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Category: Energy

Meters, meters all the way

The Meter Asset Provider (MAP) Regulation Number NERC/R/112, which became effective on April 3, 2018, introduces meter asset providers as a new set of service providers in the country’s electricity supply industry. Now, under the National Mass Metering Programme, Distribution Companies are set to begin the metering of consumers across the country. Can electricity consumers heave a sigh of relief? MUYIWA LUCAS writes.

The joy of Lanre Ogunye, a resident in Akute, Ifo Local Government Area, Ogun State, knew no bounds when his pre-paid meter was installed in his house. For him, it was a dream come true after over nine months of waiting for same.

But more joyous for him was the fact that he would be liberated from the shackles of the oppressive estimated billing. “It was freedom at last for me when I got the meter. I had suffered seriously from the yoke of estimated billing from my electricity provider. Now I can plan my electricity consumption and be sure that I am paying for exactly what I am consuming,” Ogunye said.

Indeed, the several millions of electricity consumers in the country may now heave a sigh of relief. This is on the heels of the announcement of meter roll out by various electricity Distribution Companies in the country.

Blazing the trail last week, New Hampshire Metering Services Limited, a subsidiary of New Hampshire Capital Limited, announced immediate plans to roll-out over 404,000 smart prepaid meters for Ikeja and Ibadan Electricity Distribution Companies under the MAP scheme.

The General Manager, Operations, New Hampshire, Mr. Isaac Omoyeni, revealed that the company is providing metering services in Ikorodu and Epe in Lagos State under the Ikeja DisCo (IE) franchise area, while it is providing metering services in Ilorin, Oyo, and Ogbomosho under the Ibadan DisCo franchise area.

He stated that the company entered into long term metering services contracts with both DisCos to finance, procure, install and manage prepaid meter assets and also ensure the provision of prompt metering services to electricity customers in both Discos.

Omoyeni further stated that the meter roll-out programme by the company, which began in 2019, would soon enter its second phase, which is the mass metering of electricity customers within its coverage areas under a monthly payment amortisation plan.

To ensure the company has adequate stock of meter inventory for its mass metering, New Hampshire has partnered with several international meter-manufacturing companies to produce high quality smart prepaid meters. The firm has also entered into meter purchase agreements with several local meter assemblers to purchase their assembled meters in line with the local content requirement of the MAP regulations.

In addition, the firm said it has developed proprietary technology systems and meter installation apps to manage the installation and commissioning of prepaid meters.

“Our Meter Ordering Services (MOS) system is our technology platform which was specifically designed to ensure the seamless end-to-end provision of metering services to electricity customers, from procurement to the installation and commissioning of the meters at the customer’s premises,” he explained.

According to him, the company’s MAP operations currently provide direct employment for over 400-meter installers and field engineers who handle meter maintenance and repairs. “We would engage more than 1,000 trained meter installers when we fully commence our mass metering roll-out. The company has been able to build capacity using local workforce and youths within our areas of operation and enjoy significant support from our host communities who are major beneficiaries of our local labour recruitment,” he said.

In Abuja, the Abuja Electricity Distribution Company (AEDC), earlier in the week, began the metering of 900,000 customers under the National Free Mass Metering Programme. At the flag-off ceremony, AEDC’s Managing Director, Engr. Ernest Mupwaya, revealed that the cost of the meters is N93 billion, adding that the amount will be sufficient to meter all customers including replacement of defective meters.

According to him, “between now and December 2021, AEDC has planned to install over 101,000 meters at a cost of N6 billon without charging customers. The rest of the meters will be installed 18 months after, through a comprehensive roll out programme that will result in simultaneous installations in all three states of Niger, Kogi and Nassarawa states in addition to FCT.”

He explained that with the project, the Federal Government has activated its 40 per cent shares in the company. Mupwaya said the significance of the programme is that it has been designed with sufficient resources to meter all customers.

His words: ‘The Federal Government of Nigeria (FGN) who has 40 per cent shareholding, has sourced sufficient funding to support discos through a low interest shareholder loan that will make it possible for Discos to receive sufficient meters to close the metering gap for good.” He recalled that over the years, the company has embarked on various metering initiatives such as Credit Advanced Payment for Metering Implementation (CAPMI) and Meter Asset Provider (MAP). These programmes, he said, have achieved some successes that resulted in the metering of over 300,000 customers.

Similarly, Eko Electricity Distribution Company (EKEDC), has also begun its distribution of smart electricity meters to customers following a simultaneous launch events of the scheme in Kano, Kaduna, Ikeja and the Eko Distribution Companies franchise areas. EKEDC’s General Manager, Corporate Communications, Godwin Idemudia said the distribution will begin in the Surulere axis of Lagos State. He explained that the NMMP is in fulfilment of the Federal Government’s and the Discos commitments to close the metering gap in the country and enhance the revenue collection of DisCos.

He said that under the new arrangement, DisCos are expected to go from location to location with their respective Meter Asset Providers to provide and install meters for their customers. Eko Electricity, he revealed, will roll-out over 100,000 meters in the first phase of the programme from the locally manufactured companies such as Mojec International Limited and Momas Meter manufacturing company.

Idemudia disclosed that the NMMP will increase Nigeria’s metering rate, eliminate estimated billing and strengthen the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity.

Benefits

Mupwaya is convinced that the metering of customers has a huge positive implication not only to the electricity industry but to the entire economy in a number of ways. One of such benefits is in the area of job creation and employment through installation and inspections of meters after installations. Other jobs to be created through this are in meter manufacturing, logistics and supply chains associated with making meters available in the country.

Other benefits include improvement in the transparency in electricity transaction which will result in increased revenues that can be channeled into service improvement; improved services, which will support improved economic activities that will impact both informal and formal sectors. These, it is believed, will lead to electricity industry transformation along with numerous spillover effects to the economy.

Idemudia sees the benefits as a means to also reduce collection losses, increase financial flows to achieve 100 percent market remittance obligations of the Discos and support the country’s economic recovery by creating jobs in the local meter value chain whilst also ensuring customers only pay the exact value for their energy consumption.

Challenges

Omoyeni stated that while the MAP scheme has recorded significant success so far, there are several challenges facing the implementation of the scheme. “One of such challenges is the inability of MAPs to secure foreign exchange to import sufficient quantities of prepaid meters, as well as the 35 per cent import levy charged on prepaid meters.”

He lamented that the inability of local meter manufacturers and meter assemblers to meet the 30 percent local content supply requirement as stipulated by the MAP Regulations has further constrained the company’s determination to accelerate the meter roll out programme.

He thanked the Federal Government for granting a one-year waiver on the 35 percent import levy to allow MAPs carry out bulk procurement and importation of prepaid meters to meet the demand of electricity customers.

However, he called for the immediate implementation of the Presidential waiver, as well as a clear framework, which MAPs can access the presidential waiver.

Asked if the waiver of the import levy would negatively affect local production of prepaid meters, Omoyeni stated that the existing in-country capacity for local meter manufacturing and assembly of meter components is not sufficient to meet the huge demand for prepaid meters by electricity customers.

To buttress his point, he stated that local meter manufacturers who are also MAPs have not been able to meet their meter rollout commitments under the MAP scheme.

He contended that to meet the huge demand for prepaid meters, it would require a combination of importation of FBU prepaid meters to bridge the current deficit in local meter assembly capacity and massive investments in local meter assembly lines.

He lauded the Central Bank of Nigeria for the new meter-financing framework but asked that the CBN framework be aligned with the existing MAP regulations to achieve the objectives and goals of the MAP regulations and finally close the metering gap in the power sector. He said that the CBN’s plan to provide long term financing to local meter manufacturers would help local meter manufacturers expand their present manufacturing capacity, and in addition, encourage more investment in new meter manufacturing lines.

However, he advised that the objective of the CBN should be to promote true local meter manufacturing and not just the mere assembly of meter components imported from China.

He stated that, “it will interest the public to note that the importation of FBU prepaid meters is more beneficial to Nigeria in terms of revenue generation to government, than the importation of SKD meter components. Nigeria also does not benefit from any foreign exchange savings by importing meter components as there is no significant price difference between importing FBU prepaid meters and SKD meter components.” Furthermore, Nigeria loses revenues on the lower import duty payments for SKD meter components, in addition to other fiscal incentives like tax waivers and other incentives provided to the local meter assemblers. The NNMP is expected to roll out six million meters for all connection points on grid without meters over the next 18 to 24 months and estimated to impact over 30 million consumers nationwide.

November 6, 2020
Uniport student wins NCDMB Essay competition

By Muyiwa Lucas

A second-year student of Pharmaceutical Sciences at the University of Port Harcourt, Rivers State, Mr. Abasiekeme Edet, has won N1,000,000 at the 4th edition of the Nigerian Content Development and Monitoring Board (NCDMB) Annual National Undergraduate Essay competition. The award presentation was held in Yenagoa, Bayelsa State earlier in the week. Over 6, 000 entries were received for the competition, which was opened to only undergraduates in either their first or second year in the university.

The topic for this year’s essay contest was “Research & Development as a key lever for Local Content Implementation in Nigeria’s Oil and Gas Industry.”

In his keynote address, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, disclosed that the competition was geared towards developing human and material capacities, which is one of the key mandates of the board. He explained that the board sponsored the contest to create local content awareness among vibrant youths and make them advocates of Nigerian Content, which is critical to sustainable development of the local economy, job creation and national security.

Wabote, who was represented by the Director, Planning, Research and Statistics, Mr. Patrick Daziba Obah, commended the choice of the topic for this year’s competition, hinting that Research and Development is pivotal to national development and the bedrock of sustainable Local Content.

Obah indicated that the Board’s developed a 10-year R&D roadmap to help promote the culture of research and innovation in Nigeria and support local content development in the oil and gas industry. He identified some key initiatives under the R&D roadmap to include the establishment of a $50 million Nigerian Content R&D Fund, sponsorship of research prototypes, commercialisation of research findings and setting up of R&D Centres of Excellence (CoE) in five Nigerian universities.

In his remarks, the General Manager, Corporate Communication and Zonal Coordinator, NCDMB, Dr. Ginah O. Ginah, noted that the competition is one of the board’s interventions to improve the standard of education in Nigeria. He added that it aims to promote proficiency in writing, increase the participants’ awareness of local content and engender citizen engagement from undergraduate level. The chairman of the occasion and Vice Chancellor, Federal Medical University, Prof Ebitimitula Etebu represented by the Registrar, Dr Akpos Adesi, pointed out that national competition such as this helps to foster national unification and boost academic excellence. He applauded the board for sponsoring the competition and sought for its sustainability.

Edet thanked the board for organising the competition, which provided a challenge for students to research extensively and proffer solutions around the issues of local content. Miss. Oluwadamilola Elizabeth Oluwafela, a 200-Level Medical student, Obafemi Awolowo University, Osun State emerged the first runner up and won a cash prize of N500,000, while Mr. Somtochukwu Samson Eze, a 100-level Medicine and Surgery student of University of Nigeria, Nsukka, Enugu State placed third and won a cash prize of N300,000. Other finalists received HP laptops as consolation prizes.

November 6, 2020
Nigerian Chemist Dr. Olusola Ojelere sets new benchmark in nanomaterials research and environmental sensing

Dr. Olusola Ojelere, a successful inorganic chemist with specialized experience in precursor synthesis and nanotechnology, has made himself a top-ranked innovator in the field of materials chemistry. Based in the United Kingdom, Dr. Ojelere earned his PhD in Inorganic Chemistry and Materials Science from the prestigious University of Cologne, Germany.

His doctoral research was fully funded by the German Academic Exchange Service (DAAD), one of the most selective and prestigious research fellowships in Europe, awarded to less than 10% of applicants worldwide.

Dr. Ojelere’s academic background is not only robust but is richly supported by deep, hands-on experience in advanced nanomaterial synthesis, crystallography, and device integration. Over the course of his career, he has made major contributions to the design of molecular precursors for the synthesis of functional nanomaterials, with applications that span gas sensing, energy technology, and catalysis.

Redefining Synthetic Inorganic Chemistry

For years, vanadium(II) oxide has intrigued scientists for its potential in powering next-generation technologies, from clean energy systems to smart environmental sensors. However, harnessing this remarkable material has remained nearly impossible due to its extreme sensitivity to air and instability during production.

That changed with the groundbreaking work of Dr. Olusola Ojelere, whose research delivered a long-awaited breakthrough. Using an innovative method he developed during his PhD, Dr. Ojelere created a custom-designed chemical compound that served as a starting point for producing pure vanadium(II) oxide. By applying a controlled heating process in a carefully managed environment, he successfully produced high-purity nanowires of the material, something no one had achieved before.

This method didn’t just make the material accessible, it also gave scientists unprecedented control over its structure and properties, opening the door to real-world applications in electronics, sensors, and green energy. Dr. Ojelere’s achievement marks a turning point in advanced materials research, offering a solution to a problem that had stumped the scientific community for decades.

This research was published in Dalton Transactions, a top-tier journal in the chemical sciences, where it received attention for being the first reported case of VO nanowires synthesized using a rationally designed molecular precursor. His technique is now regarded as a benchmark for future work in low-valent metal oxide synthesis, demonstrating that even the most reactive transition metals can be engineered into functional nanomaterials under controlled laboratory conditions.

From Fundamental Discovery to Real-World Application

What distinguishes Dr. Olusola Ojelere is his exceptional talent for turning complex scientific discoveries into practical innovations. Building on his earlier breakthrough in synthesizing vanadium monoxide (VO) nanowires, he developed a state-of-the-art electrochemical sensor capable of detecting trace amounts of ammonia (NH₃), a gas with serious implications for industrial safety and environmental quality.

Published in the Journal of the Electrochemical Society, this sensor showcased remarkable sensitivity, energy efficiency, and affordability. By leveraging the high electron mobility and surface reactivity of VO nanowires, the device achieved rapid and selective detection performance that sets a new standard for environmental monitoring technologies.

What made this innovation stand out was its ability to detect even tiny traces of ammonia quickly and accurately. Thanks to the unique properties of VO nanowires, exceptional electron mobility and surface reactivity, the sensor delivered speed and selectivity.

By moving seamlessly from complex material design to a working device, Dr. Ojelere demonstrated a rare ability to bridge the gap between scientific theory and practical innovation. His work not only deepens our understanding of advanced materials but also delivers meaningful solutions to urgent global challenges, a hallmark of truly exceptional scientific leadership.

A Recognized Leader and Innovator

Dr. Ojelere’s pioneering contributions to nanomaterials research have attracted significant academic and professional recognition across the global scientific community. His innovative synthesis of VO nanostructures is now widely cited and has influenced ongoing research in nanotechnology, materials science, and environmental sensing. Research laboratories across Europe, North America, and Asia are actively extending his work to explore new families of low-valent metal oxides and advanced sensing technologies.

He has been invited to present his findings at major international conferences, including the prestigious Materials Science and Engineering (MSE) Congress & Exhibition 2018, where he presented the poster P06-99, titled “Reductive Transformation of V(III) Precursors into Vanadium(II) Oxide Nanowires for ORR Application”. Additionally, he delivered a lecture on “Molecular Precursor Approach to Lithium-Vanadate Nanorods as Anode Materials for Lithium-Ion Batteries”, showcasing his expertise in precursor chemistry and energy materials. These invitations reflect his growing reputation as a thought leader in the design and application of functional nanomaterials.

Driving Global Breakthroughs, Inspiring African Innovation in Advanced Materials

The implications of Dr. Ojelere’s work are profound and lasting. By showing that metastable metal oxides can be engineered with precision, he has provided a toolkit for materials scientists to explore new classes of functional materials. His research also lays the groundwork for next-generation sensors, low-power electronic devices, and catalytic systems for clean energy conversion.

Dr. Olusola Ojelere’s career is a powerful testament to sustained excellence, originality, and meaningful global impact in the scientific community. From addressing long-standing challenges in vanadium chemistry to creating practical solutions for environmental sensing, his work reflects the very best of scientific ingenuity. With a rare combination of innovative thinking, technical precision, and visionary leadership, Dr. Ojelere has not only advanced the frontiers of materials chemistry but also provided scalable pathways for real-world technological applications.

What makes Dr. Ojelere’s journey especially inspiring is his deep-rooted connection to Africa and his role as a symbol of what is possible when talent is nurtured, opportunity is given, and innovation is prioritized. As a Nigerian-born scientist trained at some of the world’s leading institutions. Dr. Ojelere is a model for emerging scientists across the continent.

His achievements underscore a powerful message: African researchers can be at the forefront of global scientific discovery. His success story highlights the urgent need for increased investment in science and technology across Nigeria and the wider African region. With better access to funding, infrastructure, mentorship, and cross-border collaborations, institutions across the continent can become hubs for cutting-edge research and innovation.

As the field of materials chemistry and nanotechnology continues to evolve rapidly, Dr. Ojelere stands as a vanguard figure, shaping the future with creativity, purpose, and a spirit of possibility. His career serves as both a benchmark and a call to action: a reminder that with the right support, African scientists can lead not just in participation, but in invention.

November 3, 2020
How Nigeria sets record on extractive sector ownership disclosure

The Companies and Allied Matters Act, 2020 (“CAMA 2020”) signed into law by President Muhammadu Buhari has sparked reform in countries now working on establishing public registers including Nigeria. It is expected that the new law will reduce compliance costs and regulatory hurdles for businesses in the country, AMBROSE NNAJI reports.

With the established publicly accessible register of extractive companies and the Companies and Allied Matters Act, 2020 (CAMA 2020) signed into law by the President, Nigeria has once again set the trail of few countries with legal framework for beneficial ownership disclosure not only in its extractive sector, but for every company doing business in the country, the Nigerian Extractive Industries Transparency Initiative (NEITI), has noted.

President Muhammadu Buhari had recently signed into law the Companies and Allied Matters Act, 2020 (“CAMA 2020”) to replace the 1990 Act. CAMA 2020 which is now the primary legislation governing the formation and management of companies in Nigeria affects all residents and foreigners intending to or doing business in Nigeria. The bill was focussed on supporting the government initiative to improve ease of doing business in the country.

The new Companies and Allied Matter Act (“CAMA 2020” or “the Act”) introduces new provisions to reflect modern commercial realities as well as reduce compliance costs and regulatory hurdles for businesses in Nigeria.

The bill seeks to establish an efficient means of regulating businesses, minimise the compliance burden of small and medium enterprises, enhance transparency and shareholder engagement and promote a friendly business climate in the country.

The Assistant Director, Communications and Advocacy at the NEITI, Mrs Obiageli Onuorah, said the CAMA 2020 specifically required individuals and companies in sections 119-123 (Pages 70-73 of the new Act) under the caption: ‘Disclosure of persons with significant control’ to declare their ownership interests and structure, adding that the new Companies and Allied Matters Act signed into law by the President was the ultimate game changer.

It would be recalled that in 2013, Nigeria began its journey towards revealing the real owners of its assets in the extractive industries. Onuorah recollected that by 2016, at the anti-corruption summit which took place in London, President, Muhammadu Buhari made a pledge alongside other world leaders to work together towards revealing real owners of companies doing business across jurisdictions in the world.

According to Onuorah, a communique issued at the end of that summit highlighted the key role that beneficial ownership (BO) disclosure would play in the fight against corruption and illicit financial flows especially in resource rich and developing countries like Nigeria.

“We will enhance transparency over who ultimately owns and controls them, to expose wrongdoing and to disrupt illicit financial flows. As recent events have shown, we need to take firm collective action on increasing beneficial ownership transparency,” an excerpt of the communique read according to the statement.

Further, the communique spelt out how partnerships between local and international jurisdictions would enhance and facilitate the use of BO to track incidences of corruption among collaborating countries. It specifically said: “We will support developing countries to collect beneficial ownership information and use it in public contracting and other sectors work.” she noted

According to Onuorah, in its earliest policy brief published in May 2016, NEITI highlighted the dangers of secrecy in the ownership of extractive sector assets in Nigeria. She remembered the NEITI had called on the government to implement and institutionalise ownership transparency as a “systematic and more sustainable way of fighting corruption”

She noted work went on towards getting a register containing real owners of companies in Nigeria’s extractive industry in place by January 1, 2020, the deadline given by the global Extractive Industries Transparency Initiatives (EITI) for all implementing countries to comply with the requirement. According to her, by December 2019, NEITI’s beneficial ownership register was in place adding that the register is publicly accessible on a portal linked to the NEITI website.

The Extractive Industries Transparency Initiative is a global standard for the good governance of oil, gas and mineral resources which seek to address the key governance issues in the extractive sectors.

When implemented by a country, the EITI ensures transparency and accountability about how a country’s natural resources are governed. This ranges from how the rights are issued, to how the resources are monetised, to how they benefit the citizens and the economy.

The standard is composed of two parts. Part I deals with the implementation of the standard and part II deals with the governance and management of the international EITI.

Onuorah noted the EITI in its 2019 Standards required implementing countries to “document the government’s policy and multi-stakeholder group’s discussion on disclosure of beneficial ownership”. The global body, she said, further recommended that implementing countries should “maintain a publicly available register of the beneficial owners of the corporate entity (ies) that apply for or hold a participating interest in an exploration or production oil, gas or mining licence or contract”.

Beneficial Owners of extractive assets, she said, were the natural person(s) who directly or indirectly ultimately owned or controlled at least five percent of a corporate entity. According to her, by the CAMA Law 2020 and the NEITI register of beneficial owners of companies, Nigeria has met the above requirements demanded of it by the EITI, adding that it’s a breakthrough for the country and NEITI.

As NEITI and indeed Nigeria celebrate the opportunities provided by the provisions of CAMA 2020, implementing sections 119-123 of the Act and the Requirement 2.5 (e) of the 2019 EITI Standard, needed ingenuity. Section 2.5 (e) of the EITI Standard states that: “The multi-stakeholder group (MSGs) should assess any existing mechanisms for assuring the reliability of beneficial ownership information and agree an approach for corporate entities to assure the accuracy of the beneficial ownership information”, she noted.

She said though CAMA 2020 did not set any specific penalty (ies) for a breach of the provisions of Sections 119-123 of the law, it nevertheless gives bite to the EITI requirement 2.5 which recommended that MSGs should require companies to attest to the beneficial ownership declaration form through a “sign-off by a member of the senior management team or senior legal counsel, or submit supporting documentation”.

October 30, 2020
NOGICD Act Amendment: NCDMB, others oppose increase of Content Fund,Commission Bill

By Muyiwa Lucas

THE Nigerian Content Development and Monitoring Board (NCDMB) and key organisations in the oil and gas industry – the Petroleum Technology Association of Nigeria (PETAN), Petroleum Contractors Trade Section (PCTS), Oil Producers Trade Section (OPTS) and the Nigeria LNG Ltd, have opposed increasing the percentage of the Nigerian Content Development Fund (NCDF) from the current one percent to two percent as proposed in the amendment of the Nigerian Oil and Gas Industry Content Development (NOGIDC) Act.

The NCDF is deducted from the value of contracts awarded in the oil and gas industry and was pegged at one percent by the NOGICD Act of 2010.

The organisations canvassed this position in separate presentations they made recently in Abuja at a two-day public hearing organised by the Joint Senate Committee and House of Representatives Committee on Nigerian Content Development and Monitoring.

The public hearing is focussed on three proposed legislations, namely the Bill for an Act to amend Nigerian Oil and Gas Industry Content Development Act, Cap 2, 2010 and other matters connected thereto and the Bill for an Act to enact Nigerian Local Content Act for the development, regulation and enforcement of Nigerian Content in all sectors of the Nigerian economy except Oil and Gas Industry Sector and for related matters.

The third legislation seeks to repeal the NOGICD Act and enact Nigerian Local Content Development and Enforcement Commission Act and establish the Nigerian Local Content Development and Enforcement Commission.

In his submission, the Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote, argued that the one percent NCDF deduction should be maintained “given the pressure that the global oil and gas companies are facing with cost escalations and price reductions in the industry. With prudent management of the NCDF and the full cooperation of the operating companies, we believe Local Content shall continue to operate efficiently and grow.”

In their speeches, representatives of the leading oil industry organisations advised against the proposed increment, stressing that an amendment of the NOGICD Act should promote and protect local businesses and encourage entry of foreign capital and technology into the country to further grow the sector.

They also strongly opposed the proposed bill which sought to repeal the Nigerian Oil and Gas Industry Content Development Act 2010 and enact Nigerian Local Content Development and Enforcement Commission Act.

The representative of the OPTS, Engr. Joseph Ofili said that the group was totally against the Commission Bill because it would erode the gains of the past 10 years of Nigerian Content implementation and return the industry to ground zero with regards to Local Content implementation.

The PETAN Chairman, Mr. Nicolas Odinuwe, stated that it would be a grave mistake to repeal the NOGICD Act which had been acclaimed by several stakeholders to be very successful. He insisted that the best strategy would be to fine-tune a few areas to make it more effective.

On the new provision to earmark 0.5 percent of gross revenue of oil and gas companies for research and development, the Executive Secretary NCDMB who was represented by Director Planning, Research & Statistics, Mr. Daziba Patrick Obah, stated that the board welcomes it on the condition that the money would be for the operator’s own utilisation.

The board also supported the proposal by the amendment to add Naira to the benchmark currency for local contracts “This means a paradigm shift from the dollar-denominated provision to a bi-currency model,” the Executive Secretary explained.

On the requirement for Companies Seeking Expatriate Quota (EQ) to Provide Additional Information, Wabote said the board supports the review “because it increases the information to be provided by companies seeking Expatriate Quota approval which will further prevent abuse of the process and round-tripping of expatriates across sectors of the economy. We have a very good interface with the Ministry of Interior; the proposed amendment will further enhance data exchange and inter-agency collaboration. “

On the proposal to impose administrative sanctions on defaulters of the Act , the Executive Secretary stated that “the board welcomes the change because “it categorises the various violations and stipulates sanctions that could be applied upon conviction and now empowers the Board to mete out administrative sanctions against erring companies on certain categories of infractions without first securing a conviction in court. We believe this will further enhance the regulatory functions of the board and reduces additional burden on the courts.”

In his remarks, Chairman of the Senate Committee on Local Content, Senator Teslim Folarin Teslim clarified that the Bill for an Act to amend NOGICD Act and the Bill to enact Nigerian Local Content Act for the development, regulation and enforcement of Nigerian Content in all sectors of the Nigerian economy were sponsored by the Nigerian Content committees of both houses of the National Assembly.

He explained that the justification for proposing a separate legislation for the other sectors of the economy was because the oil and gas industry was peculiar and its operations and governance structure of the NOGICD should not be disrupted.

Also speaking at the event, the Deputy Leader, House of Representatives, Honourable Peter Akpatason, who represented the speaker of the House of Representatives, Rt Honourable Femi Gbajabiamila, explained that the proposed bills have significant impact on the national economy. He noted that 10 years of Nigerian Content implementation have resulted in noteworthy achievements, listing them to include the employment of many Nigerians in the oil and gas industry, engagement of Nigerians in high-tech activities of the industry, significant reduction in capital flight and retention of spend in-country.

October 30, 2020
CDN Oil boosts investors morale, assures customers of value, greater future

Our Reporter

CDN Oil and Lubricants Limited has assured its customers and investors a bright future looks and value for investments amid uncertainties in the economy as a result of the outbreak of the coronavirus (COVID-19) pandemic and the #EndSARS protests in various parts of the country.

Chairman/Chief Executive Officer of the firm, Chukwuka Daniel Nwokolo, in a statement, reassured of the company’s commitment to repositioning the country’s lubricants market through its efficient, durable, trusted and high quality engine oil.

According to the 33-year-old CEO, “The events of recent months, weeks and days have obviously not been the best for businesses in Nigeria and indeed all over the world.

“The outbreak of the coronavirus (COVID-19) pandemic in the first half of 2020 took its toll on everyone and affected many businesses and organizations, consequently bringing business activities to a temporary halt. Though, this did not deter us from discharging our duties to you, our esteemed partners and customers.

“The recent protests by Nigerian youths to end every form of police brutality and usher in a people-oriented agenda into Nigeria, about two weeks ago was indeed geared towards having a better country for us all. While we support the clamour for a better Nigeria by our young population who represent the future and hope for our nation, we remain committed to repositioning the country’s lubricants market through our efficient, durable, trusted and high quality CDN engine oil.”

The CEO further noted: “To all our esteemed customers, investors and wonderful partners, we will not fail in serving you better regardless of whatever challenges we may have faced in the last few months, ensuring that you get the best value for every naira spent on our CDN engine oil.

“At CDNoil.ng, we will continue to strive to be the best choice and leading marketer for oil and lubricants in Nigeria, Africa and the world at large. As we move forward into the coming years, together with our investors and loyal customers, we will penetrate new markets and expand our distribution channels and horizon, helping them to boost returns on their investments and ensure sustainable growth of our brand.”

“We wish to once again reiterate our commitment and our resolve to serving our customers and partners come what may with an unshaken determination to get better and stronger as the economy bounces back,” the statement read.

October 26, 2020
CWG set to deploy 100,000 smart meters for IBEDC

Our Reporter

As a licensed Meter Asset Provider, CWG Plc has been given a contract sum of $11.1million by the Ibadan Electricity Distribution Companies (IBEDC) to deploy over 100,000 smart meters in Babaoko, Omu Aran and Jebba Business Hubs.

CWG’s Business Development Manager, Corporate Development, Mr. Emmanuel Ilori disclosed this recently in a chat with some Journalists in Lagos.

According to him, the contract is a fall out of CWG’s utility business, having the full regulatory bodies’ recognition as it has both the NEMSA and MSP certificates, all of which lend credence to its metering business and positioned the company to harness the inherent opportunities within the electricity value chain.

“The Meter Asset Provider license from Nigeria Electricity Regulation Company (NERC) enables us to initiate business discussions around metering with several Electricity Distribution Companies in Nigeria. Notable among this discourse is the business contract we concluded last year with IBEDC, a contract sum in excess of $11.1m in which three business hubs were ceded to us for the deployment of electricity meters. We are to deploy over 100k plus meters in Babaoko, Omu Aran, and Jebba Business hubs of the IBEDC,” Ilori revealed.

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He added that the deployment and installation of the meters are currently ongoing in all of these locations with the company’s team of installers on the ground, massively driving the process of the installations. This is also an opportunity to notify the IBEDC customers within Omu-Aran, Babaoko, and Jebba business Hubs to go to their respective IBEDC business hubs to register and pay for their meters and get it installed in 10 days of the regulatory installation circle.

The CWG’s Smart Meter Solution, which has been described as a unique solution because of its efficacy within the electricity value chain is presently being deployed in different locations across Nigeria, especially in Real Estate companies’ projects, Estate Management firms, and Utility companies for the effective management of energy monitoring and usage.

October 21, 2020
Productions from Ogbele marginal field hit 19m barrels, 90bscf of gas

Our Reporter

Ogbele marginal field, located in oil mining lease (OML) 54, in Rivers State, is Nigeria’s first marginal fields to produce oil and gas in 2005. It is also the first Nigerian oilfield to have a functional modular refinery, though refining a marginal 1000 barrels per day. The field’s cumulative production in the past 15 years recently reached 19 million barrels of crude and 90 billion standard cubic feet (bscf) of gas.

According to Wood Mackenzie, Ogbele marginal field is an onshore asset in eastern delta. It was carved out from oil mining lease (OML) 54 operated by Chevron Nigeria Limited (CNL). It was the first marginal field to be awarded to an indigenous company, the Niger Delta Exploration & Production Plc (NDEP).

The company achieved first oil production from Ogbele marginal field on August 28th 2005, and has produced crude oil from more than 10 wells it had drilled. Through its subsidiary, Niger Delta Petroleum Resources Limited (NDPR), NDEP refines 1,000 barrels per day of crude through its mini-refinery, which may be expanded to 11,000 barrels per day before end of this year.

Since the first production of crude oil in 2005, NDEP has recovered over 19 million barrels of crude, and over 90 billion standard cubic feet (Bscf) of gas. The company has also evolved into an integrated energy company with interests in various aspects of Nigeria’s oil and gas value chain, eyeing business operations and opportunities in other African countries including South Sudan.

Despite the low oil output from the field, NDEP has carried out several projects in its five host communities of Ogbele, Oshiugbokor, Obumeze, Otari, Rumuekpe and Omaraka. As at 2019, NDEP had invested over N1.9 billion in the five host communities through road construction, rural electrification, construction of school buildings and town halls and medical facilities. This was achieved through the establishment of a Community Development Trust in 2006, which is funded through a dedicated five per cent of its net profit specifically for corporate social investment in the host communities.

The Department of Petroleum Resources (DPR), the oil and gas industry regulator had in April revoked licences of 11 marginal fields that were unable to begin production due funding and other challenges.

NDEP last month celebrated its 15th anniversary of achieving first oil from its Ogbele marginal field. The anniversary, which held virtually, had about 150 participants including former and present directors, staff, and community stakeholders of the Company. The participants reminisced about the early years of the Company’s operations and the events leading to attainment of first oil production from field.

The Managing Director of NDEP, Dr. ‘Layi Fatona, recounted the considerable challenges encountered by the Company in its quest to pioneer indigenous Upstream activities in Nigeria. He recognised the ultimate success as a result of the collective support and tireless efforts of its various stakeholders.

“It is a milestone I am proud of, such as we achieved together as a company. We did not get here by chance. We got here because we believed it could be done. We shared the common dream that first an indigenous oil company was possible. Next, we put in much work to make it happen,” he said.

A former Chairman of the Board of Directors of the Company, Ogbueshi Ben Osuno, recalled some of the key challenges NDEP faced at the inception of operations which included securing Presidential approval to operate the field, attracting investors to fund the field development project as well as” getting a drilling company to work with us even after agreeing to pay a higher sum for the job.”

He said NDEP “is seen as a major accomplishment because we have grown from being a single well company into a crude oil and gas producing, processing, refining and exporting company.”

Another former Chairman of the Company Board of Directors, Mr. Goodie Ibru, congratulated the current Chairman of the Board of NDEP, Mr. Ladi Jadesimi, the managing director and the other directors, management and staff for its successes to date.

“The remarkable thing about NDEP is that it is not just producing crude oil and exporting, it is adding value to the Nigerian economy. It has become an integrated oil and gas company. It has a mini refinery; it has a gas plant, and this translates to the creation of job opportunities for the youths.

“It’s doing a lot to create opportunities for young people, creating wealth and also keeping part of the wealth within the country instead of just sending crude oil abroad and importing refined products,” Ibru said.

Commending the company for their contributions towards the development of its host communities, a community leader, Dr. Kipoye Gogo from Otari Host Community, said three key factors were responsible for the harmonious relationship NDEP had enjoyed with its host communities – fulfilled promises by the Company, commitment to agreements and accessibility.

Another Community leader, Mr. Napoleon Ukalikpe, said: “NDPR employs our youths in Ogbele community, they have built schools, sank boreholes and provided electricity to our communities and they are still doing more as we speak. “

The participants extolled the former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), the late Chief Aret Adams, in the founding and successful take-off of the NDEP.

September 27, 2020
How Mark Obisesan, is changing Nigeria’s renewable energy industry

Situated about 100km from Ilorin (the capital of Kwara state) in Asa local government, is a renewable energy factory with big ambitions of changing the way families cook. Founded by Mark Obisesan, a young Nigerian with a background in computing and Information Technology, Rianol Energy is gradually influencing what happens in many kitchens across several households. Rianol Energy specializes in the production of ethanol as a cheaper and much safer alternative to kerosene and gas.

“When I returned to Nigeria from the United Kingdom about 10 years ago, I wanted to set up a water factory and create hundreds of jobs for local communities but my market research led me somewhere else,” Obisesan recalls. “I soon realized I needed a steady power supply to successfully run a factory at the scale I intended. This led me to research cheap and alternative power supply and then I stumbled on the opportunity that led me to set up a renewable energy company instead.”

And while Obisesan makes no pretense about his motives of making a decent profit from his enterprise, he is now more inspired by the way his business is affecting the lives of people positively. There are about 70,000 kerosene related deaths in Nigeria yearly, not to mention the hundreds of deaths from gas explosions, but Obisesan’s brilliant idea of converting ethanol into energy for domestic cooking is likely to drastically reduce, if not eliminate, such avoidable domestic accidents.

Mark Obisesan has big dreams of not just revolutionizing how women cook, but he also has his gaze on pharmaceutical companies who rely on ethanol for the production of certain drugs. He sheds more light on his darling start-up, the challenges he has to surmount every day and what the future holds for Rianol Energy;

What inspired you to start this company?

Interestingly, I did not start out wanting to set up an energy company. What I wanted to do upon my return to Nigeria was actually to start a bottle water factory. But while I was conducting market research, I realized the cost of power was so high it would eat up most of the profits and so I started looking for cheaper alternative energy supply. It was while conducting this wide and extensive research that I stumbled on renewable energy and how one can convert ethanol to the energy that was potentially cheaper and much safer than gas or kerosene. And that was how Rianol Energy was born.

Furthermore, the energy it produces is clean and environmentally friendly – saving us from the ills of pollution. Studies have shown that ethanol has less carbon soot, less emissions, produces no smoke or smell and encourages renewable energy usage. Using this as a source of energy will enable us bequeath a healthy environment to our children and grandchildren. We all have to be responsible citizens.

Did your educational background or experience have anything to do with this discovery?

Not really. My background is in computing and Information Technology but I do have an unbelievable knack for spotting gaps and opportunities. So, once I recognized the opportunity during my market research, I put together a team of young, dynamic and very talented people who were experts in this field and most definitely knew much more than I did. All I did was plant the seed (the idea) and they ran the show. So, I’m like the big brother who sets the vision and give direction while the team runs the show.

Tell us how this idea works in practice.

I’ll attempt to answer your question without giving away too much of my trade secret (laughs!). Normally, you get ethanol from starch and sugar crops like corn, wheat, and sugar cane. What we have done is to acquire an expanse of land in Asa, somewhere in Kwara state, and to plant some of these crops. It is from these crops, through a carefully managed process, otherwise called fractional distillation, in the factory that we extract different grades of ethanol that can serve several purposes one of which is energy.

Who is your target market and why do you believe an opportunity exists here?

First, our target market is the end-users of domestic fuel which is virtually every household in Nigeria! That is a huge market by every standard. To your point about the opportunity inherent, I think every human being is rational and once they are exposed to a product that is cheaper and safer, they are most likely to make a purchasing decision. Thousands of people die of kerosene and gas explosions every year. What we are offering is something much safer and a lot cheaper, so I’m confident that the opportunities are limitless.

Do you have any plans to expand soon?

We’re investing in what is known as micro-distilleries. This allows for easy expansion of our operations in that we can easily set up more operations as and when we acquire suitable land for crop cultivation. For example, if we acquire land say a hundred kilometers from our current site, we would not need to worry about the logistics involved in getting the feedstock to a distillery that’s located a hundred kilometers away. This is why through extensive research, we decided to invest in micro-distilleries as opposed to big ones which will end up being underutilized because of the problems involved in getting the feedstock to it from farms that are situated in different areas.

More so, during fractional distillation (the method involved in the production of ethanol), several different purities or grades of ethanol are produced. One of them is pharmaceutical ethanol. This can be sold to pharmaceutical companies in the production of medical drugs. The gases produced during the fermentation process in production are also sold off to producers of carbonated drinks (fizzy drinks). These are some of the areas we will be expanding shortly.

We’re also working on developing a completely zero-waste process where the farm and the plant become self-sufficient. A process where virtually nothing goes to waste from cultivating the crops right to the end product of extracting ethanol.

How many people do you employ?

At the moment, the company employs 10 permanent staff in administrative positions, 5 other permanent staff in the farm and factory operations, and depending on where we are in the crop cycle, up to 1500 casual laborers.

September 21, 2020
Sahara Energy, Petroci seal $43m LPG facility deal

Sahara Energy Logistics Holding Limited, an arm of Sahara Group of Companies, Société Nationale d’Opérations Pétrolières de la Cote d’Ivoire, National Oil Company of Cote d’Ivoire, and Petroci Holding have signed a Joint Venture Agreement (JVA) to facilitate the construction of a 12,000 metric tonnes Liquefied Petroleum Gas (LPG) storage facility to guarantee LPG supply security in the nation.

According to Sahara Group’s spokesman, Bethel Obioma, the cost of the project is estimated at $43 million and will be executed in two phases, with inauguration scheduled for November, next year and October 2022.

Incorporated as SAPET Energy S.A., the JV company will handle the construction, operation, and maintenance of the LPG storage terminal. Upon completion, the facility will become the largest of its kind in sub-Saharan Africa, and more importantly, support the government’s efforts to meet Cote d’Ivoire’s growing LPG demand.

Speaking during the signing of the agreement, Dr. Ibrahima Diaby, director-general, Petroci, said: “This joint venture project is the first of its kind in Cote d’Ivoire and will serve as a model for other projects in the energy sector. It is a historic event that will pave the way for a robust and seamless storage, distribution, and supply of LPG. This translates to more clean energy, growth, and productivity in Cote d’Ivoire. We are delighted and look forward to more collaboration with Sahara Energy.”

Country Manager, Sahara Energy, Olayemi Odutola, said the project was in tandem with Sahara Group’s commitment to promoting clean energy in Africa through investments, new technology, and collaboration with regional and global institutions. He stated that the partnership with Petroci further reiterated Sahara Group’s support and commitment to enhancing economic growth in Cote d’ Ivoire and contributing to the UN SDG7 goal which aims at ensuring access to affordable and clean energy.

“We are excited about the project and the huge opportunity it will confer on Cote d’ Ivoire as the leading LPG hub in the sub-region. Sahara Energy continues to support the energy value chain in the nation as a foremost partner. Sahara Group remains unwavering in its commitment to enhance capacity, productivity, reliability, safety, profitability, competitiveness, and sustainability in Africa’s energy sector. We will continue to explore other investment and partnership opportunities to replicate similar projects across the continent,” he said.

September 18, 2020