By Muyiwa Lucas

 

Royal Dutch Shell Plc’s head expects clean energy to make up half of the company’s energy mix “somewhere in the next decade.”

Like its European peers, the Anglo-Dutch major has set itself an “ambition” to become a net-zero emissions energy company by the middle of this century. The feat involves producing less oil, more gas and renewables, as well as using technologies still in their infancy like hydrogen and carbon sequestration.

“If we do not make that type of process by the middle of next decade, we have a problem not just as a company but as a society,” Chief Executive Officer Ben van Beurden said in an interview with AXIOS on HBO.

Not everyone is convinced, with the energy giant set to clash with some shareholders on the matter at its annual general meeting later this month.

“If you want to get rid of hydrocarbons in the mix, you have to do something about the use of it, not the production of it,” van Beurden said.

Speaking on the challenges of the transition, the 63-year-old Dutchman also said that people want to see results straightaway, but “don’t expect that tomorrow we will stop selling diesel to trucks.”

While Van Beurden welcomed the U.S. rejoining the Paris Climate Agreement, which seeks to limit global warming temperature increases to less than 2 degrees Celsius from pre-industrial levels, he questioned other policies.

“What I also see is that the government is flirting with popular ideas that are clear, simple, and wrong, which is, ‘Let’s ban the production of oil and gas in our country.’”

Van Beurden has previously criticized U.S. President Joe Biden’s policy to ban drilling on federal land, saying such restrictions will simply result in boosting oil imports.

“Popular demand may well push you in the direction, but it is not smart policy.”

“We will focus on the demand side, and then the supply side is a resultant of that,” he said.

 

By Muyiwa Lucas

 

 

Determined to ensure that power is provided at constant, acceptable voltage, current, and frequency, APC by Schneider Electric has added new features to three of its Uninterrupted Power Supply (UPS), to enrich customers’ experience.

Interrupted power supply is a common problem in Nigeria.  Also, common are power surge, which is a temporary increase in voltage on a power line, usually 10 per cent to 35 per cent above normal voltage and can last between a few milliseconds to several minutes; and spikes which is a dramatic increase in Voltage lasting less than 3 nanoseconds.

Surges, short-term increases in voltage levels associated with lightning or utility problems, can travel along utility and data lines damaging electronic devices and destroying valuable data.  It can also degrade the performance of electronics and shorten their lifespan. But with APC Back-UPS, Line Interactive UPS, and On-Line UPS, electronics, and devices are protected.

According to the Sales Manager, Oluwaseun Oloyede, the APC Back-UPS is applicable for a home environment, especially for basic appliances like personal computer, projector, television, security camera, and home automation systems.

Unlike the Back-UPS, the Line Interactive APC Easy UPS and Smart UPS is a business power UPS. It is designed for critical application such as servers, Automated Teller Machine (ATM) — company’s ATM. In other words, it is for critical business devices. It comes in series, which include Easy UPS SMV, Smart UPS SMC, SMT, and SMX.

Similarly, APC Easy UPS SRV and Smart UPS SRT/SRTG Online series are designed for a harsh power environment, especially on a critical mission equipment like medical equipment, servers, and storage devices.

“This time around, we are starting from the entry-level. We are increasing the capacity, giving more power and voltage range, adding features for customers to interact with the UPS, and helping them to be able to get value for their money. Our UPS comes with two years warranty standard, but this time around, they get value much more for money, more power at a cheaper price,” Oloyede said.

He further explained that with the Switch Outlet Group, which both the Line Interactive Smart UPS and Online UPS come with,  and the Smart Slots that allow for network management card to be used on the USP, the UPS attends to the specific individual needs of a customer at every point in time.

On the lifespan of the UPS, Oloyede said that it is designed to last for a minimum of 6-8years, adding that depending on the usage, the battery is supposed to last for close to 3-5 years. However, if it runs down in two years, the company will give the customer a replacement.

 

By Muyiwa Lucas

 

Labacorp Energy, a Cameroonian company, has announced that it will open a new solar academy in Kenya to support the government objectives towards a sustainable source of power in the country’s energy sector by grooming more solar skilled workers.

Labacorp will work with its joint venture partner, Mission Excellence Kenya, to establish the solar academy in the country’s capital city in Nairobi. The project will be completed within the year 2021, with development plans to expand the solar academy across emerging and frontier solar markets in the African continent.

Kenya, with one of the most developed power sectors in sub-Saharan Africa, opened its market to Independent Power Producers (IPPs) in the mid-1990s. Kenya benefits from factors including an active private sector; Kenya Power’s long track record as a credit-worthy off-taker; and abundant renewable energy resources, especially geothermal, wind and solar.

Limited and ageing distribution infrastructure, high technical and commercial losses, opaque procurement processes, right of way disputes, PPA inconsistencies, and other challenges affect sector growth.

Labacorp Energy CEO, Bako Ambianda, said the Solar Academy will offer three programmes — Basic Solar Training, Advance Solar Training, and Solar Entrepreneurship Training to further enhance the growth and development of Kenya’s energy sector.

In his words, “We strive to support the objectives for the growth of Kenya’s solar power sector, as our solar training add dramatically to the growing trend of solar energy, create jobs, build entrepreneurs, and boost local economies.

“Solar power is now economically viable across most countries around the world, thanks to several factors, notably falling cost of solar panels, the rising cost of fuels used in conventional power generation, and excellent fit to demand patterns.

“We also have a network of professional licensed solar instructors from the U.S, Canada, U.K., Germany, Turkey, India, and France. The academy will be equipped with interactive training simulation tools for solar installers, trainers, solar employees, and solar entrepreneurs, among others.”

Labacorp Solar Academy (LSA) is a professional solar training institution that provides online and on-site solar training courses and certification. Through our programs, we help create more demand for solar energy, increase solar jobs, train, and mentor solar entrepreneurs, improve workforce productivity and groom more solar skilled workers, technicians, and engineers.

By Muyiwa Lucas

 

The Chairman of Petroleum Technology Association of Nigeria (PETAN), Mr. Nicolas Odinuwe, has said strategic regulatory frameworks and creating an enabling environment that will encourage private-public sector partnership will unlock the untapped potentials in Nigeria’s gas reserves.

This statement is in line with PETAN’s readiness to host the 5th edition of the Sub-Saharan Africa International Petroleum Summit (SAIPEC), scheduled to hold virtually from May 19 to 21, 2021.

It will feature a spotlight session on “Sub-Saharan Africa’s gas industry, gas monetisation and the importance of LNG and gas to power projects”, with an extensive discussion on Nigeria Decade of Gas initiative launched by President Muhammadu Buhari.

To actualise the objectives of the Decade of Gas transforming Nigeria towards a gas-powered economy by 2030, Odinuwe highlighted some key recommendations that would pave the way for a successful gas utilisation as well as unlocking the untapped potentials in Nigeria’s gas reserves which comprises concepts such as gas-to-people, gas-to-power and gas-to-industry.

His words: “On gas-to-people, for a successful all-round transition from oil to gas, Nigeria needs to Boost Investor Confidence in the sector. We are all aware of the bottlenecks such as an insufficient regulatory framework in the industry which stakeholders are optimistic that the PIB when passed, will address.

“We also need enhanced private-sector participation which can be enhanced through minimised taxes and royalties on oil and gas by the government. Although recovery policies are already in place and show commitment to enabling potential in the future, we are hoping that new ones will create the enabling environment that will encourage private-public partnerships needed to drive home the gas expansion initiative.

“The Investor-Exporter Foreign Exchange window needs to be widened. Homegrown innovations hold the key to unlocking our untapped potential in gas as well as in industries outside the oil sector, so we know that we need to develop strategies to reform and implement a market-based and cost-effective gas distribution.

“On gas-to-power, we already have the Nigeria Gas Transportation Network Code (NGTNC) developed by the Ministry of Petroleum Resources, developed to deepen the growth of the domestic gas market and support export projects.

“There is also the Nigerian Gas Flare Commercialisation Program (NGFCP) to improve gas-to-power, grow gas-based industries, domestic Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) penetration to unleash potentials of accelerated growth and stimulate investment opportunities and national economic development.

“For ease of operating the NGFCP, the Department of Petroleum Resources (DPR) established a Network Code Electronic Licensing and Administration System (NCELAS) portal to process all licenses required for operating gas transport arrangements and administration of all regulatory roles required for the optimal performance of the Network Code.

“On gas-to-industry, we have the Ministry of Petroleum Resources, NNPC, NCDMB, NLNG  and private investors forging collaborations to establish modular refineries, rehabilitate existing ones, activate CNG refill stations for integration of LPG, LNG and CNG to be dispensed to motorists in the country to promote gas as a cleaner, cheaper and more environmentally friendly replacement fuel to premium motor spirit (PMS), kerosene and automotive gas oil in the long run as well as conserve foreign exchange expended on imported fuel.

“An area that excites us at PETAN, is the adoption of LPG Cylinder Recirculation Model (CRM) to increase LPG penetration. Reason being that as predominantly technical partners in the industry, the issue of safety is a huge concern to us as it is for the majority of Nigerians who are apathetic toward this transition of adopting LPG as domestic fuel.

“We, therefore, laud the exchange system whereby marketers deliver and retrieve cylinders for refurbishment and maintenance to enhance safety and availability at the least possible cost.

“PETAN is an active participant in the Nigerian gas value chain where its member companies have developed the technical expertise in areas such as AUTOGAS, and training engineers in the skill of installing auto conversion kits in existing vehicles to make them bio-fuel compliant as well as setting up of micro-distribution centres and micro foundries in the country under the domestic LPG programme.”

By Musa Liman Kwande

It is observed that the decision of the Nigerian Ports Authority (NPA) to sanction the Lagos Deep Offshore Logistics (LADOL) via a letter dated November 14, 2019 and addressed to the Managing Director of Messrs.

Global Resources Management Limited (GRML), the parent company of LADOL, has continued to attract commendation by various stakeholders in the maritime sector, as well as the oil and gas industry.

The letter accused LADOL of violating the terms of the lease and shortchanging the Federal Government. NPA, however, granted a fresh lease under new terms to LADOL for 5.7574 hectares of developed land and 69, 2874 hectares of undeveloped land

The NPA’s action was highly celebrated by operators in the media, including, The Nation, Daily Trust, THISDAY, The Guardian, Vanguard, Leadership and other major print and online platforms.

However, LADOL had contested the revocation, claiming that it got a presidential approval in 2018 for the extension of its land lease contract for 25 years.

But analysts have pooh-poohed LADOL’s argument, saying that even if it indeed got such presidential approval, it was not a free pass or a waiver that should exempt it from abiding by the terms of the land lease agreement as a lessee.

It was gathered that the company was quickly reminded that irrespective of the 25-year extension, it must respect the terms of the agreement it signed with the NPA, which clearly stipulates that in the event of default, the agreement will automatically be revoked, which was what the NPA invoked.

Having subleased part of the land to a third party, it was clearly mandatory for LADOL to have submitted the full sublease agreement contract it had signed with the third party to the NPA in order to receive the final written approval from NPA for the sublease of the land.

But instead of following the clear procedure, LADOL was accused by the NPA of failing to receive the final approval after receiving only a preliminary approval from NPA.

LADOL was accused of failing to disclose the terms of the agreement with the third party, and was said to have incorrectly stated the usage of the land and also provided insufficient information on the sublease agreement.

For four years, NPA took the peaceful remedial steps by advising LADOL to submit a complete sublease agreement signed with its new tenant but the advice was continuously ignored.

NPA consequently had no other choice but to automatically terminate the contract with LADOL in 2019 for proven violations in accordance with its right as the Lessor in the Head-Lease Agreement with LADOL.

NPA then signed a direct lease contract with LADOL for the 5.7Ha of developed land plus 69 Ha of undeveloped land, excluding 11.2Ha of land where the SHI-MCI yard is located. This portion was then directly leased to foreign investor, who invested and developed the SHI-MCI fabrication yard. This yard has since transformed Nigeria into the FPSO Hub of Africa, and created opportunities through job creation and skill transfer, among others.

NPA’s action was in accordance with Section 23(2) of the NPA Act, which empowers it to revoke any lease over any land vested in it, whether or not the lease is granted with the approval of the President and whether or not the lease is more than five years.

So, it was obvious that NPA’s decision, as stated, was not a violation of law but was well within the law.

Many analysts believe the NPA acted within its regulatory powers.

They argued that LADOL should have itself to blame for signing sublease agreement with another entity without a written, complete approval from NPA, which is the landlord of the free zone.

This violation of the terms of contract was an invitation to automatic termination of the contract.

NPA has also argued that LADOL did not fulfill the essential requirements of a valid lease and the survey plan purporting to describe its location, premises and dimensions.

NPA was of the view that LADOL refused to disclose the terms of the sublease because of the exorbitant sublease charges it slammed on investors.

According to NPA, LADOL charged an exorbitant sublease charges for five years on the land it leased from NPA, which was said to be 70 times above the market price of such bare land.

Analysts have suggested that the exorbitant charges slammed on the foreign investor by LADOL were due to its inability to raise funds for the equity holdings for a joint venture asset in the zone.

Going by NPA’s analysis, LADOL was able to secure 30 per cent share of West Africa’s most advanced fabrication and integration yard worth over $300million without paying a single Kobo for investment.

When the NNPC stepped in to mediate in 2014, LADOL lowered its equity of SHI-MCI to 30 per cent but was still unable to meet financial requirements regardless.

It eventually forced the foreign investor to make advance payment of the five years in advance of sublease fee totaling $45million, which enabled it to pay for the 30 per cent equity of the company.

In other not to delay the project being executed, the investor had no other option than to pay.

Government agencies have argued that the $45 million sublease fee was eight times higher than the initially agreed fee.

After the settlement, the parties were encouraged to withdraw all legal proceedings including arbitration in London with a strong commitment that there would be no future litigation.

Again, LADOL has also been accused of ignoring NEPZA’s directive to issue operating licence to a foreign investor since 2018 with the intention to frustrate and drive it out of Nigeria for good.

NEPZA had directed that LADOL should immediately issue an operating licence to a foreign investor for the joint venture but this too was ignored.

Eventually, NEPZA issued notice of modalities on December 11, 2020 notifying that it will take over the management of SHI-MCI for unhindered operation until the two entities resolve the issues.

LADOL refused and came up with a fresh plot to drive the foreign investor out of the free zone and Nigeria, by making groundless portrayal of the foreign investor as a contractor and not an investor.

It is important to note that LADOL had indeed carried out its plot against the foreign investor as it had unilaterally terminated Service Agreement with the foreign investor just barely one day after it terminated the Sublease Agreement, finally blocking the foreign investor from entry into the site.

The Courts granted a Status Quo order in 2018 to the foreign Investor giving them full access but this was never revealed by LADOL to the authorities.

So, analysts are of the view that the Presidential decision around the same time in 2018 to extend the lease for 25 years would have been impacted if LADOL had come clean.

LADOL had also intentionally distorted the Nigerian Oil and Gas Industry Content Development (NOGICD) Act by self-interpreting and misrepresenting it to their advantage.

LADOL was said to have wrongly argued that the NOGICD Act prohibits foreign- owned companies from being the majority shareholder of joint venture companies.

It then begs the question as to LADOL’s own claim of being Nigerian.

Having been put together in the Virgin Islands, its ownership and shareholding resembles nothing indigenous or local.

Also, having exploited the loopholes and benefitted handsomely, LADOL has continued to be owned by SABLE OFFSHORE and ALSBA Ventures.

Despite LADOL’s arguments, there are no regulations under the NOGICD Act restricting the shareholding percentage when establishing joint ventures with foreign investments. The Local Content Act only refers to man-hours done in Nigerian by local companies. The percentage is determined by the Nigerian Content Development and Monitoring Board (NCDMB) at the commencement of any project.

Due to LADOL’s continuous war with foreign investors, investors in the zone have wasted four years out of eight years in 10 legal proceedings since signing the first shareholders’ agreement in 2013.

The second arbitration in London is also in progress and an incalculable time and money have been wasted in unproductive dispute resolution.

To prevent any disputes such as this from occurring again and to fundamentally resolve it, it will be necessary for the parties to hear the decision of the international court of arbitration and respect and follow the decision without further litigations.

It is truly worrisome to see that a company such as LADOL always trying to hoodwink the President and the Public with false assertions instead of fulfilling its duty of developing the free zone and sustaining a healthy relationship with foreign investors in the free zone.

Presidency must also actively intervene and put an effort to resolve the fundamental problems to restore trust to existing and potential foreign investors in Nigeria.

• Kwande, who is Baraden Lafiya, and immediate past Chairman of Arewa Consultative Forum (ACF), writes from Abuja

The Nigerian Agip Oil Company (NAOC) on Wednesday confirmed an oil leak from its Idu oilfields at Egbebiri settlement within Biseni in Yenagoa Local Government Area in Bayelsa, resulting in its shutdown.

The cause of the leakage, according to the Joint Investigative Visit (JIV) report on the incident sighted by the News Agency of Nigeria (NAN), is traced to equipment failure due to a rupture at the wellhead.

In a response statement made available to NAN, Eni, the parent company of NAOC, said the facility was shut down to prevent further damage to the environment.

The statement made available by an Eni Spokesperson on behalf of the Italian Energy firm reads: “As soon as the incident was reported, we activated our oil spill response, shut in the well and notified government regulatory agencies.

“The Joint Investigation Visit (JIV) was carried out on 09/05/2021, with the participation of community representatives and the government regulatory agencies.

“The event occurred within the Company’s wellhead location which is paved and walled round. There is no significant third-party impact,” Eni stated.

However, an environmental rights group, Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) said that the incident which discharged crude and associated gas had severely polluted the environment.

The Non-Governmental Organisation said that a visit to the spill site showed pictorial evidence of the crude spreading beyond NAOC’s right of way as nearby vegetation were withered as a result of the crude impact.

According to a field report on the spill incident signed by Mr Alagoa Morris, Head of Field Operations at ERA/FoEN, the Idu fields was notorious for frequent spills caused by equipment failure.

“The people of Egbebiri in Biseni kingdom have experienced several oil spills over the years. And all the oil spill incidents documented by the Environmental Rights Action/ Friends of the Earth Nigeria (ERA/FoEN) in this community environment have occurred as a result of equipment failure and on Wellheads.

“ERA/FoEN has had cause to visit the environment of Idu Well 5 and 11 located within the same place in the past and it has always been Idu Well 11 spewing crude oil into the environment.

“Available records from ERA/FoEN indicate that there has been previous oil spills from this particular Idu Well 11 operated by Agip.

READ ALSO: Oil Spills: Reps demand environmental justice, welfare of host communities

“Before concluding this Field Report, ERA/FoEN confirmed that Joint Investigation Visit (JIV) was carried out on Sunday, 9th May, 2021.

“This is why the official Spill Reference No 2021/LAR/028/058 is indicated in this report; sourced from the JIV report. Cause of spill was attributed to equipment failure,” ERA/FoEN stated.

The report quoted a resident of the community simply identified as Georgie as saying that the spill incident of May 7 spilled oil from around 10 p.m till about 8 a.m the next day before the leak was stopped.

According to ERA/FoEN, the residents said that the level of damage was enormous.

“You can see the level of damage all over, we don’t know what to do. But for now, we are calling on relevant agencies to ensure that prompt action is taken so as to prevent the spill from spreading to the water bodies in the environment. You can see all the trees are changing colours.

“So, I am calling on Agip, the Federal and State Governments to come to our aid,” ERA/FoEN quoted a resident appealing. (NAN)

Our Reporter

The Nigerian Content Development and Monitoring Board (NCDMB) is set to host the maiden edition of the African Local Content roundtable.

The roundtable is to institutionalise peer review mechanism among African oil-producing countries on local content as a key development imperative for domestication and sustainable growth of Africa’s hydrocarbon resources.

The organisers, in a statement on Tuesday, noted over the years, critical stakeholders in the oil and gas sector in Africa have been fascinated by the remarkable impact and achievements of Nigeria in the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the development of its hydrocarbon resources which is anchored on the philosophy of In-Country Value Addition.

It stated that African countries such as Uganda, Ghana, Niger Republic, Congo have at various times undertook a study tour to institutions in Nigeria, to understand the Nigerian Content delivery model, with some of the countries signing their own local content laws or policies based on insights from Nigeria.

It added that the African Petroleum Producers Organization (APPO) charter on bilateral cooperation among African oil-producing countries is also a bold step to galvanize African countries towards regional cooperation in the area of developing capacities and capabilities to deliver oil and gas services within the continent.

“The proposed annual African Local Content Roundtable will herald the creation of a structured engagement platform among African countries to discuss local content and sustainability in hydrocarbon development.

READ ALSO: NCDMB: no to 100 per cent local content

“Promote the conversation among policymakers on the role of local content as a key economic development imperative for African oil-producing countries, lay a solid foundation for the design of an African local content programme, and share data on capacities that exist around skills, infrastructure, facilities, assets and funding for exploration, field development and production activities,” it noted.

The event scheduled to hold in Yenagoa, the Bayelsa State Capital, will host several dignitaries and policy leaders in the oil and gas, government, development agencies, and related sectors connected to the oil and gas sector.

Some of the expected guests include the chairperson of the African Union Commission, the Secretary-General of the Africa Continental Free Trade Agreement (SG, AfCFTA), and heads of Africa Development Organisations.

The two-day event will be hosted at NCBMB Towers, Yenagoa, Bayelsa State on June 3-4.
to the 4th of June 2021.

According to the organisers, the dates have been strategically picked close to Nigeria International Petroleum Summit (NIPS 2021) to manage the logistics of participants who will be attending NIPS 2021 from 6th to 10th June 2021.

On assumption of office on May 29, 2015, President Muhammadu Buhari had hit the ground running in a global campaign to attract local and international investors.

In his efforts to make Nigeria a preferred investment destination, President Buhari initiated a raft of measures to improve Nigeria’s ease of doing business ranking by the World Bank.

His efforts paid off in 2017 when Nigeria moved up 24 places and was also listed among the top 10 reforming economies in the world.

More gains were also recorded in subsequent years as the country moved up by 24 points from 169th position on the 2017 ranking and also 170th position on the 2016 ranking to 145 in the World Bank’s 2018 report.

The World Bank had also named Nigeria one of the top-20 improvers in doing business out of 190 countries.

However, as President Buhari’s government showed increasing commitment to encourage investments, some local players that loathe competition have continuously frustrated these efforts through unending hostilities towards local and foreign investors and partners.

For instance, the unending wars waged on foreign investors at the Lagos Deep Offshore Logistics (LADOL) base in Lagos are strong indications of the lack of capacity of the free zone manager to manage the zone.

LADOL’s reputation of non-tolerance of fair and healthy competition is said to be the driving force behind its series of attacks on foreign investors operating in the zone, which forced a US company to exit Nigeria.

The management company of the LADOL free zone has been accused of effectively deploying lockouts, cancellation of operating license, excessive charges and frivolous litigations as tools to frustrate investors out of the zone.

There were media reports that the NPA, which is the landlord of the free zone, was investigating an allegation that the free zone manager (LADOL) had neither informed nor obtained an official approval for the additional 30 hectares of sand-filled area from the landlord.

Federal Government agencies were also said to be investigating the legality of its jetty, following an allegation that it was not dully licensed.

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Analysts have raised concern that even if the allegation of expanding the land turns out to be true, it will serve no useful purpose, except that it has added to the empty fallow lands grabbed by LADOL with no prospects of hosting investments because of its hostility to potential and actual investors.

The zone manager’s inability to operate a free zone was manifested in its lack of capacity to attract foreign investors who will invest in the disused, empty swamp.

For more than 20 years of operating the free zone, only 6 hectares was able to host tangible investments out of 76 hectares, while the rest remains largely empty land.

Other investments for which LADOL has claimed to have spent millions of dollars are only visible on the pages of newspapers, and not at the free zone.

It once claimed that the Nigerian Content Development and Monitoring Board (NCDMB) supported it with $25million from the Nigerian Content Fund, while the Central Bank of Nigeria (CBN) supported it with N6.09billion facility. It was not clear what the loans were meant for.

The free zone manager, rather than build partnerships and alliances to attract investors, has focused on signing memorandum of understanding (MoUs) with portfolio investors, while engaging reputable and credible investors in unnecessary fights and litigations.

LADOL’s lack of capacity to attract investors has denied the Federal Government huge revenues and also defeated government’s objectives of creating free zones to boost investments, create job opportunities and improve the economy.

Its alleged violation of the terms of the lease did not go unnoticed as the NPA wielded the big stick in 2019 by revoking its lease as widely reported by THISDAY, The Guardian, Vanguard, The Nation, Daily Trust, Leadership and other major print and online platforms.

As part of her audacious reform to sanitize the areas under her supervision and reposition Nigeria to attract foreign investors, the NPA Managing Director, Ms. Hadiza Bala-Usman had defied political pressure and revoked the lease via a letter dated November 14, 2019 and addressed to the Managing Director of Messrs. Global Resources Management Limited (GRML), the parent company of LADOL.

The letter accused LADOL of violating the terms of the lease and shortchanging the Federal Government.

NPA, however, granted a fresh lease under new terms to LADOL for 5.7574 hectares of developed land and 69, 2874 hectares of undeveloped land.

Analysts, as well as foreign and local investors, including the international oil companies (IOCs), had heaved a sigh of relief by NPA’s actions and hailed Hadiza Bala-Usman for mustering the political will to do the needful.

It was believed that NPA’s action would send strong signals to other free zone operators that holding a free zone licence does not just amount to grabbing several hectares of government land but bringing investors to develop the land.

LADOL’S continued stranglehold on several hectares of land at Tarkwa Bay in Lagos has been widely condemned because it has hampered the Federal Government’s efforts to attract investors to the free zone.

There was shock and panic among investors when LADOL in its characteristic use of political maneuvers to intimidate foreign investors, claimed in a media report that its lease had been restored via a presidential directive.

However, the oil and gas industry, as well as maritime industry operators were consoled by the fact that it failed to produce the said presidential directive duly signed by President Buhari.

Being a leader with strong reputation for his uncompromising adherence to the rule of law and due process, President Buhari does not encourage political interference in the functions of not only the NPA but also other regulators such as the Central Bank of Nigeria (CBN), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Communications Commission (NCC), Department of Petroleum Resources (DPR), among others.

It is expected that President Buhari would continue to protect these regulators from influence peddlers and their friends who are close to the corridors of power.

Watchers of the unfolding events at the LADOL free zone have pointed out that the use of political machinations to intimidate reputable foreign investors under the guise of protecting a portfolio local investor who is not even committed to actual investments would amount to sabotaging the Nigerian economy.

Operators have experienced relief that the NPA did not allow itself to be cowed and ridiculed by the so-called presidential directive since it acted within the limits of its regulatory powers.

It is becoming increasingly evident to both the NPA and other analysts that the promoters of LADOL did not have any previous track record in the management of free zones.

It merely used their powerful contacts in the Peoples Democratic Party (PDP)-led government to obtain the license from the previous managements of NPA.

To divert attention from its deficiencies, it has deployed its connections in the All Progressives Congress (APC)-led administration to frustrate investors.

President Buhari should not allow investors to mix politics with business.

By Ambrose Nnaji

Lagos Governor Babajide Sanwo-Olu has extolled Total Exploration and Production (EP), Nigeria National Petroleum Corporation (NNPC) and their partners, Sapetro, CNOOC and Prime for donation of a medical oxygen plant to the state.

The Governor expressed excitement at the facility, which has the capacity to produce a hundred bottles of oxygen per day, noting it was the biggest of such plant to be commissioned in the State.

The facility, which was commissioned by Sanwo-Olu, is sited at the Gbagada General Hospital, Gbagada, Lagos State.

“I also want to commend Total/NNPC and their partners for putting together this Oxygen plant here. I have been informed that this facility has the capacity to produce a hundred bottles of oxygen per day, it is much bigger than the one commissioned earlier on. Total and its partners deserve a round of applause.

“I want to put it on record that we continue to acknowledge all the various support that we have received from Total. I am aware that at the height of the Covid-19, when we were high on the storm, a lot of resources were also supplied and donated by Total Nigeria; both PLC and Total Upstream. Thank you very much,” Sanwo-Olu said at the handover of the plant.

Managing Director, Total Upstream Companies in Nigeria, Mr. Mike Sangster, who was represented by the Deputy Managing Director, Deep Water, Mr. Victor Bandele, highlighted why Total and its partners embarked on the project.

READ ALSO: Lagos to inaugurate new oxygen plant soon

“The Covid-19 pandemic simply made an already bad situation much worse. As the number of cases spiked with Lagos as epicenter, we decided that building and donating a medical oxygen plant would not only help improve the state’s capacity to care for Covid-19 patients but could further strengthen Lagos’s ability to manage other conditions associated with oxygen deficiency.

“So, in collaboration with the Lagos Ministry of Health and our partners- NNPC, CNOOC, SAPETRO, and PRIME 130, we decided to build and donate this medical oxygen plant to help meet some of our medical oxygen needs in the state. We believe that this facility would be useful even beyond the COVID-19 pandemic,” Sangster said.

Group General Manager NAPIMS, who was represented by the General Manager Services, Mr. Yunusa Yahaya Jibril, said the NNPC had brought together all stakeholders in the industry to collaborate in the fight against the pandemic with the country as a constituency not just operational areas of the oil companies, in the fight against the pandemic.

He urged the custodians of the oxygen plant to maximise the use of the facility for the benefit of the people.