money from them to fix any damaged property of PHCN/KEDC.

Power

2013 June, SweetcrudeReports

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Power holding gone wild OSCARLINE ONWUEMENYI

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he wanton impunity and malfeasance exhibited by officials of the Power Holding Company of Nigeria, PHCN, can appropriately be described as an insult on injury to millions of Nigerians who prayerfully continue to expect the minutest of improvement in electricity supply.

For instance, only a few months after the Nigerian Electricity Regulatory Commission, NERC, a n n o u n c e d t h e implementation of the MultiYear Tariff Order, MYTO, which led to the “slight” increase in electricity tariff by the Power Holding Company of Nigeria, PHCN, the Commission called for the removal of the Meter Maintenance Fund, MMF, which, it said, would see some reduction in the monthly tariff paid by consumers across the country.

SweetcrudeReports investigations reveal, however, that months after the directive, PHCN offices across the country prey on the widespread ignorance of the populace on industry laws and regulations, to still continue to charge the MMF, among other sundry charges.

According to officials of the Commission, the PHCN Distribution Companies, DISCOs, no longer had justification for charging the maintenance fee since such a charge was adequately covered by the MYTO review.

The removal was expected to reflect in the October 2012 bill, which was presented to customers in November.

Last July’s MYTO review for the electricity sector was met with protests in some quarters due to the poor state of electricity supply in the country, with many claiming that the resultant hike would further worsen the economic condition of Nigerians. NERC officials then argued that the review was long overdue since it had been proposed by the previous administration.

Before the review, DISCOs were permitted to charge certain fees, including the Meter Maintenance Fund,

PHCN Office in Abuja

It comes as the Federal Government is on the verge of divesting sole ownership and control of successor PHCN companies to allow private equity and management in line with the spirit of the Electric Power Sector reform Act, 2005 which were aimed at helping them shore up their revenue base and make up for the limited funding from government. But, the MYTO review appeared to have taken care of such funding problem, making introduction of any additional charge a burden on the consumers.

In an interview with

SweetcrudeReports, the chairman of NERC, Dr. Sam Amadi, expressed sympathy with electricity consumers, maintaining that there had been little or no improvement in the state of power supply in the country since the power reform was initiated by the Olusegun Obasanjo government in

2005.

He added that “the state of electricity generation in this country is so terrible that one patriotic duty of every Nigerian is to speak strongly and critically about what needs to be done to review the situation. To us at the Commission, there cannot be a better time than now to put issues plaguing the sector back on the front burner.

“It comes as the Federal government is on the verge of divesting sole ownership and control of successor PHCN companies to allow private equity and management in line with the spirit of the Electric Power Sector reform Act, 2005.”

Need for ef fective regulation NERC, to this extent has promised to sanction or prosecute any chief executive officers of DISCOs who allow their business units to exploit electricity consumers in the country.

The energy regulator noted that after only about two weeks of implementing the new electricity tariff structure, the Commission was flooded by complaints and queries over alleged violations of the conditions of order, including illegal billing and other unreasonable charges for electricity meters and estimated billing.

Kaduna power firm warns staff against extortion

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he Kaduna Electricity Distribution Company, KEDC, has warned that it would punish any of its staff involved in extorting money from customers.

KEDC is one of the power distribution companies created from the unbundling of the Power Holding Company of Nigeria,

PHCN. Addressing the Customers’ Consultative Council at Sabon-Tasha Business Unit forum in Kaduna, the Managing Director of KEDC, Malam Mohammed Idris, said the management was worried by frequent complaints of monetary extortion by its staff.

Idris said the company was determined to deliver

quality service to customers and would not allow any bad eggs to tarnish the image of the company and rubbish its efforts to meet the aspirations of its consumers.

He urged electricity consumers not to relent in reporting erring staff of the company who, under any guise, demanded money from them to fix any damaged property of PHCN/KEDC.

"You are not expected to pay for the repairs or contribute money for the purchase of any of PHCN/KEDC installations in your communities," Idris said.

Earlier in an address, the Business Manager of SabonTasha Business Unit, Mr Gideon Adewuyi, promised that the unit would operate an effective customer care centre to enhance good public relationship.

Labour

2013 June, SweetcrudeReports

Nigerian Port

Maritime workers insist on strike over NIMASA, NLNG face-off ELUONYE KOYEGWAEHI

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eaders of the M a r i t i m e Workers Union of Nigeria, MWUN, have insisted on shutting down the nation’s maritime sector over alleged refusal of Nigeria LNG Limited, NLNG, to pay up statutory levies to the Nigerian Maritime Administration and Safety Agency, NIMASA. MWUN had in the second week of the month of May, in a petition to President Goodluck Jonathan, issued a 21-day notice to NLNG to pay, without further delay, the accumulated 3% levies on gross freight and 2% surcharge due on its cabotage contracts to NIMASA, failing which the union said it would shut down ports operations in the country. At a rally to

TUC argued that whether such vessels were owned or chartered by the NLNG subsidiary, Bonny Gas Transport Limited, the truth was that the vessels engaged in cabotage trade and should therefore, make payments to NIMASA commend President Jonathan for ongoing capacity building and oversea training of Nigerians in critical maritime sector, the union warned that at the expiration of its ultimatum, the ports would be shut down, if the issue was not resolved in favour of NIMASA. President-General of MWUN, Anthony Nted Emmanuel, said: “We have made it clear that after 21

days, if the issue is not resolved, and NIMASA paid accordingly, we will shut down the sector. We hear they are meeting; our concern is not meeting, but resolution that will compel NLNG to pay the accumulated levies and dues.

"This affects our members and their training. The default started in 2004, but

we hear there is agreement for the payment to commence in 2009. But, the payment has not been effected. So, we are waiting and mobilising".

In the petition to President Jonathan, the union had pleaded with him to intervene in the dispute between NIMASA and NLNG, and compel the latter to pay the statutory levies in the interest of the welfare and training of dockworkers and seafarers.

Similarly, Trade Union Congress of Nigeria, TUC, urged President Goodluck Jonathan to call NLNG to order over the refusal to pay to NIMASA the levies of 3% gross freight on international inbound and outbound cargoes carried by NLNG vessels engaged in cabotage trade.

TUC argued that whether such vessels were owned or chartered by the NLNG subsidiary, Bonny Gas

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Transport Limited, the truth was that the vessels engaged in cabotage trade and should therefore, make payments to NIMASA. Nted further said: “We are aware that the law setting up NIMASA - the NIMASA Act 2007 - in section 15, stipulates that the agency shall be funded by monies accruing to it from, among other sources, 3 percent of gross freight on all international inbound and outbound cargoes from ships or shipping companies operating in Nigeria. The law also makes it clear that all ships and shipping companies operating in Nigeria are expected to obey this provision.

He strsseed that it was the statutory responsibility of NIMASA to undertake the training, certification, development of seafarers and dockworkers in order to meet the needs of the industry and that "the said refusal by the NLNG to pay the accumulated 3% gross freight on its business activities from its inception in 1989 to date has drastically reduced the revenue available to NIMASA and in turn undermined its ability to carry out its operations".

"This Union strongly believes that the NLNG should be subject to the laws of this country because it is operating and doing business in Nigeria,” he added.

Commending the Federal Government for the level of capacity building that has enabled Nigerians take up critical jobs in the nation’s maritime industry, the MWUN President-General urged that more should be done to ensure that Nigeria would, in the nearest future, become a supplier of highlytrained professionals in the maritime industry.

According to Nted, over 2,000 Nigerians have so far been sent abroad for training as captains, marine engineers, naval architects, among others while another 1,000 would be going for similar training before the end of the year.

He recalled that Nigeria used to own a fleet of vessels managed by the Nigerian National Shipping Line as he expressed regret that these had disappeared while the captains, marine engineers and other highly trained professionals had left the country in search of greener pasture.

Labour

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NUPENG rues casualisation of workers, unemployment ELUONYE KOYEGWAEHI

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he National U n i o n o f Petroleum and Natural Gas W o r k e r s , NUPENG, has decried increasing casualisation and outsourcing of workers in the nation’s oil and gas industry, and vowed to fight all forms of unfair labour practices in the industry.

Similarly, the union warned that unemployment remained "a time bomb" and a serious threat to Nigeria’s stability and survival.

Speaking at a special delegates conference of the union in Lagos, President of NUPENG, Achese Igwe, said: “The issue of unemployment has become cancerous and eating up everybody. All hands must be on deck to provide jobs for our youths, before the bubble bursts. In this regard, skill acquisition centres must be built, with empowerment schemes, so that our youths can be self employed. " T h e i s s u e o f casualisation/outsourcing has been with us for some time now. The union vehemently kicks against this modern day slavery, and employers in the oil and gas industry, especially the multinational oil companies, are the most guilty.

"The attempt by Chevron Nigeria Limited to convert the big six labour contractors to service contractors was vehemently resisted by the union. At the end, another 16 contractors were appointed, but, the union ensured that all the workers were migrated and their severance benefits paid to them.

"We will continue to fight it and make sure that our members enjoy good condition of service. We will not rest on our oars in the fight for unionisation of our members, as it is their inalienable right to associate, organise and negotiate collectively.”

On the state of the local refineries, he said it was a “sad commentary that the nation's four refineries are still in comatose. They are not working at optimal capacity.

Protesting workers

The turn-around maintenance, TAM, is only on paper. We continue to import petroleum products to the detriment of our economy. We call on the Federal Government to fix the refineries to reduce importation and even establish new ones.”

But, he commended the plan

by Alhaji Aliko Dangote to build a 400,000 barrel per day refinery in the country, expected to come on stream in three years time. "We hereby call on the Federal Government and other wealthy Nigerians to invest in the refinery sector to create jobs for our teeming unemployed youths and stop the importation of petroleum products," Achese said.

On the issue of illegal refineries and oil theft that is rampant in the Niger Delta region, he urged that the government assemble "these refiners and give them further training and establish legal refineries for them to work in, in the regions, instead of chasing them around the creeks and destroying their tools. This will go a long way to

We hereby call on the Federal Government and other wealthy Nigerians to invest in the refinery sector to create jobs for our teeming unemployed youths and stop the importation of petroleum products reduce unemployment and restiveness in the area.”

But, he expressed the union's displeasure with "unscrupulous Nigerians who take delight in vandalising oil pipelines for pecuniary gains", saying their activities "has robbed the nation of billions of dollars that should have been used for development i n a d d i t i o n t o environmental degradation and pollution they cause".

The union called on the government to establish a pipeline protection agency that will be saddled with monitoring, protecting and salvaging the over 5,000 kilometres stretch of

pipelines that traverse the nooks and crannies of the nation.

Lamenting the long wait so far for the passage of the Petroleum Industry Bill, PIB, the union called for a quick passage of the bill, but urged objectivity in the consideration and passage of the bill, especially on labour issues of gratuities, pensions, transfers and status of our members in new companies that will emerge Recalling some of the achievements of his administration, Igwe said: “During the period under review, my administration acquired zonal offices in Port Harcourt, Warri, and Lagos,

which is due for commissioning soon. The Kaduna property has also been identified and payment will soon be made.

"We also bought operational vehicles for the secretariat and four zonal councils for efficient administration and mobility. The national secretariat in Jibowu (Lagos) is presently undergoing a face-lift to give it a new status. On Education and training, I am happy to declare that all National Executive Council, NEC, members attended overseas training courses in Dubai, London and Houston in the United States of America".

He added: “We are starting another batch this year, precisely in May, 2013. We are proud to announce that some of our NEC members will go to the United States for a course. This we are doing in our firm belief to educate the members on modern trends in industrial relations.

“The Union has also acquired a massive expanse of land in Eleme, in Port Harcourt for a tanker park. It is about 47 hectres or 700 plots of land.

Labour

2013 June, SweetcrudeReports

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A job seeker

In Uganda, petroleum graduates can’t find oil jobs

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hen Moses O n e g i joined the Uganda Petroleum Institute in Kigumba, UPIK, in 2010, his ambition was to work in one of the international oil companies, or the energy ministry.

Born in Nebbi district, West Nile, an area in Uganda thought to hold vast amounts of oil deposits, Onegi is among the 28 pioneer students of UPIK. By the time he joined UPIK, Onegi was already a graduate of engineering and a tutor of civil engineering at Pakwach Polytechnic. He abandoned his teaching career to join the bandwagon of Ugandans studying oil-related courses following the country's discovery of the black gold.

"Everyone was talking about oil and gas and the potential of getting wellpaying jobs," he explains.

While at UPIK, Onegi was a student leader and says members of the pioneer class often considered themselves lucky. "We knew the whole country was behind us, and we would immediately get

jobs," he said. Things would later turn out differently.

UPIK was established in 2010 as part of a strategy to enhance local content in the nascent petroleum industry.

The institute offers a diploma in technical skills related to oil and gas, followed by an additional six-months training in Trinidad and Tobago. The

courses at UPIK are designed to impart highlevel practical skills in areas such as drilling, pipefitting and health and safety, among others.

"I thought I would get a job immediately after finishing the course. I'm still looking for a job," Onegi reveals. "I am now well-qualified but

can't find a job," he complains bitterly.

Moses Arupei, Onegi's course-mate, also abandoned his career in information technology to chase his oil and gas dream.

By the time he joined UPIK, Arupei was a graduate of Computer Science from Makerere University. "I had

a job, but at the same I had interest in serving Uganda as an informed person in oil and gas. It was a virgin area," he says.

At UPIK, Arupei says, government paid for everything. "All of us were government-sponsored students," he says with a sense of pride.

Female oil workers seek help for vulnerable children

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he Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has called on the Federal Government to ensure that the structure and mode of disbursement of the Petroleum Host Community Fund, PHCF, are clearly enshrined in the much-awaited Petroleum Industrial Bill, PIB. Mr Chika Onuegbu, National Industrial Relations officer of PENGASSAN said the call was being jointly made with NUPENG. He

maintained that the mode and structure of the fund disbursement to host communities were not outlined in the PIB. “There must be clear provisions on the administration of the fund, including such provisions, allowing the communities to decide for and by themselves the value-adding projects required by the respective communities. We believe that the PHCF should include not just oil producing communities, but all communities hosting oil and gas resources and assets including downstream

infrastructure,” he said.

According to him, “This is because the entire value chain of the oil and gas industry has peculiar h e a l t h , s a f e t y , environmental and community related problems. A mechanism can then be developed to determine each asset’s criticality with the producing communities obviously being the most critical”.

Onuegbu said with that, no part of the country hosting any oil and gas resources, assets or facilities, would feel short-changed as it

would derive socio-economic benefits from being a host.

He said the PIB was not clear on whether contributions by companies along oil and gas value chain to the PHCF would constitute immediate credit to total fiscal rent obligations.

The PIB proposes that oil producing companies pay 10 per cent of their profits to the PHCF to provide socioeconomic infrastructure in the host communities. The communities are, however, not to draw from the fund if there is sabotage of petroleum facilities in their domain.

Labour

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A retiree

Labour leader counsels retirees on lifestyle

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hairman, Petroleum T a n k e r s Drivers Unit of the National Union of Petroleum and Natural Gas Workers, NUPENG, Ibadan, Salmon Oladiti, has advised potential retirees to cut down on their lifestyles.

Oladiti said in a lecture paper entitled: “Developing Financial Literacy for StressFree Retirement,” in Ibadan that retirees should shun such things as smoking, alcohol consumption, drinking outside the home, gambling and laziness.

According to him, other negative tendencies include having numerous wives and concubines, eating unhealthy foods and not creating time for leisure.

"Most important of all, don't buy anything that constitutes a liability. A liability is anything that takes money out of your pocket no matter what they are worth in the future. Think in terms of cash flow. What can I invest in

today that will give me funds tomorrow?" Oladiti said.

He said, in planning for retirement, there was need for civil servants and private sector workers in the country to have financial literacy,

explaining that developing a healthy relationship with money and building a wealth of assets would generate steady income.

He also said: "When you invest in yourself, it means

taking on the importance of educating yourself.

Education not in the academic or technical sense, there are necessary skills to be developed in life. Our education does not stop at

the college only".

He said the best form of education for potential retirees was financial education with investment in financial Intelligent Quotient

SURE-P: Community Service Scheme to employ more

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h e Community S e r v i c e Scheme, CSS, Implementation unit of the Subsidy Reinvestment and Empowerment Programme, SURE-P, domiciled in the Federal Ministry of L a b o u r a n d Productivity, is set to commence the second phase of the scheme by employing 2,000 persons in each of the 36 of the federation and the Federal

Capital Territory.

This will bring the total number of beneficiaries of the scheme in each state to 5,000 persons.

Minister of Labour and Productivity, Chief Emeka Wogu stated this in Abuja during the twin events of his meeting with the vice chairmen of the CSS State Coordination and I m p l e m e n t a t i o n Committee, and training of technical officers of the scheme from across the 36 states of the federation.

The minister announced: “I can tell you categorically

that in each of the 36 states of the federation, including the Federal Capital Territory, we have engaged 3,000 persons per state in the Community Service Scheme of SURE-P, we are set to begin the second round of the scheme with the intention of engaging additional 2,000 persons in each state of the federation and FCT”.

He charged the vice chairmen of the State Coordination and Implementation Committee, SCIC, to bring their professional and technical

knowledge to bear towards achieving the target of the scheme as set by the Federal Government.

According to him, “Your roles and responsibilities as the secretariat of the SCIC and your functions as the work station/technical base of this project at the state level must be taken seriously by bringing the full weight of your professional and technical knowledge to bear on the delivery process to ensure smooth and efficient implementation process to achieve the set goal of the Community Service Scheme of SURE-P”.

Freight

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Nigerian Customs reaffirms competency as DI contracts go sour YEMIE ADEOYE

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he Destination Inspection, DI, s e r v i c e contracts c o v e r i n g Nigerian seaports and borders awarded to three foreign concessionaires by the Federal Government have become enmeshed in controversy.

This is happening as the contracts near their expiration date of June 30, 2013. The DI concessionaires are Cotecna, SGS Ltd and Globalscan Systems Ltd. SweetcrudeReports gathered that while a section of maritime stakeholders are clamouring for an end to the contract and a handover of the contract to the Nigerian Customs, which is statutorily entrusted with the job, some of the concessionaires are resorting to intrigues and subterfuge.

Globalscan Systems, for instance, is claiming unpreparedness and inability of the Nigeria Customs Service, NCS, to take over and effectively manage the scanning machines at the ports and borders.

But, the Customs has dismissed the allegation as “desperate claims to retain a non-performing contract.” It said it has successfully repositioned for a takeover ahead of the contract expiration.

The contracts initially expired on December 30, 2012, but the Federal Government extended it for six months, making June 30, 2013 the new termination date.

According to statements credited to Globalscan’s chief executive officer, Mr Fred Udechukwu, “Nigeria risks the outbreak of cancer” at the ports and borders if the cargo scanning machines are handed over to the NCS operatives.

As this ‘war’ rages, Mr Udechukwu, has, however, denied making the statements in advertorials in

Customs officers on inspection

some national dailies.

Also, some industry stakeholders are expressing fear of a possible collapse of the goods clearing system as the service providers prepare to exit their contracts and the system gets reverted to NCS.

According to an industry observer, the fear is not based on the capability of Customs to run the system but the bureaucratic hurdles associated with public service.

The NCS, meanwhile, has

issued a statement, reaffirming its competency to handle the DI machines. It said it had trained 5,000 of its officers on different aspects of Destination Inspection of cargo clearance.

Mr Adewale Adeniyi, the Public Relations Officer of the Service, said the service had surpassed the designated number of officers that were expected to be trained.

NIMASA, Navy working together to expose oil thieves – Akpobolokemi

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r. Patrick Ziakede Akpobolo kemi is Director General, Nigerian M a r i t i m e Administration and Safety Agency, NIMASA. In a recent interactive session with journalists in Abuja, Akpobolokemi spoke about the nation’s apex maritime regulatory agency and its efforts to entrench a healthy national maritime

environment.

He also spoke on the ongoing Federal Government war against oil thieves, disclosing that NIMASA will soon reveal the "big names" behind piracy and crude oil theft syndicate in the country.

Akpobolokemi said: "There are some big vessels under my custody belonging to organised piracy and crude oil thieves. Very soon, I will release all the big names in the syndicate.

"Once we do that, people should not come and say it is ethnic cleansing, it is 2015

or all these kinds of stories.

That is why we want the media to stand by the truth and ask: 'did you do the piracy?'

"Even if it is political vendetta, at least you committed the crime. We will take it from that point. That is what I am particular about.

"This is not an issue of political victimisation. If you have stolen, you have stolen".

Concerning prosecution of people arrested for violating maritime laws, the NIMASA boss stated: "This is a country that is governed by

laws and you cannot say because somebody has been involved in piracy and when you are not under threat you go and kill him.

"You cannot torture him.

You have to hand the person over to another agency that has the power of criminal investigation. If the thing (prosecution) does not go the way you want, it is like you are handicapped, because you can only arrest but the prosecution would be given to another agency that has the power to do that".

Freight

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Checkpoint

Globalscan laments under-utilisation of scanners at Seme border TOJU VINCENT

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ndigenous destination inspection ser vice p r o v i d e r , Globalscansystem Limited, has raised alarm over low usage of its equipment at the Seme border post despite its sophistication and efficiency.

Speaking to journalists during a recent tour of the equipment at the Seme border, Globalscan Chief Executive Officer, Mr. Fred Udechukwu, said the two sophisticated scanners cost euro12.5 million, adding that the scanners were effective even as he stressed that their under-utilisation has become a problem.

Udechukwu said the equipment was available for scanning anytime within the working periods and that the scanners have the capacity to scan on a 24 hour basis.

The Globalscan boss affirmed that the mobile scanner can assess 160 trucks par day, which, according to him, meant it could scan 20 trucks under an hour.

Udechukwu disclosed that the mobile facility at the border post takes three minutes to

assess a truck and that, in three shifts which the company operates, this results to 480 trucks being assessed in a day.

He noted that though Globalscan has the capacity to scan 480 trucks, the trucks are not available for scanning, adding that it is what the Nigerian Customs Ser vice releases to

TOJU VINCENT

T

he Maritime Arbitration Association of Nigeria, MAAN, has urged the use of Alter native Dispute Resolution, ADR, in the Nigerian maritime industry to ensure more ef ficiency and ef fectiveness in the resolution of disputes in the sector and to help grow the economy.

MAAN President, Chief Gbola Akinola, made the call at the 5th Maritime Dispute R e s o l u t i o n s e m i n a r, saying settlement of

them that they inspect.

He disclosed that the mobile scanner cost 3.5 million euro while the fixed scanner cost the company a total of 9 million euros.

Accor ding to him, the company has in its employment 160 personnel, all Nigerians, even as affirmed

that the indirect staff summed up to be 200.

The scanning expert said that the company has sites at Warri, Calabar, PTML and three sheds at Murtala Muhammed Airport and at the border post.

Udechukwu reiterated that for a truck to be scanned, it must meet three conditions,

and that these conditions include that such truck must have the specified measurement, must have been released by the Customs for scanning and must have the necessar y document which includes the RAR and others.

MAAN urges use of ADR for maritime-related disputes disputes between or amongst carriers, shippers and other stakeholders in the maritime sector using various means of ADR is essential to the development of the Nigerian economy.

Akinola noted that this will not only save time and money, but could be handled in such a way that both parties can continue in business after resolution of such cases.

He said: “The sea is the medium through which goods originating from and destined for different parts of the world

are transported. Seaports are much safer for ships to load and unload as they help build and grow international trade which strengthens the national economy “Seaports fuel economies by providing high paying jobs while supporting employment in other sectors such as freight logistics and retailing that rely on ef ficient movement of goods. Therefore, having in place a forum for settling commercial disputes between or amongst carriers, shippers…the use of various

means of alternatives disputes resolution is essential to the development of the Nigerian economy”.

According to him, the association and the Nigerian Shippers' Council are committed to promoting sound arbitration and ADR practices within the maritime industry by training highly skilled and resourceful maritime alternative dispute resolvers whilst promoting Nigeria as a venue for the settlement of maritime disputes through arbitration and ADR.

Freight

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Customs counsels LCCI on promotion of local goods

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he Lagos Chamber of Commerce and Industry, LCCI, has been advised to promote goods made in Nigeria during the upcoming 2013 Lagos International Trade Fair.

Making the charge, co-ordinator, Nigeria Customs Service, NCS, Zone A in Lagos; Victor Gbemudu, said the service was prepared to partner with LCCI to achieve high demand by foreigners for locally-made goods.

Gbemudu, an Assistant Comptroller-General of Customs, said: “We believe so much in trade facilitation. This regime, under the ComptrollerGeneral Abdullahi Dikko has been canvassing patronage of made-in-Nigeria goods.

“We want to encourage the Lagos Chamber of Commerce to support the Transformation Agenda of President Goodluck Jonathan through the coming trade fair.

“I also encourage the organisers to use the trade fair to create a forum where made-in-Nigeria goods will be displayed abundantly”.

According to him, the service was ready for a partnership with LCCI that would ensure high demand by foreigners Nigerian goods during and after the fair.

The Nigerian Export Promotion Council had been working hard to ensure that duties on exports were greatly reduced, he said, adding that be commendable if more local manufacturers are able to export their goods.

Cadets on parade

MAN to spend N2bn on overseas training for 250 cadets TOJU VINCENT

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he Maritime Academy of Nigeria, MAN, plans to send 250 cadets abroad for compulsory training.

The move is informed by the difficulty encountered by young Nigerian marine cadets in getting job placement occasioned by their inability to get sea time training.

The management of the academy is hoping that by sending the 250 cadets for training abroad, they would acquire qaulity sea time

The money is meant to pay for their upkeep, part of the money will also be spent on the maintenance of their working tools and equipment training that they are well prepared to face the world.

At a recent interactive session with journalists, the rector of the academy, Dr. Joshua Okpo, said the first 20 cadets were being used as a pilot programme for the entire

project, adding that the Ministry of Transport has been intimated of the plan.

The rector explained that while about 100 of the cadets are from the nautical science department, 150 are from the marine

engineering department.

He stated that it was the desire of the academy to make government fund the project, but that the government needed to be convinced before being approached.

According to him, about N8 million has been budgeted for each of the cadets and the amount will cover their living expenses and general upkeep. “The money is meant to pay for their upkeep, part of the money will also be spent on the maintenance of their working tools and equipment. We want government to fund the

project but government needs to be convinced, we must first of all do a pilot project,” he stated.

Okpo further stated that the academy was looking forward to partnership with both the Nigerian Ports Authority, NPA, and the Nigerian Maritime Administration and Safety Agency, NIMASA, in the provision of boats for the training needs of its cadets.

The maritime academy is also partnering with both the International Maritime Organisation, IMO, and the World Maritime University, WMU, for the purpose of affiliation.

Freight

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Lekki Port to create 170,000 new jobs, says MD

Aerial view of the planned Lekki Port, now under construction

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anaging Director of Lekki P o r t L F T Z Enterprise, Mr. Haresh Aswani, says the Lekki Deep Sea Port currently under construction at the Lagos Free Trade Zone, LFTZ, will create 170,000 new jobs.

According to Aswani, the port, expected to be completed in 2016, will also generate $361 billion from its concession.

The project is being undertaken by the Tolaram Group, a Singapore-based conglomerate, in conjunction with the Federal and Lagos State governments.

“The $1.53 billion Lekki Port project will have an aggregate impact of $361 billion on the Nigerian economy over the period of the concession,” he said, adding that the project had

so far gulped about $800 million (N128 billion).

The port occupying 90 hectares of land will serve as a multi-purpose facility, handling various types of cargoes, including containers and liquid bulks.

Aswani, who said the port was planned to fill projected capacity gap at the Apapa Port, stated that about $800 million had so far been raised from banks towards the construction of the facility.

Financial commitment had also come from the Lagos Government, he said.

Federal Government share of the funding is $117million, which is yet to be received.

The managing director further said of the project: “The new Lekki Port has capacity to accommodate larger vessels, offers optimised storage area and ease of expansion; the state-of-the-art equipment as well to facilitate relocation of Tank Farms.

The new Lekki Port has capacity to accommodate larger vessels, offers optimised storage area and ease of expansion; the state-of-the-art equipment as well to facilitate relocation of tank farms “In addition, it is expected to contribute more than $361billion to the economy while also creating close to 170,000 new jobs.

Furthermore, Lekki Port will spur the economic development around the Lekki sub-region and on a wider perspective, the Lagos State through rapid industrialisation.

“In a bid to ensure, smooth and efficient operations,

Lekki Port has engaged the services of leading global consultants such as the Louis Berger Group Inc, Delta Marine Consultant and Berger ABAM. The container terminal has been sub-concessioned to International Container Terminal Services Inc, Philippines.

“The EPC construction contract has been issued on a turnkey basis to China

Harbour Engineering Company which mobilised their men and machinery in August 2012 and is already in the last lap of preconstruction investigations and site preparation activities.

“Lekki Port has been conceptualised on the basis of a significant gap in projected demand and capacity, needed to be met in conveying goods to and from Nigeria”.

Lekki Port Project manager, Tejaswi Vanamali harped on the strategic location, optimal layout and modern facilities provide Lekki Port, saying these had offered competitive edge to the port and distinguished it from other port facilities in West Africa.

According to him, the involvement of the Lagos State government and the Nigeria Ports Authority, NPA, in the project was an indication of confidence in the Public-Private Partnership, PPP, model adopted to bridge the gaps in infrastructure development.

“Our commitment to ensuring that we meet the scheduled operational date has seen us spare nothing in achieving it. As at today, we are happy to confidently say that all market engineering and impact studies have been completed over the last six years, likewise the Lekki port site has been gazetted as port area by the Federal Government.

“It is important to note that the Environmental Import Assessment study (EIA) has been fully completed with World Bank guidelines.

“Container terminal subconcession has been awarded to International Common User Terminal Operator (ICTSI) focusing on emerging markets after a tedious competitive bidding.

“Also, shareholders agreement has been signed between the sponsors, NPA and the Lagos State Government. We are very much on course and in no distant time, Nigerians and the entire West African region would witness an evolution never seen before,” Vanamali stated.

Motoring

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2013 SUV Buying Guide

What you should know before buying an SUV Top Recommended SUVs

Top Recommended

2013 Honda CR-V 2013 Ford Escape 2013 Mazda CX-5

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he car-based crossover has revitalized the market for utility vehicles, as this new breed combines the trucklike utility that Americans prefer with the carlike comfort and fuel economy they expect. Oldschool, truck-based SUVs are still the default choice for towing and rugged off-road adventure, but crossovers are becoming more capable for these tasks as well. Overall, utility vehicles appeal to consumers looking for an extra-spacious passenger package with an easily accessible place for cargo.

And while the number of super-size, truck-based SUVs has dwindled, the compact crossover subcategory is one of the fastest-growing vehicle segments. Here we don’t separate SUVs from crossovers (in some instances the distinctions between the two are negligible), but instead divide the entire category by price range.

SUVs Under $34,000

The Ford Flex is equal parts manageably sized minivan and budget limousine. The Flex’s boxy profile and vast interior mean you get almost all of the utility — and passengercarrying capacity — of a minivan, but with none of the minivan stigma. Its carlike height means there’s no clambering up to get inside, while its carlike driving manners make it corner and steer a lot sharper than most minivans or crossovers. The optional EcoBoost V6 scoots the delightfully substantial package with authority, plus there’s almost no fuel economy penalty compared with the base V6, although you have to watch the bottom line, as EcoBoost-equipped models can get pricey.

True to Mazda’s reputation

2013 Honda CR-V

2013 Ford Escape

SUVs Under $25,000

When it comes to transportation for small families, it’s hard to beat the Honda CR-V . Thoughtful design and useful features are evident throughout, while the CR-V’s generous interior dimensions make easy work of hauling people and cargo.

On top of that, excellent safety scores offer a high level of confidence when shuttling your precious cargo, plus the CR-V’s favorable fuel economy is a big plus for your budget. One of the only drawbacks is the lack of a more powerful engine option, but we still think most drivers will find the Honda CR-V appealing, especially when fuel economy is factored into the equation.

The Ford Escape is all-new this year and has managed to impress us right out of the gate. It checks off all of the

2013 Mazda CX-5 items that a small family needs — as all good crossovers should — and sweetens the deal with agile handling, a pleasing cabin and comfortable seating for all.

Unlike the Honda, the Ford Escape gives buyers the choice of three engines that all achieve favorable fuel economy ratings. Budget-conscious buyers should keep tabs on their options, though, as the price can climb very quickly as items are added.

Also new this year is the Mazda CX-5 , which receives similar high marks as the Honda CR-V and Ford Escape.

Additionally, the Mazda comes

with daring styling plus a dash of fun-to-drive character. As an added bonus, the CX-5 could leave a couple thousand dollars in your pocket compared to the other crossovers. The Mazda CX-5 is a relative newcomer to our list, but its new position is certainly well deserved, especially since it puts so much sport into a segment that is otherwise perhaps a little too preoccupied with family values. The Mazda CX-5 crossover offers adventure, not just a trip to the store.

2013 Ford Flex

2012 Mazda CX-9

for making great vehicles that often are overshadowed by the fare from larger competitors, the Mazda CX-9 is one of the most satisfying three-row crossover SUVs you can buy at a price that is comfortably below $34,000, yet it goes widely unappreciated. When it comes to driving, the Mazda CX-9 puts the sport in sportutility, and this makes it a favorite with us. Tool out to the mall in the CX-9 and you’ll be astonished at how nimbly a seven-passenger crossover can drive. Exterior styling is clean and understated, while the interior is filled with convenience features, trimmed with uncommonly nice materials and assembled to a visibly high standard. Buying Mazda’s CX-9 proves the wisdom of zigging while the rest of the world zags.

Hauling plenty of people or CONTINUES ON PAGE 40

Motoring

2013 June, SweetcrudeReports

What you should know before buying an SUV CONTINUED FROM PAGE 39

2013 Volvo XC60 2013 GMC Acadia gear without fuss is the strong suit of the GMC Acadia , which takes a detour from the brand’s ruggedtruck image to put the emphasis on comfort and refinement. As many as eight occupants can travel in the Acadia, while optional allwheel drive can see you through inclement conditions. But the Acadia is one of our top choices mainly because of its blend of versatility and premium attributes — dirty it up towing muddy off-road motorcycles on Saturday and yet the Acadia cleans up well enough to merit out-front parking at a fancy restaurant later that evening. The GMC Acadia is the new interpretation of the classic American car.

Top Recommended 2013 Ford Flex 2012 Mazda CX-9 2013 GMC Acadia

SUVs Under $40,000

Opulent but not ostentatious, the Audi Q5 is responsibly dimensioned, has a high-quality interior and is packed with performance and utility that exceed its modest footprint. As you might expect from its European provenance, the Q5 emphasizes agile handling and confident high-speed cruising. You can choose from a wide range of powertrains that offer different combinations of performance

2013 Audi Q5

and efficiency, encompassed by a thrifty-but-thrusty turbocharged 2.0-liter fourcylinder, a heavenly supercharged V6 or even a hybrid. Meanwhile, Audi’s customary all-wheel-drive system is standard, but things start to get expensive once you get to the hybrid.

The Swedish aesthetic is in full force with the Volvo XC60 , a crossover that demonstrates how hip “sensible” can be. The XC60’s styling intrigues from all angles with its austere Scandinavian coolness, while the well-trimmed interior is deceptively spacious, not to mention refreshing in its lack of buttons. Meanwhile, the XC60 sublimates Volvo’s wonky, safety-first legacy with an emphasis on driving dynamics, particularly from the turbocharged T6 models.

It’s a $6,000 jump from the base model to the T6 in order to get all-wheel drive, so check out the front-drive XC60 if you like what the XC60 says but don’t necessarily need allweather traction.

The first generation of the BMW X3 crossover wasn’t one of the company’s better efforts, but all that’s changed now and the X3 is one of our top choices for an entry-luxury crossover.

The new turbocharged fourcylinder engine is a performance marvel and is uncommonly frugal, while the 300-horsepower inline-6 helps deliver BMW nirvana in a crossover wrapper. The X3’s interior is lusciously styled

2013 BMW X3 and trimmed, while even the base model BMW X3 offers an unusual amount of standard content, including all-wheel drive and an engine stop-start system that enhances fuel efficiency.

Top Recommended

2013 Audi Q5 2013 Volvo XC60 2013 BMW X3

SUVs Under $55,000

No matter which version of the Porsche Cayenne you select, it’s no subtle cruisearound-the-block proposition. Yes, the Cayenne makes a magnificent statement. Yes, you can spend as much as you want on a Cayenne, but at well less than our $55,000 price point, even the base Cayenne has a stunningly designed interior, standard all-wheel drive and some of the most muscular sheet metal in the crossover kingdom. At a smidge more than $55,000, the new Cayenne Diesel may be the thinking buyer’s choice, with performance that rivals the much pricier V8 variants and a 29 mpg rating on the highway.

The choices in this class don’t get any more allaround solid than the Acura MDX . Whether it’s the MDX’s front-line array of high-tech electronic features, the ample performance from its 300hp 3.7-liter V6 or the meticulous quality of its interior, the MDX simply doesn’t mess around. Mix in

A cura’s rep ut a tion for unbeatable reliability and resale value and the MDX is a can’t-miss proposition — unless you want to save some bucks and examine its little brother, the RDX , which was totally redesigned for 2013 and with 273 horses ain’t no slouch, either.

“Cavernous” isn’t really accurate to describe the Infiniti JX35 , because a cavern also would need exquisite leather-trimmed walls and enough high-tech firepower to please a midlifecrisis Batman. The JX35 is genuinely huge inside, including its rearmost row of seats, which can handle adults (at least for a while) and is accessed via a clever new seat-tilt design that allows child seats strapped in the second row to remain in place. Infiniti’s got an arsenal of available electronic features for the JX, including a system that will stop the JX completely before you reverse into something unseen. A poised highway ride and a hushed interior complement these impressions, although the V6 engine is still pretty thirsty despite the efficiency offered by the powertrain’s continuously variable transmission (CVT).

Top Recommended 2013 Porsche Cayenne 2013 Acura MDX 2013 Infiniti JX35

SUVs Over $55,000

Like your mom said, it’s what’s on the inside that counts, so consider the Infiniti QX56 for your next

40

luxury SUV. No longer built from a pickup truck platform, the new seven- or eightpassenger QX56 impresses with a combination of oldworld comfort and modern technology. A seven-speed transmission routes power from a powerful 5.6-liter V8 to either rear- or four-wheel drive, so cross-country trips feel effortless. Properly equipped, the QX is also capable of towing up to 8,500 pounds and features a tow/haul mode for the transmission as well as an automatic-leveling rear suspension. Criticisms are few, but a tight third-row seat and an exceptional fuel thirst should be noted.

Similarly well-outfitted for well-funded, large, active families in inclement climes, the seven-passenger, allwheel-drive Mercedes-Benz GL-Class fulfills its mission with a range of powertrains from which to select. Either the 4.7-liter V8 or 5.4-liter V8 will blast this full-size SUV to 60 mph in less than 7 seconds, while the 3.0-liter turbodiesel V6 has a cruising range of about 600 miles and can tow up to 7,500 pounds. This is a full-size SUV done in the Mercedes-Benz style, completely sophisticated and refined, like an S-Class sedan in a sport-utility suit. It might be an SUV, yet it makes every drive an occasion.

Finally, if either Rodeo Drive or the Rubicon Trail beckons, there are few tools as posh or as well equipped for the job as the aptly named Land Rover Range Rover .

With its impeccable 40-year pedigree of off-road prowess and a choice of two powerful V8 engines, the aluminumintensive Range Rover sheds some 700 pounds this year in an effort to improve its traditionally poor fuel economy. It will continue, however, to indulge up to five passengers thanks to an entirely redesigned interior that’s one of the most opulent extant, boasting a 1,700watt, 29-speaker audio system, front seats that can move in 20 different directions while massaging your buttocks in five different ways, optional LED ambient mood lighting, and a heated windshield. All this and goanywhere mobility besides, from snowy wilderness cabin to fashionable downtown restaurant.

Top Recommended

2012 Infiniti QX 2013 Mercedes-Benz GLClass 2013 Land Rover Range Rover

Technology

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Nuclear Energy

Alternative energy

A

lternative energy is any energy source that is an alternative to fossil fuel. These alternatives are intended to address concerns about such fossil fuels.

The nature of what constitutes an alternative energy source has changed considerably over time, as have controversies regarding energy use. Today, because of the variety of energy choices and differing goals of their advocates, defining some energy types as "alternative" is highly controversial.

In a general sense, alternative energy as it is currently conceived, is that which is produced or recovered without the undesirable consequences inherent in fossil fuel use, particularly high carbon dioxide emissions, an important factor in global warming. Sometimes, this less comprehensive meaning of "alternative energy" excludes nuclear energy (e.g.

The nature of what constitutes an alternative energy source has changed considerably over time, as have controversies regarding energy use as defined in the Michigan Next Energy Authority Act of 2002).

History

Historians of economies have examined the key transitions to alternative energies and regard the transitions as pivotal in bringing about significant economic change. Prior to the shift to an alternative energy, supplies of the dominant energy type became erratic, accompanied by rapid increases in energy prices.

Coal as an alternative to wood

Historian Norman F. Cantor describes how in the late medieval period, coal was the new alternative fuel to save the society from overuse of the dominant fuel, wood: "Europeans had lived in the midst of vast forests throughout the earlier medieval centuries.

After 1250 they became so skilled at deforestation that by 1500 AD they were running short of wood for heating and cooking... By 1500 Europe was on the edge of a fuel and nutritional disaster, (from) which it was saved in the sixteenth century only by the burning

of soft coal and the cultivation of potatoes and maize. "

Petroleum as an alternative to whale oil

Whale oil was the dominant form of lubrication and fuel for lamps in the early 19th century, but the depletion of the whale stocks by mid century caused whale oil prices to skyrocket setting the stage for the adoption of petroleum which was first commercialised in Pennsylvania, United States, in 1859.

Alcohol as an alternative to fossil fuels

In 1917, Alexander Graham Bell advocated ethanol from corn, wheat and other foods as an alternative to coal and oil, stating that the world was in measurable distance of depleting these fuels. For Bell, the problem requiring an alternative was lack of

renewability of orthodox energy sources. Since the 1970s, Brazil has had an ethanol fuel programme which has allowed the country to become the world's second largest producer of ethanol (after the United States) and the world's largest exporter. Brazil’s ethanol fuel programme uses modern equipment and cheap sugar cane as feedstock, and the residual cane-waste (bagasse) is used to process heat and power.

There are no longer light vehicles in Brazil running on pure gasoline. By the end of 2008 there were 35,000 filling stations throughout Brazil with at least one ethanol pump.

Cellulosic ethanol can be produced from a diverse array of feedstocks, and involves the use of the whole crop. This new approach should increase yields and reduce the carbon footprint because the amount of CONTINUES ON PAGE 42

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Coal also serve as energy source

Alternative energy CONTINUED FROM PAGE 41 energy-intensive fertilisers and fungicides will remain the same, for a higher output of usable material. As at 2008, there were nine commercial cellulosic ethanol plants which were either operating, or under construction, in the United States.

Second-generation biofuels technologies are able to manufacture biofuels from inedible biomass and could hence prevent conversion of food into fuel." As of July 2010, there was one commercial secondgeneration, 2G, ethanol plant Inbicon biomass refinery, which is operating in Denmark.

Coal gasification as alternative to petroleum

In the 1970s, President J i m m y C a r t e r ' s administration advocated coal gasification as an alternative to expensive imported oil. The programme, including the Synthetic Fuels Corporation

was scrapped when petroleum prices plummeted in the 1980s.

The carbon footprint and environmental impact of coal gasification are both very high.

Common types of alternative energy

Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar energy technologies include solar heating, solar photovoltaics, solar thermal electricity, solar architecture and artificial photosynthesis, which can make considerable contributions to solving some of the most urgent energy problems the world now faces.

Solar technologies are broadly characterised as either passive solar or active solar depending on the way they capture, convert and distribute solar energy. Active solar techniques include the use of photovoltaic panels and solar thermal collectors to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favourable thermal mass or light dispersing properties, and designing sp aces t ha t nat ura lly circulate air.

In 2011, the International Energy Agency said that "the development of affordable, inexhaustible

Solar technologies are broadly characterised as either passive solar or active solar depending on the way they capture, convert and distribute solar energy

and clean solar energy technologies will have huge longer-term benefits. It will increase countries’ energy security through reliance on an indigenous, inexhaustible and mostly importindependent resource, enhance sustainability, reduce pollution, lower the costs of mitigating climate change, and keep fossil fuel prices lower than otherwise.

These advantages are global.

Hence the additional costs of the incentives for early deployment should be considered learning investments; they must be wisely spent and need to be widely shared".

Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electrical power, windmills for mechanical power, wind pumps for water pumping or drainage, or sails to propel ships.

Large wind farms consist of hundreds of individual wind turbines which are connected to the electric power transmission network. Offshore wind is steadier and stronger than

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on land, and offshore farms have less visual impact, but construction and maintenance costs are considerably higher. Small onshore wind farms provide electricity to isolated locations. Utility companies increasingly buy surplus electricity produced by small domestic wind turbines.

Wind power, as an alternative to fossil fuels, is plentiful, renewable, widely distributed, clean, produces no greenhouse gas emissions during operation and uses little land. The effects on the environment are generally less problematic than those from other power sources. As of 2011, Denmark is generating more than a quarter of its electricity from wind and 83 countries around the world are using wind power on a commercial basis. In 2010, wind energy production was over 2.5% of total worldwide electricity usage, and growing rapidly at more than 25% per annum.

The monetary cost per unit of energy produced is similar to the cost for new coal and natural gas installations.

Wind power is very consistent from year to year but has significant variation over shorter time scales. The intermittency of wind seldom creates problems when used to supply up to 20% of total electricity demand, but as the proportion increases, a need to upgrade the grid, and a lowered ability to supplant conventional production can occur. Power management techniques such as having excess capacity storage, geographically distributed turbines, dispatchable backing sources, storage such as pumped-storage hydroelectricity, exporting and importing power to neighbouring areas or reducing demand when wind production is low, can greatly mitigate these problems. In addition, weather forecasting permits the electricity network to be readied for the predictable variations in production that occur.

Geothermal energy is thermal energy generated and stored in the Earth.

Thermal energy is the energy that determines the temperature of matter. The Geothermal energy of the Earth's crust originates from the original formation of the planet (20%) and from radioactive decay of minerals CONTINUES ON PAGE 43

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hydrogen fuel plant

CONTINUED FROM PAGE 42 (80%). The geothermal gradient, which is the difference in temperature between the core of the planet and its surface, drives a continuous conduction of thermal energy in the form of heat from the core to the surface. The adjective geothermal originates from the Greek roots (ge), meaning earth, and(thermos), meaning hot.

At the core of the Earth, thermal energy is created by radioactive decay and temperatures may reach over 5,000 째C (9,000 째F). Heat conducts from the core to surrounding cooler rock. The high temperature and pressure cause some rock to melt, creating magma convection upward since it is lighter than the solid rock.

The magma heats rock and water in the crust, sometimes up to 370 째C (700 째F).

From hot springs, geothermal energy has been used for bathing since Paleolithic times and for space heating since ancient Roman times, but it is now better known for electricity generation. Worldwide, about 10,715 megawatts, mw, of geothermal power is online in 24 countries. An additional 28 gigawatts of direct

geothermal heating capacity is installed for district heating, space heating, spas, industrial processes, desalination and agricultural applications.

Geothermal power is cost effective, reliable, s u s t a i n a b l e , a n d environmentally friendly, but has historically been limited to areas near tectonic plate boundaries. Recent technological advances have dramatically expanded the range and size of viable resources, especially for applications such as home heating, opening a potential for widespread exploitation.

Geothermal wells release greenhouse gases trapped deep within the earth, but these emissions are much lower per energy unit than those of fossil fuels. As a result, geothermal power has the potential to help mitigate global warming if widely deployed in place of fossil fuels.

The Earth's geothermal resources are theoretically more than adequate to supply humanity's energy needs, but only a very small fraction may be profitably exploited.

Drilling and exploration for deep resources is very expensive. Forecasts for the future of geothermal power depend on assumptions about technology, energy prices,

Nuclear binding energy is the energy required to split a nucleus of an atom into its component parts. The component parts are neutrons and protons, which are collectively called nucleons subsidies, and interest rates. Pilot programmes like EWEB's customer opt in Green Power Programme show that customers would be willing to pay a little more for a renewable energy source like geothermal. But as a result of governmentassisted research and industry experience, the cost of generating geothermal power has decreased by 25% over the past two decades. In 2001, geothermal energy cost between two and ten cents per kwh.

A biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases. Biofuels are gaining increased public and scientific attention, driven by factors such as oil

price hikes and the need for increased energy security.

However, according to the E uro p e a n E nv i ro nm e nt Agency, biofuels address global warming concerns only in specific cases.

Bioethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch crops such as corn or sugarcane. Cellulosic biomass, derived from nonfood sources, such as trees and grasses, is also being developed as a feedstock for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the USA and in Brazil. Current plant design does not provide for converting the lignin portion of plant raw materials to fuel

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components by fermentation.

Biodiesel is made from vegetable oils and animal fats. Biodiesel can be used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe.

In 2010, worldwide biofuel production reached 105 billion litres (28 billion gallons US), up 17% from 2009, and biofuels provided 2.7% of the world's fuels for road transport, a contribution largely made up of ethanol and biodiesel.

Global ethanol fuel production reached 86 billion litres (23 billion gallons US) in 2010, with the United States and Brazil as the world's top producers, accounting together for 90% of global production. The world's largest biodiesel producer is the European Union, accounting for 53% of all biodiesel production in 2010. As of 2011, mandates for blending biofuels existed in 31 countries at the national level and in 29 states or provinces. The International Energy Agency has a goal for biofuels to meet more than a quarter of world demand for transportation fuels by 2050 to reduce dependence on petroleum and coal.

Nuclear binding energy is the energy required to split a nucleus of an atom into its component parts. The component parts are neutrons and protons, which are collectively called nucleons. The binding energy of nuclei is always a positive number, since all nuclei require net energy to separate them into individual protons and neutrons. Thus, the mass of an atom's nucleus is always less than the sum of the individual masses of the constituent protons and neutrons when separated.

This notable difference is a measure of the nuclear binding energy, which is a result of forces that hold the nucleus together. Because these forces result in the removal of energy when the nucleus is formed, and this energy has mass, mass is removed from the total mass of the original particles, and the mass is missing in the resulting nucleus.

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Host community fund will arrest crude theft, vandalism —NNPC SAM IKEOTUONYE

T

he introduction o f t h e Petroleum H o s t Community Fund as enshrined in the Petroleum Industry Bill, PIB, will help arrest incidence of pipeline vandalism and crude oil theft in the Niger Delta.

NNPC Group Managing Director, GMD, Mr. Andrew Yakubu, made the assertion at a seminar organised by the Petroleum Exploration Technology Association of Nigeria, PETAN. Yakubu spoke on “Post PIB Challenges, Prospect and Opportunities” at PETANorganised seminar, which held during the Offshore Technology Conference in Houston, Texas, United States.

According to him, the proposed fund “is a mechanism to formally recognise host communities as important stakeholders by assigning oil and gas infrastructure security to the host communities and minimising environmental degradation due to vandalism and crude oil theft”.

“It also includes modalities for using regulations to increase flexibility in managing host community issues,” Yakubu said, referring to the PIB as an essential tool for the sustainable development of the Nigerian oil and gas industry.

The NNPC boss, who said the proposed law presented multi-dimensional approach to the nation’s oil and gas resource management, maintained that it will bring about increased active contribution by players and stakeholders under prudent government structure.

He further said: “It also stipulates guidelines for operations in the upstream and downstream sectors that can be viewed in terms of the following: policy, legal and regulatory dimensions,

Drums of stolen crude oil

economic dimensions including participation and ownership, knowledge based human and institutional capabilities, environmental stewardship as well as governance structure for sustainable resource

development.”

Also speaking at the event, Chairman Senate Committee on Petroleum (Upstream), Senator Emmanuel Paulker, emphasized the readiness of

the Senate to work with the executive to ensure smooth passage of the bill.

“I cannot commit to any particular date but I know that this PIB must be passed,” he said.

Also speaking, House Minority Whip and Chairman House Committee on PIB, Hon. Samson Osagie, reiterated the preparedness of the National Assembly to ensure that the bill is passed into law soon.

Bonga spill: Delta communities accuse SNEPCo of falsifying probe result

S

hell Nigeria Exploration a n d P r o d u c t i o n Company Limited, SNPECo, has come under strident attack of some communities in Delta State for allegedly tampering with the result of a probe into the 2011 Bonga crude oil spill.

About 80 oil p r o d u c i n g communities in Warri North and Warri South-West Local Government Areas of Delta State

made the allegation at a meeting with officials of the Nigerian Maritime Administration and Safety Agency, NIMASA, and the Nigerian Naval Service, NNS Delta, in Warri.

The communities alleged that SNEPCo fabricated the result of samples of oil, soil and surface water collected for test from a few communities impacted by the Bonga oil spill.

Coordinator and spokesman of the affected communities, Mr. F. A. Monday, lamented the damage the spill had visited on the communities, especially as it concerned the ecology and means of livelihood of the people.

According to him, information reaching the communities indicated that, because of the renewed agitation by the communities, Shell recently requested “security agents and gun boats to force themselves into our communities for the purpose of sample collection to falsify another result with respect to the said crude oil spillage”.

He said: “We discovered that Shell merely invited some government officials to observe soil, surface water and oil samples collected in few villages in Bayelsa State and Burutu Local Government Area of Delta State and these villages are

outside our areas in 2011.

“It is our submission that SNPECo only tried to doctor the facts by embarking on a kangaroo samples collection and thereafter, presented suspected falsified result of same to some government agencies.

“Also, it was inciting us against government authorities that participated in observing the said samples collection and SNPECo’s actions was a calculated attempt to pervert justice, misinform, mislead and equivocate the Bonga oil spillage incident.”

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Delta oil communities okay NPDC, Atlantic Energy blocks deal

T

he Niger Delta Oil P r o d u c i n g Communities have endorsed the National Petroleum Development Company, NPDC’s, transfer of oil blocs to Atlantic Energy Concept Limited, saying the move will promote local content initiative in the industry.

Representatives of the host communities told journalists in Abuja that those agitating against NPDC’s transfer of the oil blocks or those calling for the revocation of the deal were working against the interests of host communities.

Chief Anamali Oji, who spoke on behalf of the group, explained that the agitators might be trying to blackmail top management of the NNPC and the Federal Government.

“They are creating unnecessary tension and in a way, causing fresh uprising

Oil spilage

in our region and they should be charged with treason. How many traditional leaders did they consult?” he queried.

Oji added: “The NPDC, a subsidiary of NNPC did the right thing by transferring the operatorship of the oil blocs to Atlantic Energy Concept Limited. If not for anything, the deal supports the local content policy which we, the oil producing communities, have agitated for over the years.

“The local content which is a key provision in the Petroleum Industry Bill (PIB) is one major reason why the oil producing communities have consistently urged the National Assembly to pass that piece of legislation which we believe will mark an unprecedented participation of Nigerians in the petroleum sector.

Confusion trails oil spill in Ikarama community

T

he Ikarama Community in the Yenagoa L o c a l Government Area of Bayelsa has disagreed with the Shell Petroleum Development Company of Nigeria, SPDC, over the cause of the reported spill from oil wells in the community.

The spill has reportedly contaminated the Taylor Creek in Yenagoa and residents of Biseni/JK4 Road insist the spill was not caused by oil theft.

Officials of Shell’s Oil Spill Response Unit were seen recovering crude oil discharged into the environment, near the company’s Well 2 in Biseni Area.

Mr Ambrose Osuolo, Assistant Secretary, Caretaker Committee of JK4 Edagberi/Betterland

It would be recalled that Agip was compelled to shut down its onshore crude production facilities in Bayelsa due to unsustainable levels of oil theft Community, said the people were convinced that some of the spill points were traceable to equipment failure.

“We noticed the spills on April 30 and Shell came for a joint investigation visit (JIV) on May 3. I represented my community on the JIV, but the investigation was inconclusive due to different views held about the cause of the spill.

“While Shell attributed the cause to sabotage, saying that the pipeline was drilled in, I was not convinced and hence

we did not sign the JIV report.

“Although Shell came purposely for this particular spill, we discovered two more spill points within this Well 2 environment on that same day.

“The affected pipeline conveys crude from Well 2 to the nearby Adibawa Flowstation. We reported to the Bayelsa Ministry of Environment so that the ministry could put pressure on Shell to mop up the spill

in the environment,” Osuolo said.

An SPDC spokesman, Mr Precious Okolobo, in a statement, attributed the spill to sabotage of pipeline by oil thieves.

The statement said that the preliminary findings indicated that the spill, which was caused by the activities of oil thieves had contaminated the Taylor Creek.

“A joint investigation visit (JIV) was executed and the initial reports indicated that the pipeline was sabotaged by a 20 cm long hacksaw cut.

“SPDC is committed to cleaning up all spills from its facilities as fast as possible regardless of cause. Majority of the spills in the Niger Delta are the result of third party interference,’’ it said.

The statement said that the sabotage included theft of equipment or leaks caused by crude oil thieves who drill

into pipelines to steal oil.

“On the average, third party interference accounts for around 73 per cent of all oil spill incidents,” SPDC stated.

It would be recalled that Agip was compelled to shut down its onshore crude production facilities in B a y e l s a d u e t o unsustainable levels of oil theft.

Agip on March 23, said oil theft from its facilities in the state accounted for a daily loss of 7,000 barrels out of its 40,000 barrels of crude production and declared “force majeure” on its oil output.

Force Majeure is a legal clause that frees an oil firm from crude buyers for failure to meet its supply obligations due to circumstances outside of its control.

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DESOPADEC admits diverting oil money

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he Delta State Oil Producing Areas Development C o m m i s s i o n , DESOPADEC, has admitted that Warri Club in Warri, which it rehabilitated with funds meant for the development of oil producing communities, was a private recreational club.

Chief Legal Officer of the Commission, Mr. Gabriel Eyewuoma, made the admission when he was cross-examined in a N1 billion suit against DESOPADEC by Itsekiri Chapter of Host Communities of Oil and G a s P r o d u c i n g Communities of Nigeria,

Chief Wogu

74,000 to benefit from SURE-P community service —FG

M

inister of Labour a n d Productivi ty, Chief Emeka Wogu, said 74,000 Nigerians would be employed in the second phase of the SURE-P Community Service Scheme, CSS. A statement issued by Mr Olowookere Samuel, Assistant Director, Press, in the ministry in Abuja, said the minister announced the figure when the Vice Chairmen of the States Coordination and Implementation Committee of the SURE-P scheme visited him.

The minister explained that 2,000 persons from each of the 36 states of the federation and the FCT would be employed in the second phase of the scheme, following the successful implementation of the first phase.

“I can tell you categorically that in each of the 36 states of the federation, including the Federal Capital Territory, we have engaged 3,000 persons

per state in the CSS of SUREP. “We are set to begin the second phase of the scheme with the intention of engaging additional 2,000 persons in each state and FCT,” Wogu said.

He charged the vice chairmen to bring their professional and technical knowledge to bear towards achieving the target of the scheme as set by the Federal Government.

“The ministry is working

towards developing a viable exit strategy for beneficiaries of the scheme at the completion of their one year temporary employment with the aim of making them self sustained.

“We are planning to

HOSTCOM. He also admitted that DESOPADEC did not receive any letter from the Federal Government soliciting for assistance before it embarked on the renovation of the Nigeria Police Barracks, ‘A’ Division, Warri.

He, however, said that all projects executed by DESOPADEC were published in the Commission’s monthly magazine as it concerned the various ethnic groups.

Asked if DESOPADEC had earlier refuted the publication of the project executed in a news magazine, he said no.

engage beneficiaries in full employment or self employment aimed at making them entrepreneurs in any area of their choice at the end of the one year programme with the CSS,” Wogu added.

The Project Director of CSS, Dr. Martina Nwordu, urged the technical officers to avail themselves of the opportunity of the training to eradicate delays in processing of stipend from states.

Shell spends N355m in Nembe Kingdom

T

he Shell Petroleum Development Company, SPDC, has inaugurated 10 c o m m u n i t y development projects in its host communities in Nembe, Bayelsa State.

The projects, valued at N355 million include transport-to-wealth scheme, development of infrastructure, water projects, minimarket and a printing press.

The transport-towealth scheme has a

fleet of 35 vehicles, 10 of which will be used by the Nembe City Development Foundation, NCDF, while 25 will be allocated to benefiting youths from Nembe Kingdom.

In his speech at the occasion, Gov. Henry Seriake Dickson lauded SPDC for implementing the Global Memorandum of Understanding, GMoU, on the projects in partnership with the NCDF. “With these laudable projects, government has seen that development is coming to our communities,” he said, urging other

communities to emulate Nembe communities under the auspices of the NCDF. Represented by his deputy, retired Rear Admiral John Jonah, Dickson said the oil company was complementing government’s efforts at developing the rural communities. He urged the beneficiaries to make judicious use of the vehicles.

SPDC’s General Manager, Sustainable Development and Community Relations, Mr Nedo Osayande, said the projects were part of the oil firm’s corporate social responsibilities.

He explained that apart from the 10 projects, SPDC and its joint partners were also involved in the construction of the Nembe Independent Power Project and the Nembe Road.

He said that on completion, the road would open up communities in the area.

“Today, we are here to celebrate with the communities on the commissioning of 10 projects which cut across economic empowerment and infrastructure. These projects cost N355m. I believe these investments will improve lives,” he said.

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NigerDelta

Question

JOHN IYENE OWUBOKIRI

No end in sight of a power conundrum

A

Training session

SPDC/NDE to train 100 graduates from Rivers, Bayelsa

C

ommissioner for Youth Development a n d Empowerment Generation in Rivers State, Mr Ipalibo Harry, has called on government agencies and institutions to create skills acquisition programmes to tackle unemployment in the country.

Harry made the call at the launch of the Shell Petroleum Development Company, SPDC, Entrepreneurial Skills Training Programme in conjunction with the National Directorate for Employment, NDE, in Port Harcourt.

The programme is targeted at empowering 100 graduate indigenes of Bayelsa and Rivers.

Harry, represented by Mrs Comfort Iragunima, permanent Secretary in the ministry, said the government and oil industries alone could not absorb the teaming number of university graduates in the country.

“The youths are the real energetic force in our society; the energy is there with them. So, whenever they are deprived the opportunity to express their energies, they become a nuisance to the society.

The programme promises to be quite intensive, so the lucky beneficiaries need to put in their best if they want to achieve their aim “In that way, the environment is not conducive for business and Shell is also affected,” she said.

The commissioner also said that the universities and training institutions should provide skills acquisition programmes for graduates, who passed in the second class and third class grades.

Harry said that the category formed the bulk of unemployed youths in the country. “Only about 20 per cent graduates in the country usually fall into the first class category, which were the most salable in the labour market.

“So, what happens to about 80 per cent who fall into the categories of second and third class?“ he asked.

Harry said it was only when youths were trained to engage themselves and become employers of labour that the country would be able to tackle the problem of unemployment.

Malam Abubakar Mohammed, DirectorGeneral of the National Directorate of Employment, advised the beneficiaries of the programme to pay serious attention to the course.

“The programme promises to be quite intensive so the lucky beneficiaries need to put in their best if they want to achieve their aim,” he advised.

Mohammed, therefore, urged members of the Project Management Committee of the skills programme to put in place a robust system for business advisory and monitoring of individual enterprises of beneficiaries.

He said NDE would also, provide the necessary Business Advisory Services to support trainees even when they would have set up their businesses.

frica is the second largest continent in the world, populated by a myriad of ethnicities, a miracle mix of exceedingly beautiful trees, glades, veldts and an animal population which have all inspired a million poems; Africa’s abundant food base and its treasure trove of mineral deposits make it a rich continent, at least by definition.

Nigeria is Africa’s most populous country, having more than 500 ethnic nationalities, a full basket of cash and food crops and nearly all the mineral deposits known to man in commercial quantities. Nigeria’s is the kind of resume that gets a country in the Forbes’ Listings, but, this country despite acquiring some technology and inventing others locally, has been undermined by a power crisis.

Nigerians know that stable electric power supply to homes and industries is crucial to the development of the creative potential of their people. In 1999, when it became clear that Gen. Abdulsalami Abubakar meant to give power to a democratically elected regime, Nigerians clamoured for the come-back of a military ruler turned democrat, an African statesman who had performed credibly as a military head of state.

That was how Chief Olusegun Obasanjo came back to power.

Wasting no time, he promised Nigerians that they would have stable electricity supply by 2002. Perhaps because he made the commitment before assaying the situation on ground, Chief Obasanjo started to blame the rot that had accrued to the system of governance and the management of public infrastructure after he had left office as a military head of state.

Obasanjo introduced the Independent Power Projects, IPPs, with the hope that each project working independently, efficiently and driven by set goals could shore up the power base of the country. Soon, Obasanjo realised that he had another challenge: the National Assembly, and then another, his civilian garb and yet another, the lack of political will to achieve set goals.

I recall the management of Rockson Engineering, the company behind construction of the Alaoji 1,074 megawatts, Aba IPP telling journalists four years ago they had written to the Minister for Power, intimating him that the link bridge between Rivers and Abia states at the point of the Imo River did not have the capacity to convey the turbines, but the minister did not respond to their complaint and they had to consider how to build ramps across the river to convey them from Onne Port where they had been for over a year. All the IPPs had similar challenges, from the serious to the mundane matters including the security of project sites.

Although Obasanjo was overwhelmed by the power problem, having failed to deliver on his 2002 commitment, he went ahead nonetheless to seek another term and was graciously granted. In 2007, Umaru Yar’Adua assumed control of the central government. Before he came in however, the Obasanjo government had relaxed the rules over power generation, distribution and supply. At Omoku, Afam and Bonny in Rivers State alone, independent bodies, Total and the Shell Petroleum Development Company had established successfully managed operations. At the national level however, the new government got confused as to its role (accuser, prosecutor, judge) against the IPPs. One of the consequences that fell out from the probe against the IPPs is the re-discovery that though Eskom ran the power needs of South Africa, the Power Holding Company of Nigeria, could not alone play all the roles required to fulfil Nigeria’s power needs.

From that re-discovery and the discovery of Prof Barth Nnaji, a superstar in the power industry, to the commitment to unbundle the PHCN into several private concerns for efficiency and for the fulfilment of that eventual goal of power sufficiency, more than four calendar years have come and gone.

After the approval of huge sums accruing to employees of the present PHCN as retirement benefits and disengagement allowances, the people of Nigeria have a right to know why PHCN is still functioning as a business. Why haven’t the new private companies commenced operations? Who is benefitting from the present situation? By resolving this power conundrum, Nigeria would also automatically adjust the wastage that has accrued over the years in the private production of power by millions of families and businesses, reduce noise pollution all over the country, wipe out the black market for diesel and correct all the imbalances brought on by this artificial market. If the present government is committed to this project, it can be achieved. If it is not committed and the government enjoys a return to power like Obasanjo’s, it would then mean that Nigerians misperceive the importance of power to their development or that Nigerians misperceive their power through the ballot or that though Nigerians rightly adjudge power as crucial to their development, they have failed through the ballots to express same because the environment in which they seek to enthrone the supremacy of the ballot is simply not democratic. A weak ballot is an anomaly in a democracy.

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