WEDNESDAY 5 DECEMBER, 2012

See this report at Part 3 worldfolio.co.uk A special supplement by GLOBUS VISION

NATIONAL RECONCILIATION Regional integration to ‘One voice, boost the nation’s economy one country’ The PDP is leading The country is Nigeria to brighter days opening doors to For more than three decades the people increased intra-African of Nigeria lived under various military regimes, which stunted economic trade and arousing growth. This all changed in 1999, when the People’s Democratic Party (PDP) international interest was voted into power – its intention: to unite civil society and create a function- in its markets ing democracy. The most recent elections in 2011 were deemed by most observers to be “Nigeria is not just a land of promise; the most democratic yet. Goodluck Dr Alhaji Bamanga Tukur, it shall be a nation where positive Jonathan won the majority vote – he National Chairman of the PDP change will continue to take place, was initially appointed as president in for the good of our people,” promised 2010 upon the death of former ruler find the best. We like that competition Goodluck Jonathan when he was Umaru Yar'Adua. Mr Jonathan is from with other parties, because it gives us the sworn in as President of Nigeria. De- a minority tribe in the south – in a coun- opportunity to show that we can do bet- spite the momentous task of turning try with around 250 tribes, this fact at- ter. If you are not challenged, you don’t the country’s economy around, erad- tests to the President’s popularity amongst know how far you can jump.” icating corruption and boosting in- the general population. Indeed, the cur- Another key challenge for Nigeria is vestment in order to lessen the rent administration’s aim is to serve as the issue of Boko Haram, an Islamic country’s dependence on oil, it seems an umbrella that represents all citizens. sect which is frequently in the interna- ‘Goodluck’ is more than just a sym- The Nigerian government Nigeria’s image in the past has been tional press for bombing churches, gov- bolic name – Nigeria’s economy is has invested heavily in tarnished by reports on corruption, but ernment institutions and infrastructure. going places. improving living conditions the PDP is keen to reiterate that there is The breeding ground for this kind of ex- Regional integration was discussed in the country far more to the country. And with his tremism is severe poverty in the north- at a recent forum to commemorate administration’s pledge to invest in ed- ern and predominantly Muslim part of Industrialisation Day in Abu- ucation, he is putting Nigeria on the Nigeria. A lack of and high ja. The Minister of Trade and Invest- road to serious development and leav- unemployment have been identified by ment, Olusegun Aganga, announced ing corruption behind. “The greater the analysts as key driver of the violence. that Nigeria will remove tariff and economy as a whole and strengthened The country’s fiscal framework Nigeria’s turnaround is backed by opportunity, the greater the challenges,” Leaders believe that investments in ed- non-tariff barriers to trade across the West Africa’s bargaining position. has been strengthened by the cre- former UK Prime Minister Tony says Dr Alhaji Bamanga Tukur, Na- ucation, health, agriculture and infra- continent in a bid to enhance com- Meanwhile, challenges within Nige- ation of the Nigerian Sovereign In- Blair, who also spoke at the summit. tional Chairman of the PDP. “Corrup- structure will address the root of the mercial relations within the region ria include the development of the vestment Authority, an organisation He encouraged foreign investors to tion and conflict hardly occur where problem and give hope to the people, and attract investment. Nile Delta region – the county’s oil- which serves to institutionalise sav- utilise their expertise and funds to people have opportunities.” thereby stabilising the security situation. Consolidating this move, the African producing state. The Governor of Delta ings from commodity-related rev- boost education and infrastructure The PDP seems to have gained the trust Nigeria looks to Germany as a coun- Union, United Nations Economic State is Dr , enues and thus help to avoid boom development, adding that an im- of the nation. “The PDP was founded try from which it can learn many lessons. Commission for Africa, and the Unit- whose main objective in 2013 is to and bust cycles and the economy’s provement in these sectors would al- on the philosophy of inclusiveness, mean- “The German philosophy of ‘mentoring’ ed Nations Industrial Development lessen dependence on oil, and place exposure to oil price volatility. low Nigeria to meet its Millennium ing that everybody is a stakeholder, from is a great asset,” says Dr Tukur. “Ger- Organisation, stressed the need for more emphasis on other sectors. His The third Nigeria Investment Sum- Development Goals (MDGs). Reas- the family, to the community, to the na- many believes in training its people, right the creation of a Continental Free goal is to create jobs, ensure peace mit, which was jointly organised by suringly, Mr Blair acknowledged that tion itself,” says Dr Tukur. “That is one from the lowest level, and helping them Trade Area by 2017, to help increase and security, reduce poverty, build in- the Nigerian Mission to the UN and public investment has risen to a com- of the reasons why PDP represents ac- understand what they do and how they trade among African countries. frastructure and grow the economy. the African Business Roundtable, and mendable level. ceptability. Of course there are always can do it better. This is what the PDP re- President Jonathan has also present- The guiding principles of Mr held in New York in September, Other dignitaries at the summit challenges, people compete, and try to ally wants to achieve here in Nigeria.” ed Nigeria’s customs authority with Jonathan’s of Nigeria are showed how far Nigeria’s economy praising Nigeria’s economy included, the task of developing ways by which outlined in the Transformation Agen- and credibility has come. Leading PDP National Chairman Dr Alhaji GLOBUS VISION Albert Buildings, 49 Queen Victoria Street, the country’s borders could allow Nige- da, which has so far yielded positive world figures attended and showed Bamanga Tukur and former US Sec- London EC4N 4SA Tel:+44 (0) 20 7409 2354 ria to reap the economic benefits of results. Key sectors of the economy their support for Mr Jonathan’s de- retary of State Condoleeza Rice. [email protected], www.globusvision.com global trade. He was speaking at con- now have solid foundations – includ- velopment strategies. Further testament to Nigeria’s ference in Katsina in November on the ing agriculture, infrastructure, health- The Nigerian President is deter- turnaround comes in the form of a Globus Vision would like to extend a special thanks to Olisa Metuh topic of ‘borders divide, customs unite’. care, petroleum, aviation, education mined to create a more transparent report from international financial Relations with neighbouring coun- and electricity. The emphasis is on business sector – saying that “Nige- conglomerate Citigroup, whose chief tries have generally been positive. rebuilding infrastructure, creating ria will not fail”. Speaking at the In- economist predicts average growth PROJECT TEAM: Nigeria championed the formation of greater access to healthcare and edu- vestment Summit, he emphasised that of 6.9 per cent between 2010 and Irama Vega,Juan Carlos Jover,Nadine Padron, the Economic Community of West cation, and boosting the agricultural Nigeria’s government is dedicated to 2050. He also names the country as Fabricio Domingues, Manuel Ferrero, Niall O Maonaigh, African States (ECOWAS) in 1975, sector so that food security is guaran- creating an enabling environment for one of the world’s leading ‘Global Sara Valle, Fernando Mora and Agata Samborska which helped to develop the region’s teed and jobs are created. foreign investors. Growth Generators’.

An independent supplement distributed with the Financial Times Deutschland by Globus Vision who take sole responsibility for its content 2 NIGERIA WEDNESDAY 5 DECEMBER, 2012 NDDC leads the real change in the Niger Delta The Niger Delta Development Commission is propelling Nigeria into the club of the world’s 20 largest economies

Since its inauguration in 2000, the Dr Oboh’s experience has been a ers today is what will determine the Niger Delta Development Commis- very important factor in achieving state of affairs – both for individu- sion (NDDC) has focused on the de- those goals. Before he went to work als and communities – in the region velopment of social and physical at the NDDC he served as Head of tomorrow. infrastructures, ecological and envi- Public Affairs Services at the Niger- ronmental remediation and human ian Agip Oil Company (NAOC), in Protecting both people and envi- development. The goal is propelling which capacity his desire to achieve ronment Nigeria into the prestigious club of goals manifested in several feats. The current NDDC mandate has the largest 20 economies in the world For example, he developed a sys- implemented the formulation of new within a few years. tem that ensures every memoran- policies and guidelines for sustain- The NDDC was created largely as dum of understanding reflects the able development of the Niger Delta a response to the demands of the host communities’ contributions to area in the field of transportation, in- population of the Niger Delta, a pop- the company’s activities. The com- cluding roads, jetties and waterways, ulous area inhabited by a diversity bination of his proactive nature, de- health, employment, industrialisa- of minority ethnic groups. During the sire for achievement and application tion, agriculture and fisheries, hous- 1990s these ethnic groups, most no- of academic knowledge to practical ing and urban development, water tably the Ijaw and the Ogoni, estab- issues propelled him from senior to supply, electricity and telecommu- lished organisations to confront the management cadre at NAOC in an nications. Moreover, it has also Nigerian government and multina- unusually short time. launched measures, master plans and tional oil companies such as Shell Since the new board took charge, schemes designed to promote the and ExxonMobil. The minorities of the organisation’s efficiency in proj- necessary physical development of the Niger Delta have continued to ag- ect delivery has enormously im- the Niger Delta region. itate and articulate demands for proved. The new managing director For this purpose, the NDDC is try- greater autonomy and control of the holds the proud record of deliver- ing to identify factors inhibiting the area’s petroleum resources. ing 80 per cent of the projects ap- development to ensure sound and The main goals of the NDDC are proved of the NDDC and developing “Our goal is to deliver efficient management of the re- focused on infrastructure develop- more projects in 2012 than in the infrastructure projects sources of the Niger Delta region. ment and the real diversification of whole history of the Commission. The Commission is tackling ecolog- the region’s economy, reducing its Governor of , Owelle Ro- that will attract the ical and environmental problems that oil and gas dependence. chas Okorocha has highlighted that arise from the exploration of oil, and “Our goal is to deliver infrastruc- the efforts the NDDC has made so economic emancipation advising the Federal Government on ture projects that will attract the eco- far “is a manifestation that the pres- the prevention and control of oil nomic emancipation of our people ent board is living up to its billing.” of our people and our spillages, gas flaring and environ- and our first priority was to increase The NDDC’s Master Plan is de- first priority was to mental pollution. the level of governance to ensure signed to offer stakeholders at all The Commission also liaises with that there is peace for everyone to levels – individual, group and com- increase the level of the various oil, mineral and gas work in the right conditions. We tell munity – the opportunity to partic- prospecting and producing compa- our brothers out of Nigeria that the ipate fully in the planning and governance to ensure nies on all matters of pollution, pre- situation is more peaceful than four decision making process. Specifical- vention and control. All these works years ago. And now we are looking ly, the coordinating consultants re- that there is peace for and functions are necessarily re- for international partnerships,” says quire the ideas and opinions of everyone to work in quired for the sustainable develop- the Commission’s Managing Direc- stakeholders as a basis for defining ment of the region and its people. tor and CEO Dr Christian Oboh. focus areas for development and for the right conditions.” The NDDC’s Master Plan is basi- When Dr Oboh was appointed as producing a vivid picture of how cally conceived as a tool that the MD/CEO of the NDDC in late 2011, the people want the Niger Delta re- millions of people of the Niger Delta most of the projects were still un- gion to look within 15 years of the Dr Christian Oboh, region can use to update their com- One of the NDDC’s main objectives is the development of infra- completed and many cases of cor- Master Plan’s implementation. This Managing Director and mon vision and build their future to structure to reduce dependence on oil and gas ruption had been detected. implies that the input of stakehold- CEO of the NDDC the standard they desire. The transformation of the land of oil and gas

The oil-rich Niger Delta region has been the and ability to realise the promised im- African issues, Richard Dowden, has bringing people back and instilling con- provements and job creation are criti- described Nigerians as astonishingly tal- fidence in them.” development paradox of the Nigerian economy cal to the task of eliminating the region’s ented people. “In business, law, , As for its international appeal, Nige- “Now we are on top grievances. art, literature, music, sport Nigeria pro- ria is the largest recipient of foreign for many years.After 20 years of armed conflict In July 2012, more than 5,200 ex-mil- duces phenomenally talented individ- direct investment (FDI) in Africa, and of security, and we over oil and gas, initiatives undertaken by the itants were taking advantage of the var- uals as if its superheated society throws President Jonathan’s administration are bringing people ious forms of vocational skills training up brighter, hotter human beings than has set the goal of becoming one of government are putting the region on track for or more formal education, both in Nige- anywhere else,” he said last year, ad- the world’s top 20 economies by the back and instilling ria and in other parts of the world. In- dressing the President and other guests year 2020. greater security and efficiency deed, Nigerians on this programme at Nigeria’s 51st Independence Anniver- Governor of , Chibuike confidence in them.” have been sent to 28 foreign training sary celebrations. , underlines his state’s The Niger Delta, a densely populated to the needs and demands of the peo- institutions in 15 countries around the If his assessment is correct, then the openness to investment: “Rivers State Theodore A. Orji, and oil-rich region comprised of nine ple of the Niger Delta. world in addition to 36 local ones in amnesty programmes are sure to bring is well and truly open for business. We Governor of states, has found itself at the centre of Lauren Ploch, Analyst in African 10 different Nigerian states. The career stability and efficiency to the region and welcome investors, both local and for- national and international controver- affairs with the US-based Congres- choices range from construction, weld- attract Nigerians who years ago fled eign, to come and take advantage of the sies over environmental, social and sional Research Service, wrote in a re- ing, agriculture, shipbuilding, oil and from the violence. many opportunities we offer and help “We welcome investors, economic issues. In the early 1990s, port to the US Congress that successive gas engineers, and maritime trades, to “In the past, people ran away from us improve the life chances of every- disputes broke out between foreign oil Nigerian governments had pledged to entrepreneurial programmes, automo- their own state,” observes Theodore one here.” both local and foreign, companies and local communities and engage the disaffected communities tive technology and even aviation. A. Orji, Governor of Abia State. “Now Obong , Gover- ethnic groups, who demanded more in the Delta. But few of their efforts A British journalist specialised in we are on top of security, and we are nor of Akwa Ibom, has also highlight- to come and...help us control over the natural resources of were successful until 2009, when then- ed his state’s advancement: “We are their region. These led to the emergence president Umaru Yar’Adua declared building the foundations of prosperity improve the life chances of militia groups, which in turn led to an amnesty for Niger Delta militants and development for a secure and mod- of everyone here.” the militarisation of a significant part in conjunction with integration and ern .” of the Niger Delta. Poverty, crime, training programmes. President Jonathan, following in Chibuike Rotimi Amaechi , piracy, theft and pipeline vandalism His successor President Goodluck his predecessor’s footsteps, has vowed Governor of River State rose dramatically, causing environ- Jonathan has followed through with to improve Nigeria’s image abroad mental disasters such as oil spills and Yar’Adua’s various initiatives towards as a key partner in regional peace and floods. achieving peace and development in the anti-terrorism efforts, and to end the “Ability for innovation, As a nation with a nearly total de- region. To date, thousands of militants “culture of impunity” that had until pendence on oil and gas (90 per cent have handed over their weapons, re- recently gone fairly unchecked. His bold action, response to of revenues derive from exports of hy- nounced violence and accepted the of- counterattack on corruption and hu- drocarbons), Nigeria could not afford fer of remuneration and vocational man rights violations has made head- shocks and crises are this situation, especially in its richest training. According to estimates by the way, as Nigeria’s tarnished reputation evidence of the capacity... oil zone. During the height of the cri- Nigerian government, more than 20,000 slowly begins to clear up. sis, oil production fell to just 700,000 people have benefited from these pro- Dr Chiedu Osakwe, Director of the to contribute to the barrels per day (bpd) – compared to grammes, which cost the country some Accessions Division of the World 2011, when production averaged about $400 million annually. Trade Organisation (WTO) wrote in construction and 2.6 million bpd. Despite some remaining groups car- his latest book: “Ability for innova- For this reason, in 2000 the Niger rying on their criminal activities, Pres- tion, bold action, response to the consolidation of the Delta Development Commission (ND- ident Jonathan is forging ahead with his challenge of external and domestic modern Nigerian state.” DC) was founded to establish social and policy to fund “post-amnesty” inter- shocks and crises are evidence of the physical infrastructure and to promote ventions and development projects in capacity of the managerial class to Dr Chiedu Osakwe, environmental conservation and hu- the Delta with the aim to improve trans- contribute to the construction and Director of the Accessions man development. Indeed, the Commis- port, education and health. The Niger Delta is being cleaned up, both in terms of crime consolidation of the modern Niger- Division of the WTO sion was created largely as a response Ultimately, the government’s efforts and environmental protection ian state and its stabilisation.”

An independent supplement distributed with the Financial Times Deutschland by Globus Vision who take sole responsibility for its content WEDNESDAY 5 DECEMBER, 2012 NIGERIA 3 Establishing a sustainable security system in Nigeria Abia State is re-establishing peace and security within the state, which in turn is helping Nigeria regain a reputation for safety

Thanks to an extensive police and enjoying peace and safety at home military presence, as well as the ef- again. forts to improve local living condi- Nevertheless, Abians are general- tions and the enforcement of court ly aware that further challenges re- decisions and the law, Abia State in garding the security of the country are Nigeria has managed to restore se- yet to be dealt with, especially in curity in the region. view of the terror network Boko Today, Abia is one of the safest Haram. The Abia State government states in Nigeria. Just three years ago, and the officially responsible politi- violence, crime and corruption were cians within the federal government rife. “So we started working with the of Nigeria, however, agree on the federal government, and we brought need to cooperate in consolidating in security measures and we empow- the police force and government with ered all the security agents and the continuous measures to guarantee people, who gave us information. In- Nigeria’s safety. formation is power,” explains Abia “Safety encourages development. State Governor, Theodore A. Orji. The emphasis is on the people, so if This was the beginning of a new you partner with the people, devel- era for the region, one which has been opment will follow,” says Mr Orji. marked by security and justice. More Only with a perfectly operating se- than that, it also hailed the beginning curity system will it be possible to set of economic recovery. Abia and other Nigerian states on the Local and foreign investors have right track – economically, political- settled in Abia and are gradually ly and socially. transforming the country into an eco- “Everything we do is for the safe- nomic stronghold in Africa. The new ty of the citizens of our country,” se security measures have also enabled says. “It is our dream that our chil- the realisation of education projects dren will inherit the same free, safe and several major social services. and prosperous state that we have The people of Abia are once again tried to create in Abia.” Governor Theodore A. Orji speaks about the measures his government is taking to tackle crime and violence Funding comprehensive Unlimited possibilities development for foreign investors The state government of Abia cautiously invested in the construction Abia is creating of efficient and sustainable projects, thereby establishing and all the necessary building up confidence within the region conditions for Abia State is helping bring confidence Mr Orji, the government and the Mr Orji’s government has managed effective, dynamic back into its own country. The popu- population all agree that only with to generate a variety of new, signifi- lation now is beginning to trust in the comprehensive economic, political cant projects in Abia. Besides sever- development newly developed strengths of Nigeria and social development is a strong al environmental projects regarding and sees the future of its own state as and stable state possible. Develop- electricity and water supply, the gov- positive and stable. The people do not ment and democracy are two com- ernment has established the founda- Abia is a state with abundant natural only have a newfound confidence in plementary processes, because tion for the integration of young people and human resources, two important their government; they are also par- without democracy, structures fur- into the labour market. Education and foundations for economic growth. To- ticipating in shaping the country on its thering development are likely to social integration in Abia have a par- day, investors will find the best con- path to democracy. break down and the economy will ticularly high priority for the officials. ditions yet to use the capacities “We are concentrating all our ef- stagnate within a short period of time. Due to the continuous support of ed- available to become a part of the bur- forts to sustain and nurture democ- Therefore, Abia is determined to ucational institutions, the country to- geoning economy in Abia. State Gov- racy,” Governor Theodore A. Orji strengthen democracy and promote day has more than 800 primary ernor Theodore A. Orji looks positively promises. the widest variety of developments. schools, 160 secondary schools, a towards the future of the region. teacher's training college and five “We welcome investors from all technical colleges. over the world,” says the head of the Furthermore, not only has the de- state government, referring not only velopment of education increased, the to the possibilities of production, but construction industry has similarly also the development of industry with experienced positive growth in recent the necessary infrastructure such as years as well. The construction of good roads, electricity and water sup- housing projects is just as successful ply, and of course communication as the establishment of new medical facilities. clinics and hospitals. By using the lat- Abia’s government knows the im- Abia has grown in recent years to become a est technologies in combination with portance of continuous investment. trained personnel, the development With the establishment of banks and haven for foreign investors of the industry is seeing a true uplift. other financial institutions, loans for The state government is currently industrial development can be ensured. promoting the construction of a new Already several investors from vari- State’s commercial cities, which constant transfers of know-how in the administration building with a budg- ous industries have relocated to Abia were dreaded areas in the past,” says fields of health, construction and ed- et of just N1.5 billion ($9.4 million). to take advantage of its excellent con- Mr Orji. ucation, new investments are needed In comparison, the state gov- ditions, and the local governments “Everyone wants to invest in an en- and welcomed to strengthen the sta- ernment is just spending N13 billion have zoned areas for commercial and vironment where you can reap the bility of the country and ensure eco- on the construction of a building to industrial purposes with all the neces- fruits of your investment,” he adds. nomic growth and security. house the local council. This is just sary infrastructure. “We are welcoming investors here and Abia is becoming one of the most one clear example of how the Abia “We are proud to say that both lo- we have signed MOUs. We know the peaceful states in Nigeria and has be- state operates efficiently and trans- cal and foreign investors and our in- importance of investment.” come a haven for foreign investors in New hospitals and schools have recently been built parently with the money available. dustries are now booming in Abia Even though there are investors and recent years.

An independent supplement distributed with the Financial Times Deutschland by Globus Vision who take sole responsibility for its content 4 NIGERIA WEDNESDAY 5 DECEMBER, 2012 WEDNESDAY 5 DECEMBER, 2012 NIGERIA 5 Gas and oil revenues will be invested in the diversification of Delta’s economy The government of Nigeria’s provides special support the tourism sector, agriculture and human development in the region Delta State holds vast oil reserves, but in rural healthcare, payment of school fees order to diversify the economy, the re- for senior secondary school students and gional government wants to reduce de- bursary schemes. pendence on oil and multinational “Our state has a young and healthy pop- companies. State Governor Emmanuel ulation,” says the Governor. “Children Uduaghan wants to invest the income have access to free healthcare from the generated by the oil sector in infrastruc- day they are conceived. Likewise, women ture and human development, as well as have access to free healthcare from the in agriculture and tourism, mainly to stim- day they become pregnant, up to the first ulate general progress in the region. For five years after birth.” a state that earns nearly 33 per cent of its Good health is a vital starting point for revenue from oil production, this repre- developing human capital. By ensuring sents a real challenge for the government. the state’s population is healthy, Mr Ud- Since Mr Uduaghan became governor uaghan is ensuring the presence of a sol- in 2007, he has continuously tried to sta- id workforce for the future. Add to that bilise a region that, for a long time, has the youth training schemes, such as those been dogged by conflicts, mainly be- within the farming sector, and the result tween ethnic tribes and multinational will hopefully be a significant boost to companies operating in Delta State. Al- the local economy. so since then, the state has enjoyed a pe- “The Uduaghan administration be- riod of peace and stability that is lieves that empowering people in the ru- extraordinary for Delta State. ral areas can leap-frog the development The Governor aims to turn Delta State of the state,” a government statement ex- into a popular tourist destination. He plained. The state government has so far therefore wants to foster regional art, empowered 37,545 rural dwellers through culture and traditional handicrafts. Nat- The state government has so far empowered 37,545 rural dwellers through its highly inclusive Delta Micro-credit Programme the Delta Micro-credit Programme, an ini- ural resources and history should also tiative established to introduce rural ar- be revitalised. Wonderful landscapes, “The complex would be something like some of our former lustre in that sector. New legislation from the federal gov- eas to commercial activities and food waterfalls and mountains make the re- a cultural centre with a water park, enter- The state was a known palm oil resource.” ernment to ban the importation of rice in- production, especially at the cottage lev- gion very attractive. In addition to that, tainment facilities, shops and hotels,” The government now wants to produce “Delta’s strategic geogra- to Nigeria within the next two years is el. This programme is targeted towards the state is home to many castles and in- says Mr Uduaghan. an excess of produce in order to feed the good news for Delta State’s farmers. The the rural population and the urban work- teresting historical monuments. The state will finance the infrastructure population and be stronger in the export phy, lush landscapes and ban has been made with the aim of boost- ing poor; unemployed people, particu- However without the right publicity of this park with €8.8 million for the market. pleasant weather make ing local production. In anticipation of the larly school leavers; economically and advertising, the state will never be building of streets and bridges. The in- To help achieve this, there are many veto coming into full effect, the admin- disadvantaged persons, especially, known. Therefore large investments are vestment will later be reimbursed by Sarn- government assistance schemes, subsidies it attractive for visitors istration of Delta State is pushing hard to women; and physically challenged peo- needed. The fact that the region is not very er. The various artists that live in the and funds available to farmers in Delta re-awaken interest in rice farming. This ple who face discrimination. well known yet is seen as a big advan- region are another way to attract tourists: State, as well as training for young farm- who want to experience summer, Mr Uduaghan met with farm- There are currently a huge number of tage for adventure and cultural tourism. “We have very good musicians, actors and ers. One initiative is a specialised Tree ers in the state in order to learn about the changes under way in Delta State – “Part of our strategy is to use the money comedians. Our cultural infrastructure al- Crop Unit (TCU) that produces seedlings more of Nigeria.” challenges they face and gain feedback changes that are giving the population that we get from the oil business for these lows big live concerts and performanc- to distribute to farmers in the region. The Emmanuel Uduaghan, on assistance given so far by the Ministry hope and opportunities. “When you talk means, to expand infrastructure and hu- es, especially in . Warri also has a aim is to boost production of food, pro- of Agriculture. The idea of farmers form- about change and what the state govern- man development, in order to strength- special event centre,” says the Governor. vide raw materials for agro-allied indus- Governor of Delta State ing co-operative groups in order to access ment has done so far, the answer would en growth and progress of the Delta State,” tries and improve the farmers’ incomes. loans was discussed. Furthermore, the differ from person to person,” says Mr says Mr Uduaghan. Growth from the ground Seedlings distributed include oil palm, rub- The state government has also devised Governor explained to farmers that agri- Uduaghan. “If you ask somebody com- Delta State having good transport con- An abundant water supply, favourable ber, cocoa, cashew and coconut. a rewards programme to develop the cultural tools would be made available ing in and out of Delta, he or she would nections via sea and air makes it even more climate and acres of arable land are as- Delta State belongs to a league of 14 rubber industry. Assistance is given to them at a subsidised rate. tell you about the improvements in trans- possible that the strategy to focus on sets that Delta State also wishes to exploit. cocoa-producing states within Nigeria. with replanting, rehabilitation and bud- portation (both land and aviation). Like- tourism will work out for the govern- Root crops including yams and sweet po- Though overall production is minimal in wood nursery development. It has Nurturing human capital wise, if you were to talk to a rural woman ment. There are harbours in Warri, Sapele, tatoes grow well, as do rice, peanuts and the Delta region, cocoa is most-heavily helped 375 farmers to replant 2,265ha, The Uduaghan administration is put- who had met some difficulty in child- Burutu and Koko, and there is a modern numerous fruit and vegetables. Agricul- cultivated in Ndokwa, Patani, Ethiope, Uk- and has rehabilitated 2,724ha for 305 ting its money where its mouth is in terms bearing, she would tell you that the state airport in Osubi. The regional government ture is supremely important to Nigeria and wuani and Ughelli. The TCU and the Co- farmers in the last three years. The state of caring for the population, and thus de- has given her increased access to public is still looking for foreign investors to 70 per cent of the country’s labour force coa Development Committee produce government also procured 30,000 bud- veloping human capital. In addition to healthcare.” support this strategy. There is already one is employed in the sector. “Delta State used between 50,000 and 100,000 seedlings ded rubber saplings from the Rubber Re- the assistance given to farmers, Mr Ud- Either way, it is clear that the Uduaghan project in the pipeline to build a leisure to be very strong in agriculture,” explains every year and distribute them to inter- search Institute of Nigeria (RRIN) for uaghan’s range of support programmes administration is committed to develop- park together with Sarner Limited UK. Mr Uduaghan. “We would like to regain ested farmers for free. rubber farmers. include micro-credit, free maternal and ing Delta State for the good of its people. A new challenge: to become the logistics hub of the Niger Delta’s southern region With different projects in infrastructure, power supply and transport, Delta State aims to become a leader in logistics

Delta State plays an important role in is a free trade zone with modern of- In the Nigerian government’s opin- tion networks and electrical supply, the Nigerian economy. Currently its fices, excellent leisure amenities, and ion, Germany should play an impor- as well as a wastewater system, are revenues come mainly from oil. How- very good living quarters and ac- tant role in this process. Mr Uduaghan already planned. Projects with a val- ever the Governor of Delta State, Em- commodation facilities. There is al- admires Germany and wants to es- ue of N13.3 billion for technical in- manuel Uduaghan, is trying to find so a communication and security tablish closer relations. “My govern- frastructure in Mbora, part of the other sources of income, such as service within the park. ment will set up several workshops capital region, have also been autho- tourism and agriculture. Another idea and educational programmes and pro- rised. In addition to the power sup- is to make the state a logistics hub for fessional training in Germany,” says ply, the government is responsible for the southern part of the Delta Region. Mr Uduaghan. He is looking for for- a working transport system, to make “We are currently building the in- eign investors who are interested in the country the logistic hub for the frastructure and providing the elec- “Our priority is to help participating in numerous interesting southern region of the Niger Delta. trical supply for it,” says Mr infrastructure projects. “We have In this context a lot of the roads Uduaghan. To reduce the power small companies with several projects in the pipeline, which have been restored, widened or ex- costs, he plans to find a more effi- could be interesting for German com- tended. “The road network is very im- cient supply and alternative power re- good perspectives.” panies, including our airports,” he portant for the country,” says the sources to diesel. This is part of the says. Minister for Public Construction, National Independent Power Project In November 2012 the Federal Ex- Mike Onolememen. To attract foreign (NIPP). Emmanuel Uduaghan, ecutive Council (FEC) authorised capital for all these plans, the ad- The regional government also plans Governor of Delta State the start of 28 infrastructure projects ministration and the tax system has to enlarge the Asaba International in nine states of the Niger Delta. The been simplified. “We started with Airport in the capital and the airport total investment for these projects is the Delta State One Stop Shop in the harbour and business city of N99 billion ($623 million). (DSOSSI) for investors. It means Warri. It also wants to increase the “We believe that with these proj- that all processes for investment can possibilities for shipping and invest “Additionally the park takes care ects we can help to accelerate the di- be processed in the same place,” says in residential accommodation, city of waste management for the com- versification of the Niger Delta’s Mr Uduaghan. Apart from this, the planning and telecommunication in- panies, among other services,” states economy, which has been desta- government has a special interest in frastructure. There will be new com- Mr Uduaghan. bilised by the dependence on the oil supporting small and medium-sized mercial parks and business The General Director of the Niger and natural resource industry,” says companies, especially with micro- infrastructure like the Warri Indus- Delta Development Commission the Nigerian Minister for Informa- credits. A system to establish a fi- trial Business Park (WIBP), a joint (NDDC), Christian Oboh, says: “A tion, Labaran Maku. nance system for local entrepreneurs project with ARCO Petrochemical main goal of the government is to Olajumoke Akinjide, the Secre- is in the pipeline. Mr Uduaghan un- Engineering Limited. build the necessary infrastructure, to tary of State for Asaba, the capital derlines its importance: “Our prior- WIBP is symbolic of the variety of make the population economically of the region, explains that the con- ity is to help small companies with the business activities of the state. It independent.” struction of streets, telecommunica- Infrastructure development is ongoing in Delta State good perspectives.”

An independent supplement distributed with the Financial Times Deutschland by Globus Vision who take sole responsibility for its content 6 NIGERIA WEDNESDAY 5 DECEMBER, 2012 WEDNESDAY 05 DECEMBER 2012 NIGERIA 7 Sustainable hydrocarbon production by Midwestern Oil & Gas Company A world-class oil exploration and production company harnessing opportunities in Nigeria’s marginal oil fields, Midwestern Oil & Gas Company Plc aims to become the primary indigenous oil and gas producer in terms of profitability and community coexistence

The Nigerian oil and gas sector is on the verge of important changes; it is being overhauled and opened up to more investment. The long-awaited and frequently stalled Petroleum In- dustry Bill (PIB) could iron out in- vestment uncertainties and set a more transparent regulatory framework for the country’s oil and gas industry. It is currently being discussed and modified by government and industry leaders. The Managing Director of Niger- ian company Midwestern Oil & Gas Company Plc, Adams C. Okoene, has years of experience in the oil and gas industry and is supportive of the bill. He says: “I believe the govern- ment has the best intentions – some- thing has to be done and the PIB will be a turnaround for us, helping us reach our goals.” “I believe we are sitting Improved legislation regarding in one of the world’s transparency and accountability will enable Nigeria’s oil sector to devel- main gas provinces. op and become more competitive and interesting to investors. Oil has a Midwestern is solid and prominent role in Nigeria’s econo- my – providing more than 90 per it will continue to grow.” cent of export earnings – and in or- der to fulfil its aim of becoming one Adams C. Okoene, of the world’s top 20 economies, Managing Director of Nigeria needs to ensure that it crafts Midwestern Oil & Gas the PIB so that it facilitates progress. The company specialises in the exploration, production, and sale of oil, gas and gas condensates from the development of upstream assets Company Plc Midwestern specialises in the up- stream oil sector – the search for, re- A successful set-up boiled it down to about seven factors, Future plans Moreover, Midwestern is involved than 3 million bpd (according the covery and production of crude oil. Today Midwestern has 65 employ- which we have focused on and they Midwestern Oil & Gas is not rest- in talks with Columbia and would like IMF figures). The majority of the While the potential new PIB is wel- ees who work operating a marginal have formed a blueprint of moving ing on its laurels, however; the com- to expand internationally by buying country’s working oil fields are in the comed by Mr Okoene, the company field with a production of approxi- this company forward.” pany wants to nurture growth over fields in Latin America. Further down Niger Delta where there has been has operated sustainably and trans- mately 12,000-15,000 barrels of oil the coming years by adding more oil the line the strategy is to expand lat- conflict – though the promise of the parently since it began and reported per day – an increase from their 2010 Local content fields. Discussions are currently un- erally in the downstream sector by new PIB to provide funding for those steady growth, despite the sometimes average of 7,500-9,500 per day. The The climate in which oil and gas der way with several large multina- commencing operations in diesel and living in oil-producing regions should precarious nature of the sector in total number of barrels the compa- companies operate in Nigeria tional companies with regard to kerosene fuel refineries. quash much of the unrest. Nigeria. ny produced in 2010 production was changes frequently, but Midwestern buying marginal fields. “This would “We still have a lot of time to con- Nigeria has hidden potential in gas Midwestern’s activities include the 1.1 million. is forward thinking and able to adapt result as an impactful change in the sider the decision about whether we – it holds the largest natural gas re- exploration and production of all types “We are the most successful mar- to new regulations. The Local Con- size of our company,” says Mr will get involved in refineries or not,” serves in Africa. “The oil and gas in- of hydrocarbons, and it seeks to ob- ginal field producer in this country tent Act was initiated in 2010 and Okoene. comments Mr Okoene. “First, we dustry in Nigeria is getting better tain, develop and operate the coun- right now,” says Mr Okoene. “Why broadly speaking it decrees that con- There are financing opportunities want to be stronger in what we are every day,” says Mr Okoene. try’s marginal fields (oil fields nearing did we succeed? One thing I have tracts will not necessarily be given for the planned expansion. “Niger- doing now and focus on what we are “The gas we have at the moment the end of their commercial life). learned in my sojourn through busi- to the lowest bidder, but to the com- ian banks are stronger and have con- good at for the time being.” was found when we looked for oil. Partly owned by the Delta State ness, through life: integrity is a crit- pany that has the capacity to do the solidated,” explains the Midwestern We did not even start really looking government (20 per cent) and sever- ical element. When you say work and utilise a Nigerian work- MD. “Lately they are starting to sup- Potential for growth for gas. That time is coming soon and al Nigerian businessmen, the compa- something and people believe you, force – the idea being to boost busi- port companies with potential, such Nigeria is Africa’s largest oil pro- I believe we are sitting in one of the ny was launched in 1999 and it goes a long way. ness at home. “As far as using local as Midwestern. ducer and it joined the Organisation world’s main gas provinces. commenced operations in 2005. It has “You have got to maintain your resources I think is great,” comments “We have the technical skills and of Petroleum Exporting Countries “Midwestern Oil & Gas is solid gained a reputation for its transparen- focus. When we started, we went Mr Okoene. “I always believed in financial structure now to allow us (OPEC) in 1971. In 2011, Nigeria and it will continue to grow. We are cy since its inception and has so far through a process of analysis, like a that. The Local Content act has in- to develop the field. Our ambition produced about 2.53 million barrels a company that foreign investors remained focused on the exploration SWOT analysis, to see what we want- creased the competition so it’s good was always to continue being an in- per day (bpd) of total liquids, but it would be wise to consider as a part- and production of oil within Nigeria. ed and how we would achieve it. We from that perspective.” digenous and successful company.” has the capacity to produce more ner in Nigeria.” Making a difference A solid track record founded on via CSR and vision expertise and applied know-how Poverty reduction and youth employment Decades of experience make Midwestern Oil & Gas Company Plc a key partner

The oil and gas industry in Nigeria its host communities in their festi- In late 1999, Nigeria’s government the Nigerian Society of Engineers. does not always get the best pub- vals both financially and culturally. issued new guidelines for the devel- He has more than 30 years of up- licity, but it would be unfair to tar opment of proven, underdeveloped stream experience with the Shell every company with the same brush. Strategy fields in the country. To achieve Petroleum Development Company As well as operating a policy of Midwestern has short, medium this, 29 abandoned and/or under- (SPDC) in both Nigeria and the transparency and care for the envi- and long-term goals that will en- exploited fields were recovered from Netherlands, and took early retire- ronment, Midwestern Oil & Gas able the company to maintain steady the country’s major operators and ment from SPDC in 1999 after hold- Company Plc has a solid commit- operations within its current field, their production rights were then ing management positions in ment to corporate social responsi- and complete the takeover of all ac- re-allocated. engineering and human resources. bility (CSR). The company aims to tivities from its current technical Consequently, in 2002 the govern- His career has exposed him to reduce poverty in communities partner. ment offered 24 marginal field pack- various aspects of petroleum engi- where it operates and generate youth Plans for productive growth in- ages to Nigerian upstream oil neering, including production oper- employment. “We consult directly clude the generation of more rev- companies. ations, maintenance procedures for with the communities where we enue by developing existing fields. Thanks to its superb operations reserve recovery, facilities design work, to find out what their most ur- Meanwhile, opportunistic growth record and professional open ap- and construction, planning and proj- gent needs are,” says Managing Di- will be sought by utilising the man- proach to the industry, Midwestern ect management. rector Adams C. Okoene. agement’s existing knowledge and Oil & Gas Company Plc was one of His cross-posting to oversee cor- The efforts made to help local experience to help identify, acquire more than 30 indigenous upstream en- porate human resources develop- communities include: awarding and exploit undervalued oil and gas trepreneurs that were awarded these ment and management also exposed contracts and sub-contracts to com- assets throughout Nigeria. marginal fields in February 2003. him to another facet of upstream munity-based contractors; employ- The company is also optimising ac- Midwestern was awarded 70 per operations. He has attended devel- ment on an ad-hoc basis to more cess to markets and focusing on the cent interest in the Umusadege field Midwestern was awarded part interest in the Umusadege field opment programmes and short than 200 people by contractors and most effective route to end-customers in OML 56, located in the northern courses in various parts of the world sub-contractors in the operations at the best price. To make this hap- area of the Niger Delta Basin in Delta The first oil was produced by the A specialist in the field and presented technical papers in a team (from inception to date); and pen, Midwestern is concentrating on State, and designated the field’s op- stakeholders of the Umusadege field Managing Director of Midwest- number of international conferences. the awarding of scholarships and ed- acquiring licenses in targeted areas erator. The remaining 30 per cent in April 2008 at flow rates of 3,000 ern Oil & Gas Company, Adams C. Mr Okoene joined Midwestern ucational assistance to locals from where the company is sure it can went to Suntrust Oil Ltd. In addition, barrels per day (bpd), and this flow Okoene, is a graduate of the Uni- Oil & Gas Company in 2005. The the communities where the compa- readily access international oil and Mart Energy Services Ltd provides rate is currently being maintained versity of Technology, in Loughbor- MD is also a member of Rotary In- ny operates (ongoing since 2006). gas supply systems, as well as serve both technical and financial servic- through additional development ough, UK. He is a UK-registered ternational and has held appoint- In addition, Midwestern supports local demand. es for the field’s development. drilling. chartered engineer and a fellow of ments with government.

An independent supplement distributed with the Financial Times Deutschland by Globus Vision who take sole responsibility for its content 8 NIGERIA MITTWOCH 05. DEZEMBER 2012