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Seplat Says Community, People Empowerment Critical to Energy Sector Stability

By
Simon Ugwu
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Seplat Energy Plc, says the execution of corporate social investment, CSI,  programmes in oil and gas producing communities as well as empowerment of their people is capable of promoting stability in the energy sector and ensuring security of critical national assets.

Samson Ezugworie, Chief Operating Officer, Seplat Energy, said this during the Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum (SPE OLEF) 2024 organised by SPE Nigeria Council in Abuja recently. The theme of this year’s SPE OLEF is Stability in the Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security.

Ezugworie, who spoke during the Energy Forum Discussion Session, said operators and the energy industry at large must refocus on sustainability and think long-term. “In tackling security and ensuring stability in our industry, we must “think sustainability” and operate responsibly. In doing this, we must collaborate; as we can impact our people and communities more collaboratively,” the Seplat Energy COO advised.

Identifying the various social investment programmes executed by Seplat Energy yearly in communities where it has operations, Ezugworie said health, educational, infrastructural and skills/knowledge interventions are executed as part and parcel of business strategy, which is in tune with Seplat Energy’s sustainability journey. Seplat Energy also executes projects targeted at solving energy problems for the communities and increasing energy access for the people. “Operators should be very intentional about these interventions. They don’t come by chance. The idea is to continue to service our partnership with our communities,” he added.

“If you keep people empowered and included, they will find less reasons to be agitated or violent. Of course, they will become your partners and show willingness to work with you for the common good of all,” Ezugworie added.

He commended the Nigerian National Petroleum Company Limited (NNPCL) and the government for their efforts in securing the oil and gas assets in the country, adding that there are opportunities to do more to further ensure a more stable industry. Particularly, Ezugworie commended the government for the recently signed three Executive Orders on the oil and gas sector, identifying the action as a needed step in the right direction.

Identifying investment inflows in the energy sector as also critical in driving stability, the Seplat Energy boss said the company’s ANOH gas plant, which achieved mechanical completion in December 2023, will be a major game changer. First gas from the ANOH plant is expected this year, which will make Seplat Energy a leading domestic supplier of gas. The ANOH gas plant will provide feedstock for the OB3 pipeline nearing completion.

He also identified the divestment programmes of the international oil companies, IOC, as also key in the quest to stabilise the country’s oil and gas sector, saying successful completion of the programmes are capable of creating and retaining more value for the industry and the Nigerian economy at large as is evident in success stories of Seplat Energy and other indigenous operators that have recorded giant strides over the years.

Stressing the need for Nigeria to secure its critical national assets like oil and gas pipelines, Ezugworie said pipeline inspections via sensors, drones and robots, amongst others, are essential. Despite the fact that these technologies can detect and locate defects, anomalies, and threats in real time, and provide data and feedback for maintenance and repair, Ezugworie said there is the need for improved response time to actually address the challenges.

He added: “If you look at what the NNPCL is doing today to combat oil theft, you will see that the journey has already started. The platforms have been built for the collaboration among stakeholders to thrive. But we still see some of these threats recurring.

“In the area of collaboration, we need to improve more when it comes to intelligence sharing. Strong collaboration between government agencies is also very key. The relationship between these government agencies should be very cordial to boost response time when the need arises. Implementing these strategies will significantly improve collaboration between security agencies and industry stakeholders in Nigeria, leading to better intelligence sharing, coordinated response efforts, and enhanced security outcomes.”

Egbin Power receives FG’s assurance on debt settlement, improved gas supply  

By
Simon Ugwu
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0

Caption:

L-R, CEO, Egbin Power, Mokhtar Bounour; Minister of Power, Adelabu Adebayo and Group Managing Director, Sahara Power Group, Kola Adesina during the visit of the Minister of Power to Egbin Power Plant, Lagos.

 

 

 

This was made known during the Minister’s visit to the power Plant as part of his strategic measures to strengthen understanding among stakeholders, offer robust support to players, and address the challenges in the sector, with the overall aim of boosting power supply in Nigeria.

 

While affirming the commitment, the Minister said: “The Federal Government is prioritising paying down on the outstanding debt and I have assured the Board and Management of Egbin Power that, effective April we will start paying as a form of encouragement to continue to have them in operations.”

 

Regarding the constraints encountered by power generation companies in accessing Foreign Exchange, the Minister explained that crucial steps are being taken to prioritize allocation of Forex to the power generation companies.

 

“Forex sourcing has been a major constraint to effective maintenance of the facility. I have seen what we have on ground here, and the critical need for spares and tools for continuous maintenance. We will liaise with the Central Bank of Nigeria (CBN) to prioritize Foreign Exchange allocation to the power sector.

 

“This will ensure the companies are able to ramp up capacity in terms of output. It is not just peculiar to Egbin Power Plant, it is across all the power generating Plants. They need Forex for them to be able to maintain the turbines, replace tools and spares. This has been a major issue. I am going to takes steps to ensure I liaise with the CBN to see how they can prioritize Forex allocation to the power generating companies,” the Minister added.

While speaking on challenges of gas supply, he explained that engagements were held with the Ministry of Petroleum Resources and gas suppliers as part of measures to guarantee payment of debts and resolution of the gas constraints.

 

“Gas shortage has been an impediment to almost all our gas power plants. And we already had conversation with the Honourable Minister of Petroleum Resources. We are also meeting with the gas suppliers to plead with them and have an understanding that the FG is prepared to start paying down on the debt that we owe the gas supply companies.

 

“We need to make some cash injection in terms of payments, we want to give them some guaranteed debt instruments in terms of promissory note. And we are looking at allowing them access to Nigerian gas wells. So that this will be used to defray the outstanding debt of the gas suppliers over time,” he explained.

 

The Minister commended the Board and Management team of Egbin Power for its robust investment to improve, sustain and maintain the Plant’s infrastructure and facility, while contributing largely to the sector despite the challenges.

 

While stressing on the impact of the debt and gas constraints on the Plant, the Chief Executive Officer/CEO Egbin Power, Mokhtar Bounour said: “One of the major challenges we are facing is gas constraint, which is not allowing us to run the full capacity of the Plant. It requires a lot of investment efforts to keep the units running and safe.

 

“The other issue is the accumulated debt which the Minister discussed with us. On our part we are adequately ensuring the maintenance, availability of the Plant and its efficiency. We are investing a lot to get these units to run optimally. This requires millions of dollars in investment,” Bounour explained.

 

He commended the Minister for his commitment to address the challenges. “We highlighted the challenges we are facing, and the Federal Government, through the Minister of Power, has promised to start solving them gradually so we can start seeing improvements in the near future. We hope that the liquidity challenge will be solved soon as the Minister has promised,” Bounour  stressed.

Manufacturers Association of Nigeria advocates for balanced regulatory environment

By
Simon Ugwu
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The Manufacturers Association of Nigeria, MAN, has urged regulators and the buying public to engender an atmosphere that promotes objectivity and fairness, whilst safeguarding the interest of the consumer and protecting the business and integrity of the manufacturer.

The Director General of the Association, Segun Ajayi-Kadir, emphasized the need for intentional steps to protect manufacturers from the adverse effects of social media trial and defamation and ensuring fairness for all stakeholders. Addressing the Impact of Social Media Defamation, Ajayi-Kadir said this could significantly affect their businesses and even threaten their existence. He stressed the need for measures that recognize the challenges faced by manufacturers in Nigeria and encourage consumer patronage and empathy.

He of the opinion that manufacturers should be protected from the adverse effects of unverified negative claims about locally manufactured products. While acknowledging and encouraging consumers’ right to voice legitimate complaints through appropriate channels, he underscored the significance of holding consumers accountable for spreading false information about local products and attempting to vilify local manufacturers in the public opinion place.

Drawing from a recent experience involving a member company, Erisco Foods, and an incident with a dissatisfied customer, MAN highlighted the need for equal protection of manufacturers and consumers’ rights. The case underscored the importance of diligent investigation as carried out by the Lagos state consumer protection agency and the standards organization of Nigeria which exonerated the manufacturer of the said product. The two agencies should actually be commended for unravelling the truth of the case.

Highlighting the challenging business environment in Nigeria, MAN emphasized the critical role of consumer patronage in maintaining the viability of local manufacturing businesses. The association stressed the negative impact of unverified statements on businesses, even when product validation confirms their quality, and urged government agencies to take deliberate steps to protect manufacturers while protecting the right of the consumer.

Emphasizing the need to support Nigerian manufacturers and elevate the perception of locally made products, MAN calls for a shift in consumer behavior towards patronizing domestic goods and showcasing their quality to the global market. The association underscored the importance of mutual accountability between manufacturers and consumers to foster economic growth in Nigeria.

“MAN’s advocacy underscores the importance of balanced regulatory policies that protect manufacturers while upholding consumer rights, ultimately aiming to foster a conducive environment for sustainable business growth in Nigeria and the wellbeing of its people. As a responsible association, MAN is committed to ensuring that the case is resolved amicably”, stressed the DG.

March 28, 1924: TotalEnergies celebrates 100 of operation

By
Simon Ugwu
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TotalEnergies’ 100,000 employees in 120 countries worldwide are pleased and proud to celebrate the 100th anniversary of the Company’s creation.

TotalEnergies’ 100-year history tells the story of the world and energy, from the 1920s to the present day. A bold and visionary decision On March 28, 1924, Compagnie Française des Pétroles was founded in France, a country without any oil.

This bold and visionary move marked the start of a century-long saga. To secure France’s energy supply, our company would travel to the four corners of the globe, adapting and growing throughout the century and its many technological and geopolitical upheavals. Pioneers for 100 years Unlike its rivals of the day, we did not have access to local resources.

This is why the company built its competitive advantage on international expansion and technical prowess. These two factors have shaped our pioneer spirit and our journey to this day.

Over the years, the company has continuously pushed back the boundaries – both technical and geographical – while also adapting to changing needs and customer expectations. This is how we accompanied the remarkable progress and development that took place in modern society during the 20th century.

TotalEnergies also acquired additional expertise and experience by teaming up with Petrofina and Elf-Aquitaine, and more recently with Maersk Oil, Saft or Direct Energie. Becoming a multi-energy company While oil was the energy of the 20th century, natural gas and decarbonized power are central to the energy system of tomorrow. Natural gas is necessary to the energy transition, as a support for the rise of intermittent renewables and as a substitute for coal, which emits twice as much CO2 in power generation.

TotalEnergies is currently the world’s third-largest player in liquefied natural gas, LNG. And in electricity, we are one of the most dynamic solar and wind power developers in the world. Electricity is the energy at the heart of decarbonization and the 21st century will clearly be electric. Driving the energy transition Since 2020, we have been resolutely implementing a transition strategy anchored around two pillars: hydrocarbons (including LNG) and electricity.

The company’s ambition is to successfully achieve our transition and support our customers with theirs. The challenge is to supply the world with the affordable energy required for its development while also reducing emissions. That is the “just, orderly and equitable” transition called for by COP28. Drawing on the pioneer spirit that guides us, we will continue to adjust and adapt as needed to be part of the story of energy for another 100 years!

Vision 20: VFD Group hosts Readland Foundation students to celebrate Women’s historic month

By
Simon Ugwu
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0

In a world brimming with untapped potential, the need to nurture and empower our youth has never been more pressing. VFD Group, a leading proprietary investment company, recognizes the importance of early mentorship and has embarked on a socially conscious initiative known as Vision 20.

 

On the 8th of March, the investment company opened its doors to students from Readland Foundation, marking a special celebration of International Women’s Day and Women’s History Month. The visit was meticulously designed to provide young girls with invaluable insights into business processes and organisational culture, aiming to ignite their aspirations and fuel their dreams.

Led by esteemed employees and executives including Niyi Adenubi, Executive Director, Business Development & Investment Management; John Okonkwo, Executive Director, Finance, Risk  & Compliance; Morenike Ominike, Chief of Staff to the GMD/CEO and Head, Regulatory Compliance; Muyiwa Olowoporoku, Head of Marketing & Corporate Communications; Nkem Offonabo, Head, Human Resources; Chinenye Ezeh, Treasury Officer; and Elmer Aluge, Soft Power Specialist; representing diverse backgrounds and skill sets within the Management team.

The day unfolded with a series of interactive sessions, where students were encouraged to set goals, believe in themselves, and embrace the importance of societal impact.

 

This visionary program is not merely about empowering young women; it’s about laying the foundation for a brighter, more equitable future.

 

At its core, Vision 20 is a commitment to fostering gender inclusivity and leadership development, particularly among young women. It’s about providing them with the right tools, resources, and support they need to thrive in a world of limitless possibilities.

 

 

Through mentorship from seasoned female executives within VFD Group, Vision 20 pairs aspiring young women with mentors who provide invaluable guidance and knowledge to help them excel in their chosen paths. But Vision 20 is not just a short-term endeavour; it’s a long-term commitment to tracking the progress and success of these young ladies over the next two decades. This ensures ongoing support and guidance as they navigate the complexities of adulthood and leadership.

 

The importance of mentoring cannot be overstated. Through Vision 20, VFD Group is not just imparting knowledge and skills to these young women; they’re instilling confidence, resilience, and a sense of purpose. They’re opening doors and expanding horizons, showing these individuals that with determination and support, anything is possible.

 

The highlight of the mentorship session at VFD Group was a visit to the office of the GMD/CEO, Nonso Okpala. Impressed by the students’ ambitions, Okpala delivered an inspiring message, urging them to think big and pursue their dreams fearlessly. “Hold on to your dreams and push yourself forward,” he exclaimed. “Remember, when your ambition scares you, that’s when you know you’re on the right path.”

As part of its commitment to empowering young women, VFD Group provided mentorship and seed funding to support their education. The provision of seed funding to each visiting student, presented by the company’s GMD/CEO, underscored the company’s dedication to nurturing future leaders.

 

In empowering the students of Readland Foundation, VFD Group isn’t merely shaping individual destinies; they’re sculpting the future of our nation. As these young women embark on their journey, embedded in the unwavering support and belief of VFD Group, we eagerly anticipate witnessing the remarkable achievements and contributions they will undoubtedly make to society. As Women’s History Month draws to a close, what better way to wrap up this celebration than with VFD Group’s visionary initiative, Vision 20? With the seeds of empowerment planted and the path to leadership set in motion, these young women stand ready to carve out a future where their voices resound with power and their achievements leave an indelible mark on society.

CBN’s recall of BDCs into FX Market boosted Naira Recovery- says Gwadabe

By
Simon Ugwu
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0

Gwadabe

…Naira up by N660 since BDCs’ return to FX market

 

The Association of Bureaux de Change Operators of Nigeria, ABCON, an umbrella body of the Central Bank of Nigeria, CBN,- licensed  Bureaux de Change, BDCs, has lauded the decision of the Olayemi Cardoso-led CBN to recall BDCs into the mainstream FX market as a major factor in ongoing exchange rate stability.

 

In a statement released at the weekend, ABCON President, Aminu Gwadabe, said aside monetary policy tightening that led to increase exchange rate and more investment in government instruments, the clearance of $7 billion forex backlog forward commitments, the recall of the BDCs was also a significant move by the apex bank to boost dollar liquidity at the retail end of the forex market.

 

Gwadabe therefore expressed ABCON’s gratitude to the Cardoso-led CBN and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate transmission mechanism in forex management.

 

“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demisfied  illegal economic behaviours of hoarding, rent seeking, round tripping and FX holding position, and led to the emergence of exchange rate convergence”, he said.

 

The President also stated that the stability in exchange rate has already started to have positive impact on the prices of goods and services. For instance the price for international school fees has dropped by 15 per cent; cost of medical tourism reduced by 20 per cent and air fares for local and international trips dipped by 25 per cent.

 

“The current developments in the foreign exchange market has started reigning in inflation as prices of most necessities are becoming relatively lower in the market. In a most serious note, the positive impacts include also heighten confidence of the public in the local currency as it eliminates currency substitution behavior which hitherto being adding pressure on our local currency”, he added.

 

Gwadabe said the success story is unending as naira trades at N1,255/$ on Saturday, even lower than N1,269.765 that the rates BDCs are advised to sell.

 

Describing the ongoing market development as revolutionary, he said stable naira will attract more foreign portfolio inflows to the economy.

 

The President maintained that the naira has appreciated from February low of N1,915/$ to N1,255/$ representing N660 gains for the naira, which is significant by all measures.

 

Gwadabe said the gains of the CBN under Cardoso to recognise the power of BDCs in securing stable exchange rate can not be over emphasised.

 

He also said tha previous practice where Nigerians took dollars from Nigeria for Hawala activities have seized as the reverse is the case where the purchase of dollars in Dubai is cheaper than in Nigeria and therefore created a  Business opportunity for dollars inflows rather than outflows to the economy, after the rapid recovery of the naira against dollar.

 

Going forward, he said that prospects for forex earnings are promising, with foreign portfolio investments on the rise and over $1.5 billion inflows few days after Monetary Policy Committee raised interest rate by 200 basis points.

 

He said increases in foreign exchange inflows into the economy through the CBN’s monetary instruments is helping to boost foreign reserve accretion and gives the apex bank the necessary power to continue to defend the local currency.

 

“It is our view that the collaboration between the BDCs, CBN, National Security Adviser, Economic and Financial Crimes Commission, EFCC, as well as support from the Presidency helped in creating the opportunity for building the foundation of this achievement. Overall the combination of these actions have induced an atmosphere of public calmness, confidence, hopes and liquidity in the markets.

We call therefore on the CBN to continue to calibrate the existing relationship between the BDCs and the apex bank to sustain the success story,” he said.

 

In response to the recent reforms in the financial industry Abcon reiterates it resolved to ensure that its continue with the collaboration with the cbn to carry all its members in achieving a win win situation to avoid Exclusion and hijack of the sector by the big boys in the process and of safeguarding of our members investments, skills, capacity, loss of capital and unintended consequence of unemployment and worsening insecurities.

 

Nigeria is committed to combating illicit financial activities says FIRS Chairman 

By
Simon Ugwu
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0

 

Caption

 

From Left: Technical Assistant with the Coalition for Dialogue on Africa, CoDA, Olamide Fagbuyi;  Executive Director of CoDA and Head of the Secretariat of the African Union High_level Panel on Stopping Illicit Financial Flows from Africa, Souad Aden-Osman; the Chairman of the Inter-Agency Committee on Stopping of Illicit  Financial Flows from Nigeria and chairman, Federal Inland Revenue Service, FIRS, Zacch Adedeji; and the adviser on Economic Matters to CoDA, Professor Sylvian Boko, during a visit to Adedeji at the Revenue House in Abuja, last week Thursday.

 

 

The Chairman of the Federal Inland Revenue Service, FIRS, who is also the Chairman, Inter-Agency Committee on Stopping Illicit Financial Flows in Nigeria, Saach Adedeji, has reiterated Nigeria’s commitment to combating illicit financial activities within its borders and across the continent.

 

Adedeji gave the assurance while addressing the delegation from the Coalition for Dialogue on Africa, CoDA, led by it’s Executive Director and Head of the Secretariat of the African Union High-level Panel on Stopping Illicit Financial Flows from Africa, Souad Aden-Osman, on a courtesy visit to the Revenue House in Abuja recently.

 

He briefed the delegation on the ongoing initiatives of the Inter-Agency Committee and highlighted the challenges and opportunities in curbing illicit financial flows.

 

He also emphasized the need for policy frameworks, regulatory mechanisms, and capacity-building initiatives aimed at enhancing transparency, accountability, and integrity in financial transactions.

 

In her remarks, the Executive Director of CoDA commended Nigeria’s efforts in combating illicit financial flows and emphasized the importance of regional cooperation to effectively tackle the transnational nature of financial crimes.

Aden-Osman underscored the need for holistic approaches that address both supply-side and demand-side factors contributing to illicit financial flows.

 

She expressed CoDA’s readiness to support Nigeria’s efforts through knowledge sharing, advocacy, and capacity building. She emphasized the importance of empowering civil society organizations, promoting public awareness, and leveraging technology to detect and prevent illicit financial activities effectively.

 

The visit underscored the shared commitment of CoDA and Nigerian authorities to work together in advancing the agenda of stopping illicit financial flows from Africa. Both parties agreed to continue their collaborative efforts and explore innovative solutions to address the multifaceted challenges posed by financial crimes.

 

The delegation and Nigerian officials exchanged views on best practices, lessons learned, and potential areas for further collaboration to strengthen the resilience of African economies against illicit financial flows.

 

Established in March 2009 as an independent and international but African-owned forum, The Coalition for Dialogue on Africa, CoDA,  identifies and discusses issues of importance to Africa’s development within a global context.

 

NNPCL Focus is to Deliver Gas into Domestic Market– Kyari

By
Simon Ugwu
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0

Kyari

At the 2024 edition of CERAWeek by S&P Global holding in Houston, the United States with the theme, ‘Multidimensional Energy Transition: Markets, climate, technology and geopolitics,’ the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari spoke on the ongoing transformation at the national oil company and issues around energy affordability, availability and security among others.

Excerpts

Take us through some of the transformation that has been going on at the NNPCL?

The NNPCL is clearly the largest oil and gas company in Africa and also the largest corporate entity in Africa. It is very critical to Nigeria’s resource management. Everything that we do in our country has a lot of connection with the NNPCL

So, in the past, this company was a corporation clearly owned by government and it is also a national company, it does many things that are typical of many past national oil companies and we need to move away from that situation. We have reformed the process that took us to where we are today and converted it into a fully limited liability company that means it’s answerable to shareholders. Today, the shareholders are largely the entire population of the country, which is very understandable, and we have started the situation where we can have other people earning interest in this in this company. By this, what we did was to create a company that must pay taxes, pay royalties, and also, at the end, is able to provide dividends to the shareholder.

The oil and gas industry in Nigeria has matured to an extent that we can say any company operating, not just us, can actually break even on to the next benefit level.

What’s really happening today is that we have a national oil company, which is commercial which has progressed from a loss-making company typically to now a profit-making company that is able to not just provide dividends to shareholders, create value to its stakeholders, and its partners, some of them are international companies, some local companies in a manner that benefits all but ultimately, fully accountable, a company that can actually migrate ultimately to a quoted company.

So, does this mean that the government will give up its own shares when the NNPCL becomes a quoted company?

It’s clearly in the new law establishing the company. What happened was that there was a reform process backed by law, it’s called the Petroleum Industry Act. and what that did is to provide a pathway to getting this company quored. So, it does create that opportunity never existed in the past, and therefore, ultimately, at maturity, this company would be owned by shareholders

Is there a date when the NNPCL would be quoted?

The law anticipates within three years of incorporation of the company, we can start the process right and therefore, we are within sight.

One of the problems that the NNPCL has suffered from is the crude oil theft in the Niger-Delta. How is NNPCL addressing that?

Clearly, oil theft is not necessarily a local challenge. It does happen in very many jurisdictions, but perhaps in today’s context, we see it in our country. The NNPCL is working on it, and it is fighting oil theft in our country. Yes, it’s up normal, but it’s well within control. We’re able to recover most of our production and building back confidence so that investor can put their money into the business and, of course our advocacy is always that you can’t steal oil and taken to the market. This market is a very global market, and it makes very big business sense when we see it from that context. The way you see blood diamond is the same way you almost see it because oil that comes from somewhere typically ends up in the refinery. We know where oil is coming from and those transactions, you know, pass through banks, regulatory institutions, and therefore while we know and understand that it’s a local problem, but clearly, it’s an international misfortune.

What we’re doing today just to give an example in context. In 2022, production fell below a million barrels. Today, we have come back to 1.6 million barrels per day. We actually reached up to 1.7 million barrels per day. That means recovery of over 700,000 per day.

So, where’s the focus of your investment now? Is it in the upstream gas, or oil sector?

Today, our focus is building our capacity to deliver gas into the domestic market. Yes, we understand you all need gas, and we also see the clear connection between energy availability, sufficiency, and development of gas in any country that is gas rich country. We’re actually a gas country with associated oil, any people don’t realise this, we have more gas than oil equivalent and that means our focus to see how can we use gas to provide the alternative fuel that we need. We understand the ongoing conversations around energy transition, but what we are trying to sort out is the issue of energy availability and the cheapest route to that in our context is to develop gas into the domestic market and provide a replacement fuel before you really worry about something else. Yes, our focus is on gas for the domestic market. So, our focus is building the gas, developing the resources,

Does this mean this has been a long objective to harness the gas and get it into the market?

Yes, absolutely because we see a clear opportunity that gas created today, which wasn’t there 10 years ago.

Are you building the pipelines and networks now for the gas?

Today, we were building a number of trunk lines that will supply gas within our network. And, of course, it’s very understanding as NNPC is driving us forward in this situation. And building the infrastructure means that people will upscale and can actually now produce the gas, or put into our network and this synergy is working and, perhaps within the next three, four years, there will be clearly in country, gas infrastructure.

What is the scale of investments that would be required for these gas infrastructure projects?

What we see is that we will probably need between $10bn to $15bn in two to three years. That should cover the immediate gap. And of course, looking beyond providing gas in the domestic market, which is to see how relationships and partnerships can create gas for export.

And of course, when you look at that, and then probably for another incremental $10bn to $12bn and creating the opportunity for growth.

Do you think there are new opportunities for Nigeria in terms of the LNG global gas market?

There is an ongoing engagement, and it is at a very advanced stage to create a pipeline that can pass through 13 African countries into Morocco and then jump into Europe. What that will do is to create integration among the African countries, a number of countries that do not have gas resources so that that collaboration will enable them have access to those pipelines, and our estimate is to see a $25bn project. The alternate route is to pass through the centre of our country all the way through the Sahara into Algeria into Europe and this is very clear, it is practical, we do not have issues around availability of the gas resources because it is there and of course we also understand that maybe a little slower but surely much cheaper process of transporting gas across the region.

Have these projects fully started, or are they just at the planning stages?

The Nigeria-Morocco gas pipeline is beyond planning. We hope to see FID by the end of the year.

Do you see opportunities to expand Nigeria’s role in LNG with the US and with Qatar and other developments. Are those opportunities still there?

Obviously, yes. Today, we were building Train 7, and it will likely double our current capacity in the NLNG . Also, we are working on two other projects. One is the fixed LNG project and we have reached an advanced stage of commitment so that we can bring back another 10 million tonnes facility in the country, and several other floating LNG projects but obviously, we have a line of sight around at least three to 4 LNG projects, We are also engaging our partner to see how we can add another train on the LNG making it eight. We see huge opportunities.

The theme of this conference is the multi-dimensional energy transition. How does NNPC see the issues and questions around energy transition for Africa and Nigeria?

It’s a very difficult situation for Sub-Saharan African countries. In some countries, many developing countries, and mostly in Sub Saharan Africa, we are actually dealing with energy availability and not transmission. Energy availability clearly speeds to energy security. This is very common, and we have seen it in all the challenges that have been thrown up by recent geopolitical events and issues around energy transition. It is clear that the country’s most secure security of supply to the country. And you can talk about energy security when it’s not even available. For instance, in most of our country, about 70 per cent of the populations don’t have access to clean cooking oil, about 50 per cent don’t have access to electricity.

So, it’s clearly a gap that you have to fill. And what’s the best way of doing it?

Typical is everyone assuming that what you need to do is to cover that with renewables, but you must find the money for the renewables. So, where’s it going to come? From a resource dependent country like our country. If you say you’re going for complete substitution today, then you are actually sacrificing the possibility of the alternative renewable platform that will be required.

Therefore, for us, the transition must be differentiated. You have to deal with the challenges of today. Unfortunately, this is what it is. But you have to deal with the problems of supply today in the sense that there’s absolute scarcity of energy in many African countries. So, we’re dealing with them, and we are very conscious of the fact that our business creates many impacts on the environment. No doubt, nobody’s disputing this. You’re not doing a catch off. Otherwise, if you say, look, switch off the whole of Africa’s contribution to emissions, probably you are going to switch up 3 per cent and it won’t make any difference even if you switch it off.

We understand that there is no competition around, but the reality is that you all need to support countries in Sub Saharan Africa in particular to close that energy availability gap.

  The Whistler

 

FG Approves Funding of 30km Dualization of three sections of Benin- Lokoja Highway Under Tax Credit Scheme by BUA Group

By
Simon Ugwu
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0

Caption

Minister of Works,  David Umahi, (2nd from right) Adams Oshiomhole, (2nd from left) Monday Okpebholo (1st from left) and Permanent Secretary, Federal Ministry of Works, Yakubu Adam Kofaramata|(1st from right)

 

In a bid to provide urgent and accelerated   intervention on the critical sections of the Benin- Lokoja Federal Highway, the Renewed Hope administration of the President of Nigeria, President Asiwaju Bola Ahmed Tinubu has approved the immediate funding of 30km dualization of three sections of the road, to be funded under Tax Credit Scheme by BUA Group.

A statement issued by Orji Uchenna Orji, Special Adviser ( Media) to the Minister of Works, noted that the Minister of Works, David Umahi made this known during a meeting with all the contractors handling the Benin- Lokoja Federal Highway and some stakeholders from the area.

The Minister said that the Ministry took some steps to review the texture of the pavement of the project to conform to the new innovation introduced by Renewed Hope administration to ensure best standards and durability.

According to him, “I first went through the road in September, and when I went through it, I was very satisfied that the BPP and the Ministry did very fantastic work. But all I did was to keep the project but review the texture of the pavement. And so we allowed the existing carriageway to be on asphalt and then reviewed the new carriageway to be on concrete. Being satisfied, we went through the process of notifying the BPP, and from there, we went to FEC, and graciously, FEC approved, and so we are in the process  of signing  an addendum  to the contract.

“Mr. President has approved that BUA Group should do 30km of the road in 3 locations multiplied by 2, that is 60km on Tax Credit”

The Honourable Minister  commended  BUA Group for their interest to handle the  construction  of the  30 km carriageway under Tax Credit  Scheme and said the intervention was targeted  at the critical  sections  of the road as already  isolated when he last visited the  Benin- Lokoja road.

“Let me commend BUA plc very highly, because on their own they had indicated interest to do about 30km of the road on tax credit. That was one of the reasons I decided to go and revisit the road to know the section they needed to do and also to open the road. So, we had to open the road. We appealed to the road transport workers that work would start Monday, the next week. That was 18th, and indeed, we briefed the President, and then Senator Adam Oshiomhole now came with the full weight of his person”, he said.

Speaking on behalf of the people of the area, the Senator representing Edo North Senatorial District and Chairman, Senate Committee on Interior, Adams Oshiomhole praised the determination of the Renewed Hope administration of Mr. President in changing the socio-economic narrative of the nation through aggressive road infrastructure transformation and the uncommon commitment of the Minister of Works in achieving the vision of Mr. President on road infrastructure development.

The Senator who came in the company of the APC Candidate in the Edo State September 2024 Governorship election and Senator representing Edo Central Senatorial District, Monday Okpebholo expressed his profound pleasure over the new paradigm in the Federal Ministry of Works, noting that the Ministry under Umahi has recorded unprecedented performance in the road infrastructure development within the shortest period of time.

“I was shocked that within 72 hours this Minister did not only hear the word of the President, he packaged what I have seen from the briefing to be a doable and workable approach to solving a problem that four or five ministers before him could not solve. So I wish to ask us to appreciate his energy, his drive, and his focus, without which we will not be here today,” he said.

In their separate remarks, the Governorship candidate of APC in Edo, Monday Okpebholo said, “Mr. President has rekindled our hope. Just within the shortest time of our request to the Minister, magic has been done, if this is how Nigeria works; everybody will want to come back home, nobody will want to ‘japa’.”

On his part, the Group Executive Director of BUA Group, Kabiru Rabiu, assured of the commitment of the company in delivering the project within a record time. In his vote of thanks, the Permanent Secretary, Federal Ministry of Works, Yakubu Adam Kofaramata, appreciated Mr. President for the new narrative in the Federal Ministry of Works, which is made possible by the appointment of a workaholic and highly committed of Works.

Caption

The Minister of Works, Hon. Minister of Works, His Excellency Sen Engr. Nweze David Umahi, Senator Adams Oshiomhole, Sen. Monday Okpebholo and Permanent Secretary, Federal Ministry of Works, Yakubu Adam Kofaramata flanked by others during a meeting with all the contractors handling the Benin- Lokoja Federal Highway.

VFD Group mulls SplitXchange for alternative finance for creative industry

By
Simon Ugwu
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0

Caption

L-R: the Vice Chairman, Capital Market Correspondents Association of Nigeria, CAMCAN, Friday Ekeoba; the Managing Director of Splitar Limited, Folagbade Adeyemi; the Chairman CAMCAN, Chinyere Joel-Nwokeoma; and the Head Marketing & Corporate Communications of VFD Group, Muyiwa Olowoporoku during the CAMCAN Quarterly Forum hosted by VFD Group with the theme “Beyond Tradition: Increasing Relevance of Alternative Assets in Capital Market” in Lagos, Herel Play, Ikoyi on Tuesday.

 

VDF Group Plc has stressed the need for increased financing for the entertainment and media industry to boost foreign exchange earnings and economic development.

The Managing Director of Splitar Limited, Folagbade Adeyemi, stated this while speaking at the Capital Market Correspondents Association of Nigeria, CAMCAN, quarterly Forum, sponsored by VFD Group Plc.

Adeyemi noted that the group is actively pursuing an exchange platform tailored to the media and entertainment sector, offering diverse investment opportunities for both domestic and international investors.

He disclosed that SplitXchange, currently in development stage by the group, would offer a platform for financing the media and entertainment industry, among other alternative assets.

The MD noted that seeing the huge potential in the alternative assets, Splitar Holdings through the Split Exchange, would drive the alternative assets space with its revolutionary digital exchange.

With Nigeria’s estimated population at 208.8 million people, Adeyemi highlighted the increasing demand for Nigerian content.

Speaking on the theme: “Beyond Tradition: Increasing Relevance of Alternative Assets in Capital Market,” Adeyemi lamented the absence of robust funding pillars in the country.

Adeyemi noted that funding for the Nigerian entertainment sector primarily originates from outside the country.

According to him, the new market in alternative assets, include Arts and Commodities, Real Estate and Entertainment and Media, E&M.

Speaking on the potential of Entertainment and Media, specifically, he noted that globally there is an average market size of $41 billion as at 2021 with an estimated growth 4.2 per cent. However, the country earns $5 billion from the E&M, while the United States earn $750 billion from same sector; and United Kingdom, $140 billion.

The MD whilst pointing out investments by Netflix and Amazon which had churned out blockbuster movies that have gained viewership and streams across the globe noted that Nigeria’s biggest investor in the form of Pension Assets was yet to invest in the entertainment or streaming services.

He stressed the need to solve the problems of liquidity, efficiency, and barriers to entry in the country.

“In today’s market, the quick conversion of assets into cash is a challenge due to the absence of a well-structured marketplace that oversees and regulates these assets.

“The automation of processes such as compliance, escrow account management, dividend distribution, corporate action management, and drag-along actions technology presents a significant challenge in today’s alternative market.

“The high initial cost of assets in this market restricts participation to only affluent individuals and corporate investors,” he said.

Adeyemi explained that the entertainment sector as a self-starter is dependent on the banking sector as the primary provider of funding.

He noted that the sector remains excluded from the organised financial sector due to the inability of intermediaries to recognise Intellectual Property (IP) as a suitable collateral to access funding.

“Projects are financed informally through a network of angel investors, high net worth individuals, non-governmental organisations, government and personal savings,” Adeyemi said.

He further pointed out that “investors and asset creators face challenges when seeking investment opportunities or raising capital through traditional financial avenues.

“Traditional financial institutions are ill-equipped to appraise the industry opportunities due to poor visibility, data and income/revenue leakages leading to mispricing through high-interest rates, market illiquidity of associated securities, poor market depth, and lack of accessibility for retail investors,” he said.

Aside from this, he said, conventional financing methods do not offer an efficient means to invest in fractional ownership of valuable assets.

“This lack of accessibility hinders the growth of the investment market and restricts opportunities for both investors and asset creators,” he said.

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