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World Environment Day 2023: Chevron Nigeria reiterates commitment to an eco-friendly environment

By
Simon Ugwu
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0
©Troy Fields

Kennedy

The world commemorates World Environment Day annually on June 5 to celebrate and promote environmental awareness and sustainability across the globe. Led by the United Nations Environment Programme, UNEP, and held every year since 1974, each edition focuses on raising awareness and mobilizing the world to take positive action to protect nature and our planet.

 

The theme for this year is Solutions to Plastic Pollution under the campaign slogan #BeatPlasticPollution. The theme is focused on creating awareness on the effects of plastic pollution on our ecosystem.

 

Chevron Nigeria Limited, CNL, operator of the joint venture between the Nigerian National Petroleum Company Limited, NNPCL, and CNL, identifies with this global action to address the impact of plastic pollution as it aligns with our commitment to protecting the environment while providing affordable, reliable, and ever-cleaner energy.

CNL conducts its business in a socially and environmentally sustainable manner, in compliance with all applicable laws and regulatory requirements, stakeholder expectations and best industry practices, and has made environmental stewardship part of its social investment programmes.

The CNL’s Chairman and Managing Director, Rick Kennedy, explains that the company’s approach to sustainability is highlighted by its commitment to protecting the environment, empowering its people, and always getting results the right way. “Environmental protection is a key Operational Excellence focus that is integrated into our project planning and life cycle of our assets. We implement a robust process for management of wastes, including solid wastes like plastics of various densities through reduction, reuse, and recycling options.

 

“We continue to assess and implement reduction of single-use plastic water bottles by providing water dispensers. We have also invested in waste management equipment to shred, crush, and compact for recycling and re-use of waste by third party service providers. These actions have prevented our used plastics from leaking into our immediate natural environment,” he said.

 

According to Rick, CNL’s Operational Excellence Management System delivers industry-leading performance in process safety, personal safety and health, environment, reliability, and efficiency. “Our focus on the environment during decision making lays the foundation for sound environmental management. The company protects the environment through the entire lifecycle from responsible design, development, operations, and asset retirement,” he added.

CNL recognizes the importance of minimizing its environmental footprints by promoting ecosystem restoration. The company continually aims to achieve world class environmental excellence through implementation of its Environment Risk Management process to identify, assess, mitigate against, and manage environmental risks, environmentally related community health risks, and environmentally related social risks.

CNL is advancing its lower carbon strategy by focusing on lowering the carbon intensity of its operations and by implementing methane detection and reduction capabilities. CNL utilizes high tech Optical Gas Imaging, OGI, cameras for detecting fugitive emissions and in the past 10 years has reduced routine gas flaring by over 97% in its operations.

The company, in partnership with the Nigerian Conservation Foundation, NCF, established the Lekki Conservation Centre in 1992. This 78-hectare facility, a center of excellence in environmental research and education, is reserved as a sanctuary for the rich flora and fauna of the Lekki Peninsula.

In 2005, CNL began supporting a yearly postgraduate research scholarship for PhD students in environment and conservation, instituted by the NCF.

Additionally, the company hosts the annual S.L. Edu Memorial Lecture to promote environmental management awareness and partners with the Lagos State Government and NCF to sponsor the annual Walk for Nature event, a programme aimed at creating awareness for nature conservation and sustainable environmental management. The theme of the 2019 edition was “Plastic Pollution, the enemy of our development agenda.”

Esimaje Brikinn, CNL’s General Manager, Policy, Government and Public Affairs notes that CNL recognizes the importance of protecting and conserving biodiversity. “We have a long history of working in collaboration with communities, industry groups, regulators, and conservation groups to identify and protect biodiversity in parts of the world where we operate. For over 60 years, the company has remained an active agent of sustainable development and strong advocate of partnerships in support of the environment. We will continue to partner with stakeholders in raising public awareness to create the transformative environmental change we need to advance to a more sustainable world that Beats plastic pollution for ourselves and for future generations,” he noted.

 

The embrace for Electric vehicles: Options for Nigeria and Africa

By
Simon Ugwu
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0

The craving by the western nations for Electric vehicles is a welcome development but the limitations or the challenges posed by the use of Electric Vehicles calls Nigeria and Africa to thread with caution as the manufacturers of the vehicles (the Western nations) are is still groping with the challenges posed by the use of Electric vehicles.

Nigeria and Africa have not developed the Infrastructure for the so called Electric vehicles, hence the call for caution in embracing the use. When the battery goes down it takes 20 to 20 minutes to fully charge it, this may cause travel disruptions as owner may have to park and charge the battery or own spare battery. The charging stations are also limited.

Chid Ibe, a professor of Oceanography and the Blue Economy/Industry Expert (Energy, Environment and Climate Change) made lots of revelations with regards to Electric Vehicles at the 12 Emmanuel Egbogah Foundation Legacy Lecture series held last week at the Emerald Energy Institute, University of Port Harcourt, Rivers State, Nigeria with the theme: Climate Change and the Geopolitics of Energy Transition.

The Key Note Speaker at the event noted that Electric car inventory has been piling up on dealership lots this year in the USA as companies up their EV production – Insider Magazine “It’s not just that these vehicles are expensive – which they are. We’re talking about a much more nuanced lifestyle change including charging and range anxiety, as stoppers for many buyers. “It’s hard for the average customer to make that leap while spending an extra $10,000 or more” Fiorani of the car Dealers Association, said.

So, it is not affordable, very expensive.

Talking about the Bigger Picture: he noted that intermittency problems plague two of the most promising renewable Energy, Solar & Wind, known as Variable Renewable Energy (VRE) or non-dispatchable Energy.

Key questions according to him deal with the cost of renewables integration into power grids, policy and regulatory issues and the availability of suitable technologies such as energy storage technologies.

He noted that EU budgeted 2 trillion Euros to deal with issue SHOW ME THE MONEY !

According to him “Even though Africa is 20% World Population & has ample resources, it attracts only 2% global clean Energy funds. To meet development ambitions, as well as international energy access and climate goals, energy investments need to more than double by 2030, with nearly 2/3 going to clean energy. Real and perceived risks affect projects added to higher borrowing costs mean that there is a limited pool of affordable capital that energy developers in Africa can tap -see AfDB Pub Sept ’23 for new ideas! CALIFORNIA ET AL’S BAN OF ICE BY 2035”.

“ Prof David Popp, Public Administration and international Affairs Dept, Syracuse Univ.’s Maxwell School says, “While I support efforts to increase the use of electric vehicles, I worry that an all-out ban on gasoline-powered vehicles would be going too far. There is some leeway by allowing hydrogen powered vehicles. But hydrogen vehicles are still a PROHIBITIVELY expensive option and fueling stations are limited. Simply mandating the sale of Electric and Hydrogen vehicles will not be enough.” Hand writing on the Wall”, Prof Ibe noted?

”Shell Plc’s new boss, Waal Sawan echoing a pivot by other major producers toward fossil fuels and energy security. “I am of a firm view that the world will need oil and gas for a long time to come,” “As such, cutting oil and gas production is not healthy.” https://www.worldoil.com/news/2023/3/3/

BP Plc, Shell’s closest peer, said after that it would slow the planned decline in its oil and gas production to guarantee the reliability of energy supply following the disruption caused by Russia’s invasion of Ukraine. Looking at margins not volumes.

Exon –Mobil is divesting from USA, Brazil and jurisdictions with more stringent environmental safeguards and moving most assets to Guiyana where new laws on local content offers IOCs brighter prospects for the future of low cost , low carbon oil operations that will not dry up any time WORLD OIL- AUGUST’23.

USA Shale Reinvestments surge at “fastest rate in 3 years”

Reinvestment rate surged to 72% in the second quarter of this year, highs not seen since 2020 according to the Study focusing on 18 companies that collectively account for about 40% of US Shale output.

Elsewhere, the scramble for new Petroleum Acreages in cascading Bid Rounds speak of the resurgence of this Industry.

RECALL THIS GUY?

Nenad Miljkovic, a Professor of mechanical science & engineering at UIUC. “The reality is that fossil fuels aren’t going away for at least 100 years,”  Advocating for greater focus on CCUS Technologies, He said  “A lot of CO2 is going to be emitted before we get to a place where we can lean on Renewables HEAR UK’s GRAHAM STUART Further, explained the minister, when the UK has reached net zero in 2050, as it is legally obligated to do, it’s estimated that around a quarter of the country’s energy needs will still come from oil and gas. HEAR MINISTER STUART AGAIN !

He said that officials, collectively, in the UK government have failed to tell the people the story of dependence on oil and gas & efforts to decarbonize oil & gas. Nor has anyone discussed the fact that the Energy Industry, is One Industry.

“It doesn’t need to be divided into sheep or goats,” emphasized Stuart. “It isn’t divided between the blessed and the damned, the green and the filthy oil and gas. It is one industry.” FELA- I NEVER TELL YOU FINISH

Referring to the potential to exploit new and emerging technologies, such as hydrogen production, carbon capture usage and storage, offshore wind, he also made note that it is traditional oil and gas companies that are going to deliver these projects. “It is, in fact, the oil and gas industry’s expertise, the balance sheets, the engineering, the subsea capabilities that makes net zero possible,” said Stuart accurately. REALLY? “WHY then are we being told to ditch this petroleum under our belt because it is damned & filthy and to leap into the other world because it is clean and safe without anyone showing us any credible path to achieving this Eldorado? Who will drive the adoption of Renewable technologies for us if we prematurely snuff out our Petroleum Industry?  Is it going to be another leap in the dark?

Spurred by the subtle threat that if we don’t jump willingly, we will be pushed? He asked noting that it is time to dare and take a bold step just like the Asian Tigers, Stressed the Prof.

NNPCL, Indorama sign Agreement on improved Gas use

By
Simon Ugwu
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0

The Nigerian National Petroleum Company Limited and Indorama Eleme Petrochemicals Limited have signed a Memorandum of Understanding, MOU, to explore and develop suitable opportunities within the remits of both parties’ interests across the hydrocarbon value chain in Nigeria.

The new agreement was conveyed in a statement by Garba Deen Muhammad, the Chief Corporate Communications Officer, NNPC Limited, who also noted that the move is a development that NNPC Ltd.’s GCEO, Mele Kyari, summarized thus: “NNPC Limited is on the threshold of making value out of gas beyond any imagination.”

The statement said, one of NNPC Ltd.’s roles as enshrined in article 64(i) of the Petroleum Industry Act (PIA) is to promote the use of natural gas through the development and operation of large-scale gas utilisation industries.

It explained that this role is in alignment with Nigeria’s Nigasification strategy which is a consolidation of critical programs embarked upon by the company to utilise natural gas and its associated liquids to be the energy source of choice, spur economic growth, free up crude oil for exports, and ultimately enable job creation.

According to NNPC Ltd.’s GCEO, with this project, “we are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.”

As part of the company’s vision of operating the largest Petrochemical Hub in Africa, Indorama which owns the world’s largest single-train Urea Plant located in Port Harcourt, Nigeria, is currently working on expansion plans within the next 6 years, in the gas-based heavy manufacturing industries including fertilizer, methanol, and petrochemicals.

Speaking, the MD/CEO, Africa Indorama Energy, Manish Mundra, stated that “This is a strategic collaboration to unlock Nigeria’s upstream sector, but more importantly, to partner downstream, in order to share the value chain.” He said that “Nigeria’s gas reserves should position the country as one of the largest producers of urea in the western hemisphere.”

The statement quoted that key benefits of the opportunities include the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, generation of upstream lifecycle revenue of over $18bn, downstream production of about 4.8 Million Tonnes Per Annum, MTPA, of products including methanol, urea, and fertilizer to boost national food security.

Other benefits include the creation of about 55,000 direct and indirect employment opportunities, the development of a condensate refinery to boost petroleum product supply and reduce product importation, annual GDP contribution of over $3.8bn, and attraction of over $7bn of foreign direct investment into the country.

According to the statement, the NNPC Limited’s agreement with Indorama follows Nigeria’s President Bola Ahmed Tinubu’s commitment in India a few weeks ago, to strengthen business relations between both countries.

Unremitted Revenue Rises to $9.85bn, NEITI Latest Oil and Gas Report Reveals 80% of the financial liabilities are owed by the NNPCL 

By
Simon Ugwu
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0

 

…Report urges computation of 13% derivation based on Section 162 (2) of Nigeria’s Constitution

 

 

The total unremitted revenues to the Federation by some relevant government agencies and companies in the oil and gas sector in the year 2021 have risen to over $9.85bn.

The figure and other vital pieces of information and data about Nigeria’s petroleum sector is contained in the 2021 Oil and Gas Industry Report by the Nigeria Extractive Industries Transparency Initiative, NEITI.

Executive Secretary of NEITI, Orji Ogbonnaya Orji while presenting the highlights of the report stated that the information and data contained in the NEITI latest reports paid special attention to helping the government at all levels to shore up revenue, support national development and poverty reduction through resource mobilisation. The report therefore provided update on the financial liabilities of the NNPCL and some companies to the federation.

He lamented that despite the concerted efforts made last year to recover some of the revenues through the Ad Hoc Committee that was set up by the National Assembly, the 2021 figures showed an increase.

A compilation of the outstanding financial liabilities due to the Federation by the report indicated that a total of $13.591mn revenues was payable to the Federal Inland Revenue Service, FIRS, as of July 31, 2023, while the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, had outstanding tax collectible revenues of $8.251bn as at December 31, 2022. Over 80% of these outstanding financial liabilities are owed by NNPCL

The Secretary to the Government of the Federation, George Akume, represented by the Permanent Secretary, Political and Economic Affairs, Esuabana Nko while unveiling the report reaffirmed the federal government’s commitment to support and deepen the implementation of the EITI in Nigeria.

According to the SGF, “President Bola Tinubu’s administration is fully committed to the fight against corruption in the extractive industry in particular and in other sectors of the economy. As an Administration, we are convinced that the revival of our economy and the 8-point agenda that we recently unfolded cannot yield the desired result if we do not support and strengthen anti-corruption and reform oriented Agencies like NEITI”.

She added that “The NEITI 2021 Industry Reports being unveiled is quite timely, coming when the present administration is fully committed to shoring up revenues through priority attention to attracting investments to the key sectors of our economy, the oil and gas sector being one of them”.

Chairman Senate Committee on Oil and Gas Host Communities, Sen. Benson Agadaga, reaffirmed government’s commitment to implement the recommendations of the NEITI oil and gas report. “Be assured that the Federal Government will carefully study this important report and adopt it as a valuable working document as part of our overall reform programme for the oil and gas sector”, Sen. Agadaga stated.

The Chairman Senate Committee on Petroleum Upstream Sen. Eteng Williams commended the vital role NEITI is playing and urged NEITI to continue to ensure revenue mobilization for the country now that subsidy is gone.

The Chairman, House Committee on Petroleum Resources, (Downstream) Hon. Ikeagwuonu Ugochinyere (Ikenga Imo) pledged the support of his Committee to lay the report on the floor of the House and debate it extensively to ensure the implementation of the recommendations made therein, as enshrined in Sections 3 and 4 of the NEITI Act.

“Working together, we will ensure the realization of government’s desire to diversify the economy for the attainment of alternative source(s) of revenue and clean energy, that will bring about the realization of the projected one trillion-dollar revenue for Nigeria in the next 8 years.”.

The Minister of Budget and National Economic Planning Sen. Abubakar Atiku Bagudu represented by the Permanent Secretary, Nebeolisa Anako stated that the data generated by NEITI will help the ministry in its planning mandate for the country.

“The budget outlay for the country for the current national development plan for five years is N348trillion. Majority of this inflow is going to be from the private sector and the oil and gas sector is key to the realization of this goal”.

The NEITI 2021 Oil and Gas report published this Monday in Abuja with the theme: “NEITI Oil & Gas Industry Report 2021: Relevance built on revenue growth and impact” also made several vital disclosures in line with the NEITI Act 2007 and the EITI 2019 Standard.

The report showed that Nigeria earned a total revenue of $23.046bn from the sector in 2021. The sum is about 13 percent higher than the corresponding total of $20.43bn realized in 2020.

Breakdown of the earnings showed that about $8.67bn, or 37.6 percent of the revenue was realized from the sale of crude oil and gas; $13.37bn, or 58.02 percent, from taxes and other specific revenue flows, and $1.01bn, or 4.38 percent, went into payments to sub-national entities.

An analysis of the total revenue realized, the report stated, showed unremitted revenues and quasi-fiscal expenditure by the NNPCL of $1.95bn (8.47%) and $6.93bn (30.08%) respectively. Transfers to the Federation amounted to $13.2bn (57.27%), while Sub-national payments totaled $963.63mn or 4.18%. Available revenue for sharing by the federating units after the deductions and in accordance with the revenue allocation formula was US$13.2billion which represented 57.27% of the total revenue collected. This is lower than the 71.7% shared in 2020.

The quasi-fiscal expenditure of $6.931billion (equivalent of N2.651trillion) were deducted from the Federation’s revenue before remittance without appropriation by the National Assembly. A breakdown of the $6.93bn deductions showed payments of $3.52bn or 15% for Joint Venture Cost Recovery and $3.031bn (about N1.16 trillion) or 13.15 percent for products subsidy/value loss. Other deductions are $258.43mn for government priority projects; $75.51mn for pipeline maintenance and holding cost and $42.40mn for crude oil and products losses.

The NEITI report also observed that none of the refineries was operational in 2021 despite spending about N200billion between 2020 and 2021 on refinery rehabilitation which was deducted from the Federation sales proceeds. These deductions the report reiterated, remains a heavy cost to Federation Revenue remittances.

In addition, the report said about $1.95bn, or 8.47% of the total revenue was not transferred to the Federation Account by the NNPCL during the year under review. Breakdown of the withheld revenue included, $722.6million for NLNG dividend; $871.15mn from domestic crude sales, $859,583 miscellaneous revenue and  $286.42mn from export crude sales. $24.332million and $45.76million were withheld from transportation revenue and domestic gas proceeds.

A ten – year trend analysis of financial flows from the oil and gas sector from 2012 to 2021 showed earnings of $348.63Billion.

On crude oil production and exports, the NEITI report indicated that total metered crude oil production was 634.60 million barrels, out of which the nation lost 68.47 million barrels to production adjustment, measurement error, theft and sabotage. The figure showed a 13% reduction from the production volumes of 2020.

The report pointed out that a total 29 companies suffered crude losses from theft and sabotage amounting to 37.57 million barrels. The decline in crude oil losses due to theft and sabotage from 39.08million barrels in 2020 to 37.57million barrels in 2021 was generally due to the decline in crude oil production during this period.

On gas production and utilization, the NEITI report said a total of 2.74million standard cubic feet of gas was produced during the year, with the volume about 8.96 percent lower than the 3,013,634mmscf produced in 2020. Total gas utilized in 2021 stood at 98%, while 2% could not accounted for by the companies based on the templates submitted.

With the nation’s gross domestic products put at about $434.17bn, the report said the oil and gas sector contributed about 7.24% to the GDP and $ 36.55 billion (N14.40 trillion Naira) to total exports of $ 47.31 Billion (N18.91 trillion). This represented 76.22 % of the total exports in 2021,  0.8% higher figure than in 2020. 19,171 employees were said to be working in the sector in 2021.

Similarly, the total government revenue generated in 2021 was 10.75 trillion Naira to which the oil and gas sector contributed 4.358 trillion Naira. This represents about 40.55% of the total revenue compared to 51% in 2020. The higher export value in 2021 compared to 2020 was due to the increase in crude oil price in 2021 from $41.65 per barrel to $66.97 per barrel, the NEITI report disclosed.

NEITI also reported on the 2020/2021 marginal fields awards. It observed that NUPRC regulation expected all successful applicants whose names were in the Notice of Preferred Bidder Status to make payments for signature bonus prior to award. However, the report observed that the list of awardees contained names of companies that had not paid signature bonuses, with four companies whose names were not on the list of awardees making payment of signature bonuses.

NEITI in the 2021 report also observed that majority of the oil and gas companies in Nigeria exhibit complex structures that shield the real identities of their owners, thereby limiting the impacts of efforts at beneficial ownership disclosures. NEITI called on the NUPRC to implement fully the relevant sections of the PIA on Beneficial Ownership reporting.

Other copious recommendations made by NEITI in its 2021 report are that NNPC should transparently disclose details of the subsidy and the beneficiaries of the payments, render accounts on project eagle loans transaction and review and investigate all pre-export financing arrangements and other loan arrangements done in exchange for the nation’s crude oil and gas.

NEITI also recommended that Government should commission a comprehensive audit of the PMS subsidy-related financial transactions between NNPC and the Federation, determine all liabilities and ensure accurate and verified data.

Furthermore, the Agency noted the discrepancies in records by some relevant government agencies on transactions in the sector which it says raises concerns about the integrity and accuracy of the data and pieces of information disclosed by these agencies. It therefore called on the concerned agency to improve its data management processes and establish controls that would prevent future discrepancies and maintain data integrity.

NEITI also drew attention to the practice of computing 13% derivation on the balance of revenue after deductions from the total collections which it advised should be discontinued. Rather, the 13% derivation should be based on total collections for the relevant period in accordance with Section 162(2) of the constitution of the Federal Republic of Nigeria.

It finally stressed the urgent need to strengthen the remediation mechanisms and involve independent third parties to conduct detailed investigations where necessary, especially with the PIA now in place for effective monitoring of the implementation process.

The report which was reconciled on behalf of NEITI by an Independent Administrator, Messrs Taju Audu & Co., had a total of 69 companies and 13 government agencies, the NNPCL, the Nigeria LNG and Nigeria Sao Tome Joint Development Authority with 23 revenue streams covered. One company, Lekoil Limited did not submit any information for reconciliation, but was captured to have paid over $7.76million.

Orji urged policy makers to take seriously the findings and recommendations of the NEITI oil and gas report and use the data for economic planning and reforms of the sector. To the civil society, he stated that the information is to support their advocacy and public debates as well as tracking of reforms in the sector with a view to holding government at all levels and companies accountable, ensuring that the revenues from the sector is utilised for the benefits of the citizens.

Fossil Fuel won’t go away in the next 100 years-Prof Ibe

By
Simon Ugwu
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0

 

Fossil Fuel will continue to become useful and relevant in Energy Value Chain even beyond 100 years to come. This is because the Infrastructure for the so called Renewable Energy will be drawn from the Fossil Fuel and also the Renewable Energy cannot power Industrialization or have the capacity to serve the Energy demand for Industrial use. The Infrastructure is not there yet.

So also the battery will become waste when it dies. Total reliance on Renewable Energy may lead to Energy Crisis as it takes at least Four hours to charge vehicle batteries. This may lead a break while on a Journey.

Chidi Ibe, a Professor of Oceanography and the Blue economy/Industry Expert (Energy, Environment & Climate Change made this known last week  at the 12 Emmanuel Egbogah Lagacy Lecture Series held at Emerald Energy Institute, University of Port Harcourt, River State, Nigeria.

Professor Ibe who was the Key Note speaker at the Legacy Lecture Series in hounour of Dr. Emmanuel Egbogah quoted Nenad Miljkovic, a Professor of mechanical science & engineering at UIUC.  “The reality is that fossil fuels aren’t going away for at least 100 years,”  Advocating for greater focus on CCUS Technologies, He said  “A lot of CO2 is going to be emitted before we get to a place where we can lean on Renewables.

“Further, explained the minister, when the UK has reached net zero in 2050, as it is legally obligated to do, it’s estimated that around a quarter of the country’s energy needs will still come from oil and gas.

He said that officials, collectively, in the UK government have failed to tell the people the story of dependence on oil and gas & efforts to decarbonize oil & gas. Nor has anyone discussed the fact that the Energy Industry, is One Industry. “It doesn’t need to be divided into sheep or goats,” emphasized Stuart. “It isn’t divided between the blessed and the damned, the green and the filthy oil and gas. It is one industry.”

“Referring to the potential to exploit new and emerging technologies, such as hydrogen production, carbon capture usage and storage, offshore wind,He also made note that it is traditional oil and gas companies that are going to deliver these projects. “It is, in fact, the oil and gas industry’s expertise, the balance sheets, the engineering, the subsea capabilities that makes net zero possible,” said Stuart accurately.

“WHY then are we being told to ditch this petroleum under our belt because it is damned & filthy and to leap into the other world because it is clean and safe without anyone showing us any credible path to achieving this Eldorado? Who will drive the adoption of Renewable technologies for us if we prematurely snuff out our Petroleum Industry?  Is it going to be another leap in the dark?  Spurred by the subtle threat that if we don’t jump willingly, we will be pushed ? Time to Dare? He asked.

Energy according to him plays a critical role in driving economic growth. “Thus Energy Transition must not compromise energy supply reliability, what we have we must hold! For Petroleum dependent economies, a whole sale embrace of the Global Energy Transition with all its willy-nilly fixed limits and deadlines, will be an EMBRACE OF DEATH”, he maintained.

So, when African Leaders gathered in Nairobi 4-6 September’23 ostensibly to chart a new course for climate action where Africa is part of the solution and not a Victim but ended up accepting in the pre-ambular part their Resolution(para 5 of Nairobi Declaration) that:  Climate Change Is The Greatest Single Most Important Issue Confronting Humanity—-They had been cued to sing someone else’s song – • Where do they place Institutional Poverty, Hunger, Disease and unending conflicts linked to gross underdevelopment engineered by Global geopolitics to pin the Continent down? He asked.

“That song of African Leaders in Nairobi before they flipped out their begging bowls for Aid says:  Our Climate Can’t Afford Any New Fossil Fuel Development; So Keep It In The Ground. And at a time when almost every African country has joined or has every prospect of joining the petroleum producers club with all the promises that this new status portends for the resurgence of National economies in Africa”, he pointed out.

He maintained that this is the time to call a spade a spade and this is moment of reflection

“Given the evolving realities about the continued viability of Petroleum and the evident flip flops of our co-Travelers in the Global Energy Transition journey, is there a necessity for Developing Countries and Particularly African Countries and AOSIS to pause and reflect on ways to navigate the Energy Trilemma of Energy Security, Energy Affordability and Energy Sustainability without necessarily being victims of a herd mentality and strapped to the much vaunted single Track Global Energy Transition Model? • The danger of being left in a lurch is real ! There is nothing immutable in a Treaty – Amendments normal.

Expect Distractions in the path of this resolve – The realities of Geopolitics in a polarized world demand that Africa should watch her flanks.

“Recently, Increasing calls out of global think tanks to developing countries to embark on a twin transition from petroleum to the so called mineral energy materials(MEM’s) like cobalt, nickel, copper,—) as export substitution for their economies, knowing that it takes 5-25 yrs to set up a viable minerals mining industry( after identification of deposits) so it is “pie in the sky” & it is diversionary – pure and simple”, he stressed.

“In the 1980s when the Asian Countries where steaming ahead, in their industrialization plans, there was a slight slump in global economy and the soothsayers predicted a decline in the rate of growth in intensity of solid minerals raw material use, which led to the coining of the term,”DEMATERIALIZATION” It Never Happened . And the Asian Countries who held their nerve and resolve and rather increased their investments went on to smile all the way to the Bank and put their countries on a solid path to sustainable industrial development. That is why they are called the present day Asian Tigers.

“Following the prediction in 1956 of USA geophysicist, Marion King Hubert by which global crude oil production will hit its maximum rate after which production will follow a bell shaped curve & then start to decline irredeemably.  By this prediction USA petroleum extraction was to peak btwn 1965-1971. Worse predictions for other regions. It never happened !  it lured a lot of developing countries with potential petroleum reserves into a situation of “ to be or not to be!”  clear opportunities for development were lost! He noted.

Speaking about the Paris Summit for a New Global Financial Pact 22- 23 June ‘23

Arguing that there is no way we will meet d 1.5 degrees target by 2030 without a carbon price floor: Poorer countries pay less, Middle income countries more Richer countries have the highest price, created a new instrument:– for first time in the history of IMF – long term affordable financing with a 20 year repayment period and 10 1/2 yr grace period. Beware of the ides of March ! he warned.

He stated that Nigeria is in a Vantage Position, so Nigeria, with a developed Petroleum Industry can take the lead in changing the status quo n enlist the AU now that it has been granted G-20 Membership – Test the waters !

“But it must first navigate to a safe operating space. Nigeria must deliberately , aggressively and impactfully reposition its petroleum industry including a reasoned diversification of its value chains & rational pursuit of the National Gas Policy’, he stressed.

Proffering solution to the campaign he maintained first thing should be done first so there is need to ramp up production and build up Reserves of Oil & Gas.  Reduce /bbl production cost – Saudi Arabia, Kuwait @ 11usd but Nigeria 25-35 usd, build internal refining capacity so no one holds the country to ransom – 1.3 mbbl/day at full blast.  Build industrial /manufacturing capacity to use oil & gas as feed stock. Intensify gas to power schemes; maximize gas export/ domestic use- transportation, domestic purposes, etc  How about Methanol plants etc No shortage of possibilities.

it took Singapore only 30 years to transition from third world to first world. Malaysia— similar but not exact History. Rwanda – yesterday, genocide; Today, Shining City on the Hill. It is doable! He maintained.

Speaking further on Fund as a problem, he said, “Out of COP 26 in Glasgow , a coalition of countries, companies and financial institutions have ringed fenced international investment funds( approx. 130trn) for the energy industry in favour of renewable energies”.

Talking about the A Window of Opportunity, he said, Private equity firms are estimated to have invested more than $1tn in the energy industry since 2010 mostly in fossil fuels which underlines where the net zero financing battle is heading next.  I would say , target those funds & if need be, swoop on the Sovereign Wealth Fund. It is created for crunch times like this when new directions become imperative & no help from elsewhere!”, he opined.

“Is it time to review this “ONE SIZE FITS ALL” model of the Global Energy Transition? Is it time for a Reset?  Is this as good a time as any for Nigeria, as the Big Boy of African Geopolitics, to galvanize the Continent to interrogate this global imposition of a monolithic strategy for a livable world and in so doing safeguard our collective future?  So that our children and our children’s children would be able to look back at such intervention in history with pride and say, “That was our finest hour”

IE spends about 250m for replacement of faulty 15mva Power Transformer to boost power supply to Ikorodu Communities

By
Simon Ugwu
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Ikeja Electric Plc, IE, in its efforts to strengthen critical infrastructure to ensure improved service to its esteemed customers in the Ikorodu axis of Lagos State recently replaced the faulty 15MVA power transformer at Sabo Injection Substation, ISS, with a new one.

 

According to the Chief Technical Officer, Ikeja Electric, Olajide Kumapayi, the replacement of the faulty power transformer which costs close to Two Hundred and Fifty Million Naira (N250m), became necessary to ease the menace of poor power supply being experienced by over fifteen thousand customers that are getting supply from the power transformer one (T1) at Sabo Injection Substation before it went bad completely.

 

He noted that the replacement will increase the availability of supply from the previous three hours to a minimum of twelve hours daily. This would be based on the service band tariff class associated with the feeders.

 

Kumapayi stated that nine 11kv feeders were radiated from Sabo Injection Sub-station through the two power transformers which includes Ayangburen, Lasunwon, Lagos Road, Marie, Ladega, Erunwen, Igbogbo, Ijebu-Ode and Eyita communities and environs.

 

He further explained that the construction of a new Injection Substation at the Lagos State University of Technology (LASUTECH) Ikorodu will commence shortly noting that it will provide one dedicated 11kv feeder for LASUTECH and two additional feeders to relieve Erunwen and Ijebu-Ode 11kv feeders in the Sabo Injection Substation. He assured that these investments will no doubt ensure optimal utilization of the technical assets to guarantee wider access and power availability across all impacted feeders in our resolve to meet the demand of our esteemed customers.

 

The company’s Head of Corporate Communications, Kingsley Okotie while expressing IE’s commitment to improved service delivery to her esteemed customers across the entire network coverage area, thanked vigilant customers, community leaders and security operatives who have continued to assist in safeguarding electrical equipment in their neighborhood against theft, vandalism and acts of sabotage as failure to do so will jeopardize concerted efforts of the company from achieving the desired objective of sustainably powering livelihoods, businesses and communities.

NDIC set to pay 1st Liquidation Dividend To The Depositors & Ex-Staff (Deposits) of Defunct Peak Merchant Bank

By
Simon Ugwu
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As the official Liquidator of the failed Banks in Nigeria, the Nigeria Deposit Insurance Corporation, NDIC, in line with its mandate wishes to inform the depositors & ex-staff (deposits) of defunct Peak Merchant Bank that it has concluded preparations to pay their first liquidation dividend.

According to a release signed by the Director, Communication and Public Affairs, NDIC, Bashir A. Nuhu, the verification exercise would enable depositors of the defunct bank to cross-check and ascertain their account information as well as balances with the bank as at closure.

We enjoin all eligible stakeholders of the defunct bank to visit any NDIC offices or visit NDIC Website on www.ndic.gov.ng for verification of their claims commencing from Monday, 18th September to 16th October, 2023 while the duly completed verification forms can also be sent to the Corporation’s email address at:  claimscomplaints@ndic.gov.ng

 

NCC harps on Collaboration  to strengthen payment system 

By
Simon Ugwu
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Caption

L-R: Idris Salihu ,Head of Corporate Services Development Bank of Nigeria, DBN, Chima Titus Nwokoji, National Chairman, Finance Correspondents Association of Nigeria, FICAN, Olukayode Olubiyi Head, Digital Banking, United Bank for Africa, Bashir A. Nuhu, Director, Communication & Public Affairs Nigeria Deposit Insurance Corporation, NDIC, Bola Enigbokan Divisional Head Enterprise Support, Nigeria Interbank Settlement System, NIBSS, and Group Head, Media and External Relations UBA, Nasir Rahman, at the 2023 annual conference of FICAN held in Lagos over the weekend.

The Nigeria Communication Commission, NCC, stressed the importance of a multidimensional collaboration in enhancing the country’s payment system.

 

The Vice Chairman of NCC, Prof Umar Danbatta, said this at the 2023 annual conference of the Finance Correspondent Association of Nigeria, FICAN, with the theme “Strengthening Digital Infrastructure for Efficient Innovative Payment System in Nigeria, held on Saturday in Lagos.

 

The NCC boss, who was represented by a Deputy Director at the commission, Anthony Ikemefuna, noted, “Strengthening digital infrastructure for efficient and innovative payment systems in Nigeria is a long-term endeavor that requires collaboration, investment, and adaptability. By addressing these strategies comprehensively and proactively, Nigeria can build a robust and inclusive digital payment ecosystem that benefits its citizens and drives economic growth.”

 

He stressed the need to improve collaborative efforts between the NCC and financial regulators such as the CBN, to enable proper coordination of policies and regulations related to digital payments and telecommunications.

 

According to Danbatta, this will ensure that the regulatory environment is conducive for innovation and growth.

 

He further stressed the need to encourage partnerships between financial institutions, telecom operators, and fintech companies to develop and deliver innovative digital payment solutions.

 

He added that the country needed to leverage the expertise and resources of the private sector to expand and improve digital infrastructure.

 

“The government should take a leading role in promoting digital payments by setting a clear vision and providing support.

 

“Implement e-government initiatives to promote digital payments for public services and benefits distribution,” Danbatta asserted.

 

He called on telecom operators to support financial inclusion initiatives by partnering with banks and fintech companies to offer mobile banking and payment services to unbanked and under-banked populations.

 

Meanwhile, the Head, Digital Banking, United Bank for Africa, Mr Olukayode Olubiyi, argued that inadequate infrastructure posed one of the greatest challenges to Nigeria’s electronic payment.

 

He added that dearth of operational and telecommunications facilities, as well as unstable power supply had slowed down the growth of electronic payment in the country.

 

In the same vein, the Head of Digital Banking at the United Bank for Africa, Olukayode Olubiyi, harped on the need for collaboration among stakeholders, including financial institutions, fintech companies, government entities, and regulatory bodies, plays a pivotal role in ensuring the success of innovative solutions.

“Ultimately, it comes down to policy, regulation, and collaboration. If parties are willing to collaborate, many of the frictions currently experienced in the Nigeria financial service sector can be mitigated,” Olubiyi opined.

 

He mentioned that many e-payment systems depend on stable power sources and robust IT infrastructure, such as laptops, mobile phones, POS terminals, and dependable internet connectivity.

“During the period of cash scarcity earlier this year, banks faced unprecedented e-payment failures, prompting the urgent need for technological infrastructure upgrades,” he noted.

According to Olubiyi,  the failure of e-payment channels on such a scale compelled customers to wait for banks’ networks to stabilise before completing their transactions.

 

According to him, the challenge of failed transactions in Nigeria’s payment systems necessitates a collaborative effort among industry stakeholders and the implementation of appropriate policies and regulations.

“An increased collaboration among the Central Bank, Telcos, the commercial banks and FinTech to expand internet connectivity and seamless electronic transfers across the country.

“A uniformity in banking applications across the industry could significantly reduce the occurrence of failed or delayed payments,” he added.

Olubiyi also stated that that would require robust technology, stringent security measures, and seamless integration with various payment platforms and financial institutions.

 

“To combat fraud, it is imperative for the government, private sector organisations, and international partners to engage in strong and cohesive collaboration. Sharing intelligence and pooling resources will significantly contribute to the fight against cybercrime.

“Furthermore, this collaboration can extend to investments in cybersecurity infrastructure, including cybersecurity training facilities, incident response centers, and cybersecurity research and development centres,” he reasoned.

 

Meanwhile, speaking earlier, the Chairman of FICAN, Chima Nwokoji noted that the challenges witnessed in the country’s payment system during the cash scarcity provided a window of opportunity for the banking system to be proactive and inventive.

This, he said, would enable them to reap the benefits provided by electronic payments.

 

 

“As banks and fintechs are expanding their financial services portfolios to capture the unbanked and semi-banked, they should not only be expanding their digital infrastructure, but also making it more sophisticated to ensure seamless transaction and safety of funds.

 

 

“In its ‘Nigeria Development Update (JUNE 2023) the World Bank pointed out that Nigeria’s digital and financial infrastructure is inadequate to support a swift transition to a cashless economy.

 

He quoted the multilateral as saying, “The lack of adequate digital and financial infrastructure and processes to support a swift transition to a cashless economy— coupled with the fact that only 40 per cent of adults have a bank account—further exacerbated the situation. The cash shortage resulted in a black market for new notes, inflating overall transaction costs.”

We are set to reduce cement price to N3,500— BUA tells Tinubu 

By
Simon Ugwu
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0

 

 

The Chairman of BUA Group, Abdul-Samad Rabiu, says the company is set to reduce the price of cement in Nigeria.

He disclosed this on last Friday while speaking with State House correspondents after meeting with President Bola Tinubu.

Rabiu said to support the efforts of the government to crash the price of the product, the company would add two new plants at the end of the year or early next year.

According to him, the plants to be commissioned by Tinubu, would bring BUA Cement’s total capacity to 17 million metric tons.

This, he said will enable the company to reduce the price of cement to about 3500 naira per bag.

He said: “Let me thank His Excellency Mr. President for graciously receiving me today. I came to intimate His Excellency on the affairs of our cement business. We have two new lines of 3 million tonnes each that we will be commissioned by the end of the year.

“So I came to intimate His Excellency and also to explain to him the efforts we’re making in trying to support again the efforts of the government in bringing down the price of cement.

“With this 6 million tonnes that are commissioning by the end of the year. And by the way, His Excellency has agreed to come and commission the plants, sometimes in December or early January next year.

“So I explained to him and we want to support the efforts of the government in bringing down the price of cement. By the time these lines are commissioned, BUA Cement will be producing about 17 million tonnes per annum. And with that, we intend to bring down the price of cement from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag.

“And we can only do that because we’re producing cement locally. 80% of the raw materials that we’re using to produce cement are in Nigeria. We want to support the government efforts in ensuring that the price of thess commodities are brought down.

“Incidentally, I also saw the Minister David Umahi, when I was with Mr. President, and we agreed to meet so what we’re going to do by the time we commission these two lines is to announce to Nigerians that the price of cement is going to come down.”

 

7th ACT Foundation Breakfast Dialogue Set to Illuminate Path to Sustainable Development in Africa

By
Simon Ugwu
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0

Allie

The Aspire Coronation Trust, ACT, Foundation is gearing up to host the highly-anticipated 7th ACT Foundation Breakfast Dialogue, BFD, on October 5th, 2023, at the prestigious Lagos Oriental Hotel, Lekki Expressway, Victoria Island, Lagos.

The ACT Foundation Breakfast Dialogue has become a marquee event, drawing luminaries from diverse sectors, to tackle pivotal issues surrounding sustainable development in Africa. This year, the event takes on even greater significance as it zooms in on the transformative potential of Economic, Social, and Governance, ESG, strategies in advancing sustainable development.

Themed ‘Advancing Sustainable Development in Africa: Unleashing the Power of Environmental, Social, Governance Strategies for Impact, this year’s Breakfast Dialogue aspires to bring together an eclectic mix of leaders representing various sectors, all poised to engage in a deep dive into how ESG principles can be leveraged to propel the sustainable development of organisations and, consequently, Africa’s broader sustainable development agenda.

The CEO of ACT Foundation, Osayi Allie,  underscored the significance of this event, remarking, “The 7th ACT Foundation Breakfast Dialogue promises to be a game-changer, offering a unique platform for leaders in the public, private, and social sectors to decode the immense potential that Economic, Social, and Governance principles hold for organisations of various scales. Effective implementation of ESG practices by African institutions can make a monumental contribution to achieving sustainable development across the continent.”

The event’s keynote speaker, Managing Director, West Africa, Mondelez International, Oyeyimika Adeboye, will take centre stage to share her profound insights on this pivotal subject. She will be joined by an esteemed lineup of speakers, including Marilyn Obaisa-Osula, Associate Director, ESG and Sustainability Services, KPMG; the CEO of Natural Eco Capital, Eugene Itua,  the Manager of the Global Reporting Initiative, Africa; Tendai Matika, and the Head of Sustainability and Circularity at Lagos State Waste Management Authority, LAWMA, Mudrakat Alabi-Macfoy.

One of the day’s highpoints will be the unveiling of the finalists and winners of the 2023 ACT Foundation Change makers Innovation Challenge. These exceptional individuals and organisations will secure grant funding and technical support from ACT Foundation, empowering them to amplify their innovative solutions and projects within targeted communities.

 

The E.D, Spaces for Change, S4C, charges communities to seize the opportunities created by PIA to stimulate the sustainable development of their areas

By
Simon Ugwu
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0

The Executive Director, Spaces for Change, S4C, Victoria Ibezim-Ohaeri, has charged communities to seize the opportunities created by the Petroleum Industry Act, PIA to stimulate the sustainable development of their areas.

 

She stated this at the two-day National Extractives Dialogue, NED2023, Host Community Development Trusts, which had “Catalysts for Equitable Benefit-Sharing and Sustainable Prosperity for All” as its theme.

 

Speaking at the just-concluded event, hosted by S4C in collaboration with the Nigeria Extractive Industries Transparency Initiative, NEITI and with the support from Fort Foundation, in Owerri, Imo State, she said: “Chapter 3 of that Act offered a beacon of hope by demanding the creation of the Host Community Development Trusts (HCDTs).”

 

She said: “In these communities, the earth bequeaths massive treasures—gold, ore, tin, limestone, lead, zinc, barite, coal, copper, crude, diamond, crude oil and natural gas—that promise prosperity beyond imagination. For several years, these communities have watched as towering rigs and other mechanical installations rose like giants on their horizon; as pipelines transporting mineral resources crisscrossed their fields, and as trucks laden with crude extracted from their backyards rumbled through their streets.

 

“Native lands, forests, mangroves, trees, rivers and traditional livelihoods shivered under the heavy might of mineral resource extraction while communities raged and begged for a share of the cake baked from the natural resource endowments from mother earth. Not too long ago, transformation knocked gently on the door, in response to the yearnings of local people.

 

She noted that the Nigerian government signed into law the Petroleum Industry Act, PIA, in August 2021.

 

Chapter three of that Act, according to her offers a beacon of hope by demanding the creation of the Host Community Development Trusts, HCDTs.

 

She said: “Under Section 240 of the Act, the benefits of natural resources must now flow back to the communities where they came from. Extractive corporations—whether indigenous or international—are now required to contribute 3% of their actual operating expenditure to the Host Community Development Trusts.”

 

Speaking further, she said: “With a promise to accelerate economic and social development of communities in the petroleum-producing areas, the Act made new arrangements for fostering sustainable prosperity within the host communities; providing direct social and economic benefits from petroleum operations to the host communities; and determined to enhance peaceful and harmonious co-existence between extractive corporations and their host communities. What do these new arrangements mean? It means that host communities now have the right to benefit from natural resources tapped from their backyard.

 

“And these benefits according to her are no longer acts of corporate benevolence, but an entitlement to partake in the design, content and structure of their own development, and most importantly, participate in the governance and administration of petroleum resources through their membership of either the Board of Trustees, the Management Committees or any of the advisory bodies created under the Act.

 

“The failure of a company to comply with these requirements is a ground for revocation of National Extractives Dialogue, NED2023, Host Community Development Trusts: Catalysts for Equitable Benefit-Sharing and Sustainable Prosperity for All their License or Lease. As if these assurances are not enough, the PIA gave birth to the Nigerian Upstream Regulatory Commission (NUPRC) entrusted with overseeing the implementation of HCDTs.

 

“What the PIA has simply done is to create the right of host communities to benefit from natural resources. It means that host communities have moved away from an era of charitable developmental assistance to a new era of entitlements and human rights.

 

“To give life to these promises, SPACES FOR CHANGE has consistently monitored policy implementation at the grassroots, generated knowledge products, shared information, and engaged most of the host communities gathered here today to empower, sensitize and channel their concerns to the appropriate target agencies and corporations.

 

“At the core of our gathering today lies a profound concept—that Host Community Development are not just legal constructs; they are instruments of change, vehicles for hope, and beacons of progress.

 

“They represent a fundamental shift in how we view, engage and manage natural resources in Nigeria. They are the keys that unlock the door to equitable benefit-sharing ensuring that prosperity becomes the birthright of every member of our community, and not the privilege of a select few.”

 

She also said: “They serve as a bridge connecting the aspirations of host communities with the operations of extractive industries. It is against this backdrop that stakeholders in the extractive industry from Nigeria and Ghana have gathered here today, to collectively evaluate the progress that has been made in establishing Host Community Trusts in all areas where oil and gas extraction takes place”, she pointed out.

 

“Our discussions over the next two years will delve deep into critical matters related to the implementation of HCDTs such as the governance structure and management, funding mechanisms, equitable benefit-sharing and implementation, community participation, project adaptability, monitoring and evaluation, conflict resolution, participatory needs assessment, long-term investments options for communities and intergenerational roadmaps”.

 

The theme of this year’s National Extractives Dialogue, NED, 2023 titled, ‘Host Community Development Trusts: Catalysts for Equitable Benefit-Sharing and Sustainable Prosperity for All,’ according to her is not merely words on paper.

 

She said: “It is the clarion call for change, a call that resonates with every heart present here today. Therefore, as we commence these two days together, SPACES FOR CHANGE and the Nigeria Extractives Industry Initiative, NEITI, invite each and every one of you, our dedicated participants, to lead the way in our journey with the reminder that the ability to enact real change resides within us all.”

 

“Over the next two days, we stand on the threshold of transformative discussions, the forging of connections, and the realization of shared aspirations. With open hearts and minds, let us embrace the promise of equitable benefit sharing, sustainable prosperity, and a brighter tomorrow. With unwavering determination”, noted the Director.

 

Similarly, the Executive Secretary, NEITI, Orji Ogbonnaya Orji, said: “My presence in Owerri and at this event to support Spaces for Change is in furtherance of our partnership and collaboration with civil society organisations to deepen implementation of EITI at sub-national levels.”

 

Also speaking, the Commissioner, Ministry of Petroleum Resources, Imo State, Professor Eugene Ukachukwu Opara, said: “Extractive companies within our rural communities were operating under what they coined as Global Memorandum of Understanding, GMoU, as it relates to dealings with their host communities.”

 

He said: “Until S4C intervention, Assa North Ohaji, ANOH, host communities signed GMoUs without having external contacts with other organizations and situations that could give them sound legal advice and alternative information that could enrich the quality of negotiations with extractives companies. A negotiation with unequally endowed or unbalanced teams can be exploitative.”

 

However, the Commission Chief Executive, CCE, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gbenga Komolafe, who was represented by the Regional Coordinator, NUPRC, Owerri, A. M. Uviovo, said: “The communities are therefore advised to take ownership of the facilities located in your domain to enable you to obtain the maximum benefit of the provision of Petroleum Industry Act (PIA), 2021.”

 

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