Recently the new adminstration of Bola Ahmed Tinubu did the unthinkable! He did what others have failed or scared to do which is yank off the fuel subsidy! Though the organised labour are braving up for a showdown from Wednesday but the subsidy must be removed argued the economists.
Just thinking of this fuel issue and it’s attendants issue! Well it is unfortunate that Nigeria is an abberation! The only country that is a crude oil producer without a functional refinery! Also it is the only country that is OPEC member that imports refined products and has high cost of fuel unlike other OPEC countries!
To me,That is the cost of ineptitude foe years from Obasanjo to Jonathan (that one is the worst of the all) never seen a weakling like him! Coming from oil producing region yet couldn’t even build a single refinery! Then Buhari came to down with all whatnots though some sections of the country warned! The subsidy has been removed with some against and while few are for but the Labour will strike on Wednesday! So they said !
But wait a minute, this fuel issue will make us re evaluate our movement! You will park car and use public transport! If your kids school are far, You bring it nearer to reduce logistic cost! If your office is far you do something about it and make it nearer or work from home! If your mosque or church is far, try make it nearer ,God is everywhere …this is to reduce logistic cost! Remember that fuel was increased but not salaries .
Now are you a businessman,you must know that customers will not come to market anyhow these days! You must invest in online and virtual presence ,this is where MENXTT TECHNOLOGIES comes to help SMEs like you to get a marketshare! If you run a school, also try eLearning solutions for kids during holidays cos parents can’t be spending lots to send their kids to school .
Are you into religion or church ! You must start investing in video streaming and internet! Since COVID 19 church attendance has reduced and in places like Eastern Nigeria people are leaving churches just like Europe.You must take the gospel to people as Jesus Christ mandated us and you can do this by investing heaving in online presence and internet! Bro Ebuka Obi is doing fantastic here…lord bless his soul ! This isn’t the time you will seat and wait for workers ! You must recruit hands and pay consultants to handle your PR and virtual presence, talk with MENXTT TECHNOLOGIES here..they even have a church management software also
Now this is the time to start thinking! Charles Darwin in his theory of survival of fittest made it know in clear terms that the organism that fails to adapt will die off! Will you adapt or die off? Think of this !
Gbite Falade, CEO and Managing Director (MD) of oil and gas investment company, Niger Delta Exploration & Production (NDEP), will participate at South Sudan Oil & Power (SSOP) 2023 (https://apo-opa.info/3pCPCUc) as a speaker. His participation demonstrates NDEP’s commitment to technical development and oilfield innovations in East Africa.
In 2012, NDEP established a strategic partnership with South Sudan’s National Oil Company, the Nile Petroleum Corporation to form the Nile Delta Petroleum Company Joint Venture for the purpose of optimizing crude oil production in the East African country while bringing brownfield, power, and production optimization techniques to South Sudan.
Falade’s participation at this year’s edition of SSOP 2023 will serve to solidify South Sudan’s position as the nexus of regional energy cooperation
A fully integrated energy company that operates the 12,000 barrel-per-day Ogbele Marginal field in the eastern Niger Delta Basin, NDEP is Nigeria’s foremost indigenous and independent operator of small- to medium-sized fields and has been active in the development of downstream, midstream, and upstream assets throughout the West African country.
NDEP’s ongoing relationship with South Sudan has resulted in the optimization of crude oil production and the commercialization of gas through the implementation of gas production, processing, distribution, and sales projects, thus resulting in an increased volume of net crude oil production.
“Falade’s participation at this year’s edition of SSOP 2023 will serve to solidify South Sudan’s position as the nexus of regional energy cooperation,” states Energy Capital & Power Senior Director, James Chester, adding, “As the only major oil producer in East Africa, South Sudan stands to benefit from Nigeria’s expertise across the exploration and production industries. SSOP 2023 provides the opportunity for the two to strengthen bilateral relations even further.”
Organized in official partnership with South Sudan’s Ministry of Petroleum SSOP will be held under the theme, ‘The Engine of East African Growth’, and will demonstrate the country’s role as a key player in the development of African energy. Taking place in Juba from 14-16 June 2023, the sixth edition of SSOP will deliver new deals, new investments and new relationships with global industry leaders while fostering development across the entire energy value chain.
Directly or indirectly, officially or unofficially, it is clear that the cap on the pump price of Petrol (PMS) has been removed. All over Nigeria, for a few months now, the price of Petrol has varied from one filling station to the other. As at 6th of January, Prices ranged from a minimum of 240 Naira per liter in Benin, 340 Naira in Kaduna, 360 Naira in Umuahia, 400 per liter in Owerri to 500 Naira per liter in Port harcourt , no filling Station is selling at the so called controlled price, except in some filling stations in Abuja and Lagos. And nobody is enforcing any price as it used to happen in the past. So it is clear we have deregulated. Thats fine!
I think the Government should own up and announce this policy officially. It is deceitful and dis-ingenious for this Government to announce that payment of subsidy will end in June, when they would have ended their regime. Why wait? Why make such deceitful proposition? Who will enforce the plan, Buhari/Oil Minister or the new President? I urge the government to come clean and level up with the citizens instead of this deceit and hanky-panky game with our commonwealth and citizen wellbeing.
By announcing the deregulation now, which is already a fiat accompli Nigerians will attain the following benefits:
First, an official deregulation will mean, that many more companies and oil marketers can import fuel under the supervision of the regulatory agency, thus immediately easing the scarcity and ending the double jeopardy of many motorists and road users. For months now many motorists spend hours and in some cases, days and nights trying to buy the product at inflated prices. They lose many productive hours searching for petrol and when they find it, they pay exorbitant prices. Those who buy from hawkers run the risk of buying adulterated fuel which destroy car engines, in addition to the indignity of buying petrol from hawkers. This is not to talk of the misery of those who travelled in commercial vehicles this season. Many were stranded at motor parks as they found that their budget could not meet the daily changing fares!
Secondly and most important, an official deregulation now will obviate the need for more subsidy payment and at least we can save the 3.5 trillion Naira budgeted for the first six months of this year by this outgoing government. 3.5 trillion Naira can do so much for our infrastructure, especially when it is noted that only 5.9 Trillion is the entire Capital budget in a 22 Trillion Budget for 2023. It can build several roads and bridges across the Country or transform our entire Educational and Healthcare system.
Thirdly it will disabuse the minds of some Nigerians who speculate that this 3.5 trillion naira has been put in the budget for other purposes including Election funding and send forth and parting gifts for the Government officials and politicians of the Party in power. This set of Nigerians can see that government has ‘surreptitiously’ deregulated while still retaining subsidy payment. And they ask for what purpose? Hence the speculation.
To deny this speculation and save a whooping 3.5 trillion naira, I urge this Government to formally announce the deregulation now or if they are ‘afraid’ to do for whatever reason, then they should open up the market ‘surreptitiously’ as well so that supply can expand and allow market forces to fix price. To allow only NNPC to be importing while removing the price cap after paying subsidy is profoundly confounding. The current situation is deeply damaging Nigerian Economy, increasing poverty and misery for many Nigerians while creating a lot of opportunities for arbitrage and corruption for NNPC and Government officials. President Buhari should bite this Bullet and save Nigerians from multiple jeopardy which they are facing right now. It is true that we have lost the battle against corruption, but we must not watch helplessly as Poor Nigerians are openly ‘raped’ and ravaged by the ‘oil curse’
*Mazi Sam Ohuabunwa* _OFR,MON, NPOM_ _Convener, the NEW NIGERIA GROUP (NNG)
Global technology company, SLB (formerly known as Schlumberger) (www.SLB.com), officially opened its new West Africa regional office in Lagos, Nigeria. In October 2022, the company launched a new identity focusing on energy innovation and decarbonization to address the world’s energy needs today and to forge the road ahead for the energy transition. The new West Africa office reflects this new identity and will optimize employee experience and create a sustainable business environment for all stakeholders.
Its modern design embodies the company’s bold sustainability roadmap through daylight harvesting, interactive and collaborative hotspots for employees, disability access and other exciting features that bring forward the company’s evolved identity and culture.
Delivering his speech at the office opening in Lagos, Sopiribo Ideriah, managing director for SLB in West Africa countries, said,” As a technology leader, our unmatched market breadth, differentiated performance, and unique portfolio of products and service, has always positioned us for growth and advancement in the energy industry. All of this is owed to our people, who are the backbone of our organization. I would like to thank all SLB staff – past and present – for their commitment and passion in delivering high quality services to our customers.”
The ceremony coincided with the celebration of the 70th Anniversary of SLB’s presence in Nigeria
The ceremony coincided with the celebration of the 70th Anniversary of SLB’s presence in Nigeria. “For seven decades, SLB has worked in Nigeria as a local company. In 1952, SLB logged Nigeria’s first commercial oil well in Oloibiri, Bayelsa State, and has since logged several other historic wells in the country. Our ability to continuously drive technology innovation has led to the development of new oilfield technologies that enhance our customers’ operational performance, while maintaining the highest standards in HSE, ultimately delivering value to all our stakeholders. Investing in local socio-economic projects and developing local talent through our borderless career culture, we have significantly contributed to the capacity development of Nigeria and are confident that we will continue to do business in ways that benefit our people, society, and the country.” Ideriah added.
Also speaking at the event, Wallace Pescarini, president of the Offshore Atlantic Basin at SLB, said “I would like to take this opportunity to express my gratitude to our various stakeholders for their support over the years, including our clients, suppliers, contractors, and other business partners. We are thrilled to live our purpose of creating amazing technology to unlock access to energy for the benefit of all and could not have achieved this without your trust. As we look to the future and its evolving energy landscape, we remain committed to creating value for our customers and key stakeholders in Nigeria.”
Following the opening of its regional head office, SLB hosted key stakeholders at a dinner ceremony where the company’s historic past and innovative present were recognized and celebrated.
Innovative fuelless power generation company, Windelectric Nigeria has availed Nigerians of its unique range of power generation systems that requires no fossil fuel to generate industrial-grade power. At an event held penultimate Thursday in Lagos organized by Tech TV called Digital Agenda Forum 2022, the proponents of Windelectric Nigeria, explained to a cross section of technology enthusiasts about the fundamental components and work-ability of the fuelless generator.
During his presentation, a director of the company, Professor Ademola Akinrinade, explained that the fuelless generator was from the application of some basic principles of Physics that relied mostly on a magnetic field created to replenish itself and at the same time generate power. Prof Akinrinade explained that Windelectric Nigeria was born out of a need to not only help Nigeria solve its energy crisis but also to aid the country’s quest at Industrial Revolution.
Citing several sources, Professor Ademola explained that lack of electricity has stunted the growth of the industrial sector within the small and medium-scale Enterprise Arena in Nigeria. But with the innovative fuelless generator from Windelectric Nigeria, the country now has the capacity to focus less on issues surrounding power supply and focus more on actual production. He went further to state that in reality, the electromagnetic powered generator from Windelectric Nigeria is a better definition of what green energy actually is. According to him, “unlike some other green energy solutions like battery, wind and solar, what Windelectric Nigeria is bringing to the table is the only real and truly green energy that can power industrial sector alongside thermal power”.
At the event which had in attendance Technology eggheads like Dr.Pius Okigbo jnr, the past president of the Institute of Software Practitioners of Nigeria (ISPON), Dr.Macdonalds Chidi from the Nigerian Communications Commission (NCC), Rita Ndidi Amuchenwa, country executive leader Intel Corporation west Africa, Her Excellency Samata Gifty Bukari, Ghana Consulate General to Nigeria, Engr. James Agada of Ixzdore Laboratories, Dr. Victoria Ekhomo of Transworld Security, and a plethora of other technology enthusiasts and experts, the focus was basically to discuss and dissect the technology landscape for the country going forward.
With such objective the theme from Windelectric Nigeria which was led by its chairman and chief executive officer, Engr. Tunji Ishola, made a promise that utilizing the advantages or the fuelless generator all other technology advancements of the country can be realized especially when the issue of free and renewable energy is added into the mix. While receiving the award for Most Innovative Renewable Energy provider from the organizers of the event represented by Don Pedro Aganbi, the CEO of Windelectric Nigeria promised to use the award as a motivator to spread the gospel of renewable energy across the country and continent.
In this interview, with Engr. Adetola Adebanjo, the Founder and Chief Executive Officer of Morton78; a wholly Nigerian company passionate about Improving the lives of Nigerians by providing Energy access discussed renewable energy solution and how businesses in Nigerian can leverage on it for higher profitability. Anthony Nwosu captured this in an exclusive interview.
As an energy player, what areas of the industry are you playing in?
We are an innovative clean tech company that develops and delivers exceptional solar power engineering services to people and businesses. Energy is more of a need than a want as everyone needs energy to run their daily lives. At Morton78, we are passionate about Improving the lives of Nigerians by providing Energy access to unserved and underserved people of the country has been playing an active role in providing power and creating jobs for people in Nigeria.
What is your take on renewable been expensive?
This is already changing as volatility of diesel pricing has made using generator a more expensive option for energy generation. We at Morton have a plan we call the “Save To Own” plan whereby you pay to own a system over a predetermined timeline. This payment would be lower than what you are currently spending on power. Clean energy is much cheaper in the long run as it is a one-time cost if done properly and with quality equipment. Unlike a generator, you must factor in the cost of diesel which now is N800 per liter and likely to rise. Do you know that every 10kVa of generating set uses 2 liters of diesel every hour? Depending on your generating set, do the math running it for 6hours a day and 20 days a month, you would see the advantage of going renewables cannot be overemphasized. Our save to own plan aims to reduce the operational cost of home and businesses where we spread the payment for people and businesses. What we have done is made clean energy more affordable thereby turning expenses into profits for organization as they spend less on energy. Contrary to beliefs that solar panels do not last, they have a longer shelf life than generators as they still produce up to 80% of their initial capacity after about 20years. Its’ return on investment is also better in comparison to buying and using generators for energy needs. In other to serve our customers we ensure to understand their consumption pattern to adequately design the system that works best for them. A common mistake is sizing inverter right but under sizing the solar panel and battery requirement.
We have a lot of challenges on authenticity and originality. What have you done to address this?
Well, we have a solid service delivery. From experience, what we have seen is that some people that get solar for usage do not get it from competent firms and experienced professionals. They get it from people that will come and count their appliances and tell them their need. Some of these people do not understand the concept of energy audit, at Morton, we have a concise way of doing energy audit where we install smart sensors in your homes or business and this will give us a clear insight of the pattern of energy you consume, we then look at this pattern and give you solution that matches your load profile. So apart from these smart sensors and auditing we ensure that you have a clear view of what you need as you see in real time how you consume energy. We must have a clear insight into your energy consumption before we embark on proffering solutions.
What are the advisory solutions that you have for clients?
We noticed that people have heavy equipment like water heaters, pumping and washing machines etc., these appliances are high energy guzzlers, what we do is migrate these appliances from other times of usage to daytime usage using smart switches. Solar energy is free during the day. Why not ensure these appliances work when we have sunlight. This simple yet effective solution reduces the sizing of battery and generator thereby giving them additional savings. For example, a smart switch can be used for your water heater to come on at 10am in the morning and go off by 3pm in the afternoon.
Tell us about your Energy Solution for Building Development?
At Morton, we offer different products for infrastructural development. Some of which are the Smart bench, this is a solar powered bench with advertisement pane, phone charging capabilities and wifi. Another product we offer is the Smart Solar Streetlight. We see street lighting as more than just lights. Our street lighting is a solution that provides lighting, WIFI distribution and camera monitoring all in one solution.
What kind of support services do you have?
We have a lot; we follow up on clients and advise them on usage and limitations. We trouble shoot if there is anything wrong from our dashboard. We can log into the system from our office and have a clear view of the problem from the back end and either solve remotely or have the solution on hand before visiting system location. We also have a system in place where we tell the client when to clean their panel depending on the location. We can monitor client’s consumption remotely and trace the faults. We have a robust support system for our clients. We work with data. Insight is key.
, Engr. Adetola Adebanjo who is the founder and the chief executive officer of Morton 78
What sets you apart from others in the market?
Innovation and a proven financial model. We have speed of attending to customers need. We believe that every Nigerian wants energy, and we ensure they see energy as a supporting their livelihood than a burden. Our energy audit enables our client to view their consumption in real time, this helps them to understand their energy need. It is this level of transparency we have deployed to gain trust from our clients. Our advisory services have made them to appreciate us especially the big organizations like banks.
Can organization like banks and hotels use solar?
Our Alternative Power solution ranges from a 5kwp solution termed as APS5 to 100kwp coined as APS100. These APS are modular and can be scaled up to 1MW. Big organization can deploy solar from banks to churches even cold room facilities. There has been advancement in the battery technology, it has moved from lead acid battery to lithium-ion battery. We know that the major cost of renewable is the battery. There is what is called depth of discharge, you know that lead acid battery should discharge around 50% and if it does more, the battery will not last as much whereas lithium-ion battery can be depleted up to or more than 80%. It also has a faster recharge time with longevity of up to 10 years.
Apart from Lagos, have you deployed in other parts of the country?
We did deploy a 138-kwp projects in Maiduguri for the Northeast Children Trust to assist Internally displaced children. We have also deployed solutions in Abuja, delta and other parts of Nigeria. Presently, we are partnered with Rural Electrification Agency to provide Solar Home Systems to underserved and unserved regions of Nigeria. Morton78 has deployed these systems in the South West states of Ogun, Oyo, Osun, Kwara and Ekiti states. There are a lot of communities in Nigeria that haven’t seen light before in their lives, it was our solar solution that is bringing this much needed change in their lives.
The cost of energy is getting higher in Nigeria. What can SMEs do to reduce their energy cost?
One way to increase your profit is to reduce your expenses. A critical expense for SMEs is their cost of energy. To reduce your energy cost you must have an insight into your energy consumption. Once you gain this insight, you can integrate clean energy system from Morton to assist you in turning these expenses into profits.
Do you think that people are beginning to be opened to alternative energy sources?
Oh yes, they are, businesses are figuring out ways to increase revenue and to reduce expenses and one of the major expenses is power. Power is a major cost of doing business in Nigeria. With our various solutions, we are bringing the cost down for Nigerians. We also have solutions for small households and MSMEs i.e shop owners, barbers, artisans etc where they pay as low as N20,000 to get a solar system with a fan, phone charging capabilities, 4 bulbs and an external inverter to power up to a 32inch TV. It is called the LM 60. Payment would be spread for fifty-two weeks at the rate of N2,950 per week. As they are mostly daily earners it is easier for them to make weekly payments.
Are you looking at rural areas?
Morton78 is one of the companies partnered with Rural Electrification Agency and world bank to close the energy gap in Nigeria by providing Solar Home Systems (SHS) to undeserved and Unserved areas in Nigeria.At present we have deployed over 1,000 SHS and provided over 50 jobs for people in Ogun, Oyo, Ekiti and Kwara State of Nigeria.
What are looking at next year from MORTON 78?
Next year, we are looking at rural electrification and focus on those that do not have power. We have many agents in rural areas and have provided power to over a thousand homes. We plan to provide power to 10,000 homes while creating 200 jobs. Morton would also be focusing on proffering turnkey solutions to SMEs and larger organizations using our designed energy solutions and proven financial models.
“Contrary to beliefs that solar panels do not last, they have a longer shelf life than generators as they still produce up to 80% of their initial capacity after about 20years. Its’ return on investment is also better in comparison to buying and using generators for energy needs. In other to serve our customers we ensure to understand their consumption pattern to adequately design the system that works best for them. A common mistake is sizing inverter right but under sizing the solar panel and battery requirement.”
Morton78; a wholly Nigerian renewable energy company with core focus on Improving the lives of Nigerians by providing Energy access to unserved and underserved people of the country recently made their payment plans known for businesses in Nigeria. According to the organization, the payment plan is designed to address the initial cost problem many small and medium scale (SME) enterprises encounter before they go for solar and other forms or renewable energy.
Speaking to the media, Engr. Adetola Adebanjo who is the founder and the chief executive officer of Morton 78 said, “We at Morton have a plan we call the “Save To Own” plan whereby you pay to own a system over a predetermined timeline. This payment would be lower than what you are currently spending on power. The renewable is not expensive in the long run, apart from the initial capital expenditure. you can see that with generator, you can factor cost of diesel which is N800 per liter and you will do like six hours and you do the math and you will get about 60 liter per day and you have the gen running like 6 hours daily and if you multiply by 20 days per month, you get about 5 million a year only on buying diesel not maintenance and personnel cost. We have what we call save to home, we try to use this to reduce the operational cost of organization and we spread the payment for organizations.”
, Engr. Adetola Adebanjo who is the founder and the chief executive officer of Morton 78
Adetola added that” The initial cost might be higher but the return on investment (ROI) will be there in less than two years. On the contrary solar panels have a longer shelf life than generators. Its’ return on investment is also better in comparison to buying and using generators for energy needs. In other to serve our customers we ensure to understand their consumption pattern to adequately design the system that works best for them. A common mistake is sizing inverter right but under sizing the solar panel and battery requirement.
As one of the companies signed by the Rural Electrification Agency to partner with them in closing the Energy gap by providing Solar Home Systems, Morton 78 came up with an initiative termed “The Reap Empower” where they focused on achieving 4 critical elements such as Providing technical and sales training to women and youths, Promote viability and cost effectiveness of solar energy in the community, Provide a source of empowerment and revenue generation to youths and small businesses and Breeding skill acquisition in communities.
To achieve these, they rolled out their initiatives in the Southwestern States of Lagos, Ogun, Oyo, and Ekiti States. “We understand that most Nigerians are daily earners who tend to be able to afford basic amenities daily. We had to infuse that concept into our thinking of how they currently use and afford power. Most of them tend to either buy petrol, diesel, kerosene or candles daily. Depending on these volatile sources for their electricity is having adverse effect on their spending habit and health in general. Creating ways of maintaining clean energy and daily affordable expense routine was a critical factor in determining affordability of providing them Alternative Sources of Energy”, Adetola opined.
Another critical factor is getting their buy-ins and trust in these Alternative Sources. Morton78 had to partner with people of Good moral standings and character in the community. These people became Advocates or people we call Gate keepers. In tandem with them, they were able to create a process to get people on our program for technical and sales training. In about 6months, Morton78 have been able to give sales and technical training to over 50 Nigerians and provide Alternative Power to over 1,000 Nigerians while impacting the lives of over 5,000 Nigerians. With a goal that in the next one year is to train over 500 Nigerians while providing power to over 10,000 Nigerians. Thus, impacting the lives of over 50,000 Nigerians.
On what sets them apart from the other players in the renewable ecosystem, Adetola made it known that “Innovation and we have a financial model. We have speed of attending to customers need. We believe that every Nigerian wants energy and we try to look at things from a point of view of real time. Our energy audit will enable the client to view things in real time, this helps them to understand their energy need. It is the level of transparency we have deployed to gain trust from our clients. Our advisory services have made them to appreciate us especially the big organizations like banks. Our Alternative Power solution ranges from a 5kwp solution termed as APS5 to 100kwp coined as APS100. These APS are modular and can be scaled up to 1MW. Big organization can deploy solar from banks to churches even cold room facilities. ”
ANTHONY EMEKA NWOSU
The initial cost might be higher but the return on investment (ROI) will be there in less than two years. On the contrary solar panels have a longer shelf life than generators. Its’ return on investment is also better in comparison to buying and using generators for energy needs. In other to serve our customers we ensure to understand their consumption pattern to adequately design the system that works best for them. A common mistake is sizing inverter right but under sizing the solar panel and battery requirement.
The current global energy transition is both an opportunity for the preservation of the earth and a vehicle for unlocking the development potential and livelihoods of millions of people, especially those in developing countries.
However, the transition must also be fair and sensitive to Africa’s peculiarities and priorities, according to Vice President Yemi Osinbajo, SAN, when he spoke virtually at the 2022 Standard Bank Climate Summit themed, “Africa’s Path to Carbon Neutrality.”
Prof. Osinbajo focused on “how to manage the energy transition to net-zero in the context of Africa’s unique challenges, such as energy poverty.”
“The current energy transition is an opportunity like none other for the preservation of the planet, but it can also be a vehicle for unlocking the development potential and livelihoods of millions of people. There is no reason why we cannot have both,” the VP stated.
He said the global community must account for diverse realities and accommodate various pathways to net-zero, “particularly for African nations which need financial and technical support as well as the flexibility to develop as swiftly as possible. This will ensure a fair and balanced energy transition that leaves no one behind.
“How we manage the global energy transition must be sensitive to Africa’s priorities. The global energy transition must place energy access for both consumptive and productive uses at the heart of climate action,” he added.
The Vice President however noted that “to ensure a global energy transition that is favourable to us, African nations need to engage more critically and vocally on this matter.”
Making reference to Nigeria’s Energy Transition Plan as a leading light, Prof. Osinbajo said “the value of having a nation-specific, data-driven plan as the basis of our activities and engagements cannot be overemphasized,” adding that “the plan provides a clear financial estimate for the achievement of Nigeria’s energy access and transition goals.”
“Nigeria’s Energy Transition Plan finds that an additional $10 billion over business as usual is required annually till 2060 to shift the entire economy to a net-zero pathway. We hope to see more of such plans on the continent,” the VP noted.
Citing another example of efforts to have a pan-African position on energy transition, Prof. Osinbajo said “this is underway with certain countries including Nigeria developing and signing on to the Kigali Communiqué which came out of the Sustainable Energy for All Forum in June, and outlines principles for a just and equitable energy transition.”
According to him, “we must take ownership of our transition pathways and design climate-sensitive strategies that address our growth objectives. We must clearly and thoroughly articulate our priorities, strategies and needs.”
Justifying Africa’s stand for a just and balanced energy transition, the Vice President noted that “though Africa’s current unmet energy needs are huge, future demand will be even greater as populations expand, people move into the middle class and rapid urbanization continues.”
Specifically, the VP observed that in 2020, “Sub-Saharan Africa had 568 million people without access to electricity. This represents more than three-quarters of the world’s total unelectrified population. On the other hand, most developed nations have 100% energy access. Surely, the race to net-zero must not leave people in the dark.
“Also, Sub-Saharan Africa remains the only region in which the number of people without access to clean cooking fuels and technologies is rising. 19 of the 20 countries with lowest clean cooking access rates are in Africa.”
Prof. Osinbajo argued that “limiting the development of gas projects, as a critical energy transition pathway for Africa, violates enshrined principles of equity and justice, and poses dire challenges for African nations while making an insignificant dent in global emissions.”
He said “Africa has contributed the least of any global region to greenhouse gas emissions and currently emits under 4% of global emissions. Under no plausible scenario are Africa’s emissions a threat to global climate targets. Unfounded predictions should not serve as excuses to limit our energy technology options.
“Limiting financing of gas projects for domestic use in Africa would pose a severe challenge to the pace of economic development, delivery of electricity access and clean cooking solutions, and the scaleup and integration of renewable energy into the energy mix.”
On financing energy transition, Prof. Osinbajo said “a balanced and just approach to the energy transition recognizes that finance is key. Lack of access to finance remains the biggest challenge for accelerating action on energy access and climate goals in Africa.”
The VP restated the call on developed countries to bridge the disparity in energy investments, noting that “of the $2.8 trillion invested in renewable energy from 2000 to 2020, only about 2%, $60 billion, came to Africa.”
“It has been estimated by the International Energy Agency that Africa will need around $133 billion annually in clean energy investment to meet our energy and climate goals between 2026 and 2030.
The Standard Bank Group which hosted the event on Tuesday, has itself committed to achieving net zero carbon emissions from its own operations for newly built facilities by 2030, for existing facilities by 2040, and from its portfolio of financed emissions by 2050.
The African Energy Chamber (AEC) (https://EnergyChamber.org/) – the voice of the African energy sector – is proud to announce the launch of its newest publication, ‘The State of African Energy: 2023 Outlook,” (https://bit.ly/3NbQLtD) a detailed report analyzing current, emerging and future oil and gas market trends as well as geopolitical procedures shaping both the global and African oil and gas sector.
With the global oil market suffering combined impacts from the COVID-19 pandemic and the Russian-Ukraine war, the report provides a detailed analysis of how production and monetization will look like in 2023 for both African-producing countries such as Libya, Angola and Nigeria and global energy companies. As the global oil market volatility continues, the AEC report investigates what this means for African producers and the global market.
With the AEC projecting Nigeria to increase oil production from 1.65 million barrels per day (bpd) in 2022 to about 1.75 million bpd in 2023 and Libya from 1.12 million bpd in 2020 to 1.3 million bpd in 2023, while Angola will record a decline from 1.13 million bpd in 2022 to about 1.1 million bpd in 2023, the report highlights the role of African energy in ensuring global energy security while exploring the challenges and opportunities faced across the continent.
Meanwhile on the gas front, as western operators exit the Russian market due to the invasion of Ukraine, a significant decline in global production and increase in prices is expected. As such, the report analyses the impact on global trade and supply as well as on exploration, production and infrastructure development across the African market.
With the demand for gas in Europe anticipated to rapidly increase over the next three years, and Europe seeking to replace the majority of piped gas which the bloc secures from Russia leveraging liquefied natural gas (LNG) from other regions, Africa, as the bloc’s second gas supplier in 2021 and on the back of massive untapped gas resources across the continent, is well positioned to become Europe’s main supplier.
Africa needs to stand on its own feet to maximize the investments required to boost oil, gas and renewable energy developments to modernize its energy network
According to the AEC report, As COVID-19 subsides, the Russia-Ukraine conflict has and will continue to lead to Brent increasing, with Africa being in a prime position to increase its natural gas output and benefit from an under supplied LNG market and demand from Europe. Owing to the proximity of leading African producers to Europe and existing good trade relations between the two continents, despite total production across the continent declining from 2022 through 2025, Africa is expected to play a key role in meeting global demand.
Meanwhile, Nigeria, Algeria and Egypt lead African gas production and LNG flows in the short-term, with the report providing a detailed outlook regarding production, monetization and LNG developments across Africa’s emerging and already established markets such as Equatorial Guinea, Senegal/Mauritania and Mozambique.
With Africa seeking to attract investments to optimize the development, exploitation and monetization of hydrocarbon resources, including the estimated 125.3 billion barrels of crude oil resources and 620 trillion cubic feet of gas reserves for energy security and economic expansion, and as spending is set to be taken out of Russia and directed to other regions, the report details investment trends across Africa and how trends in Russia and across the globe can shape capital allocation for projects rollout and energy trading across the continent.
What’s more, with Africa eyeing to accelerate exploration investments and activities to boost its oil and gas reserves for a sustainable energy future, the AEC report provides insights on drilling campaigns across the continent and how recent sizeable discoveries, such as TotalEnergies and Shell’s in Namibia, will drive upstream activities in countries such as Mauritania, Senegal, Uganda, Congo, Mozambique, Ghana, Angola and Ivory Coast. The study states that drilling activity across Africa will increase marginally from about 895 wells in 2022 to 915 wells in 2023 and further to just over 1,000 wells in 2025.
In addition to providing country-specific impacts of new oil and gas economies across Africa, with the continent focusing more on how to lift the 600 million of its people out of energy poverty, the AEC outlook provides a detailed analysis of energy access rates whilst exploring various electrification initiatives – including gas-to-power and renewable energy developments – underway to boost Africa’s access to electricity.
“The Chamber is proud to release its newest report, ‘The State of the African Energy: 2023 Outlook.’ With current trends such as the Russian-Ukraine war and global energy transition policies exposing Africa’s fragile energy systems and deepened prevailing energy poverty on the continent, we believe Africa needs to stand on its own feet to maximize the investments required to boost oil, gas and renewable energy developments to modernize its energy network for security and reliability. We believe the report provides regional and global investors with the insights they require to tap into Africa’s vast energy potential,” states NJ Ayuk, the Executive Chairman of the AEC.
Nigeria represents one of Africa’s heavyweights when it comes to hydrocarbon exploration and production. With over 36 billion barrels of oil (bbl) and 200 trillion cubic feet of natural gas, the country has managed to position itself as both an attractive upstream market and competitive producer. In its Q1 2022 outlook, The State of African Energy, the African Energy Chamber (AEC) (EnergyChamber.org) contends that Nigeria will maintain its position as one of Africa’s leading crude oil producers as well as one of the continent’s top three gas suppliers between 2022 and 2025, providing an opportunity for the west African country to leverage its energy resources for economic growth while addressing global energy demand.
According to the outlook, Nigeria will produce 1.46 million barrels per day (bpd) of crude oil out of the 6.35 million bpd that Africa as a whole will produce during the year, reaffirming the country’s position as a continental energy hub as production in the west African state peaks in 2023. Production declines in mature oilfields coupled with the country’s reliance on offshore basins – approximately 65% of the crude oil Nigeria currently produces sourced from offshore projects – has highlighted the need for Nigeria to increase oil exploration and production to maintain a secure supply as legacy projects diminish and thereby shrink the country’s production capacity from 2023 onwards. Out of the 36 bbl of oil reserves Nigeria holds, just over 25% is currently produced from deep water projects, underlining a huge opportunity for Nigeria to expand partnerships and investment to ramp up production and increase its role in both the continental and global energy landscape.
“The recent $1.2 billion deal between Nigeria’s Seplat Energy and American energy firm ExxonMobil, in which the multinational will continue with its deep-water projects whilst handing over onshore projects, is an indication of the huge potential the country’s offshore projects have in the near future in addressing energy needs as energy consumption increases. By increasing focus on these projects, accelerating exploration and production in key basins, Nigeria has the ability to unleash its full energy potential,” stated NJ Ayuk, Executive Chairman of the AEC.
By increasing focus on these projects, accelerating exploration and production in key basins, Nigeria has the ability to unleash its full energy potential
In order to consolidate its position as a global producer, the Nigerian government needs to fast-forward the approval process for deep-water projects and put in place policies that reduce taxes for operators, the majority of which are international majors that have partnered with national oil companies, to ensure more projects come online through 2025 for a continued stable supply of crude oil.
More investments are also required within the country’s downstream sector with inadequate infrastructure slowing down oil production and increasing Nigeria’s reliance on fuel imports. Nigeria imports up to 1.25 million metric tons per month of gasoline due to inadequate domestic refining capacity. Accordingly, the $12 billion Dangote refinery project in Lagos, slated to kickstart operations during Q4 of 2022 with a processing capacity of 540,000 barrels per day and partly owned by state-company the Nigerian National Petroleum Corporation, is an example of the willingness of Nigeria to set itself as an oil heavyweight while expanding its oil and gas capabilities to meet domestic, regional and global energy needs.
Meanwhile on the gas front, the AEC outlook shows that Nigeria has also retained its spot amongst Africa’s main gas producers in 2022. An annual production capacity of 1,450 billion cubic feet is expected as the country recovers from 2020 low production levels. Existing gas producing fields, as well as those currently under development, are expected to sustain the country’s gas production through to 2025. Despite factors such as vandalism of infrastructure which are restraining optimal gas and oil exportation, as well as the high costs and emission rates associated with deep-water projects driving majors to diversify their portfolios, greenfield investments in Nigeria and its African counterparts will increase capital expenditure across the continent to $30 billion in 2022, providing an opportunity for new projects to come online and for leading hydrocarbon producers such as Nigeria to modernize and build new infrastructure as well as expand exploration and production.
Nigeria is positioned to lead African investment with proven oil and gas reserves as well as a reformed regulatory landscape making the sector increasingly attractive for foreign capital. The implementation of the Petroleum Industry Bill (PIB) in 2021 by the Nigerian government, for example, provides regulatory clarity on royalties and other issues that have previously made it difficult for oil and gas E&P companies and downstream market players to expand investments within the country’s market. Now, with the implementation of the PIB, Nigeria is better positioned, now more than ever, to attract investments and accelerate development in 2022 and beyond.
The AEC’s annual conference, African Energy Week (AEW), taking place from October 18-21, 2022, in Cape Town, will not only highlight post-PIB opportunities in Nigeria, but will make a strong case for the role the country plays in both the African and global energy landscape. Through a range of investor-specific forums, market-driven panel discussions, and ministerial summits, AEW 2022 will discuss exploration, production and regulation, with dialogue centered around how Africa’s oil and gas sector can make energy poverty history by 2030.
