AUGUST 2020 VOL. 3 NO. 08 C ONTENTS 4 EDITORIAL iNdUSTRY 26 5 oil demand Expected to increase in 2022 Concerns Heighten 6 Covid-19: How oil and Gas Firms Lost N84bn Revenue 8 Host Communities, operators Spar over over Domestic Gas Location of Lagos Tank Farms 10 Kyari Lists Parametres to Pricing Sustainable Growth in Nigeria Petroleum industry ...as FG raises committee 12 oPEC+ Moves to Maintain Production Cuts as oil Recovery Slows to resolve issue 14 AKK Gas Pipeline: Game-changer for North’s industrialisation? 17 NCdMB Tower Shines, Glimmer of Hope for Niger delta infrastructure ...As ioCs urged to return 31 oil, Gas industry Must Continue to Adapt in order to Thrive - Sarki 36 Gas Expansion Programme will Create 12m Jobs – Sylva 38 AUGUST SHORT TAKES ENERGY 31 Celebrating Milestones in Nigeria’s Power Sector? LiFE 35 What Women Want 50 ENTERTAiNMENT Uproar over Proposed 6% 40 ‘Entanglements’ in Big Brother Stamp Duty on Rents Naija HEALTH 44 Appreciating the Covid-19 Pandemic MoToRiNG 46 History, as Stallion Holds Nigeria’s 1st Keke Rally with Bajaj Tricyles AviATioN 48 How Nigeria Loses N30bn Monthly due to Ban on international Flights 21 *Loses out on $311m African airline Star of the industry bailout fund Engr. Emeka Okwuosa SPoRTS Chief Executive Offi cer, Oilserv 53 Tokyo 2020 olympics: Flame to be Limited displayed in Public next Month aluechain recent- while other gas-related ly held its maiden companies are buying Vwebinar on zoom without subsidy. Though where technocrats from we couldn’t discuss this various fi elds of endeav- crucial matter during the our were invited to dis- webinar, we’ve decided to cuss issues surrounding make it our cover story for the economic and invest- the August edition where ment opportunities of the we tried to fi nd the rea- Ajaokuta-Kaduna-Kano sons for the imbalance in have reports on the pro- Gas pipeline which con- the gas pricing. jections made by some struction was flagged off Also in this edition, we notable international en- by President Muhammadu ergy institutions on what Buhari early July. oil demand will look like in The well-attended webi- few months to come. nar gave the panelists and As usual, we have re- the audience the oppor- Publisher/Editor-in-Chief ports from Aviation, Mo- tunity to discuss issues Musa Bashir Usman toring, Entertainment, Acting Editor Property, and Sports for of concerns related to the Benjamin ike project and beyond. One your reading pleasure. Deputy Editor of the fallouts of the on- Fred ojiegbe This and many more line event was a concern Contributors reports are packaged for raised by a participant on Gideon osaka our esteemed readers in ironhand S. Chukwuemeka this edition as we always the current disparity in Favour C. Nrabulu gas pricing in the country, Aisha Sambo believe that you deserve where US dollar is used as Graphic Consultant the best updates from this the denomination for gas Theresa ogbonna unique Industry. exchange in the country. Business Dev. Executives Do have a fulfi lled time Adeniyi onifade (South) Worst still is the ununiform Abdulkarim Sani (North) reading! price of the commodity to Circulation Manager buyers. danlami Nasir isah Where companies that Online Editor M.B. Usman Saidu Abubakar NB. Feel free to send in your views are into power generation and have your say @ Photo Editor [email protected] (Gencos) are buying the Bashir Bello dollars gas at a subsidised rate, Legal Adviser Lamir Kasim idris (Esq.)
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4 Industry 08:20 Oil Demand Expected to Increase in 2022
–By Fred Ojiegbe
lobal oil demand won’t re- Agency has become noticeably seeing demand down by 2 million turn to 2019 levels until at more bearish on demand, cutting barrels a day from the same peri- Gleast 2022 and the gap may its forecast for every quarter from od in 2019, compared with a drop be getting wider than it seemed a now to the end of 2021. It now of 3.6 million barrels a day fore- month ago, world major energy sees the world using 500,000 cast by the IEA. The IEA strikes a forecasters said. barrels a day less oil in the second contrasting note. Not only does All three of the world’s main oil half of 2020 than it did a month it see the impact of the pandem- forecasting agencies, the Inter- ago, while the downward revision ic on oil demand being less se- national Energy Agency, the U.S. for the two Northern Hemisphere vere than either of the other two Energy Information Administra- summer quarters next year is forecasters, it also sees it being tion and the Organization of Pe- about 400,000 barrels a day. For largely over before the end of next troleum Exporting Countries pub- 2021 as a whole, the IEA cut its year, with global oil demand in the lished new quarterly forecasts. demand forecast by 240,000 fourth quarter of 2021 down by They agreed that transport barrels a day, the first downward just 350,000 barrels a day from fuels are proving particularly vul- revision since April, when the full the same period two years earlier. nerable, with jet fuel and gasoline impact of the coronavirus on oil The U.S.-based agency was alone hardest hit during the depth of the demand first became apparent. in increasing its demand forecast pandemic and remaining so as “By December 2021, global oil for every quarter from now to the restrictions have been gradually consumption will still be 2 percent end of next year, compared with eased. With the Northern Hemi- lower than at the end of 2019,” the what it foresaw in July. Despite sphere summer holiday season Paris-based group said. The agen- the worsening demand outlook drawing toward its close at the cy placed the blame for the down- from two of the three agencies, beginning of September, time is grade firmly on transport fuels, the OPEC+ group of oil produc- said to be fast running out for the noting that “the aviation and road ing countries should still be able normal seasonal boost to both transport sectors, both essential to drain the excess oil invento- driving and flying. Commercial components of oil consumption, ries built up over the first half of flights are languishing 40 percent are continuing to struggle.” OPEC 2020 by the end of next year as below their peak January level, also made downward revisions to long as they all stick to the output according to data from Flightra- demand for all future periods, ex- promises they made to each oth- dar24. Long-haul flights have cept the first quarter of next year. er. Under the terms of that agree- been hit particularly hard; U.S. The producer group remains more ment, 20 countries agreed to cut ticket purchases for international pessimistic than the IEA about their combined crude production flights were down by 86 percent the recovery in demand over the by 9.7 million barrels a day from year on year in June, the most re- rest of this year, it sees consump- agreed baselines from May to cent month for which figures are tion down year on year by over 1 July, reducing the size of the cut available from the Airlines Report- million barrels a day more than to 7.7 million barrels a day for the ing Corporation. Comparing the the IEA does in the second half of rest of 2020 and then to 5.8 mil- latest outlooks with last month’s 2020. But it takes a more optimis- lion barrels during 2021 and the views, the International Energy tic view of the first half of 2021, first quarter of 2022.
All three of the world’s main oil forecasting agen- cies, the International Energy Agency, the U.S. En- ergy Information Administration and the Organiza- tion of Petroleum Exporting Countries published new quarterly forecasts and none project oil demand back at 2019 levels by the end of next year.
5 Industry 08:20 Covid-19: How Oil and Gas Firms Lost N84bn Revenue
–By Gideon Osaka
from the oil marketing firms To- tal and Mobil. Over N56 billion of the revenue loss was between Mobil and Total. Seplat and Ar- dova lost just over N5 billion re- spectively. Further careful review of their results suggests the companies suffered from a drop in demand for refined products such as fuel, diesel, and lubricants. As it were, Nigerians were mostly on lockdown throughout April and May before reopening partially in June and July. How- ever, the damage had been done as adherence to safety proce- dures meant fewer people were evenues of some of the billion in the second quarter of commuting impacting heavily key oil and gas companies 2020 compared to N220.3 bil- on sales. Rin Nigeria as quoted on the lion in the corresponding quar- Seplat was also hit by dipping Nigerian Stock Exchange fell by ter of 2019. Revenue in Q1 was crude oil prices and weak de- about 38% in the second quarter N219 billion. The Nigerian econ- mand for its crude. Recall that of 2020. omy, particularly the oil and gas back in April, oil prices at some This translates to estimated sector has been hit hard by the point fell to negative territory as loss of N84.7 billion from their oil price crash and the COVID-19 demand waned globally. topline revenues. pandemic and could be a major Despite the drops, the com- According to data compiled reason for the loss in revenues. panies continued to incur from the recently released re- overheads and operating ex- sults of the listed companies in The companies also recorded penses which they could not the oil and gas sector, these oil a combined loss before tax of entirely avoid despite the lock- and gas coys include Mobile Oil N16.6 billion compared to N38 downs. Gross Margins for the (II), Ardova, Total, & Seplat, the billion in pretax profits report- quarter fell by 61% year on year only major oil and gas firms that ed in the same period in 2019. putting the companies on the have released their Q2 finan- The second-quarter losses path to losses. cials. Oando and Conoil, are yet compound an already bad situ- to release their results. ation for these companies after Implication on Nigeria’s Econ- Total, Mobil, and Ardova are reporting a loss before tax of omy oil marketing companies while N28.7 billion in the first quarter A review of some of the re- Seplat is into upstream oil and of 2020. These companies have sults indicates nearly all sectors gas production. They are also now seen a combined N45.4 bil- recorded revenue losses. This some of the biggest oil compa- lion wiped out of their profits. is also likely the same situation nies listed on the exchange and across the country as Nigeria in Nigeria. Causes of Revenue Dip awaits the second-quarter GDP The companies reported A closer look at the data re- numbers sometime this month. combined revenue of N135.6 veals most of the losses came Though oil and gas firms
6 Industry 08:20
As such, it is certain that revenue shortfalls is not only taking a toll on oil and gas firms alone, but the government is also feeling the heat, a situation which has necessitated many experts to project negative GDP growth for second and third quarter of 2020 which will eventually plunge the country into a second recession in just four years. faced a twin dose of a fall in demic which has slowed global ed this in the 2021 budget call crude oil prices and the Covid-19 economy and halted activities circular by the Budget Office situation, all sectors except for of virtually all sectors of Nigeri- which is projected at N12.65 tril- oil and gas and Agriculture sec- an economy. lion. tors recorded high revenue de- The key underlying assump- According to the circular, clines. The companies under re- tions of the 2020 Budget in- “MDAs are hereby advised that view last reported a similar drop cluded a benchmark oil price of new projects will not be admit- in revenues and loss before tax US$57pb, later revised to $28pb; ted into the capital budget for in 2016 when Nigeria entered a oil production of 2.18mbpd, re- 2021, unless adequate provision recession. vised to 1.8mbpd; has been made for completion The government is projecting Subsequently, due to the im- of all ongoing projects.” a GDP contraction in excess of pact of falling crude oil prices As such, it is certain that reve- 3% and already reported a rev- which serves as Nigeria’s major nue shortfalls is not only taking enue shortfall of over 50% this source of revenue, Ministries, its toll on oil and gas firms alone, year. Department or Agencies (MDA) but the government is also feel- Fortunately, the companies of government have been or- ing the heat, a situation which still held a sizeable cash bal- dered by the federal government has necessitated many experts ance of N136.7 billion to the end not to include any proposal for to project negative GDP growth of the quarter putting them in a new projects in the 2021 budget for second and third quarter position to weather the storm. as funds will be released for only of 2020 which will eventually Recall that, oil prices fell ongoing projects. plunge the country into a sec- drastically due to Covid-19 pan- The federal government stat- ond recession in just four years.
7 Industry 08:20 Host Communities, Operators Spar over Location of Lagos Tank Farms
–By Gideon Osaka
products that lead to fire outbreak and threat to life. “All the roads in the kirikiri community are in a very terrible shape and not motorable due to their heavy haulage activi- ties. Despite repeated appeal they are simply adamant and incorrigi- ble.with no regard to human lives. “The tank farm owners act as if they are above the law. They treat the residents with disregard and abuse their rights. They frustrate them and ask them to sell their houses. It is obvious that the tanks are owned by politicians and their affiliates, that is why they refused here seems to be no end in once it fails to get positive response to relocate and prefer to continue sight to the menace of en- from the relevant agencies. to dehumanise the people without Tvironmental degradation in One of the Stakeholders Paul recourse to the wellbeing of the in- Apapa, Kirikiri, Satellite town and Akhagbemhe, a Senior Journalist, nocent masses. “They altered the Ijegun areas of Lagos, as host in his narration stated that the con- approved town planning laws and communities and operators con- struction of tank farms in Kirikiri layout designed by Lagos State tinue to dispute over location of Town has made life unbearable for government by building petroleum tank farms. the residents and called for the ur- tanks on the approved drainages At the just concluded fact-find- gent relocation of the tank farms. and blocking the flow of water out ing visit of House of Represen- “The existence of the tank farms of the community to the Lagoon. tatives Ad-hoc Committee on oil has brought serious health chal- This causes severe flooding in the and gas, the host communities lenges to Kirikiri residents through neighbourhood and suffering to did not mince words in asking for dangerous and life-threatening, the residents whenever it rains,” the relocation of tank farms from offensive smell and inhalation of he added. However, giving the per- their domains as they continue the petroleum products thereby spective of one of the host com- to bear the brunt of excruciating causing heart related problems munities, the Alahun of Imoore traffic, dilapidated roads and envi- and difficulty in breathing among and Apapa Kingdom, Oba Taofik ronmental degradation. Speaking other sicknesses. “The activities Akeju-Awojo, expressed the readi- at the event, the Chairman of Sat- of the tanker drivers/NUPENG are ness of his community to collabo- ellite Town Forum, STF, Micheal very appalling and life threatening. rate with both the government and Imitini, expressed dissatisfaction They are making life tough and tank farm owners to ensure har- of the community over the activi- unbearable for the people through mony in his kingdom. According to ties of tankers who come daily to reckless driving that constantly him, the people clamouring for the take products from the tank farms. leads to road accidents, killing and relocation of the tank farms are ‘’We are saying that they must re- maiming of innocent residents. those that do not want the com- locate their tank farms from this They cause very terrible traffic con- munity to make progress. “Since, area. We don’t care whether they gestion daily that leads to loss of the tank farms started operations spent billions. Human lives should man hours as well as destruction in the communities, crime rate has be prioritised as the area remains of other business activities in the dropped and employment oppor- a residential area,” he stated, while entire Apapa axis. The drivers also tunities have been created. If you insisting that the community may indulge in senseless black market move the tank farm away, there be compelled to take legal action sale of fuel and other petroleum will be untold hardship and poverty
8 Industry 08:20 in the land,” he said. thing will be a failure. “We have proving agencies. It is work in Speaking on behalf of the tank lifted the ban on construction of progress. The community wants farm owners, Hassan Gbemiso- tank farms and we urge them to more corporate social responsibili- la, Managing Director, Fatgbems improve on their Corporate Social ty, CSR. The operators have told us Petroleum Limited, stated that Responsibility (CSR). The Lagos that they have done so much. We bad road network is one of their state building agency is compiling have told the operators to bring challenges. He explained that op- lists of those who have approval.” what they have done so far. We are erators have been contributing For the Assistant Controller Gener- also going to engage the Lagos to the welfare of their host com- al of Fire Service of Nigeria, Abdul- State government. “The tank farm munities. “Tank farm operation ganiyu Jaji, who represented the operators pay tax, so it is going in Kirikiri started in 2005. There Controller General, there is need to be a collaboration between the is an amount of money collected for establishment of a central fire State, Federal, operators and the per truck by the host communities service station in Satellite Town, communities. If we all collaborate, daily. This is done to help them fi- Kirikiri and Ijegun- Egba commu- the business can live side by side nancially. We are engaging the La- nities in order to promote safety with human beings and that is why gos State Fire Service to establish of lives and properties. He said, we are insisting on safety. We are office in the area. Meanwhile, each “Tank farm operators should fo- insisting that operators must carry depot in the area has fire-fighting cus on training of personnel and out everything in the recommen- trucks,” he said. Also speaking, the infrastructure. There is need for dation. We believe the communi- Commissioner for Town Planning synergy between tank farm opera- ty can live side by side with tank and Urban Development, Lagos tors and Department of Petroleum farm operators. We have come State, Idris Salako, expressed the Resources (DPR). In Apapa axis, here to establish that the agencies concern of the state government there are some tank farms that are can work well with the operators over the unregulated citing of tank very close to the residential areas and the communities. “If anything farms in Lagos. He explained that which the House of Representa- happens to the Ijegun and Kiriki- eight years ago, the government tives should consider critically. ri tank farms today, it is going to stopped giving approval for citing The health hazards are enormous” cut off 35 per cent supply of pe- of tank farms in the state, except Ibrahim stated. Also speaking, the troleum products in this country. they are to be located at Ibeju-Lekki Deputy Director, Oil and Gas, Minis- This situation concerns all of us. free trade zone. According to him, try of Environment, Nafiu Akinpelu, The people who live in Ijegun Egba “Eight years forward, the ministry stated that the tank farms can do and Satelite Town have expressed has been inundated by host com- operating audit as well as upgrade their displeasure very many times munities of the activities of tank their oil-water separating system. about the activities of tank farm farm operators, which prompted “All the tank farm owners should owners and petroleum tankers. the state government to ask the come together and have a global The tank farms in these areas are ministry to engage the host com- memorandum of understanding, extremely important to the federal munities on how to manage the MoU with their host communities government because about 25 per situation. “The tank farm owners as regards CSR, so as to agree on cent of the products that come should be responsive to the needs what could done for the communi- into the country come from the and plight of the host commu- ties annually.” Ijegun Egba tank farm alone. They nities. Most of the tank farms at The House Ad-hoc Chairman, have invested about N450 billion. Kirikiri don’t have permits. The in- Sergius Ogun stated that though So we cannot wish them away. We frastructure of Satellite town has there are obvious infractions, col- need to find a way to peacefully been run down by the activities of laboration is key for businesses coexist with the residents of the tank farms. Even if, the tank farm to thrive without rancour. He said, area. They have a right to be there, operators relocate to Ibeju-Lekki, “They were obvious infractions so we have to find a way for them without proper planning, the whole that we needed to put to the ap- to coexist.
“The existence of the tank farms has brought serious health challenges to Kirikiri residents through danger- ous and life threatening, offensive smell and inhalation of the petroleum products thereby causing heart related problems and difficulty in breathing among other sick- nesses.
9 Industry 08:20 Kyari Lists Parametres to Sustainable Growth in Nigerian Petroleum Industry
–By Fred Ojiegbe or the Nigerian Petroleum Industry to move forward Fin the face of the COVID-19 pandemic, the Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Mallam Mele Kyari has urged the Industry stakeholders to evolve innovative ways to reposition the Sector for sustainability. The GMD said this while speaking at the opening ceremony of the So- ciety of Petroleum Engineers (SPE) Nigeria Energy Industry Transfor- mation Summit (NEITS) 2020. He said Industry players needed to train their eyes on a strategy that focuses on people, partnerships, profit and posterity, a release by the NNPC’s Group General Manager, Group Pub- Mallam Mele Kyari lic Affairs Division, Dr. Kennie Obate- ru, has stated. (margins) for reinvestment and to promote national development. Mallam Kyari explained that the expansion, stressing that without He added that in collaboration new normal era brought about by creating profit today, “we wouldn’t with stakeholders, the Ministry, un- the Coronavirus pandemic has, be in a position to take advantage der his watch, would promote do- more than ever, reinforced the of the opportunities that keep us mestic utilization of gas resources need to upskill the human capac- viable and ready for tomorrow”. so as to create job opportunities ity within the Industry for the next Another key to reposition the In- for Nigerians. Delivering the key- phase, and develop the capacity to dustry for sustainability, according note address, the President, SPE attract, train and retain people in to the GMD, is for Industry players International, Shauna Noonan, the Sector. to always act and take decisions clarified that the concept of ener- He spoke on the theme: “Chang- with posterity in mind. “We must gy transition was not to wipe out ing Global Energy Landscape: Re- bequeath to the next generation fossil fuel but rather an aspiration positioning for Industry Sustain- a world worthy to live in. Our op- for cleaner energy. She said the ability” at the occasion. “There erations must therefore be car- Society of Petroleum Engineers must be collaboration across dif- ried out in a safe manner without (SPE), Nigeria Council, has a great ferent dimensions; government, adversely impacting the environ- role to play in reducing energy pov- Industry, academia and, particu- ment. As you know, most discus- erty, noting that energy transition larly, with the communities where sions around energy substitution was important for greater value we carry out our operations. The or green economy stem from look- in the global oil and gas industry. social license to operate is critical ing at the Industry as ‘dirty’ and Earlier in his welcome remark, the to the Industry’s long term sur- ‘unconscionable’. It must be reit- Chairman, SPE Nigeria Council, vival. Also, partnership among In- erated that our Industry remains Mr. Joseph Nwakwue, said the dustry peers to chart new ways of the bedrock of modern human society was ready to offer profes- resolving Industry challenges and existence. We must therefore work sional services and work with all preparing for tomorrow cannot be to create a positive view if we are stakeholders to move the industry over emphasized. I am delighted to remain relevant in the long run,” forward. He informed that part of the SPE provides such veritable he declared. In his remarks, the the society was focused on capac- platform,” the GMD submitted. Minister of State for Petroleum Re- ity building to develop the required He disclosed that for sustainabil- sources, Chief Timipre Sylva, said skill set for the oil and industry ity, Industry players must learn to the proposed Petroleum Industry operations, stressing that it was manage cost, improve efficien- Bill would ensure that the abun- what informed the choice of the cy and deliver required cashflow dant natural gas resources is used theme of the conference.
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OPEC+ Moves to Maintain Production Cuts as Oil Recovery Slows
–By Fred Ojiegbe
he Organisation of Petro- remove about 10 percent of past shortcomings. Nigeria, Iraq leum Exporting Countries supply from a global oil market and several other nations have Tplus, OPEC+ appears to be crippled by coronavirus lock- consistently fallen short of their sticking closely to its planned downs, Saudi Arabia has kept pledges. At the opening session oil-production cuts to guard up intense pressure on fellow of the OPEC+ Joint Ministerial against the market recovery be- members of the Organization of Monitoring Committee, Russia ing undermined by a resurgence Petroleum Exporting Countries reinforced the message from of the coronavirus. to fulfill their pledged output the Saudis. The group cannot Saudi Energy Minister Prince reductions. “Work still needs to rest on its laurels and must fully Abdulaziz bin Salman and his be done and I urge you all not implement its cuts, said Novak. Russian counterpart Alexander to relax the efforts of the past The coalition of producers is re- Novak hailed the rebound in oil three months,” Prince Abdulaziz storing some of the vast quan- prices and demand, but repeat- said in his opening speech. “We tities of crude halted during the edly urged their allies not to ease should strive to achieve full depths of the Covid-19 crisis. off their output curbs. The draft adherence to our agreement.” From April to July it removed communique from the meeting Earlier, Saudi King Salman bin about 9.7 million barrels a day called for vigilance as the pace Abdulaziz had called Nigerian from the market, but started to of recovery slows due to the President Muhammadu Buhari ease that reduction to about 7.7 “growing risks of a prolonged to emphasize the importance million this month. second wave of Covid-19.” of complying with production So far, the supply boost hasn’t Since striking a deal in April to quotas and compensating for derailed oil’s fragile recovery,
12 Industry 08:20
So far, the supply boost hasn’t derailed oil’s fragile re- covery, which has seen prices climb to a five-month high. But continuation of that trend will depend on maintain- ing discipline and ensuring that Nigeria, Iraq and other nations fulfill their promises to make amends. Fuel de- mand and crude-cargo prices have faltered in critical Asian markets, underscoring the fragility of the rebound. which has seen prices climb to to compliance,” Harry Tchilin- OPEC data. It promised to cut a five-month high. But continua- guirian, head of commodity mar- an extra 400,000 barrels a day tion of that trend will depend on kets strategy at BNP Paribas SA this month and next, on top of maintaining discipline and en- in London, said before the meet- the 850,000 barrels it’s already suring that Nigeria, Iraq and oth- ing. “Given that the oil demand obligated to curb, to make up for er nations fulfill their promises recovery is still very uncertain, earlier non-compliance. While to make amends. Fuel demand they understand the importance that is better than in the past, and crude-cargo prices have fal- of delivering the pledged out- expecting the crisis-torn nation tered in critical Asian markets, put reductions for the global oil to make extra compensatory underscoring the fragility of the balance.” Baghdad has stepped cutbacks is probably a “bridge rebound. “The Saudis have cer- up its performance, implement- too far,” according to RBC Cap- tainly been holding a consistent ing 85 percent of its targeted ital Markets LLC. and firm position when it comes reductions in July, according to
Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Alexander Novak
13 Industry 08:20 AKK Gas Pipeline: Game-changer for North’s Industrialisation? –By Gideon Osaka
cals, fertilizer, methanol, and other gas-based industries thereby gen- erating employment opportunities and facilitating balanced econom- ic growth. The right of way for the pro- posed AKK gas pipeline would run parallel to the existing Nige- rian Pipelines and Storage Com- pany’s 16 inch-crude oil and 12 inch- product pipelines wherever possible. The AKK, according to the NNPC, is ultimately designed to complement other major domes- tic gas transmission systems side from being a critical President Buhari on June 30, namely: the Western System, midstream infrastructure, performed the virtual Flag-off of that is, the existing 36-inch Escra- Athe Ajaokuta-Kaduna-Kano the construction of the 40-inch x vos-Lagos Pipeline I and II with (AKK) gas pipeline commissioned 614km AKK gas pipeline project. 2.2billion cubic feet per day capac- recently by President Muhamma- Expected to be completed ity and the On-going East-West du is set to be a key enabler to the within a 24-month timeline, the connection via the OB3 pipeline development of industries in the AKK pipeline is a section of the featuring 2.4billion cubic feet per north. Trans-Nigeria Gas Pipeline (TNGP) day capacity. The gas pipeline which is an with the capacity to transport Speaking when he featured as integral part of the Nigerian Gas about 2.2billion cubic feet of gas a panelist in the maiden Valuec- Master Plan (NGMC), to harness per day. hain webinar, the Rector of the the country’s huge gas resources, According to the Nigerian Na- Kaduna Polytechnic, Prof. Idris is also expected to spur develop- tional Petroleum Corporation Bugaje, said the speedy delivery of mental activities in the northern (NNPC), the pipeline which would the project would compensate for region and kickstart some sort originate from Ajaokuta, in Kogi its late conceptualization, adding of revival in the construction in- State and traverse Abuja (FCT), that the AKK pipeline was coming dustry that has been slowed by Niger, Kaduna, and terminate at 25 years late after numerous tex- COVID-19. Kano, would boost domestic utili- tiles, manufacturing, and agricul- The delivery of the project zation of natural gas for Nigeria’s tural enterprises in the northern which will make gas molecules social-economic development, parts of the country collapsed un- available either as feedstock or as when completed. der costly, unstable and inefficient supply for power plant when com- It would also unlock 2.2billion industrial fuel. pleted could become a platform to cubic feet of gas to the domestic He said, “This project should reflate the region’s economy. market, support the addition of have happened 25 years ago. If we These were some of the sub- 3,600 megawatts (MW) of power had had the AKK 25 years ago, de- missions of stakeholders drawn to the national grid and revital- livering gas to Kaduna and Kano from the petroleum industry, ac- ize textile industries which alone and all those industries that col- ademia, organized private sector boasts of over 3million jobs in lapsed would not have collapsed and regulatory agencies who par- parts of the country. and probably Boko Haram and ticipated in a recent webinar host- The AKK project would support banditry would not have arisen. ed by Valuechain Magazine. the development of petrochemi-
14 Industry 08:20
Heavy fuel cost killed most of the textile industries in the north, he argued, adding that gas has be- come critical to their revival. He listed investment opportuni- ties surrounding the AKK pipeline to include businesses in liquefied petroleum gas (LPG), compressed natural gas (CNG), petrochemical and fertilizer plants, and captive and embedded power production. He however warned against regulations that would limit power producers to the national power transmission grid currently man- aged by the Transmission Compa- ny of Nigeria (TCN), which, accord- ing to him, has proved inefficient and commercially unviable. Prof. Idris Bugaje Responding to a succession of questions around the time- ly completion of the project, the The problem of insecurity is the Stressing the role of gas in eco- Managing Director of the Nigerian consequence of high level of pov- nomic growth and development, Gas Company (NGC), a unit of the erty, unemployment therefore the Prof. Bugaje compared the pover- NNPC, Engr. Seyi Omotowa, gave insurgents are using that to recruit ty level and low industrial activity assurances that the project would followers.” to the economic boom and indus- be realized in good time, adding He linked the collapse and relo- trial vibrancy in Lagos State which, that a presidential inter-agen- cation of industries from northern he said, has become the preferred cy project management team is Nigeria to Lagos with the rising regional investment hub due to working with other stakeholders spate of banditry and insurgency abundance of gas flowing through to overcome all failure factors. in the region adding that the social robust distribution infrastructure He explained that the funding crisis in the northern part of the to industrial clusters. model, quality and pedigree of country was a result of worsening “Most of the industries within contractors, structures for trans- business environment and conse- the Kaduna and Kano were made parency and accountability, as quent surge in the number of un- moribund because of electricity well as improved security arrange- employed youths. and process heat and some of ment would enable the AKK proj- Speaking further, Prof. Bugaje them migrated to Lagos. ect management team overcome lamented the withering of indus- Lagos has become the great- all foreseeable challenges and de- tries, Boko Haram insurgency and est beneficiary of the problem of liver the project in time. growing banditry which could be power supply in the North. Today Responding to questions on efficiently addressed by restoring Lagos consumes 60 per cent of how funding and security could industrial vibrancy in the region the electricity generated in Nige- encumber early delivery of the which, according to him, hosted ria, Lagos can run its own affairs project, the Technical Adviser to the largest textile industries in the because of the industries,” Prof. the Minister of State for Petro- past. Bugaje asserted. leum Resources on Regulation,
This project should have happened 25 years ago. If we had had the AKK 25 years ago, delivering gas to Kaduna and Kano and all those industries that collapsed would not have collapsed and probably Boko Haram and bandit- ry would not have arisen. The problem of insecurity is the consequence of high level of poverty, unemployment there- fore the insurgents are using that to recruit followers.”
15 Industry 08:20
AKK is not just an infrastructure it is a platform to reflate our economy, achieve economic growth, get our aspirations of domestic gas. it is a platform that would ensure that we increase the amount of power genera- tion and also ensure that the GDP of the country is increased.”
Engr. Umar Gwandu, said these challenges would be addressed by the commercial nature of the pipe- line operations when completed. He made it clear that the target was to ensure that domestic uti- lization of gas would ride on the overall infrastructure blueprint that involve the Escravos-Lagos Pipeline System (ELPS), West Afri- can Gas Pipeline (WAGP), the AKK pipeline and eventual Trans-Saha- ran Gas Pipeline. Gwandu pointed out the role the AKK pipeline would play in re- habilitating moribund industries in Engr. Seyi Omatowa northern Nigeria. “The AKK is part of the Gas Masterplan to harness the coun- gas aspiration of the country, the the North. try’s huge gas resources, create a AKK presents the opportunity for Answering a question on the gas hub and spur developmental direct employment for so many source of the gas that will be activities in the northern region,” at such a time within the pipeline transported via the pipeline, Engr. Gwandu said. corridor. Falade said: “There already is a Also responding to questions Prior to now, he said: “Oilserve connected grid all the way to Ajao- from participants on the invest- has executed not less than 25 kuta. As we speak today, taking off ment opportunities and challeng- different EPC projects that are from the Oben supply node, there es with the project, the Managing mainly pipeline and facility-based is an existing pipeline transport Director of Oilserv Limited, the lead projects. Oilserve is currently system that will take gas all the contractor in the project, Engr. commissioning the lot B of the way to Ajaokuta. This system will Adegbite Falade, stated that the OB3 pipeline which is one of the in part feed in gas gathered along project could create 5000 direct critical pipeline systems within the the corridor of the South-South jobs during its entire execution gas architecture blueprint. and South East.” time frame, adding that it would AKK is not just an infrastructure Speaking further on potential also revive the Nigerian construc- it is a platform to reflate our econ- opportunities for small scale en- tion industry by involving credible omy, achieve economic growth, terprises and local communities, subcontractors across the full get our aspirations of domestic he stated that in terms of execu- project scope. gas. it is a platform that would en- tion of the project, Oilserve which According to him, AKK pipeline sure that we increase the amount is the EPC contractor has lined up project would provide the platform of power generation and also en- opportunities for people in spe- for building the manufacturing sure that the GDP of the country is cialised service offerings. sector of the economy, grow the increased.” “There is scope for inspection, national gross domestic product, He reiterated the need for all catering, and many other sectors. boost power generation by 3600 stakeholders to seize the full op- Those who would benefit would megawatts and ultimately com- portunity presented in the AKK have been pre-certified and pre- mercialize Nigeria’s vast natural pipeline project, arguing that ben- registered with the appropriate gas resources to generate reve- efits of the project would erase the agencies including DPR, NCDMB, nue for government. incentives for banditry and insur- etc.” He said, beyond achieving the gency through economic revival of
16 Industry 08:20 NCDMB Tower Shines, Glimmer of Hope for Niger Delta Infrastructure ...As IOCs urged to return
–By Gideon Osaka he Niger Delta region over These agitations have at sev- contribution to the development the year has become a eral times translated to motions of the oil companies’ host com- Tgeographical location fa- in the National Assembly seeking munities were not in any way mous for persistent agitations the relocation of headquarters of commensurate with the revenue by the people over the perceived oil and gas companies and their they were raking from the crude neglect of the region amidst ab- regulators to states where they oil buried in the bowels of earth ject poverty, deprivation and un- have dominant operations. in the region. derdevelopment oil exploration Leaders in the oil-rich region Other proponents were of the activities have brought to the have hinged their clamour on view that the oil companies’ relo- region. the fact that it was only fair and cation would foster peace, unity, One of the most ferocious agi- logical that the oil majors relo- and rapid development and open tations by communities in the re- cate their headquarters to areas the area to modern development gion over time is their insistence where they have significant busi- and ultimately be a victory for that oil companies particularly ness presence because doing so the people of the region since the multinational giants relocate was the only way meaningful de- their operations in that area their headquarters to the region. velopment will take place in the would have a direct impact on Currently, most of the interna- region. the communities where they op- tional oil companies (IOCs) in Ni- Again, the case for the relo- erate. geria reportedly have their head cation of oil companies to the Valuechain reports that many offices hundreds of kilometers region have been made stron- other literatures on the reloca- away from the oil-rich region. ger by the presumption that the tion issue have spoken about
17 Industry 08:20
provided for the people of the area were no longer available. But a glimmer of hope seems to have come for people of the region as well as companies planning to return to the region following the recent commis- sioning of the 17 storey Nigerian Contents Development Board (NCDMB) building, called the Ni- gerian Content Tower. The building which com- prises of 10MW Power Plant, 1000-seater Conference Center, four-storey car parks, and sever- al other facilities will be used as the corporate headquarters of President Muhammadu Buhari the NCDMB in Yenagoa, Bayelsa State. how it was a very bad thing that now, there were so much disin- Stakeholders who have ap- most of the IOCs for instance, centives for the companies to plauded the stat-of-the-earth have their headquarters in La- either remain in the region or for edifice said the completion and gos, South West of the country those who have left, to return. commissioning of the tower and by this, pay taxes and bene- At several occasions when the would create the enabling en- fits to other states to the neglect multinational oil firms tried to es- vironment for oil companies to of the region where oil explora- tablished their presence firmly in interface better with the NCDMB tion activities have polluted the the area, militant activities most and also for companies willing environment. of the time led to the kidnapping to relocate their offices to the Therefore, It did not come as a of both foreign and indigenous region. surprise when stakeholders from staff. The destruction of oil fa- They added that the 10-Mega- the region under the umbrella cilities by militants presumably watt gas-fired power plant and of the Pan Niger Delta Forum forced oil companies to relocate 1,000 seater conference hall as (PANDEF) led by Chief Edwin their head offices to states de- well other infrastructures with- Clark, presented their 16-point void of turmoil. in the Tower could serve as an demands to President Buhari in While militancy and vandal- incentive for oil companies to Abuja in 2016, in which the relo- ism remained a deterrent the open new operational offices cation of the administrative and problem of infrastructure in the since siting their structure within operational headquarters of the region was another major scare the cluster of the Tower will al- IOCS to the areas of their de- for the oil companies. low for sharing of critical infra- cades operations was one of the As a consequence of this, job structure like power, technology key demands made by PANDEF. opportunities that the presence and a host of other resources. Findings showed that before of the companies would have The timely completion and
Valuechain reports that the president’s assurance at the unveiling of the tower further aligns with his ad- ministration’s New Vision for the Niger Delta (NEV- IND) and his Inauguration Speech on May 29, 2015 when he said the government intends to invest heavily in the projects, and programmes currently in place in the Niger Delta.
18 Industry 08:20 commissioning of the project according to the Minister of State for Petroleum Resources Chief Timipre Sylva, shows that skyscrapers and other laudable infrastructures can be built in the Niger Delta and indigenous contractors can perform won- ders when given the right oppor- tunities, adding that the people of Bayelsa and indeed the entire Niger Delta were receptive to de- velopment. Presenting the tower to Pres- ident Buhari for commission- ing, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote said the main contrac- tor, which is Nigerian with sev- eral other Nigerian sub-contrac- tors worked day and night to Gov. Diri and Engr. Wabote during the tour of the facility deliver the world-class building with impressive safety statistics. Valuechain reports that the of completion in the Niger Delta According to him “the materi- president’s assurance at the un- region. The refineries are locat- als used are 76 percent Nigerian veiling of the tower further aligns ed in six states in the Niger Delta Content with the tiles, electrical with his administration’s New namely: Rivers, Delta, Akwa Ibom, cables, granite, and many oth- Vision for the Niger Delta (NEV- Imo, Bayelsa and Cross River. er building materials produced IND) and his Inaugural Speech The administration has also in Nigeria. The manpower used on May 29, 2015 when he said deployed the Nigerian Gas Flare for services and labour is over the government intended to in- Commercialization Programme 95 per cent Nigerian Content. vest heavily in the projects, and aimed at deploying infrastruc- The skills transferred to the local programmes currently in place ture that will address the exit of workforce in the construction of in the Niger Delta. gas flaring in the region. a high-rise building has been un- Further analysis shows that Other infrastructural projects precedented.” some of the government’s ef- being championed by the admin- President Muhammadu Bu- fort in terms of infrastructure istration and aimed at opening hari, who commissioned the development that could give fil- up the region for more invest- new building via zoom, has also lip to the relocation of the local ments incude the construction pledged his government’s read- and foreign oil companies to of $186 million 240MW expan- iness to spend more on infra- the Niger Delta region include sion of the existing Afam Pow- structure across the region and the resumption of construction er Plant (commenced in 2016, to focus on finishing projects de- work on abandoned projects almost completed), Dualisation livered by local contractors and awarded to different contrac- of Yenegwe Road Junction-Ko- technology that create jobs for tors across the Niger-Delta since lo-Otuoke-Bayelsa Palm (Sukuk thousands of Nigerians. 2006, including the all-important Bond) (ongoing); Rehabilitation While reaffirming his admin- East-West Road and the second of Sections 1 to 4 of the Enu- istration’s drive to attract invest- Niger Bridge both projects now gu-Port Harcourt Expressway ments, create jobs and eradicate at the last phase of completion; (ongoing); completion of the poverty among Nigerians, the the flag-off of construction of 60km Alesi–Ugep Road in Cross president reiterated the admin- the 34km Bonny-Bodo road, the River State; contract award for istration’s commitment to in- Itakpe-Warri standard gauge the 72km section from Odukpani vesting more in infrastructure rail project and construction of Junction to Ugep and rehabilita- development and initiatives that modular refineries. tion of Calabar–Itu–Odukpani would open up the Niger Delta So far, six modular refineries Road that links Akwa-Ibom to region. are currently at different stages Cross River (ongoing).
19 For enquiries, call: 0705 500 1000 Star of the Industry 08:20
Engr. Emeka Okwuosa Chief Executive Offi cer, Oilserv Limited
21 Star of the Industry 08:20
Engr. Emeka Okwuosa Chief Executive Offi cer, Oilserv Limited
–By Danlami Nasir Isah
The philanthropist who turned 59 this month is de- scribed by many as a solid pillar of the Nigerian society, a rare gem, a huge blessing to his people and the country at large.
he Chairman and Group services, maintenance and op- ations fully in 1995, and worked Chief Executive Offi cer, Oils- erations. While at Schlumberger, exclusively for Shell Nigeria for Terv Group, Engr. Emeka Ok- he oversaw some jobs in Europe, over fi ve years, after which it di- wuosa, was born on August 19, North Africa, West Africa, Gulf of versifi ed into working for other in- 1962 in Ekwusigo Local Govern- Guinea/Central Africa and Indo- ternational oil companies (IOCs) ment Area of Anambra State. A nesia, among others. and for Nigerian Liquefi ed Natural seasoned Engineer, Administra- Before establishing his own Gas (NLNG) in maintaining their tor, Entrepreneur and a Visionary company, Emeka worked in var- pipeline transmission systems. leader. He founded and incorpo- ious capacities for Schlumberg- Today, Emeka sits on a group rated Oilserv Limited, in 1992 but er, a French oil service giant, as of companies - Oilserv Limited, began operation in 1995 offering Field Engineer, Technical Manag- Frazimex Limited, Frazimex En- world-class services such as er, among others in Europe (Pau, ergy Services Limited, Frazimex wireline logging and interpreta- France, Scotland), North Africa Engineering Limited, Frazpower tion, seismic acquisition, process- (Libya), West Africa (Mauritania, Limited, Frazoil Limited, Crown ing and interpretation, pipeline Senegal, Cote D’Ivoire, Ghana), Energy Resources Limited, and engineering, engineering,procure- Gulf of Guinea/Central Africa Ekcel Farms Limited. Oilserv Lim- ment, construction, installation (Nigeria, Benin Republic, Camer- ited focuses on Pipeline/Facili- and commissioning (EPCIC), proj- oun, Gabon, Congo, Angola) and ties EPC and maintenance. It has ect management, drilling, drilling Indonesia. Oilserv started oper- wide ranging activities In the Ni-
22 Star of the Industry 08:20
ger Delta and across Nigeria. It is Conference/Petroleum Technolo- ate Degree Award (Hon. DBA) by a major player in actualization of gy Association of Nigeria) Awards the University of Nigeria, Nsukka the Gas Masterplan in Nigeria es- of Excellence in 2009, 2010, 2011, (UNN) – 2017; Award of excel- pecially for domestic gas distribu- 2012 , 2013, 2014, 2015, 2016 lence in Engineering by the Asso- tion. It is ISO 9001:2008 certifi ed and 2017 in Houston, Texas, USA; ciation of Anambra State Devel- and currently operates in Uganda, US Africa International Oil & Gas opment Union – 2017; Award of Kenya, Tanzania, Benin Republic Leadership Award, Best of Afri- excellence in Engineering by the and Togo. ca – 2013; Lifetime Achievement Nigerian Institution of Highway & Emeka is a 1982 graduate of Award by Petroleum Technology Transportation Engineers – 2017; Electronics and Electrical Engi- Association of Nigeria (PETAN) – Award of Excellence by Nigerian neering of the University of Ife, 2015; Award of Excellence by the Gas Association (NGA) 2016 Oil now Obafemi Awolowo Universi- Nanotechnology Research Group & Gas organization of the year ty, Ile-Ife, Osun state, Nigeria. He of the Physics Department, Uni- award by African Entrepreneurs belongs to several professional versity of Nigeria, Nsukka, in 2014 Foundation - 2017 National Pro- bodies including Council for the and 2016; Nigeria Advancement ductivity Order of Merit Award Regulation of Engineering (Emeka, Award for Creativity and Enter- (NPOM) by his Excellency, Presi- A COREN), Society of Professional prise – 2016; International Soc- dent Muhammadu Buhari, Presi- Well Log Analysts (SPWLA), Pe- rates Award (UK) – 2016; Award dent and Commander in Chief of troleum Technology Association of Excellence by Nigerian Gas As- the Armed Forces, Federal Repub- of Nigeria (PETAN), Pipeline Pro- sociation (NGA) – 2016; PETAN lic of Nigeria in 2017. fessionals Association of Nigeria Corporate Social Responsibility The philanthropist who turned (PLAN), Nigeria Society of Engi- Award – 2016; PETAN Capacity 59 this month is described by neers (NSE), Society of Petroleum Development Award – 2016; Hon- many as a solid pillar of the Ni- Engineers (SPE), Nigerian Gas As- orary Doctorate Degree Award gerian society, a rare gem, a huge sociation (NGA), Institute of Direc- (Hon.D.Eng) by the Enugu State blessing to his people and the tors (IoD). University of Science and Tech- country at large. Emeka Okwuo- The Oilserv boss has also re- nology (ESUT) – 2016; Industri- sa, who is a Knight of St. Christo- ceived several awards of excel- alist of the Year Award – 2016; pher (KSC) of the Anglican Com- lence. Such awards include OTC/ Agro Entrepreneur of the Year munion, is married and blessed PETAN (Offshore Technology Award – 2016; Honorary Doctor- with three children.
23 AUGUST 2020 AUGUST 2020 Cover Story 08:20 Concerns Heighten over Domestic Gas Pricing ...as FG raises committee to resolve issue
–By Gideon Osaka
he recent spike in the ex- equalise gas prices for domestic its huge gas resources. First is change rate of the Naira and export customers comes at that the country’s gas sector is Tto the dollar induced by a time the impact of COVID-19 export-oriented. With plans to the corona virus pandemic and has caused a dip in global gas expand the country’s export foot ongoing reforms in Nigeria’s prices, a benefi t that gas-based prints following the execution of power sector are among factors industries like fertilizer, petro- the Final Investment Decision that are triggering concerns over chemical and methanol plants, (FID) for the expansion of the the continuous disparity in the should have also enjoyed in NLNG trains to Train 7, exports export and domestic prices of terms of lower gas price. of the country’s gas is set to wit- natural gas produced in Nigeria, According to Valuechain fi nd- ness an upsurge. While export Valuechain can report. ings, two stark ironies exist with market thrives, there is a domes- The call for gas producers to respect to how Nigeria exploits tic market that suffers huge en-
26 Cover Story 08:20
As we all know, today, the price of gas for local power production is a little over $3 for one million Brit- ish Thermal Units (mmbtu). Meanwhile, in this same country, the cost at which LNG exports gas is less than half the same amount. This cost of gas presently ac- counts for almost 70% of all the input the plants utilise to generate power. Except we begin to consider solutions from that angle, we may not make much headway in providing the cheap electricity Nigerians need to move the country to an industrial giant.” ergy crisis and shortages. The Association of Nigerian to move the country to an indus- Second, is that domestic us- Electricity Distributors, (ANED) trial giant.” ers (power sector, fertiliser and in a recent appeal to the federal This situation, based on fi nd- other gas-based industries) pay government to fi nd a way to help ings by our reporter is even bet- signifi cantly more for gas than bring down the price of gas in ter for the power sector com- international customers (export) the interest of the sustainability pared with the commercial and and this more than any other of the power sector, noted that industrial sectors. problem, is once again fuelling intervention on gas pricing was A source familiar with gas concerns among stakeholders key as the cost of gas remains pricing said that while the Nige- of an inevitable impact on Nige- one of the key determinants of rian Gas Company (NGC) bills ria’s power and industrial sectors the electricity tariff in Nigeria. power generation companies’ at this time effects of COVID19 is Sunday Oduntan, the Exec- $2.5 (per one million mmbtu), in- biting hard on the economy. utive Director of Research and dustrial consumers pay as high Valuechain reports that for in- Advocacy of ANED in a state- as $7.59 which is way above cur- stance, ineffi ciency in the gener- ment noted that while the cost rent global prices of $2.1 as at ation level of the country’s elec- of gas (and generation) will rise August 2020. tricity market along with poor due to forex fluctuations, the tar- The source said: “For instance, revenue collection by the distri- iff is fi xed in Naira and may not January 2020 CBN FX rate - bution networks have disincen- account for this difference es- N305; March 2020 CBN FX rate - tivised gas producers from al- pecially because of the absence N360; August 2020 CBN FX rate locating greater volumes of gas of a commitment to adhering to - N379. And it keeps showing in to the domestic market, which periodic tariff reviews. our monthly Invoice for Natural is dominated by the electricity He said: “As we all know, today, Gas supplied while Natural Gas industry. the price of gas for local power price for GenCos is $2.5 com- Investigations by Valuechain production is a little over $3 for mercial and industrial users is show that the widening gap be- one million British Thermal Units $7.59. tween domestic and export par- (mmbtu). Meanwhile, in this We pay based on $7.59 which ity prices continue to have “inev- same country, the cost at which is way above current global pric- itable impact” on the country’s LNG exports gas is less than half es of $2.1 as of today. It’s a se- power sector in particular. the same amount. rious issue, discouraging gas For instance, the absence of a “This cost of gas presently adoption.” market-reflective tariff has con- accounts for almost 70% of all This situation, the source said tinued to bedevil the power sec- the input the plants utilise to “Is like saying from now hence- tor and this situation is said to be generate power. Except we be- forth consumers in the country presently responsible for most of gin to consider solutions from will buy PMS or DPK in dollars the over N1 trillion liquidity gap that angle, we may not make at any fi lling station. Why is Gas that has been threatening to de- much headway in providing the priced in dollars, sold to Gencos rail the power sector reforms. cheap electricity Nigerians need at discount while other indus-
27 Cover Story 08:20
on the viability of their invest- ments. “The intention of government is a laudable one but in practice, this is difficult to sustain, espe- cially if we want to see any tan- gible results in the short to medi- um terms.” she said. “We cannot be trying to im- pose a social objective on an entity whose primary motive is profit-oriented, especially when we are not in a strong enough position to do so. We hardly manufacture any infrastructure components in-country so the bulk of the requirements on any infrastructure project will be imported, backed by dollar-de- nominated contracts. Loans are sourced in dollars to back proj- ects and must be repaid in dol- lars. There is already significant value erosion based on the chal- lenges related to forex revenues versus naira receipts and the constraints around sourcing dol- lars at the CBN rates. If we step back to look at it properly, inves- tors are not being unreasonable when they ask for better pricing.” Speaking further, she said: Chief Timipre Sylva “We need to allow more investors to come in on better terms and then see how competitive forces tries buy it higher?” (NGA) Audrey Joe-Ezigbo, said over time begin to put pressure Continuing, the source lament- that the main problem has been on margins and force prices ed that: “This year, CBN FX rate on one hand, the government’s down. Competition is supposed adjustment has chopped into intent on ensuring lower gas to drive tariffs but what we have our profitability big time. It has prices in order to ensure afford- is a reverse scenario where regu- made us poorer and difficult to ability of the end product to the lation is driving tariffs. This is un- meet our credit funding obliga- final consumer, including power; sustainable and we are already tions.” and on the other hand, investors’ living in the fallout of this. Commenting on the domestic need to ensure gas prices that Gas business is capital inten- gas pricing dilemma in a recent are reflective of the spectrum of sive and in order to encourage media interview, the President their infrastructure cost profiles the much-needed investment of the Nigerian Gas Association and other variables that impact
This situation, the source said “Is like saying from now henceforth consumers in the country will buy PMS or DPK in dollars at any filling station. Why is Gas priced in dollars, sold to Gencos at discount while other industries buy it higher?”
28 Cover Story 08:20
The President of the Nigerian Gas Association (NGA) Audrey Joe-Ezigbo, said that the main prob- lem has been on one hand, the government’s intent on ensuring lower gas prices in order to ensure affordabil- ity of the end product to the final consumer, including power; and on the other hand, investors’ need to ensure gas prices that are reflective of the spectrum of their infrastructure cost profiles and other variables that im- pact on the viability of their investments. into the sector, it must be treat- a profitable pricing mechanism tor, she said the preferred pricing ed as a business product not a that would be deemed to be mechanism for the Nigerian gas social service. The Government commercially viable to investors, market would be the Willing Buy- cannot fund the development of both local and foreign.” er-Willing Seller pricing model. this sector. It must therefore put On what pricing structure and This model, she said, advo- in place incentives to attract in- mechanism to be preferably ad- cates for a fair price agreed upon vestors. One of the incentives is opted for the Nigerian gas sec- by both the buyer and the seller
The Hon. Minister and GMD NNPC while inaugurating the Committee
29 Cover Story 08:20 of the gas product, armed with mittee in Abuja charging them to market was higher than export knowledge about the dynam- come up with recommendations price was not sustainable. ics of the product and under no that can help end the price dis- He listed the Committee’s forced obligation to transact parity with a view to positioning terms of reference to include: with a price that is deemed un- the gas sector as a catalyst to Reviewing the existing domes- feasible. drive the nation’s economic de- tic gas pricing structure in such “Our reality is that we already velopment. a manner that will attract in- have these types of transactions “A significant element of the vestment in the domestic gas happening in the country. We Federal Government’s economic market as well as ensure viabil- should allow market-reflective development plan was to move ity of the entire gas value chain tariffs that support investment Nigeria from being a crude oil and making recommendations economics needed to ensure export-based economy to an at- on appropriate gas price for the expansions in the gas infrastruc- tractive oil and gas-based indus- respective segments of the gas ture backbone across the coun- try economy. This is in realiza- value chain. try,” Ezeigbo said. tion of the availability and great Other terms of references in- As a good first step on the potential of gas to drive econom- clude: Reviewing the National journey to full market liberaliza- ic development”, he said. Gas Policy and advising on re- tion and an end to the age-long He charged members of the lated issues and concerns with disparity between domestic and Committee to review the existing regards to gas pricing and down- export gas prices, the Minister domestic gas pricing structure stream gas sector development of State for Petroleum Resourc- and benchmark it with the glob- and evaluating recent and cur- es, Chief Timipre Sylva, recent- al pricing mechanism, stressing rent government initiatives on ly inaugurated a domestic Gas that the current situation where gas pricing with a view to linking Pricing Framework Review Com- the price of gas in the domestic domestic gas pricing with the LNG export parity price. In his remarks, the Group Managing Director of the NNPC, Mallam Mele Kyari, agreed that right pricing was an important factor in the entire process of re- structuring the sector in order to attract investments. Responding, Chairman of the Committee and NNPC Chief Op- erating Officer, Gas and Power, Engr. Usman Yusuf, pledged to conduct the affairs of the Com- mittee in a diligent and profes- sional manner. He said members would be guided by national interest in their deliberations, adding that the Committee would deliver its report within the stipulated 30- day period. Members of the Committee were drawn from the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation, Department of Petroleum Re- sources, Manufacturers Associ- ation of Nigeria, and other agen- cies.
Audrey Joe-Ezigbo
30 Industry 08:20 Oil, Gas Industry Must Continue to Adapt in Order to Thrive - Sarki
–By Gideon Osaka
he changes in the glob- al energy landscape has Tmade it imperative for the oil and gas industry to adapt ac- cordingly in order to maintain relevance, remain competitive and thrive. Mr Auwalu Sarki, the Director, Department of Petroleum Re- sources (DPR), spoke recently at the virtual opening ceremony of the Energy Industry Transforma- tion Summit (NEITS), organised by the Society of Petroleum En- gineers (SPE), Nigeria Council. Sarki said theme of the sum- mit “Changing Global Energy Landscape: Strategies for In- dustry Sustainability’’, was not Mr Auwalu Sarki only relevant and germane, but timely and apt. ation in the industry,” Sarki said. Nwakwue said: “Awareness “The scene of the world is The DPR chief said the agen- and policy geared toward re- changing rapidly, and the in- cy had adopted several ap- newable energy use and energy dustry must respond and adapt proaches and streamlined its efficiency is spreading. These accordingly to survive, maintain processes to deepen its influ- places a potential cap to oil and relevance, remain competitive encing role as an opportunity gas demand in the future. and thrive,” he said. house and business enabler for “The impact of this transition According to him, the oil and the industry. toward a low carbon economy gas industry has been affected He said the approaches in- on energy-deficient and ener- by a combination of factors in- cluded cost control and man- gy-hungry countries like Nigeria cluding, changing demography agement, strategic partnership, (where enhanced energy access with resultant shift in energy vertical integration, diversifica- and availability is crucial to hu- supply and demand equilibrium, tion and portfolio rationalisation man wellbeing and country’s adding that globalisation and and operational resilience. economic growth and develop- geopolitics, climate change and Sarki noted that DPR is proud ment), is a subject of great con- drive for alternative energies, as to be associated with the SPE, cern for sustainability. well as technology and innova- which had the ideals and vision “Consequently, there is a ten- tion, had also affected the in- of enabling the industry meet dency of having rapid evolution dustry. the world’s energy demand in a and adoption of renewable ener- “More recently, the effect of safe, environmentally responsi- gy technology (solar and wind), the ‘Triple force’ of COVID-19 ble and sustainable manner. thereby reducing energy costs, pandemic, oil price crash and In his remarks, Mr Joe Nwak- changing lifestyles and habits OPEC+ production cuts have wue, Chairman, SPE Council Ni- by our large youth population. clearly demonstrated the com- geria, said the world was grad- “All these are expected to im- pelling need for new thinking ually shifting to cleaner sources pact the economic future of the and approach for strategic repo- of energy due to environmental affected countries and the fu- sitioning and business optimis- impacts of oil and gas activities. ture of Energy.”
31 Energy 08:20
Celebrating Milestones in Nigeria’s Power Sector?
–By Benjamin Ike
he Minister of Power, Engr. ral anniversary with a milestone nect supply chains and effi ciently Sale Mamman assumed in the nation’s power sector. move electricity from generation Toffi ce in August 2019 and As we mark the cabinet’s one to households. Due to lack of in- shortly after embarked on trips to year in offi ce, the minister of pow- frastructure, the sector is unable inspect some major power proj- er is sitting on record accomplish- to effectively utilize its generation ects and having understudied the ments of successfully taking the capacity of over 12,000MW and power sector’s critical needs, he national grid to 5’420.30MW the incurred over 254 Billion Naira as unveiled a blueprint for reforming highest ever as of today. the cost of un-utilized capacity. the sector. With this feat, Mamman’s fo- However, power infrastructure is The blueprint focused at fi ve cal areas for a new power sector capital intensive in nature, Feder- focal areas covering the sector’s in the fi ve focal areas is already al Government allocation alone is challenges. yielding promising results. inadequate to cater for the huge The power sector in Nigeria is a We, therefore, present below funding requirements. It is on this market in transition, and like most the fi rst-year achievements of basis that this administration de- privatization efforts observed the Hon Minister according to his veloped an innovative approach from international experience, blueprint and presidential man- of sourcing funding needed to there were teething challenges. date assessment areas. execute critical infrastructural de- Hence, the basic thrust of the velopment needed for the sector. blueprint was the need to insti- FUNDING OF CAPITAL PROJ- I am glad to state that, to date, tute and enhance coordination in ECTS UNDER THE POWER a total sum of $6.150 Billion have the power sector, as one of gov- SECTOR been secured for infrastructural ernment-owned agencies, private Infrastructure development is development. The total sum has agencies, and utility fi rms. critical for the development of the been earmarked for the following One year down the line, the Power Sector. The sector needs critical projects; minister is celebrating his inaugu- a reliable infrastructure to con- •$2.3 billion Siemens
32 Energy 08:20
•$1.6 billion Transmission Re- capacity in the long term, with habilitation and Expansion Pro- appropriate upgrades and expan- gramme sion in both generation, transmis- •$1.7 billion DISP sion, and distribution. •$550 million NEP (WB/AFDB) To date, we have secured ap- proval for the sum of ₦1.7 Billion ELECTRICITY VALUE CHAIN IN- Naira and €15,2 Million Euro for FRASTRUCTURE ALIGNMENT the Pre-Engineering work. A Spe- With the securing of the $6.150 cial Purpose Vehicle (SPV) called Billion Dollars in funding, The Fed- FGN Powerco is in the process of eral Ministry of power under the being set-up following Mr. Pres- present administration has com- ident’s approval. The SPV will menced the implementation of warehouse the project’s contin- critical infrastructure that will en- gent liability for accountability. We able the country to achieve gener- have also constituted the Nige- ation, transmission, and distribu- rian Project Management Office tion of 25,000 MW of electricity (PMO) with the sole responsibility by 2025. of providing project management We embarked on the biggest in- of the project on behalf of the Ni- frastructural development along gerian Government. the entire electricity value chain in Additionally, in a complementa- the history of the Nigerian power ry way, we are also implementing sector. This development referred the Transmission Enhancement to as Presidential Power Initiative Programme. The Federal Minis- aims to systematically up-rate try of Power working with key de- end-to-end capacity of the bulk velopment partners; World Bank, power system, from generation AfDB, JICA have raised $1.6 Bil- to last-mile delivery, thus reduc- lion for Transmission Rehabilita- Engr. Sale Mamman ing system constraints, enabling tion and Expansion Programme digital vies of the entire 11kV and wheeling capacity of power to (TREP), which is ongoing now 33kV lines of the entire country. be sufficient to drive industrial with major projects as follows: We have secured $550 million growth in the country as originally • Alaoji-Onitsha, Delta Power NEP (WB/AFDB) for off-grid elec- envisaged by the Economic Re- Station-Benin and Kaduna-Kano trification. Using these funds, we covery and Growth Plan (2017). $410 Million are implementing our two Nobel The initiative is structured into • $29 Million is intended to build programs Energizing Education three phases, aimed at increas- a 330kV DC 62KM line between where we provide an off-grid hy- ing power delivered to Nigerians Birnin Kebbi and Kamba. brid solar system to our various to 7GW in the first phase (Phase • Lagos/Ogun Transmission In- educational institutions. To date, 1), 11GW in the second phase frastructure Project (JICA)-$200 we have completed 5 institutions (Phase 2), and 25GW in the third Million. and working on additional 5 high- phase (Phase 3). • Abuja Transmission Ring er institutions. We planned to cov- The proposed Phase 1 proj- Scheme (AFD)-$170 Million. er 37 Universities and 7 Teaching ects which we are about to com- • Northern Corridor Transmis- Hospitals. mence, focuses on quick wins for sion Project (AFD & EU)-$274 Mil- Our Mini-Grid regulation has both TCN and the Discos, with lion. supported off-grid solar growth the objective of increasing pow- and is a key reference for many er delivery to consumers by an CREATING ENERGY ACCESS countries in Africa. As of 2019, we additional 2GW, making a total of To increase energy access for had 4 million off-grid connections. 7GW. an estimated 80 million Nigerians We aim to add another 5 million in The second phase will target that are without electricity access, the next 18 to 24 months under the remaining last-mile bottle- the Ministry under the leadership the recently approved Economic necks to enable full use of the of Mamman was able to achieve Sustainability Programme. existing generation and “the last the following: mile” distribution capacities, Mapping of unserved clusters. COMPLETION OF LEGACY GEN- bringing the systems operational We have mapped the entire un- ERATION PROJECTS capacity to 11 GW. served clusters and Identified the The Ministry is working on Phase 3 would involve devel- best means to provide them with completing various generation oping the system up to 25 GW electricity. This provides us with a
33 Energy 08:20
Additionally, we are working on the Mambilla project which has the potential of stimulating econom- ic development and enhancement of living standards of millions of Nigerians. Through the project, the country can achieve a 30% increase in its current generation capacity and serves as the biggest source of base-load power that will improve grid stability. Economically, the project will enable job creation, drive entrepreneurial de- velopment, and unleash resource utilization. projects that will enhance the cur- billion) of the project cost from critical to project delivery. rent generation capacity. We plan Export-Import Bank of China (Chi- Land and Aerial Survey of the to achieve 25GW by 2025 based na EximBank), while Federal Gov- Project site following a renegoti- on the Siemens plant. Currently, ernment of Nigeria (FGN) will pro- ated contract with the surveyors the following projects are being vide the remaining 15% (USD850 which resulted in savings by the undertaken: million) consisting of $200 million Federal Government of Nigeria As regards to our effort to com- loans from the Nigeria Sovereign (FGN) of the sum of Three Hun- plete legacy projects, we are cur- Investment Authority (NSIA) and dred and Fifty Million Naira (N350 rently completing Zungeru Hydro- $650 million from direct FGN Million) from an earlier survey electric Power Plant at the total funding. contract signed through the Tara- contract sum of 1.2 Billion dollars The Mambilla Hydropower ba State Government. with a completion period of 48 Project has a proposed installed Another generation project we months and a 12-month defect capacity of 3,050MW. The main are working on is the Kashimbil- liability period. The project is de- construction works include the la project located in Takum Lo- signed with a capacity of 700MW. following: cal Government Area of Taraba Currently, the project is at a 73% Four large Dams among which State, Nigeria. The project was level of completion. are the Nya Dam, Sumsum Dam, proposed principally to check the Additionally, we are working Nghu Dam, and the API Weir; threat of flood and volcanic activ- on the Mambilla project which Two (2) Number 330KV - ity. It would mitigate the environ- has the potential of stimulating Abong powerhouse to Makurdi mental disaster that would occur economic development and en- and 330KV - Abong powerhouse in several states of Taraba, Benue, hancement of living standards of to Jalingo transmission lines with Cross River, Kogi, and Delta and millions of Nigerians. Through the a length of more than 700kms; affecting more than 6 million peo- project, the country can achieve a About 120km Access road net- ple. The hydropower component 30% increase in its current gener- work connecting the project site of the project was designed and ation capacity and serves as the with nearby communities. upgraded from the initial 6MW to biggest source of base-load pow- To date we have achieved the 40MW capacity. Other benefits er that will improve grid stability. following in the development of of the project include Ecological Economically, the project will en- the Mambilla project: Flood Control; Water Supply to able job creation, drive entrepre- Reviewed the scope of work/ 400,000 people; Irrigation; Fish- neurial development, and unleash project capacity to ensure the eries; Airstrip; Tourism; Poverty resource utilization. technical feasibility, economic vi- Alleviation and job creation etc. The project contract was ability, and financial profitability of The hydroelectric component of awarded in 2017 at the contract the project. the project is 100% completed. sum of USD5.7 billion to the con- Executed a landmark Memo- We are currently working on the sortium of Chinese Companies randum of Understanding (MOU) development and expansion of based on the agreement that the with the Taraba State Govern- transmission lines to evacuate Chinese contractors will facilitate ment to enhance coordination on the power from the project site to for Nigeria to secure concession- a number of initiatives and estab- areas of distribution. ary financing of 85% (USD4.85 lish good working relationships
34 Life 08:20 WOMEN’S CORNER What Women Want In this column, the writer takes an in-depth look at the different things wom- en want, their perspective on life and its various issues, how they affect society, how they go about tackling the challenges life throws at them, the role of wom- en in the society, life as a single lady, the challenges of motherhood, what the society expects from women and so many interesting issues and topics sur- rounding women as individuals, mothers and members of the society at large.
–By Favour C. Nrabulu
hat do we even want? of person who eats continuous- The list is endless ly without abandon and you do Wbecause we fi nd our- not incorporate exercises into selves desiring a lot of things; your routine, no matter what we desire to be loved by our you do, you are bound to live partners, we wish to have beau- an unhealthy and overweight tiful, highly intelligent children, life. In the same vein, if you de- we desire happiness and pros- sire a healthy and happy home perity for our families, we wish but you are not available to your we could eat to our heart’s con- husband and children emotion- tent without adding weight, we ally, physically and otherwise ei- want to have children and retain ther due to your chosen career our previous body size, we want or for whatever reason at all, to be fashionable, beautiful, your home will not be a happy elegant, and greatly admired, one because a wife/mother’s amidst many more wants. place in the family cannot be The truth is, as human beings trivialised or overemphasized. In whether male or female, we are other words, to live a healthy life, naturally insatiable; the best we you must eat right and work out can do is strive to be better ver- and to have a happy home, you sions of ourselves every day. have to be available to your fam- We can all have what our ily, come rain or shine. hearts’ desire if only we are will- In a nutshell, whatever area ing to put in the work required. you want to do well in life, be it in Although life has a way of the home front, your career, your throwing things we don’t expect weight, fi nd out the things you or thinkk we deserve our way, need to do to succeed in that majority of the time, we get what particular area, apply them ju- we deserve. We discover from our everyday activities. Whatev- diciously, and with time, you will the Holy Books that ‘what you er we do regarding what we eat, reap the fruits of your labour. sow is what you reap’, the same how we relate with people, how As you apply this principle to principle has been recognised we are with money, and so on all your life, you will live a happy by society as the ‘law of karma’. have effects on our lives in the and fulfi lled life. See you next This principle not only applies long run. month! to when you do good or bad, it Let me give you some classi- also applies to how we go about cal examples. If you are the kind
35 Industry 08:20 Gas Expansion Programme will Create 12m Jobs – Sylva
–By Fred Ojiegbe
ederal Government plans to dual fuel with use of either Review of the Domestic Gas to create 12 million jobs Auto Liquefied Petroleum Gas Pricing Framework. Fthrough implementation (LPG) or Auto Condensed Natu- “These programmes and of National Gas Expansion Pro- ral Gas (CNG). activities are geared towards gramme (NGEP), Chief Timipre “And on that premise, I now achieving the mandate handed Sylva, Minister of State for Pe- have the moral standing to di- to us by Mr President. troleum Resources has said. rect that all Chief Executive Of- “It is therefore my earnest Chief Timipre Sylva said the ficers and their able lieutenants hope that we will carefully drive implementation of the Nation- do same by converting all their these programmes and activi- al Gas Expansion Programme official vehicles to run on auto- ties to a logical conclusion, ” he (NGEP) will create 12 million di- gas.” said. rect and indirect jobs across the According to him, this will Also, Dr Abner Ishaku, Techni- country. demonstrate to the Nigerian cal Adviser, Downstream to the A statement by the Ministry people that the government Petroleum Minister, said the pro- of Petroleum Resources, said meant it when it declared this motion of gas as replacement Sylva made the assertion at the year “The Year of Gas”. fuel will also save the nation the recently concluded Ministerial He said other programmes much-needed Forex expended Mandate Performance Score- initiated to boost gas usage in on imported fuels. card Review Session. the country include the Nigeria Ishaku noted that it would Said Sylva: ”In terms of im- Gas Flare Commercialisation provide alternatives to Premium pact, the NGEP will create over Programme (NGFCP) and flag Motor Spirit , Automotive Gas Oil 12 million direct and indirect off of the National Gas Trans- and Dual Purpose Kerosene for jobs and human capacity devel- portation Network Code (NGT- Nigerians. opment nationwide. NC). On his part, Derefaka said the “I, hereby declare NGEP as the Sylva said it also includes initiatives were geared towards flagship programme of the min- the ongoing Marginal Field making Nigeria the hub of gas istry based on the outstanding Bid Round, flag off of the con- production and utilisation on work the committee is doing. struction of the Ajaokuta-Kadu- the African continent, in addition “I have surrendered my vehi- na-Kano (AKK) gas pipeline and to optimising the nation’s enor- cles to the NGEP to convert all Committee on Gas Sector-Wide mous gas potential.
In terms of impact, the NGEP will create over 12 million direct and indirect jobs and human capacity development nationwide.“I, hereby declare NGEP as the flagship programme of the ministry based on the outstanding work the committee is doing.“I have sur- rendered my vehicles to the NGEP to convert all to dual fuel with use of either Auto Liquefied Petroleum Gas (LPG) or Auto Condensed Natural Gas (CNG).
36 Industry 08:20
The changes in the global energy landscape has made it imperative for the oil and gas industry to adapt accordingly in order to maintain relevance, remain competitive and thrive.
Derefaka said: “The world is not be a bad thing for Nigeria as According to him, gas has a gradually turning away from this may push us to diversify our leading role as a key enabler to crude oil to gas to drive their economy using gas and away the diversification and growth economies. Our collective ef- from dependence on oil.” of Nigeria’s broader economy forts should be putting all ma- Derefaka, who is also the pro- through adequate power gen- chineries in place to make gas a gramme Manager, NGFCP said eration, provision of feedstock critical catalyst to our economic Nigeria needs to use gas and for value-adding manufacturing, development. invest in critical sectors of our and increased government reve- “The approach should include economies such as education, nue from LNG. the diversification of our -econ health, infrastructure and agri- The changes in the global omy, efficient management of culture. energy landscape has made it revenues, commitment to local According to him, this will imperative for the oil and gas value addition in the gas indus- provide a solid base for indus- industry to adapt accordingly in try. trialisation, local value addition, order to maintain relevance, re- “In the long run, a sustained economic development and main competitive and thrive. decline in the price of oil may sustainable growth.
37 Industry 08:20
AUGUST SHORT TAKES –Compiled By Saidu Abubakar
Russia says July Oil Output in line the Executive Secretary, Nigerian struction of three new refineries, in- with OPEC+ Deal Content Development and Moni- dicating an increase of 3.8 per cent. Russia’s Energy Ministry has as- toring Board (NCDMB), Engr. Simbi sured that his country’s oil output Wabote, have commended Seplat Nigeria hikes Petrol ex-depot Price in July was unchanged from levels Petroleum Development Company by N5.32 per litre seen in June, in line with an OPEC+ Plc. for its sterling leadership as the Nigeria, Africa’s biggest crude oil agreement. industry’s poster child and breath- exporter, has hiked the ex-depot price taking impacts on the growth of the for Premium Motor Spirit (PMS) also Price Band: Tension Grips Depots, country’s oil and gas development in known as petrol by N5.32 per litre. Filling Stations as PPPRA Delays the past decade. Serious tension is building up at NNPC Records 43 Per cent Drop in fuel depots and filling stations across Sylva Kick-starts Oloibiri Museum/ Oil Pipeline Vandalism in May the country as Federal Government’s Research Center Project The Nigerian National Petroleum new (August) price band for Premi- …Inaugurates project committees Corporation (NNPC) has recorded um Motor Spirit (PMS) also known The Minister of State for Petro- an encouraging 43 per cent drop in as petrol suffers delay. leum Resources, Timipre Sylva, has cases of willful damage of its oil pipe- inaugurated two committees and line infrastructure by suspected oil NNPC Mourns Passing of Former five project teams for the Oloibiri Mu- thieves in May, 2020. GMD, Dawha seum and Research centre which will The Nigerian National Petroleum be situated in Oloibiri, Bayelsa state. Resumption of Ogoni Oil Explora- Corporation (NNPC) regrets to an- tion: Terms Interested Operators nounce the demise of its former Uncertainty Looms over OPEC’s Must Meet — Host Communities Group Managing Director (GMD), Dr. Plan to Raise Supply Ogoni oil-producing communities Joseph Thlama Dawha. Dr. Dawha, There is uncertainty over the Or- in Rivers State recently declared that died after a brief illness, NNPC Group ganisation of Petroleum Exporting any oil firm desirous of resuming ex- General Manager, Group Public Af- Countries (OPEC) and allies’ plan ploration in the area must come to fairs Division, Dr. Kennie Obateru to return supply to the market after terms with the people before enjoy- stated in a release. the group’s output cuts, while the ing the freedom to operate whatev- covid-19 pandemic continues to er license secured from the Federal spread across many major econo- Government. mies of the world. Troops Dismantle Illegal Diesel Re- Why Private Investors In Refineries finery in Rivers, Delta Failed – Kyari *Set fire on site The Group Managing Director of In its fight against crude oil theft the Nigerian National Petroleum Cor- and other economic sabotage in the poration (NNPC), Mallam Mele Kyari, Niger Delta, the Defence Headquar- has explained why several licenses ters says the maritime component of granted to private investors by gov- Operation Delta Safe, has dismantled ernment for the establishment of illegal diesel refining operations in refineries could not come to fruition. Rivers and Delta states.
How Nigeria’s Gas Reserves Can Post Covid-19: Oil Price Hits $45.5 Add Value to Economy – Sylva A Barrel The Minister of State for Petro- The price of oil has risen above leum Resources, Chief Timipre Sylva, $45 a barrel, the first time it has has said that Nigeria’s gas reserve reached that level since the coronavi- Dr. Joseph Thlama Dawha can match its energy need if there is rus outbreak forced countries across efficient utilization and monetization Europe into lockdown. However, this Sylva, Kyari, Wabote Hail SEPLAT template of the resources. rebound may prove to be short-lived, as Pride Of Indigenous Operators, according to oil market analysts. Gas Revolution Strides Nigeria’s Domestic Refining Capaci- The Minister of State for Petro- ty Rises by 3.8% — Report High Number of Offshore Fields leum Resources, Timipre Sylva; the The refining capacity of Nigeria Raises Risk in Nigeria’s 2020 Mar- Group Managing Director of the Ni- has increased from 445,000 barrels ginal Field Bid Round gerian National Petroleum Corpora- per day, bpd, to 462,000 bpd, as pri- There are 29 shallow water fields tion, NNPC, Mallam Mele Kyari; and vate investors complete the con- among the 52 fields on offer in the
38 Industry 08:20 ongoing Nigerian marginal field bid round, which wraps up on September 2, 2020.
Canadian Judge Approves Nigeria’s Seizure of Ex-Oil Minister’s Jet A Canadian judge has confirmed the seizure and grounding of a luxu- ry private jet purchased by a former Nigerian oil minister, Chief Dan Etete, with some of the alleged proceeds of the controversial $1.3 billion Malabu OPL245 oil deal.
FG Set to Meet Five Million Tonnes of LPG Utilization – Sylva Inauguration of NLNG New Board The minister of state for petro- leum resources Timipre Sylva has said that more private and public National Gas Transportation Net- ment in Abuja recently said: “With the sector collaboration will be encour- work Code Goes Live current dwindling revenue from oil, aged as the country steps up effort The National Gas Transportation gas economy could be a safe haven to realise its target of boosting do- Network Code launched in February, for the country.” mestic gas utilisation. by Chief Timipre Sylva, minister of state for Petroleum Resources went Petroleum Industry Bill Arrives NNPC Signs Pact with Partners to live on August 10, 2020. Again at the Nigerian National As- Resolve OML 130 Dispute sembly …Resolution will unlock about Dangote, Africa’s Largest Oil Refin- A team of lawyers at the Nigerian $510million of gas revenue ery Opens Next Year Ministry of Justice has finalised the In its bid to meet the target of rev- Africa’s largest oil refinery, which draft of the long-awaited Petroleum ving up production to 3million barrels is anticipated to be the biggest sin- Industry Bill and sent it off to the Na- per day and unlock gas revenues to gle-train structure, is set to be opened tional Assembly, the country’s bicam- the tune of about $225 million in the early 2021. The Dangote Oil refinery eral house of legislature. The frame short term and $510million in the is the brainchild of Africa’s wealthiest of the document had earlier been long run for the Federation, the Nige- man, the Nigerian Aliko Dangote. approved by President Muhamma- rian National Petroleum Corporation du Buhari and the Federal executive (NNPC) has reached an accord with Valuechain Webinar: Stakeholders council. its partners, China National Offshore Demand early Delivery of AKK Gas Oil Company (CNOOC) and South At- Pipeline Project NLNG New Board Inaugurated lantic Petroleum (SAPETROL), to set- Key stakeholders in the Nigerian The newly-appointed Chairman tle all outstanding issues surround- economy have demanded urgent of the Board of Directors of Nigeria ing the development of Oil Mining realization of the Ajaokuta-Kadu- LNG Limited formally assumed duty Lease, (OML) 130. na-Kano (AKK) pipeline project as recently, following a ceremony at the potent strategy for rapid industrial Corporate Head Office of the compa- Rivers community Seeks Govern- development and economic diversifi- ny in Port Harcourt, Rivers State. ment’s Intervention over NAOC’s Oil cation agenda. Spill Inconsistent Policies Frustrating Obrikom community in Ogba/ NNPC Vows to Boost Gas Delivery Investments in Nigeria’s Oil Sector Egbema/Ndoni LGA of Rivers State, to Domestic Market – Total MD has called out for government’s inter- The Nigerian National Petroleum Managing Director, Total E&P Ni- vention following an oil spill from a Corporation (NNPC) has restated its geria Limited, Mike Sangster has at- facility operated by the Nigerian Agip commitment to working with rele- tributed Inconsistent fiscal and regu- Oil Company, NAOC. vant partners and stakeholders in the latory policies of government as the Oil and Gas Sector to boost delivery reason for the decline in oil and gas After Spending N101.7bn, NNPC of gas to the domestic market. exploration activities in Nigeria. Recorded Zero Subsidy Payment in April Nigeria Can Earn $1b Yearly from FG Approves NNPC Oil, Gas Logis- After spending N101.65 billion as Gas – RMAFC tics Centre in Akwa Ibom subsidy on Premium Motor Spirit Nigeria can generate over $1bil- The Federal Government has ap- (PMS), also known as petrol, in the lion yearly from gas resources if proved the establishment of Nige- first three months of 2020, the Nige- stakeholders do the right things. ria National Petroleum Corporation rian National Petroleum Corporation Chairman of the Revenue Mobilisa- (NNPC), oil and gas logistic Centre in (NNPC) recorded zero subsidy fig- tion Allocation and Fiscal Commis- Akwa Ibom. ures for April 2020. sion (RMAFC) Elias Mbam in a state-
39 Entertainment 08:20 ‘Entanglements’ in Big Brother Naija
–By Adeniyi Onifade
ntaglement’ is the new on the streaming service. cern (MURIC) lent similar voice jargon in the Nigerian “If watched back to back, the calling for the ban of the show. ‘Eentertainment space cur- collective number of hours of the Although the show contains rently. show streamed this season al- scenes of supposed sexual inter- The word is used to mean a ready add up to almost 30 years’ course, and other romantic acts, sort of intimate relationship is worth of viewing. many Nigerian youthful popula- basically meant to be for ‘fun’. “Interestingly, a significant tion have embraced the show, The phrase started as a result portion of the viewing is happen- with reports saying many spend of the recent love escapades ing outside of Nigeria,” it said. a whole day watching the show played out in Season 5 of the Big Showmax is an internet tele- without getting tired. Brother Naija show. vision service with combination Others also believe that the The Big brother Naija show of hot African content, exclusive show gives them some sort of tagged “Big Brother Naija Lock- International series, kids’ shows reprieve from the many troubles down” for this year has been ex- and live sport from SuperSport. inherent in the country. periencing some cozy activities Showmax was established With the show airing over a among house mates. in 2015 with services available month, housemates have formed Showmax, an internet televi- throughout the sub-Saharan Af- bond while others have formed sion had already stated that the rica. intimate relationships. ongoing Big Brother Naija (BB- However, the Minister of Infor- Naija) show had become the mation and Culture in Nigeria, Lai ERICA AND KIDWAYYA most popular entertainment live Mohammed came out recently It appears another relationship stream on that platform with a shocker that Big Brother has been finally sealed in the Big Showmax stated that devel- show should be banned, which Brother Naija (BBNaija) house as opment had proved that local angered many Nigerians. the ship of Erica and Kiddwaya content definitely had cross-bor- Entertainment Industry lashed have begun to sail once again. der appeal. out at the minister, asking why Kiddwaya’s and Erica’s ship The television service drew he didn’t stop the show before it nearly sunk after Erica confront- audiences in Nigeria and other began, but allowed it to kickstart ed Kiddwaya about how he’s countries across the continent. before calling for its ban. been flirting with the other fe- “The Big Brother Naija Lock- Mohammed had said the male housemates. Although Eri- down which started July 19, show promoted promiscuity in ca disclosed to Big Brother that 2020 had already broken a the society and serves as a bad she has a strong connection with Showmax live-streaming record precedent to the youthful popu- Laycon, it seems Erica is attract- and become the most-watched lation. ed to Kiddwaya. live entertainment content ever Similarly, Muslim Rights Con- The two love birds had a deep
Although the show contains scenes of supposed sex- ual intercourse, and other romantic acts, many Nige- rian youthful population have embraced the show, with reports saying many spend a whole day watching the show without getting tired.
40 Entertainment 08:20
to another housemate Ozo. In a late-night conversation with Laycon and Trickytee, Prince revealed how he feels about the fact that Nengi hasn’t been able to choose whether she wants to stay with him or Ozo. BBNaija news today brings you the latest in the house, according to him, such character doesn’t make any sense and he can’t continue to be in such space anymore. Meanwhile, Erica and Laycon have finally sorted how they feel for each other as they recently had a conversation around it. In the video online, Erica was spot- ERICA AND KIDWAYYA ted with Laycon as they talked about their feelings for each heart to heart conversation and ancee and Katrina, a 27 year old other: It all started when Laycon Erica finally agreed to date- Kid divorcee. asked Erica if she was attracted dwaya after he managed to con- The eve before Katrina’s evic- to him. The young woman an- vince her. tion, she was caught on camera swered that she only had a men- However, Erica gave him some with Praise supposedly having tal attraction for him. terms and conditions to safe- intimacy under the white clothed guard her heart from being bro- duvet in the house. NENGI AND OZO ken. She told Kiddwaya to stop Instagram Prince who had a Nengi and Ozo tagged the flirting with the other female thing for Nengi seems to have ‘cutest’ couple in the big brother housemates in the house and if switched base as he was seen Naija Season 5 ‘Lockdown’ show he abide by that, she will officially in the garden having a talk with are currently enjoying their best date him. Tolani who sat on his lap and had moments in the house. her arm around his neck. However, there’s been lots of TOLANI BAJ AND PRINCE Despite refusing to sleep in his controversy as to why the 22 It appears there is a poten- bed, the couple spent the night in year old former beauty queen tial ‘ship’ about to sail in the Big each other’s arms, in her bed. and reality tv star wants to have Brother Naija house and some Judging by this new love en- her cake and eat it. fans are here for it. Tolani Baj tanglement with Tolani Baj, it ap- She stated that she was see- and fellow housemate, Prince, pears Prince is fed up with Nen- ing someone outside the house, recently had a heart-to-heart gi’s attitude of jumping from him but if she came out of the show conversation that ended up with them sleeping together. Recall some time back, Tola- ni Baj had made her feelings for Prince known but he let her know it wasn’t reciprocated and fans hailed the ebony black beauty for how well she took it. Tolani Baj and Prince spent the night to- gether, although it is not clear if they had sexual intercourse, the CCTV camera captured some movements under the duvet as they both cuddled up. The same scenerio had played out between Praise, a house- mate who is engaged to his fi- TOLANI BAJ AND PRINCE
41 Entertainment 08:20
Subsequently, Bright O, a housemate in the house had bared his mind on the duo’s rela- tionship which he felt was genu- ine While discussing with Neo and Laycon in the kitchen on August 14, Bright O said he felt Neo and Vee’s relationship was the most genuine in the House. “All these things wey dey hap- pen for this house ehn, the only relationship wey I feel say e get head na una (Neo and Vee) own. “I dey even talk am where other people wey dey relationship dey. The only relationship wey I feel say e fit work out na una own. I don tell you (Neo) before na. You NENGI AND OZO fit no see am oh but me I dey see am,” Bright O tells Neo,” he said to find out her boyfriend had one, insisting that she should As it stood, the love relation- moved on, then Ozo who was at- keep her eyes on the money like ships were believed to be still in tracted to her, was an option she he was doing. it’s formative stage as the game would be willing to try. He assured her of being with progresses. The Bayelsa native further dis- her though he felt one of them Many Nigerians still have their closed that everyone paired she may inherit the other’s enemy be- fingers crossed and expect more and Ozo together as though they cause people had already started ‘Entanglements’ as the dynamics were already a couple, when they making negative pictures of oth- of the show keeps unfolding. were just friends and she’s get- ers in the house but regardless of ting to know him better. that, he still got her back. Meanwhile, Ozo has always not hidden his love for Nengi as he was always fond of her al- though many felt the love was not being reciprocated.
VEE AND NEO Vee and Neo is one of the entangelments going on in the house which has aroused inter- est by Nigerians. Vee began the discussion by reflecting on her past rela- tionships and the impact it had made in her dating life alongside the choices she needed to make in life. She said Neo “gave her heads up on the impending pressure that will be exhibited in the house”, while adding that he (Neo) lectured her on the reason why they were in the house and cautioned her on not allowing herself to be distracted by any- VEE AND NEO
42
Health 08:20 Appreciating the COVID-19 Pandemic
–By Ibrahim Suleiman PhD.
ccording to the World an epidemic of cases detected gy.” The aetiology of this illness Health Organization (WHO), in Wuhan, the largest metropol- was attributed to a novel virus Aviral diseases continue to itan area in China’s Hubei prov- belonging to the coronavirus emerge and they present a seri- ince, was first reported to the (CoV) family. The virus itself was ous public health concern. In the WHO Country Office in China, initially termed 2019-nCoV. Sub- last twenty years, several viral on December 31, 2019. How- sequently, the task of experts epidemics such as the severe ever, it has been shown that of the International Committee acute respiratory syndrome 29 symptomatic cases can be on Taxonomy of Viruses (ICTV) coronavirus (SARS-CoV) from traced back to the beginning of termed it the SARS-CoV-2 virus 2002 to 2003, H1N1 influenza December 2019. Nonetheless, as it is very similar to the one in 2009 and the Middle East the causative agent remained that caused the SARS outbreak respiratory syndrome corona- unknown as of then, thus these (SARS-CoVs). virus (MERS-CoV) in 2012 have first 29 cases were classified as On February 11, 2020, the WHO been recorded. Most recently, “pneumonia of unknown aetiolo- Director-General, Dr. Tedros Ad-
44 Health 08:20
The Coronaviruses have become the major pathogens of emerging respiratory disease outbreaks. They can be isolated from different animal species. For reasons yet to be explained, these viruses can cross species barriers and can cause, in humans, illness ranging from the common cold to more severe diseases such as MERS and SARS. hanom Ghebreyesus, announced common cold to more severe in Nigeria, whereas the United that the disease caused by diseases such as MERS and States has more than 5,720,000 this novel coronavirus was a SARS. Interestingly, these latter cases and about 177,000 “COVID-19,” which is the acro- viruses have probably originated deaths. Although over time the nym of “coronavirus disease from bats and then moving into lethality rate (total number of 2019”. In the past twenty years, other mammalian hosts — the deaths for a given disease in two additional CoVs epidem- Himalayan palm civet for SARS- relation to the total number of ics have occurred, namely; the CoV, and the dromedary camel patients) of COVID-19 has been SARS-CoV (which provoked a for MERS-CoV — before jump- significantly lower than that of large-scale epidemic beginning ing to humans. The dynamics of the SARS and MERS epidemics, in China and involving two doz- SARS-Cov-2 has remained un- the transmission of the SARS- en countries with approximate- known, but there is speculation CoV-2 virus is much larger than ly 8000 cases and 9.6% fatality that it also has an animal origin. that of the previous viruses, with rate) and the MERS-CoV (which Many uncertainties remain with a much higher total number of began in Saudi Arabia with ap- regard to both the virus-host deaths. It has been estimated proximately 2,500 cases and interaction and the evolution of that about one in five individuals 35% fatality rate). Unlike these the pandemic. worldwide could be at increased two, COVID-19 is very conta- At the moment, the therapeu- risk of severe COVID-19 disease gious and has quickly spread tic strategies to deal with the in- if they become infected, due to globally. In a meeting on Janu- fection are only supportive, and underlying health conditions. ary 30, 2020, the outbreak was prevention aimed at reducing Since the first outbreak of declared by the WHO a Public transmission in the community COVID-19 in Wuhan, China, the Health Emergency of Inter- is our best weapon. Aggressive disease is spreading globally. national Concern (PHEIC) as isolation measures in China Individuals at the extreme of it had spread to 18 countries have led to a progressive reduc- ages and those that are immu- with four countries reporting tion of cases. From China, the nocompromised (weak body human-to-human transmis- disease spread to Europe. In It- defence system) are at higher sion. An additional landmark aly, in geographic regions of the risk of infection. Healthcare pro- occurred on February 27, 2020, north, initially, and subsequently fessionals must be fully aware as the first case of the disease, throughout the peninsula, polit- of the precautions necessary not imported from China, was ical and health authorities have to avoid the contraction and recorded in Nigeria. made incredible efforts to con- spread of the disease. While the The Coronaviruses have be- tain a shock wave that has se- provision and continuous usage come the major pathogens of verely tested the health system. of personal protective equip- emerging respiratory disease It is believed that the disease en- ment are paramount to limiting outbreaks. They can be isolated tered into Nigeria from Europe. the spread of the virus pending from different animal species. Afterwards, the COVID-19 quick- the discovery and development For reasons yet to be explained, ly crossed the ocean and as of effective vaccine. these viruses can cross species August 24, 2020, about 52,600 barriers and can cause, in hu- cases (with slightly over 1000 mans, illness ranging from the deaths) have been recorded
45 Motoring 08:20
The Stallion Auto Keke Ltd-organised ‘Keke Rally’ featuring five tricycles
History, as Stallion Holds Nigeria’s 1st Keke Rally with Bajaj Tricyles · Targets 28 Cities, 5,000 kms
–By Ironhand S. Chukwuemeka
otoring history was made amongst others. ing the message of being responsi- on Friday, August 7, when The organisers explained that ble and maintaining hygiene to stop MStallion Auto Keke Ltd., the the rally would be testimonial to the the spread of coronavirus. new and exclusive distributor of Ba- fact that the New Baba Bajaj, as the The convoy is also scheduled to jaj Auto for 3-wheeler and 4-wheeler new-generation tricycles are fondly visit identified cultural sites in the business, flagged off the first-ever called, are strong, durable and are at states as a comprehensive exercise keke rally in Nigeria at its showroom home on Nigerian roads. designed to celebrate Nigeria‘s his- in the Ijeshatedo area of Lagos. Guests were also informed that tory and its deep-rooted indegenous The flag-off, which marked the the long-distance road show ex- culture. It was explained that the formal (dealer) launch of a new pected to end on September 19, keke‘s journey to these sites and the range of Bajaj products and the was aimed at reinforcing the brand background stories, would help con- consummation of the Stallion-Ba- promise that the new Bajaj tricycles nect young Nigerians to their rich jaj partnership, will see the vehicles are strong, run faster and last longer. heritage. traverse about 5,000 kilometres of From the Lagos starting point, Speaking at at the dealer launch, public roads with stops in 28 cities in the rally will cover Ogun, Oyo, Kwara, Managing Director, Stallion Auto 16 states, starting with Lagos, Ogun Kogi, Benue, Enugu, Ebonyi, Cross Keke Ltd, Manish Rohtagi, said Bajaj and Oyo states. River, Akwa Ibom, Abia and Rivers. is the pioneer keke brand in Nigeria The keke rally comprises a con- Other states to witness the road that is well known for its durability, voy of five tricycles with their expe- show are Anambra, Delta, Edo, speed and overall performance and rienced riders, a branded truck for Ondo, Ekiti, and Osun states, just as is loved by millions. customer engagement and mar- the team will all through the durable He assured that the new distribu- ket activation, and security agents, drive of 5000 kilometres be spread- torship would bring immense value
46 Motoring 08:20
Flag-off of the first Keke Rally in Nigeria at Stallion Auto Keke Ltd showroom in Ijeshatedo, Lagos. to the dealers, fleet owners, riders vice centres across the nation only and consumers, stressing that Stal- deal in genuine spare parts provided lion’s advantage lies in its de-cen- by the company making durability tralised operation and quick deci- its brand promise. The Bajaj keke Rohtag with one of the five tricyles at sion-making, which will help drive are manufactured in a state-of-the- the ‘Keke Rally’ flag-off in Ijeshatedo, operating efficiency. art assembly plant in VON, Gbagada, Lagos, on Friday, Aug. 7, 2020 “The business is expected to grow Lagos employing the best-in-class, at a much faster rate as Stallion will home-grown technicians.’’ liance will go a long way in empow- actively push for the adoption of Not a few guests, especially the ering Nigerians to be self-reliant and keke by existing partners and the dealers, potential buyers and lovers improve the interests of the stake- customer ecosystem. It will bring of the brand, were excited by the holders, be it employees, dealers, differentiated customer service, announcement that the new dis- distributors, vendors, mechanics, and ease of spare partS availability tributor would soon introduce Bajaj unions, logistic operators, or bank- through its existing footprints in the Qute, a passenger four-wheeler and ers. auto industry,“ Rhotagi remarked Maxima Cargo, a three-wheeler for “With years of experience in mul- in an interaction with the motoring goods, before the end of this year. tiple countries including Nigeria, I press at the event. Regarded as low cost, last mile foresee the opportunity that Bajaj The Managing Director also dis- transportation solution, Bajaj Qute has vast potentials for growth in closed that plans were underway is an eco-friendly and fuel efficient the Nigerian market and to emerge to engage more dealers across the means of transportation. as the undisputed market leader. country and provide first class - af The Managing Director also ex- The right approach and service to ter-sales support aimed at quick ser- plained why the Stallion Group add- the dealers and consumers to bring vice within four hours, rider training ed the Bajaj franchise to its expan- out the USPs of the product and es- schools and rider and mechanic em- sive conglomerate, stating “For over sence of the brand will add strength powerment programmes. 50 years, Stallion has successfully for it to become the market leader.“ Stallion Bajaj boasts a network navigated the Nigerian terrain and Also speaking to the media at the of sales and service outlets in 96 has become a time-tested conglom- flag-off/launch, the Marketing Head locations spread across Nigeria and erate that has its presence across for Stallion Group, Arpita Luthra, will add 30 more exclusive and MFS the Nigerian economy. stated that Stallion Auto Keke Ltd (multi franchisee services) outlets “Stallion Group’s vision is to adopt would invest significantly in improv- by the end of 2020, taking the count global best practices and localise it ing stakeholders‘ interest, business to 126. The areas of focus would be to develop scalable, impactful and and livelihood. Ilorin, Yola, Warri, Benin, Yenogoa, sustainable business that is com- “Be it landmark consumer-con- Sokoto, Kebbi, Lokoja and Bauchi. mitted to improving the socio-eco- nect campaigns like the Stallion It was also disclosed at the nomic conditions of the communi- Bajaj Keke rally doing the durability launch that the company has invest- ties. Bajaj Auto, on the other hand, is drive of 5000 kilometres and touch- ed in state-of-the-art central auto a world leader in the intracity vehicle ing 28 cities, or rider-training facil- parts and service centre in Lagos to space. ities, or scholarship programmes support the distribution of genuine “Loved in 70 countries, the brand for the keke riders and mechanics, parts across the country. stands for integrity, dedication, re- the alliance of Stallion and Bajaj will Rohtagi gave more insight into the sourcefulness and determination to enable progress, improve lives and coming of the new generation Bajaj succeed and empower. With similar dominate the market,“ Luthra re- tricycles, saying “The authorised ser- brand ethos we believe that this al- marked.
47 Aviation 08:20
How Nigeria Loses N30bn Monthly due to Ban on International Flights *Loses out on $311m African airline bailout fund
–By Adeniyi Onifade lthough the federal govern- gerian aviation sector has been es were put at between 4.7 mil- ment announced the re- experiencing revenue drought lion and 5.32 million. Job losses Asumption of international as the international airspace re- for the sector were also put at flights by August 29, the Nigerian mained closed. 125,400 and 139,500. aviation industry has on a month- The losses were said to be ma- The data showed that Nigeria ly basis lost about N30 billion in jorly borne by operating local and is the second worst-hit by the re- the last five months due to the international carriers, and sundry striction in commercial flight, af- continued ban on internation- service providers, were derived ter South Africa. al flights due to the coronavirus from the $1 billion or N360 billion South Africa was estimated to pandemic. yearly average earning and about lose $3.02 billion. This was due to Recall that Minister of Aviation, five million passengers that travel passenger traffic of between 14.5 Hadi Sirika announced that the through Nigeria. million and 15.61 million passen- Abuja and Lagos airports will be Data released by the Interna- gers that were not carried. Job the pioneer airports to resume tional Air Transport Association losses were between 251,100 international flights on August (IATA), showed that the sector and 269,900. 29th, while other airports will fol- could lose as much as $990 mil- In another development Air- low suit. lion to $1.1 billion had the closure lines on the African continent However, statistics has shown stayed longer. have garnered a total of $311 that in the last five months, Ni- Already Passenger traffic loss- million bailout funds from govern-
48 Aviation 08:20 ments’ bailout funds, but conspic- tives to quarantine on arrival that implement alternatives to quaran- uously missing among the “avia- would allow economies to re-start tine measures. tion-friendly nations” is Nigeria. while avoiding the importation of “AME has the highest number Although the Federal Govern- COVID-19 cases. of countries in the world with ment has since pledged to sup- As at last week, some airlines government-imposed quarantine port the local sector with at least have expressed readiness to fly measures on arriving passengers. N27 billion in loans and grants, the Nigerian routes again, though The region is effectively in com- the sector is yet to receive the subject to the governments re- plete lockdown with the travel and pledge despite the resumption of opening of the international air- tourism sector shuttered. This is flight operations. ports and removal of the 14-day detrimental in a region where 8.6 The International Air Transport quarantine order. million people depend on aviation Association (IATA), had urged the Virgin Atlantic announced for their livelihoods,” Albakri said. federal government, to free bot- plans to restart passenger flying IATA proposes a layering of tlenecks so that urgently need- to 17 additional destinations from measures to protect public health ed financial relief pledged for air August 2020. Flights from Lagos while re-starting aviation. They transport and tourism reaches to London Heathrow started on are reducing the risk of imported the distressed businesses it is the 29th August 2020 and will cases via travellers, and discour- meant to help, and implement provide connections to a range of aging symptomatic passengers safe restart to aviation. U.S. destinations. from travelling with airlines offer- IATA, in an update on bailout The Chief Commercial Officer, ing flexibility to passengers, who progress on the African continent, Virgin Atlantic, Juha Jarvinen, has need to adjust their schedule. noted that Rwanda, Senegal, Côte stated earlier that they were mon- Also, public health risk miti- D’Ivoire, and Burkina Faso ac- itoring external conditions closely, gation measures such as health counted for a total of $311 million in particular the travel restrictions screening by governments in the in direct financial support to air many countries have in place in- form of health declarations, and transport. cluding the 14 day quarantine pol- COVID-19 testing for travelers Subsequently, a further $30 icy for travellers entering the UK. from countries perceived to be billion has been promised by Delta Air also disclosed plans “higher-risk” when accurate and some governments, internation- to add almost 1,000 flights sys- fast testing is available at scale. al finance bodies and other in- tem-wide in July, boosting ser- Economies across the AME stitutions including the African vice and nonstop connectivity to have been devastated by Development Bank, African Ex- popular summer destinations and COVID-19, and the aviation indus- port-Import Bank, African Union, major business markets. try has been especially hard-hit. and the International Monetary However, government-imposed Across the region, more than 8.6 Fund (IMF) for air transport and quarantine measures in 36 coun- million jobs in the airline industry tourism. tries across Africa and the Middle and those businesses supported However, much of the relief is East (AME) account for 40 per by aviation are at risk. Thousands yet to reach those in need due to cent of all quarantine measures of jobs have already been lost due institutional bureaucracy, com- globally. to the shutdown of air traffic. plex application and creditworthi- With over 80 per cent of travel- Also, with the gradual opening ness processes, as well as cum- lers unwilling to travel when quar- of international air flights around bersome conditions to secure antine is required, “the impact of the globe, experts fear that there finance. these measures is that countries will be low passenger inflow since remain in lockdown even if their the battle against covid-19 is not Way Forward borders are open.” yet over and many countries are To halt the huge loses by the IATA’s Regional Vice President still experiencing fresh wave of aviation sector, IATA has urged for Africa and the Middle East, infections. the Nigerian government and oth- Muhammad Albakri, said it was ers in Africa to implement alterna- critical that AME governments
Data released by the International Air Transport Association (IATA), showed that the sector could lose as much as $990 million to $1.1 billion had the closure stayed longer.
49 Property 08:20
Uproar over Proposed 6% Stamp Duty on Rents –By Danlami Nasir Isah
he directive by the Federal clarification stated that “Sched- ment to give vulnerable Nigeri- Inland Revenue Service to ule to Stamp Duties Act, the part ans palliatives, they are still look- Tlandlords requesting them on Lease, states: For every N50 ing for a way to collect from us. to collect 6% of tenancy/lease and also every fractional part of “Many businesses have folded agreement has been greeted by N50 of the rent of the year: if the up. As we are speaking, I have public condemnation and back- term is definite and doesn’t ex- friends and relatives with small lash. ceed 7 years–39 Kobo or 0.78%; businesses, but due to the lock- Although the FIRS in a clarifi- exceeds 7 years and doesn’t ex- down, they had to sell everything cation said the charge depends ceed 21 yrs–N1.50 Kobo or 3%; and buy food. on number of years a tenant has above 21 yrs– N3.00 (or 6%),” “I can assure you they don’t spent Nigerians have still con- A tenant, Musa Abdullahi who even know where to get mon- demned the decision of the Ser- condemned the decision, ac- ey and settle their next rent, let vice. cused the federal government of alone add another percentage to “Please note that Stamp Du- being insensitive to the plight of the government,” he added. ties rate on Rent/Lease is grad- Nigerians. Another businesswoman uated depending on the number He said “The federal govern- who is also a tenant in the FCT, of years in the Agreement: 1-7 ment wants to make sure they Amaka Kalu said although the years is 0.78%; above 7 years to tax Nigerians to death by all federal government are looking 21 is 3%; above 21 years is 6%. means. We are already in a se- for diverse ways of making rev- Muhammad Nami, Executive rious economic hardship which enue, the timing on stamp duty Chairman, Federal Inland Reve- was caused by the Coronavirus. collections for tenancy and lease nue Service (FIRS) who made the Instead of the federal govern- agreements was wrong.
50 Property 08:20
She said “We all know that oil a flat rate stamp duty charge at a ly said that “The Nigeria Labour revenues have dropped drasti- maximum rate of N1,000. Congress condemns the 6% cally this year due to covid-19. Wike further noted that, “Addi- stamp duty on tenancy and lease The same goes to customs reve- tional ad valorem stamp duty tax agreements in Nigeria.’ nue, so the only agency that fed- will further discourage invest- It stated, “The Nigeria Labour eral government is hoping on to ment in the real estate sector Congress rejects this new stamp get revenue is the FIRS, but the and exacerbate housing short- duty policy on rents and leases timing is very wrong. age in a country requiring about as it would worsen the deplor- “People are feeling the eco- 17 million housing units to meet able situation faced by Nigerian nomic heat which the virus has its shortfall. workers most of whom, unfortu- brought. Even we business own- “We hereby advocate a flat nately, are tenants. ers that make big profits before, rate stamp duty charge in this “It is also alarming that we are we don’t see even half of that category instruments at a maxi- having a rash of hike in taxes now so all we do is just manage mum rate of N1,000.” and user access fees when other the situation until it gets better. He said that the 1.5 per cent countries are offering palliatives “Therefore charging stamp stamp duty tax proposed in val- to their citizens.” duty on rents is not just proper at uation reports was an aberration The union called on the Fed- this time,” she further explained. since valuation reports did not eral Government and the FIRS Kalu urged President Muham- fall within the definition of prop- to rescind “this harsh fiscal mea- madu Buhari to direct the FIRS to erty instrument to be subject to sure as it is boldly insensitive to withdraw the decision in view of stamp duty or any tax. the material condition of Nigeri- the current economic situation. The NIESV boss added that ans which has been compound- In the same vein, the Nigerian the ad valorem rate on tenancy ed by the COVID-19 health insur- Institution of Estate Surveyors and lease agreements and deeds gency.” and Valuers has expressed dis- as applied across board was ul- Wabba said nobody would appointment over the imposition tra vires. want to be a tenant if they had of stamp duties ranging from Wike demanded the reverse an alternative, adding that ten- 0.78 per cent to six per cent of of the stamp duty tax regime, ants, which this new policy was the value of rents and leases by noting that what was required of targeting were some of the most the Federal Government. government were incentives, tax vulnerable people in the society. The President, NIESV, Emman- cuts and tax holidays, not bur- He noted, “It would be illog- uel Wike, said that “While proper- densome taxes. ical, insensitive and inhumane ty is universally acknowledged Similarly, the Nigeria Labour to churn out laws that make our as a veritable vehicle of recovery Congress has opposed the six poor go to bed at night with tears from recession, albeit economic per cent stamp duty fee for every in their eyes. depression, it is a gross anathe- tenancy and leases agreement “The principle of public taxa- ma to introduce a tax regime that stipulated by the Federal Inland tion, especially progressive tax- will frustrate land and property Revenue Service. ation all over the world is that transactions and development,” It described the new tax as a the rich subsidises for the poor. He noted the 1.5 per cent ad financial burden on poor Nige- Every tax policy that would be valorem charges on Deeds, Pow- rians at a time they were facing enforceable must create a safety er of Attorney and Memorandum socio-economic pressure arising net for the poor. Recent policies of Understanding documents from the COVID-19 pandemic. of government indicate other- would stifle investments in hous- The NLC President, Ayuba wise.” ing and real estate and called for Wabba in a statement recent-
The principle of public taxation, especially progres- sive taxation all over the world is that the rich subsidises for the poor. Every tax policy that would be enforceable must create a safety net for the poor. Recent policies of government indicate otherwise.”
51 Market Arena 08:20 VALUECHAIN EXCHANGE & COMMODITY UPDATES AS AT 25TH AUGUST 2020
–Compiled By Favour C. Nrabulu
CRUDE OIL PER BARREL PRICE ($) EXCHANGE RATES PRICE (N) Official Rate Buy/Sell WTI Crude 42.64 GBP 498 / 499 Brent Crude 44.65 Euro 449 / 450 Nigeria (Bonny Light) 43.12 USD 379.5 / 380 Brass River 44.98 Parallel Market Qua Iboe 44.98 GBP 600/611 Euro 543/552 Arabia Light 45.20 USD 472/477
PETROLEUM PRODUCTS PER PRICE (N) PRECIOUS STONES PRICE (N) PER GRAM LITER Diamonds 1,690,875 Diesel 199 - 224 24 karat gold 24,207 PMS 145 - 150 Silver 332
The following are the average price of land in the following districts in Abuja
LAND PRICE (N) PER PLOT Jahi (Abuja) 45,000,000 Dawaki (abuja) 18,000,000 Gwarinpa 50,000,000 10 Hectares of Land in Gwagwalada 25,000,000 -150,000,000 Office space per square meter/annum 25,000 – 35,000
FOOD COMMODITIES PRICE (N) Bag of Rice (foreign) 24,000 – 27,000 Bag of Rice (local) 17,500 – 23,000 100kg Bag of Beans (white) 20,000 – 30,000 100kg Bag of Beans (brown) 18,000 – 27,000 100kg Bag of Maize 9,000 – 24,000 Basket of Tomatoes 5,000 – 18,000 100kg Onions 10,000 – 29,000 25 litres of Vegetable Oil 18,000 – 23,000 25 litres of Palm Oil 7,000 – 13,000 A kilo of Beef 1,500 – 2,100 A Tuber of Yam 350 – 900
It is important to note that the above prices of foodstuff is the average found in Nigerian markets. However, from our analysis, most commodities such as rice, beans, onions, tomatoes and meat are much more cheaper in the North especially Kaduna and Benue states, while commodities like palm oil are cheaper in the Eastern part of the country.
52 Sports 08:20 Tokyo 2020 Olympics: Flame to be Displayed in Public next Month
–By Saidu Abubakar
The Olympic flame in a lantern is seen after the ‘’One Step Forward - +1 Message - TOKYO 2020’’ video message unveiling event at Olympic Stadium in Tokyo, Japan, July 23, 2020. PHOTO: BBC
he Olympic flame will go of Japan after the decision to which is near the National Sta- on display at the Japanese postpone the Games in March dium purposely built for the TOlympic Museum from due to the coronavirus pandem- Games. Sept. 1, the Japanese Olympic ic. To limit crowds gathering to Committee (JOC) announced With the Olympics postponed view the flame there will be a recently. until 2021, organisers had been reservation system with a des- The flame was last seen in discussing how best to store ignated date and time. Fukushima after the torch relay and present the Olympic flame There will also be a one-way was cancelled following its ar- whilst in Japan. viewing route to avoid unneces- rival from Greece but before it They have chosen to display sary contact between members could start on the planned tour the flame at the JOC museum of the public.
53 Sports 08:20
Yoshihide Kiryu (second from left) wins the men’s 100m final to conclude the Seiko Golden Grand Prix at Tokyo’s National Stadium recently. PHOTO: BBC
The flame will be on display nouncers filled the air. of details, including how many from Sept. 1 - Nov. 1. The jumpers however had no spectators will be allowed into Neither the JOC nor Tokyo spectators to ask for slow hand- venues. 2020 organisers have said claps to find their rhythm as Many athletes voiced frus- where the flame will be located they sped down the runway. tration about the postponing of after that. Sprinters likewise rushed to the Olympics and the difficulty the finish line but there were of training during the pandemic, ...Centerpiece venue put no cheers of excited fans and which closed many tracks and through paces in debut track no collective sighs greeted the prevented group practices. meet failed jumps of the pole vaulters. “I am turning 32 years old Japan’s top athletes put To- A handful of male javelin and, when thinking about my kyo’s new Olympic stadium throwers took matters into their age, I was very, very disappoint- through its paces at a track own hands and offered slow ed (by the delay). I was perform- meet Sunday, 23 August, 2020, claps in unison for each other ing particularly well so it made one year ahead of the Games as they took their turns. it even more difficult for me to which have been postponed due The event was held as Japan change my mindset and move to the coronavirus pandemic. takes cautious steps to reopen on,” said Yukari Ishizawa, who The televised competition its economy, with professional took second place in the wom- was held behind closed doors, baseball, football and sumo al- en’s 3,000m steeplechase. with only athletes and a few lowing limited number of fans “Even when I was practicing, I hundred journalists and officials since early July. could not tell what all this prac- in attendance at the 60,000- But the nation is also seeing tice was leading to,” she said. seat facility, which is still under- a rebound in new infection fig- “I finally realized that I was going construction work on its ures, particularly in urban areas fortunate to have the opportuni- exterior. including Tokyo and Osaka. ty to push myself to take on this High jumpers got the Seiko Organizers have announced challenge” of trying to qualify for Golden Grand Prix meet under- the Tokyo Games will take place the Olympics, she added. way as up-tempo music and from July to August next year the lively voices of stadium an- but have yet to decide a number
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