All Posts in "Day: October 7, 2024"

NCDMB Phases Out Middlemen From Oil,Gas Industry

   Mohammed Shosanya

 

The Nigerian Content Development and Monitoring Board (NCDMB),says it has eliminated middlemen from the oil and gas industry value chain and contributed to shortening the oil industry contracting cycle to six months,on account of the three Presidential Directives on Local Content operations issued by President Bola Tinubu in March 2024.

Its Executive Secretary,Engr. Felix Omatsola Ogbe disclosed this in Lagos on Monday while speaking at a breakfast meeting with some media executives.

According to him,NCDMB had complied fully with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which sought to ensure that only local service companies that have domiciled proven capacities and capabilities can participate in oil and gas tenders.

He disclosed that NCDMB has reduced its touch points and fast-tracked projects approval processes, in compliance with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).

He hinted on plans to launch a major initiative tagged “Back to the creeks.” This policy will take the impact and contribution of local content implementation to oil producing communities and other hinterlands across the country.

He dismissed insinuations that local content implementation increases the cost of producing crude oil in Nigeria.

He clarified that the major drivers of increased cost of crude oil production are downtime and disruptions in operations caused by community issues or technical problems.

Other challenges responsible for extraneous costs include the cost of providing security and the activities of briefcase contractors, he said.

He spoke on the Board’s strategies for enabling growth of the industry,stating that NCDMB was working intently to create an enabling environment for international oil companies to take final investment decisions for new projects and was evolving policies to support indigenous oil and gas service companies.

The NCDMB boss promised to revive the insurance services guidelines the Board signed in June 2022 with the National Insurance Commission (NIACOM), which would oblige the Nigerian oil and gas industry to patronize the local insurance sector.

He acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap depends largely on public communication, awareness and support from key oil and gas stakeholders.

He also appreciated the media for projecting the activities and programmes of the Board and assured that cooperation with the media would be deepened under his leadership as the Executive Secretary.

The General Manager, Corporate Communications and Zonal Coordination, Mr. Esueme Dan Kikile, indicated that the breakfast meeting was organised to introduce the Executive Secretary formally to leading media stakeholders.

 

 

 

Other senior management of NCDMB that attended the breakfast meeting included the Director Corporate Services and Capacity Building, Dr. Ama Ikuru; Director Monitoring and Evaluation, Mr. Abdulmalik Halilu; Director Projects Certification and Authorization, Engr. Abayomi Bamidele and Director, Legal Services, Mr. Naboth Onyesoh, Esq.  

Director Corporate Services and Capacity Building, charged media stakeholders to report Nigeria in a positive light, to attract investments in the oil and gas sector.

 The Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu gave an update on the performance of the Nigerian Content Intervention Fund (NCI Fund).

He rated the Fund’s performance as over 90%,judging by the percentage of access by qualified companies and repayment by the borrowers.

He hinted that the Executive Secretary had constituted a team to review the Community Contractors Fund, which is a poor performing product under the Nigerian Content Intervention Fund (NCI Fund).

He expressed hope that an announcement would soon be made on the remodeling of that particular product, new partners and product papers.

The Director Projects Certification and Authorization, Engr. Abayomi Bamidele highlighted the increased number of projects approved by the Board since it started implementing the Presidential Directive on Local Content.

He added that the Board was also supporting companies seeking to fastrack gas investments to take advantage of the Presidential Directive on Tax Incentives,Exemptions and Remissions for the Oil and Gas Companies.

Also speaking, Director, Legal Services, Mr. Naboth Onyesoh commended the media for their support to the Board over the years, which increased the visibility and public awareness of the Board’s functions and achievements.

Online Editor by — October 7, 2024 in Oil&Gas 0
Okunbor Wins PETAN Excellence Award

            Mohammed Shosanya
The Managing Director,the Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair,Shell Companies in Nigeria (SCiN), Osagie Okunbor, has received an “Award of Excellence to an Astute and Visionary Technocrat” from the executive leadership of the Petroleum Technology Association of Nigeria (PETAN).
He received the award in a short ceremony in Lagos, recently, where the PETAN executive, led by its chairman, Engineer Wole Ogunsanya, said:“The award is to acknowledge Country Chair’s leadership of Shell and the long running relationship between PETAN, PETAN member companies and Shell.”
Ogunsanya was quoted in a statement,as saying: “Shell has been a leader in driving the growth of local capacity participation in the Nigerian oil and gas industry. Several of PETAN members had their first breakthroughs with Shell while even more are currently providing services to Shell Companies in Nigeria.”
“PETAN member companies pledge to consistently deliver quality products and services to Shell in particular”, he said.
He also expressed appreciation for the Shell partnership with PETAN and the Nigeria Content Development and Monitoring Board (NCDMB) in the Shell-PETAN Internship program that is giving young Nigerian graduates the opportunity to have a two-year on-the-job training in their respective disciplines, to enhance their employability.
“This program has been a resounding success with several of the interns retained by the participating members”, Ogunsanya said.
Country Chair, Shell Companies in Nigeria, Okunbor, thanked the PETAN delegation for the recognition.
 He said, “The growth of participation of indigenous companies in the oil and gas industry is a good thing. Shell companies in Nigeria retain the commitment to continue to create opportunities for Nigerian companies to participate in our business.”
He said, “For example, in 2023, SPDC, Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas Limited (SNG) awarded $1.98 billion in contracts to Nigeria-registered companies, marking a 3% increase in value from the previous year.
“SCiN also directly employed more than 2,500 people (of whom 96% were Nigerian nationals) with over 9,000 contractors supporting operations.”
He reiterated that Shell has invested in game-changing businesses in Nigeria for over 60 years and will continue to power progress, positively impact lives, and unlock opportunities.
The Petroleum Technology Association of Nigeria (PETAN) is an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream sectors of the oil and gas industry.
 PETAN was formed in 1994 to bring together Nigerian oil & gas entrepreneurs to create a forum for the exchange of ideas with the major operators, industry stakeholders and policy makers.
Online Editor by — October 7, 2024 in Next Level 0
Trinidad Shortlists Oando For Acquisition Of National Refinery

      Mohammed Shosanya
Trinidadian government has shortlisted Nigeria’s Oando Plc,and two other companies as final contenders to acquire the country’s state-owned refinery, which was owned by the defunct Petrotrin.
During a recent budget presentation,the Trinidadian Finance Minister, Colm Imbert disclosed that among the initial 10 proposals, three companies had made the final shortlist including, CRO Consortium, a consortium of three Trinidadian companies, INCA Energy, an American company, and Nigeria’s Oando Plc.
According to him,the bidding process began in February 2024, when the government of Trinidad and Tobago enlisted the services of U.S.-based Scotia Capital to oversee the refinery’s procurement by inviting expressions of interest.
He added: “A formal selective Request for Proposals process will now be initiated to determine the winner amongst these 3 companies, with a view to restarting the Refinery, if found feasible.”
He explained that the proposals received were evaluated based on five criteria which were, a clear restart plan and timeline by the proposing company.
This restart plan and timeline,he said, had to include an asset integrity assessment, utility requirements such as power, natural gas, and water, as well as sources of crude supply.
Other criteria included a viable financing plan that covered working capital, and an agreement with the Trinidadian state oil company, Paria, that safeguarded the national interest in fuel security while addressing the management of Heritage’s crude supply.
 The criteria also included that the offeror demonstrated transparency and openness throughout the process, ensuring smooth information sharing to facilitate its completion.
Colm Imbert noted that the accumulated losses of the refinery as of the last audit was $15 billion, with the country carrying a public debt of $3 billion on behalf of the company. He also noted that when the refinery was shut down in 2018, it was battling with low productivity levels.
Online Editor by — October 7, 2024 in Oil&Gas 0
Creation Of Robust Business Environment Panacea To Nigeria’s Economic Diversification-NESG

       Mohammed Shosanya
The Nigerian Economic Summit Group(NESG),has emphasized the need for creation of dynamic business environment, saying it is crucial for Nigeria’s economic diversification and resilience.
Ms.Ayanyinka Ayanlowo,Acting Head, Strategic Communication & Advocacy,
NESG,said this in a statement on Monday.
She explained that by reducing bureaucratic barriers, improving access to finance, and enhancing infrastructure, Nigeria and Africa can create a fertile ground for businesses to thrive.
The group noted that this approach will not only stimulate job creation and wealth generation but also attract foreign investments, boosting the continent’s global economic standing.
“Empowering businesses with the right tools and support will enable them to adapt to changing markets, drive technological advancements, and contribute significantly to inclusive economic development,” Ayanlowo said.
The group explained that unleasing business dynamism would form a key focus at the forthcoming 30th Nigerian Economic Summit (NES #30), adding that it stands out as a critical area of discussion during the Summit.
“As Nigeria gears up for the 30th Nigerian Economic Summit (NES #30), the focus on unleashing business dynamism, a sub-theme of NES#30 stands out as a critical area of discussion.
“This milestone event aims to create a more vibrant and resilient economic landscape by fostering innovation, entrepreneurship, and competition.
“By reducing bureaucratic barriers, improving access to finance, and enhancing infrastructure, Nigeria can provide a fertile ground for businesses to thrive, stimulating job creation and attracting foreign investments,” the statement explained.
It further said that the Summit slated for October 14th—16th at the Transcorp Hilton, Abuja,would engage stakeholders in critical discourse “to address current socio-economic challenges to ensure stability; explore strategies to improve economic competitiveness; identify pragmatic policies and actions for inclusive growth and development; and prioritise collaborative approaches between stakeholders for progress.”
The Summit,according to NESG, will also spotlight Nigeria’s significance in driving the continent’s transformation through institutions, investment, integration, industry growth, and innovation.
“Under the theme “Collaborative Action for Growth, Competitiveness, and Stability,” NES #30 aims to mobilise leaders towards creating shared opportunities for present and future generations.
“The Summit will emphasize the importance of achieving Africa’s aspirations in a new global context through bold ideas and actions, supported by strong leadership at the industry, national, regional, and global levels.
“As Nigeria and Africa navigate the complexities of the 21st century, the lessons learned and the foundations laid through the Summits are more relevant than ever.
“NES #30 represents a crucial moment for reflecting on our progress and setting a course for a future characterised by dynamic business environments, economic resilience, and shared prosperity,” the statement said.

 

Online Editor by — October 7, 2024 in Business 0
Access Bank Gets Provisional Licence To Establish Commercial Bank In Namibia

 

 

 

Mohammed Shosanya

 

 

 

Access Holdings Plc (‘Access Holdings’),has has obtained a provisional licence from the Bank of Namibia to establish a commercial bank in Namibia.

 

 

The company’s Secretary, Sunday Ekwochi, announced on Monday,in a note investing public and the Nigerian Exchange Limitef

 

 

Commenting on the development, Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said the expansion represents an important milestone towards establishing a railroad in Namibia for intra-African trade within the Southern African region, Africa, and the rest of the world.

 

 

He said:”It cements our commitment to building a robust Southern African banking network to deliver shared prosperity and advance financial inclusion thereby empowering many to achieve their dreams.

 

 

“Our entry into the Namibian market also represents a pivotal step in our broader ambition to build a strong global franchise and will unlock new opportunities for businesses and individuals alike. We look forward to partnering with local stakeholders to drive innovation, empower communities, and contribute meaningfully to the prosperity of the region.

 

 

“We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value to our shareholders, customers, and wider stakeholder groups”

 

 

According to the note,Access Bank’s operations in Namibia is expected to stimulate the local economy and strengthen its position as a leading regional player.

 

 

 

With existing operations in Southern Africa – Angola, Botswana, Mozambique, South Africa, and Zambia – the Bank is well-positioned to offer stakeholders seamless access to diverse opportunities for expansion and collaboration across the region.

 

 

The Bank  said it will be working in the coming months to fulfil the conditions precedent to the grant of final licence and will keep the market informed.

 

Online Editor by — October 7, 2024 in Banking&Finance 0
Nigeria’s Gas Output Drops-NEITI

       Mohammed Shosanya
Nigeria’s  gas production has declined from 2.744 trillion standard cubic feet (SCF) in 2021 to 2.521 trillion SCF in 2022, forcing the sector’s contribution to Gros Domestic Products (GDP) fall from 7.32% in 2019 to 4.34% in 2022,a report by the Nigeria Extractive Industries Transparency Initiative (NEITI),has said
Chris Ochonu,Assistant Director, Communications and Stakeholders’ Management,signed a statement which conveyed the report made available to Premium News on Monday.
It attributed the development to insecurity and oil theft, adding that the sector recorded a slight recovery to 2.491 trillion SCF in 2023.
The statement said,over five trillion standard cubic feet of gas were produced in Nigeria from 2022 to 2023.
“Over five trillion standard cubic feet of gas were produced in Nigeria in the last two years. 
“A break down shows that 2.521 trillion standard cubic feet were produced in 2022 representing a decline when compared with 2.744 trillion standard cubic feet produced in 2021 while in 2023, the gas sector recorded a total production of 2.491 trillion standard cubic feet representing only 1% drop in gas production when compared with the total production recorded in 2022.
“These information and data were contained in the latest oil and gas industry independent report released to the public in Abuja by the Nigeria Extractive Industries Transparency Initiative (NEITI).From the Reports, NEITI further disclosed that a five (5) year trend analysis (2019 – 2023) of gas production in Nigeria showed that the highest production volumes of 3.048 trillion SCF was recorded in 2019 and the lowest of 2.491 trillion standard cubic feet was produced in 2023.
“This represented 82.73% increase in the country’s production capacity last year.On gas utilization, the NEITI Report tracked that a total of 137.361 billion standard cubic feet of gas was used as fuel in 2022 from data provided by only 32 gas companies”.
On the contribution of the oil and gas industry to employment opportunities. during the period under review, the NEITI findings showed that only six thousand, seven hundred and twenty eight 6,728 persons were employed in the sector of which (83%) men while only 17% were women.
“In the same direction, the sector witnessed a steady decline on the sector’s contributions to country gross domestic product (GDP).A trend of the contribution of oil and gas sector to GDP in Nigeria from 7.32% to 4.34% in 2022 and 5.75% to Nigeria’s total GDP of N 202.365 trillion (US$478.06 billion) as at last year 2023.
“The report attributed the decline to dwindling oil production arising from insecurity, oil theft and sabotage”,the statement added.
Besides,the Chairman of the Economic and Financial Crimes Commission,Mr Ola Olukoyede warned all industry players,oil and gas companies and relevant government agencies that refusal to comply fully with the annual NEITI Industry Audit process is considered by the EFCC as a costly mistake adding that where the work of NEITI stops marks the beginning of EFCC investigations.
He disclosed that the current NEITI Report on the Oil and Gas sector is now with the Commission for further necessary action.
He commended NEITI for its credible data and promised to deepen cooperation with the agency.
The Chairman of House of Representatives Committee on Petroleum Downstream, Hon Ikenga Ugochinyere announced that a private member bill to amend NEITI Act 2007 to align with the current realities sponsored by him on the floor of the House has already scaled through first reading.
He advised all stakeholders in the NEITI process to partner with his Committee to amend the NEITI law.
The Civil Society Representative on the NEITI National Stakeholders Working Group (NSWG) Dr Erisa Danladi used the forum to remind the Civil Society and the Media that information and data for the 2022 and 2023 Oil and Gas Industry put in the public domain has provided enough tools for engagements and investigation through constructive advocacy.
The Executive Secretary,NEITI, Dr Orji Ogbonnaya Orji used the opportunity to thank President Bola Ahmed Tinubu Administration for supporting NEITI through his policy of non-interference.
He welcomed the Administration’s support for the Agency’s Open Data policy and announced that NEITI has embarked upon establishing a Data Center to serve as a one-stop shop for information and data on Nigeria’s extractive sector.
The Centre will serve as a warehouse for all extractive industry data in aggregated and disaggregated formats for easy public access by multi-stakeholders, especially the civil society, the media, extractive industry companies, government agencies and the legislature.
Besides,the Centre will also provide data information analysis, training and manpower development in data science education deployment and utilisation required to sustain a robust public knowledge and understanding of Nigeria’s extractive industry.
The NEITI Executive Secretary further explained that under the scope of the first phase of the project, covered under the 2023 and 2024 budgets respectively the hardware infrastructure with integrated communications facilities have been completed since 17th of August 2025 as against the initial projection of March 2024 as a result of complex challenges especially in the area of foreign exchange.
Dr Orji expressed satisfaction with the completion of the hardware infrastructure now in place.
He further stated that the next phase of the project involves content development and management.
This, he said involves data mining, cleaning, data migration, data storage, integration, data visualization and analysis.
He added that the next phase would require “development, design and deployment of suitable software applications requisite skills and manpower including training and retraining of staff.
Dr Orji assured that working under the leadership of our Board, the National Stakeholders Working Group, all these challenges will be addressed and this will put the Data Center into optimal use as soon as possible.
Dr Orji described as most encouraging the growing interests in the project which he described as innovative and the first by any EITI implementing country in the world.
Online Editor by — October 7, 2024 in Oil&Gas 0
Report:Dangote Refinery Will Increase Nigeria’s GDP To $322bn,Stimulate Growth Of Oil Industry

        Mohammed Shosanya
Dangote Oil Refinery will raise Nigeria’s Gross Domestic Product to $322bn by 2025, according to a new report quoted in The Punch Newspapers.
The report, titled ‘Impact of Dangote Refinery on the Nigerian Economy’, which was released recently by Data Services & Resources Ltd, indicated that without the refinery, Nigeria’s GDP was expected to grow by 3.34 per cent in 2024, increasing to 4.13 per cent by 2030.
It noted that with the refinery in operation, GDP growth was projected to rise to 4.15 per cent in 2024 and reach 6.21 per cent by 2030.
The report also stated that Nigeria’s GDP at current market prices would increase from N234.43tn in 2023 to N304.8tn in 2024, with further growth to N364.94tn in 2025.
It added that by 2026, GDP was projected to hit N432.24tn, climbing to N806.91tn by 2030.
The Managing Director at Data Services & Resources Ltd, Afolabi Olowookere,  stated that the refinery’s impact was expected to boost GDP to $370.49bn in 2026, $374.69bn in 2027, and continue rising to $412.91bn in 2028 and $446.98bn in 2029.
It added that the Dangote Refinery, which began initial production in January 2024, was expected to positively and hugely impact the economy.
It stated that the refinery’s processing capacity would hit 650,000 barrels per day by the first quarter of 2025, producing 10.4 million tonnes of gasoline, 4.6Mt of diesel, and 4Mt of aviation fuel annually.
The report also highlighted the contribution of the refinery to fiscal sustainability, stating that it would create thousands of direct and indirect jobs.
It added that it would reduce Nigeria’s reliance on imported petroleum products, and improve the country’s trade balance by increasing exports of refined products.
The report noted that by reducing fuel subsidies and generating substantial tax revenues, the Dangote Refinery was set to strengthen Nigeria’s fiscal position and provide much-needed resources for infrastructure and social development projects.
It maintained that the Nigerian government, through the Nigerian National Petroleum Company, initially held a 20 per cent stake in the refinery, but that had been reduced to 7.2 per cent.
The refinery’s operation is also expected to stimulate growth in the upstream, midstream, and downstream sectors, boosting investments in oil refining, chemical and pharmaceutical products, plastic and rubber production, as well as cement manufacturing,according to the report.
Online Editor by — October 7, 2024 in Oil&Gas 0
CBN Sheds Light On Implementation Of Electronic Foreign Exchange Matching System

 

 

 

Mohammed Shosanya

 

 

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, says the bank’s decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in the understanding that trust is essential to central banking.

 

 

He disclosed this when he addressed members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”

 

 

 

Mr. Cardoso reiterated that the CBN’s move was to enhance transparency and provide more accurate oversight of foreign exchange transactions.

 

 

 

He said:“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. Our decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in this understanding.

 

 

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets,” he added.

 

 

 

Mr. Cardoso,who marks one year in office as CBN Governor, this week, told his audience that leadership, especially as the head of a central bank, often requires making difficult and sometimes unpopular decisions.

 

 

 

He emphasised that the Bank is a listening institution, unafraid to reconsider decisions if they fail to meet its original objectives.

 

 

“In the face of economic challenges, it is imperative to focus on core objectives—restoring the credibility of the institution, building trust in the financial system, and, most critically, containing inflation. These are not just strategic goals; they are foundational to any meaningful recovery,” he said.

 

 

Speaking on his journey on the saddle, Mr. Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took.

 

 

He said:“Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.“Credibility is earned by consistency.

 

 

The decision to close this gap, while painful in the short term, sent a message to market participants that the CBN was committed to transparency and sound monetary policy,” he added, noting that speculative trading had been reduced, and stability was gradually returning to the currency markets.

 

 

 

Noting that containing inflation remained the Bank’s core mission, he acknowledged that the CBN was yet to meet its target.

 

 

He stressed that recent declines reported by the National Bureau of Statistics (NBS) in July and August 2024 showed that the CBN was moving in the right direction. He explained: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move.

 

 

Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation.

 

 

Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these.Highlighting key leadership lessons, Cardoso said: “Leading through challenging times means avoiding the temptation to take on too many initiatives.

 

 

The Central Bank must focus on its core mandate—price stability. It is easy to become distracted by various political and economic pressures, but as a leader, one must prioritise.“Effective communication is as important as the right policy. Clear and open communication fosters trust.

 

“From publishing the results of the Dutch Auction to ensuring regular updates on economic data, transparency has been our guiding principle.

 

“Trust is built on the belief that a central bank will take the necessary steps to ensure economic stability, even when those steps are uncomfortable or politically contentious,” he declared.

Online Editor by — October 7, 2024 in CBN 0