The Nation Newspaper

Category: Energy

  • DPR aligns with ministerial mandate for industry

    By Emeka Ugwuanyi

     

    The Department of Petroleum Resources (DPR) has aligned its deliverables with the ministerial mandate for the oil and gas sector.

    Its Acting Director, Mr. Ahmad Rufai Shakur, stated this at the opening of the DPR Strategic Management Retreat in Abuja.

    He emphasised that the objective of the retreat was to cascade down the ministerial mandate to all staff of the agency to enable DPR provide the necessary regulatory oversight for the sector, and achieve the next level agenda of the government.

    Shakur listed the ministerial deliverables as, eradication of smuggling of premium motor spirit (petrol) across Nigerian borders, complete Gas Flare Commercialisation Programme, increase crude oil production to three million barrels, reduce the cost of oil extraction, promote the passage of the Petroleum Industry Bill, increase domestic refining capacity, create jobs for Nigerian youths.

    Shakur said the strategic management retreat will further assist the DPR to sustain the tempo of ongoing reforms in the agency which is geared towards aligning with the Agency’s vision of being a world class regulatory agency.

    He tasked the top management of the agency to ensure total alignment of their divisions and zones to the ministerial deliverables as it has been embedded into the DPR’s corporate strategy.

    Read Also: Buhari appoints Auwalu as DPR substantive Director

     

    The Minister of State, Petroleum Resources, Chief Timipre Sylva, who was the Special Guest of Honour, praised DPR for the retreat initiative.

    He stated that there must be a shared vision by all players in the industry for progress to be achieved. Sylva emphasised that the ministerial deliverables must cascade down to all staff as it was the duty of everyone to ensure the success of the mandate.

    He recalled that the deliverables was a product of the ministerial retreat he had earlier in the year reiterated that DPR being the core of the oil and gas sector of Nigeria must ensure the successful delivery of the mandate.

    The minister enjoined the department to swing into action as he has dubbed year 2020 the year to deliver and begin the actualisation of the oil and gas industry roadmap.

  • Firms, NLNG deepen knowledge in oil, gas

    Our Reporter

     

    Global law firm Hogan Lovells has collaborated with Aluko & Oyebode, Lagos Chamber of Commerce International Arbitration Centre (LACIAC) , Legal Division, the Nigeria Liquefied Natural Gas Limited (NLNG) to organise a two-day training session for some workers of NLNG.

    The training took place at the NLNG premises on Bonny Island, Rivers State. It was an opportunity for participants to engage in constructive and interactive sessions with legal experts.

    The panel of speakers included Hogan Lovells’ London-based partners Nathan Searle, Angus Rankin, and Hogan Lovells International Arbitration lawyer Dr. Ademola Bamgbose; Babatunde Fagbohunlu, SAN, Construction Law and Arbitration lawyer Ngo-Martins Okonmah, Dare Senbore of Aluko & Oyebode; and Funmi Iyayi Managing Director, LACIAC.

    The discussions revolved around the management of legal risk, international business disputes particularly with regard to Engineering, Procurement and Construction (EPC) contracts in the oil and gas sector.

    It also included an overview of the governing laws of the industry and challenges experienced by arbitration practitioners in the Nigerian context.

    The session provided a platform for participants to discuss global best legal practices and trends as well as explore the issues and opportunities across the liquefied natural gas (LNG) sector in Nigeria.

    Hogan Lovells partner, Nathan Searle, expressed confidence in Nigeria’s oil and gas industry and said it has a strong future.

    Acknowledging that Nigeria has one of the largest gas reserves in the world, with NLNG being the fifth largest  producer of LNG in the world, Searle said there is a need to further harness the sector’s potential by continuing to build on existing knowledge through trainings like these.

    “NLNG is growing in Africa and looking at Nigeria over the past decade. It has had a significant number of international transactions despite difficult market conditions.

    This has given the industry a strong profile internationally. Through this training, we shared global best practices and solutions that can lead to the sustainable growth of Nigeria’s oil and gas sector; and we are glad to be amongst the thought leaders that shape the way this sector addresses key issues going forward,” Searle said.

    “Discussions such as these provide an opportunity for the industry to focus on processes that will lead to generating increased value.

    We look forward to hosting more engagements like this across various sectors with other leading players in the African market,” he added.

    Read Also: Oando, NLNG seal gas supply deal for Trains 1-3 & 7

     

    Babatunde Fagbohunlu, SAN, Aluko & Oyebode senior partner said: “Large scale projects in the oil and gas sector carry risks and it is important that such risks are properly managed.

    Discussing how to manage such risks at an early stage from both a legal and commercial perspective is critical to minimising disruption to the business and loss of value.

    Training programmes such as this, which bring together legal experts and those working directly in industry to share their experience and insights on managing risks is the right step towards consolidating and building on best practice in the oil and gas sector in Nigeria.”

    The convener of the symposium, Managing Director, LACIAC, Funmi Iyayi, reiterated the body’s efforts towards providing tailored dispute management solutions and assisting businesses not only in the resolution but in the management of disputes through partnerships with local and global thought leaders.

    LACIAC sees an increasing role for arbitration under its rules to be included in contracts including the Nigerian oil and gas and construction sectors to provide for efficient, cost-effective and local dispute resolution of disputes that may arise during a project.

  • One strike, many challenges of power sector

    Nigeria’s power sector is passing through hard times as evidenced by its seemingly intractable problems. Recently, the workers suspended an industrial action which would have had abysmal effect on the economy. Though many Nigerians hailed the development, the strike however was a drawback on the sector and economy, writes AKINOLA AJIBADE

     

    Penultimate week, the Federal Government averted an industrial action that would have thrown the country into total darkness. Precisely on December 11, the Federal Government stopped the strike, after a meeting with the leadership of the National Union of Electricity Employees (NUEE), in Abuja.

    At the meeting, which stretched into hours, the government made the union to call off the strike, which was in its second day. Acting on behalf of the government, the leadership of the House  of Representatives, the Bureau of Public Enterprise (BPE) and the Federal Ministry of Power promised to wade into the matter with a view to addressing the grievances that led to the strike.

    Some of the issues which the government promised to address are compensation of 2,000 workers of the defunct Power Holding Company of Nigeria( PHCN) and recovery of properties of PHCN in the possession of the investors, who bought the assets of PHCN and the payment of severance package for the 50,000 former workers of PHCN, among others.

    Based on this, the government was able to persuade the union to suspend its strike that was billed to last 21 days.

    Prior to this period, there were undercurrents in the sector as operators made moves to call off the strike before it ground the country to a halt. Relevant parties to the privatisation of the sector, especially the BPE, have discussed extensively with power firms and other stakeholders in the value chain on the need to put the planned strike on hold pending the time the government resolves issues, which are germane to the growth of the sector.

    On the long run, the efforts of BPE, House of Representatives and others paid off as the strike was stopped a day after it started.

    One remarkable thing is that the suspension of the strike has strengthened the convictions of many Nigerians that they (electricity workers) can in one voice resist any plan capable of affecting their wellbeing.

    While this lasted, there is the need to examine the cost and implications of the strike on the sector and the economy.

     

    System collapse

    The national grid collapsed less than 24 hours after the strike started. The issue affected supply of power, a development, which resulted in disruption of economic activities in some parts of the country.

    This is one of many issues that affected the operation of the Transmission Company of Nigeria (TCN) this year. Not only did the collapse of the grid hinder TCN from evacuating power to the distribution companies, it required a lot of money to restore.

    The Managing Director, TCN, Mr Mohammed Usman, reiterated the need to keep the transmission facilities working in order to avert disruption of activities in the country.

    An industry official said the issue of managing electricity grid is a critical one as its requires funding and expertise.

    The official said the issue of repairing a national grid is as costly as providing a new one, urging TCN to monitor its facilities well.

     

    Effects on infrastructure

    The power facilities including offices of the power generation companies (GenCos) and power distribution companies (DisCos) were shut down across the country by the striking electricity workers.

    This resulted in power outages in some parts of the country, which meant that the economy would have been grounded to a halt if the strike continued.

    The Enugu Electricity Distribution Company (AEDC) spokesman, Mr. Emeka Eze, said the strike partially affected the operation of the sector.

    In an interview with The Nation on phone, he said the firm continued to render services to its customers amid fears of disrupting activities in the DisCo by the striking workers.

    Eze said: “There was seamless operation at the Enugu DisCo during the strike. However, the strike was nationally coordinated, a development, which suggests that operation of many power firms would be affected if the strike was not suspended.”

    Similarly, the spokesman, Ikeja Electric, Mr. Felix Ofulue, said operation of the firm was affected and the issue affected the company’s coverage area. According to him, it was obvious that the strike would have had a debilitating effect on the service of the firm if had lingered.

     

    Read Also: FG sets aside $1.61bn for 24 hour power supply – TCN

     

    Manufacturing sector

    The sector did not feel the impact of the strike heavily. The reason is because operators in the manufacturing sector have not been regularly accessing power from the grid.

    However, operations of some of their facilities were affected by strike, which had undesirable consequence on their output.

    Sources at the head office of the Manufacturers Association of Nigeria (MAN) said manufacturers spend billions of naira yearly on importing generators into the country in order to provide alternative power to run their operation.

    Efforts to get the President, MAN, Mansur Ahmed, to comment on the impact of the strike on its members, proved abortive, as neither calls nor text messages put across to him was replied.

     

    Improvements

    The Chief Executive, Zenera Consulting Limited, Mr Meka Olowola, said the distribution segment of the power sector would experience changes if allowed to be managed by professionals who have demonstrated capacity to navigate issues in the industry.

    He said issues in the distribution arm of the energy industry requires technical inputs, adding that only the professionals can provide that skills.

    He advised the government to have courage to tackle head-on the issue of tariff, stressing that there are problems in the tariff structure in the power sector.

    He said: “Providing appropriate tariff mechanism in Nigeria is a problem. The Nigerian Electricity Regulatory Commission (NERC) is unable to achieve this goal, and the development has caused more problems for the consumers of electricity.

    “Once the government is able to resolve that issue, coupled with improvement in the facilities of the power distribution companies (DisCos), the firms would not have problem when it comes to distributing energy to the consumers.”

     

    Government’s promises

    The decision by the Speaker, House of Representatives, Honourable Femi Gbajabiamila, to examine the grievances that led to the strike and at the same time ensuring that the House resolves the problems is a good one. However, stakeholders have accused the Federal Government of not keeping to its promises.

    Recalling the problems facing the implementation of Petroleum Industry Governance Bill (PIGB), an Energy Economist, Prof Wunmi Iledare, said the passage of PIGB has suffered delay due to inability of the National Assembly to fast-track the process of passing it into law.

  • Ibadan DisCo promises efficient service

    Our Reporter

     

    Ibadan Electricity Distribution Company Plc (IBEDC) has assured its customers of efficient electricity supply throughout the holidays as all its offices would be open for business.

    Its Chief Operating Officer, Mr John Ayodele, gave the assurance in his Christmas message to customers. He said alternate channels of payment such as the online and USSD would remain operational as usual.

    Ayodele, however, appealed to customers and Nigerians in general to observe safety rules during the holidays to ensure accident-free celebrations. He advised parents to ensure proper supervision of children to prevent domestic and electrical accidents.

    He said: “No cooking or partying under high-tension wires. Switch off all electrical appliances not in use. No engaging of quacks to repair electrical faults. Motorists should avoid drinking alcohol to prevent collusion with electrical poles and accidents.”

    He said IBEDC in 2019 introduced several policies and initiatives for improved service delivery and customers’ satisfaction. He said these included the implementation of the Meter Asset Provider Scheme (MAP) to bridge the metering gap across its franchise.

    Read Also: Ibadan Electricity Distribution Company warns against electricity hazard

     

    “The Introduction of the Advance Metering Infrastructure (AMI) on distribution transformers is to allow for two-way communication between the meter and the utility provider, ensure efficient billing and outage management.

    “The introduction of the Customer Relationship Management (CRM) initiative routed through the Customer care line, gives customers better and faster access to getting their complaints resolved.

    “We focused and made huge financial investment on safety. This led to award of ISO (International Organisation for Standardisation) 45001 Certification on Zero fatality and injury to customers and staff,” he said.

    He said the company also rehabilitated and upgraded over 10 major installations and substations across the franchise, and pledged that the company would consolidate on the polices and more.

    He urged Nigerians to imbibe the virtues and morals of the season by showing love and tolerance, adding that it was time to reflect on the imagery of compassion, hope, humility and reconciliation that Jesus Christ embodied.

     

  • Ihedioha backs SPDC’s gas project in Imo State

    Our Reporter

     

    Imo State Governor Emeka Ihedioha  has pledged the support of the government and people of the state for the success of the multibillion dollar Assa North/Ohaji South Gas development project.

    Ihedioha spoke during a visit to him in his office by the leadership of the Shell Petroleum Development Company (SPDC). He said: “We are determined to work with Shell to build the plant and help Imo State fulfill its quota to the nation’s domestic gas aspiration.

    We are dedicated to making life meaningful for our people and to making Imo State investor-friendly. Imo State shall partner with you.

    We have a civilised state and our hands are wide open to welcome Shell back to its original home in Nigeria.”

    SPDC’s Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, who led the SPDC delegation, described the gas project in the state as the company’s “most important project right now” adding, “We are committed to making the Assa North Gas Project an exemplary one.”

    The project, according to Okunbor, is key to driving the Federal Government’s ambition of marching away from a mono-economy through diverse industrial growth.

    Read Also: Petroleum minister commits to sector’s growth

     

    “It is premier among the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC).”

    The Assa North/Ohaji South gas project is a joint venture project involving SPDC, Nigeria National Petroleum Corporation (NNPC), Total E&P Nigeria Limited (TEPNL), Nigerian Agip Oil Company (NAOC) and SEPLAT, a leading indigenous producer.

    SPDC is expected to manage the upstream operations to produce 600 million standard cubic feet of gas per day, half of which will be processed at a new SPDC JV processing plant and the remaining half sent to SEPLAT for processing at the company’s new gas processing plant.

    The combined volume translates to almost 2,400 megawatts (Mw) of potential electricity generation if used for power generation.

    At the meeting with the governor were the deputy governor, Gerald Iroha; Chairman of Imo State Oil and Gas Committee, John Ottih; and SPDC’s Directors – Toyin Olagunju and Igo Weli.

  • Digitalisation, new technologies to drive petroleum industry

    As global energy consumption continues to increase, operators of the oil and gas industry are increasingly exploring ways to expand production to meet the growing demand. Application of digitalisation and emerging new technologies, according to the industry will make expansion of production, reports CLINTON OBETO.

     

    Since the 1970s, the petroleum industry has served as a major source of income to Nigeria’s economy.  Also, due to the advancement, growth and diversity of the world, the need to create new sources of energy to serve the growing demand becomes imperative.

    It is in view of this that the petroleum industry seeks to broaden production. It has also led the petroleum industry turn to digitalisation, innovative ideas and new emerging technologies that would increase performance, efficiency and ultimately reduce cost.

    New technological breakthroughs in the area of digitalisation now make it possible for oil and gas companies to operate efficiently, improve gains and reduce cost.

    The need for wide application of the new emerging technologies by oil and gas operators took centre stage the 2017 and 37th annual international conference of the Nigerian Association of Petroleum Explorationists (NAPE) with the theme ‘Expanding Nigeria’s Petroleum landscape: Digitalization, innovation and emerging new technologies.”

    The immediate past President of NAPE, Mr. Ajibola Oyebamiji, discussed the influence of digitalisation and emerging new technologies to the oil industry and how it is helping the industry’s current operations and opening up opportunities for new business models.

    Read Also: Mandilas, NNPC open service centre in Abuja

     

    He stated that with cloud competing in digitalisation, operators are able to solve, process and manage large bundle of data, and it also enables the gathering of large volume of data, sorting it properly and making an advanced analysis. This enables experts make decent forecast and define gaps in business models.

    Currently, Internet of things (IoT) is helping to capture and transmit data from free roles and remote location enabling decision making, uploading, monitoring of well site equipment, reduction of operation costs, detection of gaps and anomalies in the petroleum industry.

    It also helps to analyse and visualise data into different platforms as well as secure use of equipment and facilities and helping to avoid future equipment failure or potential security issues.

    Also, sensor technology aids companies track and gather data, track equipment usage and maintenance, which helps to boost operations and optimise production.

    Through digital transformation, it is possible to create a work environment, create business advantages and boost personnel resolution  because it is widely accessible and usable.

    “The petroleum industry has always been in the forefront of developing technology to support her objectives, growing from 2D to 3D and 4D technologies.

    The industry is developing and moving on new and existing technologies to continue to ensure the world’s energy needs are being met safely, sustainably and competently through the best of means.

    He noted the importance of government, policy makers and stakeholders to have the knowledge of how technological changes can be deployed and sustained as key driver in guaranteeing energy security and diversification especially in Nigeria.

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo  Kyari, who was the keynote speaker at this year’s annual international conference held in Lagos, said it was innovation and new technologies that led to the recent discovery of oil in Kolmani Well 2 in the Gongola Basin.

    The discovery remained the biggest indication that modern technology helps in accelerating oil find. He said for over 35 years, the industry could not find oil in the frontier basin but with the deployment of latest technology and innovation using the best and latest  digital solutions, the NNPC was able to strike oil in that region.

     

  • Production targets, cost reduction achievable, says DPR

    The Department of Petroleum Resources (DPR) has committed to collaborating with other agencies to achieve Federal Government’s targets on oil production and cost reduction. To the regulator, reduction of cost of oil production and meeting desired daily production and reserves figures will boost government’s revenues, EMEKA UGWUANYI reports.

     

    Achieving Federal Government’s aspirations, of daily oil production of three million barrels, reserves growth from the current 37 billion barrels to 40 billion barrels by year 2020 and reduction of the production cost per barrel of oil, dominated discussions at the just held stakeholders’ meeting organised in Lagos by the Department of Petroleum Resources (DPR).

    The DPR, also used the meeting to launch new upstream guidelines, which it said will promote efficiency, transparency and accountability in the petroleum sector.

    Speaking at the Annual Rig & Vessel Stakeholders Regulatory Workshop, the Director of DPR, Sarki Auwalu, represented by Deputy Director and Head of Upstream Division, DPR, Enorense Amadasu, stated that the guidelines will guide operators on what is expected of them at every stage of their operations.

    He said: “The essence of our meeting is to engage the industry and sensitise them on the programmes we have embarked upon for the past one year and also to seek more collaborations and for them to buy into our initiatives.

    “The initiatives will promote efficiency in the industry, promote transparency and meet government’s aspirations by keying into its agenda on exploration, achieve the three million barrels per day (bpd) production target by year 2020 and to improve reserves to 40 billion barrels from 37 billion barrels as at today.”

    He assured stakeholders that the agency has accurate data on what is produced daily all over the country. “We, as a regulatory agency, can account for every molecule produced in this country, at the wellhead, at the flow stations and at the terminal. We have all devices to monitor and account for every hydrocarbon produced in the country today.

    “Next year, we will organise production accounting workshop with all stakeholders including Nigeria Extractive Industries Transparency Initiative (NEITI), Federal Inland Revenue Service (FIRS), Oil Producers Trade Section (OPTS), National Assembly and the media for all to understand how we account for every drop of oil produced and exported,” he said.

    Read Also: DPR aligns with ministerial mandate for oil, gas sector

     

    In response to concerns raised by stakeholders on the possibility of multi-layer taxes in the upstream sector, Amadasu said royalty is statutory and it is first line charge. “The other costs people are talking about are the processing fee.

    The new amendment they are concerned about is a token because these are amendments that have not been done in the past 20 years. Thus government is working with all stakeholders to ensure it is reviewed.

    The cost is a minute aspect of the production cost we are talking about. It is less than 0.0001 per cent of the production cost. “That basically will not have much impact on the cost of production.

    But when we talk of cost reduction, we are talking of how we can improve on reducing cost, benchmark our cost with other industry related costs in the Gulf of Guinea, our data acquisition cost and other big item costs.

    “We have also been given a mandate as a regulatory agency to go out and work with sister agencies to reduce production cost by five per cent.

    “In 2020, we will continue with government’s mandate to promote efficiency, accountability and transparency in the sector.

    We will ensure we grow production from 2.2 million barrels per day to three million barrels per day and sustain constant engagement with all stakeholders in the sector,” he added.

  • Oil prices rise on OPEC deficit forecast

    Oil prices rose on Thursday, recouping some of the previous session’s losses after OPEC forecast a supply deficit next year and the U.S. Federal Reserve said the economic outlook was favorable.

    Prices had fallen on Wednesday after a report showed an unexpected increase in U.S. crude inventories.

    The market picked up on Thursday, although the International Energy Agency (IEA) and The Organisation of the Petroleum Exporting Countries (OPEC) offered different prospects for the oil market in 2020.

    Brent LCOc1 rose 41 cents, or 0.6 per cent, to 64.13 dollars a barrel by 1005 GMT. West Texas Intermediate crude CLc1 was up 22 cents, or 0.4 per cent, at 58.98 dollars a barrel.

    IEA said on Thursday that global oil inventories could rise sharply despite an agreement by OPEC and its allies to deepen output cuts and expectations for lower production by the United States and other non-OPEC countries.

    The market, however, focused more on OPEC which said it now expected a small deficit in the oil market in the next year, suggesting the market is tighter than previously thought.

    OPEC and other producers including Russia agreed last week to rein in output by an extra 500,000 bpd in the first quarter of 2020.

    Oil prices were also supported by the U.S. Federal Reserve keeping interest rates unchanged at a meeting on Wednesday.

    “Our economic outlook remains a favorable one, despite global developments and ongoing risks,” Fed Chair Jerome Powell told a news conference.

    “While oil prices are trending higher benefiting from a dovish Fed, a weaker USD, the IEA reiterates that despite the deeper oil production cuts, the oil market is likely to be oversupplied in 1H20,” said UBS oil analyst Giovanni Staunovo.

    Referring to OPEC members Iraq and Nigeria and their weak compliance with the pact in the past, Staunovo said:

    “We remain skeptical that they (Iraq and Nigeria) will achieve their 100 per cent pledge in the first quarter of 2020… (This) could see oil prices coming under pressure again in the future.”

    READ ALSO: Oil prices slide on surprise crude build

    Oil prices fell on Wednesday after the U.S. Department of Energy’s report that showed an unexpected rise in U.S. stocks.

    Inventories of petroleum products also increased with gasoline stocks surging by more than 5 million barrels and distillates gaining just over 4 million barrels.

    Analysts blamed much of the dip in gasoline demand on winter storms that brought heavy snow to several states, making many roads unfit for driving.

    The outlook for oil demand continued to be clouded by U.S.-China trade tensions and uncertainty over whether a fresh round of U.S. tariffs on Chinese goods would come into effect on Sunday.

    China’s commerce ministry said on Thursday that Beijing and Washington were in close communication on trade, declining to comment on possible retaliatory steps if U.S. President Donald Trump imposes more tariffs on Chinese goods this weekend.

    (NAN)

  • Oriental Energy Farms, Unilorin sign pact on food security

    Oriental Energy Resources Limited (OER), an oil and gas company, has through its arm OER Farms Limited signed a pact with the University of Ilorin (Unilorin) to embark on mechanised farming in Nigeria, reports EMEKA UGWUANYI

     

    Oriental Energy Resources (OER) subsidiary OER Farms Limited has signed a 21-year land lease agreement with University of Ilorin (Unilorin) to develop a 10,000-hectare mechanised agricultural project, which will be managed in line with best industry practices to increase productivity within the sector.

    The agreement followed a memorandum of understanding signed by the parties in September, and underscores the Federal Government’s progress towards food security. Improved crop varieties with high-yielding cash crops such as maize, soya beans and cashew are proposed for the project.

    At the signing of the agreement in Maiduguri, Borno State, Oriental Group founder Dr. Muhammadu Indimi said the initiative – a vision of close-to-half a decade – speaks of his commitment to supporting macroeconomic growth through sustainable development opportunities for all.

    The project is also designed to develop the capacity of the Unilorin in agricultural research, improve farm practices, develop young agripreneurs who will give farming a different perspective, promote local inclusion and enhance economic viability in catchment areas.

    Indimi said: “The average yield for a crop like maize by Nigerian farmers is about four tonnes per hectare, while yields are up to eight tonnes per hectare in the world’s most agriculturally advanced nations.

    We are curious about that gap and our aim is to close it by exposing local farmers and students to best industry practices as well as providing much-needed support over the next 21 years. Nigeria can achieve better results and own a robust, thriving agriculture sector with vast export value.

    We are happy to play our modest role in joining President Muhammadu Buhari on the national food security journey.”

    Managing Director, OER Farms, Ibrahim Indimi, added that the collaboration will add value to Unilorin’s Faculty of Agriculture by supporting research and exposing students of the institution to best industry practice in agriculture.

    Furthermore, the hands-on farm management experience will encourage graduates to develop entrepreneurial skills, which will further reduce youth unemployment. The project is also expected to positively impact local farmers.

    Oriental Group has a track record of contributing to sustainable development in Nigeria by promoting equitable quality education and lifelong learning opportunities.

    Another subsidiary, Oriental Energy Resources Limited (OERL), had earlier supported the University of Uyo in Akwa Ibom State by upgrading facilities to enable the university to renew its accreditation of Chemical and Petroleum Engineering Departments. OERL provided funding for a five-year supply of contemporary academic books and laboratory consumables among others.

    Read Also: Nigeria, France sign pact on $475m projects

     

    Similar enhancement of education facilities and learning environment is ongoing at the University of Maiduguri, Borno State, where a Centre for Distance Learning is being constructed by the Muhammadu Indimi Foundation.

    Unilorin Vice-Chancellor Prof. Sulyman Age Abdulkareem stressed that developing the agricultural sector was critical to food security, diversification and job creation.

    He said: “This is a public-private sector partnership that greatly benefits our students, local farmers, government and nation’s revival of agriculture.

    It would also attract resources to the university. Tenacity and generosity describe Indimi. One feels proud as a Nigerian to have someone like him who champions social, economic and humanitarian causes.

    We believe this joint venture will achieve phenomenal successes in the sector.”

    The next phase of the project development will commence in the first quarter of 2020, with site detailing, soil and hydrology tests as well as obtaining a ten-year historical meteorological data.

    The information will determine crop options and farming techniques. It is the goal of both parties that the project will be of value to all beneficiaries, contribute to significant transformation of Nigeria’s agricultural sector, improve crop yield, reduce crop vulnerability as well as increase local and export market potentials.

     

  • ‘Effective metering key to power sector growth’

    Metering is very important to the development of the power sector as it will help distribution companies (DisCos) to make more money, improve their facilities, buy more electricity from generating companies (GenCos) and give more power to Nigerians. The Federal Government is committed to metering Nigerians to achieve all these, the Minister of Power, Mr. Saleh Mamman, pledged during a tour of Momas Electricity Meters Manufacturing Company (MEMMCOL) factory in Ogun State, EMEKA UGWUANYI reports

     

    Effective metering will remain key to driving the power sector to the desired level and the Federal Government is committed to improving the sector with active metering that will meet consumers’ demands and address the sector’s liquidity challenges, among others, the Minister of Power, Mr. Saleh Mamman, has said.

    Mamman stated this during a tour of Momas Electricity Meters Manufacturing Company (MEMMCOL) factory in Ogun State.

    The minister said he was there to see things for himself and establish the company’s capacity to meet metering demands.

    According to him, effective metering is the best option in helping distribution companies (DisCos) get more money to pay generating companies for the power they (DisCos) buy.

    “Metering is one of the things bothering electricity consumers, so when I took over as the minister, I took metering as my priority and as one of the important areas to ensure electricity market liquidity and sustainability. We have to produce meter to get more money for the sector. We will get more money from distribution companies to pay GenCos. That is the only way to do to justify that, is go by metering. That is why I am here to see it and believe it and to also direct on how consumers can get meter soonest,” he said.

    Fielding questions from reporters, Mamman said: “I am here to inspect the factory of Momas Meter Manufacturing Company because I don’t believe in sitting in the office and be listening to stories. I want to see things for myself and today 1 am convinced that we have a Nigerian company that has the capacity and capability to close the metering gap in the country.

    “This has now encouraged me to also tell our local companies that have the capacity to produce meters that are expected and required in-country, to do so.”

    He commended the management of MEMMCOL for building such a standard meter manufacturing company that also meets the Meter Assets Providers (MAPs) specification.

    “I am also very impressed with the local content initiatives of Momas as I can see a 100 per cent Nigerian company producing up to 1,000 meters per day. This is indeed commendable. Momas is one of the top meter manufactures in Nigeria that we should be proud of.

    “We should allow and encourage investors into the country and also give consideration to our own local manufacturers to grow.”

    The Chairman of MEMMCOL, Mr. Kola Balogun, said his company has the capacity to produce above 50,000 smart meters per month if given the support by the government and adequate patronage from electricity distribution companies.

    Read Also: Power sector privatisation fraudulent, says Lawan

     

    Balogun commended the minister for inspecting his facility, and assured him that the company will continue to produce qualityw and standard meters that meet international best standard. “I want to tell Nigerians that we have the capacity and the capability to deliver metering solutions and to also bridge the metering gap in the country.

    “All we need is government’s intervention by making funds available to us (manufacturers) to be able to produce for the larger populace that requires metering. One of the major challenges we face is funding, because the DisCos also need recapitalisation, adequate funding to buy sufficient meters for consumers,” he said.

    On MAPs scheme, Balogun said due to liquidity and insufficient fund, coupled with lack of single digit interest rate from the financial institutions, it is a serious challenge to meet metering requirements of consumers. This is a problem meter providers face.

    He appealed to the government to ensure that local content is entrenched as a policy in the power sector and to compel MAP licensees to comply with local content policy. He urged the government upscale the 30 per cent local content provision in the MAP initiative to 70 per cent to give local meter manufacturers opportunities to attract investors.

    “We can increase our meter production shift from one to three shifts to meet the metering gaps if given the opportunities and patronage,” Balogun said, pleading with the government for an enabling regulation that will enhance support for locally produced smart meters and products. He said the government needed to invest heavily in the sector and, through its regulatory authorities, ascertain that the products meet international standards.