News Power
October 5, 2021 No Comments

FG attracts $16.6 billion foreign investments to trade zones in 20 years

The Oil and Gas Free Trade Zones Authority has stated that it attracted $16.6bn foreign direct investment into the economy within a 20-year period spanning 2001 to 2020.

During the same period, the Authority also attracted N255.33bn local investments into the country.

The Managing Director of OGFZA, Okon Umana, disclosed this during an interview with journalists in Abuja, on Sunday.

He added that between January and May this year, OGFZA generated N9.41bn as revenue through the free trade zones.

A breakdown of the revenue revealed that N2.1bn was generated in January, while February, March, April and May had N1.45bn, N4.39bn, N1bn and N453.98m respectively.

He said this was achieved through dedicated leadership as well as the commitment and exceptional quality of members of staff of the authority.

This, he stated, had resulted in huge interests by both local and foreign investors in the zones.

The OGFZAs boss stated that currently, there were about N6.1bn investments that were expected to materialise in the Liberty Oil and Gas Free Zone.

He said: “To grow investment also means looking at the structures within our zones because as I said, you can only attract Foreign Direct Investment if you are globally competitive.

“We took a number of steps; we reviewed our standard of operation, and we came out with a timeline for delivery of our services.

“For example, in the past, we did not have a specific timeline for renewal of licence or to reissue new licences or even to process cargos.

“We came up with specific timelines – we say for example that we will take only 48 hours to clear cargos if the cargos were consigned in Free Zones.

“It will take seven days to renew the licence when all the requirements have been met and 21 days to issue a new licence under the same circumstances.”

In terms of job creation, the OGFZA boss stated that the investments have been able to unlock many direct and indirect jobs thereby empowering many Nigerians.

He said between 2005 and 2015, the authority had created 40,508 direct jobs and indirect jobs with conservative estimates at about 160,000.

He said, “These incentives are applied for activities within zones meaning that when they move items from the zone to any other place, all the taxes will be applied.”

Umana added that between 2005 and 2015, the authority created 40,508 direct jobs with indirect jobs conservatively estimated at 160,000.

Power
April 26, 2021 No Comments

Local content should drive linkages, look beyond economic rents

Notwithstanding the growth witnessed in local content development in the country, indigenous participation in the oil and gas sector needs to look beyond the simple generation of economic rents, and instead focus on the development of linkages that will endear more growth and economic development.

This was the view of an oil and gas expert, Dr. Wisdom Enang while speaking on Nigerian oil and gas local content policy: Gains, improvement, opportunities, and imperatives for the future, at the just-concluded 4th Lawyers in Oil and Gas Conference and Awards.

Enang noted that local content has increased indigenous participation in crude production and exploration as well as a rise in the number of rigs and marine vessels owned by Nigerians from 3% to 40%.

Enang said: “With Nigerians developing competence in jobs that were the exclusive preserve of expatriates, most of the jobs that were executed outside Nigeria are now being performed by Nigerians and in Nigeria. This has led to the retention of a large chunk of the industry expenditure in-country, with the attendant positive impact on employment generation and growth of Gross Domestic Product (GDP).”

He however decried that a notable factor militating against local content development in Nigeria, remains insufficient funds for indigenous companies from Nigerian banks that impede the companies from participating effectively and efficiently.

Although the local content policy has led to increased opportunities for small and medium-sized enterprises (SMEs) in the industry, Enang noted that there are still several bottlenecks to the award of contracts to small businesses in the form of tedious prequalification and tender processes.

“The issue of non-compliance remains a highly debatable topic, with some schools of thought arguing that some multinationals continue to violate provisions of the Nigerian Content Policy through the use of expatriates from foreign technical centres, who perform job functions that Nigerians have the capacity to execute”, he added.

To bring about further development, Dr Enang said for the government to achieve the local content target, it must adopt initiatives to create an enabling environment for increased involvement of Nigerians in the oil and gas industry.

“To achieve full implementation of the local content policy, the government needs to embark on a series of market-oriented policy reforms to integrate the economy towards achieving competitive economic growth and globalization through the use of private sector-led socio-economic initiatives.

“The government must also encourage industrial development by granting liberal tax incentives and strengthening support for local institutions. The role of the small and medium scale enterprises, in realizing the effective implementation of the Nigerian local content policy cannot be ignored. They need to be encouraged and strengthened in terms of finance and operational regulations, because of the critical role they play in the development of the economy.

“The Nigerian local content policies need to look beyond the simple generation of economic rents, and instead focus on the development of linkages that will endear more growth and economic development of the oil-producing regions and the nation. Enforcing local content depends on the availability of an industrial-supply base that can act as growth levers”.

Enang also disclosed the need for a private-public partnership to reinforce the implementation of human capital development through the constant acquisition of skills and technical know-how. The Nigerian Content Research and Development Fund is a good starting point that can advance skills acquisition; however, the expertise of a broad range of research-intensive private and public universities should be actively leveraged to its maximum potential.”

He, however, added that actualizing the goals of the Nigerian local content policy cannot be at the expense of quality, hence, indigenous companies must continue to invest in improving the quality of their products and services, and deliver the same to the Nigerian market at competitive prices.

Source: Guadian

News Power
March 23, 2021 No Comments

NNPC says to expect petrol from Port Harcourt Refinery after 18 months

The Nigerian National Petroleum Corporation (NNPC) said on Monday that the Port Harcourt refinery being rehabilitated for $1.5 billion will start refining gasoline (petrol) within 18 months of the project.

The Group Managing Director (GMD), NNPC, Mele Kyari, who said this in Abuja on Monday, clarified that the approved fund was for complete rehabilitation and not turnaround maintenance.

According to a report by the News Agency of Nigeria (NAN), Kyari said: “During rehabilitation, by the 18th month, part of this plant will begin to produce particularly the gasoline plants.

“What it means in a technical sense is that in 18 months, we will see production coming from that plant; we will follow it plant by plant until we are completely done,” Kyari said.

The NNPC GMD also said that the process of rehabilitation started about 10 years ago but was slowed down due to a number of mistakes and interferences.

He was hopeful the refinery would work optimally for the next 15 years after the rehabilitation.

Source: Daily Trust

News Power Production
March 23, 2021 No Comments

Dangote expects Lagos refinery to be completed by end of 2021

President, Dangote Group, Alhaji Aliko Dangote yesterday said the multi billion dollars and 650,000-barrel per day (bpd) integrated refinery and petrochemical project will be completed by the end of this year, just as granulated urea fertiliser plant at Ibeju Lekki corridor will begin production of fertiliser products next week.

This was even as the Lagos State Governor, Mr Babajide Sanwo-Olu promised to support the ongoing multi-bilion dollars investments on the axis with massive road infrastructure to further open up the economy of the axis and create a more conducive environment for the industries springing up in the area.

The duo spoke with journalists during Governor Sanwo- Olu’s two-day working visit to the Lagos Free Zone, saying that the investments would turn around the state and the nation’s economy.

Speaking on the economic potential of the refinery, Dangote also added that though the Africa’s biggest oil refinery and the world’s biggest single-train facility expected to generate about 230,000 indirect jobs would be completed by the end of this year, production of petroleum products would commence by first quarter of 2022.

The Africa’s richest man disclosed this while fielding questions from journalists after the tour of the project by the Lagos State Governor, Mr. Babajide Sanwo-Olu who went on a two – day working visit with members of his cabinet to the burgeoning industrial hub located in Lekki area of the state. He also stated that the granulated urea fertiliser plant at Ibeju Lekki corridor will commence production of fertiliser products next week.

He said: “OK the fertilizer you will actually see fertilizer within the next one week. The refinery will be finished by the end of this year and product will start coming out by first quarter of next year. ”

He commended the governor for finding time out to visit the refinery during his working visit, saying: “First of all let me thank His Excellency for taking off about five hours to be with us today.

The governor has been around this area for the past two days. Really Mr. Governor we are very grateful for your support for making this place to be investors friendly and all the support you have been giving. Not only to Dangote but to almost everybody and I can assure that this place will be the hub of industrialisation in the country going forward.

On his part, Governor Sanwo-Olu said there is urgent need to assess the level of investment on the Lekki Corridor, saying efforts were being made to address the issues the investors are facing and avert haphazard development in the new Industrial hub informed the working visit.

Sanwo-Olu said the development of Lekki Port being propelled by the operators and owners of Lagos Free zone has gone up to about 60 per cent , saying the state government would ensure that the problems being experienced in Apapa port.

To regulate and guide against haphazard development, Governor Sanwo-Olu said agencies of government would be located in the axis to ensure that the right things are done.

“The ministry of Environment, Physical Planning, Waterfront and Tourism would also have a full presence here.

Physical planning are things we cannot afford to miss out. We need to ensure that the master plan of this area is kept and the new ones we need to look at we will certainly pick them up for approvals that is required so that government can indeed take the position,” he said.

Industry Power
March 23, 2021 No Comments

Nigerian court freezes Shell accounts ahead of $4bn Aiteo lawsuit

A federal court in Lagos, Nigeria has issued an injunction barring Shell’s subsidiares in the country from withdrawing money at 20 local banks until it ringfences potential damages in a lawsuit brought against the supermajor by Aiteo Eastern E&P.

Aiteo is seeking about $4 billion in total over alleged problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought from the Anglo-Dutch group in 2015 and over claims Shell undercounted its oil exports.

Court documents seen by Reuters show that Aiteo is seeking compensation over what it says was the poor condition of the pipeline and associated lost oil sales.

Aiteo also accuses Shell of deliberate improper metering of the Nigerian company’s oil exports from the Bonny Light terminal.

It is seeking $2.7 billion over the pipeline deal plus $1.28 billion for lost oil sales, the court documents show.

A spokesman for the Shell Petroleum Development Company (SPDC) told Reuters the allegations are “factually incorrect”.

“SPDC is working to secure an expeditious discharge of the freezing injunction, which we believe was obtained by Aiteo without any valid basis,” an SPDC spokesman said.

Aiteo declined to comment to Reuters on an ongoing legal case.

The lawsuit is latest in a string of legal headaches for the biggest international oil company operating in Nigeria, Africa’s biggest oil exporter.

A UK court last week cleared the way for local communities to sue the company over oil spills in the West African nation, and last month Shell lost a case brought in the Netherlands by Nigerian farmers and fisherman over pollution claims.

Shell, meanwhile, has initiated international arbitration proceedings against Nigeria over a case relating to oil spills that took place during the 1967-1970 Biafran war.(Copyright)

Power Production
December 17, 2020 No Comments

Nigeria resumes petrol import from China

Nigeria, Africa’s biggest oil producer and exporter, has resumed the importation of petrol from China, the world’s top crude oil importer.

The Asian country shipped 37,000 metric tonnes of petrol to Nigeria in September for the first time since July 2019, data from the General Administration of Customs showed, according to S&P Global Platts.

China, a major exporter of transportation fuels, has extended exports to Africa in recent years.

The first African country to receive Chinese petrol was Togo in April 2018 at 50,000 mt, followed by Nigeria in January 2019 at 51,000 mt, historical GAC data showed.

The most recent diesel exports from China to Africa were in June, with Kenya and South Africa receiving 40,000 mt and 35,000 mt, respectively, according to the data.

China’s annual crude oil imports increased by 0.9 million barrels per day in 2019 to an average of 10.1 million bpd, according to the United States Energy Information Administration.

The EIA said China’s new refinery capacity and strategic inventory stockpiling, combined with flat domestic oil production, were the major factors contributing to the increase in its crude oil imports in 2019.

Last year, China’s refinery capacity increased by 1.0 million bpd, primarily because two new refining and petrochemical complexes came online with capacities of 0.4 million bpd each.

As a result, the country’s refinery processing also increased to an all-time high in 2019, averaging 13.0 million bpd for the year, according to the EIA.

Nigeria has continued to rely heavily on importation for many years to meet its fuel needs as the nation’s refineries remain in a state of disrepair.

Uneven demand recovery in Africa has led to a divergence in support for Asian transportation fuel markets as diesel and jet fuel requirements weaken while demand for petrol remains robust, industry sources said.

The slowdown in Africa’s diesel and jet fuel demand, in particular, has removed a significant pillar of support from Asian middle distillate markets after buoying them for most of the third quarter, the sources said.

The African continent draws most of its petrol and middle distillate imports from the Persian Gulf and the Mediterranean, and an increase in demand typically lends indirect support to Asia, market sources said.

Source: Punch

Power Production
November 10, 2020 No Comments

Improved power supply will lift Nigerians out of poverty – Elumelu

The Chairman of Transcorp and Founder of the Tony Elumelu Foundation (TEF), Mr. Tony Elumelu, has stressed that improving access to electricity remains the single most critical factor for lifting a lot of Nigerians out of poverty and job creation for the teeming youth.

He said this during the announcement of Transcorp Consortium’s 100 per cent acquisition of the 966MW installed capacity Afam Power Plc and Afam Three Fast Power Limited, at an acquisition cost of N105.3 billion.
According to Elumelu, who is also the Chairman of the United Bank for Africa Group, bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission.

“Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable of. Power remains the single most critical factor for lifting our people out of poverty and job creation for our teaming youth.

“The acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria. I am honoured to be working with the federal government and urge it to continue its policy of creating an enabling environment, which sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek.”

Speaking at the event, Vice President, Prof. Yemi Osinbajo, said: “Today marks a milestone for the country with a return to private sector investment in the power sector.

“This investment by Transcorp in acquiring ‘Afam Power Plc’ and ‘Afam Three Fast Power’ is the first of many new investments planned in the sector across the value chain. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.”

Speaking on Transcorp’s track record, the Director-General of the BPE, Mr. Alex Okoh said “Transcorp Consortium is one of the success stories of Nigeria’s Privatisation Programme. Through its investments in Transcorp Hotels Plc and Transcorp Ughelli Power Limited, the consortium has consistently achieved its performance targets as contained in the respective post-acquisition plans.”

Source: This day

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