JUNE 2020 VOL. 3 NO. 06 C ONTENTS 4 EDITORIAL 24 INDUSTRY 5 Global Upstream Investments Set for Buhari Kick-starts 15-year Low in 2020 6 PIGB: Stakeholders in Cautious Optimism 8 Intrigues as FG Finally Deregulates $2.8b AKK Gas Petroleum Sector 10 Publication of NNPC’s Audited Accounts Pipeline Construction Signals Openness 15 World LNG Demand to Plummet First …Project to unlock moribund Time in 8 Years 17 NCDMB Inaugurates New Women industries in the North Group, Fund for Women in Oil Sector 18 Treating Asset Protection as an Investment 30 Baru: The Life & Times of a Peaceful, Inspiring and Dedicated Oil Technocrat 32 COMMENTARY: Looking Over Kyari’s Shoulder 34 What it Takes to Get a Marginal Oil and Gas Field in Nigeria 40 JUNE SHORT TAKES COLUMN 42 Fête de la Musique — World Music Day ENTERTAINMENT 44 7 Nigerian celebrities who renounced 36 Law for Entertainment HEALTH NIMASA to Earn N12bn Revenue Annually from Idle 46 World Sickle Cell Day: Special Focus on Floating Dock ...As Jamoh the Cells of a Generation’s Didi Project Marks 100 Days in Offi ce MOTORING 48 Transporters Groan as FG’s Ban on Inter-State Movements Lingers AVIATION 50 Concerns Over Reopening of Domestic Flights PROPERTY 52 Experts Advocate Joint Venture Schemes 21 to Bridge Housing Defi cit Star of the Industry SPORT Dr. Omar Farouk Ibrahim Secretary General, African Petroleum 53 ‘I Will Never Forget This Day’ – Adepoju reminisces Nigeria’s historic Producers’ Organisation he 2018 NNPC Audit- where accountability is the ed account was re- norm, people around him Tleased this month by won’t even notice his pres- the nation’s oil company for ence. the fi rst time in history. This That is why it was often action attracts many com- said that African leaders mendations from the Indus- should concentrate on build- try far and near, and it was ing strong institutions that a promise redeemed by the will midwife a system that Group Managing Director of guarantees accountability, the NNPC, Mallam Mele K. fairness, and justice. It is President alone, all of us in Kyari. It will be recalled that pertinent to note that a lead- various highest positions of while delivering his inaugural er here doesn’t mean Mr. stewardship are leaders. His- speech one year ago, Kyari tory will always remember promised to be accountable us for the positive changes to Nigerians who according we made during our lifetime. to him are the real share- We at Valuechain Maga- holders of the corporation. zine will like to lend our voice Publisher/Editor-in-Chief too and commend NNPC for There is something cer- Musa Bashir Usman tainly wrong with our coun- the publication of the 2018 Acting Editor Audited report. We acknowl- try. A normal act which is Benjamin Ike edged that the report may viewed as a norm in other Deputy Editor climes is always like rocket Fred Ojiegbe not be perfect, but we want to encourage the corpora- science in our own environ- Contributors ment. If not, then how do we Gideon Osaka tion to continue to be trans- always fi nd it diffi cult to do Ironhand S. Chukwuemeka parent in its future dealings. Hauwa Muhammad Lawal As usual, this month’s edi- the right thing? The alien cul- Aisha Sambo tion is packed with juicy re- ture of mismanagement and Graphic Consultant ‘not doing it right’ has pene- Theresa Ogbonna ports for our esteemed read- ers. Do continue to keep a trated deep into our genes to Business Dev. Executives the extent that when anyone Adeniyi Onifade (South) date with us as we strive to Abdulkarim Sani (North) of us decides to do things keep you informed on the Circulation Manager happenings in the Industry right he will be seen as an Danlami Nasir Isah Angel. and across. Online Editor Regards. It is interesting to know Saidu Abubakar that when you pick an ‘Angel’ Photo Editor M.B. Usman amongst us and drop him in Bashir Bello Dollars NB. Feel free to send in your views any of the developed world Legal Adviser and have your say @ Lamir Kasim Idris (Esq.) [email protected]

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4 Industry 06:20

Global Upstream Investments Set for 15-year Low in 2020

–By Fred Ojiegbe

lobal upstream spending and fluctuating exchange rates, while reduced greenfield capital is expected to reach $383 every dollar cut will strike directly spending will make it difficult to Gbillion this year, the lowest to the bone,” said Rystad Energy replace declines with new produc- level in 15 years and a staggering upstream analyst Olga Savenkova. tion coming on stream. These two 29 percent decrease of $156 billion In the beginning of the crisis, factors could impact the stability compared to 2019, Rystad Energy it was assumed that global up- of the global liquids supply in the analysis shows following publica- stream spending would fall by 15- future, changing the industry land- tion of the industry’s first quarter 20 percent in 2020 around $80- scape for good. “Our research in- results. 100 billion below total investments dicates that about 125 E&Ps have With 2019’s upstream invest- in 2019 as operator budgets were thus far commenced spending ments calculated at $539 billion, already lean after the previous mar- cuts, amounting to a reduction of the decline is set to bring annual in- ket downturn. In this new price re- $100 billion in 2020. National Oil vestment to a level lower than that ality, operators were forced to cut Companies (NOCs) are the larg- of the previous downturn. Spending even deeper. est contributors to the global re- is also expected to be largely flat in In terms of percentages, the duction, decreasing spending by 2021, landing only marginally high- drop in investment is comparable $32 billion. Most shale operators er than 2020 at $386 billion. Before to 2014–2015. However, this time have revised their capital guidance the COVID-19 pandemic, Rystad around, industry spending is falling range as well,” Savenkova said. expected total upstream invest- from a lower starting point, which Although National Oil Companies ment would maintain last year’s will quickly affect industry perfor- would not normally be expected to levels, both in 2020 and 2021. mance, even in a short term. make such drastic cuts, the $25/ Shale and tight oil investments In 2014-2015, according to Rys- bbl of oil equivalent (boe) environ- is expected to take the biggest hit, tad, the 27 percent fall in spending ment has ushered in a new reality, now forecast to fall by 52.2 per- did not significantly impact produc- where even the most reliable com- cent year-on-year to $67.3 billion. tion performance as companies panies are tightening their belts Oil sands investments will follow, were able to adapt and streamline. and embracing deeper cuts. Im- with a decline of 44 percent to $5.1 Within all supply segments, some portantly, first quarter reports also billion. Other onshore investments players even managed to increase revealed that almost all majors are are forecast to fall by 23.4 percent y-o-y production. Virtually no pro- seeing production decline as an in- to $182.4 billion this year. duction was shut-in, even at the evitable part of survival, choosing Least affected in terms of de- facilities with the highest breakev- to optimize cash flows and provide flated investment is the offshore en prices, as the costs associated sustainable dividends. segment. Offshore deepwater with shuttering production were “Companies are now highly risk- spending is estimated to fall by too high. Spending cuts were main- averse, with finances and opera- 15.6 percent to $69 billion this year, ly delivered through lower supply tional performance under intense while offshore shelf will lose about chain costs and by cutting out un- pressure. Nevertheless, E&Ps will 14 percent, landing at $59.5 billion. necessary expenses. need to prepare for opportunities “As the impact will be more se- However, the industry’s ability to and threats that may await them vere than in the previous downturn, keep high costs per barrel is now once the crisis is past. Their future companies are fiercely defending being put to the test, with almost success depends on how prudent shareholder value and pivoting to- all supply segments cutting pro- they are in adapting new strategies, wards more conservative spending duction in 2020. In the longer-term, taking advantage of emerging op- strategies in the near-term. As the reduced brownfield capital expen- portunities and mitigating risks,” global upstream sector contends diture will make it more challeng- Savenkova concluded. with low prices, falling demand, ing to maintain existing production,

5 Industry 06:20 PIGB: Stakeholders in Cautious Optimism

–By Fred Ojiegbe

here is much anxiety and However, industry stakehold- commercial, regulatory and policy cautious optimism over the ers have continued to express institutions. It will make institu- Tpassage of the much-await- cautious optimism as they await tions more apolitical with well de- ed petroleum industry governance the passage of the bill. Dr. Frank fined criteria to select board mem- bill (PIGB) as the month of June Ihekwoaba, Chief Finance Officer, bers based on experience and comes to an end. Eroton Exploration and Production competence for value addition. This is based on promises Company Limited, while express- “There will be interconnectivity of made by government officials that ing caution, stated that the PIGB the value chain in terms of effec- the PIGB will be passed this June. will follow public sector model that tive regulatory framework with no The Speaker, House of Represen- rewards effort as opposed to re- room for price control or subsidy tatives, Femi Gbajabiamila had in warding result. “That the National along the value chain. PIGB estab- February during a courtesy visit by Assembly is still struggling to mus- lishes institutions to enforce fiscal a delegation of the Experts Advi- ter up the energy to pass a PIGB is policy and regulations effectively, sory Panel of the Nigeria Natural basically extreme procrastination equitably and ethically, in terms of Resource Charter assured that the that ensures Nigeria will remain revenue collections, lease admin- PIGB will be passed before the end moribund, archaic, unaccountable istration, corporate and communi- of June. He said: “The legislature and noncompetitive. That’s who ty responsibility,” he added. needs to work with you. We need we have been, who we are, and Corroborating Iledare’s sub- to work together. Oil and gas is who the inaction ensures Nigeria mission, Bank-Anthony Okoroafor, an integral part of our economy. remains. In that state of anomie, a immediate past Chairman, Petro- It remains the mainstay of our few benefit while the majority lan- leum Technology Association of economy, and so we have to work guish as usual. Nigeria, PETAN, believes the bill together to protect it. “It requires Professor Wumi Iledare, Direc- will be passed as promised. “It us to work with those who under- tor, SPE Africa Region, is optimis- will be passed. If the right PIB is stand the nuances of that sector. tic the bill will be passed. “PIGB passed, it will bring fiscal clarity For the oil and gas industry to de- at the end of June is plausible be- to our industry. Oil is being discov- velop, there has to be a symbiotic cause all the work was completely ered everywhere and we need to relationship. You have the knowl- done in the last assembly. Nigeria put our acts together. Investment edge and we have the capacity to has much more to gain if PIGB is will go to areas with better fiscals make it happen. “PIGB is on the passed. It will enhance transparen- clarity. We have lost a lot of invest- front burner. We intend to start the cy and accountability and improve ment by this decade that the PIB process soon. We’re hoping that investor’s perception. It would ex- has not been passed,” he stated. by June, we’ll be able to see the punge the amorphous governance For Dr. Chambers Oyibo, former light at the end of the tunnel.” of the oil sector with a distinctive Group Managing Director, Nigerian

That the National Assembly is still struggling to muster up the energy to pass a PIGB is basically ex- treme procrastination that ensures Nigeria will remain moribund, archaic, unaccountable and noncompetitive. That’s who we have been, who we are, and who the inac- tion ensures Nigeria remains. In that state of anomie, a few benefit while the majority languish as usual.

6 Industry 06:20

Rt. Hon. Femi Gbajabiamila Professor Wumi Iledare

National Petroleum Corporation, try Bill (PIB) was therefore split Disappearing Opportunity NNPC and Chairman/Chief Execu- into four parts, namely: Petroleum There has been a flight of new tive Officer, Prime Energy Resources Industry Governance Bill (PIGB), investment opportunities from Ni- Limited, the circumstances are no Petroleum Industry Administrative geria to our neighbour’s in Ghana, longer the same. “Oil prices are very Bill (PIAB), Petroleum Host and Angola and Equatorial Guinea who low now. If our legislators are seri- Impacted Community Bill (PHIB) have more defined laws and gover- ous about passing the PIGB, they and Petroleum Industry Fiscal Bill nance structure. Experts estimate must have done a lot of work on it. (PIFB). In January 2018, the Pe- that the country loses approxi- The law that regulates the most im- troleum Industry Governance Bill mately $15million annually in lost portant industry in Nigeria shouldn’t was passed by the House of Rep- investments due to loss of inves- take more than 18 months. Our resentatives. This marked a signif- tor confidence in the industry. The legislators don’t seem to know the icant milestone in the journey of passage of the bill will engender impact of making this law as it af- replacing the obsolete Petroleum investor confidence in the industry fects the citizenry who have been Act (1969), as the Senate had ear- and attract more Foreign Direct In- waiting endlessly. Can you imagine lier passed the PIGB in May, 2017. vestments. how long it has been from the re- Some of the underlying principles gime of former President Olusegun include: Effective and capable in- Post COVID-19 Oil Economy Obasanjo to President Muhamma- stitution, clear roles and account- With oil prices hitting an all du Buhari? He asked. abilities, transparency and ease of time low as a result of price wars The concerns of the stakehold- doing business. Core objectives in between Saudi Arabia and Russia ers, no doubt stem from the fact the PIGB include: i. To provide a one as well as reduced demand occa- that the bill originally known as pe- stop shop Regulatory Authority; ii. sioned by the COVID-19 pandemic, troleum industry bill, PIB, has been To provide functional commercial it is apparent that oil dominance in the works for close to two de- entities; iii. Discretional powers as an energy source of choice in cades, as it was first introduced in abolished; iv. Improved technology the post COVID-19 economy will the National Assembly in the Year and innovation; v. Clarity of roles be challenged. The time is there- 2000, thereby making it easily the and accountabilities; vi. Create ef- fore ripe to streamline the num- bill that has spent the longest time ficient and effective governing in- ber of MDA’s involved in the gov- under our bi-cameral legislative stitutions with clear and separate ernance structure in the Nigerian bodies. Having suffered a setback roles in the Petroleum Industry; vii. Oil and Gas Industry, which con- in the 7th Assembly, it was decid- Establish a framework for the cre- forms to the overall target of the ed that a new approach would be ation of commercially oriented and Government in reducing cost of adopted to facilitate its passage profit driven petroleum entities governance based on current real- and signing into law. The bill was that ensures value addition and ities and scarce resources. A sin- subsequently unbundled into sev- internationalization of petroleum gle regulatory body would ensure eral segments by the 8th Nation- industry; viii. Promote transparen- end to end project cycle approval al Assembly, which was aimed at cy and accountability in the admin- which will greatly reduce trans- making it easier for the less-con- istration of the petroleum resourc- action cost, eliminate regulatory troversial aspects of the bill to es of Nigeria; ix. Create conducive competition and enhance value have easy passage while the more business environment for the pe- maximisation. It will also promote controversial aspects are dwelt troleum industry operations. the Executive Order 001 on Ease of more upon. The Petroleum Indus- Doing Business in Nigeria.

7 Industry 06:20 Intrigues as FG Finally Deregulates Petroleum Sector

–By Gideon Osaka

he news of deregulating Nigeria’s petroleum sector Tand completely removing fuel subsidy has been greeted by mixed reactions especially from stakeholders in the indus- try. Stakeholders believe that the deregulation of the sector ought to come with a legislation from the National Assembly to ce- ment the proclamation. As such, they urged the fed- eral government to ensure that the policy is not a mere procla- mation. In the same vein, oil market- ers also called on the Federal Government to immediately publicise the terms of the full President Muhammadu Buhari deregulation that is already in effect, so as to eliminate uncer- ulate the downstream would re- for Energy Economics (IAEE), tainty and guide operators in the quire change in the existing leg- affi rmed that the downstream sector. islative framework and market sector cannot be deregulated by Mr. Joseph Nwakwue, Chair- structure in my humble opinion. a simple pronouncement. man, Society of Petroleum En- “We may have set the pump Iledare, who currently heads gineers (SPE) Nigerian Council, price at cost recovery levels but the Ghana National Petroleum argued that the government have not taken the necessary Corporation (GNPC) Professori- was yet to deregulate the down- steps towards deregulating the al Chair in Oil and Gas Econom- stream, especially as there was sector” ics and Management at the In- yet to be an amendment or Also speaking, Professor stitute for Oil and Gas Studies, change in the existing legislative Wumi Iledare, immediate Past University of Cape Coast, Gha- framework. President of the Nigerian As- na, said: “Deregulation has to be He said, “Deregulation? That sociation of Energy Economics backed by dissolution or discon- is a tall one. Do you fi x prices in (NAEE) and former President tinuation of an existing regula- a deregulated market? To dereg- of the International Association tion or law.

Kyari noted the demands for a law backing the deregulation, adding that plans are in place to ensure that it is backed with legislation so as to give a leeway for market operators to determine prices of petroleum products.

8 Industry 06:20

“The Petroleum Act 1969, as decisions are arrived at, so that it entailed that marketers now amended, empowers the Minis- it could be easy to be obeyed. have the freedom to fi x the price ter to set the price and the Pe- As an association, PETROAN of the commodity and sell above troleum Products Pricing Reg- has members who have over the price given by the agency. ulatory Agency (PPPRA) Act 300,000 fi lling stations across Meanwhile, few days after became the enabler even from the country.” releasing the Memo, the Ex- the name. It will be recalled after several ecutive Secretary, PPPRA, Ab- He argued that the pronounce- calls for civil society organiza- dulkadir Saidu, explained that ment of the Federal Government tions and analysts on the need the agency would continue to as concerns the deregulation of for market forces to determine monitor trends in the crude oil the downstream sector was in prices, the federal government market and advise the Nigerian order, noting, however, that be- restructured the downstream National Petroleum Corporation fore taking such decision, the segment of the Nigerian oil in- (NNPC) and oil marketers on the government should have con- dustry through the removal of monthly guiding price for the sulted with critical stakeholders, fuel subsidy. commodity. especially PETROAN and other This is coming as the global “The price cap per litre in re- oil marketers. oil industry continues to grapple spect of Premium Motor Spirit He said, “There is no hard and with the low demand and subse- (PMS) is removed. From the fast rule as to how a particular quent price slump occasioned commencement of these Reg- policy can be reviewed. Most by the Coronavirus pandemic. ulations, a market-based pricing policy is mostly an executive According to the GMD of the regime for PMS shall take ef- exercise or order. If the Minister Nigerian National Petroleum fect,” he said. of Petroleum Resources, which Corporation (NNPC), Malam However, despite removing is Mr. Muhammadu Buhari, is Mele Kyari, Nigeria would no lon- fuel subsidy by the federal gov- speaking through the Minister ger be paying for under-recovery ernment, the Petroleum Prod- of State for Petroleum Resourc- or subsidy on petrol, especially ucts Prices Regulatory Agency es to say that deregulation has due to the current development (PPPRA) maintained that it has started; we cannot fault it. in the global oil sector. the regulatory power to still fi x “The minister is not wrong if Kyari noted the demands for petroleum prices for marketers. he said that deregulation has a law backing the deregulation, In fact, the agency recently started. The only thing I would adding that plans are in place to announced a new retail price request him to do is to engage ensure that it is backed with leg- band for oil marketers. In anoth- PETROAN and other stakehold- islation so as to give a leeway for er circular dated May 31st, the ers. This is because in the petro- market operators to determine downstream regulator said oil leum sector, PETROAN is a very prices of petroleum products. marketers are now expected to critical stakeholder, because we Checks have shown that sell petrol within the price range are the last mile in the distribu- about N650bn was budgeted in of N121.50 and N123.50. tion chain, before the consum- the 2020 budget for fuel subsi- Part of the circular reads: ers get the products for their dy, the amount which the GMD “Please recall the recently ap- vehicles, or get gas in their cyl- of the Corporation said can be proved pricing regime which be- inders to go and cook. channelled to other infrastruc- came effective March 19, 2020, “PETROAN is the bulwark of tural projects in the country. and the provision for the es- the entire petroleum industry, Similarly, the Federal Govern- tablishment of a monthly price from the upstream to the mid- ment through the PPPRA says band within which petroleum stream, to the downstream. Ev- it has removed the cap on Pre- marketers are expected to sell erybody’s efforts culminate into mium Motor Spirit (PMS) price, PMS at the retail stations.” the our receptacle. It is so critical popularly known as petrol. statement said. that whatever that is been done This was disclosed by the The recent statement by the in the oil industry, be it policies, Petroleum Products Pricing agency has cast doubts in the be it directives; it is always im- Regulatory Agency (PPPRA) via air as to whether the petroleum portant to hear stakeholders’ a memo titled “Market Based downstream sector has been opinions. Pricing Regime for Premium deregulated since the PPPRA “And we, who are the ones Motor Spirit (PMS) Regulations, still holds the power to set price who are at the ground level, 2020” threshold for marketers. need to contribute to how these With the new development,

9 Industry 06:20

Publication of NNPC’s Audited Accounts Signals Openness –By Benjamin Ike rior to the advent of the cur- stemmed from the rising number nancial and operational report of rent administration in 2015, of ad hoc, makeshift practices it the corporation. Pthe level of secrecy associ- introduced to work around its The early gains of the NNPC ated with the operations of the deeper structural problems. And publication of its operations and Nigerian National Petroleum Cor- those poor practices came with fi nancial reports were enormous poration (NNPC) presumably en- high costs to the Nigerian econo- as public and investor confi - couraged high corruption, perfor- my and nation as a whole. dence was gradually restored in mance failures, ineffi ciency and But President Muhammadu Nigeria’s oil and gas sector. mismanagement of the nation’s Buhari had on assumption of However, with the publica- oil resources. offi ce initiated a reform in the tion of the monthly fi nances, the At that time, NNPC’s faults NNPC, targeted at enhancing books of the corporation were were described by a number of transparency and competitive- described as being relatively scathing reports, many commis- ness of Nigeria’s oil and gas in- opened for the public to access sioned by government itself. Var- dustry. information and form the right ious audit reports had uncovered Also in an unprecedented judgment and conclusions. cases where the corporation ap- move to restore public confi - The challenge was that de- parently failed to remit revenues dence in the activities of the spite what seems to be an im- running into billions of dollars NNPC, Minister of State for Pe- provement in the efforts to en- into the Federation Account and troleum Resources at that time, hance transparency, subsequent that the opaque activities at the Dr. Ibe Kachikwu, who doubled audit reports still indicted the NNPC had made tracking pay- as the Group Managing Director NNPC for running its operations ments from oil and gas compa- of the NNPC in 2015, opened in an opaque manner. nies quite challenging. up the books of the state-run oil For instance, in its 2017 Re- The largest problems with company to public scrutiny with source Governance Index, the the corporation at that time the publication of the monthly fi - Natural Resource Governance

10 Industry 06:20

President Muhammadu Buhari Mallam Mele Kolo Kyari Mr. Waziri Adio

Institute (NRGI), an international and most questionable activities, National Oil Company erased extractive industry transparency notably earnings by its subsid- all doubts about its total com- watchdog, criticised the NNPC iaries, the costs of its operations mitment to transparency and heavily, alleging that despite and its signifi cant spending on accountability in its business some improvements in transpar- non-commercial activities. transactions as it published, for ency, the corporation’s perfor- the fi rst time, its comprehensive mance and accountability chal- Break of a New Dawn Audited Financial Statements lenges persisted. With the coming of Mallam (AFS), in compliance with Pres- According to the report, NNPC, Mele Kyari as Group Managing ident Buhari’s commitment to which is the largest state-run oil Director (GMD) in July 2019, the accountability and transparency. fi rm in Africa, achieved a poor transparency drive within the The no holds barred publica- governance score of 44 out of corporation was taken a notch tion of the corporation’s 2018 100. higher. AFS is, however, not fortuitous. NRGI acknowledged that while The Kyari-led NNPC manage- In his maiden statement on the NNPC has recently strength- ment recently blazed the trail by assumption of offi ce on 8 July, ened some of its reporting prac- making the audited report of all 2019, the NNPC GMD, Mallam tices, particularly for high-level NNPC’s subsidiaries available for Mele Kyari, stated unequivocally fi nancial data, however, the com- the public. The corporation made that the corporation’s business pany did not disclose detailed history with the publication of its dealings and governance, under annual reports on its fi nanc- fi rst audited fi nancial statements his watch, would be account- es, despite top offi cials having after 43 years of its operation. able to the 200million Nigerians made a commitment to do so. Thursday 11th June, 2020 whom, he believes, are the true Little information was publicly would remain indelible in the an- stakeholders of the company. available, particularly concerning nals of the NNPC. It was a day, Transparency, he explained at some of NNPC’s least effi cient to all intents and purposes, the the ceremony marking his as-

He followed this pronouncement up by rolling out a programme known as TAPE – Transparency, Account- ability and Performance Excellence, which has become the operating guideline and a way of doing business in the corporation. The publication of the 2018 AFS of the corporation is therefore a promise fulfilled.

11 Industry 06:20

For a company most maligned for opacity in recent past, the publication of NNPC’s books is a big deal. Any wonder that extractive industries watchdogs across the world have touted the feat as a glorious example worthy of emulation. sumption of office, would be his Oil Company’s upstream going The statement also indicated watchword. concerns. A perusal of the AFS that National Petroleum Invest- He followed this pronounce- for the year ended December 31, ment Management Services ment up by rolling out a pro- 2018 of the National Engineering (NAPIMS) posted revenue of gramme known as TAPE – and Technical Company (NET- N5.04trillion in 2018 and profit Transparency, Accountability CO), an upstream subsidiary of of N1.01trillion, with total assets and Performance Excellence, the corporation, indicated a prof- under the portfolio of the ser- which has become the operat- it after tax of over N4.5billion, a vices unit valued at N18.6 trillion. ing guideline and a way of do- remarkable improvement from NAPIMS, among others, manag- ing business in the corporation. the previous year’s record of over es the Joint Ventures contracts The publication of the 2018 AFS N2.4billion. in the Upstream Sector on behalf of the corporation is therefore a The AFS of the Nigerian Pe- of the government. promise fulfilled. troleum Development Company Integrated Data Services Lim- The recent full disclosure of (NPDC) indicated a profit after ited (IDSL), an NNPC Subsidi- the corporation’s books involved tax of over N179.1billion which ary in charge of acquisition and those of 19 Strategic Business comes as significant improve- interpretation of seismic data, Units (SBUs) and a Corporate ment from the 2017 profit of over posted a total comprehensive Services Unit (CSUs), even as N157.4billion. income of about N3.2billion with the NNPC affirmed that its 2019 During the period, NPDC post- profit of about N154million with- Audited Financial Statement of ed a revenue of over N1.3trillion in the period. the corporation was already be- compared to the 2017 revenue NNPC’s entities covered in the ing prepared and expected to be of over N882.3billion. The AFS 2018 AFS are: NAPIMS, IDSL, ready in a couple of months. indicated that the NNPC’s flag- NPDC, NETCO, Port Harcourt The release of the AFS was in ship subsidiary has a total asset Refining Company (PHRC), War- compliance with the directive of of over N5.3trillion within the pe- ri Refining and Petrochemicals President Muhammadu Buhari riod, compared to the N4.007tril- Limited (WRPC), Kaduna Refin- and his Administration’s commit- lion asset recorded in 2017. ing and Petrochemicals Com- ment to accountability and trans- On its part, the Nigeria Gas pany (KRPC), Duke Oil Services parency, heralding a new regime Company (NGC) recorded a prof- (UK) Limited, Duke Oil Incorpo- of full disclosure of government it after tax of over N13.2billion rated and Duke Global Energy agencies’ transactions. It was with a comprehensive annual in- Investment Limited, the Wheel also made in accordance with come of about N19.9billion. The Insurance, Petroleum Products International Financial Reporting AFS also valued the NGC total Marketing Company (PPMC), Standards, apart from being a assets in 2018 at over N251.7bil- Nigerian Pipelines and Storage requirement for the Companies lion compared to N196billion in Company (NPSC), NNPC Retail and Allied Matters Act (CAMA). 2017. Limited and NIDAS UK Agency. In all, 19 entities of the cor- In the Downstream Sector, Others include; NIDAS Ship- poration, registered under the the Petroleum Products Market- ping Services, NIDAS Marine FS, Companies and Allied Matters ing Company (PPMC), for the Nigerian Gas Marketing Compa- Act (CAMA) as amended and first time, recorded gross profit ny (NGMC), Nigerian Gas Com- the National Petroleum Invest- of N24.3billion in the year under pany (NGC), and N-Gas. ment Management Services review, while NNPC Retail Limit- According to the NNPC, the (NAPIMS), had their books pub- ed posted profit after tax of over 2018 comprehensive AFS may lished on the NNPC website. N2.2billion compared to the N1. not be a perfected report, the The 2018 NNPC’s AFS posted 8billion recorded in the preceding fact that is being made available positives in many of the National year. to the public, nonetheless, proj-

12 Industry 06:20

to reform the NNPC. The 2018 NNPC’s AFS re- vealed some challenges in the midstream subsidiaries of the corporation, most significantly, in the refineries located in Port Harcourt, Warri and Kaduna, where losses were recorded, un- surprisingly because of their long downtime. It is, nonetheless, re- assuring that the corporation has commenced the process of a comprehensive diagnostic as- sessment of the refineries that would culminate into their thor- ough rehabilitation, starting with Port Harcourt and Warri Refin- eries. In addition, proposals to Mr. Mark Robinson Senator Bassey Akpan change the refineries’ business models to that similar to Nigeria ects a significant progress in in- positive, but it also signalled the Liquefied Natural Gas Limited’s stitutionalising transparency and imminence of more openness in (NLNG), which has been a suc- accountability in NNPC, a bold the Oil and Gas Sector and for Ni- cess story over the years is also move which, in many respects, geria in general. afoot. is a worthy example for others to On his part, Senator Bassey It should also be noted that emulate. Akpan, Chairman, Senate Com- there existed a seemingly wide For a company most maligned mittee, Upstream, said the re- gap between NAPIMS reve- for opacity in recent past, the cently published AFS of the nue and profit for the year as publication of NNPC’s books is NNPC underscored the readi- contained in the NNPC’s AFS. a big deal. Any wonder that ex- ness of the new Management Noteworthy, again, is the fact tractive industries watchdogs of the National Oil Company to that NNPC and its partners are across the world have touted the pursue transparency, good gov- already considering modalities feat as a glorious example wor- ernance and accountability in the to cap crude oil production cost thy of emulation. Petroleum Industry. per barrel at $10 by 2021 in order The Extractive Industries Data analytics firm, BudgIT, to ensure that Nigeria benefits Transparency International’s commended the NNPC for pub- more from the nation’s hydrocar- (EITI) Executive Director, Mr. lishing the audited accounts of bon resources. This is a position Mark Robinson, declared, no its subsidiaries and business which the NNPC Group Manag- sooner than the NNPC AFS was divisions for the first time, and ing Director, Mallam Kyari, has made public, that the develop- for launching the OpenData seg- made clear at every avenue. ment came at a record time, ment on its website, as a mea- NEITI on its part requested the commending the National Oil sure to promote transparency in oil firm to go farther by publish- Company as setting a new stan- its financial operations. ing its previous audited accounts dard of reporting. Other experts who have laud- and in open data formats so that The Nigeria EITI in its reaction ed NNPC for the feat noted that the reports could be more acces- described the development as NNPC was heading in the right sible to the citizenry. laudable, saying it was a fulfil- direction for transparency and According to BudgIT, “The Fed- ment of the promise the corpora- accountability. eral Government needs to reform tion made to NEITI Management the NNPC to reverse the trend of last year. The Executive Secre- Challenges Still Exist the massive losses recorded by tary of the body, Mr. Waziri Adio, While accolades for the state some of the NNPC subsidiaries, stated that given NNPC’s promi- oil firm continue to pour in, some annually. This audit report is a nent role in the Petroleum Sector experts maintain that while these laudable step towards show- and in the national economy, the are important steps regarding ing Nigerians the true picture of publication of the corporation’s transparency, more still has to be what is going on in NNPC.” audited accounts was not only done by the Federal Government

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World LNG Demand to Plummet First Time in 8 Years

–By Fred Ojiegbe he world liquefi ed natural will drive a global contraction in US LNG. There could be some gas, LNG industry is about LNG deliveries through summer downside risk to Asian prices Tto face its fi rst seasonal 2020 compared to the previous this winter if buyers lift some of demand reduction since 2012, year. This will be the fi rst season- the deferred volumes from this with demand in summer 2020 al contraction in 8 years,” said summer.” expected to fall 2.7 percent or Wood Mackenzie Research Di- “In general, a return to stron- 3 million tonnes year-on-year, rector Robert Sims. “The coming ger growth is not expected until Wood Mackenzie stated. winter season (2020-21) could mid-2021.” Lockdown measures and see a modest 5 million tonnes Japan, the world’s largest LNG negative economic outlook improvement in global LNG de- importer, saw LNG demand de- stemming from the coronavirus mand compared to the previous cline in the fi rst quarter of this pandemic is said to have taken winter season. year, and imports continued to its toll on Asian LNG importing “Pricing dynamics between fall through April as the coro- countries, resulting in the sec- both seasons are also likely to navirus outbreak continued to ond consecutive year of sluggish be similar, with the cross-basin spread. Although full-scale lock- LNG demand growth. “COVID-19 spread set by the economics of downs have not been imple-

Should this prove to be sticky going into 2021, and we see any kind of robust rebound in LNG de- mand from Japan, Korea or India, then a price cor- rection could begin earlier than previously anticipated and reduce the risk of further US supply reductions next year.”

15 Industry 06:20

Although already anticipated by the market, news that more than 20 US LNG cargoes had been ‘can- celled’ by contract and tolling off-takers for June load- ings is significant for the market. This could lead to fe- edgas going as low as 5 cfd.

mented, school closures, strict continue, it is unclear whether created more room for LNG to social distancing, work-from- the government will set specific be absorbed. However, the single home guidance, and partial sec- targets for coal-to-gas switch- largest fundamental difference toral shutdowns dampened LNG ing in 2020. Any moderation from 2019 is Europe’s vast gas demand in the first quarter and could reduce gas demand during inventories, which currently sit will continue to have an impact the heating season. Near-term at record seasonal highs and through the second quarter, ac- gas-power demand is risked to will reduce the continent’s ability cording to Mackenzie. the downside as power demand to absorb global surplus LNG in The slowdown in first quarter recovery faces macro uncertain- 2020 third quarter. LNG demand was further exacer- ty and more coal-fired power US “Although already antici- bated by high storage levels. Like plants are being approved. As pated by the market, news that 2019, Japan entered 2020 with a result, China’s 2020 second more than 20 US LNG cargoes above-average inventory levels quarter LNG consumption is ex- had been ‘cancelled’ by contract due to a mild winter, though in- pected to rise 12 percent to 15 and tolling off-takers for June ventories are now within sea- million tonnes year-on-year. loadings is significant for the sonal norms. The country’s 2020 It also noted that the other en- market. This could lead to feed- second quarter LNG demand is gine of LNG demand growth, In- gas going as low as 5 cfd,” said expected to fall 3 percent to 15.8 dia, saw 2020 first quarter LNG Sims. million tonnes compared to 2019 consumption growing at record “We expect underutilization second quarter. levels at 19 percent year-on- of US terminals to continue for Fresh out of winter heating year, driven by low spot prices. several summer months as mar- season, China is said to be shift- Wood Mackenzie expects this to gins remain negative for many ing focus to industrial demand reverse as three months of lock- companies. What is new is that recovery. Although none of the down materially reduces LNG our balances and price outlook force majeure notices were for- consumption. The country’s LNG suggest that some degree of un- mally confirmed on LNG - con demand is expected to decline derutilization will now also hap- tracts, China reduced pipeline 24 percent to 4 million tonnes in pen through summer 2021.” import growth in 2020 first quar- 2020 second quarter compared “Perhaps the most surprising ter to just 1 percent year-on-year, to the same period last year. change to our balances is the with imports from the largest Lockdowns across Europe impact that low market prices supplier, Turkmenistan, down have been every bit as severe are having on LNG supply, with 12 percent. Coupled with a low as Asia, but the total impact on downward revisions seen across spot price environment, the tem- gas demand is expected to be all basins and regions.” porary waiver of US LNG import proportionally less due to the “Should this prove to be sticky tariffs and industrial recovery, smaller share of gas used in the going into 2021, and we see any China managed to increase LNG industrial sector, as well as the kind of robust rebound in LNG imports in the first 3 months of resilience of gas burn in the pow- demand from Japan, Korea or In- 2020. er sector, and largely unaffected dia, then a price correction could Wood Mackenzie also noted demand for residential use. begin earlier than previously that moving into summer, China Although Europe’s total gas anticipated and reduce the risk is now faced with the daunting demand is down in compari- of further US supply reductions task of economic recovery. While son to last year, reductions in next year.” the ‘Two sessions’ have men- domestically produced gas and tioned ‘Blue Sky Defence’ will Russian pipeline imports have

16 Industry 06:20 NCDMB Inaugurates New Women Group, Fund for Women in Oil Sector ...WIEN backs move, seeks support

Engr. Simbi Kesiye Wabote Funmi Ogbue (Mrs.)

–By Gideon Osaka

he Nigerian Content De- we mainstream women in the oil rial Working Group as well as the velopment and Monitoring and gas industry, we are going to Fund for women in the oil and gas TBoard (NCDMB) has inaugu- achieve a lot.” sector. rated a Diversity Sectorial Working He announced that a portion President Women in Energy Group as well as a Fund for wom- of the Nigerian Content Interven- Network (WIEN) & Managing Di- en practitioners in the oil and gas tion Fund (NCIF) domiciled with rector Zigma Limited Funmi Og- sector. the Bank of Industry will set aside bue (Mrs.) thanked the Executive Executive Secretary, NCDMB, fund to support women operating Secretary, NCDMB, Engr. Simbi Engr. Simbi Kesiye Wabote an- in the oil & gas industry. Kesiye Wabote for approving the nounced the inauguration of the Members of the Diversity SWG addition of the Diversity SWG to new Diversity Sectorial Working include Alero Onosode represent- the Nigerian Content Consultative Group as well as a new gas value ing Seplat Petroleum Develop- Forum (NCCF), where the inter- chain group on June 24, 2020. ment Company; Patricia Simon ests of all practitioners in the oil Giving reasons for the inaugura- Hart, representing Aftrac Limit- and gas sector are represented. tion of the gas value chain group, ed; Pricilla Thorpe-Monclus, rep- “For us at WIEN, the creation the Executive Secretary stated resenting Mrs Oil Limited and of the Diversity SWG not only rep- that the Board believes that the fu- Audrey Joe-Ezigbo, representing resents the interest of women in ture of fossil fuels is in maximizing Falcon Oil and Gas Corporation the oil and gas sector but recog- gas development and utilization. Limited. nizes the importance of diversi- Engr. Wabote also mentioned Others are Michele Aiyegbu- ty to the sector,” Ogbue said in a that the creation of the diversi- si, representing SLC Resources statement. ty SWG was a product from the Limited; Nkechi Obi, representing “On behalf of the board and women in oil & gas workshop or- Techno Oil Limited; Margaret Oko- members of WIEN, I wish to also ganized by the Board in October jokwu, representing Majorwaves appreciate the Minister of State 2019. He hinted that the aim of Energy Report, Anita Okuribido for Petroleum Resources, Chief the Diversity SWG is to improve from Similling Simon Limited and Timipre Sylva as well as Execu- the participation of women in the Oladunni Owo, representing Black- tive Secretary, NCDMB, for making industry as well as to promote an gold Authorities. history with the appointment of all inclusive gender policies. Reacting to the inauguration, Mrs. Peace Oyanbo Owei, repre- He reiterated that by main- the Women in Energy Network senting the Ministry of Petroleum streaming women in the oil and (WIEN), a leading association of Resources, as the first ever female gas industry the sector engenders women in the energy sector ex- member of the Governing Council greater growth of the economy. In pressed excitement over the in- of the NCDMB which was inaugu- his words, ”I am convinced that if auguration of the Diversity Secto- rated on June 11.“

17 Industry 06:20 Treating Asset Protection as an Investment

Leaders in African energy risk management united in a webinar under the theme, ‘Navigating Risk: Increasing Threats in the African Energy Market Under COVID-19’ Gideon Osaka followed the online conference which was hosted by Africa Oil & Power and the Africa Energy Chamber.

xperts in African energy There are expectations that by When it comes to the in- risk management united in the end of this year, demand will creased threat to asset protec- Ea webinar held June under increase further and countries tion faced by companies during the theme, ‘Navigating Risk: In- will start racking up their ex- COVID-19, the question remains creasing Threats in the African ports. But in the case of major whether the crisis has only shed Energy Market Under COVID-19,’ African producers like Nigeria, light on, rather than created, to put forth strategies for mit- we are seeing that they have not existing breaches in security. igating physical, cyber and se- yet complied with OPEC produc- “Looking at a more macroeco- curity risks, with a view toward tion cuts.” nomic level, we might see new protecting employees and as- “The big impact of COVID-19 regulations that increase taxes sets. has been government-imposed or financial burdens, especially From regulatory uncertainty lockdowns. It is the econom- on foreign companies and large to political unrest to physical ic hit that increases risk for all multinationals,” Duthie added. and cyber security attacks, the businesses,” said Shawn Rob- “This is a risk for a lot of plac- risk of investment in several Af- ert Duthie, Managing Director es, especially high-risk countries rican countries has been height- of Inyani Intelligence. “Lack of such as Democratic Republic of ened by the onset of COVID-19, money means a lack of money Congo and Burkina Faso that do not least of which has been the for social services and social have natural resources.” threat to stable energy demand. delivery. This could lead to so- “With a situation like COVID-19 “Global lockdowns have had cial conflict. In South Africa, we coupled with depressed prices, a severe impact on both prices haven’t seen much protest, but your assets are exposed,” said and demand. This double shock underneath it all, there is a grow- C. Derek Campbell, CEO of Ener- – in which both prices and de- ing social tension about how the gy & Natural Resource Security, mand collapsed – has implica- government’s lockdown has af- Inc. “You have human terrains tions for both oil producer and fected people’s livelihoods and gaps, cyber security gaps and consumer countries,” said Dr. jobs.” indications and warnings of ex- Sara Vakhshouri, Founder & Reduced government reve- tremist groups looking at ways President of SVB Energy Inter- nues from crude oil exports due to attack infrastructure. As you national. “African countries are to a drop in demand could also have reduced manpower and facing challenges to security of lead to changes in tax and reg- lack of risk identification meth- demand, since global consump- ulatory frameworks that govern ods, you have invasion of sites. tion has been significantly hit. oil-producing countries. That’s at a tactical level.”

From regulatory uncertainty to political unrest to physical and cyber security attacks, the risk of investment in several African countries has been heightened by the onset of COVID-19, not least of which has been the threat to stable energy demand.

18 Industry 06:20

Sub-Saharan Africa has seen several physical and cyber-attacks in recent months, from pirates and vandals to militants, suggesting a need to prioritize in- vestment into the security of projects in the region.

He highlighted that to miti- what is at risk – capital invest- ria to operational networks in gate potential threats to on-the- ments in upstream, midstream oil and gas, onshore and off- ground risk and security, regular and downstream projects. That shore,” Campbell noted. “When risk assessment programs must is impacted by depressed prices investors come in, they squeeze be conducted to identify weak- because your posture is down projects, charging a high rate nesses and prevent breaches in and you are not concerned of return. In order to mitigate security from affecting returns about protection from physical financial risk, they squeeze the on project investments. and cyber risk, which ultimately project and expect to get their “Companies need to ensure impacts the financial risk.” returns in three years. But then that they have a consistent re- Sub-Saharan Africa has seen the operator cannot mature the view and assessment program several physical and cyber-at- project because they don’t have using global standards,” said tacks in recent months, from the cash.

C. Derek Campbell Caty Hirst Shawn Robert Duthie

James Chester

Dr. Sara Vakhshouri

Campbell. “In addition to an pirates and vandals to militants, To mitigate that financial inter- initial assessment, it needs to suggesting a need to prioritize play between owners and opera- be done periodically. As an op- investment into the security of tor, I recommend not looking at erator, you need to be able to projects in the region. security of your asset as a cost, ensure resiliency so that you “There are a number of re- whether it’s a new Greenfield or can maintain continuity of op- cent attacks offshore Equato- ongoing activity. It is an invest- erations. If you cannot do that, rial Guinea, in Algeria around ment that will help you mature then you cannot optimize and 2011 and 2012 and consistent that asset and make it grow.” monetize the asset. And that is threats that happen in Nige-

19 For enquiries, call: 0705 500 1000 Star of the Industry 06:20

Dr. Omar Farouk Ibrahim Secretary General, African Petroleum Producers’ Organisation

21 Star of the Industry 06:20

Dr. Omar Farouk Ibrahim Secretary General, African Petroleum Producers’ Organisation

–By Danlami Nasir Isah

During Dr. Farouk’s seven years at OPEC, he played significant roles in the transformation of the International public perception about OPEC. As the spokesperson of the Organization, he succeeded in building an excellent un- derstanding of the workings of OPEC among key Interna- tional media Organisations such as CNN, BBC, Deutsche Welle, Bloomberg, Dow Jones, Al Jazeera etc.

Doctorate graduate of a member of the editorial board fi rst Degree in Political Science Rutgers University, New of the Daily Times Newspapers, from Ahmadu Bello University A Jersey, Dr. Omar Farouk an institution he worked for Zaria in 1980. He later had his Ibrahim started as a Graduate eight years in various capaci- Masters Degree in Bayero Uni- Assistant in the faculty of So- ties. versity Kano where he majored cial and Management Scienc- In 1999, he was appointed in Political Economy. es, Bayero University Kano in the Managing Director of the Dr. Farouk joined the Organi- 1981. New Nigerian Newspapers zation of the Petroleum Export- He began his media career in Limited by President Olusegun ing Countries, OPEC in 2003 1990 after he took a sabbatical Obasanjo. as the Head of Department of from the University to become Dr. Omar Farouk obtained his Public Relations and Informa-

22 Star of the Industry 06:20

tion. In that position, he for- On several occasions be- WAGPA and the WPC. mulated a Strategic Commu- tween 2008 and 2010, being It was in recognition of his ex- nications Programme for the the most senior Head of De- pertise in International energy Organization and led the execu- partment, Dr. Farouk had been politics and intergovernmental tion of a major Public Relations privileged to oversee the activ- energy relations that Dr. Omar campaign for the Organization ities of the OPEC Secretariat in Farouk Ibrahim was appointed in the USA, Europe and China the absence of the Secretary Nigeria’s Governor for OPEC at a time of rising oil prices and General. and Executive Board member intense criticism of OPEC from In December 2009, while he representing Nigeria on the key Oil consuming countries. was still at OPEC Secretariat, Board of Gas Exporting Coun- During Dr. Farouk’s seven the then Nigeria’s Minister of tries Forum, GECF, in 2015. years at OPEC, he played sig- Petroleum, Dr. Rilwanu Luk- In December 2019, Dr. Omar nifi cant roles in the transforma- man requested the Secretariat Farouk Ibrahim was appoint- tion of the International public to release Dr. Farouk to come ed the Secretary General of perception about OPEC. As the and work with him as Advisor, African Petroleum Producers’ spokesperson of the Organiza- a position he had retained with Organization, APPO. An accom- tion, he succeeded in building three successive ministers for plished oil and gas diplomat, a an excellent understanding of nearly ten years. During these great image maker, and expert the workings of OPEC among years, he coordinated the ac- in international energy dynam- key International media Organ- tivities of Nigeria in all the inter- ics, Dr. Omar is married with isations such as CNN, BBC, governmental energy Organisa- children. Deutsche Welle, Bloomberg, tions to which Nigeria belongs, Dow Jones, Al Jazeera etc. namely OPEC, GECF, IEF, APPO,

23 Cover Story 06:20

Buhari Kick-starts $2.8b AKK Gas Pipeline Construction …Project to unlock moribund industries in the North

–By Benjamin Ike

hat could be the big- leum Corporation (NNPC) last AKK and the Nigeria LNG Train gest and most import- year that construction of the 7 are two ongoing projects Want project to be inau- AKK gas pipeline would com- of the NNPC and its partners gurated in Nigeria this year is mence in the second quarter of which would open the oil and the flag-off of the construction 2020. gas space to Foreign Direct In- of the $2.8 billion Ajaokuta-Ka- The flag-off of the AKK is vestments (FDIs). duna-Kano (AKK) gas pipeline coming despite the global eco- Speaking at the virtual flag- by President Muhammadu Bu- nomic downturn caused by off ceremony of the project at hari. The commencement of COVID- 19 and the attendant fis- the Ajaokuta, Kogi State and Ri- construction of the AKK is in cal pressure low crude oil prices gachikun, Kaduna State camp- keeping with the promise made has put Nigeria under. sites simultaneously, President by the Nigeria National Petro- Valuechain reports that the Buhari said the project was very

24 Cover Story 06:20

President Muhammadu Buhari performing the virtual flag-off of construction phase of the Ajaokuta-Kaduna-Kano Gas pipeline project at the Council of State chamber, Presidential Villa, Abuja.

dear to the people of Nigeria is set to be laid between Ajaoku- network between the eastern, and must succeed. ta and Kano in Nigeria and forms western and northern regions ‘‘Today marks an important phase one of the Trans-Nigeria of Nigeria. It also aims to create chapter in the history of our Gas Pipeline (TNGP) project. a steady and guaranteed gas great Nation. It marks the day The pipeline project is being supply network between the when our domestic natural gas implemented via a build and northern and southern parts of pipeline networks; from Obi- transfer (BT) public-private part- Nigeria by utilising the country’s afu in Rivers State, Escravos nership (PPP) model, which in- widely available gas resources. in Delta State and Lekki in La- volves the contractor providing In addition, the development gos State, are being connected 100% of the funding. is expected to reduce the large through Kaduna to Kano States The pipeline will cost an es- volume of gas flared annually thereby enhancing national en- timated $2.8bn. It will feature in Nigeria, as well as the sub- ergy security, creating balanced a diameter of 40inch and is sequent environmental impact. development, and further inte- expected to transport 3,500 NNPC originally announced grating our nation,’’ he said. million metric standard cubic tenders for the development of feet per day (Mmscfd) of de- the AKK pipeline in July 2013. A Single Biggest Gas Pipeline hydrated wet gas from several project proposal was submitted The AKK pipeline is a 614km- gas gathering projects located to the Infrastructure Conces- long natural gas pipeline cur- in southern Nigeria. The proj- sion Regulatory Commission rently being developed by the ect will result in the establish- (ICRC) in June 2017. NNPC and a host of partners. It ment of a connecting pipeline The PPP compliance certif-

25 Cover Story 06:20

Kaduna State Governor, Mal. Nasir El-Rufai cutting the tape on behalf of the President at Rigachikun site. Assisting him to his right is the HMSPR, Chief Timipre Sylva and other dignitaries. icate was issued in July 2017 Gas Station at a cost of $855m. It was gathered that haulage along with the approval of the Oilserv Limited one of the in- of 40″ line pipes to Ajaokuta feasibility study. The Federal digenous contractors awarded and Kaduna stack yards were in Executive Council (FEC) grant- the engineering, procurement, progress. Also, 1024 line pipes ed approval for the project in construction, installation, test- (about 50%) have been deliv- December 2017. ing, and commissioning of the ered to the respective stack first segment of the 614 km x yards in Ajaokuta and Kaduna. AKK Pipeline Route 40-Inch Gas pipeline, which is Phase two of the AKK gas The pipeline is slated to origi- from Ajaokuta to mid-way be- pipeline will comprise a 193km- nate from Ajaokuta in Kogi state tween Abuja and Kaduna is said long section to be built between and pass through, Abuja, Niger, to have achieved significant Abuja and Kaduna at a cost of and Kaduna before ending at progress with ongoing detailed approximately $835m. Phase a terminal gas station in Kano. engineering design, topograph- three will involve the construc- The project will be executed in ical and geotechnical surveys, tion of a 221km-long section be- three phases, with phase one haulage and stacking of line tween the Kaduna terminal gas covering the construction of a pipes in preparation for com- station (TGS) and Kano TGS. 200km-long segment between mencement of construction ac- This section will cost an esti- Ajaokuta and Abuja Terminal tivities. mated $1.2bn to complete.

‘Today marks an important chapter in the history of our great Nation. It marks the day when our domes- tic natural gas pipeline networks; from Obiafu in Riv- ers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano States thereby enhancing national energy security, creating balanced development, and further integrat- ing our nation.”

26 Cover Story 06:20

Kogi State Governor, Alh. Yahaya Bello with the Group Managing Director, NNPC, Mallam Mele Kyari at the Ajaokuta site of the project.

Other infrastructure planned The engineering, procure- provide gas for generation of for the development include ment and construction (EPC) power and for gas-based indus- various associated valve sta- contract for phase one was tries which would facilitate the tions, as well as intermediate awarded to OilServe / Oando development of new industries. and terminal facilities. The nat- consortium in April 2018. The It will also ensure the revival of ural gas pipeline is expected to Brentex / China Petroleum Pipe- moribund industries along tran- require the laying of approxi- line Bureau (CPP) consortium sit towns in Kogi State, Abuja mately 51,200 steel line 40in-di- was awarded the EPC contract (FCT), Niger State, Kaduna State ameter pipes featuring a total for phase three. and Kano State, he said, adding combined weight of 240,768t. that the cascading effect and Furthermore, the project will Benefits of AKK Pipeline impact of the AKK, when oper- utilise 24in-diameter steel line Enumerating the benefits of ational, will be immeasurable. pipes for spur lines, as well as the project, billed to be com- His words: ‘‘It has significant job 40in-diameter line break pleted in two years, the Pres- creation potential both direct valves and future tie-in valves. ident Muhammadu Buhari at and indirect, while fostering the Contractors Involved the flag-off ceremony said it will development and utilization of local skills and manpower, tech- nology transfer and promotion of local manufacturing.’’ According to the NNPC, the AKK natural gas pipeline is in- tended to boost Nigeria’s elec- tricity generation capacity, as well as strengthen the industrial sector within the country’s east- ern and northern regions. The project is also expected to promote and increase the local usage of domestic gas. Signing ceremony btw the NNPCgroup and Brentex Petroleum Services Ltd/ Additionally, it is anticipated China Petroleum Pipeline Bureau (CPP) Consortium for the Engineering, Procurement and Construction (EPC) contracts of the Ajaokuta-Kaduna-Kano to increase the country’s reve- (#AKK) Gas Pipeline Project. nue generation through the ex-

27 Cover Story 06:20

The project when completed will not only boost pow- er generation in Nigeria which in turn will accelerate economic growth & quality of life of Nigerians but will also create thousands of jobs. It will equally eliminate gas flaring in Nigeria and save gas projects host com- munities from costly health challenges and environ- mental degradation associated with gas flaring. port of natural gas. The project tional support the project has dustrial and Commercial Bank when completed will not only garnered. of China (ICBC), Bank of China, boost power generation in Ni- The China National Petro- and Infrastructure Bank of Chi- geria which in turn will acceler- leum Corporation (CNPC), one na with Sinosure, China’s Export ate economic growth & quality of the largest integrated ener- Credit Agency (ECA) providing of life of Nigerians but will also gy groups in the world and an insurance cover, the remaining create thousands of jobs. It will EPC contractor on the project, 15 percent will be provided by equally eliminate gas flaring in have severally thrown their the contractors which include Nigeria and save gas projects weights behind the project as- Oilserve/Oando consortium, host communities from costly suring NNPC of its unflinching as well as Brentex/China Pe- health challenges and environ- commitment towards securing troleum Pipeline (CPP) Bureau mental degradation associated funding for the successful fi- consortium. with gas flaring. nancing and subsequent execu- The CNPC has placed a very When finally joined with tion of the AKK pipeline project. high premium on the AKK Proj- the proposed 4,401km-long Valuechain reports that the ect, describing it as the begin- Trans-Saharan Gas Pipeline financing for the 40-inch by ning of several collaborations (TSGP) to export natural gas to 614km gas pipeline is expected with NNPC. The AKK gas pipe- customers in Africa and Europe, to cost about $2.8billion, for the line project has also received a it will add billions of dollars an- project described as the single major boost from Kaduna State nually to our national revenue. biggest gas pipeline in the his- Government which has pledged tory of oil and gas operations in to join forces with the NNPC to Elixir for Success Nigeria. ensure effective optimisation The potential for the project While 85 percent of the mon- of the project by stakeholders to succeed is doubtless going ey is expected to be funded by across the state. by the kind of local and interna- the financiers which include In- Already, the state government

28 Cover Story 06:20

has gone ahead by signing a from the AKK Pipeline project, said aside the AKK Project, the Memorandum of Understanding it will open up many possibili- NNPC was keen on executing (MoU) with OCIP of Morocco for ties. Therefore we are ready to other projects that would trig- the development of a fertiliser support you in whatever way we ger industrialization and create plant in Kaduna State. can”, said Kaduna State Gover- jobs for the nation’s teeming “As soon as the gas is here nor, Mallam Nasir el-Rufai. He population.

Valuechain reports that the financing for the 40- inch by 614km gas pipeline is expected to cost about $2.8billion, for the project described as the single big- gest gas pipeline in the history of oil and gas operations in Nigeria.

29 Tribute 06:20 Baru: The Life & Times of a Peaceful, Inspiring and Dedicated Oil Technocrat

–By Musa Bashir Usman

n the night of Friday, May 29, nate fake news, I later placed a call Fahad Taffaq UAE Ambassador to Maikanti Baru, former group to some close aides of the former Nigeria said the death was a huge Omanaging director (GMD) of GMD just to be sure. loss to Nigeria. the Nigerian National Petroleum The raft of condolences that The Bauchi State Governor Bala Corporation (NNPC), drew his last poured in following his passing Mohammed who expressed shock, breath after a brief battle with ill- summed up the personality of the described his death as a great loss ness. late Baru as a peaceful, brilliant, ob- not only to the people of Bauchi I, like many others, received the servant, inspiring, compassionate, State and Nigeria, but to the whole shocking news around 6am Satur- dedicated and a gentleman of all world at large. day morning from a friend. there- times. In his tribute the Managing Di- after, my phone was besieged with President Muhammadu Buhari rector of NNPC Pension Fund messages by friends who normally who was among early mourners Limited B.M Isah, said that Baru contact me for any oil and gas re- expressed his condolence over the demonstrated a true defi nition of lated enquiries. First, I checked the death of the erstwhile NNPC GMD. good leadership which a lot of his twitter timeline of the current GMD, In his own tribute, Mele Kyari, subordinates who were privileged Mallam Mele K. Kyari, which con- current NNPC GMD described Baru to work closely with him believed is fi rmed my fears. considering the as a mentor who “was of exemplary an impracticable theory. sophistication of the merchants of character and disposition.” According to him, Baru’s achieve- fake news who in recent The Minister of State for Petro- ments as a person and GMD were times can clone leum Resources, Chief Timipre so enormous and obvious national- peoples’ so- Sylva described the news of ly and beyond. cial media the demise of Dr. Baru, as He added that Baru’s tenure as platforms sad and shocking. the GMD brought some pragmat- and use Sylva, in a state- ic reforms in the pension scheme it to ment while sym- amongst other things; closing of dis- pathising with the lingering funding defi cit since the semi- family and friends inception of the Scheme to a sur- described the for- plus status. mer GMD, as a dedicated tech- Baru’s Last Days at the NNPC nocrat who would Born July 1959 in Misau, Bauchi be greatly missed state, Dr. Maikanti K Baru was ap- by the oil and gas pointed the 18th Group Managing community and the Director of the NNPC by President nation at large. Muhammad Buhari on July 4 2016. Also, the former After serving in offi ce for Minister of State for 1000days approximately, on July 8, Petroleum Resources 2019, Baru bowed out in a colour- Dr. Ibe Kachikwu de- ful event that was never seen in the scribed him as a history of the corporation. gentleman. Late Maikanti Baru was said to D r be instrumental in leading reforms that helped the oil sector in Nigeria become more viable, particular- ly ending long queues associated with fuel scarcity in the country. Tracking Dr. Baru’s footprints in oil and gas is made easy by his nu- merous achievements. Baru once attributed the successes to his en- gineering background, a discipline,

30 Tribute 06:20

which according to him, whole- the Benue Trough. event, pioneer NNPC GMD Chief R. somely prepared him for the great His tenure also witnessed an en- A Marinho, said, “This for me has task ahead during industrial harmony, applaud- been an occasion that has actual- A few days after he assumed ed by the workers unions. ly brought tears to my eyes, tears duty, Baru launched his Corporate At a valedictory session organ- of joy. After over 40 years, we are Vision of 12 Business Focus Areas ised for him, he spoke of his high having this first and unique occa- (12 BUFA), detailing initiatives that hopes for the NNPC and appreci- sion of this kind. A total of 16 GMDs would put NNPC on the enviable ated all those who supported him have come and gone and there was path of growth and profitability. during his nearly 1,000 days in of- no occasion to have this kind of In the three years at the helm, fice. thing for them. Not because of any the implementation of some of the From his speech at the event, wrongdoing on their part, but simply initiatives led to, amongst others, it was evident Baru was fully in because of the kind of situation we the restoration of Nigeria’s national charge during his tenure; he knew have in Nigeria. We have the leader- oil production from 1.3million bar- everybody by name. Like a true ship where if you cannot add value rels of oil per day (1.3mbopd) to 2.2 leader, he was full of praise for his to anything that is put in charge of, mbopd by end of 2016. men for their effort in changing the you then turn and add value to your- Similarly, Nigeria’s crude oil re- fortunes of the NNPC; he didn’t as- self; this is what the situation has serves rose to 32billion barrels, with cribe the glory to himself. been,” the elder statesman noted. a target of 40 billion barrels. The As he went down memory lane Turning to Baru, he said, “When I Nigerian Petroleum Development on his exploits in NNPC and the was invited to this occasion, I knew Company (NPDC), NNPC’s major challenges of choosing his succes- it was going to be a grand one and I upstream arm, was refocused and sor, Baru went emotional. was thinking to myself, ‘what would rejuvenated towards achieving “Every good parent wants to see I say?’ Few days ago, I read some- 500,000 barrels per day oil produc- his children be better than him; I thing in the newspapers, which tion and 1.5 billion standard cubic can’t be better than you. The suc- was a tribute of the Speaker of the feet (scfd) gas production by 2020. cess of turning around the fortunes House, Hon. Femi Gbajabiamila to During Baru’s tenure, outstand- of NNPC is success for all of us. Our Baru. I thought all I needed is to say, ing Joint Venture (JV) Cash Call in-house union, the PENGASSAN, ‘Ladies and gentlemen, I concur Arrears were renegotiated leading I cannot thank you enough. I will with all that he said.” to repayment agreements with JV always be proud of your support, He continued: “But I think Baru is partners. The successful execu- especially the mutually beneficial more than that. We’ve had in recent tion of that strategy ensured the engagements that we had across times encomiums from different restoration of confidence, as well dialogue tables.” places, both local and international; as spurring spending to increase To President Muhammadu Bu- I think he has earned every word of production and reserves. It also im- hari, he said, “I thank Mr. President that. But for the fact that old age pacted positively on the upstream for giving us the opportunity to has made me lose my grasp of En- unit cost of production, reducing it serve this great country Nigeria. He glish grammar, the words I would from $27 per barrel to $22 per bar- trusted our judgment and support- have used for Baru, you would rel. ed us with the resources and policy have had to use your dictionaries. Baru’s tenure also saw the opti- directions that have manifested in Maikanti baru, God bless,” he con- mization of existing oil and gas in- the quantum accomplishment that cluded. frastructure such as depots, jetties, have characterised our tenure of It takes time to understand why etc, across the length and breadth 1099 days. Thank you Your Excel- certain things happened in life. of the country, which has ensured lency; I cannot thank you enough.” When Baru brought together many stability of products supply and dis- To the management team and personalities from all works of life tribution nationwide. staff of NNPC, he said, “Today is including about 85per cent of all the NNPC also made vigorous ef- the perfect time for me to say good- living former GMDs of the NNPC, to forts at frontier exploration.With bye and take my leave, as I watch that eventful valedictory ceremony, support from the Federal Govern- and count the successes the cor- little did we know that he was bid- ment, the NNPC under Baru record- poration will be recording in years ding us farewell. ed successes in oil search, particu- to come,” he said amid resounding Indeed life is like a shade of a tree, larly, at the Kolmani River-II Well in applause. it appears and disappears. Maikanti Bauchi and Gombe States end of In his tribute to Baru at the K. Baru’s life did appear, and many people, including the nation and his state, did benefit from it. Today it “Today is a perfect day for me to say has disappeared, and even though he is no more, his good work will al- good bye and take my leave ...” ways be in our heart. May his soul — Dr. M. K. Baru, 1959 - 2020 rest in Aljannah

31 Column 06:20

Jega’sCHIMNEY

COMMENTARY: Looking Over Kyari’s Shoulder

–By Mahmud Jega

ot for nothing did Kadu- place! His tenure shall be the his son delisted from the short- na State Governor Nasir game changer that NNPC and list even though the young man NEl-Rufai, who is not giv- Nigeria needs. He is competent, had all the qualifi cations. Many en to hyperbole, say that Group confi dent and rapidly plugging sons and daughters of pow- Managing Director of the Nige- leakages, repositioning the Cor- erful public fi gures also fell by ria National Petroleum Corpo- poration towards greater trans- the wayside and made way for ration [NNPC] Mele Kyari is a parency and accountability. The children of poor backgrounds, a corporate “game changer” who oil cabal will certainly attack major departure from past prac- should however look over his him!” tice. shoulder before the permanent It was not just publishing of Mele Kyari also presided over oil cabal comes after him. In audited accounts that is Kyari’s the historic signing ceremony one year in offi ce, El-Rufa’i said, game changing. Last year he of the Final Investment Deci- Kyari made accountability and launched a corporate culture sion [FID] of the NLNG Train7, a transparency his central ethos, rejuvenation motivating slo- gigantic project that suffered an something that cannot please gan called TAPE, i.e. Trans- unnecessary ten years’ delay. the cabal that has been feeding parency, Accountability and The FID will increase the capaci- fat on national oil revenues. Performance Excellence. It has ty of NLNG’s six-train plant from Kyari’s game changing en- already had a profound effect 22 million tonnes per annum sured, for example, that NNPC on NNPC’s workforce. Kyari (mtpa) to 30 mtpa, a 35% in- recently published its 2018 au- concluded the recruitment ex- crease. The GMD then unveiled dited accounts, the fi rst time ercise that he inherited of about new brands of NNPC-produced in 43 years that it did this. No 1000 graduate trainees. I don’t engine oil which was launched wonder that el-Rufa’i said that know how true it is, but it was into the market. These varieties “Mele Kyari’s heart is in the right speculated widely that he had of engine oil will make NNPC

Kyari’s game changing ensured, for example, that NNPC recently published its 2018 audited accounts, the first time in 43 years that it did this. No wonder that el-Rufa’i said that “Mele Kyari’s heart is in the right place! His tenure shall be the game changer that NNPC and Nigeria needs. He is com- petent, confident and rapidly plugging leakages, repositioning the Corporation towards greater transparency and account- ability. The oil cabal will certainly attack him!”

32 Column 06:20

Mele Kyari also presided over the historic sign- ing ceremony of the Final Investment Decision [FID] of the NLNG Train7, a gigantic project that suffered an unnecessary ten years’ delay. The FID will increase the capacity of NLNG’s six-train plant from 22 million tonnes per annum (mtpa) to 30 mtpa, a 35% increase. more profi table and self sus- vamp and transfer [though not South with North has com- taining. sell] them to companies with menced. NNPC-sponsored Aja- When the COVID-19 pan- the track record and capability okuta–Kaduna–Kano [AKK] demic hit earlier this year, Mele to operate and maintain them gas pipeline project, handled by Kyari galvanized major oil com- in a transparent partnership leading indigenous fi rm OILS- panies to contribute N21billion arrangement. Kyari also intro- ERV Limited, also commenced for coronavirus intervention in duced Operation White, a task- a few weeks ago. No wonder Nigeria. NNPC then decided to force to checkmate the smug- that this high performing GMD use 53 per cent of the money to gling and hoarding of petroleum was advised to look over his construct state-of-the-art med- products. Prior to it’s coming, shoulder, lest the cabal from the ical facilities in six geopolitical the country’s daily consump- old order, totally averse to trans- zones. Ground-breaking cere- tion of petroleum products was parency, come charging monies for the construction of said to be around 60 million li- after him. 200-bed Infectious Diseases tres every day. Operation White Hospitals with in-situ laborato- however drastically cut the fi g- ries have already taken place ure, making a huge saving on in Bayelsa, Borno, Katsina and cost of subsidising millions of Imo states with other locations litres that end up in neigbouring soon to follow. countries. There has been no Kyari’s passion for transpar- fuel scarcity during Mele Kyari’s ency in oil industry did not start one year at the helm, not during today. He was once a member the Yuletide or even during the of the global Extractive Indus- pandemic. try Transparency Initiative [EITI] GMD Mele Kyari is de- working group on commodity termined to cut Nige- trading transparency. No won- ria’s crude oil production der that he has now prodded cost to $10 per barrel by NNPC to terminate and exit the 2021, which will great- controversial regime of subsidy ly enhance profi tability. and under-recovery. Previous ef- He said current crude oil forts at ending the scandal-rid- production cost in Nigeria den subsidy regime was stoutly is $15 to $17 per barrel, in resisted. Kyari has announced contrast to industry leader that henceforth, market forces Saudi Arabia’s $4 to $5 per shall determine petrol prices in barrel production cost. Nige- the country. ria has one of the oil produc- The sorry condition of the ers’ highest production cost nation’s four refi neries has en- per barrel. Under Kyari’s gaged Kyari’s full attention. He watch, the major announced a determination to gas project revamp them in the next three that will years. His plan is not only to get link them back on track but to re-

33 Industry 06:20 What it Takes to Get a Marginal Oil and Gas Field in Nigeria

–By Gideon Osaka with APO Group

igeria’s marginal fields licensing rounds have Nbeen the cornerstone of Nigeria’s upstream local con- tent development strategy since the early 2000s and previous rounds gave birth to what are now strong local and regional African E&P companies. The move has been so successful that it is now being followed by other key African oil producing countries such as Angola and Gabon. In Nigeria, previous rounds have given the opportunity for local players to make a differ- Chief Timipre Sylva Sarki Auwalu ence in a sector that had been until then dominated by interna- od of over 10 years. Notably, the cess remains an exclusively tional oil companies and inter- marginal fields exist under cur- indigenous affair, foreign tech- national independents. Nigerian rent Oil Mining Leases (OMLs). nical and financial partners are marginal players such as AMNI Eligibility and Bid Evaluation not outrightly precluded from Petroleum, Shoreline Energy, As one of the key objectives participation in the develop- Aiteo, Neconde Energy, Seplat of the marginal fields licencing ment of marginal fields once Petroleum or Belema Oil are round is to promote indigenous contracts are awarded and now strong operators able to participation in the Nigerian fields need to be developed. Due develop technically challenging oil and gas sector and to fos- to the capital-intensive nature fields, just to name a few. The ter technological transfer, the of oil and gas operations, and development of a marginal play- licensing round is exclusively current liquidity constraints due ers has also brought a boost to intended for participation by in- to the historic crash of oil pric- the reduction of gas flaring in digenous companies i.e., com- es and the Covid-19 pandem- Nigeria, with several Nigerian panies duly registered to carry ic, it is very likely that existing marginal fields recognised -un out petroleum exploration and and future Nigerian operators der the UN Clean Development production operations in Nigeria of marginal fields will be on the Mechanism for their successful with 100% indigenous share- look out for regional and inter- reduction of gas flaring and val- holding. national partners. As such, di- orisation of natural gas. rect and indirect participation of International Participation: a international players is possible Marginal Fields Not-so-small Margin within marginal plays in Nigeria, In the Nigerian context, mar- However, upon the award of be it under services or techni- ginal fields include fields with re- the marginal field, the awardee cal assistance contracts from ported reserves and production may assign up to 49% of its in- technology providers or under potential, which are however terest to another party subject capital injections from funds or deemed marginal for a variety to approval by the Minister of private equity investors. We con- of reasons including having re- Petroleum Resources. As a re- tinue to witness the success of mained un-produced for a peri- sult, and while the bidding pro- these partnerships and applaud

34 Industry 06:20 the retention of this key element 7. Granting of access to pry preparation. Prequalification, by the Nigerian government un- data and lease data to the which eventually gives access der the 2020 licensing round. applicants, who can pur- to the data rooms, will be based chase applicable reports on the applicant’s incorporation Bid Process and Timelines after paying the necessary status, technical competence The licensing round impli- fees; and financial capability. By Au- cates a carefully laid out pro- 8. Prequalified applicants are gust 2020, all technical and cess, including the negotiation granted access to Fields’ commercial bids are expected of farm-out agreements with Teasers; to be submitted. The whole pro- holders of the OMLs (Farmors) 9. Notification of Preferred Bid- cess is done electronically on within which the marginal fields der; the https://marginal.drp.gov.ng exist. The Farmors will be en- 10. Payment of signature bonus portal. Under the DPR Guide- titled to an over-riding royalty by the Preferred Bidder (or lines, the entire process is not interest as well as a negotiated the Reserve Bidder); expected to take longer than $/bbl tariff for hydrocarbons 11. Award of the Marginal Field six (6) months, from date of an- transportation/processing. to the Preferred Bidder; nouncement and commence- The Marginal Field Bidding 12. Negotiation and Execution ment to signing of Farm-out Round is a 12-step process of the Farm-out agreement agreement with the OML hold- which will roll out as follows: between applicants and ers. 1. Announcement of the Mar- leaseholders. ginal Field Bidding Round Approving Authority and launch of its dedicated The DPR notably expects the The approval of the President, portal; registration of applicants to take subsequent to the payment of 2. Applicants fill and submit about two weeks, followed by all bonuses and fees brings a the online registration form another two weeks of evalua- marginal field award into effect. along with the required doc- tion of submission and reports uments after paying the reg- istration fee; 3. Evaluation and prequalifi- Fees Payable cation of registered compa- nies; S/N0 Description Amount 4. Notification of prequalified 1 Registration fee N500,000 applicants; 5. Evaluation by the DRP of 2 Application Fee N2,000,000 per field the submitted bids, which it 3 Bid Processing Fee N3,000,000 per field forwards to the Honourable Minister of Petroleum Re- 4 Data Prying Fee N15,000 per field sources for approval; 5 Data Leasing Fee N25,000 per field 6. Submission by the appli- cants of technical and com- 6 Competent Persons Report N50,000 per field mercial bids after paying the 7 Field Specific Report N25,000 per field application and processing fees;

In the Nigerian context, marginal fields include fields with reported reserves and production potential, which are however deemed marginal for a variety of reasons including having remained un-produced for a period of over 10 years. Notably, the marginal fields ex- ist under current Oil Mining Leases (OMLs). Industry 06:20 NIMASA to Earn N12bn Revenue Annually from Idle Floating Dock ...As Jamoh Marks 100 Days in Office

–By Saidu Abubakar

he Nigerian Maritime Ad- ministration and Safety TAgency (NIMASA) said it is projecting to generate up to N12billion in revenue per year from its multimillion-dollar float- ing dockyard, which is currently idling away in Lagos. The acquisition of the contro- versial floating dock at the cost of over N50billion by NIMASA. The vessel arrived Nigeria on June 11, 2018 and has since been gulping more than $10,000 daily as running cost without any commensurate benefit to the country. Explaining the recent devel- opment and plans of the regu- latory agency to mark the first 100 days in office of the new management of NIMASA, Di- rector-General of NIMASA, Dr. Bashir Jamoh, said to actualise this, the agency has opened dis- cussions with the Nigerian Ports Dr. Bashir Jamoh Authority (NPA) and a prospec- tive managing partner to put the aging the authority’s dockyard operational. facility into operation. but because of our own floating He stated that NIMASA would He said NIMASA is also ex- dock, the NPA decided to move be filling in an application with pecting a job creation of about its dockyard to somewhere in the Infrastructure Concession 350 Nigerians under five seg- Snake Island, and the NPA is Regulatory Commission (ICRC) ments of the operation. also winding up its joint venture to approve the public private He said, “We have been dis- agreement with the company as partnership (PPP) arrangement cussing with the Managing we speak,” he said. for the management of the Director of NPA to move our Jamoh said NIMASA has also dock. floating dock from its present signed a memorandum of un- Jamoh said NPA would come location at the Naval Shipyard to derstanding with international in as the owner of the Continen- the Continental Shipyard owned oil companies (IOCs) that are tal Shipyard, NIMASA as the by the NPA. Though, we found doing business with the Nigeri- owner of the floating dockyard out that there is an existing joint an National Petroleum Corpo- while an independent player venture partnership between ration (NNPC) to patronize the would be the technical manag- NPA and another company man- floating dock when it becomes ing partner.

36 Industry 06:20

The major problem of maritime security is lack of platforms. That is why NIMASA is investing heavily in the acquisition of special intervention vessels, special mission aircraft and helicopters that are due to arrive in August (2020) and January 2021 while some are already in Nigeria.”

On maritime security espe- tion, NIMASA has hit the ground confronting the sector headlong cially as regards the agency’s running with coordinated Mar- and make it lucrative for mari- deep blue project, Jamoh said itime Security, Safety and Ship- time business to thrive. NIMASA is at 75 per cent stage ping Development (3S) plan to in the acquisition of the plat- reconstruct the sector to be de- MARITIME SECURITY (TACK- forms required for the complete pendable for the Nigerian econ- LING PIRACY) takeoff of the project. omy. Jamoh said a total of 27 al- He said the agency in the past The new Management at leged pirates were apprehended three months has been receiv- the agency has outlined im- in the last three months. Ac- ing several commendations for plementable policies and pro- cording to him, 17 are in the cus- its strict fight against piracy, sea grammes intended to change tody of the Nigerian Police, while robbery and other illegalities on the narratives in the Nigerian 10 were arrested by the Nigeri- the waterways as well as the en- Maritime industry, through Ship- an Navy in collaboration with tire Gulf of Guinea region. ping Development, Safety and the agency and they are facing “The major problem of mar- Security of the Nigerian Mari- prosecution in accordance with itime security is lack of plat- time domain and provision of the anti-piracy law. forms. That is why NIMASA is job opportunities, financing in He remarked that since 2016, investing heavily in the acqui- order to create opportunities for not until the last two months, no sition of special intervention Nigerians. single pirate has been arrested vessels, special mission aircraft The Director-General of NI- in Nigerian waters. and helicopters that are due to MASA, with his Executive Direc- He said the feat was achieved arrive in August (2020) and Jan- tors while briefing journalists by a joint effort of the NIMASA, uary 2021 while some are al- on his scorecard in his first 100 Nigerian Navy and the Nigeri- ready in Nigeria,” he said. days in the office said, the agen- an Police, revealing that every Meanwhile, in the last 100 cy is now repositioned to tack- agency involved share informa- days of Dr. Jamoh’s administra- le the multitude of challenges tion at different levels which led

37 Industry 06:20

Jamoh said, already oil/gas majors are ready to dry-docked their ships with the facility and is expect- ed to generate over N1billion annually and over 350 workers will be employed, adding that the floating dock will serve Nigeria foreign exchange and generate more revenue to the government as well as serve as a seatime training of Cadets in mechanical and electrical fields. to the arrest of the culprits. DEEP BLUE PROJECT proval and he hopes it will be On the commencement of approved, assuring that if pal- SHIPPING DEVELOPMENT the Deep Blue Project, Jamoh liatives are being approved for (DISBURSEMENT OF CVFF) said over 85% of the project has other sectors of the economy, The NIMASA boss hinted that been achieved. According to he hopes the industry needs in- before the end of October 2020, him out of the 17 Special Mis- centives to cushion the effects the first leg of beneficiaries of sion Vessels ordered, 14 have of the Coronavirus pandemic. the Cabotage Vessels Financing arrived, the armoured vehicles Jamoh also said the agency Fund (CVFF) will get their funds. are ready, two Special Mission is engaging all stakeholders, in- He said ” Have just been ap- Aircraft are expected in October, cluding the media to reorganise pointed the Chairman of the while the three Special Mission the industry for greater perfor- CVFF disbursement committee Helicopters ordered are expect- mance. by the Minister of Transporta- ed to arrive in January 2021. The International Maritime tion. We are working to disburse Based on this, Jamoh said Organisation (IMO), has lauded the CVFF, before October, we will the agency went to ground zero the Nigerian Maritime Adminis- disburse the first leg of the fund in terms of platforms and equip- tration and Safety Agency (NI- to beneficiaries.” ment to fight piracy. But he as- MASA) and the Navy, and also sured with the arrival of these pledged its total support to the DEPLOYMENT OF CONTRO- platforms the agency is set to Federal Government of Nigeria VERSIAL NIMASA FLOATING battle criminality in Nigeria wa- over its renewed efforts in con- DOCK ters and generate more revenue, trolling piracy and other mari- The NIMASA DG said the emphasising also that, the Deep time crimes. agency and the NPA are almost Blue Project will provide training The agency believes that by finalising arrangements to de- and employment to the teaming these efforts, the country is ploy the floating dock to the Nigeria youths. sending a “strong and valuable Continental Shipyard owned by He said the only aspect of the message” to the global commu- the NPA under a Public-Private project remaining now is the nity and therefore commends Partnership (PPP) arrangement. training of personnel that will the NIMASA, and the Nigerian Jamoh said, already oil/gas man the platforms, as accord- Navy, who have been at the fore- majors are ready to dry-dock ing to him due to the COVID-19 front of the anti-piracy war. their ships with the facility and pandemic, the training could Secretary-General of the IMO, is expected to generate over have commenced which com- Kitack Lim, who conveyed the N1billion annually and over 350 prises of both foreign and local excitement of the UN, also com- workers will be employed, add- training. mended the new Director-Gen- ing that the floating dock will eral Dr. Bashir Jamoh, for his save Nigeria foreign exchange COVID-19 PALLIATIVES AND brave and dynamic approach and generate more revenue to INCENTIVES TO MARITIME towards maritime security. the government as well as serve OPERATORS as a seatime training of Cadets Jamoh said the agency has in mechanical and electrical presented a proposal to the fields. Transportation Minister for ap-

38

Industry 06:20

JUNE SHORT TAKES –Compiled By Saidu Abubakar

Why Nigeria Makes $3 Profit From NNPC To Deepen Business Port- filling station found selling- Pre every Barrel Of Crude Oil – NNPC folios In Power, Medical, Others … mium Motor Spirit (petrol) above Nigeria currently makes a $3 Mulls Partnership with Develop- the approved pump price per litre profit for every barrel of crude oil ers to Reduce Nation’s Housing would be sanctioned. it sells! This shocking revelation Deficit came when the leadership of Nige- As part of measures to cope Malabu Scandal: Nigeria Grounds rian National Petroleum Corpora- with the boom and bust cycle in Dan Etete’s $57million Jet In tion (NNPC) was invited by the Na- the global crude oil market and Canada tional Assembly to explain the high to sustain revenue generation for Nigeria has tracked down and cost of producing oil in Nigeria. the Country, the Nigerian National grounded the luxury private jet pur- Petroleum Corporation (NNPC) is chased by its former oil minister, NNPC Records 74 Pipeline firming up a bouquet of business Dan Etete, with some of the alleged Breaches In 2 Months portfolios in the power, medical, proceeds of the notorious $1.3 bil- The Nigerian National Petroleum housing and other sectors that lion Malabu OPL245 oil deal. Corporation (NNPC) lost over N20 would strengthen the profitability billion due to 74 pipelines breaches of the National Oil Company. 11th OPEC, Non-OPEC Ministerial by suspected crude oil thieves in Meeting Concludes January and February this year, the OPEC+ Extends Cuts After Minis- The 11th OPEC and non-OPEC national oil company has said. terial meeting Ministerial Meeting was held via OPEC+ has extended production videoconference, on Saturday, 06 cuts to prop up the oil market af- June 2020, under the Chairman- ter a breakthrough in high-stakes ship of HRH Prince Abdul Aziz Bin negotiations. This was revealed Salman, Saudi Arabia’s Minister of after the cartel meet in the month Energy, and co-Chair HE Alexander of June to review the earlier pro- Novak, Minister of Energy of the duction cut deal reached mid April Russian Federation in response to fall in prices of oil The Meeting recalled the rights which was triggered by corona vi- of peoples and nations to perma- rus. nent sovereignty over their natural wealth and resources. Funding Crunch: Investors Flay FG Steps Up Sale Of Gas Assets 2020 Bid Round Timing Total’s Egina To Shoulder Bulk Of With 96 Flare Sites Indigenous players that stand in Nigeria’s OPEC+ Production Cuts With a recent offer for its 57 the frontline of the newly launched French oil and gas firm, Total’s marginal oil fields to investors af- marginal bid round are not im- Egina will bear the largest burden ter 17 years gathering momentum, pressed with the management of cuts as Nigeria races to achieve the Federal Government, through of the much awaited opportunity, full compliance with the new the Department of Petroleum Re- pointing at the prevailing low de- OPEC+ cuts deal, It was reported sources (DPR) has said plans are mand and low price cycle in the by the media that the new field, Egi- underway to commercialise its 96 global oil industry. na will shoulder around 40 percent gas flare points in a bid to generate cuts on behalf of the country. revenue and ensure domestic con- Sylva Inaugurates NNPC Board sumption of gas. The Hon. Minister of State, Pe- OPEC+ Deal Will Bring Some Sort troleum Resources, Chief Timipre Of Normality By End Of Year: Federal High Court Restrains FG Sylva has inaugurated the newly NNPC’s Kyari From Auctioning Eight Marginal constituted Board of the Nigeria • Country has agreed to Oil Fields National Petroleum Corporation make up for previous flouting of The Federal High Court sitting (NNPC). quota in Lagos has restrained the Feder- • NNPC cutting output deep- al Government from selling or ac- DPR Warns Petrol Stations er than needed in past 10 days cepting bids for eight Marginal Oil Against Selling PMS Above Ap- Mallam Mele Kolo Kyari, Group Fields (Oil Mining Licences) pend- proved Price Managing Director of Nigerian ing determination of a suit chal- The Department of Petroleum National Petroleum Corporation lenging their status. Resources (DPR) warned that any (NNPC), says the OPEC+ produc-

40 Industry 06:20 tion cut deal was necessary to ing need but would slug it out for Corporation (NNPC), revealed that re-balance the oil market and move market share with a new $20bn it posted over N1.01 trillion profit Brent prices towards $42 to $45 a Chinese refinery eyeing the African from its venture marketing subsidi- barrel by the end of the year. market. ary, National Petroleum Investment Management Services (NAPIMS), Sylva Inaugurates NCDMB New Kyari: NNPC To Build 200,000-Ca- but recorded over N154 billion loss- Governing Council pacity Condensate Refinery es from its refineries’ operations …Hails Nigerian content accom- Mele Kyari, the group managing for the 2018 financial year. plishments director of the Nigerian National The Minister of State for Petro- Petroleum Corporation (NNPC), APPO Concludes 38th Ministerial leum Resources, Chief Timipre Syl- says the country is working on Conference With Decisive Deci- va recently in Abuja inaugurated building a condensate refinery to- sions The Ministerial Council of Afri- can Petroleum Producers’ Organi- zation, APPO, concluded its 38th Session on Monday, 15th June, 2020 with far reaching decisions on the future of the Organization.

NNPC Has Commenced Search For Hydrocarbon In Niger... The Nigerian National Petro- leum Corporation (NNPC) has commenced the search for hydro- Inauguration of NCDMB board carbon in parts of Niger, Kwara and Kogi States, the Group Managing the new Governing Council of the wards the goal of self-sufficiency Director (GMD), Malam Mele Kolo Nigerian Content Development and in refined petroleum products. Kyari, has disclosed. Monitoring Board (NCDMB), with a charge to the members to support With More Transparency, FG Re- NNPC Mulls Growing Nation’s the attainment of the Nigerian Con- covered N1.2tn In Oil Sector, Say Reserve To 40bn Barrels By 2023 tent 10-Year Strategic Roadmap. World Bank, EITI – Kyari The World Bank and the Ex- The Nigerian National Petro- Nigeria Talks Tough On Produc- tractive Industries Transparency leum Corporation (NNPC) says its tion Costs Initiative (EITI), the global standard targets to grow the nation’s reserve Nigeria will cut production costs for the promotion of openness in to 40 billion barrels by the year to $10 per barrel by the end of the oil, gas and mineral resources 2023. ThisThis was disclosed by 2021, Nigerian National Petroleum management, have disclosed that Malam Mele Kyari, Group Manag- Corp. (NNPC) managing director Nigeria has so far recovered about ing Director, NNPC. Mele Kyari has said. N1.2 trillion ($3 billion) as a result of more transparency in the sector. Nigeria’s 57 Marginal Oil Fields ‘Proper Fiscal Framework Will Attract Over 300 Applications Accelerate Oil Licensing Rounds’ Nigeria’s Dangote Still Expects *Why DPR extended application – NNPC GMD Refinery To Be Running Early by one week The Group Managing Director 2021 *Petroleum ministry expects of Nigerian National Petroleum The Dangote oil and gas refinery over 500 applications Corporation (NNPC), Mele Kyari, remains on track to be operational Although Nigeria had put up 57 has stated that only proper fiscal in early 2021 despite the disruption marginal oil fields for its next bid framework can facilitate and accel- caused by the COVID-19 pandemic, rounds, over 300 applications have erate new oil field licensing round group executive director Devaku- been received, news reports con- bid in the country. mar Edwin tells the Africa Report. firm. Sources in the know hinted that although the Federal Ministry Dangote Refinery Has New Rival Stakeholders Laud NNPC’s Trans- of Petroleum Resources and the In $20bn Chinese Plant parency, N1.01tr Profits From Department of Petroleum Resourc- Billed to be the world’s biggest NAPIMS es, DPR expect nothing less than single-refinery train at 650,000 •Insist on overhaul amid N154 500 applications before the close barrels per day capacity (bpd), the billion losses in refineries of the application deadline. Dangote Petroleum Refinery could In its first-ever audited report, meet Nigeria’s, if not Africa’s refin- the Nigerian National Petroleum

41 Column 06:20

Step into SHUBOX where you will unbox Aisha’s journey to discovering the stories behind people in Africa and interesting places all over the world. Expect an eclectic dive into history and current events on the intriguing developments in media and entertainment. I am here to give you a piece of myself through my writing by reporting and reviewing all things educative, entertaining and engaging. Fête de la Musique — World Music Day

– By Aisha Sambo

world without music would and it stated that one young per- gatherings by the Lagos State have no meaning to many, son out of two, played a musical Government. The Make Music A as music gives flight to instrument. Ever since, Fête de la Lagos 2020 organisers have imagination and self-expression, musique became an internation- also announced that they will be and we have African culture to al phenomenon, celebrated on launching the ‘COVID Took My thank a lot for its contribution to the same day in more than 700 Job’ initiative to provide support music. From being a young child cities in 120 countries, including to selected industry profession- listening to nursery rhyme and the United States, Germany, Can- als whose livelihoods have been folk songs to being older and dis- ada, India, Italy, Peru, Brazil, Mex- adversely affected as a result of covering trap music or highlife, ico, Russia, and Japan, including the coronavirus pandemic. the genres of music are enjoyed Nigeria. The day is used to pro- It’s diffi cult not to acknowl- and listened to by many all over mote music in two ways, fi rst to edge the influence of African the world. So as June 21st marks encourage amateur and profes- music on a global scale as so World Music Day, we take a look sional musicians to perform in many genres are being infused at the origins of the day and its the streets, and secondly so that together to create new ones. journey so far in shaping African many free concerts are organ- Many genres of popular music music. ised, and all genres of music are like blues, jazz, afrobeats, sal- Also known as Fête de la made accessible to the public. sa, and rumba derive from the Musique, World Music day spot- As they said, “music is the food influence of musical traditions lights the signifi cance of mu- of the soul”. That simply explains from Africa, taken to the Ameri- sic in our respective cultures. the reason why despite the lock- cas by enslaved Africans. These It originated in France and was downs and restrictions on gath- rhythms and sounds have sub- fi rst held in Paris on the 21st of ering, music keeps on playing sequently been adapted by new- June, 1982, with thousands of globally. Unlike in the past when er genres like rock, and rhythm citizens across France coming music was limited through the and blues. Recently a huge de- out to play and listen to music. mode of listening, now with tech- bate erupted on Twitter about This day is also known to be the nology advancements, music is the heritage of Beethoven, one longest day of the year. In Octo- more accessible. Showgear and of the greatest composer’s of all ber of 1981, Jack Lang, Minister its affi liated partners in Nigeria time. The theory floating around of Culture of France, appointed had plans for the 2020 world on the Internet questioned if Lud- Maurice Fleuret as the Director music day, they announced the wig van Beethoven was black – of Music and Dance, and the two schedule of events for MAKE and it turned out the debate had conceived a plan to bring out MUSIC LAGOS 2020 as part of been alive for nearly a century. musicians to play together on the buildup to the upcoming cel- Since the controversy started the street of Paris the following ebrations. Make Music Lagos, last week, pictures and names year. In 1982, Maurice thought of which is now in its 5th year of ex- of countless other brilliant black bringing people out on the street istence, is going to be exclusively composers such as the Cheva- when he discovered a study of online for the fi rst time following lier de Saint-Georges, and Sam- the cultural habits of the French the restrictions on large public uel Coleridge-Taylor – have been

42 Column 06:20 brought to the world’s attention. From personal experience An argument I found interesting working at live shows and de- suggested that Beethoven’s mu- veloping concepts for artists, sic is heavily influenced by Moor- the best of artists are truly the ish or North African heritage. ones who are open to learn and Beethoven’s use of rhythm and unlearn, the ones who can afford dynamics was new to western to share their inner most feelings music and his emphasis was of- and thoughts, the ones that re- ten put off the beat. Characteris- spond to current events and situ- tics of his music have been used ations in there lives. These have to prove that Beethoven was been, and will continue to be the black, that he was influenced by outliners of great Music. Fela the music of Africa. To a degree once said “I must fi nd my iden- it may be true, but such a bold tity in Africa and then I will fi nd claim may take the argument too myself” and in recognising far. and searching for music Since the 17th century, Africa from the past, we are has played a huge role in shap- beginning to appre- ing music all over the world and ciate and recognise African music is as diverse as what Africans did the topography of the land, Af- for music and their rica comprises of thousands contributions to of different styles of music, but many successes many “experts” of regional music for songwriters, tend to separate African music music produc- into two distinct groups: North ers and per- African Music which is strong- forming and ly Arabic and Islamic in nature, recording art- and Black African music or that ists around which is centralised in the West, the world. Central and Sub Saharan regions HAPPY of Africa. Music has travelled so WORLD MU- far and is continuously evolving, SIC DAY Music does not exist in a vac- This article is uum as we continuously influ- dedicated to The ence each other through music. Rainmaker Majekodun- Salute to the many ways of art mi Fasheke AKA Majek and music - both making and en- Fashek, Nigeria sing- joying it - brings people together er-songwriter and guitar- with the power to heal, connect ist, who died on the 1st of and inspire, we need music now June 2020. more than ever.

It’s difficult not to acknowledge the influence of African music on a global scale as so many genres are being infused together to create new ones. Many genres of popular music like blues, jazz, afrobeats, salsa, and rumba derive from the influence of musical tradi- tions from Africa, taken to the Americas by enslaved Africans.

43 Entertainment 06:20

Nigerian Celebrities who Renounced Law for Entertainment 7 –By Adeniyi Onifade igerian celebrities have Funke starred in the sitcom been making waves both I need to know from 1998 to Nnationally and globally in 2002. In 2009, she won the Af- different fi elds of endeavours. rica Movie Academy Award for Some of them delved into en- Best Actress in a leading role. tertainment, while others spent She plays the lead character 5yrs in the university to study in the show Jenifa’s Diary for Law and couldn’t practise. which she was named best ac- They diverted into comedy, tress in a comedy at the 2016 music, or acting and are now Africa Magic Viewer’s Choice celebrities. Awards. Here are seven prominent Funke was born on August celebrities who studied law but 24, 1977 in Ikorodu, Lagos are full-time entertainers: State, Nigeria. She obtained an Ordinary National Diploma 1. Richard Mofe-Damijo (RMD) (OND) in Mass Communication Richard Eyimofe Evans from the former Ogun State Mofe-Damijo, popularly known Polytechnic, now Moshood Abi- as RMD, was born on July 6, ola Polytechnic, She later got a 1961. The actor and former degree in Law. Delta Commissioner for Culture Funke Akindele is an enter- and Tourism was born in Alad- tainer and a role model to many ja community of Udu Kingdom, in the industry. near Warri, Delta State. He attended Midwest Col- 3. Chukwuebuka Obi-Uchendu lege, Warri, and Anglican Gram- Chukwuebuka Obi-Uchendu mar School and was a member was born on 14 July 1982. He of the Drama Club. He enrolled is known for hosting the reali- into the University of Benin to ty show Big Brother Naija, the continue his education and long running Rubbin’ Minds talk studied Theatre Arts. show on Channels TV as well as In 1997 Richard returned to co-hosting The Spot and Men’s the university to study law at Corner on Ebonylife Television. the University of Lagos and Obi-Uchendu has received graduated in 2004. several award nominations and RMD as he is popularly called won the award for Outstanding is regarded as a veteran in the TV Presenter of the Year at the Nigeria movie industry today. Nigerian Broadcasters Merit Awards for his work on Rubbin’ 2. Akindele Olufunke Bello Minds. Akindele Olufunke Bello, pop- ularly known as Funke Akindele 4. Omawumi Megbele and Jenifa, is a Nigerian actress Omawumi Megbele was born and producer. on April 13, 1982. Known by

44 Entertainment 06:20 her stage name Omawumi, the renowned lawyers and human singer-songwriter and actress right activists Femi and Funmi of Itsekiri ethnicity is also part Falana. He was called to the bar of the campaign called “Rise in 2012 after graduating from with the Energy of Africa”. the Nigeria Law School in Abuja. She gained attention as the Falz completed his basic and 2007 runner-up on West African secondary school education Idols, a reality TV show part of at St. Leo’s Catholic Primary the Idols franchise. Her second School, Ikeja and Olashore In- album, The Lasso of Truth, was ternational School, Osun State reported to be a commercial respectively. He is an alumnus success in Nigeria. of the University of Reading En- Omawumi was born to Chief gland, having graduated with an Dr. Frank and Mrs. Aya Meg- LLB honors degree in Law. bele. She attended Nana Prima- ry School during her pupillage, 6. Omotunde Adebowale David and later attended the College (Lolo 1 of wazobia) of Education Demonstration Omotunde Adebowale Da- Secondary School. vid also known as Lolo 1 of She graduated from Ambrose wazobia, is a Nigerian radio Alli University with a Law de- presenter who hosts the radio gree. After graduating in 2005, programme, ‘Oga Madam’ on she moved to Port Harcourt, Wazobia FM 94.1. Rivers State where she worked Omotunde attended Ijebu- with her family’s law firm called Ode Anglican Girls secondary “O.S Megbele & Associates”. school where she also spent She also studied French at Alli- part of her school days in a hos- ance Francaise. tel. She is a graduate of Law from Lagos State University and 5. Folarin Falana (Falz) she later went to law school. Folarin Falana was born on October 27, 1990. He is better 7. Femi Adebayo known by his stage name Falz. Femi Adebayo is a lawyer, The rapper, songwriter, and ac- film actor, director, producer tor began his career while in and Special Adviser to the Gov- secondary school after form- ernor of Kwara State on Arts, ing a group called “The School Culture and Tourism. He is the Boys” with his friend before his son of the veteran actor, Ade- professional career as a music bayo Salami. artist began in 2009. Falz be- He was born in Lagos, south- came more well-known after his west Nigeria, but originates song “Marry Me” featuring vo- from Ilorin, Kwara State. He at- cals from Poe and Yemi Alade. tended the C&S College for his He owns an independent re- secondary school education cord label called Bahd Guys then to University of Ilorin where Records. He released his de- he obtained a bachelor’s degree but album Wazup Guy in 2014. in Law, and earned a master’s His second album Stories that degree in Law at the University touch was released in 2015. He of Ibadan. released 27 as his third studio album in 2017. On January 15, 2019, he released his fourth studio album Moral Instruction. Falz was born in Lagos to

45 Health 06:20 World Sickle Cell Day: Special Focus on the Cells of a Generation’s Didi Project

– By Aisha Sambo

ike most sectors in Nigeria, dition that does not receive is one of the many registered from power, to technology, enough attention or funding non-profit and non-govern- Lagriculture, and health, the in Nigeria. SCD is particularly mental organisations that help Government still remains the common with people who have people living with SCD. The or- most fundamental and strate- descendants from Sub-Saharan ganisation aims to shift the nar- gic driver to the objectives of Africa, South Asia and the Mid- rative for people living with SCD Sickle Cell Foundations across dle-East. In Nigeria, an estimat- through the instrumentality of Nigeria. Due to the COVID-19 ed 150,000 children are born information, re-orientation and pandemic, health has taken a with SCD every year. There are peculiar needs-based interven- centre stage in recent matters many misconceptions about tion. COAG actively makes sure hence the call to reevaluate Ni- the disorder within African com- people with SCD can actively geria’s health care system in munities and living a healthy look after their condition with- catering for warriors. This arti- life might be difficult for SCD out worrying about the avoid- cle spotlights a remarkable or- patients without the necessary able complications that come ganisation and the creative way education. SCD is no longer a with mismanaging their health. they have come up with as their death sentence but in countries COAG initiative supports ev- contribution to fighting Sickle like Nigeria, it is hard to manage eryone with sickle-cell disorder Cell Disorder (SCD). without financial support. in hospital during Covid-19. SCD is a life-long blood con- Cells of a Generation (COAG) Those with SCD have a weak-

46 Health 06:20

COAG team ened immune system, which cate young patients, caregivers are some tips for the warriors puts them at a much higher risk and other interested people on out there and what you can do of getting sick with COVID-19 the management, prevention to stay safe in this worrisome and other infections going and stigmatisation of SCD. An period of COVID-19; around. What is COAG doing educational comic book based 1. Stay at home as much to help young warriors across on 13-year-old Didi drives the as possible - Avoid non-essen- Nigeria you may ask, the group project. Didi is a fictional char- tial travels, cross and public has partnered with GT Bank, acter and through her stories, areas. I know it’s been months Paystack, African Crowdfunding readers get a first hand look but hang in there the world still Association and inter-switch to into her life while dealing with needs your brilliant mind. provide relief materials to peo- the condition. In addition to this, 2. Stock up on supplies you ple with SCD during these diffi- COAG is looking to implement need - Items to keep you healthy cult times. The organisation is special interventions at schools such as food, water and medi- focusing on genetic counselling or clinics with informative activ- cation. through an animated informa- ities for teenagers. This project 3. Avoid Triggers - The goal tion education communication can really make an impact on is to keep you out of the hospi- (IEC) materials known publicly the community as a whole. tal as it may be busier than nor- as The Didi Project. As we mark this year’s World mal. Maintain good hygiene and The Didi project seeks to edu- Sickle Cell Day on June 19, here avoid triggers at all costs.

SCD is a life-long blood condition that does not receive enough attention or funding in Nigeria. SCD is particularly common with people who have descendants from Sub-Saharan Africa, South Asia and the Mid- dle-East. In Nigeria, an estimated 150,000 children are born with SCD every year.

47 Motoring 06:20 Transporters Groan as FG’s Ban on Inter-State Movement Lingers

–By Ironhand S. Chukwuemeka

ith about 10, 000 buses worried that if the ban is not re- parked at various termi- versed as soon as possible, the Wnals and fleet yards in number of small and big business- parts of the country since the ban es that “will die permanently”, will on inter-state movements took further rise – a situation which he effect as one of the measures to argued would have both economic contain the spread of COVID-19, and social implications because of public transport owners have the essential nature of road trans- many problems to worry about on portation. the survival of their businesses. The transporters are disturbed One of them is a total of about that thousands of their mini, me- N200 billion which they say rep- dium and luxury buses which resents the enormous direct and have been parked for about three indirect losses immobilising their months will cost each owner mil- vehicles has inflicted on the indus- lions of naira to be restored to try since the fi rst lockdown was sound motoring condition before announced three months ago. returning to their various routes. Worsening this fi nancial setback Considering that the twin facts is the uncertainty regarding when Prof. Iyiola Oni, Professor of that the fi rms are faced with huge the federal government will rescind Transport and Logistics Planning, un-serviced loans used to pur- UNILAG the prohibition and for how long chase the buses and that they have more it will continue to take heavy a special intervention fund from been spending for months without tolls on their investments even as government. earning, Uhunmwagho, who is the domestic airlines count down to At a recent forum in Lagos, Chairman of Efex, contended that the June 21 resumption date with a some of the transport owners adding more commitments to the N27 billion fund as lifeline. not only made a strong case for burden would be too diffi cult for But, perhaps, the severest of the immediate unbanning of in- the transporters to bear. the transporters’ headaches both- ter-state movements, but also “Vehicles were never designed ers on confronting post-lockdown called on the government to in- to be left idle, and even if they may challenges, particularly the task of troduce the necessary protocols re-start, numerous mechanical, revamping their already fi nancially that would enable Nigerians travel electrical and system faults are encumbered businesses without safely thereafter. bound to arise, including tyres, and an inevitable bailout. Bemoaning the crippling effect the transport owners have very lit- Apart from the umbrella as- of the lingering prohibition, the Na- tle funds left to meet up with these sociation, all the transport fi rms tional President of the Public Trans- challenges. Some transport own- whose top executives have so far port Owners of Nigeria Association ers who have rented premises may commented on the issue at differ- (PTONA), Isaac Uhunmwagho, ap- be unable to continue using some ent times, believe it would be ex- pealed for an urgent rescission of of such premises,” he stated. tremely diffi cult for the investors the ban and introduction of mea- There is yet another problem, to recover without the aid of the sures to enhance quick recovery. according to Uhunmwagho: “In Federal Government. Uhunmwagho argued that if the the post COVID-19 operating con- The list of such companies in- embargo persists, it would com- ditions, vehicles are expected to clude ABC Transport, Ifesinachi, pound the effects on the economy, carry approximately 50 percent of E. Ekesons, Izu Chukwu Transport, considering that road transporta- passenger as well as spend mon- G. U. O Transport, Efex Executive tion accounts for about 90 percent ey on additional sanitation and Transport, God is Good Motors, of movements in the country, and health facilities. If a vehicle takes Famous Motors and many others. therefore, should be accorded as 50 percent of passengers, sim- And consistent in their comments much support as the aviation indus- ple arithmetic will dictate that the are the need for government to re- try, which is not presently the case. transport fare will have to double. view the ban and the imperative of The PTONA President is also “The airlines have already come

48 Motoring 06:20

Prof. Oni listed some of the diffi- culties the transport owners might have been encountering as los- ing daily returns, inability to repay loans, and getting the grounded buses ready for trips after the ban has been lifted, noting that it would appear that the government was finding it hard to accede to their request for support. He, however, proffered a solution: “Therefore, a more radical econom- ic package, including grants, can be established to keep the existing companies and investors alive. Re- up with a similar answer. The statement. capitalising the sector could come question is: Can Nigerians, whose Both the President of Associ- with the government requesting average level of income have been ation of Luxury Bus Owners {AL- commercial banks to grant the in- adversely hit by the effects of BON, an affiliate of PTONA}, Prince vestors a three-month moratorium COVID-19 be able to pay signifi- Emeka Mamah, and the Managing for repayment of loans.” cantly increased transport fares?” Director of GUO Transport Com- Single-digit loans for restocking Interestingly, a N27 billion-bail- pany Ltd, Maduabuchi Okeke, in replacement parts for their buses, out has just been approved for separate interviews, lamented tax holidays, and reduction in the the domestic aviation industry by the debilitating effects of the ban, pump prices of petroleum prod- the government; a gesture which and called for a review and gov- ucts, were also recommended by seems to have further justified the ernment’s financial assistance to Oni as means of alleviating the road transporters’ call for pallia- save the industry from collapse. transporters’ post lockdown prob- tives. The plea for assistance was “It will be very difficult, if not lems. the thrust of PTONA’s letter some impossible, for inter-state trans- He explained that because of weeks ago to the Economic Sus- porters, whose thousands of bus- the importance of road transpor- tainability Committee headed by es have been ‘locked down’ for tation, umbrella unions like PTONA Vice President, Prof. Yemi Osibanjo. about three months, to recover and decision makers should al- Signed by Uhunmwagho, and without incentives, even after the ways engage in “serious and gen- the National Secretary, Frank Nne- COVID-19 measures have been re- uine dialogue” towards finding a ji, the letter had requested the ap- laxed,” Mamah argued. solution to problems impeding the proval of a N20 billion COVID-19 Mamah, who is the Chairman of former’s operations. Intervention Fund to be disbursed Ifesinachi Group, drew attention to “Government should eradicate through the Bank of Industry (BOI) the response to a similar situation the official and non-official mon- to the long distance public trans- in Britain: “The government of Bo- etary extortion on the road, as port owners, to aid their recovery. ris Johnson appreciates the fact multiple check-points add to the The transport owners also that the country depends a lot on operators’ costs”, the UNILAG don pleaded with the Vice President to road transportation, and so didn’t advised, urging the Federal Minis- direct the Central Bank of Nigeria starve the owners and their drivers try of Works and Housing and FER- (CBN) to prevail on all commercial of palliatives. The country has pro- MA {Federal Roads Maintenance banks to restructure all term loans vided about a million pounds for Agency} to fix all the major - high for businesses mostly affected by the transporters to maintain their ways across the country, in order COVID-19 pandemic, especially the vehicles, including washing and to ensure that the transporters do inter-state passenger transport. disinfecting them before they are not spend a lot of money repairing “Government should face the back on the road.” vehicles damaged by bad roads. challenge of ensuring that Nige- Remarkably, the bus owners’ Some of the roads specifical- rians comply with the guidelines plea for financial aid enjoys a strong ly mentioned by Oni are: Abu- and protocols which will be intro- support from a Professor of Trans- ja-Lokoja, Okene-Kabba, Abuja-Ka- duced for long-distance travels, port and Logistics Planning in the duna-Kano, Onitsha-Owerri-Aba, as well as encourage Nigerians to University of Lagos {UNILAG}, Iyiola Sagamu-Ore-Benin, Abuja-Keffi-Ak- abide by all other Covid-19 rules Oni, who observed that the ground- wanga, Kano-Maiduguri, Lokoja-Be- and regulations. That is the only ing of the inter-state vehicles had nin, and Enugu-Port Harcourt. way that we can say that we shall led to some difficulties, “hence the Also identified by him as need- overcome COVID-19,” the asso- request for bailouts to the bus own- ing attention are Ilorin-Jebba, La- ciation said last week in another ers, investors and operators.” gos-Ibadan-Ilorin, Ibadan-Ife.

49 Aviation 06:20

Concerns Over Reopening of Domestic Flights –By Adeniyi Onifade

espite federal govern- would shift the economics of the operating carriers or sus- ment’s plan to reopen the aviation by slashing the maxi- tainable air travel business. Dairspace for local flight op- mum load factor to 62 per cent. Olowo said no airline could erations soon, airline operators That is well below the average break even with less than 40 seem not to be happy with the industry breakeven load factor per cent load factor and at the situation considering several of 77 per cent. extremely low fares prevalent in conditions attached to the re- As an alternative, the apex the Nigerian market where pas- sumption of flights. body for 280 global airlines opts sengers pay less than $100 per Conditions attached to the for the wearing of face cover- hour on jet engines. partial reopening, especially ings for passengers and masks He said aviation operators onboard physical distancing, for the crew while on board air- must prepare for the ‘new nor- reduced maximum capacity, craft as a critical part of a lay- mal’, but government’s support continued restriction of their for- ered approach to biosecurity was most crucial “because eign counterparts and denial of to be implemented temporarily the social distancing imposed government’s bailout are all not when people return to travelling would wreck havoc on the air- in the best interest of already by air. lines’ economics”. beleaguered local aviation busi- According to the plan, five “Onboard social distancing nesses. airports will reopen. They are will be quite challenging except Stakeholders though com- the Murtala Muhammed Air- aircraft will be configured to all mended the plan to lift the re- port (MMA), Lagos, Nnamdi first-class seats for economic striction on commercial flight Azikiwe International Airport operations. No airline can ever services; they said the local (NAIA), Abuja, Port Harcourt In- break even with less than 40 per carriers were more at risk of col- ternational Airport (PHIA), Port cent load factor at the extreme- lapse at less than 40 per cent Harcourt, Mallam Aminu Kano ly low fares prevalent in the mar- flight capacity. International Airport, Kano, and ket. It will be recalled that the In- the Akanu Ibiam International “The prices are less than ternational Air Transport Asso- Airport, Enugu. The airlines will $100, the same level of 30 years ciation (IATA) recently rejected also operate at a reduced ca- ago. Lagos to Abuja was N2, the idea of keeping the onboard pacity of between 50 to 70 per 200 in 1990. Exchange rate was middle seats vacant as part of cent. N22/$. A lot has changed since measures to prevent the spread President of the Aviation then but the fare range is still of coronavirus. Safety Round Table Initiative constant. But the problem is, According to estimates, dis- (ASRTI), Dr. Gabriel Olowo, said can the passengers afford high- tancing measures on aircraft the coast was not yet clear for er levels of the tariff?

Conditions attached to the partial reopening, espe- cially onboard physical distancing, reduced maximum capacity, continued restriction of their foreign counter- parts and denial of government’s bailout are all not in the best interest of already beleaguered local aviation businesses.

50 Aviation 06:20

“This is where the govern- natives in domestic cargo trans- gers will not be allowed into the ment’s intervention in airline portation to passenger air traffic Airport Terminal Buildings. Peo- economics is needed in Nige- that could take up to a year to ple coming to pick up arriving ria. There should by deliberate recover to the pre-COVID-19 lev- passengers are advised to re- application of subsidies on fuel, el, a high number of them would main in their cars until passen- taxes, airport charges, Value go aground. gers exit the gate. Stay safe.” Added Tax (VAT) or lower inter- “Government, on the other FAAN also urged travellers to est rate on loans, quick foreign hand, should give the operators wear face masks, maintain two exchange availability, and so on, palliatives but it must not be metres distance from each oth- in order to lower airlines’ cost of monetary because previous fi- er while also advising them to operations,” Olowo said. nancial intervention in hundreds arrive at airports at least three Aviation security consultant, of billions to the domestic air- hours before flights to ensure Group Capt. John Ojikutu (rtd), lines is yet to be recovered fully proper checks. added that Covid-19 had ex- after almost 10 years Newsmen report that the posed the weaknesses of the In another development Federal Government said civil commercial aviation sector ahead of the resumption of com- aviation authorities will deter- globally, and magnified the Ni- mercial flights in the country, mine the resumption of domes- gerian sector in particular, and the Federal Airports Authority of tic flights in the country. its contribution to the national Nigeria has advised non-travel- However, while giving an up- economy. lers to stay away from airports date PTF said it was yet to re- Ojikutu said the industry was in the country. ceive any update from the avia- going through a hard time under FAAN also said that passen- tion sector on its preparedness the pandemic and except the gers must arrive airport three to restart commercial flight op- stakeholders make sacrificial hours before boarding. erations. efforts, instead of insistence It also enjoined persons Nigeria’s airports and air- on financial bailouts from the coming to pick up arriving pas- space were shut in March by government, “we may come out sengers to remain in their cars President Muhammadu Buhari worst of the present situation until passengers exit airports’ as part of efforts to contain the than we are now.” entrances. COVID-19 pandemic. “Except the international air- The Authority made this But the President’s directive lines’ operations begin into our known as part of the new pro- allowed the operation of essen- country, we may be losing the 80 tocols for the restart of flights tial flights including those for per cent contribution they make amid the coronavirus pandemic. medical and evacuation purpos- into our earnings. If the domes- Announcing via Twitter, it es, amongst others. tic airlines fail to look for alter- wrote, “Non-travelling passen-

51 Property 06:20

Experts Advocate Joint Venture Schemes to Bridge Housing Defi cit

–By Danlami Nasir Isah

s the coronavirus pan- who is also a lawyer, posits that might not be attractive to inves- demic continues to exert one of the major challenges is tors. If the return is yearly, more Aexcruciating effects on the cost of capital, stating that often than not, it can’t even take the economy, especially the real capital attraction is always an care of interest on some bor- estate sector, experts are advo- issue and parties must, there- rowed capital and so partners cating the use of joint venture to fore, think deep, carry out a fea- might not want to go into such bridge the huge housing defi cit sibility study on what will attract project.” currently existing in the country. people for the viability of proj- According to him, outright According to them, the initia- ects they intend to embark on. disposal or sale of housing units tive will provide an avenue that He said that in Nigeria’s envi- in most properties developed will be of practical assistance to ronment, the cost of acquiring through joint venture may be the industry and decision-mak- Certifi cate-of-Occupancy tends diffi cult due to the current eco- ers, re-engineer the need for to build up the cost of develop- nomic environment, and so pro- cost-reducing approaches to ment thus, serving as a disin- jection might be skewed and planning and engineering prac- centive to some investors. failure to sale property may lin- tices for property developments. “When it comes to JV, you ger. While some schemes have think about who can bring in de- He also said with current real- yielded positive outcomes in velopers and investors that will ities, the challenge of COVID-19 highbrow locations of Lagos like bring in an equity fund and don’t could pose further strain to the Lekki, Ikoyi, Abuja, and Port Har- really need to borrow. model, as those who have capi- court, many others have failed “They also have to think about tal will be very careful with their to see the light of the day in oth- the opportunity cost of the proj- fund. er locations due to contentions ect. If the return for example in Omuojine particularly said the between parties. the money market is about 22 joint venture would be diffi cult An estate surveyor and valuer, per cent and return for a joint for luxury commercial and resi- Omuojine Emmanuel Obiajulu venture is not that profi table, it dential developments investors

52 Property 06:20

Medium income development is an area that will be viable any day and that is an area where JV can thrive effectively. There could be an attraction for tourism real estate within the country although capital inten- sive, joint venture will work effectively in such a model is properly designed. will have to think outside the ly impact it. box of such structures to build The Director at EchoStone low, and middle-income housing Nigeria, Mr. Sammy Adigun, ex- that are affordable. plained that the biggest chal- “Medium income develop- lenge is when the expectation ment is an area that will be vi- of either party in the scheme is able any day and that is an area hardly met because of market where JV can thrive effectively. forces, social factors and the There could be an attraction for volatility of the country’s econ- tourism real estate within the omy. country although capital inten- According to him, for a suc- sive, joint venture will work ef- cessful joint venture arrange- fectively in such a model if prop- ment, there must sincerity of erly designed. purpose and parties to such ini- Another practitioner who has Mr. Sammy Adigun tiatives must do an open book wide knowledge in real estate in such a way that there is noth- law, Mr. Francis Okpaleke said ine three months has gone out ing hidden and the necessity to generally, a typical issue for of some projections and ar- show all the costs for the part- joint venture schemes is a fail- rangement some people have. nership to work. ure to adhere to the sanctity of “There is a lot of business dis- “For example, you are going contract, whereby people en- agreement and issue of force into a joint venture to build a tered into agreements with wa- majeure and if it is not projected two-bedroom for N5 Million but ter-tight terms and conditions in the contract, there can be an at the end, you end up spending but one party tries not to fulfil issue. In an ideal society even N7 million because prices have what they have put down in writ- if there are disagreements, en- gone up. So the other partners ing. forcement shouldn’t be a prob- to the project may feel at a loss. “There are some fundamen- lem.” Yes, quality is one thing but the tal things partners to projects He advised that there should biggest issue is to have an open usually do before moving into be an improvement in the abil- book system”. the arrangement like valuing the ity of the legal system of the He observed that the dearth land, agreeing on the cost and a country to discharge justice and of joint venture schemes in Ni- lot of financial things. JV is all make ease of doing business geria housing sector relates to about projections and so other further possible, stressing that the absence of straight forward issues can be beyond parties”, disagreement relating to hous- businesses in the environment. he stated. ing development shouldn’t be al- “It is either somebody wants “When the economy is vola- lowed to linger long in the court. to hide something or doesn’t tile like the COVID-19 era. Peo- Okpaleke further said that par- want to be open. Maybe as time ple entered into the year with a ties in contracts should deploy goes on, the other party gets to lot of plans but nobody factored the modern trend of including know that certain information COVID-19 into contracts and alternative dispute resolution was hidden, it leads to distrust projects even though lockdown mechanisms in construction and distrust leads to the col- has been relaxed but activities contracts to shield contracts lapse of the relationship”, he are not yet picking up. So imag- from issues that could adverse- added.

53 Sports 06:20 ‘I Will Never Forget This Day’ – Adepoju reminisces Nigeria’s historic World Cup debut –Compiled by Saidu Abubakar, courtesy of goal.com utiu Adepoju reveals that biggest highlights of my career Nigeria’s World Cup de- as a footballer and I will never Mbut against Bulgaria is forget this day.” one of his biggest moments as Nigeria bowed 2-1 to Argen- a footballer. tina at the Foxboro Stadium in The Super Eagles shrugged the second game – with Claudio off threats from Cote d’Ivoire and Caniggia’s brace cancelling out Algeria to qualify for the com- Samson Siasia’s opener after petition for the first time – and eight minutes. were zoned in Group D against Qualification for the next Argentina, Greece and Bulgaria. round was guaranteed following Clemens Westerhof’s team a 2-0 win against Greece which made a winning start in the was made possible with Finidi United States of America by George and Daniel Amokachi defeating favorites Bulgaria finding the net. 3-0, Dallas with Rasheed Yekini, The Africans’ fairy tale run Daniel Amokachi and Emmanu- came to an end in the Round of el Amuneke getting the goals at 16 owing to a 2-1 defeat to even- the Cotton Bowl Stadium. tual runners-up Italy. Amuneke In that encounter, former Real handed Nigeria a 26th minute Madrid midfielder Adepoju was lead before Roberto Baggio lev- introduced in the game as a elled scores for the Europeans 69th-minute substitute for Sam- in the 89th minute. He complet- son Siasia. ed his brace in the 101st via a Sunday, June 21 marks the resulting penalty kick from Au- 26th anniversary of the coun- gustine Eguavoen’s clumsy chal- try’s maiden appearance and lenge on Antonio Benarrivo. their famous victory over the Eu- Adepoju who also starred for ropeans. Mutiu Adepoju Racing Santander and Real So- And to celebrate the ciedad made occasion, the LaLiga the coun- ambassador took to so- try’s squad to cial media to express the 1998 and his delight being a part 2002 World of history. Cups staged “On this day 26 years in France and ago, I made history South Korea with Nigeria to feature and Japan re- in the country’s maid- spectively be- en World Cup game,” fore drawing Adepoju tweeted. the curtain on “The icing on the his internation- cake was a 3-0 victo- al career after ry over Bulgaria. This 48 caps and six is no doubt one of the Eagles in celebration goals.

54