The Nation Newspaper

Category: Energy

  • DisCos, TCN, others trade blames over power rejection

    DisCos, TCN, others trade blames over power rejection

    The decision by the power distribution companies (DisCos) to reject a total of 17,657.19 megawatts (Mw) of electricity allocated to them, on the national grid by the Transmission Company of Nigeria (TCN), has once reopened blame trading among operators in the sector. This is evident by inability of the three key stakeholders in the industry – the distribution, generation and transmission – to accept responsibility for the happenings in the sector, writes AKINOLA AJIBADE.

     

     

    DID  electricty companies reject power allocated to them or not? This is the question on the lips of experts.

    Recently, the 11 DisCos rejected a total of 17,657.19 Mw allocated to them by the Transmission Company of Nigeria (TCN) from February 3 to 23. However, the development led to blame trade as none of the operators in the sector is ready to take responsibility.

     

    Power Ministry/TCN’s perspective

    Statistics obtained from the Federal Ministry of Power and TCN showed that the grid is wobbling as it has lost an average of 1,000Mw of electricity daily.

    According to the reports, the grid recorded a peak generation of 4.643.8 Mw, but crashed by 1.346.6 Mw to hit a low of 3.297. 3Mw on February 1. It added that similar scenarios played out last month, suggesting that the sector has been affected.

    Earlier, the sector faced challenges, such as gas constraints, poor distribution mechanisms, incessant collapse of the grid and hitches.

    DisCos rejected a total of 5,451Mw of electricity between January 13 and 19. Findings revealed that the DisCos rejected electricity, despite lack of power across the country.

    On January 17, it was observed that of all the 11 DisCos, except Kaduna DisCo, rejected 37.44Mw while the other 10 power distributors accepted a cumulative excess load of 698.5 Mw.

    But between January 18 and 19, the 11 DisCos rejected 1.006.14Mw and 1,272.51Mw.This happened amid cases of grid collapse.

    Records have shown that the sector has recorded over 100 cases of grid collapses in the past six years, which has negative consequences on the DisCos, TCN and the power generation companies (GenCos).

     

    TCN’s reactions

    TCN Public Affairs Manager, Mrs Ndidi Mbah, said it was wrong to blame the agency for the lapses in the power distribution firms. She said the agency has been ensuring that electricity is allocated to the DisCos promptly.

    In an interview, Mbah said TCN is not responsible for the poor electricity generation. She said the sector has been experiencing gas constraints, which affected thermal plants.

    She said: “There has been gas constraint in the sector in the past one week. Some of the gas providers are working on how to maintain their facilities.

    Read Also: Power crisis: Govt launches forensic enquiry into DisCos

     

    The firms, which provide gas to thermal plants, are expected to work on their facilities for 10 days. The DisCos should be in the best position to tell Nigerians why they are rejecting electricity allocated to them on the grid by TCN.”

    Similarly, TCN Managing Director, Mr Usman Mohammed, called for the recapitalisation of the electricity distribution firms to strengthen their operation.

    He said the firms would provide a strong network, which would help them to distribute electricity efficiently whene they recapitalise, adding that the TCNwould provide  infrastructure, which would help in checking grid collapse and further supply uninterrupted power to Nigerians.

     

    DisCos opinions

    The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Mr Sunday Oduntan, debunked the claims that DisCos were not taking the electricity allocated to them.

    According to him, “What happened was the issue of misrepresentation by the System Operator (SO) of DisCos minimum and maximum load reading.

    The SO, in its recent allegation of load rejection against DisCos, wrongly accused the firms of not taking the volume of electricity allocated to them on the grid”.

    He said TCN should be blamed for incessant grid collapse, adding that the role of TCN is to transmit power.

    Also, the spokesperson, Ibadan Electricity Distribution Company (IBEDC), Mrs Angela Adekunle, urged TCN to provide Supervisory Control and Data Acquisition (SCADA) to end grid collapse.

    She said TCN, and not DisCos, should be blamed for grid collapse, adding that the proision of SCADA would help in resolving problems caused by grid collapse and further  end blame trading among operators.

     

    NERC’s views

    The Nigerian Electricity Regulatory Commission (NERC) Chief Executive Officer, Prof James Momoh, said the Commission has set up a six-man panel comprising  external officials to investigate the claims that DisCos are rejecting electricity.

  • Two arraigned for assault

    Two arraigned for assault

    Our Reporter

    Two women have appeared before a magistrate’s court in Agbara for assaulting one Ann Ezuma, a staff member of Eko Electricity Distribution Company (EKEDC).

    The incident occurred in Medina Estate Area, Agbara, Ogun State when Ezuma was on duty.

    The two, Adetayo Adefila and Faith Ogunmade, aged 42 and 33, were charged with a three-count charge of felony, unlawful assault and conduct likely to cause a breach of peace.

    Read Also: Man docked for ‘assaulting’ policemen

    Adefila and Ogunmade pleaded not guilty to the three-count charge before Magistrate Ilo, who granted them bail in the sum of N50,000 with two sureties. One of the sureties must present evidence of tax payment for at least one year. The accused persons were, however, remanded in the Ilaro facility of the Nigerian Correctional Service (NCS) pending the perfection of their bail.

    It was said the defendants beat the EKEDC staff member, threw her in a pile of trailer tyres, thereby causing her to sustain injuries.

  • Plummeting crude oil prices an opportunity for Nigeria, says MOMAN

    Plummeting crude oil prices an opportunity for Nigeria, says MOMAN

    For Major Oil Marketers Association of Nigeria (MOMAN), falling oil prices in the international market will open up the downstream petroleum subsector as it will allow more players to participate. It is the best time for the Federal Government to deregulate and put the downstream on the path to sustainability , writes SAMPSON UNAMKA.

    No Major Oil Marketers Association of Nigeria (MOMAN), hard times, such the one the oil and gas sector is facing, are the best to restructure the petroleum downstream industry.

    The reduction in global crude oil prices, it said, is not an ill wind after all.

    In an interview, MOMAN’s Chairman, Mr Tunji Oyebanji, said the country should take advantage of happenings in the international market.

    He said the drop in crude oil price would increase premium motor spirit (petrol) import by bringing in more players to participate in the sector, appealing to the government to review industry margins.

    He said removing fuel subsidy in the period of a drop in prices would eliminate waste, address low margin as well as set the country on the path of appropriate product pricing.

    He said: “The elimination of oil theft and leakages in the system, the optimisation of the supply chain, the introduction of alternative energies and the regular and consistent maintenance of the distribution infrastructure are all necessary aspects of this downstream reform, which the passage of the Petroleum Industry Bill will provide an opportunity for the country to resolve once and for all.”

    According to him, MOMAN believes that an increase in margins was necessary to halt the further degeneration of the petroleum distribution infrastructure.

    “The restructuring or reform of the downstream oil industry is necessary,” he added.

    Oyebanji, also the Chief Executive Officer, 11Plc, said his group recently visited the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, to tackle the ills in the downstream petroleum subsector.

    He noted that MOMAN would not support fuel theft, fuel adulteration or illegal refining of petroleum products.

    He added that MOMAN would collaborate with its business partners to support the Federal Government and the NNPC to eliminate these malpractices.

    He expressed MOMAN’s support for the Federal Government’s drive for the exploitation of the gas reserves, including deepening the use of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG).

    He stated that his group was prepared to invest in the safe installation of LPG facilities in its stations across the country, adding that the development would eliminate the unsafe practice of dispensing cooking gas through unlicensed roadside vendors.

    He said: “With respect to CNG, MOMAN encourages immediate engagements with the private sector to identify policy measures that will make deployment of CNG at retail outlets a reality for the country in the shortest possible time. MOMAN will collaborate with the government and other stakeholders in implementing any such initiative.”

    MOMAN has partnered the NNPC and the Nigerian Association of Road Transport Owners (NARTO) to float truck fleet renewal plan, he said. He added that the partners would engage the finance industry on funding the scheme.

    He added that the programme would contribute to the reduction in loss of lives and property.

    “Ultimately, the degradation and deterioration of the truck fleet as well as the inability of the downstream oil industry to upgrade its equipment and facilities, presents a risk to the distribution infrastructure.

    “Refineries, depots, pipelines, trucks and filling stations are in need of regular maintenance and upgrade. These maintenance and upgrade are funded by industry margin,” he added.

  • Blue Seal Energy begins $12.5m chemical plant construction

    Blue Seal Energy begins $12.5m chemical plant construction

    By Emeka Ugwuanyi

    Blue Seal Energy Group (BESG) has begun the construction of its $12.5 million chemical plant in Ibeju Lekki, Lagos.

    The company’s Managing Director/Chief Executive Officer, Mr. Doyle Edeni, made this known during the plant’s groundbreaking.

    He added that the siting of the company in Nigeria is an intervention by the firm to bridge chemicals import.

    Edeni noted that the first phase of the 35,000-metric ton per year chemical plant would cost about $12.5 million, adding that there is provision for expansion.

    He said on completion of the plant, there would be improved access to industrial chemicals to boost local production.

    “It will create employment for artisans and community stakeholders, reduce dependence on imports, stimulate economic activities, create secondary industry and indirect jobs for suppliers of raw materials and services to the factory and support the current administration campaign for indigenous production of goods and services,” he added.

    Read Also: Dangote test-runs $2 billion fertiliser plant

    According to him, the chemical factory will create direct and indirect jobs for 500-1,500 people. He stated that prior to building the plant, the company imports chemicals from its parent firm in Houston, United States, adding that locating the factory in Nigeria is to attract investment into the country.

    He said Nigeria imported chemicals worth $1.4 billion last year alone, out of which his company was responsible for $5 million.

    Edeni said: “BESG is a 100 per cent indigenous engineering solution company that provides professional and bespoke chemical solutions across the various industries. BESG ventured into the specialty chemical manufacturing space and their applications cut across the oilfield chemicals, downstream chemicals, heavy industries and middle chemicals.

    “We manufacture drilling chemicals which include barite, bentonite, caustic, calcium chloride. Others are production chemicals such as emulsion breakers, water clarifiers, scale inhibitors, paraffin inhibitors, corrosion inhibitors, oxygen and H2S scavengers. We also manufacture boiler, cooling water, waste water treatment chemicals and commodity chemicals.”

    He criticised the uncertainty of the business environment, adding that it has forced many firms to shut down.

    “You know chemical is a product that has a shelf life span; therefore, any player in that industry must plan well. Sometimes, while your product is on its way to the country, some companies or refineries would have shut operations due to power  and other challenges. By the time they arrive and stay for some periods longer than necessary in the warehouse, they would have expired and lost quality,” he said.

    The need to establish a factory in-country became compelling because of the aforementioned constraints coupled with logistics issues, which prolong the arrival of chemicals into Nigeria up to three or more months, he said, adding that the associated cost required to dispose these chemicals had become a huge burden because such could not be dumped into the environment without detoxification.

    “With the production plant located in Nigeria, we don’t have to suffer expired chemical losses anymore. The idea of paying detoxification companies is really impacting on our bottom line,” he said.

    According to him, 70 per cent of the cost of building the plant will be sourced from foreign finance institutions and 30 per cent from local lenders.

  • Oando gets ISO 27001 certification

    Oando gets ISO 27001 certification

    Our Reporter

    Oando Plc has become the first African oil and gas company to receive the ISO 27001 Certification from Certification Partner Global FZ LLC.

    ISO 27001 is the international standard outlining best practices for information security management systems.

    Speaking at the certificate presentation, the Group Chief Corporate Services and Operations Officer, Oando, Mr. Zubairu Muntari said: “This is a significant achievement for Oando. By implementing and following the steps to comply with this standard, we can identify, control, and eliminate security risks, ultimately validating the security practices adopted within the organisation.

    ‘’The certification also means that we are able to provide our stakeholders with a higher degree of confidence in the quality and stability of data security and further validating our commitment to the highest standards of information security.

    Read Also: Oando employees mark Volunteer day in adopted school

    The Head of IT, Oando Group, Mr. Idris Musa, who directed the project, attributed the success to the commitment by management to managing business compliance and operational risks associated with the use of information systems and digital assets.

    He said: “The investment in ISO 27001 enterprise security frameworks has allowed us structure and implement modern security controls in a complete and cohesive manner, thereby strengthening our data and information system governance.”

    The Chief Operating Officer (COO), Digital Encode Limited, Dr. Obadare Peter, said: “Essentially, the certification aims to establish and put in place good information security practices across the Oando Group.

    ‘’The certification is proof that the company’s systems and processes have been audited against international best practice, positioning Oando as operating to global standards.”

  • ‘Why tariff increase must be matched with improved services’

    ‘Why tariff increase must be matched with improved services’

    Electricity tariff review is expected to move the power industry to a cost-reflective one, which will provide investors with the right incentives and increased confidence to commit capital. However, experts say regulation is also paramount, reports AMBROSE NNAJI.

     

    Increase in electricity tariff must be matched with improved services, including metering and ending estimated billing.

    According to the former Chairman, Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, there is the need for NERC to be realistic in balancing tariff, taking cognizance of the interest of  consumers and the electricity distribution companies (DisCos) that also need to recover their costs.

    Amadi, who spoke with The Nation on telephone, stated that the most important thing was not increase in tariff but regulation, which NERC, as the body that carries out minor and major tariff reviews, should adhere to.

    “It is true that the quality of service is very poor and the operators, especially DisCos, have performed very badly but the sector needs huge investment. Even though the public sector still provides transmission services, the bulk of the funds required to drive the power sector is expected from the private sector.

    “Therefore, we have to be disciplined with regulation, such that tariff does not respond too much to political considerations. I think tariff should increase or decrease based on the Multi-Year Tariff Order (MYTO) framework,” Amadi stressed.

    The MYTO is a tariff model for incentive-based regulation that seeks to reward performance above certain benchmarks, reduces technical and non-technical/commercial losses and leads to cost recovery and improved performance standards from operators in the Nigerian Electricity Supply Industry (NESI).

    Amadi further noted that affordability was important as under-consumption of grid energy because its unaffordability will increase poverty and reduce growth. So, NERC has to ensure that consumers are protected and that the increase is sustainable and affordable, he advised.

    The Chief Operating Officer, Ibadan Electricity Distribution Company (IBEDC), Mr. John Ayodele, also admitted that upward review of electricity tariffs would solve the challenges confronting the energy sector.

    Ayodele stated this on the sidelines of the public hearing organised by NERC, tagged ‘Investments towards improvement of power supply and quality service in NESI’.

    He noted that for better service delivery and availability of energy for use by Nigerians, the review was necessary.

    He noted that the price of energy bought by the DisCos had been on the increase apart from the loans from the Central Bank of Nigeria (CBN) which, he said, had to be repaid.

    Read Also: Increased electricity tariff not guarantee for DISCOs efficiency

     

    According to him, a total of N38.9 billion was incurred last year on energy loss, adding that between 2015 and last year, average tariffs were not cost-effective.

    The IBEDC boss further said if tariff was increased to reflect the reality in the industry, it would enable the DisCos to overhaul their facilities, adding: “The only way to solve the problems and save the electricity industry is to increase tariff.”

    He continued: “If tariff is not improved, then steady supply of energy will not be possible. Infrastructure will keep deteriorating; tariff shortfalls will keep accumulating; the industry will collapse due to illiquidity and IBEDC debt profile will continue to balloon.

    ”Five out of every new meter installed are bypassed in their first week of installation, while 85 per cent of customers do not pay bills in full,” he said.

    Ayodele observed that the industry had continued to battle with saboteurs from energy theft to staff who continued to shortchange the company in spite of the losses incurred.

    According to him, there had also been an increase in access to electricity by the consumer, noting that through profiling, the number of those accessing electricity had moved from 1.3 million to 2.1 million.

    He stated that part of the company’s plan was to deliver one million meters to its customers within three years, with the ongoing meter asset providers’ scheme.

    He said that the money realised from the sale of energy did not end with IBEDC but that all the value chains in the energy industry took their share. “So if electricity tariff is reviewed upward, it will make the energy industry thrive and expand,” he added.

     

  • Stop trading under high-tension wires, IBEDC warns

    Stop trading under high-tension wires, IBEDC warns

    Our Reporter

     

    The management of Ibadan Electricity Distribution Company has warned its customers to avoid under high-tension wires.

    Its Chief Operating Officer, Mr. John Ayodele, appealed to the firm’s customers and the public to stop trading under high-tension wires, noting that the danger of doing so outweighs the profits of any business.

    Ayodele, who gave the advice in Ibadan, the Oyo State capital, explained that due to weight of the wires and fire outbreaks, the wires could snap or sag, thereby causing electrical shocks that could lead to disabilities, life-threatening injuries or  death. He said the safest distance to the wires is 5.5 meters or 11 steps away.

    Read Also: IBEDC engages Ogun customers on new metering scheme

     

    Ayodele also advised the public to observe these safety rules to avoid electrocution or any electrical accident.

    He said: “Always stay clear of electrical installations, overhead wires, snapped/cut wires and pole.

    “Do not attempt to reconnect your residence to the electricity grid by yourself or using quarks.  Report any fallen poles, sagging wires to the nearest IBEDC office and always enlist the services of a NEMSA certified electrician for new house connections to the power grid.

  • ‘Metering remains major challenge’

    ‘Metering remains major challenge’

    Nearly seven years after the power sector was privatised, the industry is yet to overcome some of its problems. Notable is meter scarcity, which has become a burden to operators. Amid this, the Nigerian Electricity Regulatory Commission (NERC) has capped estimated billings for certain customers, writes AKINOLA AJIBADE.

     

    Almost seven years after the power sector was privatised, the industry is still grappling with some problems. Besides the shortage of gas, irregular supply of electricity has become a recurring decimal.

    Worse still, dearth of meters still poses a big challenge, despite the Federal Government’s efforts to end it.

    Since last May, when a new metering policy was introduced to reduce the metering gap of over five million consumers in Nigeria, operators are yet to proffer solutions to the  problem. This, no doubt, has made consumers to depend on estimated billings.

    Though the Nigerian Electricity Regulatory Commission (NERC) recently capped the estimated billings of some classes of customers to reduce the bills they pay to electricity distribution companies (DisCos), the policy may not compel the DisCos to fast-track metering of their customers.

    Sadly, the percentage of people who do not have meters grow daily, a development, which suggests that the problems of unmetered customers are far from being solved. While this lasted, many electricity consumers neither know how their consumption is being calculated, nor how to avail themselves of the opportunity given to them by the Federal Government to acquire meters from any of the 108 approved meter asset providers (MAPs) in the country.

    The result is that many customers who do not have access to meters are made to resign themselves to fate, while others, who by sheer luck are able to get meters. Though the latter are not many, the development has shown that scarcity of meters is far from being solved in Nigeria.

    Industry observers argue that metering has become a challenge, which successive governments contended with, stressing that the 11 power distribution firms authorised by the government to provide meters have failed.

     

    Government’s views

    The Minister of Power, Saleh Mamman, said liquidity is a serious problem, adding that the development informed the decision of the ministry to look for funds.

    He argued that when the DisCos have enough money, they would not have problems of how to meet their obligations to the power generation companies (GenCos), which buy gas from suppliers of the product to generate electricity.

    Read Also: ‘Effective metering key to power sector growth’

     

     

    Operators’ argument

    According to the Chief Executive Officer, Momas Electricity Meters Manufacturing Company (MEMMCOL), Mr. Kola Balogun, illiquidity is the bane of the sector.

    He said lack of liquidity and insufficient funds arising from the absence of single-digit lending from financial institutions also pose serious challenge to metering requirements by the meter providers.

    He urged the government to upscale the 30 per cent Local Content Act on metering to 79 per cent, adding that the idea would enable local meter manufacturers to attract investors into the sector for growth.

     

    NERC’s position

    According to NERC, the number of customers who have obtained meters in the past one year has increased substantially.

    The commission, in its Metering Analysis for September 2019, said three million customers have been able to get meters. NERC stated that they got their meters from the MAPs, stressing that the providers were working to cover the metering gap of over five million people in the country.

    It said there is a remarkable growth in the number of metered customers, adding that the new metering arrangement by the Federal Government to improve accessibility to electricity meters had paid off, and that the country would soon overcome the challenges  of procuring meters.

     

    Customers’ reactions

    Though many consumers have applauded the government for introducing the new metering initiative, others have not. The latter claim that the idea has not helped to provide meters to many Nigerians.

    A private firm official, Isaac Jegede, said he had tried to get pre-paid meters since meter asset providers started operation months ago but to no avail. He said he had for months applied online to New Hampshire Capital for meter, adding that he was yet to get it.

    “For months, I have applied for a single-phase meter for my apartment in Ikorodu, a suburb of Lagos. However, no official of the firm has come to inspect my area for subsequent allocation of meters,” he said.

    He was corroborated by many Nigerians who have suffered similar fate while trying to obtain meters.

     

    Stakeholders’ opinions

    Many stakeholders have faulted the position of the government on metering, claiming that  it is very slow and not helping the growth of the sub-sector.

    The Chief Executive Officer, Power Can Nigeria Limited, Mr. Biodun Ogunleye, argues that the government’s approach was  ambiguous. He advised the government to usie simple methods to address the issue.

    Ogunleye said: “The government is introducing too many ideas to solve simple problem in the power sector.”

  • Pricing, poor infrastructure bane of investment in CNG, says NIPCO

    Pricing, poor infrastructure bane of investment in CNG, says NIPCO

    By Emeka Ugwuanyi

     

    Inappropriate pricing, paucity of infrastructure and lack of a regulating agency are partly responsible for investment deficit in Nigeria’s Compressed Natural Gas (CNG) industry.

    The Managing Director, NIPCO Gas Limited, Sanjay Teotia, stated this during a media tour of some of the company’s facilities in parts of Benin City, the Edo State capital.

    He noted that the development of CNG, used to fuel vehicles for profitability and environmental friendliness, was being hampered by lack of accessibility to land.

    He regretted that with the enormous gas reserves in the country, the sector’s potential was not being fully harnessed.

    Nigeria, Teotia said, will continue to miss the gains of the huge gas reserves if the challenges are not resolved. He, however, lauded the Federal Government’s National Gas Expansion Programme Committee, which was recently inaugurated by the Minister of State for Petroleum Resources, Chief Timipre Sylva; it is chaired by Mohammed Ibrahim.

    The gas chief stated further: “The setting up of the committee was very apt and a clear indication of the genuine resolve of the present administration to tackle the challenges that bedevil the sector and to pave the way for better utilisation of the nation’s massive gas resources in the overall interest of stakeholders.’’

    Read Also: Sanwo-Olu lauds Afriland’s Investment in Infrastructure

     

    Teotia, stated that the company, which got its licence in 2007, has seven CNG stations in Benin, with others in Lagos and Delta states, adding that NIPCO has laid 51km of gas pipeline in Benin to distribute CNG to the seven stations.

    He said: “We have converted no fewer than 5000 vehicles from petrol/diesel to CNG, and now distribute the product to few eateries in the city. We have the capacity to dispense 500 standard cubic meter (SCM) and also dispense to no fewer than 20,000 vehicles here.

    “The sector has the potential to provide numerous job opportunities and create a lot of potentials for the economy and the country once the government provides the necessary framework to enhance its growth.

    “These include appropriate pricing of gas to allow for affordability, and also the issue of land acquisition for building CNG infrastructure must be addressed. State governments can encourage investment in the sector by giving land at a reduced rate.”

    Some of the motorists, who spoke with reporters during the tour, expressed delight on the over 40 per cent saving they make using gas as auto fuel compared to white products such as petrol and diesel. They, however, appealed to the company to replicate the establishment of more CNG across the city and neighbouring states to improve access to the product.

  • ‘NCDMB is Africa’s leader in local content development’

    ‘NCDMB is Africa’s leader in local content development’

    The African Petroleum Producers Organisation (APPO) says the Nigerian Content Development and Monitoring Board (NCDMB) is the leader in local content development in Africa. The regional oil group notes that NCDMB has developed indigenous capacity in skills acquisition and technology development, and highlights some issues in the regional and sub-regional oil industry, reports EMEKA UGWUANYI.

     

    THE African Petroleum Producers Organisation (APPO)  Secretary-General Dr. Omar Farouk Ibrahim has said the Nigerian Content Development and Monitoring Board (NCDMB) is promoting local content on the continent,.

    He spoke at the just-concluded sub-Saharan Africa International Exhibition and Conference (SAIPEC), organised by the Petroleum Technology Association of Nigeria (PETAN), in Lagos,

    He added that NCDMB is the regional leader in local content.

    Ibrahim stated that Nigeria’s Local Content Policy is a model worthy of emulation by other African nations and extolled NCDMB for catalysing the development of infrastructural and human capacities in the oil and gas industry.

    However, he regretted that member countries of the Organisation for Economic Cooperation and Development (OECD), which are more developed, had begun to initiate discriminatory policies towards hydrocarbons as primary energy sources, which discourage research and investment in the sector, noting that such actions would eventually make fossil fuels less accessible and more expensive, and position other sources of energy as viable alternatives.

    He noted that these developments were taking place when Africa is making more finds in oil and gas, hence making it imperative for African nations to take their destinies into their own hands and pursue the development of local capacities to operate the oil industry and use energy to fuel the national, sub-regional or continental economies.

    He acknowledged that significant progress had been made by some countries, pointing out that “Nigeria’s example is worth emulating. I wish to commend the Nigerian Content Development and Monitoring Board for the support it has been giving to a number of African countries.”

    Ibrahim underscored APPO’s belief in the “need to domesticate the oil and gas technology on our continent. No nation or continent will transfer technology to us. We should encourage local content development in the oil and gas industry on our continent”.

    He promised to facilitate more experience sharing between Nigeria and other African states, noting that APPO plans to develop exchange programmes among staff of the oil industry of member countries.

    Read Also: Shift to gas will knock out petroleum subsidy – Sylva

     

    “We also believe that partnership in the development of cross-border energy infrastructure in oil and gas pipelines, electricity, and joint refineries, among others are key to sustainable development of the energy industry in Africa. No one country can do it successfully in isolation,” he added.

    APPO is an organisation of African countries that produce oil and gas.

    The 32-year regional body serves as a platform for cooperation and harmonisation of efforts, collaboration, sharing of knowledge and skills among African oil producing countries.

    Making presentation on “Sub-Saharan Africa local content collaboration strategy”, the Executive Secretary, NCDMB, Simbi Kesiye Wabote, stated that the increasing discovery of hydrocarbon resources in Sub-Saharan Africa is sufficient motivation for governments and operators to collaborate closely.

    He said such collaborations could be deployed using infrastructure development, legal framework, trade agreements, human capital mobility, common industry standards, supply chain development, finance beyond borders to achieve local content practices on a wider scale.

    The NCDMB chief maintained that such collaboration would be a boost towards achieving sustainable development, especially if it is approached from the “comparative advantage” point of view.

    He said Ghana, Sierra Leone, Liberia, Mozambique, Kenya, Tanzania, and Senegal had joined the league of countries with hydrocarbon resources between 2005 and 2015 and more countries would join by 2025.

    On local content, Wabote said it is a sure way to develop local capacities and capabilities across all sectors such that values are retained in-country and by extension in-continent.