Property Special

his is to inform players in the Real Estate sector that Valuechain Magazine will be running SPECIAL RE- TPORTS on the major players, starting from Septem- ber 2021 to February 2022. We urge the stakeholders to take advantage of this unique opportunity to reach out to your dream prospects in the Nigerian oil and gas industry on why they should patronise your company. Take advan- tage of our multiple channels of advertisement to reach out to your target audience.

For more information and participation, contact Isioma on: +234 803 303 1465 Or our Customer Care line on: +234 907 149 2222 CONTENTS 24 COVER STORY 21 Stakeholders Resolute on Star of the Industry Engr. Yusuf Usman AKK Completion ‘Against All Chief Operating Offi cer (COO), Odds’ Gas and Power, NNPC

INDUSTRY INTERVIEW COLUMN: HEALTH RENDEZVOUS 5 Nigeria’s Rig Count 33 Government should Dips by One, as OPEC’s Encourage LPG Usage 46 Coverage, Compliance Declines by Six — Auwalu Ilu of COVID-19 Vaccination Drive 6 How Energy Transition GUEST COLUMN Will Revolutionise Oil, 36 Decarbonisation: COLUMN: ROLLING Gas Sector Nigeria’s Pathway to the WHEELS 8 PIB: Oil, Gas Sector Great Transition 48 Surviving Nigerian without DPR, PEF, Roads with Reliable PPPRA COLUMN: WOMEN’S Automobiles 11 World LNG Trade CORNER Unaltered in 2020 39 POP Colour Checks AVIATION 50 Aviation Sector to Fully 13 4th Valuechain Lecture & ENTERTAINMENT Rebound in 2023 – Awards: Stakeholders List 42 Nigerian Celebrities Report Benefi ts of Maritime, Oil & Who Made Gas Sectors Synergy Controversial News SPORTS 29 PIB: Will Opposition over in H1 2021 ― As 52 Tokyo 2020 Games 3% Host Community Entertainment Industry Proves Hydrogen Fund Sway Buhari’s Mourns Sound Sultan Economy as Most Assent? Sustainable 32 NCDMB Wins PROPERTY Valuechain’s ‘Best 44 How FCDA’s Land Public Agency of the Swap Scheme Can Be Year’ Award Productive 40 JULY SHORT TAKES

3 ritical stakeholders of the committee of both chambers ongoing Ajaokuta-Kadu- was eventually passed, after Cna-Kano (AKK) gas pipe- it was submitted for consider- line project have insisted on ation by the lawmakers. ‘PIB: the successful completion, ir- Will Opposition over 3% Host respective of all odds. The Fed- Community Fund Sway Bu- eral government on June 30, hari’s Assent?’, is another in- 2020 took a fi rm stand, when teresting story of this edition. President Buhari launched On Monday, July 12, 2021, the construction of the pipe- Nigeria’s capital city, Abuja, line. “Stakeholders Resolute was agog when critical stake- maritime sectors, as well as on Completion of Gas Pipeline holders of the oil/gas and global energy experts graced ‘Against all Odds’” is our cover VALUECHAIN Magazine’s 4th story of this edition. Annual Lecture and Awards, The recently passed Petro- where they affi rmed that the leum Industry Bill (PIB) 2021, benefi ts of strengthening the which is at the verge of being synergy among players in assented to by President Mu- both sectors were vital and hammadu Buhari, is yet to re- Publisher/Editor-in-Chief Musa Bashir Usman enormous, given the various ceive a clean bill of health from emerging challenges facing members of host communi- Managing Editor Teddy Nwanunobi the two sectors. The event ties of the Niger Delta. The themed ‘Enhancing Effective Senate and the House of Rep- Associate Editor Eddy Ochigbo Synergy between Oil/Gas and resentatives had, on Thursday, Maritime Sectors for Greater July 1, passed the PIB, amidst Deputy Editor Fred Ojiegbe Value Creation’, received raving reservations raised by some reviews and commendations Contributors members, particularly about nationally and internationally. the clauses proposing three Gideon Osaka Asmau Abubakar Memories and lessons from per cent and fi ve per cent, re- Aisha Saleh the ground-breaking event is spectively of oil companies’ Graphic Consultant well captured in this edition. operating expenditure to be Theresa Ogbonna Also in this well-packaged contributed to a fund for host edition are our Regulars, Inter- communities. Business Dev. Executives Adeniyi Onifade (South) views, Photo-splash, Columns, While the Senate settled for Abdulkarim Sani (North) Property and Sports for read- three per cent, the House of Circulation Manager ing pleasure. Reps endorsed fi ve per cent, Danlami Nasir Isah a development which warrant- Online Editor ed both chambers to set up a Saidu Abubakar M.B. Usman harmonisation committee. In Photo Editor NB. Feel free to send in your views the fi nal analysis, the harmon- Bashir Bello Dollars and have your say @ ised version of the Bill, which Legal Adviser [email protected] was produced by a conference Lamir Kasim Idris (Esq.)

Head Offi ce: Abuja Liaison Offi ce: 1-2 Abu-Rayyan Street, New NDC Layout, Kaduna. SF 3, Rhema Mall, Ahmadu Bello Email: [email protected] Way, Opp. NAF Conference & Contact: 08032324370, 09071492222 Suites, Abuja.

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4 Industry 07:21 Nigeria’s Rig Count Dips by One, as OPEC’s Declines by Six –By Fred Ojiegbe

here are indications that Nige- Canada had an impressive leap tional oil, while estimates for OPEC ria’s oil production suffered a in its rig count with a record of 45, crude production are based on sec- Tdecline as its rig count dipped as it posted 104 in June, as against ondary sources. by one, having posted five in June, 59 posted in May. Mexico had plus Non-OPEC liquids production in as against six posted in May. five, as it recorded 45 in June, as 2022 is expected to grow by 2.1 This was coming at a time the against 40 recorded the previous mbpd to average 65.85 mbpd, in- Organisation of Petroleum Export- month. The Organisation for Eco- cluding a recovery of 0.11 mbpd in ing Countries (OPEC)’s rig count nomic Cooperation and Develop- processing gains. The supply fore- declined by six, as it posted 354 in ment (OECD) Americas also posted cast, including expected growth of June as against 360 posted in May, an impressive leap in its rig count OPEC NGLs, should be at 2.2 mbpd. latest data from OPEC showed. with a record of 60, as it had 614 Liquids supply in the OECD coun- World rig count, however, wit- in June, as against 554 posted the tries is expected to increase next nessed a surge by 63, as it recorded previous month. year by 1.1 mbpd, and growth of 1,433 in June, as against 1,370 re- Norway also made the gainers’ 0.8 mbpd in the non-OECD region is corded in May. group with its plus two, having anticipated. Among the 13 OPEC members, posted 20 in June, as against 18 The main drivers for liquids sup- three countries recorded plus in posted the previous month. ply growth are expected to be the their rig count. OECD Europe also made the US (0.74 mbpd), Russia, Brazil, Nor- They were led by Iraq which had group of gainers with its plus four, way, Canada, Guyana and Kazakh- plus three, having recorded 38 in having recorded 62 in June, as stan, whereby the majority of the June, as against 35 recorded the against 58 recorded in May. increase in the US and some other previous month. countries represents a production It was followed by the United World oil supply recovery from the 2020 oil market Arab Emirates (UAE), which had a OPEC data indicated that glob- downturn due to curtailments, rath- rig count of 45 in June, as against al liquids production in June in- er than growth from new projects. 43 recorded the previous month. creased by 1.10 million barrels per Nevertheless, uncertainty re- Gabon completed the gainers’ day (mbpd) to average 94.49 mbpd, garding the financial and opera- group, with its plus one, as it re- compared with the previous month. tional aspects of US production corded two in June, as against one Non-OPEC liquids production, remains high. recorded the previous month. including OPEC natural gas liquids OPEC NGLs and non-conven- Four OPEC members were in (NGLs) increased in June by 0.52 tional liquids production in 2021 is the losers’ loop. Saudi Arabia, led mbpd compared with the previous estimated to grow by 0.12 mbpd to the group, with its minus seven, as month to average 68.46 mbpd, high- average 5.17 mbpd. it had a rig count of 59 in June, as er by 2.76 mbpd year-on-year (y-o-y). For 2022, it is likely to grow by against 66 recorded the previous Preliminary increases in produc- 0.13 mbpd to average 5.29 mbpd. month. tion over June were mainly driven OPEC-13 crude oil production This was followed by Algeria by the OECD, which saw 0.46 mbpd in June increased by 0.59 mbpd which had minus three, having re- month-on-month (m-o-m) more m-o-m to average 26.03 mbpd, ac- corded 25 in June, as against 28 production compared with an in- cording to secondary sources. recorded the previous month. crease of only 0.08 mbpd in non- Preliminary non-OPEC liquids Kuwait had minus one, as it had OECD countries, including partici- production in June, including OPEC 22 in June, as against 23 posted in pants in the DoC, as production had NGLs, is estimated to have in- May. Six OPEC members had their already been adjusted in May. creased by 0.52 mbpd m-o-m to av- rig count unchanged within the pe- The share of OPEC crude oil in erage 68.46 mbpd, up by 2.76 mbpd riod under review. Angola, Congo, total global production decreased y-o-y. Equatorial Guinea, Iran, Libya and by 0.3 pp to 27.6 per cent in June As a result, preliminary data Venezuela recorded 4, 0, 0, 117, 12 compared with the previous month. indicates that global oil supply in- and 25, respectively. The United Estimates are based on prelimi- creased by 1.10 mbpd m-o-m to States of America recorded plus nary data from direct communica- average 94.49 mbpd, down by 6.53 10, as it had 464 in June, as against tion for non-OPEC supply, OPEC non mbpd y-o-y. 454 recorded in May. gas liquids (NGLs) and non-conven-

5 Industry 07:21 How Energy Transition Will Revolutionise Oil, Gas Sector

–By Gideon Osaka

he quest to gradually move led to a signifi cant slowdown in from consumption of fos- merger and acquisition deals in Tsil fuel to cleaner energy the sub-region last year. is now topping discussions at “Deal spend was only $ 1.1 bil- different global oil and gas fora, lion, compared with $ 5.7 billion and Nigeria is not left behind in in 2019, and $1.7 billion in 2018,” the discussion. it said. Thus, a new report has sug- It added that pre-production gested that there will be huge assets accounted for 80 per cent gains and that a gradual transi- of volumes traded. tion to a much cleaner energy “Portfolio resilience is key: the will revolutionise the country’s majors’ combined value falls 145 oil and gas sector, as the sector per cent under a $30 per barrel is gradually experiencing a huge long-term oil price – Leaner port- divestment of assets by the in- folios needed to withstand future ternational oil companies (IOCs) downturns,” the report said. that are operating in the country. On de-carbonisation, it said Earlier this year, three IOCs that by 2030, average SSA emis- Anibor Kragha concluded the sale of their com- sions intensity would be 38 ver- bined 45 per cent interest in Oil sus a global average of 28. According to the report, pri- Mining Lease (OML) 17 and re- “Investment will focus on key vate equity-backed exploration lated assets in the Eastern Niger strategic or advantaged assets, and production companies, Af- Delta to TNOG Oil and Gas Limit- leaving mature or non-core as- rican-focused E&Ps, as well as ed, an indigenous integrated en- sets prime candidates for divest- Asian and African national oil ergy fi rm. ment. But there are multiple bar- companies are likely acquirers. “The energy transition will push riers to M&A in the region. As oil “The energy transition: ambi- more assets onto the market, prices recover in the short term, tious emissions reduction tar- but sellers may be stuck with un- bid-ask spreads may widen as gets will drive divestments. Shell wanted assets,” Africa Oil Week sellers try to extract maximum has the highest SSA average and Wood Mackenzie said in the value,” it said. emissions of the majors due to report titled ‘Sub-Saharan Africa It said above-ground risks, oil its legacy assets in Nigeria. M&A: What could be sold?’ price risks and access to fi nance “Carbon emission is increas- The report noted that COVID-19 on reasonable terms would con- ingly key when screening as- pandemic and the oil price crash tinue to shrink the pool of buyers. sets for divestment. Low-value,

Second, I think reforms in the energy sector are going to be paramount. The cost of doing business is very high on account of the inefficiencies in the energy sec- tor, power supply interruptions, and the famous recourse to the use of highly inefficient and harmful generators up and down the country.”

6 Industry 07:21 high-emissions assets will be pri- oritised for sale.”

IMF, ARDA make case for clean energy To lend their voices to the glob- al advocacy, the International Monetary Fund (IMF) and the Afri- can Refiners and Distributors As- sociation (ARDA) said it was high time the country started thinking towards energy transition. First, the IMF affirmed that it is time for Nigeria to solve its pow- er problem which has made the cost of doing business very high. “In the case of Nigeria, ensur- many cases. This is very different ing trucks in Senegal, as well as ing that the country enjoys or un- from saying that the fundamental KPC’s strategy for expanding its leashes its tremendous potential drivers of growth, over the medi- assets and operations across requires reforms in three areas, um to long term, have been im- the Great Lakes area of Burundi, in our view. I think first and fore- proved in a dramatic way, allowing DRC, Kenya, Rwanda, South Su- most is that more fiscal space stronger growth. So, that’s a point dan and Uganda among other needs to be created through do- I would stress,” he said. relevant topics. mestic revenue mobilisation to In the same vein, inadequate The Executive Secretary, pay for investments in health, storage and distribution infra- ARDA, Anibor Kragha, said that in education, in infrastructure, structure are said to be limiting African leaders must develop a which Nigeria swiftly needs. the efforts of Nigeria and oth- coordinated energy transition “Second, I think reforms in the er African nations to transition roadmap that would result in in- energy sector are going to be to cleaner energy sources, the vestments in critical infrastruc- paramount. The cost of doing ARDA has said. ture such as terminals, pipelines, business is very high on account ARDA and other industry play- rail and ports. of the inefficiencies in the ener- ers said these limitations could He noted that these facilities gy sector, power supply interrup- hinder attempts by nations on were needed to deliver petroleum tions, and the famous recourse the continent to meet the Unit- products across Africa over the to the use of highly inefficient ed Nations Sustainable Devel- next two decades. and harmful generators up and opment Goals (SDGs) that are “It is imperative that key de- down the country. geared at mitigating deforesta- cision-makers across the con- “Again, getting power supply, tion in Africa. tinent develop a robust energy getting policies to make sure that The experts and operators dis- transition roadmap that fully in- Nigeria resolves this problem closed this during an online work- corporates storage and distribu- once and for all, I think, is also shop organised by ARDA, which tion requirements needed to sup- paramount. And thirdly, mac- aimed at delivering strategies for port Africa’s projected increased roeconomic policy calibration, coordinating storage and distri- demand for petroleum products,” things like creating deep and bution investments to support Kragha said. liquid foreign exchange markets the increase in the continent’s fu- He said that the African Union will be important,” the Director, ture petroleum products demand. Commission and ARDA recently African Department, IMF, Abebe Industry players in the African assessed investments needed to Selassie, said. downstream sector, including upgrade African refineries to pro- Selassie said the IMF was see- Kenya Pipeline Company, Rain- duce cleaner fuels. ing quite a lot of countries going oil Limited (Nigeria), SENSTOCK He noted that a similar study through a recovery in 2021, after (Senegal) and SONABHY (Burki- should be conducted to deter- the negative impacts of the 2020 na Faso), discussed oil and LPG mine the corresponding storage lockdown introduced to curtail terminal investments in Burkina and distribution investments COVID-19 spread. Faso and Nigeria. needed to transport the cleaner “And so, that will give strong They spoke on the digitalisa- fuels efficiently and safely across growth outcomes this year in tion of storage tanks and load- Africa.

7 Industry 07:21 PIB: Oil, Gas Sector without DPR, PEF, PPPRA

–By Teddy Nwanunobi

Yar’Adua had constituted a committee on the implemen- tation of the OGRC report. A subcommittee chaired by Yinka Omorogbe drafted the Bill, but that particular bill was marred by controversy. It was, again, reintroduced in 2012 by former President Good- luck Jonathan’s administration and passed by the House, just a few days to the end of that administration, but the Senate failed to pass the bill. In the 8th National Assem- bly, the lawmakers decided to introduce the PIB in parts. The President Muhammadu Buhari Bill was broken down into the Petroleum Industry Governance or two decades, the Nige- Nigerian National Petroleum Bill (PIGB), Petroleum Industry rian oil and gas industry Corporation (NNPC) into a com- Fiscal Bill, Host Communities Fhas dreamed night and mercially viable enterprise. Entitlement and Protection Bill, day to have a legislation that For decades, almost all the and the Petroleum Industry Ad- will reform the way the industry petroleum-related laws, includ- ministration Bill. operates so as to boost the sec- ing the Petroleum Act of 1969, Several lawmakers introduced tor and make it attractive for in- had been belated. In other different versions of the bills, but vestment. Over the last 20 years, words, they are no more relevant the PIGB, which was sponsored a bill had struggled to make it and competitive globally. With by Tayo Alasoadura and Pally through the National Assembly. the advancement in technology, Iriase, was the version passed But it was either one issue or the the volatility of oil prices, and cli- by both chambers and harmon- other that would kick it back to matic changes influencing the ised. The Bill was transmitted to the National Assembly. global economy, it has become President Muhammadu Buhari, The Petroleum Industry Bill imperative to review extant laws but he failed to assent to it. (PIB) 2020 is a law in the mak- to bring them in alignment with Although the two chambers ing, which seeks to introduce current realities. reconsidered, and passed the far-reaching improvements in The present Bill could be Bill again, it was still not assent- the Nigerian oil and gas indus- traced to the Oil and Gas Re- ed to by Buhari, until that House try. The Bill aims at establishing forms Committee (OGRC) that adjourned sine die. good governance, best practic- was constituted by former Pres- Unlike in the 8th Assembly, es, and ease of doing business ident Olusegun Obasanjo’s ad- the current bill is an Executive in the industry, by clarifying ministration. The report of the Bill. The Bill was sent to the Na- roles and responsibilities of of- committee formed parts of the tional Assembly in September ficials and institutions, enabling Bill that was, first, introduced to 2020. frontier exploration, mandating the National Assembly by former So, when, on Thursday, July improved environmental com- President Umar Musa Yar’Adua’s 1, 2021, the two chambers of pliance, and transforming the administration in 2008. the National Assembly (Senate

8 Industry 07:21

The PEF is one agency that has a direct impact on the day- to-day life of the ordinary person. Today, the fact that petrol is being sold at a uniform price all over Nigeria is due to the ‘equalisation’ activities of the PEF. The system of price uni- formity, put in place since the inception of this agency in 1975, has been hugely modernised, and it is working per- fectly. Incidences of losses and phoney claims by marketers have been largely plugged through immense investments in Information Technology and Truck Tracking (ITTT). and House of Representatives) three agencies be merged under refers to as ‘the Authority’, and it passed the long-awaited Bill, it an entity to be known as ‘The Au- is to take over the oversights of was a welcome development to thority’. This new organ is to be the midstream and the aspects a good number of the oil and gas saddled with tackling the oner- of DPR’s powers in the down- industry’s stakeholders. But, of ous responsibilities of the three stream. course, like the issues that trailed agencies and it is expected to Some proponents of this re- the former Bills, there were yet run efficiently and effectively. form have already provided concerns about this particular The DPR has been chiefly in some defense for it. According one that has been passed by the charge of the compliance of to them, it is to ease the process- National Assembly. oil and gas companies to pe- es of regulating the industry. One of such concerns is the troleum laws, regulations and However, what is not being proposal to create two regula- guidelines set aside by the Fed- considered here is how the tory agencies instead of a one- eral Government. It has also two-regulator solution may like- stop-shop regulator to oversee been responsible for monitoring ly create unnecessary bureau- Nigeria’s oil and gas sector. Ex- operations at drilling sites, pro- cratic bottlenecks for the oil and pectedly, the Bill has also stirred duction platforms and flow sta- gas companies, especially those up controversies across the tions, crude oil export terminals, that are operating in all the seg- country, with the representatives refineries, storage depots, pump ments of the industry. The fore- of the host communities and the stations, retail outlets, among seen challenges would be much southern governors voicing their others. Another of its function is worse than that. opposition to various clauses overseeing the safety and other Aside from the perceived over- in the Bill. The many dissents, regulations that relate to expor- lapping roles of the proposed so far, generated by the Bill has tation and importation. regulators, the cost of regulat- called into question the aim and The activities of the DPR, for ing the industry may skyrocket, objective of the Bill. instance, cut across the up- and it is going to tell heavily on What the PIB sets out to do, in stream, midstream and down- any objective cost-benefit anal- regulating the oil and gas indus- stream segments. But the new ysis that maybe be adopted by try, is terminating a regime of a Bill sets out to redistribute the the Federal Government. Having single-regulator model. The idea regulatory roles to two entities two regulators is not only going of merging some Federal Gov- to be created to succeed DPR. to be an expensive system for a ernment agencies, such as the These are the Nigerian Upstream nation that is perpetually search- Petroleum Equalisation Fund Regulatory Commission (NURC) ing for ways to cut down the (Management) Board (PEF(M) and the Nigerian Midstream and cost of governance, but it may B), Department of Petroleum Downstream Petroleum Regula- likely be characterised by lack of Resources (DPR), and the Petro- tory Agency (NMDPRA). coordination, cooperation, and leum Products Pricing and Reg- The NURC simply refers to the consequent lack of harmon- ulatory Agency (PPPRA) in the as ‘the Commission’, and it is to ised data, as we have witnessed PIB, if one critically looks at it, is take over the oversight of the up- in other Nigerian agencies with very worrisome. stream segment of the industry. duplicate functions. The Bill had proposed that the The NMDPRA, however, simply The reason for the above is

9 Industry 07:21

not farfetched. According to has a direct impact on the day- of the nation. Nigerians are very the Bill, the old employees of to-day life of the ordinary per- familiar with the problems the DPR, and other sister agencies, son. Today, the fact that petrol is nation had been experiencing including those of the PEF(M) being sold at a uniform price all over the years with government B and PPPRA are going to be over Nigeria is due to the ‘equal- bureaucracy. Needless to say, reassigned to the two new reg- isation’ activities of the PEF. The everything that will threaten the ulators. system of price uniformity, put in prevailing tranquility of petrol Reassigning the old employ- place since the inception of this supply all over the nation, should ees would not be the real dan- agency in 1975, has been huge- be nipped in the bud from the be- ger here. The real danger is that ly modernised, and it is working ginning. the former employees of the old perfectly. Incidences of losses At the moment, Nigerians regulatory agency are not going and phoney claims by market- are very much aware of the gal- to be any more encouraged to ers have been largely plugged loping prices of food items all work. through immense investments over the country. Families are At this point, it is important to in Information Technology and scrambling on how to work out point out that most of the agen- Truck Tracking (ITTT). their food budgets to last the cies that are still functioning in The PPPRA is a body that long haul for them. Many cannot the oil and gas industry were determines the prices of petrol even afford to feed themselves once departments at the DPR. products within the polity. It is anymore. The situation in the They could have been left so, the vision of running a smooth country is that dire. and allowed to evolve, grow, and and resilient downstream In his remarks, the Senate function under the institutional sub-sector of the petroleum in- President, Senator Ahmad La- framework of the DPR. dustry, with the ultimate goal of wan, had stated that, with the But most of the agencies have engendering self-financing and Bill passage, “…PIB demons have become loudly redundant, after sustenance, should not be mud- been defeated…” being expunged from the DPR. dled by a merger. The “demons” may, however, Perhaps this is the same mis- All said and done, merging the have been weakened, but they take Nigeria is about to make three agencies of the Federal are certainly, not down and out. again – a cogent lack of com- Government under ‘The Com- Whatever Nigeria sets out to mitment to investing in building mission’ and ‘The Authority’ is achieve through a two-model strong institutions. bound to worsen the already regulator can be done through a The PEF is one agency that straining socio-economic fabric single regulator.

10 Industry 07:21

World LNG Trade Unaltered in 2020

–By Fred Ojiegbe

orld trade in LNG in from only two countries - the compared with 2019. 2020 has remained es- United States by 1.5 billion ft3pd Exports from all other coun- Wsentially unaltered from and Australia by 0.3 billion ftpd, tries have either remained flat or 2019, averaging 46.9 billion feet compared with 2019. declined, amounting to a com- per day (bftpd) compared with Last year, the US commis- bined 1.6 billion ftpd decrease 46.7 billion ft/d in 2019, accord- sioned several new liquefaction compared with 2019. ing to the recently released The units (called trains), namely the The report also stated that LNG Industry: GIIGNL Annual third and final trains at Cameron among all LNG-importing re- Report 2021 by the International LNG, Freeport LNG, and Corpus gions, only Asia had an increase Group of Liquefied Natural Gas Christi LNG export facilities, as in annual LNG imports, by 1.1 Importers (GIIGNL). well as the remaining trains at billion ftpd (3 per cent), in 2020 This 0.4 per cent annual in- the Elba Island LNG export facil- compared with 2019. crease in LNG trade occurred ity. China and India drove the despite the COVID-19 pandemic With the spread of the overall annual increase, as Chi- that reduced global natural gas COVID-19 pandemic and lock- na’s LNG imports increased by demand. downs in many LNG-consuming 1.0 billion ftpd and India by 0.4 The report noted that be- countries, US LNG exports sig- billion ftpd in 2020. tween 2015 and 2019, global nificantly declined in June and In China, continuous growth LNG trade expanded by 45 per July of 2020, but they have grad- in LNG imports mainly result- cent, posting record growth in ually increased in the months ed from government-supported both 2018 and 2019. that followed and set consecu- coal-to-natural gas switching This expansion primarily re- tive all-time highs in November policies to reduce air pollution. sulted from liquefaction capac- and December 2020. In India, all-time low spot LNG ity additions in Australia, the US, In 2020, Australia became the prices in the spring and summer and Russia, which combined, world’s largest LNG exporter, for of 2020 led to more fuel switch- accounted for more than 90 per the first time, overtaking Qatar, ing and an increase in LNG im- cent of the global growth in liq- with exports averaging 10.2 bil- ports procured on a spot basis. uefaction capacity during this lion ftpd, an increase of 0.3 bil- LNG imports to Japan con- period. lion ftpd (3 per cent) compared tinued to decline in 2020, aver- According to the Energy In- with 2019. aging 9.8 billion ftpd, which was formation Administration (EIA) Exports from Qatar declined 0.3 billion ftpd less than in 2019. in 2020, LNG exports increased by 0.1 billion ftpd (1 per cent) Europe’s LNG imports de-

11 Industry 07:21

This remarkable growth comes despite a sharp 29 per cent month-on-month, m-o-m drop in February 2021 during the Texas electricity crisis, and is largely the result of a 50 per cent increase in US liquefaction capacity since the be- ginning of 2020. Africa’s LNG exports rose by 9 per cent y-o-y, driven by a sharp rebound in LNG exports from Egypt, which was further boosted by the reopening of the Damietta plant in February 2021. clined by 5 per cent, averaging and Bangladesh experienced a ing by more than a third y-o-y in 10.7 billion ftpd in 2020, but re- sharp increase in LNG arrivals the first six months of 2021. mained significantly higher than thanks to rising gas demand in This remarkable growth the 6.1 billion ftpd in 2017 and the power sector. comes despite a sharp 29 per 6.4 billion ftpd in 2018, the EIA Meanwhile, India’s LNG im- cent month-on-month, m-o-m states. ports dropped by 3 per cent drop in February 2021 during Incidentally, LNG contributions y-o-y, as record-high spot prices the Texas electricity crisis, and from African countries were not in January and a devastating is largely the result of a 50 per mentioned in the report. second wave of COVID-19 in cent increase in US liquefaction April and May dampened LNG capacity since the beginning of ... to Increase by 4% in demand. 2020. Africa’s LNG exports rose Central and South America by 9 per cent y-o-y, driven by a 2021 registered strong gains, boost- sharp rebound in LNG exports Global liquefied natural gas ing LNG imports by more than from Egypt, which was further (LNG) expanded by nearly 5 per 75 per cent y-o-y in the first six boosted by the reopening of the cent year-on-year (y-o-y) in the months of 2021. Damietta plant in February 2021. first half of 2021. Brazil accounted for the bulk LNG output in the Middle East The Asia Pacific region re- of the growth, where LNG-fired rose by 2 per cent y-o-y as Qa- mained the primary engine of power plants were dispatched tar produced in excess of name- import growth, registering 12 to compensate for low hydro plate capacity in the first half of per cent y-o-y expansion in the generation amid an unusually 2021. January to June 2021 period. dry southern hemisphere winter. LNG exports from Eurasia (i.e. China saw the largest abso- European LNG imports Russia) were up by 5 per cent lute expansion, with LNG in- dropped by nearly 20 per cent y-o-y. flows increasing by 28 per cent y-o-y in the first half of 2021 as Exports from the Asia Pacif- y-o-y in the first six months. Atlantic Basin cargoes were re- ic region remained flat, while This was fuelled by cold win- directed to Asia. output in Europe and Central ter weather, a strong economic The reduction in LNG intake and South America saw steep recovery, subdued pipeline gas was offset by increased storage declines due to the ongoing imports from Central Asia and a withdrawals and pipeline gas outage at the Hammerfest LNG hot start to the summer in south imports into Europe. terminal in Norway and reduced China in May. The Middle East recorded a feed gas availability at the Atlan- Japan and Korea sustained minor y-o-y increase, while North tic LNG plant in Trinidad and To- healthy LNG import growth, driv- American imports dropped by bago, respectively. en by a cold blast in January, the almost 50 per cent y-o-y as US In 2021, global LNG trade is subsequent replenishment of pipeline gas continued to dis- expected to increase by 4 per LNG stocks and growth in gas- place LNG in Mexico. cent, with import growth driven fired generation. North America has dominat- entirely by the Asia Pacific re- The majority of emerging ed LNG export growth so far this gion and export growth fuelled Asian importers led by Pakistan year, with US LNG output expand- mainly by North America.

12 Event 07:21 4th Valuechain Lecture & Awards: Stakeholders List Benefits of Maritime, Oil & Gas Sectors Synergy

The Minister of State for Petroleum Resources, Chief Timipre Sylva displaying his award (Champion of PIB), flanked on his immediate left by the Publisher and Editor-in-Chief, Valuechain oil and gas magazine, Musa Bashir Usman, and on his immediate right by the Chief Operating Officer (COO), Gas and Power, Nigerian National Petroleum Corporation (NNPC), Engr. Yusuf Usman, along with other personalities.

–By Gideon Osaka takeholders of the oil & gas holders in the larger Nigerian econ- fying the Nigerian economy by en- and the maritime sectors omy. The Special Guest of Honour hancing functional linkages, and Srecently gathered at the be- for the event, His Excellency, the entrenching synergy amongst the hest of Valuechain Magazine for Vice President, Federal Republic of critical sectors of the economy. The the 4th Annual Lecture & Awards Nigeria, Prof. Yemi Osinbajo (SAN, basis for this synergistic relation- where they affirmed that the - ben GCON), was represented by the ship, according to the players, has efits of strengthening the synergy Minister of State, Petroleum Re- been laid down in policy documents among players in the sectors are sources, Chief Timipre Sylva. and plans, including the Economic enormous and important, given the The Secretary General of the Or- Recovery and Growth Plans (ERGP) various emerging challenges facing ganisation of Petroleum Exporting and Nigeria Economic Sustainabil- the sectors. The event, which had Countries (OPEC), Dr. Mohammad ity Plan (NESP), in addition to the as its theme ‘Enhancing Effective Barkindo; Group Managing Direc- resolution of the Federal Executive Synergy Between Oil & Gas and tor (GMD), Nigerian National Pe- Council (FEC) on the Oil and Gas Maritime Sectors for a Greater Val- troleum Corporation (NNPC), Mele Policy amongst others. ue Creation’, was held on Monday, Kolo Kyari (represented); and the The Annual Lecture & Awards July 12, 2021 in Abuja, and organ- Director General, Nigerian Maritime is a demonstration of the growing ised by Valuechain Magazine – a Administration & Safety Agency impact and the vital contributions news publication that has gained (NIMASA), Dr. Bashir Y. Jamoh, of the Magazine to foster effective prominence as a source of reliable were among top industry leaders synergy for value creation. industry news and incisive analysis that graced the occasion. The audience, made up of sea- of contemporary energy issues in The landmark event, according soned professionals in the oil & gas the oil and gas space, and beyond. to participants, came at a most industry and maritime sector, were The lecture and awards brought auspicious time when the gov- of the unanimous disposition that together eminent practitioners in ernment, under the leadership of the Nigerian oil and gas sector is a the oil and gas industry, the mari- President Muhammadu Buhari, value creator for the national econ- time sector, as well as other stake- has shown commitment to forti- omy, just like the maritime sector as

13 Event 07:21

vessels from Nigeria to destinations across the globe annually! “To put this into context, in 2019, the year before the global COVID-19 pandemic, according to the Nigeri- an Bureau of Statistics (NBS), the value of total foreign trade recorded for Nigeria stood at N36.1 trillion. This was a 14 per cent increase over 2018, and the maritime indus- try was responsible for the trans- portation and facilitation of 90 per cent of these trades. Meanwhile, of these trades, Petroleum and Petro- leum Products account for about 76 per cent of the export,” he said. much of what is used every day ei- industry generates $5 billion freight Despite these huge contributions ther has been or will be transported cost annually and has potential to in- of both industries to national and by sea, in the form of raw materials, crease to $8 billion,” he said. global economies, there are con- components or finished articles. In his welcome address, the Pub- straints, and the need for optimisation Vice President Yemi Osinbajo, in lisher and Editor-In-Chief, Valuec- is more imperative now than ever. his keynote address, urged all the hain oil and gas magazine, Musa Fuel prices and availability are major stakeholders present at the event Bashir Usman, noted that the mar- cost-drivers in the maritime transpor- to come up with a common ground itime sector had always been of tation, accounting for as much as 60 that will lead to growth in the oil and strategic importance to the oil and per cent of a ship’s operating costs. gas and maritime industry. gas industry since Nigeria began Thus, steady rise in oil prices, just as For his part, Kyari, who noted exporting crude oil. what is being experienced now, will, that the oil and gas sector was “Therefore, the benefits of invariably, result in increased freight bleeding from all types of vices, strengthening the synergy among cost for petroleum and other cargoes, stated that it was only through col- operators in the maritime and oil and have the potential to significantly laboration with the maritime sector and gas sectors are enormous, and undermine the trade. that those vices can be effectively this is important, given the emer- In recognition of the above glob- tackled. According to Kyari, who gence of COVID-19, which has hit al phenomenon, Auwalu said the was represented by the Chief Oper- the global economy hard, with many DPR, as part of its contributions to ating Officer, NNPC, Engr. Yusuf Us- aspects of the pandemic affecting overcoming some of these chal- man, there was a need to latch onto all the sectors put together. Oth- lenges for the sectors, is driving inter-industry synergy, and take ad- er emerging challenges facing the availability and, to some extent, the vantage of it. maritime and oil and gas industries affordability of fuels, through the “We have a great country, but underscore the need for greater government’s refinery revolution what is missing is synergy. We multisectoral collaboration,” he said. and private sector-led initiative. should look inward and strengthen While delivering the lead paper, In addition to the ongoing Dan- the synergy between both sectors,” the Director of the Department of gote integrated refinery complex, a he added. Petroleum Resources (DPR), Engr. number of modular refineries have Kyari also noted that while freight Sarki Auwalu, noted that the two been commissioned, or are still un- for oil shipment stands at about $5 sectors’ activities are central to the der development to shore up prod- billion, increased activities in the national and global economy, and uct availability in-country, including oil and gas sector, especially in the their strengths can be pulled togeth- marine fuels. The increased capac- terms of oil production could push er for even more opportunities. ity of 750,000 refining capacity in the revenue to $8 billion. “For hundreds of years, the mari- the short-to medium term is a signif- “There is the need to look in- time and the oil and gas (industries icant step to guarantee affordable wards and build capacity locally and have) enjoyed Siamese-twin type re- fuels to ships/marine vessels that strengthen the synergy between lationship creating and sharing value come to the Gulf of Guinea for trade. maritime as well as oil and gas sec- together. As an example, the mari- Significantly, the DPR, he added, tor,” Kyari, who said the maritime time industry is responsible for haul- has enhanced the Marine Petroleum sector has the potential to contrib- ing oil and gas all around the world Products Retail Operations (MAP- ute 10 per cent to the nation’s GDP while oil and gas has fueled the mar- PRO), popularly known as ‘bunker- (gross domestic product). itime industry. Imagine about 700 ing’. This measure is to ensure that “With oil production carried out million barrels of crude cargoes and Nigeria becomes the principal MAP- offshore, and over 70 per cent total 22 million tons of LNG are transport- PRO hub in the region. production transported by ships, this ed by over a thousand ocean going With respect to security and sur-

14 Event 07:21

We have a great country, but what is missing is syn- ergy. We should look inward and strengthen the synergy between both sectors,” - Kyari

veillance, the oil and gas and mar- Speaking on maritime security, upheavals in the oil market, added itime industries have a lot in com- the Director General of the Nigeria that the theme of the lecture and mon to share. Of the 31 crude oil Maritime Administration and Safe- award, ‘Enhancing Effective Syner- and gas terminals, 26 are offshore ty (NIMASA), Dr. Bashir Jamoh, re- gy between Oil & Gas and Maritime in the form of Floating Production vealed how useful the assets under Sectors for Greater Value Creation’, Storage and Offloading (FPSO) and the Deep Blue Project had been to also underscored the importance of Floating Storage and Offloading the agency. working together, building bridges (FSO) vessels. Accordingly, off- “From the directive of Mr. Pres- between various sectors, and im- shore production and exports and ident, we had to deploy those as- plementing reforms to bring about the associated maritime opera- sets. Immediately we deployed positive changes and create value. tions, remains at the centre of the those assets, you could see down The OPEC scribe, in his goodwill Nigeria oil and gas industry. thread, all data – you can see Jan- message, said the 4th Valuechain To this end, the oil and gas indus- uary 21, we had only one attack – Annual Lecture & Awards was an try has a lot to offer the maritime dropped from 10 in December 21. extremely timely event, not only due industry in terms of design and February 0. March 1. April 1. May 2,” to the positive changes evolving maintenance of offshore installa- he said while pointing at a chart in in Nigeria’s oil and gas sector, but tions/facilities, as well as safety his presentation. also, given that the day – July 12, and emergency response, together Jamoh also spoke of the impor- 2021 – was the 50th Anniversary with innovations in digitisation and tance of synergy between agencies. of Nigeria joining OPEC. According remote surveillance/monitoring ca- “Well, this event is the kind of event to him, the day was a seminal mo- pabilities. that, from time to time, the industry ment for the country and for OPEC. The DPR boss said the recent- needs to have, in the sense that, from “It has at times been a rollercoast- ly commissioned Nigeria Oil and time to time, you know, the responsi- er journey, with various market cy- Gas Excellence Centre (NOGEC) bilities of the different sectors (are) cles being navigated through, and by President Muhammadu Buhari inter-webbed. And by so doing, with unexpected events, such as mac- provides Search Rescue and Sur- that collaboration, or coordination, or roeconomic uncertainty, natural veillance Coordination Centre for cooperation, and effective communi- catastrophes, geopolitics, techno- Oil and Gas Industry which the mar- cation, we will all be able to achieve logical innovations, and especially itime industry can leverage. what we want to achieve. For so in 2020/21, global health pandem- The maritime sector can also many decades now, we have been ics, threatening to throw the world leverage on data which DPR shares having issues between the different of oil and OPEC off course. Through with relevant agencies of govern- sectors in terms of maximising our cooperation, commitment and hard ment to ensure maritime safety own gains into the economy. work we have overcome these un- and economic wellbeing. Hence, “So, the sectors must come to- paralleled upheavals, and many gi- whether in small or big ways, the gether, and look at where they con- ants of Nigerian public service have DPR, according to Auwalu, contin- nect. By so doing, they would be played a vital role in this,” he said. ues to create a difference in forging able to see how we can coordinate He said the Petroleum Industry effective synergy between the oil ourselves, and make sure that we Bill (PIB), a long-awaited legislation and gas and the maritime sectors. maximise the gains that each sec- for the oil and gas sector, that was Not only do the maritime and tor is supposed to get. By so doing, just passed by both chambers of oil and gas industries share col- I think we should do a lot for the the Parliament, was a further exam- laborations, they also face similar economy. Now, basically, there are a ple of the need to advance working risks and threats in the foreseeable lot we can discuss in terms of busi- relationships – both at home and future, including geopolitical ten- ness as it relates to oil and gas. So, internationally, strengthen institu- sion, cyber-attacks, crude oil price, today’s discuss is concentrated only tions, initiate new regulatory and decarbonisation, climate-change on the issue of maritime security. fiscal frameworks and help attract adaptation, global economic crisis, So, what and what do we have to put much needed investment, that will piracy/theft. However, with effec- in place?” he stated. lead to greater value creation for tive synergy and collaboration, both OPEC Secretary General, Mo- the country and its citizens. industries can surmount these hammad Sanusi Barkindo, who re- According to him, the govern- challenges and turn them to oppor- echoed how cooperation, commit- ment of President Buhari has made tunities for common good and the ment and hard work have helped to history by breaking the jinx to the ap- health of the national economy. overcome some of the unparalleled plause of the world of energy.

15 Photosplash 07:21

MEMORIES FROMValuechain’s 4th Annual Lecture And Awards

The Chief Operating Officer (COO), Gas and Power, NNPC, Engr. Yusuf A cross-section of guests listening to a goodwill message being delivered Usman, delivering a goodwill message by Secretary-General of the Organisation of the Petroleum Exporting on behalf of the Group Managing Countries (OPEC), Dr. Mohammad Barkindo Director of NNPC, Mallam Mele Kyari

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh (immediate left), Director of the Department of Petroleum Resources (DPR), Engr. Sarki Auwalu (2nd left), Chief Operating Officer (COO), Gas and Power, NNPC, Engr. Yusuf Usman (2nd A cross-section of guests right), and the moderator at the event, Mrs. Omotayo Omotosho (far right)

The Director of the Department of Pe- The DG of NIMASA, Dr. Bashir Jamoh, The Publisher and Editor-In-Chief, Valuechain troleum Resources (DPR), Engr. Sarki the guest speaker, making his oil and gas magazine, Musa Bashir Usman, delivering his welcome address Auwalu, delivering the Lead Paper presentation

16 Photosplash 07:21

The Deputy Coordinator, Valuechain Sickle Cell Foundation (VSCF), Miss Hauwa The award plaques on display Mohd, delivering a sickle cell talk

The Director of the Department of Petroleum Resources (DPR), Engr. Sarki Auwalu, displaying his award (Best CEO of the Year 2020) plaque. Standing with him are Mrs Omotayo Omotosho (L) and Hon. & Mrs. Umar Gital

Some guests pose with the Publisher and Editor-In-Chief, Valuechain oil and gas magazine, Mallam Musa Bashir Usman (7th from left), and the Minister of State for Petroleum Resources, Chief Timipre Sylva (11th from the right)

17 Photosplash 07:21

(L-R): The COO, Gas and Power, NNPC, Engr. Yusuf Usman (left), displaying the GMD’s award (Champion of PIB), the (L-R): The Managing Director, Gas and Power Investment Minister of State for Petroleum Resources, Chief Timipre Sylva Company (GPIC), Dr. Salihu Jamari, displaying an award, while (middle), and the Publisher and Editor-In-Chief, Valuechain oil Chief Timipre Sylva (middle), and Mallam Musa Bashir Usman and gas magazine, Mallam Musa Bashir Usman (right) (right), watch on

(L-R): The GM (Corporate Services), Petroleum Equalisation (L-R): The Manager Media, Group Affairs Division (GPAD) Fund (Management) Board, Dr. Goddy Nnadi (left), in a hand- NNPC, Yetunde Azendah (left), shows off her award, while shake with Mallam Musa Bashir Usman (right), Chief Timipre Chief Timipre Sylva (middle), and Mallam Musa Bashir Usman Sylva (middle), watches on (right), watch on

The Director DPR, Engr. Sarki Auwalu (2nd left), displays his award, (L-R): The DG, NIMASA, Dr. Bashir Jamoh (left), displays a flanked by Director, AYM Shafa, Alhaji Abba Abdul (1st left), the COO, plaque, while Chief Timipre Sylva (middle) and Mallam Musa Gas and Power, NNPC, Engr. Yusuf Usman (2nd right), and Dr. Bashir Usman (right), watch on Zahid Ali-Khan of Charitos Hospital, Abuja (1st right)

The MD AERO Contractors, Mr. Abdullahi Mahmod (left), The Director, AYM Shafa, Alhaji Abba Abdul (left), receiving shakes hands with Chief Timipre Sylva (right), after receiving award from the Minister of State for Petroleum Resources, his award Chief Timipre Sylva (right)

18 Photosplash 07:21

(L-R): Mansur Musa of NPDC (left), receives award (Best Innovative (L-R): Mrs. Omotayo Omotosho (left), with her plaque, while Thinker) on behalf of the MD, NPDC, Engr. Mansur Sambo, while Chief Chief Timipre Sylva (middle), and Mallam Musa Bashir Usman Timipre Sylva (middle), and Mallam Musa Bashir Usman (right), look on (right), look on

Hasan Hafidh, Head of PR & Information Dept., OPEC (1st left), Ndu Ughamadu, former NNPC spokesperson (2nd right), when L-R): The Special Assistant to the GCEO Oilserv Group, Chuka they received the ‘Global Citizen’ award on behalf of Sec-Gen Alfred Nze, receiving award on behalf of Oilserv Group OPEC, H.E. Dr. Mohammad Barkindo

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh (3rd from left), dis- plays his plaque with some guests

The MD AERO Contractors, Abdullahi Mahmod, giving a speech Prof. Nosa Bazuaye, a sickle cell specialist, giving a speech

19

Star of the Industry 07:21

Engr. Yusuf Usman Chief Operating Offi cer (COO), Gas and Power, NNPC

21 Star of the Industry 07:21

Engr. Yusuf Usman Chief Operating Offi cer (COO), Gas and Power, NNPC

–By Danlami Nasir Isah His notable achievements include his supervision and design of the Fuel Gas System of both the Amenam/ Kpono production facilities and the FSO. The simula- tion studies executed led to the selection of Joules Thom- son design concept which saved the project substantial amount of money as against the Refrigeration and Ther- mo expanders design initially considered for the project.

ngineer Yusuf Usman grad- pany (SPDC) Warri, from 1987 pression Station for EXXON Mo- uated from the prestigious to 1993. In 1993, he joined the bil JV in Houston, France & Ni- EAhmadu Bello University, Services of Nigerian National geria, AMENAM/KPONO Oil and Zaria in 1987, with a Bachelor of Petroleum Corporation (NNPC) Gas Development for Total JV Engineering (B.Eng.) degree in as Facilities Engineer. Between in Dubai, France & Nigeria, FEED Chemical Engineering. 1993 to October 2007, he rose to of Brass and Olokola LNG Gas He has over 30 years experi- become the Technical Assistant Supply Projects for CNL JV in ence in the oil and gas industry. to GGM NAPIMS. Houston, USA, Gbaran/Ubie Cen- He started his career as Facili- During the period, Usman su- tral Gas Processing Facilities for ties/Project Engineer with Shell perintended over many projects, SPDC/NNPC Joint Venture in UK Petroleum Development Com- including the EKPE Gas Com- and Nigeria, Dry Dock of MV Oloi-

22 Star of the Industry 07:21

biri for Texaco Overseas/NNPC troleum Resources, between concept which saved the project JV in Greece, Usan FPSO Project 2011 and 2015 as Deputy Man- substantial amount of money for Total/NNPC Joint Venture in ager/Technical Assistant to Min- as against the Refrigeration and France, South Korea and Nigeria ister of Petroleum Resources Thermo expanders design initially etc. (Gas Matters), with key respon- considered for the project. In January 2007, he was re- sibilities of advising the Minister Engineer Usman convinced deployed to Nigerian Gas Com- on gas related matters - policies NNPC Management to adopt pany as a Superintendent ETSD, and operations. the concept of Design Competi- responsible for the Upgrade of In January 2015, he was pro- tion on the Amenam Project that Afam Metering Station Project. moted and redeployed back to allows three different contrac- He was later redeployed to Explo- Gas Infrastructure Division, Gas & tors to compete for basic engi- ration and Production (E&P) Di- Power Directorate as Project Man- neering adopting their individual rectorate, Abuja as the Technical ager, OB3 Gas Pipeline Project. In float over installation design, Assistant to GED E & P in Octo- June 2016, he was promoted to with maximum compensation ber 2007, with core responsibility the position of General Manager of $300,000 to each of the three of reviewing all submission from (Cover) Planning and Business competitors. It was the fi rst time NGC. LNG & Power, NCD, IDSL, Development, Exploration and De- such method was deployed in NAPIMS, NPDC and IVO. He also velopment of the Exploration and Nigeria which led to substantial managed ring fenced Domestic Production Directorate. savings on heavy lifts installation Gas Supply budget implementa- Again, in August 2016, Usman cost. He was also instrumental tion, and reported challenges to was redeployed to the Offi ce of to the success recorded in the GED. He also prepared technical GMD NNPC as General Manag- NNPC-led negotiations team that papers for the GED. er Upstream, Gas and Power re- negotiated the various Engineer- Between the year 2010 to sponsible for management and ing, Procurement Construction, 2011, Usman was redeployed review of upstream oil and gas Installation and commissioning to Gas & Power Directorate, development. He was promoted (EPCI) contracts for Amenam Abuja as Deputy Manager, Cal- to the position of Group General Kpono phase 1 project. The team abar to Ajaokuta Pipeline (CAP) Manager/Senior Technical Assis- achieved a savings of $20 million Project and concurrently as tant to GMD in August 2017, a po- for the Joint Venture. Deputy Project Manager, Lot A sition he held until his recent ap- He has presented several tech- of the 48’’x130km Obiafu-obri- pointment as COO Gas & Power. nical papers and attended train- kom-Oben (OB3) Critical Gas His notable achievements in- ings, seminars/workshops in Ni- Pipeline Project. clude his supervision and design geria and abroad. He is a recipient Consequent upon his excep- of the Fuel Gas System of both the of GMD’s Merit award in 2004/5 tional performance and unpar- Amenam/Kpono production facil- and 2009. He is a COREN regis- alleled leadership skills, Usman ities and the FSO. The simulation tered engineer and a member of was seconded to the Offi ce of studies executed led to the selec- the Nigerian Society of Engineers the Honourable Minister of Pe- tion of Joules Thomson design (NSE).

23 Cover Story 07:21 Stakeholders Resolute on AKK Completion ‘Against All Odds’

• No cause for alarm, FG assures stakeholders • Project to revamp over 232 industries • Links gas supply to other African countries, Europe

–By Teddy Nwanunobi espite fears that Nigeria’s June 30, 2020, made an auda- geria and the global oil industry aspirations to boost the do- cious statement, when President under crisis. Dmestic utilisation of its gas Buhari launched the construction The AKK pipeline is a 614km- would be frustrated by funding of the pipeline. The commission- long natural gas pipeline set to to deliver the $2.8 billion Ajaoku- ing was described as the biggest be laid from Ajaokuta, Kogi state ta-Kaduna-Kano (AKK) gas pipe- and most important project to be up to Kano and forms phase one line as scheduled, stakeholders inaugurated in Nigeria that year. of the Trans-Nigeria Gas Pipe- have been reassured of the deter- The flag-off happened despite line (TNGP) project. The line is mination of President Muhamma- the global economic downturn being implemented via a build du Buhari’s administration to de- caused by COVID-19 and its at- and transfer (BT) public-private liver the project as promised. tendant fiscal pressure such as partnership (PPP) model, which The federal government on low crude oil prices that put Ni- involves the contractor providing

Governor Abdullahi Umar Ganduje Chief Timipre Sylva Mele Kyari

24 Cover Story 07:21

100% of the funding. The pipe- line which will cost an estimated $2.8billion, is expected to trans- port gas from several gas gath- ering projects located in southern Nigeria. The project will result in the establishment of a connect- ing pipeline network between the eastern, western and northern re- gions of Nigeria. It also aims to create a steady and guaranteed gas supply net- work between the northern and southern parts of Nigeria by utilis- ing the country’s widely available gas resources. The project is expected to be financed through an 85 per cent debt and 15 percent equity with a scheduling, issues around chang- the sum of $1 billion to continue 12-year repayment plan and com- es that occur during execution work on the project. It was also pletion period of 24 months. Spe- and poor contractor selection alleged that cash was yet to be cifically, 85 percent of the money processes had been resolved. disbursed as quickly as possible. is expected to be funded by In- But one year after, it looked like Although the Chinese lend- dustrial and Commercial Bank of the huge project would go the way ers were yet to comment on the China (ICBC), Bank of China, and of most projects that had been issue, the Minister of State for Infrastructure Bank of China with abandoned in the past. Chinese Petroleum Resources, Chief Timi- Sinosure, China’s Export Credit lenders had originally been lined pre Sylva; Minister of Finance, Agency (ECA) providing insurance up to fund the bulk of the estimat- Hajiya Zainab Ahmed; Minister cover. The remaining 15 percent ed $2.8 billion cost of the project. of Power, Engr. Saleh Mamman; will be provided by the NNPC. The Chinese lenders who had Group Managing Director (GMD) At the launch of the project last pledged to offer most of the funds of NNPC, Mallam Mele Kyari have year, stakeholders (all the agen- ($1.8 billion), were, however, said unanimously declared that there cies of government overseeing to be delaying to come up with is no cause for alarm. The actors the project) including the NNPC the fund. Reports said that this all spoke in one voice at the 2021 had assured that the factors re- delay may have allegedly forced Gas Sector Stakeholders Forum sponsible for failure of such proj- the Nigerian National Petroleum in Kano, Kano State. ects in the past, including funding, Corporation (NNPC) to seek for Organised by the Gas Aggrega- poor scope definition, optimistic

HRH Alhaji Aminu Ado Bayero Adokiye Tombomieye Mansur Sambo

25 Cover Story 07:21

Governor Abdullahi Sule Mohammed Abdulkabir Ahmed Zainab Ahmed tion Company of Nigeria (GACN) Pipeline is meant to rekindle the northern part of Nigeria of the on Thursday, July 29, the event vibrancy of our industrial sector upcoming opportunities to bring was themed: ‘Optimizing the Eco- and commercial activities, espe- both new and hitherto moribund nomic Development Capacity of cially in Kano, which is actually companies back to life. Kano Ajaokuta-Kaduna-Kano (AKK) the nerve centre of commerce State, alone, is dotted with several Gas Pipeline Project’. and industrial activities in the industrial parts, such as Chalawa In his welcome address, the northern Nigeria,” he said. Industrial Estate that houses rice Chairman of the GACN Board, In his keynote address, the Min- mills, beverages, jute bag manu- Engr. Mansur Sambo said the ister of State for Petroleum Re- facturing, plastic products man- event was organised by the com- sources, Chief Timipre Sylva ex- ufacturing etc. Sharada Industrial pany in Kano, being the com- plained that the event was geared Estate (phases I, II and III), dealing mercial and industrial hub of the towards kick-starting the required with hides and skin, textile mills, Northern Nigeria in order to sensi- activities that would guarantee foundry and steel-rolling mills, tise the would-be off-takers of the full usage of the delivered gas vegetable oil mills, plastic pipe, gas product when completed. through the AKK Pipeline when afro sacks plants etc. Bompai In- “We’re here to sensitise gas completed. dustrial Estate, accommodating users, as a preview to the com- “The lens is today focused at flower mills, mattress production, pletion of the pipeline. Anybody, facilitating increased gas pene- animal feed plant etc. growing up in this part of the tration in the northern part of this “These parts and others that country, would have known how great country, especially the AKK dot the Kano-Kaduna and other Kano (State) used to be very vi- (Gas) Pipeline (Project) corridor AKK corridor states justify the brant, not only as a commercial states of FCT (Federal Capital need to optimize value creation nerve centre, but also as an indus- Territory), Kano, Kaduna, Kogi, from these industries. Experts es- trial centre. To a very great extent, Niger, Nasarawa and other neigh- timate that it would take, at least, that position has been tampered bouring states. two to three years to rehabilitate with the loss of many industries “Therefore, this gas sector’s and reposition these industries and jobs that went away with the opportunity forum is geared for optimal performance. closure of the industries. The AKK towards sensitizing the entire “Thus, today’s collaboration

The AKK Pipeline is meant to rekindle the vibran- cy of our industrial sector and commercial activities, es- pecially in Kano, which is actually the nerve centre of commerce and industrial activities in the northern Ni- geria,” he said.

26 Cover Story 07:21

Ed Ubong, President NGA Saleh Mamman with all stakeholders is geared unions and the detailed review of sustained,” he added. towards kick-starting the required the gas pricing framework in Ni- In his goodwill message, the activities that would guarantee geria, the price of gas-to-power Minister of Power, Engr. Saleh full usage of the delivered gas has been reduced from $2.50 to Mamman thanked the Federal through the AKK Pipeline when $2.18, with immediate effect. The Government for reducing the gas- completed. Today’s event rein- outcome of the negotiations and to-power price. forces our commitment to realiz- review (has) been communicated He noted that the power sec- ing the inherent potentials of gas to the relevant stakeholders,” he tor uses more than 60 per cent of usage as a national catalyst for said. the gas currently generated in the achieving economic diversifica- Sylva also underlined Buhari’s country to generate electricity. tion from crude oil and as transi- determination to see the comple- Saleh added that the price re- tion fuel from fossil fuels of today tion to the end. duction will assist the Federal to the renewable energy of tomor- “The National Gas Expansion Government’s goal of delivering row. Programme (NGEP), which was sustainable power for the coun- “It is this commitment that in- launched in January 2020, is a try. formed our support and eventual flagship programme that is fo- In a paper titled, ‘The AKK commissioning of two gas-pow- cused on ensuring that all these as an Economic Development ered plants, virtual pipeline oper- objectives are achieved, and the Game-Changer – NNPC’s Vision, ated in Kano State in December gains emanating therefrom are Contributions, & Plan Forward’, 2020, achieving an uninterrupted delivery of over 30 megawatts of power supply to the industrial hub. Our successful collabora- tion and completion of the AKK in 2023 will significantly enhance Mr. President’s vision and current drive for increased domestic gas utilization as the mainstay for the national industrialization for increased foreign investment, government revenue growth and ultimately provide more job op- portunity for Nigerians. “Let me use this medium to an- nounce to this gathering, follow- ing the successful negotiation be- tween the Federal Government of Nigeria and the organised labour Governor Ganduje in handshake with Emir of Bichi, HRH Alhaji Nasir Ado Bayero

27 Cover Story 07:21

In his speech, Governor Abdul- lahi Umar Ganduje, of Kano State, who was the host Governor for the event, noted that bringing gas to Kano will reawaken the indus- trial consciousness of the state. Dr. Ganduje, who welcomed the stakeholders, added that Kano is fully prepared and waiting for the completion of the project which will assist greatly in giving life to industries in the state. Also speaking, the Governor of Nasarawa State, Engr. Abdullahi Sule, noted that access to AKK through FCT Abuja, is one of the best things to happen to Nasara- wa state. He assured the GACN, the or- ganisers of the forum that his the GMD, NNPC, Mallam Mele gathering would not have been state has already strategized to Kyari, reechoed Federal Govern- possible, if we don’t have a line fully tap into the project by de- ment’s determination to deliver of sight to the completion of the veloping an industrial cluster the project as scheduled. AKK gas pipeline project. This which will be located along Abuja Kyari, who added that it would is possible because of the clear - Nasarawa border. He added that also serve as gas supply link to direction that Mr. President has already, Dangote Group and Flour other African countries and Eu- shown on the need to deepen do- Mill of Nigeria have indicated in- rope upon completion, stated that mestic gas consumption with a terest to invest in the state. the AKK gas project would help view to creating prosperity out of Other Governors of Niger, Ka- revamp about 232 industries cre- the enormous gas resources we duna, Kogi states who spoke ating massive employment op- have as a nation. He has given us during the event, assured the Gas portunities and prosperity for the all the necessary support and in- Aggregation Company of Nige- people. centives to deliver on this project,” ria of their readiness to take the “This project has been on he stated. advantage of the gas pipeline in the drawing board for 30 years, Kyari also said the AKK gas boosting industrial activities in and the dream was to have gas project would boost the agricul- their various states. delivered to Europe across the tural, industrial, manufacturing Also present at the event were Trans-Sahara route. What we and power sectors for the overall the Emir of Kano, His Royal High- are seeing today would deliver growth of the nation’s economy. ness, Alhaji Aminu Ado Bayero; at least 2 billion standard cubic He averred that the AKK gas Emir of Bichi, Alh. Nasir Ado Bay- feet of gas to the domestic mar- pipeline project was in line with ero, Emir of Rano, Amb. Kabiru ket at the first instance with the the aspiration of the Federal Gov- Muhammad Inuwa, and Alhaji potential to increase it. What this ernment to reduce the nation’s Aliko Dangote. means is that it will debottleneck carbon footprint in line with the Highlight of the event was the the gas supply network in the en- global quest to arrest global autogas exhibition by many local tire country,” Kyari informed the warming and climate change and and foreign companies, at the stakeholders. in furtherance of the Decade of venue. He said that the AKK gas proj- Gas programme. Apart from the participants at ect would also lead to the devel- According to him, gas is a key the place of the event, over 500 opment of three Independent driver of prosperity all over the people joined virtually. The gov- Power Plants (IPPs) in Abuja, Ka- world and it cannot be different in ernors of the AKK states are: Dr. duna and Kano states. Nigeria, stressing that the exten- Umar Ganduje (Kano), Malam He added that the IPPs would sive industrial layout in the Otta Nasir El-Rufai (Kaduna), Alhaji Ya- boost electricity supply and pro- area of Ogun and Lagos states haya Bello (Kogi), Alhaji Abubakar mote the growth of small and is anchored on the gas supply by Sani Bello (Niger), Alh. Muham- medium scale enterprises in the the NNPC and its partners which mad Musa Bello (FCT). Nigeria. is creating jobs and other oppor- “I want to state clearly that this tunities for people.

28 Industry 07:21 PIB: Will Opposition over 3% Host Community Fund Sway Buhari’s Assent?

–By Gideon Osaka here are little chances that reservations were raised, particu- troleum host communities. The President Muhammadu Bu- larly about the clauses proposing 3 communities, government and op- Thari would withhold assent per cent and 5 per cent of oil com- erators could not agree on the best to the Petroleum Industry Bill (PIB) panies’ operating expenditure be way to address the concerns of the 2021 when it finally gets to his ta- contributed to a fund for their host host communities. Moreover, there ble, going by the fact that the exec- communities. While the Senate set- were also issues with defining what utive arm of the government did not tled for 3 per cent, the House ap- constitutes a host community. only initiate the Bill, but has shown proved 5 per cent. This differential While the host communities are unparalleled commitment with the warranted both chambers to set up demanding more to deal with the 9th National Assembly to see the a harmonisation committee. issue of the environmental effect Bill become a law. The harmonised version of the of oil operations, the government Previous attempts to pass the Bill, which was produced by a con- believes that enough is already be- PIB had failed due to stiff opposi- ference committee of both cham- ing done in this area, given all the tion to certain provisions in the Bill, bers, was passed, after it was agencies that are involved in the just as agitations over certain pro- submitted for consideration by the development of the Niger Delta re- visions in the 2021 PIB have height- federal lawmakers the same day. gion. It is based on this that the PIB ened uncertainties over potential Despite opposition, the Committee 2021 adopted a novel approach to assent to the Bill by the President. adopted the Senate’s recommenda- this issue by introducing the Pe- Several groups and individuals tion of 3 per cent of oil companies’ troleum Host Community Develop- have voiced their concerns on the operating expenditure to a fund es- ment (PHCD). The PHCD has the Bill, calling on President Buhari not tablished by the Trust for the host objectives of fostering sustainable to sign it into law. Would their grow- communities. prosperity, provide direct social and ing clamour compel the President The passage of the Bill has not economic benefits from petroleum to take a second look at the Bill gone down well with people of the operations, enhance peaceful and again? Valuechain findings, based Niger Delta in particular and a cross harmonious co-existence between on experts’ analysis and the voic- section of Nigerians. licensees or lessees and host com- es in support of the Bill’s passage, The controversy over the Host munities, among others. showed that the President may be Community Development Trust overwhelmed to sign the Bill into was a crucial reason why the PIB What is the Host Community De- law this time. was delayed. Previous attempts velopment Fund about? The Senate and House of Repre- to pass the Bill in 2009, 2012 and Section 235 of the Bill requires a sentatives had, on Thursday, July 1, 2018 also failed, partly because settlor (an oil company) or a group passed the PIB, after which a few of the stiff opposition by the pe- of settlors under a joint operating

President Muhammadu Buhari Federal House of Representatives in sitting

29 Industry 07:21

agreement to incorporate a Host half a billion dollars. “I want us to get started. Even if Community Development Trust According to the Chairman of the they arrive at one per cent – that (HCDT). The Trust is to aid the de- Senate Committee on Petroleum was never there before. Let’s see velopment of the economic and so- Resources (Downstream), Senator how the host communities would cial infrastructure of the communi- Sabo Mohammed Nakudu, the ear- make use of what they have. From ties within the petroleum-producing lier percentage, which was 2.5, was there, we can say, ‘It’s okay. You area. Unlike the 13 per cent deriva- increased to 5 per cent, but later re- have managed it properly. Let’s tion, which involves payments go- duced to 3 per cent. amend the law.’ ing from the Consolidated Revenue He added that it was reduced af- “The law is amendable. There Fund (CFR) directly to the State Ex- ter the Nigerian National Petroleum is always an amendment of the ecutive via FAAC transfers, the PIB Corporation (NNPC) explained that law whenever the need arises. Of requires a ‘settlor’ to incorporate an five per cent was a huge amount of course, if they use the money very HCDT. The settlor will then appoint money, and that the enabling envi- well, there is always an opportunity and authorise a Board of Trustees ronment needed to be created to for amendment,” the former Gover- (BOT) registered with the Corporate attract investors because fossil oil nor of oil-rich Akwa Ibom State sub- Affairs Commission (CAC). The set- was fast going out of fashion. mitted during a Town Hall Meeting tlor will, in effect, set the constitu- Shedding more light on the mat- at the NAF Conference Centre, Abu- tion and memoranda of the HCDT ter, the Senate spokesperson, Sen- ja on Protecting Oil and Gas Infra- BOT, and they will agree to regula- ator Ajibola Bashiru, explained that structure. tions, qualifications and all matters the Bill does not end at its passage. relating to the BOT. “From the projection made by the Voices of opposition Section 251 requires the settlor NNPC GMD (Mallam Mele Kyari), The rationale offered for the to conduct a needs assessment of who briefed us, it will amount to adoption of 3 per cent to host com- the community, and develop a com- $502.8 million for the host commu- munities has still not gone down munity development plan (CDP) to nity development fund. well with the people of the Niger address the identified needs. The “That is a huge amount of money Delta and some prominent Nigerian PIB requires each settlor to con- that we believe the host community political leaders. Voices against the tribute 3 per cent of its actual op- will definitely benefit from. perceived injustice to the region in erating expenditure in the upstream “So, the 3 per cent operating ex- the Bill have continued to escalate. petroleum operations in the preced- penditure will annually amount to The governors of southern ing calendar year to a fund (Host $502.83 million. states (including those of the Niger Community Development Fund) es- “The initial projection was 2.5 per Delta) have since communicated tablished by the Trust. Seventy-five cent, and it was increased to 3 per their rejection of the proposed 3 per per cent of the annual contribution cent. The caveat is that we can al- cent share to host communities in shall fund capital projects, 5 per ways amend the Bill as time goes the PIB. A communique that was cent is for administrative costs, on.” issued by the governors at the end while 20 per cent is retained as a re- Among the many proponents of of their recent meeting in Lagos serve fund, and invested in utilising the Bill is the Minister of Niger Delta State said the governors, instead, the Trust when contributions from Affairs, Senator Godswill Akpabio, supported 5 per cent share to the the settlor cease. who has urged President Buhari to communities. go ahead and assent to it, if it was Similarly, former Bayelsa State Justifying 3% for host communi- brought before him. Governor, and now senator repre- ties “No matter the percentage that senting Bayelsa Central Senatorial The Senate had argued, during is given to the oil communities, we District, Seriake Dickson, called on the consideration of its conference may end up with communal clash- President Buhari not to sign the Bill. committee report on the harmoni- es. So, I think that we should get Dickson, who maintained that sation of the PIB, that it settled for started. The journey of a thousand the Bill did not consider the people, the three per cent because it was miles begins with a step. We can added that it should be sent back convinced the money amounted to have 10 per cent of nothing. for more legislative work and con-

The PHCD has the objectives of fostering sustainable prosperity, provide direct social and economic benefits from petroleum operations, enhance peaceful and har- monious co-existence between licensees or lessees and host communities, among others.

30 Industry 07:21

Senator Godswill Akpabio Senator Seriake Dickson Governor Douye Diri

sultations. what an oil-producing community cent of OPEX is inadequate, sto- Speaking during a press con- is not addressed, it is a time bomb chastic, heterogenous and inequi- ference at the National Assembly that could explode,” he warned. table. More reliable funding sources Complex, Dickson pointed out that During the consideration, the are required for HCD to be effective. President Umaru Musa Yar’Adua, Deputy President of the Senate, “Knowing the benefits inherent in who initiated the Bill, proposed 10 Ovie Omo-Agege, said that while the Bill in an overall sense, I would per cent. the Niger Delta wants a deal from still recommend the passing of the “As you know, I disagree com- the PIB, it, nonetheless, wants a Bill, conditional on removing some pletely with the 3 per cent. This good deal. of the provisions that are anticom- country is not helping itself, and not Speaking on the clamour for petitive, inequitable, and perhaps helping the investors. If the host 10 per cent contribution by sector skewed sentimentally to fulfil ‘pre- communities are not happy, will the companies to the host communi- bendalistic’ and ephemeral political investors come? ties’ trust fund, Omo-Agege said: “I elitism and fervour!” “You are not dealing with one understand we cannot meet the 10 As opposition towards the 3 per community. You are dealing with per cent. But that is the clamour at cent host communities’ trust fund hundreds of communities. No one home.” and demands bothering on the is engaging the communities. No He said that contrary to the pop- definition of a host community con- one is explaining to the people. ular belief that in the next 10 to 15 tinues to gather steam, more ques- People, who think they have major- years, there would be no use for oil, tions continue to be thrown up for ity votes, have imposed 3 per cent the Niger Delta believes “that no consideration. on the communities. Let’s not talk matter the thinking of the invest- For instance, given that compa- about signing the Bill. It should be ment community, oil will always be nies operating in the industry al- sent back for more consultations,” relevant.” ready have corporate social respon- Dickson said. He disclosed: “in my Senatorial sibility (CSR) initiatives directed at Also disagreeing with the clause District and indeed in most of Niger some of these host communities, is Governor Douye Diri of Bayelsa Delta, they are prepared to let this will such initiatives be transitioned State, who spoke against it when oil remain on the ground until may to the HCDF, or will this be incre- he featured as a guest on Channels be another 40 to 50 years when mental to the initiatives already on- Television breakfast current affairs there may be no need for oil again.” going? It remains unclear whether programme, Sunrise Daily. Diri ar- On his part, Professor of Petro- the Niger Delta Development Com- gued that it was unthinkable and leum Economics and Policy Re- mission (NDDC) levy will continue to total injustice to allot 3 per cent to search, Wumi Illedare, said that operate alongside the HCDF, as the oil-producing communities, adding though there were provisions in- PIB did not specify that the NDDC that the position of the state was jected after the public hearing that levy will no longer be relevant. 10 per cent. leave much to be desired, the situa- Should this be the case, companies “The definition of host communi- tion is still redeemable. may need to assess the impact of ties or oil-producing communities “The host community develop- the additional cost primarily due to is also worrisome. Oil-producing ment fund is incapable of the type the multiplicity of taxes/levies. communities should not be where of development the communities pipelines are laid. If the issue of would need. Five per cent or 3 per

31 Industry 07:21 NCDMB Wins Valuechain’s ‘Best Public Agency of the Year’ Award –By Teddy Nwanunobi

he Nigerian Content De- velopment and Monitoring TBoard (NCDMB) was, on Monday, July 12, awarded the ‘Best Public Agency of the Year’ Award by the Valuechain Oil & Gas Magazine for its second to none service delivery. NCDMB bagged the Award on the occasion of the 4th Annual Valuechain Lecture & Awards, which was held at the Fraser Suites, Central Business District (CBD), Abuja. The Publisher of Valuechain Magazine, Musa Bashir Usman, Engr. Simbi Wabote described NCDMB as an out- standing Federal Government livery, and this is evident in the agency that needs to be appre- diligent and professional way ciated for what it was doing in the staff discharge their stat- the area of local content devel- utory responsibilities to the oil opment in the oil & gas industry, and gas industry and execute all so as to encourage it to do bet- Board’s activities. ter. He asserted that as part of Meanwhile, the Executive the Board’s efforts to continu- Secretary of NCDMB, Engr. Sim- ously improve service delivery, it bi Kesiye Wabote, has expressed provides appropriate budgetary have a 15-day rule that anything optimism that the Board, un- provision to train the staff to im- they send to us and they do not der him, is doing all it could do prove their skills and competen- get a response within 15 days, to remain the best government cies. they should assume that it has agency in the country. “We want to be the number been approved. Nobody has Wabote, who made the dec- one government agency in the been able to take us to task on it, laration, stated that the NCDMB country, and we are working to- because meet the SLA that we was striving to become the best wards it. To achieve this, we are signed,” he maintained. federal agency in terms of ser- investing in our people, our ser- He also hinted that the vice delivery in line with its man- vice delivery and the turnaround Board’s efficient service deliv- date, the Executive Secretary, time in everything that we do,” ery contributed significantly to Engr. Simbi Kesiye Wabote has he said. securing the approval for the said. Wabote mentioned that the NLNG Train 7 contract within a He spoke recently after he Board signed Service Level year as against the usual three- signed the NCDMB SERVICOM Agreements (SLAs) with key year contract approval cycle in Service charter at the Board’s stakeholders in the oil and gas time past. headquarters in Yenagoa in the sector to ensure promptness He assured that the Board will presence of senior officials of and effectiveness in the delivery focus on continuous improve- the SERVICOM office. of its statutory responsibilities. ment of its processes and activ- He mentioned that the Board “At some point we challenged ities. is passionate about service de- the oil and gas industry that we

32 Interview 07:21 Government should Encourage LPG Usage Auwalu Ilu

uwalu Ahmed Ilu is the CEO of a fully integrated LPG supply chain company, Ultimate Gas. It is involved in the offtake transportation, bottling and distribution of the LPG and natural gas liquid. AAn experienced businessman, with interests in energy, maritime and logistics, Ilu is blessed with over two decades’ experience in the LPG business. Ilu, at one time, had served as the President of Ni- gerian Association of LPG Marketers (NALPGAM), and he also served as a Presidential member of the LPG Steering Committee between 2004 2007. In this interview with TEDDY NWANUNOBI, the former President of the Nigeria LP Gas Association (from 2009 to 2013) said that LPG is cheaper from outside Nigeria, explained why many Nigerians are yet to embrace the use of domestic gas, and suggested what the government should do to encourage gas utilisation in the country. Excerpts.

On the challenges in the sector: moved on importation, but it was You know, Nigeria is richly en- added on domestic gas. But I am dowed with LPG, and unfortunate- happy to say that now the govern- ly, we are not making very good ment (has) realised, and is giving a use of it, until very recently. Even lot of priority to the sector. though I must acknowledge that Now, the government is pursu- the challenges (have) come over ing the Nigeria gas commercialisa- the years, the product availability tion programme, so as to stop the has increased. The demand has gas player, which has gone in ad- increased. If you look at it, in the vance stage, and there are a lot of last 10 to 15 years, we have grown local companies that are process- the consumption level to almost ing gas within onshore which also 1.2 million tons per annum, which adds to the volume of gas that is is quite remarkable. But going by available in the market, and very our population, and the fact that recently, the marginal fi elds were Nigeria is a gas (producing coun- also given out, which will also pro- try), we are still not doing very well. duce a lot of gas, which, I believe, We have the potential of growing will also add to the gas processing the market up to 5 million tons facility that will be available, and per annum, because the product as you are rightly aware, the gov- is available, and the population is ernment is trying to see how they there. But we are making progress, can promote the consumption of and I believe that we will continue LNG (liquefi ed natural gas) locally to make progress. and the expansion of CNG under the Natural Gas Expansion Pro- On accessing Nigeria’s gas sector: gramme (NGEP). Well, like you rightly know, a lot Recently, the Nigerian LNG has of (priorities have) not been put Auwalu Ahmed Ilu set aside some volumes out of into the gas sector – one, because their own facility that they will use the PMS (premium motor spirit) charging VAT (value added tax) to deliver to the domestic market, market has been heavily subsi- on it, and to some extent, import just like they are doing with the dised. Until about two years ago, duty. But from 2007, the Federal LPG. That will also help to boost the petroleum was heavily subsi- Government removed import duty the local market, and also the AKK dised, while gas was being dereg- on LPG, and also value added tax, (Gas Pipeline) project that is taking ulated. So, there was no way you and then, somehow, along the line, the natural gas pipeline from Ajao- can promote gas when you are it was reintroduced until two years kuta to Kaduna to Kano has also subsidising one product, mostly ago, when this administration re- taken off. So, that will also help PMS, and kerosene. And then, not moved completely the value add- Nigeria to utilise its gas resources. only you deregulated LPG, you are ed tax on domestic LPG. It was re-

33 Interview 07:21

On the underutilisation of the gas ing equipment for a gas process plants. I can’t even mention the sector: facility, you are exempted from pay- numbers, because they keep on There was no fiscal regime, in ing some tax, you get some rebates increasing by the day. So, yes, the terms of incentives, in terms of under the added system, and that target has been set, and all the cost, in terms of – even pricing has helped. I also benefited from stakeholders, particularly the gov- that will make it very competitive, that, and it is encouraging a lot of ernment are also working hard on and like you rightly know, you could people to do so. At least, now, we it through various programme ini- use this for auto gas. But in a situ- are talking about it – and a lot of tiatives and incentives. ation whereby the government is policy framework and fiscal regime heavily subsidising the petroleum, are being put in place. And of re- On catching-up with the world: which is used for auto gas, which cent, the passage of the PIB (Pe- For now, the focus has changed, we consume energy – about 50 troleum Industry Bill), which will ad- unlike before. If you look at Nige- million litres a day, when you could dress the issue of the regulator, the rian LNG Brass, it was all target- have even used either the CNG kind of power they will have, and ed towards export. But I think the (compressed natural gas), or LNG that will also fasten the process of emphasis is on domestic utilisa- for the auto gas industry. And there attaining the desired goal. tion, which is, at least, the change is no way you can compete with a I see, really priority now is (in- that we are experiencing. Most of regulated product, when the other vesting) on gas, rather than on these programmes, most of these product is deregulated. These are oil. Unfortunately, it came too late, incentives are really towards utilis- some of the challenges that are because it came at the time when ing these resources, and there is a not allowing the market to grow. the economy is really in bad shape, huge potential. If you look at the If you look at it from the naira when the global financial system is Greenville project that is very suc- and kobo point of view, it is not very affected, but never late than never. cessful now, most of the LNG that encouraging, and particularly the I believe we will be able to achieve is being processed there is being amount of capital that is required our goals. delivered to Nigerian customers. to deploy to switch over to intro- As I mentioned earlier, the Nigerian duce all these gasification projects On the Year of Gas: LNG has dedicated some volumes around the country is not going to To an extent, we made a re- to develop the domestic market. be an easy task. But I believe now, markable improvement. If you look And there are so many other plans the government, together with the at 2019, I’m talking about LPG in in the pipelines. The focus now is stakeholders, are looking at how to particular, our consumption was now exporting the product, but to overcome some of these challeng- almost like 800 to 900 thousand be able to utilise it – whether in the es, and it’s been addressed, and I metric tons, while last year, we forms of CNG, LNG, or LPG. believe that in the next couple of were able to reach 1.2 million, and years, Nigeria will be able to opti- we are hoping that by the end of On why many Nigerians are yet to mally utilise its gas resources. this year, we will be able to reach embrace domestic gas: about 2.5, 2.6 million tons per For a very long time, it has al- On the Decade of Gas: annum. There are a lot of invest- ways been a perception. But with I think the most important thing ments in the pipeline. So many time, people are changing that is that they are talking about it, receiving terminals (have) come perception, particularly at a local and to be honest, there are lots of on board. A lot of people have in- level. One because of the eco- policies in place. There are lots of vested. We have over almost - how nomic consideration. As at today, incentives. In fact, if you are import- many thousands of SPG filling LPG is cheaper than firewood, and If you look at it from the naira and kobo point of view, it is not very encouraging, and particularly the amount of capital that is required to deploy to switch over to introduce all these gasification projects around the country is not going to be an easy task. But I believe now, the govern- ment, together with the stakeholders, are looking at how to overcome some of these challenges, and it’s been addressed, and I believe that in the next couple of years, Nigeria will be able to optimally utilise its gas resources.

34 Interview 07:21 kerosene is not there for you to big, large vessels that will take like On the way forward: buy. So, you don’t have any other 45000, 46000, 50000 metric tons, To be honest, this is market-driv- alternative – it’s either fi rewood whereas, their receiving facility in en. Apart from the government or gas. And if you look at the cost the country does not take more policies. In fact, sometimes, even implication, it’s cheaper. For eco- than 10 (tons). In fact, some loca- the government discourages peo- nomic reasons, people are forced tions like Warri, you can’t go with ple from using LPG. In 1998, it was to switch over to LPG. Neighbours a 10 toner vessel, unless, maybe deregulated. Import duty was put are seeing it. Mrs. A or Mrs. B has it’s half empty, because of dragged on LPG. It’s like the government been using it for over a year, and constraints and other logistics was discouraging the use of LPG. I’ve not seen any fi re incident in uses. So, those issues are being They made it very expensive. Still, their houses. So, their neighbours worked out, and are also being as I speak today, the Federal Gov- will also adopt LPG as a means of addressed. We are yet to even uti- ernment is subsidising petrol. So, domestic energy. So, defi nitely, the lise most of the LPG. Nigeria NLG your auto gas will never develop. perception that gas us dangerous export LPG. ExxonMobil, Chevron In fact, from what I’m hearing, they is being addressed. Even though, export LPG outside the country, are even trying to introduce VAT on of recent, there have been a lot of because the logistics of bringing it imported LPG, which is also going cases of gas explosions and acci- from escarvos to Lagos, or to any to add to the cost. So, a lot of these dental situations. If you look at the other location will make (it) very multiple challenges, which are hin- percentage, it’s changing, most es- uneconomical, and until those dering the accelerated gross of the pecially at the local level. issues are addressed, and until consumption. Having said that, those challenges (have) been sort- the market is still growing, year- On its affordability: ed out, you have to continue to im- in-year-out. It has never been the It’s still cheaper, compared to port to be able to supplement (the same. Every year is better than the when you use it for a month. How product) in the market. previous one. (much) fi rewood are you going to use in a month? Even though peo- On the small number of Nigerians On the nation’s multiple gas pro- ple see it as expensive, it’s cheaper using LPG: grammes: than fi rewood. The market is growing. In 2007, For the fi rst time, the govern- it was 50,000 metric tons. As you ment is talking. Government is even On the high cost of domestic gas: address one problem, another one dedicating the 2021 (to 2030) as There are a lot of challenges arises. In 2007, the major issue the Decade of Gas. All these mul- why the price of gas has remained was supply. That is when the Nige- tiple programmes, being initiated very high. One, it has to do with the rian LNG came in, and said, “Okay, by the Federal Government, all the rate of dollar exchange. Two, even we can guarantee you supply”. But stakeholders, are quite remarkable though we produce in Nigeria, the if you look at 2007 to 2021, we achievements, and the focus now logistics to bring it to the domestic have reached 1.2 million (metric) is on gas, and not only on gas, but market, sometimes, is even more tons, which is a remarkable gross. also on domesticating our gas re- expensive when bringing it from But if you look at our population, sources, which is a priority that the outside the country. As I speak to the fact that we are a gas-produc- government is putting in place. you now, only about 40 per cent of ing country, then we are not any- Government should keep on domestic LPG that is consumed where near where we should be. with the good work. They should in Nigeria comes from the do- encourage and keep looking at mestic sector, about 60 the fi scal regime. I be- per cent is being import- lieve that the passage of ed. Logistically, it’s easier the PIB, and even though and cheaper to bring LPG there are a lot of issues in from outside the country it, you know, we need to than to take it from Bon- look at these issues, and ny to Lagos, because of address them so as to un- the mix match between bundle our gas resource the loading terminals, the sector. programme they have All the government in the loading terminals, needs to do is nothing and the receiving facili- but the incentives and the ties, because when those fi scal regime that will en- projects were designed, courage people to be able they were designed purely to grow their businesses, for export. They are de- which, I think, is being signed to accommodate done.

35 Guest Column 07:21 Decarbonisation: Nigeria’s Pathway to the Great Transition

–By Dr. Wisdom Enang

ossil fuels provide 80 per cent ering, and consuming energy. This ment, who in 2020 declared that of the world’s energy, and does not necessarily mean that the “climate risk is investment risk”, Fare undoubtedly the energy older frame of values will become and stated that the group will be foundation upon which global so- obsolete or irrelevant anytime soon, selling their direct investments in cieties function. A sudden change but the centre of weight is definitely companies that derive more than in the composition of that founda- rebalancing itself. 25 per cent of their revenues from tion can potentially destabilise the The clarion call for decarbonisa- thermal coal. While Black Rock’s global economy and key elements tion is apt and comes in the context strategy made headlines due to the of modern society. Energy transfor- of critical global drivers such as the fund’s size and influence, other in- mation is shaped by a much broad- Paris Agreement, consumer energy vestors have also been pressuring er and fundamental shift in terms needs, and investor activism. The companies to take more action of prosperity, progress, politics, and Paris Agreement (signed in 2015) on climate change. For instance, the environment. One of the corner- establishes a global framework to Climate Action 100+, which Black stones of this huge transition is ‘de- prevent dangerous climate change Rock has joined, targets high-emis- carbonisation’. by limiting global warming to well sion companies, and has grown This ongoing transformation below 2°C, and pursuing efforts to into one of the largest investor-led does not only concern and apply to limit it to 1.5°C. These goals are set engagement initiatives, with over the energy sector, or to the change against the background, several 450 investor signatories, and rep- from one fuel source to another, scientific findings such as that of resenting over USD$40 trillion in or merely the technological leap. the National Academy of Sciences assets under management across It is much broader, and reflects a (NAS), which concluded in a 2015 dozens of markets. To these inves- change, a transformation, in terms study that it is possible that some tors, a competitive portfolio will no of values, and also the way we un- extreme weather events such as longer solely be determined by its derstand the world around us now- heat waves and droughts to be at- breakeven price, but also by its en- adays. The great transition features tributed to changing climate, due to vironmental impact. a gradual breakaway from the older global warming. Another noteworthy driver is the core values of security, reliability, The consciousness for respon- quest for higher flexibility, conve- and robustness which existing en- sible energy exploitation has also nience, and cleanliness of energy ergy systems were built on, to new been taken seriously by investors services demanded by customers, values of sustainability, flexibility, like Black Rock, the world’s largest especially as income risers. and affordability, enabled by a com- fund manager, with about USD$7 If the world is to come close to pletely new way of producing, deliv- trillion of assets under manage- meeting its climate-change goals,

The decarbonisation problem, interestingly, presents a dual challenge, as there are equally significant emis- sions sources from non-energy sectors, necessitating collaborative and coordinated efforts across various sec- tors of the economy. Oil and gas stakeholders should work with key players and stakeholders from other sec- tors to support research and development of promising decarbonisation technologies.

36 Guest Column 07:21 the oil and gas (O&G) industry will have to play a big part. The indus- try’s operations account for 9 per cent of all human-made green- house-gas (GHG) emissions (Scope 1). In addition, it produces fuels that create another 33 per cent of global emissions (Scope 2). As such, directly and indirectly, the oil and gas industry accounts for 42 per cent of global emissions. To play its part in mitigating climate change to the required degree, the oil and gas sector must reduce its emissions by, at least, 3.4 gigatons As such, achieving a commer- ventional carbon capture and stor- of carbon-dioxide equivalent (Gt- cially attractive energy transition age (CCS). Yet, these technologies CO2e) a year by 2050 – a 90 per in Nigeria will depend heavily on are still at their early stages, and are cent reduction in current emissions. the use of existing oil and gas in- yet to be applied profitably on an in- The decarbonisation problem, frastructure (infrastructure that is dustrial scale. The good news is that interestingly, presents a dual chal- adaptable, reliable and affordable) for Nigeria, there are things that can lenge, as there are equally sig- which has been built around con- be done, which are affordable, effec- nificant emissions sources from ventional resources over many tive, impactful, and relatively low-risk. non-energy sectors, necessitating decades, with billions of dollars Plausible decarbonisation options collaborative and coordinated ef- in investment. It will be a missed for the Nigerian upstream value forts across various sectors of the opportunity not to plan for the chain, which could be leveraged to economy. Oil and gas stakeholders role of existing infrastructure in achieve sustainability, as well as should work with key players and the energy systems of the future. meet carbon footprint reduction ob- stakeholders from other sectors to Therefore, efficient repurposing of jectives include: efficient upstream support research and development existing infrastructure remains a energy utilisation, the advocation of of promising decarbonisation tech- key imperative for decarbonising gas as a transition fuel, promotion of nologies. the Nigerian upstream sector in the carbon capture for sale, and the pro- In view of the previously dis- most cost-effective approach. motion of CO2 enhanced oil recovery cussed decarbonisation drivers, The task of controlling ener- for CCS where technically and eco- emissions intensity is, therefore, gy-related carbon emissions, as nomically viable. becoming an increasingly import- daunting as it may appear from to- The upstream petroleum sector ant metric in portfolio strategy, and day’s perspective, may, in fact, turn accounts for over 66 per cent of as with the breakeven metric, not out to be less obstructive, if indeed oil and gas related GHG emissions all oil and gas reserves are equal an acceleration of long-term struc- in Nigeria, with much of this result- in terms of emissions intensity. Oil tural change trends is called for, ing from cold venting of methane, from Canada and Venezuela for rather than a departure in an entire- flaring and sub-optimal use of ex- example, creates more emissions ly new direction. traction energy. As such, process than that of Nigeria, in addition to Substantial acceleration of de- changes and minor adjustments having lower breakeven prices. As carbonisation would thus entail that help oil and gas companies in such, when it comes to decarboni- both ambitious technological and Nigeria consume extraction energy sation potential and technology policy levers. Policy declarations more efficiently, eliminate flaring pathways, all crudes are not equal. such as the Nigerian ‘Decade of and cold venting will present the In a recent (2020) World Bank Gas’ is a positive step in the right least expensive abatement options. study titled ‘Diversification and direction, as the exploitation of gas The specific options available to Cooperation in a Decarbonising avails us with a more efficient and the various companies will depend World: Climate Strategies for Fossil cleaner source of energy compared on factors such as its geography, Fuel-Dependent Countries’, Nigeria to liquid petroleum. asset mix (offshore vs. onshore, or was considered as having a high Large-scale decarbonisation of gas vs. oil). Nonetheless, from an exposure and low resilience to low the oil and gas sector to a net-zero operational standpoint, plausible carbon transition, owing mainly to target would be extremely difficult decarbonisation options available the strong reliance of her economy to achieve anywhere in the world, as to Nigerian upstream players in- on the oil and gas sector, which ac- there are very limited commercially clude: improved maintenance rou- counts for 90 per cent of the total viable options. There are potential tines to reduce intermittent flaring, exports, and 70 per cent of the gov- new decarbonisation pathways such and vapor-recovery units to reduce ernment fiscal revenue. as blue hydrogen farming and con- methane leaks (fugitive emissions).

37 Guest Column 07:21

Cutting emissions, using this oration of different players within oil within the reservoir also acts approach, is not necessarily expen- upstream Nigeria, towards meet- to unavoidably and permanently sive. In a Mckinsey submission ti- ing the broad goal of decarbonisa- trap over 90 – 95 per cent of CO2 tled ‘The future is now: How oil and tion, and providing a much greater used for EOR within the formation, gas companies can decarbonise’, return on investment, rather than a which cannot be produced back an onshore operator was reported target-based approach. to the surface along with the pro- to have achieved 40 per cent of the If implemented wisely, such op- duced reservoir fluids. aforementioned initiatives, with a portunities could deliver increased Carbon dioxide enhanced oil re- positive net present value (NPV) at revenue streams, offsetting any covery (CO2-EOR) has historically prevalent crude prices, and an addi- negative effects of each compa- used more captured CO2 than any tional 30 per cent at an internal car- ny’s decarbonisation efforts on its other industrial process, and is the bon price of $40/tCO2e. Companies balance sheet. For example, CO2 only commercially established car- can also cut emissions of methane could be captured post-combus- bon utilisation option that provides (a powerful GHG) by improving leak tion, and turned into a valuable raw large-scale permanent storage for detection and repair (LDAR), install- material. captured CO2. In 2015, in the US, ing vapor-recovery units (VRU), or Deloitte, in their report titled ‘The the EPA (Environmental Protection applying the best available technol- 2030 decarbonisation challenge: Agency) issued regulatory guidance ogy (such as double mechanical The path to the future of energy’, pre- that enabled CO2 injected during seals on pumps, dry gas seals on dicted trillion-dollar markets for the EOR to also be classed as stored compressors, and carbon packing use of CO2 as feedstock, for a vari- CO2. As opposed to carbon storage ring sets on valve stems). Mckinsey ety of industrial applications such as generally being seen as a waste dis- estimates that reducing fugitive development of building materials, posal activity when done in isolation emissions and flaring could con- chemicals and synthetic fuels. of market activities, carbon storage tribute 1.5 GtCO2e in annual abate- Part of the ongoing discussion paired with EOR can be a profitable ment by 2050, at a cost of less than of whether CCS will contribute activity that also reduces green- $15/tCO2e. enough to meet climate targets, is house gas emissions. Starting CCS Non-routine gas flaring could the discussion around the role of projects at EOR sites, where oil prof- also be reduced through improved carbon dioxide enhanced oil recov- its offset the cost of deployment, reliability, predictive maintenance, ery (CO2-EOR). Storing captured is the most intuitive and econom- and predictive analytics, which re- CO2 through CO2-EOR enters into ically justified action at the current duce the frequency of equipment a category called associated car- stage of technology development. outage. It has been reported in the bon capture, utilisation and storage To transition to a large-scale CO2- literature that this method also (CCUS), where the captured CO2 is EOR with storage, operators must increases production, in addition utilised for a commercial activity, in account for the additional costs of to reducing emissions. In one of this case EOR, as it becomes ulti- monitoring, measuring, and verifi- such reports, an operator was able mately stored. CO2-EOR works by cation (MMV), which can influence to reduce 50 per cent of all flaring simply altering the properties of project costs. emissions, as well as improve pro- the oil through reduction in viscos- Any great transition is always duction by 10 per cent, by improv- ity and increase in pressure, mak- subject to uncertainty and obscu- ing asset reliability. Another option ing it easier to extract. Above the rity, but also hopes for tomorrow. is to implement initiatives that off- miscibility pressure, CO2 is highly There is currently a continuous tor- set emissions by tapping into natu- soluble in crude oil, causing the oil rent of initiatives, formulating into ral carbon sinks, including oceans, to swell out of the rock pores, caus- a river of change. As always, a few plants, forests, and soil; these re- es the oil viscosity to reduce, and will lead the way, and we must re- move GHGs from the atmosphere, results in the creation of a miscible member that: “Those who are crazy and reduce their concentration in flood front that sweeps through enough to think they can change the air. Plants and trees, for exam- the reservoir, displacing the crude the world are the ones that do”. ple, sequester around 2.4 billion oil towards the production well. (Being a paper presented at the Ni- tons of CO2 a year. It is estimated that between 50 gerian Oil and Gas Technical Confer- Decarbonisation could be con- and 70 per cent of the reservoir ence 2021 (NOG) at the International sidered a blessing in disguise, as it proven volumes can be recovered Conference Centre, Abuja on July 6, also provides potential value-accre- through the application of EOR. In 2021.) tive business opportunities like car- a study conducted at the University bon capture for sale and storage of Texas, it was demonstrated that, Dr. Wisdom Enang (FNSE, CEng) via CO2 enhanced oil recovery, to depending on strategic operational is an Operations Engineering Lead the upstream players. Converting choices, the incremental oil pro- with ExxonMobil Nigeria, and is these value-accretive opportunities duced from CO2-EOR can achieve in charge of the operations and to a commercially viable and sus- a net carbon negative status for maintenace of 24 shallow water oil tainable business would definitely most of the life of the operation. and gas assets. necessitate the collective collab- The mechanisms that trapped

38 Column 07:21 WOMEN’S CORNER

POP Colour Checks

–Aisha Saleh

atterns are excellent ways new things. Who knows what to add some life and fun to trends you might discover you Pyour wardrobe, and mixing love by giving it a trial? patterns are even better. So, if There is a multitude of ways you have been sticking to basic you can wear pop colour checks, block colours for the past ten no matter your preferences. You years, now is the time to be bold can style them up or down, and and embrace checks. instantly turn heads wherever Checks are some of the latest you want. trends to pop up in the fashion But make sure that your pat- scene, this retro-inspired style is terns complement, rather than a cute way to brighten up your clash. To do so, try choosing regular ensemble, and it is easy one focal design, and accent- to work it for every season. It ing your outfi t with another, or never hurts to try something opting for two patterns, with new, that will bring a bright new matching or complementary hue that stands out from your colour palettes, and complete usual neutral palette. the look with sneakers, sandals We all know that being able to or heels, depending on the occa- dress chicky and stylish every sion. day is a skill that can be diffi - It is good to have fun exper- cult to master. It is more diffi - imenting with different fabrics, cult when it comes to dressing colours, and embellishments, stylishly, organising, and editing while maintaining the confi - your closet, sometimes. dence of knowing that you al- Most often, we always ask ready look fantastic. If you are ourselves, “how we can create not sure of what clothes work a great outfi t”. If you cannot best for you, why not give it a try, even see what you have, there- and see how fun it is going to be fore, getting to know your body bringing a look to your closet? shape is key. It helps a lot to I am very sure that these make decisions on types, co- handy tips will revolutionise the lours and styles that works for way that you dress on a daily you. basis, whether you are heading If most times you cannot to work, or going out for fun with identify that, just consider friends and families, or on dates. yourself a petite pear shape. These advice gems are sure to Highlight your shoulders, and see you looking fashionable and spotlight on your shape and fa- fabulous every time you step vourite features. out of the house. Great style is built from trying

39 Industry 07:21

JULY SHORT TAKES

Niger Delta: Peace, key to economic Valuechain visits DPR Major oil marketers want to lift petro- development – Sylva The editorial management of Val- leum products from Dangote Refinery Minister of State Petroleum Re- uechain Magazine, led by the Publisher, The Major Oil Marketers Association sources, Chief Timipre Sylva, has Musa Bashir Usman, paid a courtesy of Nigeria (MOMAN) has indicated inter- urged Niger Delta youths to be at the visit to the Director/CEO, DPR, Engr. Sar- est in lifting refined petroleum products vanguard of promoting peace in the ki Auwalu, to intimate him on the maga- from the soon to be completed $15 bil- region to be able to attract investment zine’s 4th Valuechain Lecture & Awards. lion Dangote Refinery, Lagos State. and developments. 16,000 young Nigerians die yearly to Lawan urges lawmakers to track PIB PIB: Host communities to receive oil pollution – Akpabio implementation $500m annually – Senate The Minister of Niger Delta, Sena- President of the Senate, Dr. Ahmad Nigeria’s parliament, on July 1, tor Godswill Akpabio, has stated that Lawan, has urged lawmakers to track, 2021, voted to approve a long-delayed about 16,000 young Nigerians die an- monitor and supervise the implemen- oil and gas law that aims to attract nually due to oil pollution. tation of the Petroleum Industry Bill new foreign investment to the OPEC (PIB) after assent by President Mu- country’s petroleum industry. Nigeria losing 200,000bpd to pipeline hammadu Buhari. damage – Minister Oil producing states enmeshed in Nigeria is losing an average of Nigeria backs OPEC+ oil supply Boost N1.6trn debt 200,000 barrels of oil per day – more to keep prices affordable Despite receiving a huge allocation than 10 per cent of its production – to Nigeria, Africa’s largest crude oil in the sum of N424 billion in 2020 and pipeline vandalism, the country’s In- producer and an OPEC member, is much more in previous years as their formation Minister, Alhaji Lai Moham- backing an easing of output cuts by share of 13 per cent derivation prin- med, said. the producer group to push prices ciple, eight oil-producing states in the lower and more affordable for key con- country are still heavily burdened with We’ve recovered $100m of undis- sumers. total debt of N1.667trn. puted obligations – NCDMB The Nigerian Content Development Kano govt, NNPC, GACN sign MoU on Nigeria’s oil output falls by 6.32% and Monitoring Board (NCDMB) has gas project over 3 months said that it has recovered about $100 Kano State Government has signed Crude oil production in Nigeria fell million of undisputed obligations of a Memorandum of Understanding by 6.32 per cent to 1.344 million bar- remittances accruable to the Board be- (MoU) with the Nigerian National Pe- rels per day in May, 2021 compared to tween the year 2010 and 2017. troleum Corporation (NNPC) and Gas 1.429 million barrels per day record- Aggregation Company Nigeria (GACN) ed in April 2021, latest data from the TotalEnergies committed to Nigeria’s Ltd. on the Ajaokuta-Kaduna-Kano Organisation of Petroleum Exporting growth, invests $60bn (AKK) pipelines gas project. Countries (OPEC) has shown. Victor Bamidele, Deputy Managing Director, Deep Water District, TotalEn- Barkindo pays glowing tribute to Presidency hails NNPC spokesman, ergies, has said that the company has Iran’s Zanganeh Obateru, on professionalism invested over $60 billion in exploration The Secretary-General of the Or- The Special Adviser to the Presi- and other projects in Nigeria. ganisation of Petroleum Exporting dent on Media and Publicity, Mr. Femi Countries (OPEC), Mohammad Sanusi Adesina, has poured eulogies on the PIB: Mischief makers bandying wrong Barkindo, has paid glowing tribute to Group General Manager, Group Public information – Senator Urhoghide the recently retired Bijan Namdar Zan- Affairs Division of the NNPC, Dr. Ken- Senator Matthew Urhoghide, repre- ganeh of Iran for his historic contribu- nie Obateru, on his recent Fellowship senting Edo South senatorial district, tions to OPEC during his long and illus- Award, describing him as an accom- has said some people, out of igno- trious career as the head of delegation plished professional in the field of Pub- rance or mischief, were propagating of Iran to OPEC. lic Relations. wrong information different from the facts and provisions of the new- Niger Delta leaders list gains of PIB NOGEC: Bequeathing legacy of Bu- ly-passed Petroleum Industry Bill (PIB) Niger Delta leaders have highlight- hari’s administration – DPR Boss by the National Assembly. ed the gains of the Petroleum Industry The establishment of the National Oil Bill (PIB), declaring the passage, by the and Gas Excellence Centre (NOGEC) by Group commends NNPC COO’s per- 9th Nigeria National Assembly, as a President Muhammadu Buhari at the formance in 1 year pointer to Nigeria’s path to greatness beginning of this year was described as Arewa Youth for United Nigeria and development. a bequeathing legacy that has placed Initiative has commended the Chief Nigeria as a new bride of oil and gas Operating Officer (COO) Upstream of NNPC, partners to rake in over $760m investments destination in the world, Nigerian National Petroleum Corpora- revenue from OML 130 gas supply the Director/CEO of the Department of tion (NNPC), Engr Adokiye Tombomi- agreements Petroleum Resources (DPR), Engr. Sarki eye, for his exemplary performance in The Nigerian National Petroleum Auwalu, has said. office within the past 12 months. Corporation (NNPC) and its partners

40 Industry 07:21

over $1.8 billion) to oil-producing com- munities in Niger Delta as compensa- tions for oil spills and land encroach- ment, an independent data indicated.

DPR bags Excellence Award at 2021 NOG The Department of Petroleum Re- sources (DPR) has bagged the Excel- lence Award at the Annual Nigeria Oil and Gas (NOG) Award Ceremony. The award was received by the Chief Exec- utive Officer and Director, DPR, Engr. Sarki Auwalu.

Downstream: DPR suspends Petro- leum Taskforce Team The Department of Petroleum Re- sources (DPR) has suspended the OPEC scribe, HE Mohammad Sanusi Barkindo with President Muhammadu operations of its task force team mon- Buhari at the Aso Rock Villa during the latter’s visit itoring activities of the nation’s down- in the Oil Mining Lease (OML 130) the Petroleum Industry Bill (PIB). stream sector. Production Sharing Agreements (PSA) and Production Sharing Contract Attacks on oil, gas facilities drop Abdulrazaq Isa emerges new chair- (PSC) are set to earn over $760 mil- from 623 to 94 in 7 years – Sylva man of IPPA lion from fresh Gas Supply Purchase The Minister of State for Petroleum, Mr. Abdulrazaq Isa, a general man- Agreements (GSPAs) and Gas Entitle- Chief Timipreye Sylva, has declared ager with Waltersmith Petroman Oil ment Agreement (GEA) executed at that attacks on oil and gas facilities Limited, has been confirmed as the the NNPC Towers. across the country had reduced sig- new chairman of the Independent Pe- nificantly since 2014. troleum Producers Group (IPPG) with Nigeria has 42bn tons of bitumen de- effect from June 29, 2021. posits – VP Port Harcourt Refinery to operate at The bitumen belt across Ondo, 90% capacity after rehab – NNPC OPEC scribe extols virtues of Valuec- Ogun, Lagos, and Edo states has over The Port Harcourt Refining Compa- hain Magazine 42 billion tons of deposits, being the ny (PHRC) will operate at 90 per cent Mohammad Sanusi Barkindo, second-largest in the world and al- capacity after the ongoing rehabilita- OPEC Secretary-General, has, in a most twice Nigeria’s oil reserves. tion of the refinery, the Nigerian Na- Goodwill Message at the 4th Valuec- tional Petroleum Corporation (NNPC) hain Annual Lecture and Awards, Mon- NNPC commits to ensuring energy has said. day in Abuja said that the 4th Annual sufficiency, wealth creation for Nige- Lecture and Awards was an extremely rians Fuel subsidy will be removed after timely event. The Nigerian National Petroleum Buhari signs PIB – Sylva Corporation (NNPC) has reiterated its Fuel subsidy in Nigeria will end DPR’s Auwalu wins Valuechain 2021 commitment to ensuring effective stew- when President Muhammadu Buhari CEO of the year award ardship of the nation’s hydrocarbon re- signs the Petroleum Industry Bill (PIB), Aside being the Lead Speaker, Engr. sources to guarantee energy security according to the Minister of State for Sarki Auwalu, Director/Chief Executive and drive wealth creation in Nigeria. Petroleum Resources, Chief Timipre Officer of the Department of Petro- Sylva. leum Resources (DPR), clinched the Nigeria will experience massive de- ‘Chief Executive Officer of the Year’ velopment in gas infrastructure by Nigeria’s 50 years in OPEC: Barkindo Award by the Valuechain Magazine, 2024 – Kyari hails Buhari during media organisation’s 4th Lec- The Group Managing Director The Secretary-General of the Or- ture and Awards. (GMD) of the Nigerian National Petro- ganisation of the Petroleum Exporting leum Corporation, Mele Kyari, has said Countries (OPEC), HE Mohammad Cooking gas price skyrockets by that the Corporation is galvanising Sanusi Barkindo, has described Pres- 22.2% massive investments in the gas sector ident Muhammad Buhari as an OPEC Efforts by the Federal Government to meet the energy needs of the coun- veteran whose leadership brought to- to deepen the use of Liquefied Petro- try and for exports. gether OPEC and 10 non-OPEC oil pro- leum Gas (LPG), popularly called cook- ducing countries. ing gas, through the National LPG Ex- OPEC congratulates Nigeria PIB pas- pansion and Implementation (NLEIP), sage Oil Spills: Niger Delta communities appears to have suffered a major set- The Secretary General of the Organi- ‘Get’ over N836bn in 7 Years back as the price of the commodity sation of the Petroleum Exporting Coun- In the last seven years, various has risen by 22.2 per cent. tries (OPEC), H.E Dr. Mohammad Barkin- courts have awarded the sum of do has congratulated Nigeria for passing N836.318 billion (N98.318 billion and

41 Entertainment 07:21 Nigerian Celebrities Who Made Controversial News in H1 2021 ― As Entertainment Industry Mourns Sound Sultan –By Adeniyi Onifade

igerian celebrities, in the first utive days, and acknowledge that saga, and they have not spared the half of the year, have been in the allegations are false, misleading actor of vast credit and politician who Nthe news for different reasons. and entirely defamatory of client’s still finds time to do some acting. However, most of them were in the character’’ within 14 days. Most of those trolling the actor news for the wrong reasons as they Ojo also demanded that the re- have hilariously been blaming him were enmeshed in different contro- traction and public apology must for their personal issues and nation’s versies. further be circulated, and published woos. Some have even knocked him Here are some of the celebrities by select media outlets. In addition, for being responsible for the Bill and that made headlines due to contro- Ojo is demanding that Fabiyi ceases Melinda Gate’s break-up in their rela- versies: and desists from making further, ad- tionship. Observers say that the actor ditional or fresh defamatory publica- has had more than a taste of cyber Yomi Fabiyi & Iyabo Ojo tions against across social or print bullying within the last two years. he alleged child molestation case media platforms. It would be recalled that the ac- Tinvolving notable Yoruba comic The actress is also demanding tor walked into the waiting hands actor, Olanrewaju Omiyinka, who is that “N100 million must be paid as of Twitter trollers in the heat of the popularly known as Baba Ijesha, has damages for the unjustifiable injury #EndSars protests, where he pitched pitched two notable actors, Yomi Fa- and losses” occasioned by the de- his tent with the government, and biyi and Iyabo Ojo, in a fierce battle. famatory publication. also described Nigerian youths in a Ojo, who has been vocal in con- But in a swift response to the session at the Lagos State House of demning the alleged act of child demand notice, Fabiyi maintained, Assembly as “children”. molestation, had via her Instagram during an Instagram live session, Desmond even got plenty strokes page, published a letter signed by her that he could not be served a legal for his comment on the floor of the lawyers, demanding N100 million as letter via social media. House. payment for damages caused by Fa- Fans are waiting to see who blinks But the most recent round of mer- biyi’s ‘defamatory publication’ during first between Fabiyi and Iyabo Ojo. ciless trolling he got was when he a protest that Fabiyi held in Lagos reportedly declared, in an interview, State on Tuesday to demand that Desmond Elliot that he was a product of ‘godfather- ‘Baba Ijesha be granted bail’. otable Nollywood actor and La- ism’. Though still trending, the troll- Recall that Baba Ijesha, who is Ngos State lawmaker, Desmond ers are likely to cease-fire since the popular amongst fans of Yoruba Olusola Elliot, was in the news for the actor has come out, following this movies, became a news item when wrong reasons recently. The actor be- fresh face-off, to assure his fans he was accused of molesting a came a subject of merciless trolls on that he will improve and do better in 14-year-old foster child of the come- social media when a Twitter user, @ areas that they think he has not per- dienne, Damilola Adekoya, otherwise victorisreal, advised another Twitter formed well. known as Princess. Fabiyi had led user, @dearolaa, to head to Surulere some people to stage a protest at (Desmond Elliot’s Constituency) to Uche Ogbodo the premises of Panti Police Station flush a ‘10k ring’ in ‘Desmond Elliot’s amous Nollywood actress, Uche, in Yaba, Lagos demanding that Baba Toilet’, after @dearolaa had com- Falso made headlines recently. Ijesha, who had been under the cus- plained that her friend “cut off an en- First, was that she was expecting her tody of the police for allegedly mo- gagement because her boyfriend pro- second child, and the next gist that lesting a minor, be granted bail. posed with a 10 thousand naira ring”. trended was an exposition on the ‘the However, Ojo’s worry was with a It would be recalled that Elliot had baby daddy’ of the actress who has defamatory publication that she al- built a toilet for his constituents in been missing in action, particularly leged that Fabiyi made on his Insta- 2020. However, the commissioning mainstream movie run lately. gram handle and during the protest of the toilet was greeted with rounds The actress trended, and has con- by Fabiyi. The pretty actress had, of merciless and hilarious trolls tinued to trend since a video show- through her lawyers, demanded a across social media platforms. ing the actress kissing a young mu- publication of full retraction of the Twitter users capitalised on this sical artiste believed to be her ‘baby said defamatory publication “on his exchange by @dearolaa and @vic- daddy’ surfaced on the Internet. Instagram handle for seven consec- torisreal to recall the infamous toilet The viral video, which showed Uche

42 Entertainment 07:21

and the artiste, Bobby Maris, in an mourning, following the death of The mother of three was held by intimate show of affection, was re- popular Nigerian musician, Olan- two women who comforted her. At portedly shared by celebrity blogger, rewaju Fasasi, popularly known as a point, she was also spotted laying Stella Dimoko Korkus, on her social Sound Sultan, who has since been on her late husband’s coffin, while media handles. buried amidst tears from scores of crying bitterly before it was finally Although the actress has kept her sympathisers. lowered into the grave. relationship with Bobby private and The 44-year-old singer was bur- RMD, Kate Henshaw, Wale Ojo, would not reveal the identity of her ied in New Jersey, U.S. on Sunday Tunde Ednut, Seun Kuti, and many spouse no matter the pressure, fans (the same day he died), according to others have expressed shock at the have observed that Uche and Bobby Muslim rites. untimely passage of their friend and have been exchanging affectionate The popular singer’s death was colleague. comments on their social media announced in a statement on Sun- handles. day, July 11 by his family. Background In a post he shared on New Year His relative, Kayode Fasasi, who Sultan was a singer, songwriter, Day, the artiste posted a photo of signed the statement, said Sound and recording artiste, who was re- himself with the caption ‘Happy New Year My People, From Us All”, and straight up in the comment section of same post, Uche reacted thus: “Happy New Year Handsome”, ac- companied by several love emojis. In yet another post that Bobby shared, Uche commented thus: “Thanks Baby”, accompanied by several love emojis. So, it took the viral video for fans to conclude that it was more than those affectionate comments laced with love emojis between the fair skinned actress and the young artist.

Omotola Jalade Ekeinde hile some of her colleagues Wmade headlines for the wrong reasons, Nollywood diva, Omotola, made headlines for finally opening the doors to her well-equipped pro- duction lot, Double Doors Studio, for use by creatives and professionals. Although the official commission- ing of the studio held earlier in the year, Omo T, as the actress is fondly Late Sound Sultan called by fans, shared pictures of the studio located in the heart of Lekki. Sultan passed on after a “hard-fought garded as one of the pioneers of hip- Promoted as a multipurpose de- battle” with the Angioimmunoblastic hop music in Nigeria. velopment built for ‘work, live and T-cell lymphoma (AITL), a rare form of His showbiz career began in the play’, the actress disclosed that the non-Hodgkin lymphoma. 1990s when he hosted shows to studio boasts of facilities such as He is survived by a wife, three chil- raise money for studio sessions. a large studio or hall space for any dren and his siblings. By 1999, he had won numerous set, large kitchens, offices, bedroom, Also, his colleague, Lamboginny, local talent-hunt shows, and re- boutique, hotel, including bunked who is now based in the U.S., hosted leased his monster hit, “Jagbajantis” hostels, a suite, bar, large sit-out ter- an Instagram live video, showing the in 2000. race and conference rooms. burial ceremony of the late Jagba- After independently releasing oth- “The studio was curated special- jantis crooner. er singles, and featuring in hit songs ly with creative and professionals The family of the late singer and of other artistes, Sultan was signed in mind. Our super power is that his friends, dressed in black outfits by Kennis Music. we can customise your own space as they mourned his sudden pass- More than 20 years after he when you stay with us,” she said. ing were present. Singer, Olamide, launched his music career, the ace was also spotted at the funeral. musician remained relevant in the Sound Sultan His wife, Farida, was completely industry even in death. eanwhile, the whole entertain- inconsolable as she witnessed her He released his eighth album, ‘8th Mment industry was thrown into husband’s burial. World Wonder’ in May 2020.

43 Property 07:21

Federal Executive Council meeting in session

How FCDA’s Land Swap Scheme Can Be Productive –By Danlami Nasir Isah he Federal Capital Devel- Senator Bala Mohammed-led the direction of the physical de- opment Authority (FCDA), administration, as the FCT was velopment of the city. Tofficially saddled with the specifically designed to remedy The House of Representa- responsibility of developing and the infrastructure deficit in the tives had argued that, if the pro- maintaining structures in the federal capital through swap- gramme was allowed to mate- Federal Capital Territory (FCT) is ping lands with private inves- rialise, it would only succeed in set to commence its land swap tors, who would, in turn, provide creating development islands scheme. the necessary infrastructure. and brazen evidence of uncoor- This follows the Federal Ex- Under the scheme, greenfield dinated development. ecutive Council (FEC) approval lands are granted to real estate Specifically, the land transac- for the resumption of the FCDA developers who would provide tion began in 2014, and became land swap initiative. infrastructure such as roads, controversial. The planned However, even though some electricity, potable water, drain- phases and pilot project, which estate developers and valuers ages, sewer lines, and commu- were supposed to have com- are of the opinion that years of nication ducts to residents with- menced at Katampe District, suspension have cast a doubt out any financial or technical were halted, after a registration on the programme, and deval- demands on the government. fee of N350 million, each, ac- uation of the naira will escalate However, the programme suf- cording to reports then. the cost of infrastructure, many fered a setback after the Nation- An estate surveyor and valu- also believe that a new start will al Assembly faulted the scheme, er, Musa Ibrahim, said the most boost housing delivery, and at- saying the initiative was a nega- critical factor that stalled the tract foreign investors. tion of the provisions of the orig- project was politics, accompa- The initiative, worth about inal Abuja Master Plan, as well nied by lack of finance. He said N1 trillion, commenced under as a misplacement of priority in that, on the economic front, at

44 Property 07:21 the beginning, the minimum flation has gone up, and equip- any money. There were no sharp anticipated average investable ment is needed to carry out practices. It was only the transi- cost to be borne by the inves- infrastructure? Government tion from one administration that tors per district was about N40 should look into it before em- stalled the scheme. We had 26 billion, each. barking on the exercise. firms identified as investors, but “On finance, imagine the vol- “The starting point matters a only seven signed the pact,” Zu- ume of investible capital re- great deal. It could be profitable wedu said. quired, and ask whether our to the public, or for individuals. The FCT Director of Lands, commercial banks can afford Therefore, stopping it halfway Adamu Jibrin, said the past gov- granting such facilities to inves- has become a serious issue. This ernment started the project. tors to be recouped within a four- means, we will start the exercise “When we came, we set up a year tenor as envisaged by the afresh. We hope there will be ac- committee to study the whole contract,” he said. countability and transparency. exercise to make more inputs. He said investors took note of “The Senate Committee on We want to do it in the best in- the political risks of the project FCT stalled the exercise, after a terest of the government, real in Nigeria, especially where tran- public hearing. When the Com- estate developers and the public. sitions are likely, adding that the mittee conducted a check on “After that the committee government had to take a second all the processes, issues were made adjustments to correct the look at the project, because it was raised. We thought the money mistakes made. The idea is for the Peoples Democratic Party spent was not accounted for developers to provide the infra- (PDP) government that initiated it. when it was suspended. The structure in the different districts, A member of the Real Estate good thing is that the President such as road networks, water, Developers Association of Nigeria has approved the commence- electricity and other amenities. (REDAN), Malam Ahmed Goringo, ment of the project. “The territory has sizable said the land swap in FCT was “The government has studied lands, and we are ready to offer coming a bit late – seven years it and found out that land swap districts or half of the district to after the project was initiated. is a profitable venture, and it will interested developers, provided Explaining further, Goringo reduce kidnapping and insecuri- they fulfill certain criteria, such noted that the exchange rate ty, as well as open up the capital as bank bonds and capacity was N150 to $1 at the time it city. People will rush to Abuja for to move into sites for develop- started, when the FCT request- land. The FCTA has done a good ment. It will be a win-win situa- ed investors to pay a certain thing,” Goringo explained. tion,” he added. amount of money. The Managing Director, Sys- According to him, the Nation- “We understand that three or tem Property Development Con- al Assembly investigated the more companies had paid their sortium Limited, Sanni Zuwedu, previous land deal, and ordered registration fee to move to sites. while addressing the media, a stoppage because of alleged Today, one dollar is going for al- said property developers would irregularities. But now the gov- most N500. benefit from the land swap, as it ernment has realised the need to “So, it will be very costly for would attract foreign investors, go into public private partnership foreign investors to invest in the and expand new horizons in the arrangement to develop the land. capital city. Whom are they going built industry, as well as offer With the scheme said to kick to sell the land to, because goods mass housing to residents. start soon, many residents of and services have gone up? “The arrangement will move the Federal Capital Territory “At what value are they going finance from the public to the pri- (FCT), as well as investors are to put the land now, because in- vate. You see, no investors gave waiting to see how it pans out.

The government has studied it and found out that land swap is a profitable venture, and it will reduce kidnapping and insecurity, as well as open up the cap- ital city. People will rush to Abuja for land. The FCTA has done a good thing,” Goringo explained.

45 Column: Health Rendezvous 07:21

Coverage, Compliance of COVID-19 Vaccination Drive

–Ibrahim Suleiman Ph.D.

n Monday, July 26, 2021, the Nigeria received nearly 4 mil- organisers of the Tokyo Olym- lion doses of Oxford/AstraZeneca Opics 2020 reported 16 new COVID-19 vaccines in March 2021. COVID-19 cases. That brought the Records have shown that these total number of Olympics-related vaccines were exhausted on July positive COVID-19 tests to 148. It 8, 2021. The country’s officials are is a situation that has crashed the awaiting the delivery of another dreams of many vaccinated Olym- 3.94 million doses of Astrazeneca pic athletes. vaccine in late July or early August, The above situation is a worri- nated people have extremely low 2021. In addition, the Chinese gov- some one, which has raised ques- chances of hospitalisation, follow- ernment donated 470,000 doses tions in the minds of so many ing delta variant infection. of COVID-19 vaccine to the govern- people. How come vaccinated in- The only way to bring the pan- ment of Nigeria on July 23, 2021. dividuals get infected? Why should demic to an end is to ensure mas- Thus kick-starting another round of one take the jab, if one could eventu- sive vaccination campaigns in all vaccination in the country. ally get infected? countries around the world. Even though the country is ex- It is not surprising that some According to data collected by pecting more deliveries, especially people tested positive for the novel Bloomberg, more than 3.89 billion the recently procured 29.85 million coronavirus, despite being vaccinat- doses of COVID-19 vaccine have doses of Johnson & Johnson vac- ed earlier. Small percentage of vac- been administered across 180 cine, it is pertinent to note that the cinated people will surely test posi- countries as of July 26, 2021. This total number of vaccines expected tive, because vaccines are not 100 is only enough to vaccinate about to be administered between now per cent effective against the virus. 25 per cent of the world population. and the end of 2021 will not be In addition, vaccination does not Interestingly, countries such as the enough to cover 50 per cent of the necessarily protect against infec- Maldives, China, US, UK, Canada, Ja- eligible population. tion. It, rather, protects against seri- pan, Belgium, Qatar, Bahrain, Malta This poses the risk of pandemic ous illness and hospitalisation from and Israel have recorded over 50 per of the unvaccinated. COVID-19. Coronavirus infection in cent vaccine coverage, while coun- Records have shown that of the vaccinated people may present with tries such as Bangladesh, Egypt, nearly 4 million administered doses mild COVID-19 symptoms, or may Vietnam, Ethiopia, Angola, Kenya, in Nigeria, only 125 cases of severe even be asymptomatic. Uganda, Iraq, Mozambique, Ghana, adverse events, following immuni- A recent study reported that fully Niger and Cameroon have recorded sation, were reported, while 13,663 vaccinated adults are 94 per cent less than 5 per cent coverage. This mild to moderate cases were re- less likely to be hospitalised with shows uneven access to vaccines. corded. This confirms that the vac- COVID-19 than people who are not High income countries are getting cine is relatively safe. Furthermore, vaccinated, while partially vaccinated vaccinated more than 30 times fast- the adverse effects are rare and adults are 64 per cent less likely to be er than low income countries. treatable. However, the recently pro- hospitalised. These numbers do not Despite the government’s effort cured Johnson & Johnson vaccine lie. Only a handful of vaccinated peo- on vaccination, Nigeria has only has been associated with increased ple may require hospitalisation. been able to administer about 3.9 risk of developing Guillain-Barré syn- The existing vaccines have million doses of the vaccine, thereby drome – an autoimmune reaction in shown about 65 per cent efficacy recording a coverage of less than 2 which the immune system attacks against the new delta variant. This per cent. This low vaccination rate the nervous system. Yet, this should variant is becoming predominant is not as a result of resistance or not deter one from getting vaccinat- throughout the world, and more in- non-compliance. It is, rather, due to ed, because the benefits of vaccina- fectious. Despite the vaccine’s lower insufficient vaccines that are being tion outweigh its risks. efficacy on the delta variant, vacci- delivered into the country.

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Payment should be made to MB DOT COM Media Associates, Access Bank Plc, Account No. 007-4244-967. Terms and conditions apply. Column: Rolling Wheels 07:21

Surviving Nigerian Roads with Reliable Automobiles

–Teddy Nwanunobi igeria is a tough place to In this context, I want to say that sure you would prefer to do one’s stay. But you can always commuting or movement means own thing by getting the best com- Ntrust Nigerians to be twice working or doing a business at a muting car that one can afford. as tough as the country. This is place that is far away from one’s Every Nigerian that visits a why they have always survived home. To make the daily long jour- car dealership is expecting to living in this country. neys, and not disappoint one’s em- purchase his/her dream car at Movements in the country can ployer, one requires the best cars a discount price. But fraudsters be very difficult for the citizens, for commuting. have also decided to exploit this especially in the urban areas. For It is an understatement to say opportunity as a means of de- instance, there is, arguably, a be- that Nigerians are workaholics. frauding their fellow Nigerians. lief that the most difficult thing an They also love the hustle and However, Nigerians are becom- Abuja resident needs to cope with bustle of business and work. This ing wiser as the days go by, and is not owning an accommodation. means that they require constant they have come to realise that the The second is not owning a vehi- mobility. only way to contact a genuine car cle to aid one’s daily movements. Everybody in Nigeria is seeking dealer or seller is via credible auto It is on the above that the peo- for comfort, either at home or on websites, or by visiting the lots of ple of this country, like others in the roads. As a result of this, an dealerships. the world, need good vehicles for average Nigerian, who can afford It is a well-known fact that not all commuting to work and vice versa. their comfort on the roads, would commuting vehicles that can with- When it comes to selecting the best prefer to buy reliable commuting stand the Nigerian harsh weather cars that are perfect for the pockets cars for their movements. and roads. For these reasons, one of the citizens, their climate, and Naturally, the best cars for em- needs to go for tested and reliable roads, a lot of factors are needed to barking on long distances should cars that can serve one well. be put into consideration. be the brands or models that are Below is the list of some re- While some of these cars are accustomed to the people of the liable vehicles for one’s move- expensive, others may not last country. ments in Nigeria: long enough on the rugged Nige- Of course, one can decide to go rian roads. Therefore, the demand on a public transport, and use any Toyota Corolla: If one is used to for the cheap but reliable vehicles of the best commercial vehicles for the Nigerian roads, one would un- for daily movements in the coun- one’s movements. However, like derstand that the Toyota Corolla is try is always increasing. most Nigerians, ultimately, we are a known car brand in Nigeria. For many years, this model of Toyota has been winning the hearts of most Nigerians. This is because the car is superbly fuel-efficient, durable, and can withstand the pressure of driving in this country and its roads. This puts this car as one of the best cars for private movements in Nigeria. The Toyota Corolla in Nigeria commonly comes in a four-door sedan design. Fuel economy: Its fuel econ- omy ranges from 10Km/L and 13.9Km/L.

48 Column: Rolling Wheels 07:21

Movements in the country can be very difficult for the cit- izens, especially in the urban areas. For instance, there is, arguably, a belief that the most difficult thing an Abuja resident needs to cope with is not owning an accommoda- tion. The second is not owning a vehicle to aid one’s daily movements.

Maintenance routine and spare parts availability: Since many people prefer to use the Toyota Corolla for their regular activities in this country, mechanics and spare part dealers have made the maintenance and repair service available and accessible in every location across the country.

Honda Civic: Apart from the Toyota Corolla, Nigerians also prefer to drive the Honda Civic a lot. This model of Honda is suit- Hyundai Sonata: As commut- the most fuel-efficient cars for able for the Nigerian environment, ing vehicles go, one can do a lot commuting in the country. and whatever one’s commuting worse than the Hyundai Sonata. One can go ahead to check out hours are, one will find the Civic a This brand of Hyundai is afford- the following cars: dependable ally. able, and it can withstand the Ni- Kia Forte: This list could never Fuel economy: Generally, the gerian environment. be complete without a brand from Honda Civic is economical when Fuel economy: Its fuel econ- Kia. The Kia Forte represents fuel it comes to fuel management. Its omy is estimated between the economy and affordability. Many fuel economy ranges from 12.3 range of 8.3 Km/L to 13.9Km/L. feel this car is not as durable as Km/L to 13.9Km/L. Maintenance routine and spare Toyota brands, but what does one parts availability: The Hyundai think? Maintenance routine and spare Sonata spare parts and main- Toyota Avalon: Toyota Avalon parts availability: Just like the tenance can be obtained easily is spacious and just shy of luxu- Corolla, spare parts and mainte- within the country. rious. nance services for the Honda Civ- Volkswagen Golf: With its ic are available in every mechanic Toyota Rav4: This brand of Toyo- small size and great fuel econo- village across the country. ta is common among Nigerians, be- my, the Volkswagen Golf may be cause its accommodating capacity one of the best commuting vehi- Toyota Camry: Looking for is encouraging, and it can withstand cles for students in Nigeria. great commuting solutions? The the tough Nigerian roads. Toyota Camry is another com- Fuel economy: Its fuel econ- Conclusion fortable car for moving around in omy falls between the range of ‘Commuting’ meaning has Nigeria. This model of Toyota is 12.75 Km/L to 15.73Km/L. changed a lot over the years in very popular in Nigeria. Maintenance routine and spare different parts of the world. In Ni- Fuel economy: Its fuel econ- parts availability: The Toyota geria, commuting by train is not omy ranges from 9.3 Km/L to Rav4 spare parts and mainte- yet a reliable option. The list of 13.6Km/L. nance services are common in the best commuting cars men- Maintenance routine and spare Nigerian workshops. tioned above agree with Nigeria’s parts availability: The Toyota climate, and can be driven com- Camry’s spare parts and mainte- Alternative cars fortably on Nigerian roads. One nance are readily available within There are several cars that are may not need to maintain a strict the country. also reliable for movements with- daily routine to make one’s car in Nigeria. Some of them are even last longer.

49 Aviation 07:21 Aviation Sector to Fully Rebound in 2023 – Report

–By Adeniyi Onifade

midst concerns over the ical that governments step up yearly growth of 3.2 per cent be- third wave of COVID-19 their support for more efficient tween 2019 and 2039. IATA’s pre- Aand restrictions of flights operations, and foster an effec- COVID-19 growth forecast for this to some parts of Europe and Asia, tive energy transition.” period was 3.8 per cent. there is something to cheer as the Already, Europe and more than IATA’s Director-General, Willie forecast has shown that the avia- 20 countries have wholly or par- Walsh, speaking on the report, ex- tion sector is set to recover soon. tially lifted travel restrictions for pressed belief that the sector re- This is just as global aviation vaccine passport holders ahead mains very optimistic but needed has estimated that aviation will of the summer travels. governments’ support. make a full rebound return to pre- The prediction forecasts that “We are in the deepest and COVID-19 passenger traffic de- the 2021 global passenger num- gravest crisis in our history. But mand by 2023. bers are expected to recover to 52 the rapidly growing vaccinated The rationale from the projec- per cent of pre-COVID-19 levels population and advancements tion was based on the current re- (2019). In 2022, global passenger in testing will return the freedom covery trend in air travel, coupled numbers are expected to recover to fly in the months ahead. And with the progress made in sus- to 88 per cent of pre-COVID-19 when that happens, people are tainable measures on vaccination levels, and 105 per cent by 2023. going to want to travel. and testing to reduce travel re- By 2030, global passenger “The immediate challenge is to strictions across countries. numbers are expected to have reopen borders, eliminate quaran- The forecast, recently released grown to 5.6 billion. That would tine measures and digitally man- by the International Air Transport be seven per cent below the pre- age vaccination/testing certifi- Association (IATA) and Tourism COVID-19 forecast and an esti- cates. At the same time, we must Economics, showed that people mated loss of two to three years assure the world that aviation’s remain eager to travel in the short of growth due to COVID-19. long-term growth prospects are and long-term. Beyond 2030, air travel is ex- supported with an unwavering To ensure that aviation can pected to slow due to weaker commitment to sustainability. sustainably deliver its social and demographics and a baseline Both challenges require govern- economic benefits as it meets assumption of limited market ments and industry to work in this long-term demand, “it is crit- liberalisation, given average partnership. Aviation is ready. But

50 Aviation 07:21

I don’t see governments moving to India already. All of these are by the League of Airport and Avi- fast enough. markets waiting for Air Peace,” ation Correspondents (LAAC) to “Stakeholders reckoned that Onyema said. brainstorm on the Development the damage of the COVID-19 The medium-range equipment of the Sector. crisis would be felt for years to is the third of 13 expected from The conference, billed for July come, but all indications are that Embraer in Brazil, with another 17 28, 2021, will table management, people have retained their need likely to follow the firm order. policy and regulation issues af- and desire to travel. The Director-General of NCAA, fecting the industry. “Any possibility for borders to Capt. Musa Nuhu, had described While the Ministry of Aviation re-open is met with an instant the arrival of the brand new air- has pledged to be part of the surge in bookings. The most re- craft as a milestone and a para- event, all the aviation agencies, cent example is the 100-percent- digm shift for the industry. including Nigerian Civil Aviation age point spike in bookings from Nuhu commended Air Peace Authority (NCAA), Federal Air- the UK to Portugal when the UK’s chairman not just for investing ports Authority of Nigeria (FAAN), “Green List” was announced in in a new aircraft, but picking the Nigerian Airspace Management early May. right type for the market. Agency (NAMA), Accident Inves- “Vaccination rates in developed “The Embraer aircraft is the tigation Bureau, Nigeria (AIB-N) countries (with the notable excep- right aircraft; it breaks even with and the Nigerian College of Avi- tion of Japan) should exceed 50 low passenger figures. Your main- ation Technology (NCAT), Zaria, per cent of the population by the tenance and operational costs have also shown commitment to third quarter of 2021,” Walsh said. are low. participate. Meanwhile, one of Nigeria’s blaz- “Another factor is that the new Director-General of the NCAA, ing indigenous carriers, Air Peace, aircraft is absolutely great for the Capt Musa Nuhu, in a statement, has confirmed that it will soon environment; it does less noise affirmed its agency’s support and commence flights to the West and less pollution. I am really endorsement of the conference. Coast and London operations. proud that I am DG when this par- “We will continue to partner The airline said the new routes adigm shift is happening. We are with LAAC for a successful out- were motivated by the arrival of all here to work together to grow ing. This is in line with our resolve the third brand new Embraer 195- the industry and we have to give to invest in projects that could E2 jet into its fleet. kudos to the entrepreneur. With- elicit solutions to the myriad of Chairman of Air Peace, Allen out such people, all this will not be challenges confronting air travel Onyema, noted that the Federal possible. We need entrepreneurs in the face of COVID-19 pandem- Government had allotted about like Onyema,” Nuhu said. ic,” Nuhu said. 26 destinations to Air Peace, Air Peace airline, in April 2019, The conference and awards, some of which will become op- placed a record order for 13 brand in its 25th edition, will host over erational with the arrival of more new Embraer 195-E2 planes. The 250 aviation professionals across new equipment. order comprises purchase rights agencies, international and do- He added that Air Peace will for another 17 E195-E2 jets. The mestic airlines, aviation support soon be connecting Duala, Sene- first and second arrived in Janu- services, travel sellers and buy- gal, Congo and the West Coast. ary and March, respectively. ers and captains of the aviation “We are still processing doc- industry. uments for the London route. Key Industry Players to Chairman of the Conference Nigerian Civil Aviation Authority Brainstorm on Aviation Sector Committee, Chinedu Eze, said top (NCAA) will help us push further. Development aviation personalities would de- We have also applied for China Meanwhile key industry players in liver insightful papers on issues and India too. We have already the Aviation sector are gearing to affecting the industry. had seven flights to China and 22 meet at a conference organised

We are in the deepest and gravest crisis in our history. But the rapidly growing vaccinated population and advancements in testing will return the freedom to fly in the months ahead. And when that happens, people are going to want to travel.”

51 Sports 07:21 Tokyo 2020 Games proves Hydrogen Economy as Most Sustainable

–By Saidu Abubakar

t’s no longer news that the the tradition and reputation, as the aftermath of the country’s centre-piece of the corona- a world leader in sustainable tsunami and earthquake of Ivirus-delayed 2020 Olympic technology and a partner to 2011. Games is the new 68,000-ca- countries around the world aim- “This emphasis on reusing pacity Japan National Stadi- ing to end poverty, achieve high materials is one of a few ways um, following Friday’s (23rd level of well-being, and ensure the organizers of this edition of July, 2021) opening ceremony. human security. the Olympics want to lower the Torchbearer, Japan’s tennis star, The Tokyo Games, for the game’s notoriously high envi- Naomi Osaka, lit the cauldron, first time in history of the event, ronmental impact in the wake of thereby ushering in floodgate of has had the stadium (venue) to the pandemic.” hydrogen-powered energy fire- near empty during the opening In a pre-games sustainability works which lightened up the ceremony, having also, fewer report, the Tokyo Organizing sky that could best be described officials than usual, as well as Committee stated thus: “The as procurement from renewable athletes all donning face masks. COVID-19 crisis has served to energy sources and the use of Interestingly, some of the fea- remind humanity of the impor- tradable green certification sys- tures of the Olympic torch are al- tance of a sustainable society, tem. uminium wastes extracted from where the environmental, social, Japan, no doubt, maintains the temporary housing built in and economic dimensions of

52 Sports 07:21 our world exist in harmony.” Mind Body and Green (MBG) identified five sustainable fea- tures including: fewer people, as earlier noted due to a rise in COVID-19 cases in Japan, as well as existing protocols. The most striking are the in- novative materials like the recy- cled torch (lit by torchbearers in uniforms made from recy- cled plastic bottles), and other Olympic mainstays made from repurposed materials. For in- stance, the 5,000 Olympic and Paralympic medals are made from e-waste collected around Japan; the podiums will be 3D-printed from recycled plas- tic, and the athlete’s beds from costs and energy use. All the but also to share with the world recycled cardboard. The card- structures that were built for the approaches taken, obsta- board frame and the polyeth- the games will be repurposed cles faced, and solutions found ylene mattress that sits on top afterward, including the Olympic along the way,” reads the Tokyo of it will also be recycled after Village itself, which is run on hy- sustainability report. the games. In fact, the Olympic drogen power from the Fukushi- Focusing on the use of hydro- committee says that 99% of the ma solar plant. Following the gen power, it was reported that materials used throughout the games, it will become Japan’s the Tokyo Games opens a new games will be reused or recy- first hydrogen-powered town chapter in Japan’s drive towards cled through Japan’s top-notch and hopefully a model for future a sustainable future. waste-processing system. communities. As the most abundant ele- Thirdly, are carbon offsets, “By staging the Tokyo 2020 ment in the universe, hydrogen and in keeping with the Olym- Games as a ‘sustainable society is clean and light. Most impor- pics’ goal to be “climate positive” showcase’ through these initia- tantly, it produces no carbon by 2030, the Tokyo committee is tives, we hope not only to make dioxide emissions and can be working to reduce carbon emis- the Games more sustainable, produced using renewable elec- sions across the entire event. but also to share with the world tricity. Energy analysts believe They’re using renewable energy the approaches taken, obsta- hydrogen offers some of the where possible (some of which cles faced, and solutions found best potential to reduce or elim- will be supplied by a solar power along the way”, organizers said. inate emissions from airlines, plant in Fukushima, the site of Lastly, there is the forest in its shipping and industry. the 2011 earthquake) and op- name, as the International Olym- “With their immense reach erating a fleet of mostly electric pic Committee also committed and visibility, the Olympic or hybrid vehicles. Any unavoid- to planting an “Olympic Forest” Games are a great opportunity able emissions will be offset in of 355,000 native trees in Mali to demonstrate technologies cooperation with Tokyo’s Cap- and Senegal, to protect the re- which can help tackle today’s and-Trade Programme. gion from desertification. Once challenges, such as climate Fourthly, is the smart build- mature, the forest is expected change,” Marie Sallois, Director ing design. Reports say more to sequester 200,000 tonnes of for Sustainability at the Interna- than half of this year’s Olympic CO2 equivalent. tional Olympic Committee, was and Paralympic venues existed “By staging the Tokyo 2020 quoted. before the games. The Olym- Games as a ‘sustainable society “Tokyo 2020’s showcasing of pic committee chose to move showcase’ through these initia- hydrogen is just one example of away from all-new construc- tives, we hope not only to make how these Games will contrib- tion to minimize construction the Games more sustainable, ute to this goal.”

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