FEBRUARY 2021 VOL. 4 NO. 02

C ONTENTS 28 COVER STORY PIB 2020 and the Need for Downstream Gas Infrastructure Fund

INDUSTRY INTERVIEW 5 Nigeria Suffers Production Decline as 32 “PIB, Opportunity to Reposition NNPC” — Nwakwue Rig Count Dips to Six 6 Why Nigeria’s Energy Investment is TRIBUTE Gaining Momentum 34 Ahmed Zaki Yamani, Saudi Arabia’s 8 How Oil States Underutilize 13% Distingushed Oil Minister: 1930-2021 Derivation Funds —Report GUEST COLUMN 10 BOOK PRESENTATION: Buhari Hails 36 PIB 2020: Perspectives on the NNPC Kachikwu’s Quadruple Masterpiece! Limited Provisions 14 NOCs’ Projects at the Mercy of Paris COLUMN: WOMEN’S CORNER Climate Agreement — Report 39 Profi table Ways to Manage Your Finances 16 NCDMB Launches 2nd Phase of Project100 ENTERTAINMENT 18 Consumers, Marketers Groan as LPG 42 10 Nigerian TikTok Producers to Watch in 2021 Prices Skyrocket COLUMN: HEALTH RENDEZVOUS 21 Barkindo Blames COVID-19 for 30% 44 15 Simple Ways of Managing Stress and Anxiety investment Decline in the Oil & Gas Sector MOTORING 46 Hyundai Breaks World Record with new 40 FEBRUARY SHORT TAKES Electric Car

AVIATION 48 High Hopes over FG’s Plan to Unveil New 23 Carrier, Airport Terminals Star of the Industry PROPERTY 50 States Hindering Affordable Housing Delivery — Survey

SPORTS 53 Australian Open Fallout: Serena in Tears Auwalu Ahmed Ilu after Losing to Osaka Chief Executive Offi cer, Ultimate Gas ne interesting issue than ever before requires dominating pub- all hands on deck by all Olic discourse to- the relevant stakeholders day in the country, is the in making this exercise - long-awaited Petroleum the passage of the bill - a Industry Bill (PIB), now success. receiving attention in the It is in consideration National Assembly, for fi - of that that ‘PIB and the nal passage. Need for Downstream The PIB, is being priori- Gas Infrastructure’, is leading our cover for this tized by the federal gov- edition. It examines the ernment because it is the need for the legislators to only a recipe that will un- make provision for Down- lock the hurdles in Nige- stream Gas Infrastructure rian petroleum industry Fund, considering the cur- which for some time now Publisher/Editor-in-Chief rent ongoing gas revolu- Musa Bashir Usman has denied the country tion in the country. billions of dollars of in- Associate Editor This edition is specially Eddy Ochigbo vestment due to the un- packaged with Exclusive Deputy Editor reports, Book Reviews, certainty in the sector’s Fred Ojiegbe investment climate. Global Oil Trends, Avia- Contributors tion, Juicy Columns and Also, the PIB is the le- gideon Osaka gal backing needed to Favour C. Nrabalu Sports. Yohanna Limlong strengthen the institu- As you settled down to Graphic Consultant digest your monthly oil tions governing petroleum Theresa Ogbonna industry in the country and gas tonic, I wish you Business Dev. Executives a pleasant reading experi- that would make it more Adeniyi Onifade (South) effi cient and profi table as Abdulkarim Sani (North) ence. Thank you for keeping a the case may be. At a time Circulation Manager like this when the coun- Danlami Nasir Isah date with us. try is doing everything Online Editor possible to divest from Saidu Abubakar M.B. Usman Photo Editor the current oil-dependent NB. Feel free to send in your views Bashir Bello Dollars and have your say @ economy to a gas-driven [email protected] Legal Adviser economy, Nigeria, more 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 02:21 Nigeria Suffers Production Decline as Rig Count Dips to Six –By Fred Ojiegbe igeria’s rig count dipped to icent rig count of 65, as it recorded show a drop of around 5.7 mb/d. six in January, as against 156, as against 91 recorded the In the non-OECD, the demand de- Nseven in December 2020, previous month. cline was revised lower, m-o-m, raising fears of potential oil pro- by more than 0.1 mb/d leading to duction decline within the period, Balance of supply and demand in an estimated drop of around 4.1 latest data from the Organisation 2021 mb/d. For 2021, positive develop- of Petroleum Exporting Countries, The OPEC data also stated that ments were evident across major OPEC showed. demand for OPEC crude in 2021 economies, specifically in the US, The OPEC data also showed has been revised up by 0.3 mil- supporting demand for petroleum that rig count of OPEC members lion barrels daily, mb/d from the products, particularly industrial increased by five as it showed a previous month to stand at 27.5 fuels. The majority of this positive figure of 323 in January, as against mb/d. This is 5.0 mb/d higher than economic impact is assumed to 318 last December, while world in 2020. Demand for OPEC crude gain traction during 2H21. rig count showed an impressive in first quarter, 1Q21 has been However, this positive outlook plus 110, having posted a figure revised down by 1.1 mb/d, while was counterbalanced by expec- of 1,325 in January as against second quarter, 2Q21 has been tations for a weaker recovery in 1,215, the month before. Among revised up by 0.4 mb/d from the transportation fuels in the first the 13 OPEC members, Saudi Ara- previous month. For third quarter, half, 1H21. COVID-19 infection cas- bia led the pack of gainers with an 3Q21 and fourth quarter, 4Q21, es remain high in regions such as increase of three, having recorded demand for OPEC crude has been the US, Europe and Latin America, 62 in January as against 59 re- revised up by 1.1 mb/d and 1.0 which has led to governments im- corded last December. It was fol- mb/d, respectively, from the pre- posing new lockdown measures, lowed by Iraq which had plus two, vious monthly assessment. When or deepening existing ones, to help having recorded 32 as against 30 compared to the same quarters in control the spread of the virus. Ad- recorded within the period under 2020, demand for OPEC crude in ditionally, a slower rollout of vacci- review. The United Arab Emirate 1Q21 and 2Q21 is forecast to be nations is assumed to further de- (UAE) also had an increase of two, 4.5 mb/d and 11.2 mb/d higher, re- lay herd immunity targets in some having recorded 42, as against 40 spectively. The 3Q21 is projected countries and regions, and the ap- recorded within the period under to show an increase of 3.4 mb/d, pearance of new variants in many review. Angola had plus one, as year-on-year, y-o-y and the 4Q21 is countries has also added to the un- it recorded four, as against three expected to be higher by 1.0 mb/d certainties. Nevertheless, stronger recorded within the period under y-o-y. growth is anticipated from trans- review. Kuwait also had an in- portation fuels in the second half, crease of one, having recorded 29 World oil demand 2H21, based on the assumption as against 28 recorded within the The OPEC report also showed that vaccination programmes will period under review. Algeria led that the contraction in global oil help stem the spread of COVID-19 the loser’s group as its rig count demand for 2020 was revised and that the announced massive declined by three having posted a marginally down by 0.03 mb/d, as stimulus programmes will have a figure of 19 in January, as against better-than expected oil demand positive impact. As a result, OECD 22 posted the previous month. Six data from India in 4Q20 largely oil demand is forecast to grow by OPEC members had their rig count offset weaker-than-expected con- 2.5 mb/d in 2021. In the non-OECD unchanged within the period under sumption in Organisation for Eco- region, oil demand for the year is review. Congo, Equatorial Guinea, nomic Co-operation and Develop- estimated to increase by 3.3 mb/d Gabon, Iran, Libya and Venezue- ment, OECD Americas. Oil demand y-o-y, supported by a rebound in la recorded 0, 1, 0, 117, 11 and 0, is estimated to have declined by economic activities in the main respectively. The United States 9.7 mb/d y-o-y in 2020, to average economies, particularly China, In- had an impressive rig count of 33, 90.3 mb/d. In the OECD, demand dia and Other Asia. Consequently, having recorded 374 in January, as contraction in 2020 was revised world oil demand growth in 2021 against 341 recorded the previous up by more than 0.1 mb/d com- is revised lower by 0.1 mb/d to 5.8 month. Canada also had a magnif- pared to last month’s projection, to mb/d year-on-year.

5 Industry 02:21 Why Nigeria’s Energy Investment is Gaining Momentum

The Hon. Minister of State for Petroleum Resources, Chief Timipreye Silva and Director DPR, Engr Auwalu Sarki after unveiling the Project Commencement Plaque for the New Dpr Headquarters Building in Abuja

–By Gideon Osaka

s calls intensify for di- gising a New Tomorrow,’ added ed to Europe and Asia. versification of Nigeria’s that the positive outlook for natu- Indeed, projections on natu- Aeconomy from oil to other ral gas, which is often termed the ral gas demand in Africa show a sources of revenue, the country’s renewable bridging fuel due to its gradual increase over the next 20 energy investment is also gather- lower carbon footprint, will see years with global peak gas-only ing huge momentum. stronger price and demand recov- expected towards 2035 and 2040. Nigeria’s energy investment ery as countries move to rebuild Already, oil majors are reviewing over the years have received their economies. their portfolios with a view to em- boost especially in the area of gas The report reflected the oppor- bracing transitioning to renewables. infrastructure development. tunities in gas export for Nigeria, With nearly two-thirds of the Subsequently, with the uncer- noting that Africa consumes 63 continent lacking access to elec- tainty trailing oil exports and reve- per cent of its total gas produc- tricity, and most countries depend- nue due to the lingering impact of tion, predominantly for power ing on expensive fuel imports, the pandemic, PriceWaterhouseC- generation, even though the con- there are calls for increased energy oopers (PwC), last month, advised tinent’s gas exporting countries spending and the need to explore Nigeria and other African coun- saw a total decline of more than hydrocarbons for domestic growth tries to be strategic in their energy six per cent in 2020 from 39.7 mil- rather than solely trading such. transition plans, while exploring lion tonnes per annum (mtpa) in Given the global migration opportunities in gas development. 2019 to 37.3 mtpa in 2020. from oil to cleaner fuels, such Noting that much of Africa’s Available data show that Ni- as gas, the Nigerian economy is gas supply growth will come from geria produces 49.3 billion cu- going to become increasingly de- Nigeria, PwC, in its Africa Oil and bic meters (bcm) of gas, with pendent on gas and less depen- Gas Review 2020, themed: ‘Ener- 24.8bcm or 50.3 per cent export- dent on crude oil. The gas sector

6 Industry 02:21

More importantly, for us today, an energy deficient country, over 60 per cent of our country is not electri- fied, the poverty level is very high, extremely challenging. But so much is going on to see how we can reverse this trend. When you combine all these, you will see that as a country of focus today, many things are happening in the energy sector. simply cannot be allowed to fol- of oil and a significant gas - re the DPR in Abuja. low the same path as the power serve. Of course, what everybody He insisted that the government sector as this would have terrible recognises is the oil. looks forward to an enabling en- consequences for our economy. “The reality today is that we vironment to support oil and gas According to the NNPC, de- have a country in excess of 200 businesses across the value chain mand for natural gas by the coun- million people. Seventy per cent for operators, service providers, try’s domestic market, which cur- of this population is well below investors, relevant government rently comprises mostly power 30, with a growing middle class agencies, international collabora- and industries, would rise from and one of the fastest-growing tors, and other stakeholders. 1.5 billion standard feet per day economies in Africa. This is coming few days after (bscfd) to 7.4bscfd in 2027. “More importantly, for us today, President Buhari inaugurated However the Corporation said an energy deficient country, over the National Oil and Gas Excel- it was making plans to plug this 60 per cent of our country is not lence Centre (NOGEC), in Lagos, expected rise in demand with electrified, the poverty level is to boost operations in the petro- seven natural gas projects it very high, extremely challenging. leum sector, Sylva said the Fed- christened the ‘Seven Critical Gas But so much is going on to see eral Government was looking to Development Projects (7CGDP),’ how we can reverse this trend. a new DPR, “for the good of our which would bring in about 3.5 When you combine all these, you stakeholders and the benefit of billion standard cubic feet daily will see that as a country of focus the Nigeria Oil and Gas industry.” (bscfd) of gas in 2021. today, many things are happening The Minister also said efforts Speaking at this year’s Atlan- in the energy sector. are ongoing to ensure the pas- tic Council Global Energy Forum, sage of the Petroleum Industry on the topic, “Delivering Energy Quest to boost revenue Bill (PIB), amid the public hearing Access in the Developing World,” Another area the Nigeria’s en- at the National Assembly, adding the Group Managing Director of ergy investment is targeting is the that the document could become NNPC, Mallam Mele Kyari noted area of boosting revenue to con- a law in a few months. that although the country aligns tribute significantly to the Gross Corroborating the submissions with the push for renewables, it Domestic Product (GDP). of the Minister, Director of DPR, is now focused on using its oil Although the oil and gas sec- Sarki Auwalu, said the Department and gas resources in developing tor tops Nigeria’s revenue gener- is looking to provide necessary infrastructure till when the com- ation and export commodities, support for the administration’s modities become less relevant in President Muhammadu Buhari drive to explore oil across the about 40 years. emphasized and harness more country, adding that the current He disclosed that Nigeria, with resources and derive value from activities across the inland basins significant gas reserves, has ap- the sector going by an order to would receive a boost with the re- proximately $3 to $4 billion proj- relocate the sector’s regulatory location to the seat of power. ects currently ongoing in the sec- body; the Department of Petro- He said the prevailing efforts tor, some of which have reached leum Resources (DPR) to Abuja. would support DPR’s commit- advanced stages, in the country’s The Minister of State for Petro- ment to enabling businesses and effort to rev up production for do- leum Resources, Timipre Sylva, creating opportunities for the in- mestic use and for export. noted the need for holistic coor- dustry to thrive, using a robust “We are not a petroleum coun- dination of the sector to achieve regulatory framework and service try in real sense. It’s agreed that the projected goals while laying instrument. we have the 10th largest reserve the foundation for a new office of

7 Industry 02:21 How Oil States Underutilize 13% Derivation Funds —Report 8 states get N6trn in 10 years with nothing to show

–By Gideon Osaka ecent revelations pertaining to Imo, Ondo and Rivers states received corporate social responsibility. This the utilisation of the 13 per cent N1.28 trillion, N189.277 billion and trend is more prevalent in States Rderivation fund have once again N1.057 trillion respectively. like Akwa Ibom, Bayelsa and Rivers heightened agitations by oil producing Project Lead, ACIOE Associates, States where the IOCs provide wa- communities across the Niger Delta Mrs. Funmi Adesanya, who present- ter, health, electricity supply and ed- States for the funds to be given direct- ed the findings, said the objective ucation facilities pursuant to GMOU ly to the oil producing communities was to ascertain whether the pres- agreements between the IOCS and for effective management. ent underdevelopment and preva- the respective oil producing commu- Valuechain reports that in accor- lent impoverishment in the Niger nities in the aforementioned States,” dance with Section 162 (2) of the Con- Delta States was attributable to the the findings showed. stitution, 13 per cent derivation fund is quantum of the derivation funds “There is also lack of a structured set aside from the federation account paid to the Niger Delta region of Ni- framework for commissioning infra- revenue to help oil-producing commu- geria, requiring an increase in the structure projects across the com- nities tackle infrastructural decay and current derivation percentage of munities, which has left a number of degradation. 13%, or the failure to appropriately oil producing communities with little ACIOE Associates, an advisory utilise the derivation funds received, or no infrastructure,” it added. services firm providing solutions in necessitating the need to revamp Continuing the report said, Strategy and Policy Analysis in a re- the present derivation utilisation “States that manage the derivation cent report found that eight oil-pro- structures in these states. funds through a revenue manage- ducing states received N6.589 tril- She said the study found that a total ment commission like Abia, Delta, lion from the Federation Account sum of N6.587 trillion was disbursed Edo, Ondo and Imo States, have a under the 13 per cent derivation to the Niger Delta States by the federal better focus on the development of principle, between 2009 and 2019. government, as 13 per cent derivation the rural oil producing oil commu- The report made available during funds accruing to these States, from nities in their states. Unlike Akwa a webinar in Abuja, to key officials the revenues generated by Nigeria Ibom, Bayelsa and Rivers States of the National Assembly and aides from oil and gas and resources during who focus more on the develop- to the President, Vice President as the review period. ment of urban areas, who are rarely well as Ministers and obtained by The report, however, noted that oil producing areas.” Valuechain, listed the states that despite the huge fund allocated to benefited from the derivation fund the Niger Delta, the people had min- When enough is not enough as Abia, Akwa-Ibom, Bayelsa, Delta, imal access to electricity as well as Efforts on the part of the Nigerian Edo, Imo, Ondo and Rivers. absence of potable drinking water; state to redress the deep-seated un- In the report titled: ‘Impact of the deplorable health care facilities; and derdevelopment that characterised 13% Derivation Fund in the Niger poor educational infrastructure. the region have led to the framing of Delta’, ACIOE Associates stated that “Most of the basic amenities that special development programmes in the 11-year period, Abia, Akwa exist in the selected oil communities particularly the 13 per cent deriva- Ibom, Bayelsa, Delta, and Edo states are provided by either joint venture tion scheme. Others are the estab- received N55.87 billion, N1.33 tril- partnerships between the NDDC or lishment of institutions such as; lion, N1.388 trillion, N1.16 trillion and Nigerian National Petroleum Corpo- the Niger Delta Development Board N118.85 billion respectively, while ration or IOCs as part of the IOCs’ (NDDB) in 1960, the Niger Delta Ba-

The report, however, noted that despite the huge fund allocated to the Niger Delta, the people had minimal ac- cess to electricity as well as absence of potable drinking water; deplorable health care facilities; and poor educa- tional infrastructure.

8 Industry 02:21 sin Development Authority (NDBDA) While some states had set up oil in 1976, the Oil Minerals Producing commissions to administer stipu- Areas Development Commission lated proportion of the fund, others (OMPADEC) in 1992, the Niger Delta have over the years been lumping the Development Commission (NDDC) 13 per cent derivation fund with the in 2000, and the Ministry of Niger monthly statutory allocation from the Delta Affairs in 2008. federation purse to implement pro- In terms of direct revenue, the grammes and policies. oil-producing states have had their There has been advocacy for the share of national oil-generated rev- fund to be unbundled from the gov- enue increased by 13% since 1999, ernors as the fund is said to be tied when the principle of derivation was to the monthly allocation that is re- reintroduced into the country’s reve- ceived by the governors. nue-sharing formula. Utilisation of the 13 per cent deriva- “These funds are not meant for In Nigerian context, derivation tion fund has become a political tool the state governments. The state means that, in addition to the regu- in the hands of state governors in the governments are meant to be pur- lar federal statutory transfer, some region and the alleged diversion of veyors to host communities. Even proportion of the revenues collected the money has allegedly contributed in states that have development from a federating unit should be re- gravely to the underdevelopment of commissions, they only earmark 50 turned to the government of that unit. the region as the affected commu- percent of the funds to the commis- Therefore, the states of the Niger nities can hardly boast of having ac- sion to manage on behalf of the host Delta, in addition to the statutory cess to the basic necessities of life. communities. So what happens to allocation from the centre, are en- There have been complaints of state the other 50 per cent?” titled to 13% from Nigeria’s oil rev- governors diverting the fund to other enue. Thus, the application of the uses. Many have also called for direct Stakeholders speak derivation principle has resulted in payment of the fund through the Pres- Commenting on the report, the a situation in which the oil-produc- idential Derivation Committee (PDC) Managing Director of ACIOE Asso- ing states receive higher allocations and State Implementation Committee ciates, Mr. Ekenem Isichei, said the than the non-oil producing ones. (SIC) to the oil-bearing communities. findings were corroborated by data Without a doubt, states in the Niger But state governments have con- obtained from the Office of the Ac- Delta region benefit immensely from tinually defended its management of countant-General, the Nigeria Ex- the country’s revenue-sharing sys- the derivation fund saying, agitation tractive Industries Transparency tem compared with other regions. for the money to be paid directly to Initiative (NEITI), State Government To buttress this point, for in- affected communities was untenable Financial Statements, and interviews stance, the Nigeria Extractive Indus- since it would be impossible for all with host community members. tries Transparency Initiative (NEITI) oil-bearing communities to control He said the intention of the report report on disbursement to the Fed- their resources. was not to indict any state or individual eral, States, Local Governments by Last September, the Special As- but to see how resources can be redi- the Federation Accounts and Allo- sistant (SSA) to the President on Na- rected for the full benefit of the people. cation Committee (FAAC) in 2019 tional Assembly Matters, Ita Enang, On his part, the Special Assistant to showed that four states of the Niger sought an amendment to the Niger the Minister of Niger Delta Affairs, Mr. Delta Region were among the big Delta Development Commission Charles Achodo, called for an urgent league of states that received over (NDDC) Act to ensure that the 13 per clarification on the 13 per cent derivation N100 billion out of the N8.15 trillion cent oil derivation fund is paid directly principle to forestall further abuse and shared in 2019 owing largely to the to host communities instead of state mismanagement of the funds to the det- 13 per cent derivation. governors. Enang’s call was sub- riment of oil-producing communities. According to NEITI, Bayelsa re- sequently supported by the Deputy He said: “When 13 per cent is giv- ceived N139.69 billion, Rivers N158 Senate President, Ovie Omo-Agege, en, the governors share it among billion, Akwa Ibom (N171.43 billion) who also lamented the alleged diver- themselves. On the part of the Federal and Delta (N218.58 billion). NEITI sion of the derivation funds by oil-pro- Government, they have done a poor stated in the analysis that while Osun ducing states expressing regrets that job in terms of communication. It is State had the lowest share of N24.14 the fund’s utilisation has become a supposed to clarify what the 13 per billion, Delta State had the highest of political tool in the hands of benefit- cent is meant for, if it is for the state N218.58 billion. This implies that Del- ting state governors, a situation that or for the communities where the oil is ta State received over nine times the has contributed to blatant underde- produced from. amount that Osun State received. velopment of the region. “The Act made it so broad; it did “It is fair that the 13 per cent der- not specify the issue. The Act needed Controversial derivation spending ivation is meant to ameliorate the to be clarified, that it is not meant for template conditions of the people who are the entire state, but for the oil produc- Over the years, there have been con- most impacted by oil exploration ing communities. Taking the resourc- tention over the template for the spend- and exploitation. That is the only rea- es at that subsidiary level would help ing of the 13 per cent derivation fund. son this fund was set aside . achieve a lot at that level.”

9 Industry 02:21

BOOK PRESENTATION Buhari Hails Kachikwu’s Quadruple Masterpiece! President Muhammadu Buhari was among the 2,150 participants at the virtual presentation of four books, authored by former Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu. The ground-breaking event attracted global audience, most of whom were thrilled by the resourcefulness of the author, writes EDDY OCHIGBO.

President Muhammadu Buhari Dr Emmanuel Ibe Kachikwu

t was one big virtual presenta- Resources, Timipre Sylva among crude sales policies and process- tion of four books - penultimate others, added colour to the event. es. He spent sleepless nights with Iweek - which attracted critical “I want to particularly thank the me during the fuel crises of 2015, stakeholders in the oil and gas in- book presenters, Messrs Austin and remained supportive through- dustry. The author of the books, Dr Avuru, Abdulrazaq Isa, Sanusi Bar- out my tenure. I refer to Mele Kyari, Emmanuel Ibe Kachikwu, an ac- kindo and Mr Godwin Obaseki for the current Group Managing Direc- complished professional in the oil their kindness in presenting the tor of NNPC. gas industry and immediate past books. “Two people who also played Minister of State for Petroleum Re- Of course the powerful prayers important roles in policy reviews, sources, was particularly delighted led by renowned Pastor Bakare initiation and execution and so about the interest and excitement provided the blessing of the day. indirectly helped provide working the presentation of his four books Did you notice that even the in- materials for the books were the had generated. ternet stayed loyal to God’s com- late Chief of Staff Malam Abba A delighted Dr Kachikwu had en- mands and there was no break in Kyari, and Dr Maikanti Baru, former thused shortly after the successful the live event. NNPC GMD”. presentation: “I want to thank ev- “In my previous acknowledge- Kachikwu summed up: “And so eryone of the 2,150 participants ments, I left out the amazing sup- we draw the curtains of this event, that logged in, and mostly stayed port I received from all Chief Oper- as tomorrow we begin focusing on all through the presentation. The ating Officers of NNPC, and Heads the challenges life throws at us. I presence of President Muham- of Parastatals during the time of have always said that our country madu Buhari, Vice President Yemi my service, and the name of the Nigeria is extremely blessed and Osinbajo, General T. Y Danjuma man who worked closely with me our only limitations are us, the cit- (rtd), Minister of State Petroleum in shaping and revamping our izens. There is much resource to

10 Industry 02:21 harness, much excellence to cel- ebrate and enough space in the horizon for many stars. I pray for us all and for our country, that we may leap with boldness into tap- ping our collective resources and skills to make this country easily the best and most adorable on earth. The journey of thousand miles begins with a step, but only nations that make haste and take Consideration must have a value that can be objectively determined. Con- leaps can make it to the frontline”. “sideration has to be not merely “something of value,” but “something of value Earlier, President Muhammadu in the eye of the law”. The law in certain cases refused to recognise the “value” Buhari pointed out that the four of acts or promises which might well be regarded as valuable by a layman. books published by Dr Emmanuel A promise for example, of love or affection is not enforceable because of the Kachikwu was an affi rmation of subjective nature of the promise. Also, a moral obligation does not constitute his administration’s efforts at en- consideration. Thus in Eastwood v. Kenyon37, Eastwood, who was guardian to suring transparency in the oil sec- Mrs. Kenyon whilst she was an infant, had spent a considerable amount of his money in improving her estate and in bringing her up. Upon attaining maturity, tor of the economy. While stress- she promised to reimburse him for his expenses. Her husband also promised ing the essence of Kachikwu’s to do so independently. When they failed to fulfi ll their promises, he sued them, publications, the president said, relying on moral obligation. It was held, dismissing his action that consideration “the books discuss the industry was lacking and moral obligation was not suffi cient. through the policy framework” of his administration. The president - NIGERIA LAW OF CONTRACT: STUDY COMPANION expressed confi dence and opti- mism that the books would no doubt give insight into the policy framework and operations of the oil and gas industry, which he said would engender increased produc- tivity and profi tability. “When I assumed offi ce in 2015, the oil sector was in dire straits. The sector at that time was obvi- ously in need of reform, if it must attract growth, hence the respon- sibility to act fast and aggressive- ly”, Buhari said, contending that the current transparency in the Nigeria National Petroleum Cor- poration (NNPC), was a function of the administration’s conscious decision to combat corruption in the all important sector, of which The role of government to foster a conducive investment climate for the he has remained the substantive “private sector to take the lead on development cannot be over-enphasized; a minister. key aspect of this role in the context of the Nigerian gas sector is adopting policies that will make it easier for projects to get fi nanced. One of such poli- On his part, Vice President cies is allowing lenders to obtain a legitimate frontline security interest against Osinbajo, himself - a friend of the upstream assets. A good innovation to achieve this, is to create a public licens- former minister - disclosed that ing registry where all upstream interests can be registered and made available he had always been at each of his to the public, just like the land registries. This will improve transparency in the book launches, the last of which sector and also provide a platform for lenders to register their security interest he predicted that he had to present against the public records of the upstream assets. more books at once in his next ef- fort, describing Kachikwu as a pro- - LEGAL POLICY FRAMEWORK FOR THE DEVELOPMENT OF lifi c writer, with interest in romance GAS IN NIGERIA publishing. Osinbajo added: “One day, it would be safe to write your memoires”. In their goodwill messages, for-

11 Industry 02:21

mer Minister of Defence, Gener- al T.Y Danjuma (rtd), noted that Kachikwu’s intellectual pedigree was well known to all from his days at Mobil, adding that he was not surprised that as a true schol- ar, he took time off to author the four books for posterity. Minister of State for Petroleum Resources, Timipre Sylva, also held the view that having worked closely with the president to achieve so much in the petroleum industry, the former minister’s poli- In today’s world, trade and investment have evolved into an important cies remained at the foundation of “catalyst for economic growth in developing countries. For instance, For- their current work in the industry. eign Direct Investment (FDI) serves as an important vehicle of technology Others, who delivered goodwill transfer from developed countries to developing countries. This stimulates messages, included the Secre- domestic investment and facilitates improvements in human capital and institutions in the host countries. International trade is also known to be an tary General of the Organisation instrument of economic growth. Trade facilitates more effi cient production of Petroleum Exporting Countries of goods and services by shifting production to countries that have compar- (OPEC), Sanusi Barkindo, Minis- ative advantage in producing them. ter of Mines and Hydrocarbon in Equatorial Guinea, Gabriel Obiang - NIGERIAN FOREIGN INVESTMENT LAW AND POLICY Lima and Secretary General of Af- (SECOND EDITION) rica Petroleum Producers’ Organi- sation, Omar Farouk. Earlier in his opening remarks, Kachikwu, while welcoming ev- eryone to the virtual book launch, noted that the whole idea was that people, who came after him, could borrow from his wealth of experi- ence through documentation and be guided by some of the efforts of his leadership. Also, in his vote of thanks, Kachikwu reiterated that the core idea behind the books was to help situate the role of poli- cy and experience in assisting with research in the foreseeable future. The book, Nigerian Petroleum Industry – from 2015 to the future – was reviewed by Dr. Dayo Ayoade and presented by Barkindo, the book on Gas development in Nige- ria: Legal and Policy Framework Since the year 2000, the government had commenced the process of was reviewed by Dr. Peter Oniemo- “reforms and set up the Oil and Gas Sector Reform Implementation Com- la and presented by Mr. Abdulrasaq mittee (OGIC), which came up with the Nigerian Oil and Gas Policy and Isa. The book on Nigerian Foreign which initiated the process of drafting the Petroleum Industry Bill (PIB). Investment Law and Policy was re- viewed by Dr. Toyin Adejonwo Osho In the life of any new administration, re-prioritization of policy initiatives is and presented by Mr. Austin Avuru. often a sine qua non of executive decision making. The new administra- tion that came in 2015 is no exception. In the same vein, the book, Nigerian Law of Contract: Study Companion - NIGERIAN PETROLEUM INDUSTRY 2015 TO THE FUTURE was reviewed by Dr. Kemi Omotubo- ra and presented by the Edo State RESTRUCTURING & REFORMING FOR GROWTH Governor, Godwin Obaseki.

12

Industry 02:21 NOCs’ Projects at the Mercy of Paris Climate Agreement — Report –By Fred Ojiegbe

here are fears that Nation- meet the objectives of the Paris deployed, this figure would climb al Oil Companies, including climate agreement, oil produc- even higher. “A huge amount of Tthe Nigerian National Pe- ers face a moment of reckoning. state investments in oil projects troleum Corporation, NNPC are While the climate approaches of will likely only yield returns if risking a combined $400 billion such multinational oil firms as global oil consumption is so high oil projects not compatible with BP and ExxonMobil are routinely that the world exceeds its carbon global energy transition. scrutinized, “this is the first re- emission targets,” says Patrick According to a report pub- port quantifying the incompati- Heller, an NRGI advisor and one lished by the Natural Resource bility of NOCs’ investment plans of the report’s co-authors. “This Governance Institute (NRGI) with the Paris agreement”, NRGI risky spending has major impli- some state-owned national oil claims. NOCs produce half of cations for the economic future companies (NOCs), many in de- the world’s oil and gas and are of national oil companies’ home veloping countries are on a tra- responsible for 40 percent of the countries. State-owned oil com- jectory to spend billions on oil capital invested in the industry panies in developing and emerg- and gas projects that will only worldwide. Using market data, ing countries including Algeria, break even if the world fails to NRGI’s report, Risky Bet: Nation- Mexico and Nigeria might col- meet the Paris goals. The report al Oil Companies in the Energy lectively invest more than $365 stated that one fifth of anticipat- Transition, estimates that NOCs billion in such high-cost projects ed investments in the oil and gas could invest about $1.9 Trillion in expenditures that could instead sector by state-owned oil com- the next ten years. Of this, about help alleviate poverty or diversify panies are economically unviable one fifth, or $400Billion, would their oil-dependent economies.” if global warming is to be kept not result in a profit if the energy As an example, the researchers within 2 degrees Centigrade, new transition proceeds in line with highlight the Nigeria National Pe- research has shown. It explained current climate commitments. troleum Corporation. Almost half that with the United States re- If widespread carbon capture of the Nigerian NOC’s upcoming joining the global coalition to and storage technologies are not oil project spending, an amount

This risky spending has major implications for the economic future of national oil companies’ home countries. State-owned oil companies in developing and emerging countries including Algeria, Mexico and Nigeria might collectively invest more than $365 billion in such high- cost projects expenditures that could instead help allevi- ate poverty or diversify their oil-dependent economies.” As an example, the researchers highlight the Nigeria National Petroleum Corporation. Almost half of the Ni- gerian NOC’s upcoming oil project spending, an amount that exceeds the government’s expenditures on educa- tion and health care may fail to break even if the world makes rapid progress toward climate goals.

14 Industry 02:21

countries risk pushing ahead with new investment regardless of what is economically and eco- logically feasible, and the out- comes could be dire. If interna- tional oil companies and private investors make good on their stated ambitions to move away from hydrocarbons, state actors may be even more tempted to step in and fill the gap in oil pro- duction.” The Risky Bet report is accompanied by a briefing that details the specific challeng- es facing NOCs in the Middle East and North Africa (MENA). Patrick Heller Researchers found that while that exceeds the government’s “They could pay off, or they could some MENA NOCs have access expenditures on education and pave the way for economic crises to large, cheaply developed re- health care may fail to break across the emerging and devel- serves that will help them with- even if the world makes rapid oping world and necessitate fu- stand a long-term decline, others progress toward climate goals. ture bailouts that cost the public face uncertainty in maintaining Similarly, Colombia’s Ecopetrol dearly.” The report notes that the the production on which their could invest the equivalent of a governments of countries includ- economies have come to de- fifth of its government’s total ex- ing Algeria, Angola and Azerbai- pend. The briefing suggests that penditures into oil and gas proj- jan are making particularly risky NOCs and their governments ects that will break even only if bets with public money. across the region should adapt the world fails to meet its climate “National oil companies will their strategies, become more commitments. “State oil compa- have a major influence on the efficient and accountable to cit- nies’ expenditures are a highly success of the push for a man- izens, and adopt fiscal practices uncertain gamble,” says David aged decline in fossil fuel pro- that lead to economic resilience Manley, NRGI senior econom- duction worldwide,” says Heller. in a low-carbon future. ic analyst and report co-author. “Authorities in many producing

15 Industry 02:21 NCDMB Launches 2nd Phase of Project100

–By Fred Ojiegbe

he Nigerian Content De- velopment and Monitor- Ting Board (NCDMB) have inaugurated 40 companies as part of its Project 100 Supplier Development Programme. Project100 which took root in January 2019 with 60 compa- nies with a goal of nurturing 100 wholly owned oil and gas ser- vice providers, in a competitive and sustainable way through targeted interventions, into larg- er scale players that create high impact. The Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote inaugurated the new batch of companies in a virtual event. He stated that the suc- cessful implementation of Proj- ect100 would increase contri- butions of the oil and gas sector to the nation’s Gross Domestic Product (GDP), create job oppor- tunities and access to market, increase industrialization oppor- tunities, increase retention of industry spend and substitute Engr. Simbi Wabote imports in the industry. He revealed that the 40 new clude bespoke development of the challenges identified by beneficiaries were selected plans to improve critical busi- the beneficiaries. from the Nigerian Oil and Gas ness capabilities and access Other opportunities include Industry Joint System (NOGIC- to market opportunities with technical and business perfor- JQS) – the industry database of oil and gas operators on indus- mance improvement capacity competencies which has 4,340 try projects. He also identified programmes, collaboration with active service companies. 609 access to critical industry and critical industry stakeholders for applications were received, out operational insights, informa- participation in relevant global of which 40 companies got se- tion and data and participation oil and gas events, R&D collab- lected he said. in local oil and gas opportunity oration, opportunity to benefit Wabote listed the benefits fairs and strategic events and from the US$50m Nigerian Con- that would accrue to the new advocacy for policy recommen- tent R&D Fund and opportunity Project100 companies to in- dations that would unlock some to access the US$350m NCI

16 Industry 02:21

Fund, particularly the US$30 million Working Capital Product, for qualified organizations. The NCDMB Chief Executive gave a scorecard of the imple- mentation of Project 100 so far. He disclosed that the first 60 Beneficiaries have benefitted from key interventions, one of which is the successful inclu- sion of 46 beneficiaries in the supplier data base of the Nigeri- an Liquified Natural Gas (NLNG) and collaboration with a benefi- ciary on the setup of a technol- through a transparent process commended the NCDMB for ogy solution Centre for Refinery run in two phases. sustaining the Project 100, de- and Petrochemicals. He said the firms are whol- scribing it as noble initiative that The companies also benefit- ly owned by Nigerians without can accelerate Local Content ted from development and im- international affiliations except aspirations of government and plementation of bespoke devel- for technical partnerships. other stakeholders. He appealed opment plans to improve their The primary service areas of to the Board and other stake- critical business capabilities the beneficiaries are fabrication holders to challenge, engage and attended several access to and construction, well and drill- and expose the selected compa- Market Workshop sessions with ing services, installation, hookup nies with real growth opportu- major oil and gas operators. and commissioning, marine op- nities to ensure the success of There was also sponsorship erations and logistics services the initiative. He also requested to oil and gas conferences in Ni- and materials and procurement. the Board to collaborate closely geria and overseas, in addition .Other areas of their opera- with PETAN in the implementa- to trainings on Subsea Systems tion are inspection, testing and tion of Project100. and FPSO, Project Production certification, feed, detailed en- The PETAN lead regretted Management and Business gineering and other engineer- that only few members of the mentorship. ing services, Health, Safety and association made the list of 40 The General Manager, Re- Environment and Surveying and companies and charged oth- search, Statistics and Develop- Positioning Services. er member companies to fol- ment, NCDMB, Mr. Abdulmalik Chairman of the Petroleum low the conditions listed by the Halilu confirmed that the new Technology Association of Ni- Board to qualify for similar ven- 40 beneficiaries were selected geria (PETAN), Mr. Nik Odinuwe dor development programmes.

Wabote listed the benefits that would accrue to the new Project 100 companies to include bespoke development plans to improve critical business capabilities and access to market opportunities with oil and gas operators on in- dustry projects. He also identified access to critical indus- try and operational insights, information and data and participation in local oil and gas opportunity fairs and strategic events and advocacy for policy recommendations that would unlock some of the challenges identified by the beneficiaries.

17 Industry 02:21 Consumers, Marketers Groan as LPG Prices Skyrocket Marketers write Sylva - ‘hike a mockery of FG gas expansion Consumers now reverting to firewood, sawdust

–By Gideon Osaka

rogressively rising prices in the pump price of petrol (PMS) January and then N4800 in early of Liquefied Petroleum Gas and the attendant hike in the February. P(LPG), popularly known as price of food commodities. A marketer of the product in cooking gas is threatening to Market survey shows that in Lugbe disclosed that he sold breach recent interventions by the past few months, the price 12.5kg in November for N4000. the federal government to deep- of 12.5kg of cooking gas had In December and January the en domestic gas supply and us- increased from about N3,200 product was dispensed at N4500 age in Nigeria. to N5,000 in most parts of the and recently N5000 in February. Valuechain investigations country. Consumers in Ibadan and Ka- show that the price of LPG in the Findings across some states duna, depending on the location country has risen astronomically revealed that for instance the now buy LPG for N400 per 1 kg. since November 2020, with con- cost of refill of a 12.5kg cylinder The situation, according to our sumers now paying more for the of LPG in Lagos rose from N3200 investigation, has forced some product whose raw material is in November to N3500 in Decem- low-income Nigerians to resort abundantly available in Nigeria. ber and N4000 in January. Some to using firewood and sawdust The exponential increase in retail shops put the price for refill- for cooking. LPG price comes at a time con- ing a 12.5kg cylinder at between “We rely heavily on cooking sumers are yet to recover from N4,500 and N5000 in February. gas to cook all the food we sell in the negative economic implica- The situation is the same in our restaurant but in the last two tions of the COVID-19 pandem- Abuja. A cross-section of con- months, the price of the product ic, which has virtually crippled sumers interviewed said they has been something else. It is a household purchasing power, bought 12.5kg for N4000 in No- major contributor to our costs coupled with the recent increase vember, N4500 in December and and in order for us to break even

18 Industry 02:21

The exponential increase in LPG price comes at a time consumers are yet to recover from the negative economic implications of the COVID-19 pandemic, which has virtu- ally crippled household purchasing power, coupled with the recent increase in the pump price of petrol (PMS) and the attendant hike in the price of food commodities. we have to now resort to alterna- getting out of the reach of the the Nigeria Liquefied Gas Com- tives like charcoal until cooking masses whose disposal income pany (NLNG) and others pro- gas price drops a bit,” said a food can no longer afford the pur- ducing gas to allocate sufficient vendor based in Nyanya area of chase of even firewood to cook quota to the domestic market Abuja. with the obvious known health annually. The Executive Secretary/ implications,” the letter read. “The 350,000MT supplied to Chief Executive Officer, Nigerian The Liquefied Petroleum Gas the domestic market by NLNG Association of LPG Marketers Retailers (LPGAR), branch of Na- annually is not enough to meet (NALPGAM), Mr Bassey Essien tional Union of Petroleum and the demand hence more than 60 in an open letter to the Minister Natural Gas Workers (NUPENG), per cent of gas we use is import- of State for Petroleum Resourc- also recently decried the increase ed into the country. es Chief Timipre Sylva lamented across the country saying that “By doing this, we will stop that the price of LPG has expo- retailers were not happy with the importation of gas which will nentially skyrocketed over the increment because they were no reduce the strain on our foreign last few months. longer getting patronage. exchange,” Umudu said. Essien in the letter dated Feb- “Some people in semi-urban He added that the pricing of ruary 18, 2021 said the cost of areas have switched to firewood LPG should also be done in Nai- LPG early in 2020 was N3.4m per and kerosene stoves because ra against the current situation 20MT truck, but by December they cannot afford to refill their where the product is being sold 2020, it had gone up to N5.4m; gas cylinders,” National Chair- to Nigerian marketers in dollars. N5.6m in January 2021 and N6m man, Mr Michael Umudu, told the per 20 MT by February 2021. News Agency of Nigeria (NAN) in Importation galore He added that the galloping Lagos. The hike in LPG price comes increases have not only chocked “This totally negates all the ef- despite assurances of an addi- marketers but have also strangu- forts the government has been tional 240,000 metric tons per lated consumers, thus making a making to encourage Nigeri- annum (mtpa) supply from the mockery of the whole gas expan- ans to embrace gas as the pre- Nigerian Petroleum Development sion plan of the government. ferred choice for cooking in their Company’s (NPDC) Integrated He said that gains made late- homes,“ he added. Gas Handling Facility (IGHF) ly in the huge conversion rate According to him, while the and Liquefied Gas Storage and to LPG usage which had moved government has declared Jan- Dispensing Plants in Oredo, Edo the per capita consumption from uary 1, 2021 to December 31, state. 1.5kg to over 3kg have gradually 3030 as the decade of gas, such The IGHF which is said to be reduced because of the domes- declarations should be backed the largest onshore LPG (cook- tic costs of LPG, an ominous and by proactive actions to make it ing gas) plant in Nigeria and imminent danger the govern- successful. commissioned in December by ment policy on LPG faces. “What we are saying is that President Muhammadu Buhari According to him, majority of government should own the gas was supposed to dispense (via the users of LPG are gradually space in Nigeria and not just its LPG Storage and Dispensing reverting to the use of kerosene leave it totally to other private Unit) at full throughput about and firewood. businessmen who are profiting 330 tonnes of LPG per day which “The nation has to be saved from the situation. is technically equivalent to 16 from the impending social up- “If we want the price of gas to standard LPG trucks into the do- heaval consequent upon LPG be stable, government can direct mestic gas market.

19 Industry 02:21

point, the naira was 500 per dol- lar,” Essien said. NLNG currently allocates 350,000 MT of gas to domestic consumption out of its four mil- lion metric tonnes annual pro- duction. The company said recently, however, that it would increase its annual domestic allocation to 450,000MT by 2021. The NLNG said in September that its board of directors had ap- proved an increase in its dedicat- ed volume of LPG supplied to the domestic market from 350,000 metric tonnes per annum to 450,000 mtpa.

Solution Cooking gas marketers had consistently championed the call for local production of cooking gas from its raw form to clean- ing, distribution and marketing so as to stave increases in pric- The new IGHF dispensing unit According to him, the major es as dictated by the importation was also supposed to make it challenge with LPG utilisation in regime. easier to load a tanker from Be- Nigeria is the issue of inconsis- Essien in the letter appealed to nin and deliver to Abuja or oth- tent availability and ever gallop- the Chief Sylva to put in place a er distances, and then naturally ing gas price with the attendant policy that would encourage full bring down the cost of cooking depot landing costs and other domestication of LPG whereby gas in the country. associated charges. every local producer of gas is But Essien said that the LPG Nigeria, is home to the largest mandated to domicile all mole- operations of the NPDC Oredo natural gas reserves in Africa and cules produced in the country IGHF plant, are now dominated the ninth-largest in the world, but as against a situation of being a by “middlemen” in the distribu- still imports a chunk of the cook- major exporter of gas produced tion chain. ing gas being consumed in the as well as a major importer of He said, “These middlemen country. gas. without identifiable LPG bottling The domestic availability, ac- He said, “if all molecules of plants are hawking LPG alloca- cording to him, has been skewed gas should be domesticated, the tions from plant to plant for pa- majorly to 65% import depen- local markets will be adequately tronage at exorbitant prices. dence while only 35% has been supplied and prices stabilised. Equally disturbing is the fact attributed to local supply. By this way the concerted efforts that gas plant owners in the Edo/ Many privately-owned termi- of the federal and state govern- Delta region with their verifiable nals have to depend on impor- ment parastatals and agencies large storage capacities have not tation because they can not get to encourage the use of gas been granted offtaker facility de- supply from the Nigeria LNG Lim- would not be in vain. spite the location of the project in ited. Thus we urge your urgent in- the region; the coming of which “In the process of importing tervention to address the plight had been viewed as beneficial to LPG, the CBN does not have any of stakeholders; else all the ex- investors in the catchment areas particular foreign exchange win- pansion programme of the gov- of the project and an alleviation dow for LPG importers like it has ernment would be an exercise in of the tedium of travelling out of for other sectors. futility.” the state to other states to buy So, they find their own forex cooking gas.” whatever way they can. At a

20 Industry 02:21 Barkindo blames COVID-19 for 30% investment decline in the oil & gas sector

–By Saidu Abubakar

nder investment remains one of the great challenges for the Uoil and gas industry and this believed to have been exacerbated by the COVID-19 pandemic. Over the course of 2020, investments in the industry declined by 30%, Secretary-General of the OPEC, Mohammad Sanusi Barkindo has confirmed, saying “we need to work towards creating an invest- ment-friendly climate.” In his opening remark during the 11th IEA-IEF-OPEC Symposium re- Mohammad Sanusi Barkindo cently at the IEF Secretariat in Ri- yadh, Saudi Arabia, the OPEC scribe among the agencies to compare our market downturn: the Declaration categorically stated: “the 14th edi- projections and further improve the of Cooperation.” tion of OPEC’s World Oil Outlook, data quality and transparency. The Elaborating further, Barkindo not- which was launched on October 8 of achievements of the JODI to date ed: “Together with our partners and last year, global primary energy de- is an illuminating example of this, ably supported by the Saudi Arabian mand is forecast to continue grow- as well as the analysis in the newly Presidency of the G20, we agreed ing in the medium and long term, released IEF-RFF Outlooks Compar- on 12 April 2020 to the largest and rising by a hefty 25% by 2045. Oil will ison Report that will be presented longest-in-duration production ad- remain the largest contributor to the today.” justments in the industry’s history. energy mix in 2045 at 28%.” First and foremost, Barkindo “Thereafter, participating coun- To meet this future demand, the continued, “we must remind our- tries have subsequently adjust- global oil sector will need cumulative selves that the COVID-19 pandemic ed these decisions to proactively investment of $12.6 trillion in the up- has been a human tragedy. Almost anticipate market developments, stream, midstream and downstream 110 million people have been sick- improve the core principles upon through to 2045. These investments ened by the virus, over 2.4 million which our enterprise was founded are essential for both producers and have died, and millions of liveli- (transparency, equity and fairness) consumers. hoods have been destroyed. and compensate for overproduced He noted that Energy outlooks “Some commentators have not- volumes. High conformity levels are an essential component of ed that the energy industry may with these production adjustments the Organizations’ work. Compre- have been the most impacted of have been testimony to the depth of hensive, accurate and fact-based all sectors by the pandemic. As the our commitment. analysis is crucial in supporting world economy contracted by 4.1% “Consequently, we have seen a re- policy-makers in taking informed in 2020, global oil demand declined covery in the industry that has multi- decisions, especially in the current by 9.7 mb/d. plier benefits for the global economy. circumstances. “The nadir of this annus horribilis While there are grounds for op- According to him, “Our outlooks came in April. Industry veterans saw timism that 2021 will be the year are based on factual analysis, care- things happen that they could never of recovery, there are many uncer- ful modelling, and detailed reason- have imagined possible. Oil demand tainties ahead. As the IMF recently ing. While we are not in the busi- plunged 22% during the month and stated thus: ness of predicting the future, we on 20 April 2020, WTI went negative “Much now depends on the out- adopt methodologies grounded in for the first time in history, with pric- come of this race between a mu- rational scrutiny of the data. es plummeting to -$37. tating virus and vaccines to end “Since we have enhanced collab- “In response to this unprece- the pandemic, and on the ability of oration between our Organizations, dented situation, OPEC knew it had policies to provide effective support the quality of our output has im- to act. Thankfully, we did not need until that happens. There remains proved exponentially. A clear indica- to reinvent the wheel. We turned tremendous uncertainty and pros- tion of what we have achieved is re- to the mechanism that had helped pects vary greatly across countries,” flected in regular technical meetings us emerge out of the 2015-2016 oil the OPEC scribe remarked.

21 For enquiries, call: 0705 500 1000 Star of the Industry 02:21

Auwalu Ahmed Ilu Chief Executive Offi cer, Ultimate Gas Limited

23 Star of the Industry 02:21

Auwalu Ahmed Ilu Chief Executive Offi cer, Ultimate Gas Ltd.

–By Danlami Nasir Isah

Auwalu Ahmed Ilu is an experienced businessman with interest in Energy, Maritime and Logistics with over 20 years’ experience in LPG business. As an en- trepreneur with other successful businesses, he started Ultimate Gas Ltd in 1991. His extensive experience and knowledge of the gas industry has led to the great suc- cess of Ultimate Gas.

uwalu Ahmed Ilu is an sociation of Liquefi ed Petro- experienced business- leum Gas Marketers (NALP- Aman with interest in GAM) 2003-2012, President Energy, Maritime and Logis- of Nigeria LP Gas Association tics with over 20 years’ expe- from 2009-2013, Member LPG rience in LPG business. As an Steering Committee set up by entrepreneur with other suc- the Federal Government, and cessful businesses, he start- Council Member, Kano State ed Ultimate Gas Ltd in 1991. University of Science and His extensive experience and Technology, Wudil. He is also knowledge of the gas industry on the board of Ilutex, Stallion has led to the great success Setevedores: both Maritime of Ultimate Gas. Born in Kano companies among others. State, Nigeria, Auwalu attend- In recognition of his out- ed the Centre for Econom- standing commitment to his ics and Political Studies in assignments, he was award- London from 1979-1980 and ed Maritime Quality Service holds a diploma in sales man- Award in 2005, Pipelines and agement. In addition, he holds Products Marketing Compa- a certifi cate in Export offi ce ny (PPMC) LPG Depot Merit practice from the Institute of Award in 2012 and Nigerian Export London. He is a fellow News Direct LPG Distinction of the African Centre for Sup- Award in 2018. ply Chain. During the course of Auwalu loves travelling and his career, he has been oppor- has traveled widely around tune to serve in key functions. the world. At his spare time, Notable amongst them are: he enjoys the game of bad- President, Kano Chambers of minton Commerce from 1989-1996, President of the Nigerian As-

24 Star of the Industry 02:21

25 FEBRUARY 2021 FEBRUARY 2021 Cover Story 02:21 PIB 2020 and the Need for Downstream Gas Infrastructure Fund

As the legislators continue work to ensure the passage into law of the long-awaited Petroleum Industry Bill (PIB), Acting Editor, EDDY OCHIGBO examines the need for the law makers to make provision for downstream Gas Infrastructure Fund, considering the current ongoing gas revolution in the country

n December 2019, while re- en economy that would place energy in the energy transition ceiving the leadership of the Nigeria as a regional hub for process. INigeria Liquefi ed Petroleum gas based industries. The new Apart from economic con- Gas Association (NLPGA) led National Gas Policy to be im- siderations, the federal govern- by its President, Mr. Nuhu Yaku- plemented by the government ment’s reason for embarking bu, the Honourable Minister of will create a governance frame- on the current gas revolution in State for Petroleum Resources, work (legal, regulatory, institu- the country may also be due to Chief Timipre Sylva declared tional, commercial, fi scal) that numerous advantages of gas 2020 as the year of Gas for would address and situate gas which include: environmental the Nation. One year after this as a ‘standalone commodity’. friendliness, cleaner, safer and declaration, the minister went Recently during a media easier to store, reliability and further to declare January 1st, parley with energy correspon- less expensive than other fossil 2021 to December 31st, 2030 dents at an event attended by fuels. Natural gas though, not as “The Decade of Gas Devel- the National Association of En- a renewable energy source, the opment for Nigeria” at the Sev- ergy Correspondents in Abuja, emissions from its combus- enth Joint International Energy the Group Managing Director tion are much lower than those Forum and International Gas of the Nigerian National Pe- from coal or oil. Union (IEF-IGU) Ministerial Gas troleum Corporation (NNPC), With the full deregulation of Forum in Malaysia which held Malam Mele Kyari said that Ni- the downstream sector of the virtually. geria is more of a gas endowed oil industry, which has led to an The objective of this em- country, though the country is increase in the pump price of phasis on gas by the federal known more for her oil resourc- petrol, the Federal Government government is to move Nigeria es. The GMD disclosed that has been pushing out policies from a predominantly oil-de- gas has a lot to offer because to encourage the development pendent economy to a gas driv- it is the most resilient source of and use of gas which they con-

28 Cover Story 02:21

tee seamless diversification from oil base economy to gas base economy except the pol- icies are backed by law as be- ing articulated in the Petroleum Industry Bill 2020, which is cur- rently receiving attention in the National Assembly. The PIB 2020 which was for- warded to the National Assem- bly by President Muhammadu Buhari in September 2020 is an executive bill that seeks to provide legal, governance, reg- ulatory and fiscal framework for the Nigerian oil and gas in- dustry as well as oversee the development of petroleum host communities. With oil being the largest income earner for the country and backbone of the nation’s economy, the bill has Chief Timipre Sylva expectedly generated so much interest. sider a cheaper source of ener- Programme (NGFCP), Nigerian One of such interests, is the gy. Gas Master Plan etc. provision under part IV (Au- In the last few years, the fed- Among the key priorities of thourity) of the bill which stip- eral government through the Chief Sylva, completion of the ulates that under section 52 Federal Ministry of Petroleum Nigerian Gas Flare Commer- (1) that a Midstream Gas Infra- Resources have launched vari- cialisation Programme remains structure Fund (MGIF) should ous programmes to serve as a paramount with associated be established to make equity policy framework that will even- gas focused deliverables that investments of Government tually stimulate activities in the include deepening domestic owned participating or share- sector. Some of these are the gas penetration and adop- holder interests in infrastruc- launching of the National Gas tion amongst others. Howev- ture related to midstream (Pro- Transportation code, Nigerian er, many are of the view that duction) gas operations aimed Gas Flare Commercialisation these policies cannot guaran-

One of such interests, is the provision under part IV (Authourity) of the bill which stipulates that under section 52 (1) that a Midstream Gas Infrastructure Fund (MGIF) should be established to make equity in- vestments of Government owned participating or share- holder interests in infrastructure related to midstream (Production) gas operations aimed at – (a) increasing the domestic consumption of Natural Gas in Nigeria in projects which are financed in part by private invest- ment; and (b) encouraging private investment.

29 Cover Story 02:21

be managed by the Petroleum Equalisation Fund (Manage- ment) Board, PEF(M)B. This, they reasoned, is based on the performance of the Fund in the last 45 years of its existence. According to one of the stakeholders, as a federal gov- ernment parastatal which has for many years been working tirelessly to ensure seamless supply and distribution of pe- troleum products in the coun- try, PEF has a critical role to play in the ongoing reforms in the oil and gas sector, especial- ly the ambitious Gas revolution plan of the federal government. “So, my view is that the draftsmen of the bill have for- gotten that you need to sell these products you have pro- duced and therefore, PEF is in the downstream sector, as the agency charged with the re- Mallam Mele Kyari sponsibility of supply and dis- tribution of petroleum products at – (a) increasing the domes- equally important because that in the country for over 45 years, tic consumption of Natural Gas is the determinant of produc- should be given the responsibil- in Nigeria in projects which are tion activities. Their argument ity to drive this”, he remarked, financed in part by private in- is predicated on the fact that urging the legislators to look vestment; and (b) encouraging without consumption, produc- at the bill again and create a private investment. tion will be unprofitable. Downstream Gas Infrastruc- According to observers, Experts argued that for the ture Fund and allow PEF to though this is a welcome devel- bill to be complete, the lawmak- manage the fund because of its opment that will improve the in- ers should also make a provi- experience in handling such re- frastructure at the level of pro- sion for Downstream Gas In- sponsibility. duction of gas in the country frastructure Fund (DGIF) which Continuing, he said: “So, the which in turn will reinvigorate will go a long way in revolution- midstream will get the products activities in the midstream, the izing downstream activities. and then downstream will be bill did not make provisions for Critical stakeholders in the in- charged with the responsibility similar fund at the downstream dustry are of the view that such of ensuring that the products (consumption) level which is Fund, after creation, should go to the nooks and crannies of

He said PEF stands in a good stead to manage the Gas Infrastructure Fund because the National Coun- cil on Hydrocarbon has for four consecutive years en- dorsed PEF as the most efficient fund manager within the industry, a strong affirmation of the Council’s con- fidence in the ability of PEF to manage the Gas Fund.

30 Cover Story 02:21

Critical stakeholders in the industry are of the view that such Fund, after creation, should be managed by the Petroleum Equalisation Fund (Management) Board, PEF(M)B. This, they reasoned, is based on the perfor- mance of the Fund in the last 45 years of its existence. the country because PEF deals source of energy. This is achieved by reimburs- with critical stakeholders such Valuechain learnt, that the bill ing a marketer’s transporta- as MOMAN, IPMAN, NATO and also has raised concern about tion differentials for petroleum PTD. These are the players that its seeming lack of clarity in products movement from de- distribute petroleum products the role of some agencies such pots to their sales outlets [fill- for now. PEF deals with them as the Petroleum Equaliza- ing station] in order to ensure directly. These are the people tion Fund (PEF) Management that products are sold at uni- who receive their bridging al- Board post the passage of the form pump price throughout lowances effectively and effi- PIB. The bill seems to suggest the country. PEF’s source of ciently from PEF”. that some agencies under the funding is principally from the He said PEF stands in a good Federal Ministry of Petroleum net surplus revenue recovered stead to manage the Gas Infra- Resources like the Department from Oil Marketing Companies. structure Fund because the Na- of Petroleum Resources (DPR), The role of the agency, as tional Council on Hydrocarbon Petroleum Product Pricing Reg- an enabler, if clearly and sys- has for four consecutive years ulatory Agency (PPPRA), and tematically supported, can en- endorsed PEF as the most effi- the PEF would be merged to- gender energy sufficiency and cient fund manager within the gether as one entity, a situation accessibility for all Nigerians industry, a strong affirmation of which many see as a contra- regardless of where they dwell the Council’s confidence in the diction to what the bill seeks to in the country. The option left ability of PEF to manage the achieve; which is to unbundle to deepen gas utilization in the Gas Fund. mega agencies to manageable country today, is in making sure Adding this responsibility size; so that they will function gas is moved to the doorsteps to the agency, Valuechain was effectively, productively and of end-users. told, will further strengthen the profitably. Stakeholders advised the Fund’s impressive drive to en- The concerns are hinged on lawmakers to avoid any provi- courage the use of cooking gas the fact that both DPR and the sion that may end up creating in the country through its plans PPPRA have regulatory func- any form of distraction that to diversify into the equaliza- tions, while the PEF functions may likely occur when the Fund tion of Liquefied Petroleum Gas purely as an enabler organiza- is merged with other agencies (LPG), and create off-takers of tion. PEF, according to industry whose mandates are obviously the product which will, in turn, stakeholders remains the only different. deepen the federal govern- agency of government mak- According to the stakehold- ment’s plan for gas penetration ing the downstream sector ef- er: “Regardless of what hap- so as to enable more Nigerians fective and profitable to all the pens now, PEF is a stabilizing to use gas for cooking instead players in the sector because factor for the government and of kerosene or firewood. This its core mandate aims to bridge if you tamper with it now, the project which will ensure that the gap in petroleum product problems you have would dou- the cost of cooking gas across prices in order to ensure equity ble, because it stabilizes pricing the country is similar, will when in the distribution and purchase and promotes economic de- fully implemented save our en- of petroleum products through- velopment in every part of the vironment from deforestation out and administer uniform country. as the result of pressure on prices of petroleum products the trees which are used as a throughout the country.

31 Interview 02:21 “PIB, Opportunity to Reposition NNPC” — Nwakwue

Policy analyst and immediate past Chairman, Society of Petroleum Engineers (SPE), Nigeria Council, Joe Nwakwue, in this interview with Danlami Nasir Isah insists Nigeria needs an efficient and profitable national oil company as the country today does not have one, because of the way NNPC was set up. Joe who has served as Special Ad- viser, Policy & Regulation to Nigeria’s former Minister of State, Petroleum Resources and (Partner) Zera Advisory & Consulting sheds light on other sundry issues in oil industry. Excerpts.

What’s your assessment of the overall performance of Nige- ria’s oil and gas industry last year amid the Covid 19 pan- demic? Certainly, we would have done much better if we didn’t have to deal with so much uncertainty. I will say that the performance has been phe- nomenal given the challenges of demand destruction. The industry held out in spite of its poor positioning of pre- covid.

One of the issues you raised re- cently concerning the PIB 2020 is around the unbundling of the NNPC and what exactly the government wants to do. Can you shed more light on this? Nigeria needs an efficient and profitable national oil company. We don’t have one today because of the way NNPC was set up. I see an opportunity in the PIB to repo- sition NNPC. The PIB propos- als has done well by seeking to incorporate the NOC, but I believe it is only a first step...it should have been courageous

32 Interview 02:21

I do not support the retention of discretionary asset allocation powers because we have tried it before and saw how it can be abused. It creates room for corrup- tion, cronyism and prebendalism. Nigeria got the short end of the stick every time assets are given out outside a market framework. enough to unbundle and re- Deregulation is the only way take ? Once, there is clarity structure the NOC for better out of the many challenges around these issues, timing outcomes. facing the downstream and decison becomes mute. I the HMOSP and GMD should think there is unanimity on the What is your take on the elimi- be encouraged and supported desirability of private capital nation of discretionary powers to pursue this policy and en- participation in the refineries. and assets? sure its full implementation. We need to agree on what I do not support the reten- It is the right policy option model of private participation tion of discretionary asset for the downstream and the maximises Nigeria’s stake. allocation powers because country. Though, like a correc- we have tried it before and tive surgery, it will come with What is your expectation for saw how it can be abused. It some pain, the end result will the global oil industry and for creates room for corruption, be better for us all - govern- Nigeria this year? cronyism and prebendalism. ment, downstream operators Our expectation is that the Nigeria got the short end of and the consuming public. industry would recover with the stick every time assets Government should continue ongoing vaccination and bet- are given out outside a market to engage with organised la- ter understanding and man- framework. bor and devise strategies to agement of the covid-19 vi- Also, the nation does not alleviate the pain. rus/ pandemic. get optimum value from those This will see recovery in transactions. Best economic You and in fact the SPE Nigeria demand and crude oil pric- returns to the state is through Council are strong proponents es. This no doubt will help an open, competitive and of the sale of Nigeria’s idle re- restore developed capacities transparent bid process. fineries and for the government and incentivise further capac- to sell its joint venture stakes ity development, more project The minister of State for Petro- at a time there’s no volatility in sanctioning and investments. leum Resources and the Group oil price. Is this the right time Locally, one hopes and ex- Managing Director of the NNPC to dispose of these assets now pects the passage and en- in a recent interaction with Ed- that crude oil price is bouncing actment into law of the PIB, itors in Abuja affirmed that back? which will reduce significant the government’s deregulation Timing of asset sale es- uncertainties in the operating policy was still fully on course, pecially for non-performing environment, reform our in- despite concerns over the N5 asset is a tricky process. We dustry governance framework per litre reduction in PMS price should first agree on what for performance, attract more and imminent return of fuel our policy should be. Is state investments and also help subsidy. What’s your assess- control and participation still secure peace and inclusive ment of the deregulation policy the appropriate policy? If yes, growth with the host commu- so far and are you in agreement what level of participation is nities. with the minister that full de- desirable? What policy option We look forward to an im- regulation is on course? sustainably maximises state pactful year for the industry.

33 Tribute 02:21 Ahmed Zaki Yamani Saudi Arabia’s Distingushed Oil Minister: 1930-2021 –By Danlami Nasir Isah

tation as head of the Organization of the Petroleum Exporting Coun- tries. After the 1973 Mideast War, in which Egypt, Syria and their al- lies launched an attack against Is- rael, OPEC’s Arab member-states called for an oil embargo to pro- test Washington’s backing of Is- rael. Prices for crude oil skyrock- eted and there were long queues at gas stations across the United States. And Yamani became the public face of the oil embargo, says Daniel Yergin, author of The New Map, a book about energy and climate change. “Saudi Arabia after the oil crisis of 1973, became a very rich coun- try, a very important part of the world economy, courted by West- ern banks and it had the revenues to really start to develop,” he say. “And Yamani was really the man at the spigot,” Yergin added. Also during the early 1970s, he global oil and gas fami- debate and think logically. Yamani Yamani began the long process ly was on Tuesday, 23 Feb- earned higher education degrees of negotiating for Saudi control ruary, 2021 thrown into abroad, at a university in Cairo, T of what was then the Arabian mourning following the demise New York University and Harvard, American Oil Co., which was con- of Sheikh Ahmed Zaki Yamani, before heading back to Saudi Ara- trolled by four U.S. companies: Saudi Arabia’s long-serving oil bia, where he gained a reputation Exxon, Chevron, Mobil and Texa- minister who was instrumental in as a brilliant lawyer and newspa- co. Yergin says Yamani played his catapulting the Kingdom into the per columnist. He was, in the late cards very carefully, negotiating a energy powerhouse it is today. He 60s and the 70s, what Saudi Ara- deal that allowed the kingdom to died in London at the age of 90. bia needed. control the company, now known Yamani held enormous sway At the time he took over the as Saudi Aramco, without any dis- on the global stage during his job, the United States dominated ruption to service. nearly 25 years as oil minister, the world’s oil trade and Saudi Among the successes, Yamani starting in 1962, and became fa- Arabia was a middling producer, also experienced traumatic mo- mous for engineering the 1973 oil not yet discovering it has much ments during his time in office. In embargo. larger fuel resources than its March 1975, he was present when A devout Muslim, Yamani was neighbours, according to The Wall King Faisal was gunned down by born in the holy city of Mecca on Street Journal. a nephew of the monarch. 30 June, 1930. The son of an Is- As oil minister, Yamani quickly Later that year, Yamani’s life lamic judge who taught him to consolidated the country’s repu- was in danger again. In Decem-

34 Tribute 02:21

I also personally recall how HE Yamani was a piv- otal figure in bringing people together. This was partic- ularly on display during the holy months of Ramadan, when he routinely hosted informal ministerial consulta- tions in Taif to brainstorm current market developments to help build consensus for official OPEC conferences.” ber 1975, Venezuelan assassin Carlos the Jackal and five others stormed an OPEC meeting in Vi- enna, killing three people and tak- ing Yamani and dozens of others hostage. It was a very traumatic experi- ence for Yamani because he was reportedly threatened multiple times by the terrorists. In 1986 Yamani was dismissed after fall- ing out with senior members of the Saudi royal family, including King Faud, over oil prices and output. Although the cause of his death was not immediately Sheikh Ahmed Zaki Yamani (centre) talking to a friend, in the picture with them reported, Yamani was believed is Muhammadu Buhari in the 70s to be in failing health in the final years of his life. he spoke, everyone paid attention ed in the Geneva I and Geneva II with what I call pin drop silence. agreements. ...Barkindo condoles with Saudi He was charismatic and eloquent, “They constituted turning authorities as well as humble and deeply re- points in the international oil in- Secretary General of OPEC, ligious.” dustry, bringing OPEC and its Mohammad Sanusi Barkindo has His time as minister covered Member Countries more promi- condoled with the authorities of more than 24 years and 75 OPEC nently to the fore. the Kingdom of Saudi Arabia over Ministerial Conferences, of which “I also personally recall how the death of its former Minister he was President of seven, Bar- HE Yamani was a pivotal figure of Mineral Resources, Sheikh kindo noted. in bringing people together. This Ahmed Zaki Yamani. “This included his very first was particularly on display during He said in a letter he person- OPEC Conference, the fourth for the holy months of Ramadan, ally signed and addressed to HE the Organization, held at the then when he routinely hosted informal Sheikh Abdul Aziz bin Salman, new OPEC headquarters in Gene- ministerial consultations in Taif to Minister of Energy that “on behalf va in 1962. “In the following years, brainstorm current market devel- of OPEC, we extend our deep- he offered great leadership and opments to help build consensus est and heartfelt condolences to wisdom to the Organization and for official OPEC conferences.” the family and friends and to the was directly involved in a number The OPEC scribe further said Kingdom of Saudi Arabia”. of landmark OPEC statements that Yamani’s strong leadership, He pointed out in the letter and decisions focused on Mem- his dedicated service and broad that Yamani was an icon of the ber Countries sovereign rights vision for OPEC has left a rich world of oil and a leading light in over their natural resources. This legacy for the Organization. The the formative years and decades included the ‘Declaratory State- OPEC Secretariat reflects on his of OPEC. “I recall vividly and with ment of Petroleum Policy in Mem- contribution and significant role fondness his patience and gra- ber Countries’ in 1968, followed in shaping the Organization’s his- ciousness at our meetings. He by a number of developments in tory with great admiration and was an active listener who when the early 1970s that culminat- pride.

35 Guest Column 02:21

PIB 2020: Perspectives on the NNPC Limited Provisions

–Professor Omowumi O. Iledare

Preamble: icymaking and supervisory functions, if government retains the ownership The 65 Sections on Petroleum In- effectively. More so when the 2020 of all NNPC Limited shares solely and dustry Governance and Institutions PIB envisions, and understandably so, perpetually. (PIGI) in the Chapter One of Petroleum that all employees of the current DPR However, NNPC Limited is subject Industry Bill (PIB) 2020 seek to elimi- shall be transfer to the Commission to the Code of Corporate Governance nate the amorphous governance and and the Authority. Let me also add of the Securities and Exchange Com- institutional ineptness that have un- that the way and how to balance the mission but not subject to the provi- dermined Nigeria petroleum industry needed autonomy and independence sions of the Fiscal responsibility Act growth for decades. The PIGI chapter of the Commission and Authority with 2007 and the Public Procurement Act of the 2020 PIB strives to create and transparency and accountability rudi- 2007. Hence, the commercial insti- strengthen the industry governance ments is quite fuzzy in the PIB 2020. tution in the PIB 2020 would operate institutions in pursuant of an effec- It is important to have clarity on who like private commercial company with tive and efficient value creation and is to be held politically accountable for capitalization and trading of shares in delivery to stakeholders. The princi- institutional and governance ineffec- any stock exchange market within a ples of clarity and separation of roles, tiveness and inefficiency in the oil and recognized jurisdiction. The incorpora- resolute focus, transparent and good gas sector, should they occur! tion of NNPC Limited under CAMA is governance across the petroleum val- a declaration of the willingness for ac- ue chain trigger the PIGI provisions in PIGI Provisions on the Commercial countability and commercial efficien- PIB 2020. The core objectives of the Institution—the NNPC Limited cy with a protective tool for investors Petroleum Industry Governance and The primary commercial entity and, perhaps, minority shareholders. Institution provisions in the PIB 2020 established according to Part IV of Perhaps this is just what ought to be is imperative in order to drive the re- Chapter One of PIB 2020 is a limited but it seems like it is not what is going form process. by shares Nigerian National Petroleum to happen. There needs to be some In the January 2021 op-ed published Company under Companies and Allied clarity or redrafting of the provision. in this magazine, I observed that PIB Matters Act, as proposed in Section Section 57 (1) on transfer of em- 2020 exhibits a clear departure from 53. At the time of its incorporation, ployees and the prescriptions of con- the six institutional framework and Section 53 (3) vests the ownership of ditions of service is worrisome and governance structure proposed in the all shares to the Federal Government, may be burdensome. I hasten to say PIGB 2018, and I offered a scholarly which the Ministry of Finance Incor- the diminishing marginal productiv- perspectives on the policymaking and porated holds on behalf of the Gov- ity of labor in NNPC leaves much to the two regulatory institutions in that ernment. However, there is no spec- desire for NNPC limited. The NEPA edition. I tactically expressed the view ificity with respect to the timing or experience also offers some relevant that the 2020 PIB did not seem to pro- period to transfer or sell these shares perception in the evaluation of Section vide the necessary tools and skill sets to interested stakeholders in the PIB 57 (2) with respect to NNPC Ltd obli- required by the Minister of Petroleum 2020 as was the case in PIGB 2018. gation to fulfill NNPC pension scheme. Resources to deliver the assigned pol- Perhaps this omission is intentional One would recommend against such obligations if NNPC Ltd shares were to be attractive. Certainly, NNPC has su- perior technical capacity, which allows it to influence the policy and regulatory institutions well. Rather than transfer such skill sets to NNPC Limited, be- cause of palatable service conditions, but with limited ability to add value; re- location of such staff based on techni- cal competency criteria to where they can better be valued is imperative. Of course, invoking or choosing patrio- tism path rather than self-preservation path is advisable to employees during exit interviews.

36 Guest Column 02:21

The incorporation of NNPC Limited under CAMA is a declaration of the willingness for accountability and commercial efficiency with a protective tool for investors and, perhaps, minority shareholders. Perhaps this is just what ought to be but it seems like it is not what is going to happen. There needs to be some clarity or re- drafting of the provision.

Section 58 established the Board Federation PSC Oil, if the Commis- ment on NNPC to perform non-com- of NNPC Limited, which shall perform sion chooses to engage NNPC. I do mercial roles bothering on regulatory its duties accordingly. Section 59 (2) not agree to the Commission having a and policy functions, over the years. empowers the President to appoint commercial role on behalf of the Fed- The lifecycle of NNPC management members of NNPC Limited Board but eration. As a regulator, there must not teams has also affected the perfor- noted such power of the President to be an evidence of regulatory capture mance of the corporation as well. For appoint becomes obsolescent when by any of the stakeholders. To be an example, NNPC had 19 Group Man- NNPC Limited is not wholly owned by effective and unbiased regulator, the aging Directors with an average of 2 the government. It is doubtful, though, Commission must be above board. years per tenure in comparison to Sau- that politics would not truncate or un- This is playing back the inherent error di Aramco’s 9 years per tenure. NNPC dermine the desire for an independent in the NNPC Act with respect to the has not had technically independent and technically competent Board. Sec- way NNPC sees the Nigeria Petroleum Board members for years. That NNPC tion 59 (5) stipulates clearly that share- Inspectorate of old and even the DPR has not met the commercial perfor- holders of NNPC Limited shall deter- of today. mance goals remains understandable mine the composition of the Board in PIB 2020 did not refer in a categor- but objectionable. accordance with the provisions of the ical sense, that NNPC will cease to be I remain very skeptical, that vol- Companies and Allied Matters Act. state owned and become privatized. untary migration of NNPC current That the government is willing to allow Yes, the idea of an incorporated joint assets to IJV would matter much in private funding of NNPC is commend- venture floated in the Bill is not synon- this regards. I know people tend to able. The implication of such decla- ymous to privatization, in my opinion. reference the NLNG as the benchmark ration reflects the clear commercial Thus, the incorporation of NNPC un- to support the IJV concept. Let me objectivity and accountability to in- der CAMA as NNPC Limited does not hasten to suggest the selling off all vestors with an enablement to declare make it a privately owned corporation JV assets to NNPC Limited as a seed bankruptcy if needs be. through incorporated joint venture and circumvent the imposition of how Section 64 states clearly the object of the existing joint operating agree- NNPC is to operate the JV assets in of the NNPC Limited without mincing ment. There is no reference to listing the 2020 PIB. Finally, if NNPC Limited words. It is obvious from Section 64 of shares or selling shares in a specifi- is to be profit-oriented, autonomous in made no mention of the traditional oil cally stated timeframe in the PIB 2020, funding, transparent and accountable, and gas policy influencing roles and but only an expression of the possi- NNPC limited must own, operate, and socio-political role and quasi-fiscal ac- bility it may happen is observable. Of managing its assets as a commercial- tivities. Thus, the object of the NNPC course, Section 65 states that, though ly efficient and effective corporation. Limited is purely commercial meaning it is still state owned, NNPC Limited This, however, will only be possible if value addition to shareholders. There envisaged becoming financially -au its Board of Directors is apolitical and is a clear delimitation between com- tonomous with no public funding. This technically competent in accordance mercial and non-commercial roles for proposition is a welcome relief from to CAMA rules of engagement. It NNPC Limited. Perhaps an omission, politically strenuous and cumbersome seems to me that Section 59(2) under- it would seem that if the emphasis is national budgetary process, if it hap- mines that possibility. on commercial operations alone, are pens. The fact that the IJV concept is In conclusion, the provisions in the exploratory and appraisal venture with voluntary makes the idea taciturn. 2020 PIB on NNPC Limited is like an a low likelihood of commerciality ex- old wine in new wineskins. I would cluded in the object of NNPC Limited. Concluding Remarks on NNPC Lim- rather put my bet on the provisions The emphasis of no non-commer- ited. on the New NNPC in the PIGB 2018 cial roles means that the policy and NNPC has technical capacity com- passed by the eighth National Assem- regulatory responsibilities of NNPC, parable in my opinion to its global bly of the Federal Republic of Nigeria that have been aptly described as the National Petroleum Corporation coun- to deliver the objects of NNPC Limited, agency roles of NNPC, shall no longer terparts; its output efficacy, however, than put my money on the provisions exist after the passage of the 2020 leaves much to desire in comparison in Chapter One of the 2020 PIB to de- PIB in NNPC Limited. It is worrisome, to its peers. Perhaps, as suggested in liver the commercial efficiency objects however, that the 2020 Bill wants many cycles, the low efficacy is attrib- of NNPC Limited. NNPC Limited to continue to market utable to the demand of the govern-

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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 02:21 WOMEN’S CORNER Profi table Ways to Manage Your Finances

–Favour C. Nrabalu

oney is an important as- money unnec- for wanting pect of life that we can’t essarily. to manage Mdo without. Managing it, our fi nanc- however, is a different ball game  Plan Ahead. es better is altogether because how we man- After creating in order to age it is evident in how it works your budget, guarantee for us. make a plan a secured It is important to note that you on how to future be- don’t have to be a big fi nancial reduce your cause at expert to be able to manage or expenses to that time handle money well. You just have the barest minimum. It could we might likely not be strong to know the basics and follow be through buying foodstuff or enough to work after retirement. them judiciously and you will fi nd something you use regularly in How much you enjoy your retire- that money will begin to work bulk, it could be by cutting down ment in most cases is a reflection better for you. This month, we or totally eliminating things you of the wise or unwise decisions will be looking at some of those can do without, it could even be and choices you made with your tips that can help us manage our by reducing time spent with peo- fi nances when you were young- fi nances profi tably. ple who make you spend money er. Every month, make sure you on unnecessary things. put a percentage of your income  Track your spending. To begin no matter how little into a retire- this whole process, you would  Save for the short term. As ment/pension account which need to track all your expenses you cut down on unnecessary you wouldn’t be able to touch un- per month; how much you spend expenses, you will discover that til you retire. on transportation, feeding, enter- you have extra money to save tainment, and bills in general. Be and invest. Having a savings cul-  Try not to take loans. As much honest with yourself and include ture helps you have something to as you can, try not to take loans everything in the list including fall back on when an emergency because the interest from loans those ones you are not proud of. hits you, or you fi nd yourself in an will have you paying a lot more This will help you in the long run. unexpected fi nancial situation. A than you bargained for. You can, good example of such unexpect- however, save money for a par-  Create a budget. Having list- ed situations was the lockdown ticular need, be it a car or your ed all your expenses, you need of 2020 as a result of the Covid house rent or something you to create a budget that you can 19 pandemic. A lot of people genuinely need. adhere to monthly to spend wise- found themselves running hel- ly. This budget should contain ter-skelter trying to fi nd money in  Improve Yourself. Life is a each of your monthly expens- order to stock up food and oth- learning process and so is han- es including miscellaneous and er basic commodities. Whereas dling your fi nances. Start from how much you intend to save. As those that had saved money for the little you know and build on you create this budget, be deter- the rainy day didn’t have to do it; read books and listen to peo- mined to follow it through despite much running around. ple who teach about fi nancial temptations that might arise like management and eventually, you buying new clothes, shoes, bags  Invest for the long term. At would get better at it. or going where you would spend the end of the day, the reason

39 Industry 02:21

FEBRUARY SHORT TAKES –Compiled By Saidu Abubakar

Kyari Commends President Buhari’s Non-Interference in NNPC …Tasks Govts, Institutions on Technology, Innovation The Group Managing Director of the Nigerian National Petroleum Cor- poration (NNPC), Mallam Mele Kyari, has commended President Muham- madu Buhari for giving the Corpora- tion’s Management free-hand to de- liver on its mandate, saying that he remains the only president that has Sylva appointed Special Envoy NNPC Records 54% Increase in never interfered in the operations of His Excellency Timipre Sylva, Nige- Trading Surplus for November the Corporation. ria’s Minister of State for Petroleum The Nigerian National Petroleum Resources, has been appointed Spe- Corporation (NNPC) has announced a Minister launches Atlantic Energy cial Envoy for further consultations trading surplus of N13.43billion for the Infrastructure Park in Bayelsa with DoC Participating Countries, an month of November 2020 up by 54% The Minister of State for Petro- OPEC press statement has said. when compared to the N8.71billion leum Resources, Chief Timipre Sylva surplus recorded in October 2020. has performed the groundbreaking DPR clarifies crude accounting pro- ceremony of an Energy Infrastructure cess With $60 Per Barrel, FG in Dilemma Park being developed by Atlantic Inter- The Department of Petroleum Re- over Deregulation national Refinery and Petrochemical sources (DPR) has clarified the pro- •Fear of social disturbances stalls Limited in partnership with the Nigeri- cess it uses for accounting for crude new pump price an Content Development and Monitor- production in the country, noting that •FG now subsidising PMS without ing Board (NCDMB) at Okpoama. most incidents relating to oil theft oc- budgetary provision curs from the land terminals. As Brent Crude traded at $59.34 ExxonMobil posts first annual loss per barrel at the international oil mar- in 21 years Crude oil worth $20bn not account- ket, the federal government is in a …Yearly revenue slump by 31.5% ed for between 2005-2012 —Reps dilemma to increase the pump pric- to $181.5bn •Similar situation happened in es of premium motor spirit (PMS) or ExxonMobil recorded its first year- 2016 to 2019 subsidise the product. ly loss since 1999 after losing $22.4 •As DPR blames third party for billion in 2020, the oil supermajor said crude theft in land terminals Nigeria recorded $2.9bn in annual oil at an earnings call recently. The House of Representatives has and gas exports in November 2020 affirmed that crude oil worth over $20 Nigeria sold $2.89 billion worth of New Regulations In Oil Industry billion could not be accounted for be- oil and gas between November 2019 Seeks Forex Parity tween 2005 and 2012, according to and November 2020, the Nigerian The Technical Committee on Pre- the forensic audit conducted by the National Petroleum Corporation has mium Motor Spirit (PMS) Pricing Ad-hoc Committee investigating said. Framework, has issued new regula- Crude Oil Theft. tions on the pricing, importation, and COVID-19: Uncertainty Reigns as distribution of petroleum products in NPA expects 20 ships with petro- OPEC Moves its 60th Anniversary Nigeria, including the parity of forex leum products, others at Lagos port Celebration from Feb to May for marketers. The Nigerian Ports Authority (NPA) The organization of petroleum ex- says it is expecting 20 ships laden with porting countries has postponed its OPEC: JMMC optimistic about re- petroleum products, food items and 60th anniversary celebration which covery in 2021 other goods in February. was slated for the 26th of February The 26th Meeting of the Joint Min- 2021 in Baghdad, the Iraqi capital, to isterial Monitoring Committee (JMMC) DPR Targets $500m from Signature May 2021. took place via videoconference on Bonuses to Boost FG’s Revenue Wednesday, 3 February 2021, under The Department of Petroleum Re- NNPC Rallies Industry Stakeholders the Chairmanship of HRH Prince Ab- sources, (DPR) yesterday said the for Upstream Cost Optimization dul Aziz bin Salman, Saudi Arabia’s Federal Government stands to rake ….As Sylva Launches NUCOP Minister of Energy, and Co-Chair HE $500m from the ongoing signature The Nigerian National Petroleum Alexander Novak, Deputy Prime Minis- bonuses to be awarded to 57 margin- Corporation (NNPC) has called on ter of the Russian Federation. al oil fields in the country. stakeholders in the oil and gas indus- try to join in working towards reduc-

40 Industry 02:21 ing operations cost to achieve the cation Agenda-Rabiu 2021 $10 or less per barrel production cost Founder and executive chairman, The Nigerian independent, Niger target. BUA Group, Abdul Samad Rabiu has Delta E&P, is anticipating the first flow said the proposed 200,000 barrels of gasoline from its 11,000 Barrels of Fuel scarcity looms as marketers per day BUA refining and petrochem- Oil Per Day (BOPD) refinery on the Og- decry high price at depots ical plant in Akwa Ibom will meet the bele field, in Rivers State, in the east Oil marketers have warned of im- federal government’s economic diver- of the country. pending fuel scarcity if the Federal sification agenda in the long run. Government does not find a lasting No Increase in Fuel Price in February solution to rising cost of the product Gas supply to power plants increas- – NNPC at the depots. es by 8.6% – NNPC In spite of the rise in the price of The Nigerian National Petro- crude oil in the international market, FG set to begin oil production in leum Corporation, NNPC, increased the Nigerian National Petroleum Cor- North East – Petroleum Minister gas supply to power stations in the poration (NNPC) has ruled out any The Minister of State for Petro- country by 8.6 percent in October increment in the ex-depot price of leum Resources, Timipre Sylva, has 2020, according to the NNPC’s latest Premium Motor Spirit (petrol) in Feb- revealed plans by the Federal Gov- Monthly Financial and Operations Re- ruary, 2021. ernment to begin oil production in the ports, MFOR. northeast. Speaking during a recent $2.7bn Oil Theft: Court Blocks interview on Channels Television’s Emulate Total’s Commitment To In- Shell’s Accounts as Feud with AITEO Newsnight in Abuja, which aired re- vestment In Nigeria, NCDMB Boss Worsens cently. Charges IOCs Legal fireworks between Shell Pe- Executive secretary of Nigerian troleum Development Company of Total to Change Name to TotalEner- Content Development and Moni- Nigeria Ltd and Aiteo Eastern E & P gies, Emphasizing Cleaner Energy toring Board (NCDMB), Engr Simbi Company Ltd over allegation of 16 French multinational oil company, Wabote, has charged International million barrels of crude oil diversion Total has said it would change its Oil Companies (IOCs) operating in the begin. A Nigerian Court has granted name from Total to TotalEnergies to country to emulate Total Exploration an interim mareva injunction direct- emphasise its strategy to become a and Production Company (Total E&P) ing 20 commercial banks to block the net-zero emissions company. in sponsoring new projects. accounts of oil giant, Shell Petroleum Development Company of Nigeria. Taskforce foils vandalism attempt NLNG’s Train-7: Police sets up tacti- on Agip facility in Bayelsa cal team for security Nigeria’s NNPC on track to begin PH Attempts by hoodlums to vandal- •As DSP Omo-Agege engages host refinery rehabilitation in Q1 2021 ize wellheads belonging to the Nigeri- communities State-owned Nigerian National Pe- an Agip Oil Company, NAOC in Olodia- The Nigerian Police Force has set troleum Corp. has concluded talks with ma community, Southern Ijaw Local up a tactical team for crisis manage- lenders to raise $1 billion for the reha- Government Area of Bayelsa State, ment and security in Bonny, follow- bilitation of the Port Harcourt refinery, has been thwarted by operatives of ing the planned commencement of industry sources disclosed Feb. 17. a private security firm, Dalon Security the construction of the seventh gas Services. processing plant of the Nigerian Liq- Shell to refund 2m barrels of oil over uefied Natural Gas Limited, NLNG, alleged false declaration in Nigeria NCDMB says Nigerian Oil and Gas commonly known as Train-7 project. Shell Petroleum Development Park will be completed in Q4 of 2022 Company of Nigeria Limited (SPDC), a Engr. Simbi Wabote, the Executive Nigeria loses $750m to gas flaring subsidiary of Royal Dutch Shell, will re- Secretary of the Nigerian Content annually –Reps fund about 2.1 million barrels of crude Development and Monitoring Board House of Representatives has said oil from the Trans Niger Pipeline in line (NCDMB), has revealed that the Nige- the country is currently losing $750 with a directive of the Department of rian Oil and Gas Park would be com- annually to gas flaring annually. Petroleum Resources (DPR). pleted in the 4th quarter of 2022. Ministry Of Finance Disagrees With NNPC Applauds President Buhari’s Dangote Refinery To Bail Nigeria Out Reps Over N2.8bn Payment To OPEC Choice of New NEITI’s CEO Of Recession, Says IMF Fund …Congratulates Dr. Orji on Ap- The International Monetary Fund The House of Representatives and pointment (IMF) has projected that Dangote the Ministry of Finance on Tuesday The Nigeria National Petroleum Refinery has the potential to rescue disagreed over the procedure for the Corporation (NNPC) has welcomed Nigeria from the current economic payment of the sum of N2.8billion with delight the news of the appoint- downturn as well as provide an elix- to the Organization of Petroleum Ex- ment of Dr. Orji Ogbonnaya Orji as ir for the country’s economy when it porting Countries Fund (OPEC Fund) the Executive Secretary of Nigeria is completed and start production by in 2017. Extractive Industries Transparency 2022. Initiative (NEITI). BUA’s 200,000bpd Refinery Project Ogbele Refinery in Nigeria to pro- Will Meet FG’s Economic Diversifi- duce first petrol product from Q2

41 Entertainment 02:21 10 Nigerian TikTok Producers to Watch in 2021

@jenni_frank29

@just_trixx

@gabbie_tori @aji_anje

42 Entertainment 02:21

–By Adeniyi Onifade

n the year 2020, TikTok as he fights to correct the stig- of the recent slo-mo effects made an impressive break- ma that “Africans do not have wave that has taken over so- Ithrough which was facilitat- water”. Dede has continued to cial media. She has expanded ed by the Covid-19 lockdown. portray his message in a fun- her content pool to include The application brought ny and informative manner video reels and nostalgic vid- special entertainment for peo- while being respectful of dif- eos. ple across all walks of life. ferences. While the platform’s global . Positive Vibes Only community of creators ex- . Meet The Magician @Jhayneey is a beau- pressed themselves through Auwal Marafa, aka 7ty creator who loves to dance, music and comedy, 3@9ja_Tricks, is a real-life dance. She’s fun and creative others however, used their magician. The Northern Nige- with all the trends and chal- platform to provide fashion rian performs an assortment lenges she hops onto without tips as this is extremely pop- of tricks in a variety of loca- looking out of sync with her- ular locally. tions, and is a beacon of Tik- self. Below is a list of local cre- Tok’s power of connectivity. ators with outstanding skills . Some Twin Magic – and talents that everyone . The Energy Goddess Twinzloves should watch out for in the With culture intersect- 8 Moyin and Doyin make year 2021. 4ing at a fast pace in Ni- up one of TikTok’s most pop- geria, certain people have be- ular twin accounts In Nigeria, . A Hidden Animator come arbiters of what is pop @Twinzloves, most popular If you’re a social media and what isn’t. By virtue of her for their video pranks. Their 1user in Nigeria, chanc- prominent place on TikTok, @ mother is a regular fixture in es are that you’ve seen at JenniFrank29 is one of Nige- their videos and they just en- least one of @Mark_Kacy’s ria’s biggest pop culture per- joy themselves while giving animated videos. Mark is an sonalities. Through a range their 476k followers a glimpse award-winning animator who, of dance routines, pop culture into the inner workings of their despite the ubiquity of his vid- crazes and duets, she has set lives. eos, prefers anonymity, which herself apart and continues to only adds to the allure that make strides while uplifting . The Imitator has made him so popular on Nigerian content. No one saw @Gabbie_ TikTok. Mark’s animation con- 9Tori coming. The content tent is funny, relatable, and . The Young Up-and-com- creator caught everyone un- interesting as he uses audio er aware, storming the platform extracts with his animation. 5 Ashley may be young with her brand of character Since starting his account, but he is set to be a meme imitations, accents and a per- Mark has managed to get king for years to come. @Ash- sonality like no other. over 19 million likes across all leyKeno17 is already setting of his videos. the pace for meme content . Living Her Free in Nigeria through his very Life . The African Water Man creative and relatable videos, 10 The unique pow- First getting TikTok-fa- which balance the actions er of @Just_Trixx is her ability 2mous as a comedian and text. to document her life without with a range of characters any restriction. She is one of that he created for himself, @ . The Slo-mo Queen a number of young Nigerians officialdededuk has switched Popular content cre- who have taken TikTok by things up and has now be- 6ator, @Aji_Anje, rose to storm this year, building a fol- come the “African Water Man” fame for being at the forefront lowing of over 50k.

43 Column: Health Rendezvous 02:21

15 Simple Ways of Managing Stress and Anxiety

–Ibrahim Suleiman Ph.D.

tress is a feeling of being under hours per week of moderate-intensity and muscle tension). abnormal pressure which may physical activity (e.g. brisk walking), When you breathe in deeply Sarise from different aspects 1¼ hours of a vigorous-intensity ac- through your nose, your lungs ex- of your day to day life. Such as an tivity (such as jogging or swimming pands fully and your belly rises. This increased workload, serious illness, laps), or a combination of the two. helps slow your heart rate, and in job loss, loss of a family member, Exercise lowers your body’s turn lowers your blood pressure. heated argument or experiencing fi- stress hormones (such as cortisol). To take deep breaths, get com- nancial worries. It also helps to induce the release of fortable, close your eyes, and place Signs of stress and anxiety may endorphins and endocannabinoids, one hand on your stomach and the include; inability to sleep, trouble in which are chemicals that help to other on your chest. Inhale deeply, concentration, exhaustion, clench- boost your mood, improve concen- when you feel your belly rise more ing or grinding teeth, headaches or tration, improve sleep, reduce fa- than your chest then exhale slowly dizziness, aches and pains through- tigue and act as natural painkillers. while paying attention to how your out the body, mood swings, difficul- Endocannabinoids are responsible body relaxes. Count to 10 or 20 ty in relaxing, depression and low for the euphoric feeling, or “runner’s slowly while taking the breath. self-esteem. high,” that some people report after If you aren’t proactive in address- long runs. 5. Eat healthy meals ing these issues, they can have a If you don’t have the time for a for- Eat well-balanced meals. Do not negative impact on each area of mal exercise program, you can still skip any meals. Limit alcohol and your life. Here are 15 simple ways to find ways to move throughout your caffeine, which can aggravate anx- relieve stress and anxiety. day by biking instead of driving, using iety and trigger panic attacks. A the stairs instead of the elevator, park- healthy diet can lessen the effects 1. Identify What’s Causing The ing far away from the entrance, wash- of stress, build up your immune sys- Stress ing your car and cleaning your house. tem, level your mood, and lower your Large life changes are easy to blood pressure. Scientists have pin- identify as the cause of added stress. 3. Get enough sleep pointed some nutrients that seem These may include changes related When stressed, your body needs to help lessen the effects of stress to work, family, school, or something additional sleep and rest. A common on the body and mind, these may in- else. Sometimes your stress may side effect of stress is that you may clude food rich in vitamin C, magne- be coming from situations such as struggle to fall asleep. If this hap- sium and omega-3 fatty acids. lack of emotional control or strug- pens three times a week for at least gling with time management skills. 3 months, it means you are likely 6. Consider taking supplements Irrespective of your cause of anxiety, having insomnia. Habits that may There are numerous supplements identifying the trigger can help you help improve your sleep include; that reduces stress and anxiety e.g. work on addressing the root cause regular exercise, limiting alcohol Lemon balm, Omega-3 fatty acids of the stress. and caffeine intake, setting a sleep and Green tea (it contains numerous schedule, avoiding your electronics polyphenol antioxidants which re- 2. Exercise 30-60 minutes before bed and medi- lieve stress by increasing serotonin Exercise has been found to be tating at bedtime. level). Some supplements can inter- helpful in reducing stress and anxi- act with your medications or exert ety. This doesn’t mean that you need 4. Taking Deep Breath side effects, so you may want to dis- to start an extensive exercise routine. Your body naturally responds to cuss with your physician if you have Simple walking, jogging and run- stress by the fight or flight response any medical condition. ning (activities that involve repetitive (sympathetic response). During this movements of large muscle groups) reaction, the body releases stress 7. Cuddle can significantly lower your stress hormones and allow stress to builds Cuddling is a form of positive phys- and anxiety levels. Try to find an exer- up, resulting in faster heartbeat, ical contact that help reduce stress cise routine or activity you enjoy. quicker (but shallow) breaths and and anxiety by stimulating the release The benefits are best when you ex- rise in your blood pressure (which of oxytocin (one of the hormones that ercise regularly. Try having at least 2½ may cause the feeling of dizziness improves mood) and lowering the lev-

44 Column: Health Rendezvous 02:21

Accept that you cannot control ev- erything. Some people struggle with stress because they feel like they’re not good enough or not successful in life. Don’t be too hard on yourself. Try to keep things in perspective. Taking a time-out and stepping back from the problem helps clear your head. When you have healthy self-es- teem, you’re not likely to look for ap- proval from others, which can help you appreciate what you’ve accom- plished and what you want to do. This can help you to relax and live a more balanced life.

14. Talk to someone el of stress hormone (cortisol). This in hormones. Nature sounds are very Talk to a physician or therapist turn lowers blood pressure and heart calming. This is why they’re often in- for professional help. Therapy is not rate, both of which are physical symp- corporated into relaxation and med- only for people that have diagnosable toms of stress. itation music. mental health disorders. Your thera- pist can help you learn how to identify 8. Mindfulness Meditation 10. Learn To Prioritize the stress triggers that are in your life. Mindfulness meditation is a mind- Sometimes part of finding balance And, they can work with you to help body approach to life that helps us in life is learning how to set priorities you learn critical coping strategies to relate differently to experiences. around the tasks that you need to ac- to overcome stress and find the bal- It involves paying attention to our complish. Not all stressors are within ance that you’re looking for. thoughts and feelings in a way that in- your control, but some are. Connect with people. Spend time creases our ability to manage difficult Take control over the parts of with a friend or family member who situations and make wise choices. your life that you can change and will listen to you. It is a natural way Mindfulness Meditation can low- are causing you stress. One way to calm you and lower your stress. er stress, anxiety, and chronic pain to do this may be to say “no” more as well as improve sleep, energy lev- often. This is especially true if you 15. Express and maintain welcome els, and mood. To meditate, you will find yourself taking on more than humor. need to find a quiet place, get com- you can handle, as juggling many Maintain a positive attitude. fortable (sitting or lying down), focus responsibilities can leave you feeling Make an effort to replace negative your attention on a word, phrase, overwhelmed. thoughts with positive ones. It’s object, or even your breath, let your hard to feel anxious when you’re thoughts come and go and do not 11. Avoid procrastination laughing. It’s good for your health, judge them. Another way to take control of and helps relieve stress by improv- Relaxation techniques such as your stress is to stay on top of your ing your immune system and mood. aromatheraphy (the use of scents priorities and stop procrastinat- A study among people with cancer to treat your mood) have been used ing. Procrastination can leave you found that people in the laughter in- alongside mindfulness meditation to scrambling to catch up. This may tervention group experienced more decrease anxiety and improve sleep. cause stress, which negatively af- stress relief than those who were Some scents are especially soothing fects your health and sleep quality. simply distracted. Try watching a and calming, these includes the lav- Give yourself realistic deadlines and funny TV show or hanging out with ender, rose, bergamot, roman cham- work your way down your to-do list. friends who make you laugh. Find omile and orange blossom. the humor in everyday life. A good Yoga, (which is a less popular form 12. Break Down Goals laugh goes a long way. of exercise and meditation in Nigeria), While setting goals can be im- The bottom line is that although focuses on slow movement, stretch- portant and helpful in life, it can also stress and anxiety may arise in your ing, and deep breathing to lower your be a source of stress. If you find that workplace and personal life, there anxiety and stress by lowering cor- you’re struggling with stress and are many simple ways to reduce tisol levels (stress hormone), blood anxiety because of your goals, it can the pressure you feel. These tips of- pressure and heart rate. help to start breaking them down ten involve getting your mind away into smaller, more achievable goals. from the source of stress. Exercise, 9. Listen to soothing nature sounds mindfulness, music and physical in- Slow-paced instrumental music 13. Learn To Recognize Your Success timacy can all work to relieve anxiety can induce the relaxation response Do your best, instead of aiming — and they will improve your overall by helping lower blood pressure for perfection, which isn’t possible, work-life balance as well. and heart rate as well as stress be proud of however close you get.

45 Motoring 02:21

Hyundai Breaks World Record with new Electric Car

–By Yohanna Limlong

s the world drifts to clean Commenting on this achieve- towards Electric mobility. energy cars, Hyundai Au- ment, SS Kim, MD and CEO, “To avoid any range anxiety, Atomobile is leading the Hyundai Motor India, said, customers will be provided with pace as it’s Kona Electric SUV “Under the Emission Impossi- two chargers along with the car has made it to the Guinness ble Mission, Kona Electric has – a portable charger and an AC World Records. proved its mettle in the world’s Wall Box Charger. Additionally, The first fully made-in-India toughest terrains without com- in selected cities (Delhi, Mum- electric SUV has driven up to promising its performance. bai, Bengaluru and Chennai) a an altitude of 5,731m to Sawu- “It is a tech icon and the new Special Kona Electric fleet fitted la Pass in Tibet, comfortably normal as it is the first long- with power converter is provid- breaking the previous record of range green SUV with 452km/ ing emergency charging sup- 5,715.28m altitude by any elec- charge (ARAI Certified) enhanc- port to the customers. tric car. ing Indian customer confidence For customer convenience,

46 Motoring 02:21

During the expedition, the Kona Electric per- formed in harsh weather conditions like low tem- peratures, continuous snowfall and icy tarmacs. The Electronic Stability Control (ESC) ensured its sta- bility in all road conditions. During the entire drive, the Kona was charged (overnight) via the standard portable charger provided along with the vehicle. all Hyundai Kona Electric selling car. I would like to congratulate According to him, electric cars dealerships are equipped with Hyundai Motor India for having have come to stay, adding that 7.2kW AC charger to support achieved this and setting new Nigeria would not be left out in customers for Kona Electric benchmark in the annals of his- the transition from fuel-powered Charging.” he added. tory.” vehicles to electric cars. Congratulating Hyundai on During the expedition, the Mr Aliyu said the Federal Gov- the feat, Rishi Nath, adjudica- Kona Electric performed in ernment has invested about $1 tor, Guinness World Records, harsh weather conditions like billion in the auto industry in Ni- said, “A new precedent has been low temperatures, continu- geria as at 2019. set for the record as – Highest ous snowfall and icy tarmacs. The NADDC boss said the Altitude reached in an electric The Electronic Stability Control Stallion Group, which led the (ESC) ensured its stability in all innovation in electric cars in Ni- road conditions. During the en- geria, has invested about $300 tire drive, the Kona was charged million in Nigeria. (overnight) via the standard por- Also speaking, the Minister of table charger provided along Industry, Trade and Investment, with the vehicle. Adeniyi Adebayo, said electric cars would lead to a reduction in Nigeria joins the train fuel consumption and environ- Meanwhile, the federal gov- mental degradation. ernment has unveiled the first He said the Trade Ministry electric assembled car by auto- has been working with NADDC mobile giants, Hyundai. to review the automotive policy The Director-General, Nation- to further strengthen the auto- al Automotive Design and Devel- motive industry in Nigeria. opment Council, NADDC, Jelani He encouraged automotive Aliyu, in collaboration with the plants to invest in developing Stallion Group, has unveiled the electric vehicles in Nigeria. first locally-made electric car, The Chief Executive Officer of Hyundai Kona. Stallion Group, Anant Badjatya, The car has a price tag of N24 said the company, which has million, also has 5 years battery operated for over four decades and manufacturers’ warranty, in the country, has done signifi- 100 per cent electric, zero-emis- cant investments in the country. sion and Hassle-free charging at Mr Badjatya said electric cars home and workplace. are the future of the automobile Speaking at the unveiling in industry and Nigeria should not Abuja, the Director-General said delay keying into it. that by 2025, at least 30 percent He said Hyundai Kona is pow- of passenger vehicles in Nigeria ered 100 percent electrically will be electric. and has zero-emission.

47 Aviation 02:21 High Hopes over FG’s Plan to Unveil New Carrier, Airport Terminals

–By Abdulkarim Sani

he Covid-19 pandemic in- ation, Hadi Sirika said the Feder- vate Partnership (PPP), topmost deed has taken a deep toll al Government would deliver a of which will be the establish- Ton all sectors of the econ- new national carrier called- Ni- ment of a national carrier”. omy, especially the aviation sec- geria Air – in 2021. Other projects to be executed, tor which is considered as the Sirika said adequate prepara- according to him, are the estab- worst hit. tions had been made and that lishment of Maintenance, Re- Till date, the aviation sector is N78.96 billion had been budget- pair and Overhaul (MRC) facility, yet to recover from the devas- ed in the 2021 Appropriation Bill Agro-Allied Cargo Infrastructure, tating blow it suffered from the to implement the plan for a new Aviation Leasing Company, pandemic which ranges from national carrier, among other Search and Rescue Unit and job loss, revenue drain, disrup- projects. Aerospace University with the tions in operations and other The establishment of the na- support of International Civil unintended consequences. tional carrier, he said, would be Aviation Organisation (ICAO). However, the new year seems carried out in partnership with In addition, the minister said to be a glimmer of hope as Nige- the private sector. 10 new airports would come up ria joined other members of the He said: “In 2021, the sum in the country in states namely: global aviation community to of N78.960 billion is being pro- Benue, Ekiti, Nasarawa, Yobe, in consider the new development posed for capital expenditure at addition to others taken over by in the industry. the headquarters in the aviation the Federal Government, name- The federal government is ministry and the emphasis will ly Gombe, Kebbi, Dutse, and already rolling out new plans, focus on the implementation of Zuru airports. which it hopes will swiftly facil- the Aviation Roadmap as direct- Also, the General Manager, itate recovery and put the sector ed by Mr. President. Public Affairs, Federal Airports on a path of huge growth. “The roadmap would be im- Authority of Nigeria (FAAN), In an interview, Minister of Avi- plemented through Public-Pri- Mrs. Henrietta Yakubu said the

48 Aviation 02:21

In addition, the minister said 10 new airports would come up in the country in states namely: Benue, Ekiti, Nasarawa, Yobe, in addition to oth- ers taken over by the Federal Government, namely Gombe, Kebbi, Dutse, and Zuru airports. authority would pursue aggres- Overland Airways, Arik Air, and He said about five prospective sive infrastructure upgrade in Aero Contractors to sit up. carriers seeking to begin sched- 2021, as the government would Also speaking, an industrial uled flights in the year have now inaugurate new international relations expert, Comrade Abah exhibited signs of partnership airport terminals in Lagos and Ocheme, said the stakes could with either foreign investors or Kano. be higher for the sector in 2021 technical partners, but are pur- She also hinted that the gov- if government weighs popular suing their solo ambition as sole ernment was looking at other options in the model it should proprietors. projects for completion and in- adopt in concession of airports. Such ambition of Nigerians auguration in the year. Ocheme said the horizon still willing to invest in the avi- looks bright for the sector if the ation sector, Ohunayo said is Experts react Ministry of Aviation will do the enough testimony that people Considering the wide range needful by adopting the Green still have confidence in air travel. of plans which the government Field, Corporatisation and Full He urged the new entrants to has, industry experts believe for autonomy options in giving out adopt the Ibom Air template, the it to succeed, there must be syn- airports for management. lean operations model to keep ergy between the federal gov- According to Ocheme, the the business sustainable even ernment and foreign partners, Green Field option allows new as they are welcome to the in- while making other projections investors to handle airports like dustry. for the sector. fresh ventures by undertaking He said: “The new airlines are For instance, industry analyst construction of new runways welcome, those carriers who and Chief Executive Officer, Cen- and terminal buildings and oth- cannot survive, will die off. The turion Securities, Group Captain er facilities. new carriers are welcome; all of John Ojikutu (rtd) said:” Without Also, Ocheme, other indus- them have not shown partner- the participation of foreign tech- try experts, including Comrade ship initiatives with any foreign nical partners and investors, and Abdul Rasaq Saidu, who is the carrier or organisation.” the public, with the government Secretary-General, Association He said the government having some shares but not of Nigeria Aviation Profession- should look at options on how to controlling shares, the dreams als (ANAP), said 2021 presents package palliatives for airlines of credible national carrier and interesting times for the aviation and how government could cre- airport concession may end up sector if the government would ate a window for lending money being just dreams or another keep its own side of the bargain from banks by airlines with the disaster in government-owned in agreements it reached with moratorium. enterprises,”. union leaders on sundry mat- Ohunayo said: “The govern- However, experts say the new ters in the sector. ment should consider protec- investors will spring surprises in In the same vein, industry an- tionist policies for indigenous the sector in 2021 as new en- alyst and Head Strategy Zenith airlines. I expect something trants in the scheduled sub sec- Travels, Mr Olumide Ohunayo good for the much talked about tor – Green Africa Airways and said the year 2021 looks uncer- merger for Arik Air and Aero United Nigeria Airlines will alter tain for struggling carriers as Contractors merger instead of the states by introducing a low the effects of the pandemic and starting any project anew about cost model in airline business. other problems will push opera- the national carrier The two carriers will push op- tors who cannot stand the heat erators – Air Peace, Dana Air, of the kitchen out.

49 Property 02:21 States Hindering Affordable Housing Delivery — Survey

–By Danlami Nasir Isah

espite emphasis on afford- However, it is a different story commissioners were barely a able housing for Nigerians, in other states across the coun- year in office. Dthe housing delivery in the try. Recently, an assessment Such instability, which does country has remained abysmal- by the Association of Housing not allow for any meaningful ly poor with practically no end in Corporation of Nigeria (AHCN) programme for a ministry, which sight for the perennial crisis. on the state of housing in the is supposed to drive the state’s Unfortunately, states across country shows that many states housing delivery efforts. the federation have been identi- have not built any house in the In Taraba state also, housing fied as primary causes of poor past two to four years, while delivery has became a mirage housing delivery due to weak few others only increased their as the only 5000 housing units laws and neglect. stocks through private sector in- embarked on by the state gov- With about 20 million deficit tervention. ernment in the past four years and substantial contributions Beyond Lagos and perhaps are still at a snail speed. expected from public and pri- states like Anambra, Bayelsa, vate sectors, the country could Delta, Edo, Jigawa, Kaduna, Government’s Intervention at best expect 4.2per cent of the Kano, Katsina, Nasarawa, Niger, In it’s effort to support states, annual requirement. Ogun, Oyo, Taraba and Yobe, the federal Government has The state governments are whose housing projects are reiterated its determination to most culpable in terms of lag- still in embryonic stages, others complete the Nigerian Workers ging behind in shelter deliveries have paid lip service to shelter. Affordable Housing Develop- despite huge yearly budgetary Among the states that have ment programme, which was allocations to their housing min- failed to make any meaningful launched two years ago. istries. impact in the industry are Abia, The government had through Apart from Lagos state, Adamawa, Akwa Ibom, Bauchi, Federal Mortgage Bank of Ni- which recently announced the Benue, Borno, Cross River, Eb- geria (FMBN) entered into an completion of about 712 new onyi, Ekiti, Enugu, Gombe, Imo, agreement with leading labour homes through a partnership Kebbi, Ondo, Osun, Plateau, Riv- unions – Nigeria Labour Con- with private investors, other ers, Sokoto and Zamfara. gress (NLC), Trade Union Con- states seem not to make hous- A survey by the AHCN also gress (TUC) and the Nigeria ing a priority. identified an amalgam of - fac Employers’ Consultative Asso- With N33.952 billion budget- tors ranging from undue politi- ciation (NECA) – for the imple- ed for housing and community cal interference, misplaced pri- mentation of the scheme. amenities in 2021, Lagos state orities, poor implementation and The pilot schemes in 14 recently added a total of 244 non-execution of public housing states including Abuja is about homes in two schemes, nota- programmes as reasons for this 85 per cent completed and bly Courtland Luxury Villas, Ig- dismal performance in housing awaiting commissioning. bokushu, and Lekki Apartments delivery. For example, there is The first phase of the scheme which were delivered through no cash release to the ministries is expected to deliver 200 or private sector collaboration in after the budgets have been 100 housing units in each of the May 2020. signed in most of the states. six geopolitical zones for reg- The state also commissioned The situation in Abia State istered members of NLC, TUC last week a joint venture housing Ministry of Housing is a classic and NECA that contribute to the scheme located at Iponri, Lek- case of instability because of National Housing Fund (NHF) ki Phase II, and Idale, Badagry, frequent dissolution of cabinets. managed by FMBN. The house with a total of 468 home units of Only recently, the state’s cab- types included semi-detached various types. inet was dissolved when the bungalows and blocks of one

50 Property 02:21

Apart from Lagos state, which recently announced the completion of about 712 new homes through a part- nership with private investors, other states seem not to make housing a priority.

bedroom, two bedrooms, and project, he observed, had been individuals deal directly with the three bedrooms. the high cost of building mate- FMBN without any intermediar- The FMBN’s Unit Head, Public rials, especially cement which ies and equity contribution. Affairs, Ahmed Kaoje, disclosed sells for about N4, 000 per bag “It is only for houses that are that work has been completed and the COVID 19 pandemic. above N5 million that you pay in the first phase of the scheme. However, he stated that the equity of 10 per cent. Before it “We have commissioned the spread across states would de- was 20 to 30 per cent equity. We Enugu State sites. It is this pend on the governors’ ability to realised that many workers can’t COVID-19 that affected the donate land for the project. afford the equity that is why it commissioning of some of the Kaoje said: “It is going to be a was reviewed downwards. pilot scheme/centres. Only few continuous project, depending Kaoje said the groundbreak- are in the completion stages”, on the availability of land and off ing ceremony for the second he said. takers. phase of the scheme will kick The project kicked off in sites “The house are accessed off with a 90-unit estate at Ubu- located at Nasarawa, Kogi, La- through the National Housing ru, Ohaozara council in Ebonyi gos, Adamawa, Enugu, Abia, Ak- Fund (NHF) loan, where an in- State. A total of 200 housing wa-Ibom, Jigawa, Sokoto, Borno, dividual has to pass through units are planned in collabo- Katsina, Delta, Abuja and Ogun. the Primary Mortgage Banks ration with FMBN and labour The major challenge on the (PMBs) or ‘rent to own’ where unions

In Taraba state also, housing delivery has became a mirage as the only 5000 housing units embarked on by the state government in the past four years are still at a snail speed.

51 Market Arena 02:21 VALUECHAIN EXCHANGE & COMMODITY UPDATES AS AT 23RD FEBRUARY 2021 –Compiled By Favour C. Nrabalu

CRUDE OIL PER BARREL PRICE ($) EXCHANGE RATES PRICE (N) Official Rate Buy/Sell WTI Crude 62.17 GBP 531.28 / 532.68 Brent Crude 65.75 Euro 459.99/ 461.21 Nigeria (Bonny Light) 62.83 USD 379 / 380 Brass River 63.05 Parallel Market Qua Iboe 63.05 GBP 654 / 660 Euro 575 / 580 Arab Light 62.66 USD 475 / 480

Compared to last month, there has been an increment in Exchange rates experienced a significant increase. the prices of crude oil.

PETROLEUM PRODUCTS PER LITER PRICE (N) PRECIOUS STONES PRICE (N) PER GRAM Diamonds 1,690,875 Diesel 245 24 karat gold 22,187 PMS 163 Silver 342 While the price of PMS remains the same as at the time of this compilation, diesel has registered an increment in Even though value for diamond remains the same as cities such as Abuja. last month, gold experienced a little decline in its price as opposed to silver which increased by 33 Naira.

The following are the average prices of land in the following districts in Abuja

LAND PRICE (N) PER PLOT Jahi (Abuja) 45,000,000 Dawaki (abuja) 18,000,000 Gwarinpa 50,000,000 10 Hectares of Land in Gwagwalada 25,000,000 -150,000,000 Office space per square meter/annum 30,000 – 41,000

FOOD COMMODITIES PRICE (N) 50kg Bag of Rice (foreign) 28,000 – 35,000 50kg Bag of Rice (local) 20,000 – 26,000 100kg Bag of Beans (white) 30,000 – 45,000 100kg Bag of Beans (brown/drum) 28,000 – 45,000 100kg Bag of Maize 19,000 – 23,000 100kg bag of Groundnuts 15,000 – 35,000 100kg bag of Sorghum 22,000 – 25,000 Basket of Tomatoes 3,500 – 10,000 100kg bag of Soyabeans 20,000 – 35,000 50kg bag of Garri 12,000 – 15,000 100kg Onions 12,000 – 15,000 25 litres of Vegetable Oil 19,000 – 25,000 25 litres of Palm Oil 16,000 – 25,000 A kilo of Beef 800 – 2,200 A Tuber of Yam 300 – 1,000

52 Sports 02:21

Australian Open Fallout Serena in Tears after Losing to Osaka

–By Saidu Abubakar

he American great saw against Osaka. ‘Wimbledon is Williams’ best her latest bid for a re- “I don’t know. I’m done,” she chance’ Tcord-equalling 24th Grand said, before leaving the room. Williams has been aiming to Slam title ended by Japan’s Williams thanked her fans in a equal Margaret Court’s major three-time major champion post on Instagram shortly after record since her return from ma- Osaka, who won 6-3 6-4. the match. ternity leave in 2018. She gave the crowd inside “Today was not ideal out- Her 23 Grand Slam titles is Rod Laver Arena a long wave come or performance but it hap- the most by any player in the goodbye with her hand over her pens. I am so honoured to be Open Era, with 13 of Court’s ti- heart, leading to questions over able to play in front of you all,” tles coming before the tour be- the 39-year-old’s future. she wrote. came fully professional. She responded: “I don’t know. “Your support, your cheers, I Since her return, Williams has If I ever say farewell, I wouldn’t only wish I could have done bet- reached four Grand Slam finals tell anyone.” ter for you today. but lost them all, including to Williams became tearful “I am forever in debt and Osaka at the 2018 US Open. when asked a further ques- grateful to each and every single Former British number one tion about her unforced errors one of you.” Annabel Croft says Wimbledon,

53 Sports 02:21

where Williams has won eight ti- It is also her first loss against win from closing the gap on tles, is her best chance to equal a top five opponent at a hard Roger Federer and Rafael Na- Court’s record. court Grand Slam since she was dal, who jointly hold the men’s “Serena seemed to be in a beaten by Jelena Jankovic in the record of 20 major wins. happy place and I was thinking Australian Open last 16 in 2008. “When you’re chasing big this is it - this is the time she is Osaka, who has often spoken things that are related to the his- going to win her 24th,” Croft told of her admiration for Williams, tory of the sport, obviously it has BBC Radio 5 Live. said talk of the American retiring a lot of weight, a lot of pressure,” “Time is not on her side, made her “sad”. he said. though. You have to marvel at “I want her to play forever,” “Regardless of the amount of well she is playing considering Osaka said. “That’s the little kid years that you have played on there is such a huge difference in me. the tour and the experience that in age against some of her op- “Every time I play her, I feel you have, you still feel it on your ponents. like it’s something I’ll definitely shoulders. “The draw would weirdly have remember a lot.” “I’m proud and honoured to to open up for her [to win] but it Novak Djokovic, the men’s be playing at the same time is not beyond the realms of pos- number one and a 17-time she does and to experience her sibility.” Grand Slam champion, said he greatness is a thrill. She’s one of It is the first time in 18 years could “empathise” with Williams. the greatest athletes ever.” that Williams has lost an Austra- After winning in Melbourne, lian Open semi-final. the 33-year-old Serb is one more

54