The Nation Newspaper

Tag: infrastructure

  • ‘Africa needs infrastructure to develop’

    THE president of the Africa Export-Import Bank (AFREXIM), Mr. Jean-Louis Ekra, has identified infrastructure inadequacy in Africa as an impediment to growth of the continent, saying it is responsible for industries operating on the continent not beeing able to compete with the industries in other parts of the world.

    He added, while speaking at a workshop at the Annual Meetings of the World Bank /International Monetary Fund, in Tokyo, Japan, that concrete steps must be taken to address the problem if the continent was not to be left behind.

    Ekra lamented that even within the continent, it had been extremely difficult to trade among member states due to lack of transport facilities such as good roads, rail and effective flights.

    The AFREXIM boss lamented that Africa “has the highest cost of transport in the world”, which he noted was impacting negatively on the cost of goods and services even among neighbouring countries.

    Ekra said, “In the whole of Africa, no single kilometre of rail has been added since independence”, adding, we must act fast.”

    He said that in the face of the enormous challenges, “innovation in financing instrument is key” and that pension funds should be deployed to provide long-term infrastructure funding as was the case in the United States of America and elsewhere in the world.

    Ekra revealed that annual financing requests to the bank had grown as high as $25bn per annum and pledged to focus on value addition in the consideration of loan requests by private sector operators in the region.

    “We will focus on value addition, not on duplication. We will not want to repeat what other banks are already doing. We want to add value to exports”, he stressed.

    Ekra advocated the use of some of the Africa’s $468bn foreign reserves, now sitting in European and American banks, to provide the long-term financing required for infrastructure development on the continent.

    He said that the position of the bank was informed by the fact that the continent, which currently suffered a wide gap in infrastructure development, could put some of its reserves to better use, rather than allow them idle away in foreign regions.

    Nigeria currently has over $ 41bn in foreign reserves and targets $50bn in the months ahead.

     

  • US trade agency, gas giant partner to boost infrastructure

    US trade agency, gas giant partner to boost infrastructure

    They are giants in every sense. Even in gas flaring, Chevron, ExxonMobil and Shell are lords. The latest bulletin of the Nigerian National Petroleum Corporation (NNPC) shows that between January and June, they took the lead in spewing gas that would otherwise have yielded N99 billion for the country, if they had been compressed or liquefied.

    In the first six months of the year, 222.8 million standard cubic feet (mscf) of gas were flared. Of this, Shell, Chevron and ExxonMobil contributed 67 per cent.

    The oil giants are not entirely to be blamed for gas flaring. Reason: infrastructures to pipe the gas to where it can be turned to Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG) are not sufficient. This is why the decision of the U.S. Trade and Development Agency (USTDA) to help shore up the gas infrastructure is seen as a plus for the oil and gas industry and the country.

    The agency said the goal of the grant was to support the development of compressed natural gas (CNG) infrastructure in Nigeria. The grant for this has been awarded recently to Oando Gas & Power Limited. The agency said: “The grant will fund a feasibility study to evaluate the viability of developing large-scale CNG refueling infrastructure in Lagos State, made possible because of Nigeria’s growing pipeline network. The new infrastructure would include the construction of numerous refueling stations across the state as well as vehicle maintenance and repair facilities. The study will also provide an analysis of policy and regulatory issues surrounding development.”

    U.S. Consul General Jeffrey Hawkins said the completion of the project would help deepen the domestic gas market.

    He said: “The completion of this project will play a critical role in the Government of Nigeria’s efforts to broaden and deepen the country’s domestic market for natural gas. This USTDA-funded initiative also holds the potential to generate significant U.S. exports of goods and services as well as build business relationships between U.S. industry and Nigeria’s leading gas company.”

    The $494,000 grant was signed at the U.S. Consulate in Lagos by Hawkins on behalf of USTDA and by Chief Executive Officer Mobolaji Osunsanya on behalf of Oando Gas & Power, which owns and operates the country’s largest natural gas distribution network, with approximately 62 miles of pipeline already present in Lagos State and another 80 miles in progress.

    USTDA, in a statement, said: “The company has identified the opportunity to develop the large-scale CNG infrastructure in order to provide cleaner and cheaper fuel to private and commercial vehicles throughout the region.

    “The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries.”

    The journey to the partnership started late last year when OG&P announced that it had entered into agreement with the USTDA to jointly fund a feasibility study towards the development of an interstate natural gas transportation pipeline from the Excravos-Lagos Pipeline System to other Southwest States.

    According to the company, the “study will evaluate technical and economic considerations for the development of a natural gas pipeline originating in Sagamu in Ogun State and passing through Ibadan (Oyo State) and Ilorin (Kwara State) before terminating at Jebba, Kwara State. The pipeline will also have extensions to the adjacent states of Osun and Ekiti. The supply of natural gas to the Southwest States will provide an opportunity for industries in the region to access a cheaper, reliable and cleaner fuel that will boost power generation and economic growth through increased industrialization. This development is in line with the current drive by the Nigerian National Petroleum Corporation (NNPC) to boost domestic gas supply under the Nigerian Gas Master Plan.”

    Osunsanya added that: “The USTDA assistance provides the much desired boost to our aspiration to develop the Nigerian Gas Grid and in so doing, support the Federal Government in achieving its gas revolution agenda. Oando Gas and Power continues to seek opportunities to expand its gas infrastructure to reach more industries through pipeline distribution grid and Compressed Natural Gas (CNG) stations.”

    USTDA chose Oando Gas and Power Limited because it pioneered the private sector piping and distribution of natural gas to industrial and commercial consumers.

    The company said: “With 100km of pipes already laid in Lagos State and another 128 km in progress in Akwa Ibom and Cross River States, we are taking bold steps towards building sub-Saharan Africa’s largest gas pipeline network.

    “Over the years, we made significant investments in the development of gas and power infrastructure that assure reliable supply of natural gas including high pressure transmission pipelines, gas processing facilities etc. Our aspiration is to replicate the success recorded in our Greater Lagos Natural Gas Distribution in other parts of Nigeria and West Africa whilst we strive to expand our horizon in Independent Power Generation to captive opportunities in locations where we have gas infrastructure and Exploration & Production assets.

    “At Oando Gas and Power, the nature of our business pre-disposes us naturally as supporters of industrial and commercial concerns by offering them cheap and affordable energy solutions which translates into significant cost advantages to the organizations that we serve. We will continue to consistently demonstrate competitive leadership in the Nigerian energy market.”

     

    Ending flaring by December 31

     

    The Petroleum Industry Bill (PIB), which is before the National Assembly, wants oil companies to end gas flaring by December 31, a development considered a tall order given the high level of flaring still going on.

    A draft of the PIB said: “Any licensee who flares or vents gas without the permission of the minister in (special) circumstances … shall be liable to pay a fine which shall not be less than the value of gas.”

    Gas flaring has been illegal in the country since 1984, but deadlines always passed with the hazardous activity still going on, with oil companies and the Federal Government blaming each other for a lack of infrastructure needed to trap and pipe flared gas.

    The USTDA initiative is considered by industry watchers as capable of helping curb flaring. Observers also believe that other initiatives such as the LNG projects must be fast-tracked.

     

    Other efforts at curbing flaring

     

    Former Heads of State Gen. Yakubu Gowon and Chief Ernest Shonekan are championing the call for curbing flaring through LNG projects.

    Gen. Gowon, on a recent visit to the NLNG Plant in Bonny Island, said: “In just 13 years, Nigeria LNG Limited has brought in over $51 billion in revenue, delivered $9 billion dividends to Nigeria and paid $10 billion to the Joint Venture companies.

    “It is therefore very disheartening if one stops for a moment and thinks about how different this country would have been if we had the benefit of an LNG plant since the 1960s. While such income would have been channeled towards roads construction, provision of basic amenities such as education and health, the business would have created jobs for young Nigerians, who are currently roaming the streets in search of job.

    “Think of how much cash, sorry gas, we burnt between when we found oil in 1957 and when Nigeria LNG was able to start monetising our gas resources in 1999. Last year, this country flared over 460 billion standard cubic feet of gas that, if processed and exported, would have fetched the country over $2 billion and minimised the health and environmental impact of gas flares.

    “Think of how oil palm industry left Nigeria for Malaysia. Think of how athletics – we won gold at the Sydney Olympics 12 years ago – left Nigeria for Jamaica. And the worst of all, countries we started out with in the LNG business have all left us behind.”

    The former Head of State frowned at the rate at which Nigeria is fast losing its leadership in LNG market, urging the Federal Government to intervene urgently.

    He added: “According to experts, all the LNG projects on the drawing board in Nigeria (NLNG Train 7, Brass LNG, OKLNG) will add about 30million tonnes of LNG to our national output, which is not that much when we compare with Australia which has only 60 per cent of our reserves but effectively generates much higher domestic electricity and will soon be exporting much more LNG than the all the LNG companies in Nigeria combined.

    “We can’t afford to sit on the fence any longer. The time to build Train Seven is now! Nigeria LNG Limited has become too much of a good example to be allowed to fail; too much of a national beacon to be allowed to stumble; too much of a winning model to switch midstream. I have in private discussions with the management of Nigeria LNG Limited been assured that Train Seven will provide no fewer than 10,000 construction jobs; will attract over $8 billion in Direct Foreign Investment with its strong balance sheet; and will increase monetisation of gas resources, otherwise still being flared.”

    Shonekan recently urged President Goodluck Jonathan to approve the Train 7 of the NLNG Plant and other LNG projects.

    The elder statesman said: “The LNG market is tightening and other nations are not staying idle. For instance, the United States, formerly a major LNG export destination, will become a net LNG exporter by 2016, starting at 1.1 billion cubic feet per day and rising to 2.2 bcf/d in 2019. On the other hand, Nigeria LNG’s 6-train facility has a capacity for 22mtpa on LNG and up to 5mtpa of Natural Gas Liquids (NGL).”

    NLNG Managing Director Babs Omotowa said delay in the progress of LNG projects may dip Nigeria’s market share in the global liquefied natural gas supply by a marginal 5 percent in 2017.

    Omotowa, while speaking at the 2012 edition of the Nigeria Oil and Gas (NOG-12) conference in Abuja, said output has stagnated at 22 million metric tonnes per annum.

    He said: “Looking at the market share dip to 10 percent in 2008; which is now 8 percent and will be 5 percent by 2017. Accelerated progress on Train 7 and other LNG projects will help build a better Nigeria.”

  • Gombe issues N20b bond for infrastructure

    The Gombe State Government has floated a N20billion seven-year infrastructure bond.

    The government floated the bond in Abuja on Friday under its N30 billion debt issuance programme.

    The government explained that “the amount would enable the state to restructure its finances as well as carry out infrastructural programmes to stimulate activities in key sectors of the economy”.

    At the completion board meeting in Abuja, Governor Ibrahim Dankwambo said the bond, which would be issued at a fixed rate of 15.5 per cent, would “help transform the state in line with the agenda of the current administration”.

    The governor said the state had issued an “Irrevocable Standing Payment Order (ISPO) that would allow for periodic deduction of money from the state’s statutory allocation from the Federation Account into a sinking fund”.

    According to him, this has been approved by the Ministry of Finance to ensure a quick repayment of the bond.

    Dankwambo explained that the state had, in the last one year, worked hard to restructure its finances.

    Since May when his administration was sworn in, the governor said the state has incurred contractual liabilities of N18 billion, from which N7billion is for loans obtained from the money market.

    This, he said, was unhealthy for a state that needed to channel more resources to capital projects.

    Dankwambo said the money market loan had been reduced to N3.5 billion, adding that with the “floating of this bond, in the next one to two years, most of us will be proud to be associated with this. In addition, we have about N14 billion in our reserves and that is why we have been able to carry out our projects without interruption”.

    The Commissioner for Finance, Alhaji Hassan Muhammadu, said the projects to be funded with the bond include roads, a nursing school, the establishment of a college of education and 40 new model primary and secondary schools.

  • ‘Govt must improve infrastructure to lift education’

    ‘Govt must improve infrastructure to lift education’

    Government needs to up the ante in improving education of the youth and their literacy level.

    Such improvement should come in terms of better facilities and welfare of teachers as well as strengthening of public tertiary institutions and making their tuition affordable for indigent parents.

    The observation was made by the manager, Barack Obama American Corner, Mrs Louise Ekeneme, at the World Literacy Day organised by the Ovie Brume Foundation in conjunction with the Barack Obama American Corner, which shares the same premises with OBF at its Victoria Island annex, Lagos, last Friday.

    The Barack Obama American Corner, which was commissioned in 2009, is the Public Affairs Section of the United States Embassy that provides access to reliable information about the US to the public.

    Mrs Ekenem said the partnership between the two organisations was informed by the need to further encourage literary among children.

    Comparing her days in school, Mrs Ekeneme said owing to stable economy, teachers’ welfare packages in public schools then was far better to what obtained now.

    She said: “In our schools days, teachers were better probably because the economy was better then. But today, teachers engage in all sorts of things that probably take their time and hamper their commitment to teaching children as in those days. So, there is a drop in the level of education those children get.

    “We have children in our foundation that are 12 years and above and yet cannot neither read nor write. We have children that visit the American corner that are six but do better than those at 12 in public schools. So, it has a lot to do maybe with the children that attend these schools or the level of knowledge imparted in them by their teachers.

    “A lot of private universities are coming up owing to government’s privatisation initiative but how many parents can afford their tuition. Government should invest more in our teachers and our educational sector. Don’t blame the people in the educational sector, if their salaries are not enough they will definitely look for something else to do to make ends meet. Philanthropists should also contribute more in curbing the decline teachers are giving out to the children.”

    She praised the federal government for its various initiatives towards improving the level of literacy.

    The OBF Special Project Manager, Christal Ogene, said findings by the foundation, over the years, pointed to the fact that literacy level in public schools keeps declining due to indifference and poor reading habit.

    “Through our works with students over the years, we found out they are not reading at the level they are supposed to be. Some of them will fold their hands and say after all, the school keep on passing them from one level to the other. But why is it that people need to read? The purpose is to have basic education, graduate, get a job; and be able to read and communicate well.

    “In Nigeria, one of the problems we have over the years is intergenerational poverty. So, we have underprivileged children who lack the necessary skills to get out of that cycle of poverty. They are often engaged in menial jobs which often do not require reading and writing and basic english and arithmetic. But these children need the basic math and English literacy in order to progress.

    “The OBF wants to be the pioneer of literacy. We want to say parents, read to your children; buy them books. Let parents, while their children are young, equip them because their only job is to go to school. We want to encourage the society as a whole to show more interest in literacy in children,” she said.

    Nigeria is a developing country the governments are putting certain structures in place to encourage literacy. For the children in OBF, we are realise that their literacy level does not measure to their age. We offer assessment test for these kids when they come to us and from every test we d conducted in or literacy programme, we have one or two people that are above average. The remain are below average hence we embarked on series of literacy programmes which reading is also part of.

    Maryam Alli an SSS2 pupil of Kuramo Senior College Lagos who participated in a reading session of a book – A City Boy told The Nation she found the book exciting.

     

     

    She said: “The book told us about a brilliant boy who sustained his brilliance up to the university level. The book was educative and we are telling more children to come join us and share in the knowledge we are acquiring here.”

    Muhhammed Alli who joined the OBF Youth Centre at its inception nine years ago, is now an undergraduate of the North American University Republic of Benin.

    Alliu recalled his some of his gains with OBF.

    “I had a live interview with Channels TV via the help of the centre. The Society for Performing Arts also gave me scholarships to learn dance via the foundation. I also became computer literate and also improved on my vocabulary while the centre,” he added.

    The Ovie Brume Youth Centre is a project of the OBF which was formed in 2003 in honour of Ovierhire Kesiena Brume who died tragically in 2002. Its core programmes include art, dance, music, computer literacy, drama literacy and numerical classes, among others.