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Oil and Gas: What Lessons for Nigeria from Russia?

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With over 200 trillion cubic feet (tcf) Nigeria has the largest gas reserves in Africa. It is ranked 9th globally.

Given our high dependence on oil and gas for industrial and domestic energy the global transition from carbon fuel to sustainable energy sources poses a significant threat to Nigeria’s economy.

Most African countries, including Nigeria, are still facing energy availability problems as their energy consumption is several times below the world’s average.

Experts estimate that Africa will account for over 60 per cent of global population growth by 2050.

In view of urbanisation experts forecast that Africa will experience significant economic growth to be accompanied by two-fold increase in natural gas demand.

Nigeria, Africa’s largest Liquefied Natural Gas (LNG) exporter lacks access to energy and since gas is the energy transition fuel, it is only logical that its development, availability and utilisation be enhanced.

Natural gas offers effective solutions to major areas of activities causing air pollution, including power generation, transport and household applications.

It can replace coal in power generation and oil products in transport; as for household applications, natural gas substitute Biomass (firewood) which according to experts account for up to 45 per cent of Africa’s energy mix

Apart from being used for cooking, transportation (in vehicles), heating and powering machines, industries among others, the gas is also a valuable raw material for the production of fertilisers.

A trip to Russia by the News Agency of Nigeria (NAN) on the invitation of its state-owned, Gazprom Energy Company revealed that partnering and emulating Russian Gas Projects and Gazprom’s competencies along the entire value chain of gas business is paramount for Nigeria’s gas development.

Russia has the largest proven natural gas reserves in the world, worth 47.8 trillion standard cubic meters. Iran and Qatar follow, with more than 30 and 20 trillion cubic meters.

Gazprom, its state-owned energy corporation, established in 1971 with sales of over 120 billion dollars is ranked as the largest natural gas company in the world and the largest company in Russia by revenue.

NAN discovered that the company operates many active oil, gas and condensate fields with cluster of producing gas wells, comprehensive gas treatment unit, booster compressor station, and transportation and power infrastructure.

Gazprom is the main supplier of natural gas to the country and to other countries. Under its Gas Infrastructure Expansion and Unified Gas Supply System, gas is supplied to millions of households and public utility enterprises.

The Russian government is also committed to its All-Russia Gasification Programme which started in 1960 and had promoted clean energy and energy security till date, according to Mr Buzin Vyacheslav, Diretor-General, JSC, Gazprom Distribution.

Vyacheslav said the total length of Gazprom’s Gas Distribution Networks transmitting gas to end consumers was more than 800,000 kilometres.

“To make clean energy widely available to Russians, Gazprom is actively bringing gas to cities and villages, by building gas pipelines stretching from major gas trunk lines to the land plots of consumers.

“Gas infrastructure expansion is the most ambitious socially significant project of Gazprom that helps improve the living standards of people and the main benefits of pipeline natural gas are convenience of use, eco-friendliness –reliability and cost efficiency.

“Uninterrupted delivery and safety are the main principles of Gazprom as regards gas supplies, both construction and operation of gas infrastructure facilities are performed in compliance with stringent requirements.

“Pipeline natural gas is the cheapest energy source available in Russia today. For instance, gas prices for the population are regulated by the government which makes them as affordable for households as possible“, he said .

According to Vyacheslav, gas infrastructure expansion is a powerful driving force behind the development of regional economies.

“Owing to the access to pipeline gas, availability, larger tax payments; growth of employment and increase of living standards and better environmental conditions are achieved,’’ Vyacheslav told NAN.

He also said gas infrastructure is being expanded extensively across Russia, adding that by 2030, gas networks will be present in all places of Russia where it is technically possible.

Vyacheslav said for Nigeria to achieve gasification, technical and technological designs are involved to ascertain the cost.

He said it would also involve geological survey to identify rocky areas which might not be penetrated hence other options could be applied.

The energy company had expressed readiness to partner African countries, including Nigeria on gas technology, infrastructure and development, according to Dobycha Nadym, Mr Dimitry Stratov, its Deputy-Director General, Prospective and Development.

Prof. Stanley Onwukwe, an Oil and Gas Expert, said it was unfortunate that Nigeria had the resources and projects like the National Gas Development Strategy, Trans Sahara Gas Pipeline Project among others which were yet to be fully harnessed.

Onwukwe said Russia was proactive and had supplies gas to almost all the western world.

Onwukwe, a professor in the department of  petroleum engineering, Federal University of Technology Owerri, said there were blueprints established for gas developmental projects to thrive in the country but lack of political will hampered such projects.

“Nigeria has Compressed Natural Gas (CNG) already being used in Benin, most cars in the state are running on CNG.

“Initially the conversion of vehicles was free but they later started collecting almost a million naira which put people off.

“Such should be replicated nationwide while CNG refill stations should be established in various places for refilling but no such thing.

“The problem is not to have your vehicle’s engine converted for natural gas use but to see where to refill if you are on transit.

“It is a global village; just that the government does not have will power to implement such developmental projects after contract award,’’ he said.

He said the facility including gas base infrastructure for industries were necessary for distribution of gas but required proper investment and finance.

Dr Chijioke Ekechukwu, an economist said it would take a strong political will and implementable policies for Nigeria to attain such feat as Russia including having all our vehicles converted to CNG.

According to Ekechukwu, piping gas to homes is also possible if the supply is guaranteed.

He said it would be win-win to have policies in place towards achieving this, especially the fact that we have an abundance of gas.

“Only recently, the Nigerian government inaugurated a committee to convert cars and buses from petrol and diesel to CNG engine that can be used by these vehicles.

“We have an abundance of this gas, which is flared and wasted. Gas consumption both at home and by vehicles is climate friendly and should be encouraged,’’ said.

Also speaking, Mr Yusha’u Aliyu said Russia and EU have an excellent working policy on energy production and consumption, saying that technological advances also added value to their efforts.

“Gas is cost effective and environmental friendly. We have to develop a strategy and culture of commitment and efficiency to thrive,’’ he said. (NANFeatures)

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Time for Nigeria to Focus on Solid Minerals Sector

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Nigeria’s solid mineral sector, which was once crucial to the nation’s economy, lost that recognition immediately the nation found oil.

But, with the decreasing oil revenue, the President Bola Tinubu-led administration is revitalising the solid mineral sector and developing its infrastructure to attract foreign investments.

According to the Minister of Solid Minerals Development, Dr Dele Alake, the sector is being repositioned as a major driver of the nation’s economic growth.

As the minister strives toward achieving this goal, critical stakeholders in the industry have emphasised the need to sustain the efforts to meet the goal of diversifying the economy.

One such stakeholder, Mr Mikali Mumuni, believes that the sector has the potential to significantly create wealth and numerous employment opportunities.

Mumini, the Managing Director of Miners Communication Limited, publishers of Miner Magazine, says that the sector is “too good to be ignored”.

“Today, it is dawning upon us that we can no longer depend solely on oil because of the vagaries of international oil market.

“It has become obvious that Nigeria is now earning less and less income from oil.

“Apparently, this is the reason why successive governments have been talking of diversifying the nation’s economic base.

“One of the easiest and surest way to do this is to refocus attention on the solid minerals sector.

“The sector has the highest capacity to create multiple employment opportunities for our teeming population, particularly the youth.

“Basically, the solid mineral sector has been long neglected because of the discovery of oil which made some public policy analysts argued that oil made the nation lazy.

“The reality is dawning on the nation that the holiday is over. It is time to face the reality,” he told newsmen recently.

Mr Abidoye Abiosun, Marketing Director of Miners Communication, while corroborating Mumini, identified lithium as one solid mineral that had gained global focus.

“From what I observed, the Nigerian government is prioritising the expansion and development of its lithium resources in the country.

“The idea is to generate power without polluting the environment.

“To the best of my knowledge, lithium is the major focus in the whole world and that is why,  I think, the Nigerian government is really focusing attention on its expansion and development.

“When you are looking at the area of power generation without polluting the air, creating nuisance and ecological hazard, lithium is the safest,” he said.

Abiosun speaks further on the solid mineral.

“Lithium is also the mineral resource crucial to the production of battery used in the generation of solar energy and other similar products.

“With records showing that Nigeria has a very large deposit of lithium, it should be annexed, properly looked into, and tapped so that it would be a ready-made replacement and alternative to oil.

“Lithium is a versatile element with various applications. Lithium-ion batteries power electric vehicles, mobile devices and renewable energy systems.

“This is due to their high energy density and long lifespan.

“Lithium carbonate is used as a medication to treat bipolar disorder, depression and anxiety disorders.

“Lithium is also used in nuclear reactors as a neutron absorber and in nuclear fusion research.

“Lithium oxide is used to produce specialised glass and ceramics with unique properties. Lithium-based lubricants are used in industrial applications due to their high performance and resistance to extreme temperatures.

“It has long been established that lithium-ion batteries have a high energy-to-weight ratio, making them ideal for portable electronics and electric vehicles.

“This is just as lithium-ion batteries can be charged and discharged many times without losing capacity.

“Lithium carbonate also helps stabilise mood and reduce symptoms of mental health conditions.

“Lithium’s ability to absorb neutrons makes it useful in nuclear applications.

“Lithium-based materials have high thermal resistance, making them suitable for extreme temperature applications,” he explained.

Expectedly, stakeholders have lauded government’s efforts in taking steps to reactivate mining licences and address security concerns so as to make the sector more attractive to investors.

They note that Alake has launched the mineral resources database through which anybody that is interested in investing in solid minerals could access information on which part of the country he or she could get a particular mineral or the other.

The minister said recently that investors could express interest where such lies.

The government has also created the Mining Marshall to make the different mining sites safer for investors as well as miners.

Just recently, President Bola Tinubu gave a matching order to the armed forces to redouble their efforts at curbing illegal mining.

“This, to me, is a great assurance to investors in the mining sector,” Mumuni said.

For Abiosun, the renewed interest on the mineral resources sector by Alake and the Federal Government is commendable and must be supported.

“I think it is a very good step in the right direction,” Abiosun says.

Analysts have, however, said that there is the need to review mining licences as many had been issued but not activated.

“If the government is looking at generating employment through solid mineral and mineral resources in the country, all the mining licence that have been given out, need to be activated.

“Serious investors need to invest in the sector, start action and, at the end of the day, the unemployment rate in the country would have decreased.

“We look at majority of our youths that are at home unemployed; they will have areas in which they can be useful at the mining sites and other activities that are associated with mining in the country.

“I think the Federal Government is taking the right step in the right direction,” Abiosun says.

Stakeholders have also emphasised the need for specialised media coverage to promote and support the growth of the sector.

Mumini emphasises this.

“As journalists, it is our duty to ensure that we do not lower the bar of reportage of the sector.

“This is what forced some of us to come up with the idea of the Miners Communication outfit under which we currently have a monthly news magazine solely devoted to reporting the solid mineral sector.

“It is the only magazine that is doing that in the country. We have taken the lead and we are determined to consistently do this by highlighting the diverse and vast opportunities that abound in the sector,” Mumuni says.

Abiosun notes further: “This is an aspect of journalism that has not been looked into.

“The area is a growing sector and it is a genre that we need to encourage just the way the Nigerian government is trying to encourage the mineral resources industry.” (NANFeatures)

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X-raying Wike’s First Year as FCT Minister

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Shortly after assuming office as FCT minister on Aug. 21, 2023, Mr Nyesom Wike announced short, medium, and long-term plans to restore the Abuja Master Plan.

Wike, along with FCT minister of state Mariya Mahmoud, explained that overhauling the FCT would reposition it to be among the best cities in the world in line with President Bola Tinubu’s “Renewed Hope Agenda”.

He added that emphasis would be placed on infrastructural development, taking one project at a time, to restore the city to its glory.

The minister said that development would also be extended to the six Area Councils as part of strategies to decongest the city and open rural economy.

Sadly, Wike was confronted with the sight of abandoned projects that characterised the capital city.

The minister noted that FCT had, over the years, witnessed foundation laying ceremonies of several structures worth billions, only to be abandoned midway or at advanced stages of the construction.

While assessing them, he pointed out that some of the contracts were awarded in 2007, some in 2011, while others were awarded between 2015 and 2017, with all abandoned.

Confronting the challenge, Wike said that revenue leakages would be blocked so as to mobilise the needed resources for infrastructural development in the FCT.

“I will ensure that Abuja gets the best. You will see projects upon projects, and projects that will be completed and not abandoned.

“I am not a party to abandoned projects. I start a project when there is money as such we will look into our finances before we begin any project,” the minister had said.

Innovatively, Wike got most of the contractors back to site after agreeing on a payment plan with money from the FCT Internally Generated Revenue (IGR) and 2023 Supplementary Budget.

To improve IGR, the minister inaugurated a Task Force on the issuance of Certificates of Occupancy for mass housing developments and the recovery of land use contravention fees in the FCT.

He equally introduced innovations and enforced the payment of outstanding ground rents and other taxes in the FCT, a decision that increased the territory’s revenue generation significantly.

This is evident with the recent declaration of N126.54 billion collected and remitted between January and June by the FCT Internal Revenue Service.

The then acting Executive Chairman of the service, Mr Haruna Abdullahi, said that the figure was 53.5 per cent higher than the N82.46 billion collected in the first half of 2023.

The minister also secured the approval of Tinubu to withdraw FCTA from Treasury Single Account, to enable the administration to access funds from financial institutions to fund projects.

These initiatives paid off, as nine months later, the Wike-led FCTA announced the completion of numerous projects which were inaugurated in May to celebrate Tinubu’s one year in office.

Some of the projects included the official residence of the Vice President, the Abuja Rail Mass Transit system, Inner Southern Expressway from the Outer Southern Expressway to the Southern Parkway.

Others are full scope development of about 6.7km of 10 lanes Outer Southern Expressway from Villa Roundabout to Ring Road 1 Junction, and construction of Southern Parkway from the Christian Centre to Ring Road 1, named after President Bola Tinubu.

Equally inaugurated were the completed B6 (Constitution Avenue)/B12 (Independence Avenue) roads in Central Area, and Wuye interchange bridge.

The full scope development of the Arterial Road, N-20, from Shehu Musa Yar’Adua Expressway to Murtala Mohammed Expressway, was also partly completed and named after noble laurel Wole Soyinka.

Another milestone of the Wike-led FCTA was the completion of engineering infrastructure in Guzape District Lot II, and the resurfacing of 189 roads covering 57km within Abuja city centre among others.

He assured that other ongoing projects would be completed by December 2024, including the rehabilitation and resurfacing of 366 roads in Wuse, Garki, Asokoro and Maitama Districts, covering 117 km.

Also ongoing are the rehabilitation of District Hospital Gwarimpa, Cottage Hospital Gwagwalada and District Hospital Utako, Greater Abuja Water Supply Project and rehabilitation of 19 public primary and secondary schools across the territory.

The minister also recently inaugurated the construction of three bus terminals in the FCT to ensure a secure and convenient travel experience for commuters in the FCT.

He also inaugurated the construction of the Abuja Division of the Court of Appeal Complex to strengthen the administration of justice.

Road users and residents described the feat as unprecedented, saying that Wike was the best thing that had happened to FCT.

“I have been living in Abuja for 16 years but never witnessed a speedy delivery of road projects until Wike happened.

“Look at the road to Asokoro from Apo, which was under construction for several years, but Wike delivered it in just eight months,” said a resident, Mr Andrew Moses.

Similarly, Mr Shuabu Yunusa, a taxi driver said, “It is now seamless going to Asokoro from Apo. The Tinubu-led administration is really working and deserved our commendation.”

In keeping to his promise not to leave rural communities behind in the development agenda, the minister has inaugurated the construction of rural roads of more than 42.2km across the six Area Councils and promised to complete them by December.

Similarly, the minister has also handed over Staff of Office to four newly coronated Chiefs of Karu, Kwali, Pai, and Yaba, as part of measures to strengthen traditional institutions and improve governance in communities.

According to him, the traditional rulers are expected to draw the attention of the government to any development, security and other issues that require government attention and response.

Beyond infrastructural development, stakeholders said that Wike has carved his name in gold by ensuring the implementation of the FCT Civil Service Commission (CSC), 2018, against all odds.

The minister, on Oct. 13, 2023, announced President Tinubu’s approval for the establishment of CSC for the FCTA, in line with the provisions of the law.

This, he said, was to allow career progression for civil servants in the Administration, from director to permanent secretary and, hopefully, Head of Civil Service.

On March 12, Wike announced Tinubu’s approval for the appointment of Mr Udo Atang, as pioneer Head of Civil Service of the FCTA.

Mr Emeka Ezeh was also appointed Chairman of the Commission’s Board, along with six others as commissioners, representing the six geopolitical zones.

Similarly, 10 other directors in the FCTA were appointed as pioneer Permanent Secretaries for various Secretariats of the Administration.

The excited pioneer head of FCT civil service, described the development as a demonstration of the reality of the renewed hope agenda of the Tinubu-led government.

Commending Tinubu and Wike for renewing the hope of FCT workers, Atang said: “the staff of the Administration have never had it this good.

“In the new FCTA system, every member of staff is a potential permanent secretary and head of service.”

To ensure gender equality, as well as women and youth participation in governance, Wike, within one year in office, has created Women Affairs Secretariat and Youth Development Secretariat.

This has increased the number of secretariats in the FCTA from eight to 10 with a view to ensure inclusive governance.

On security, the Wike-led FCTA has supported security agencies, including vigilante groups, with motorcycles and operational vehicles, fitted with modern communication gadgets.

This, according to him, is to enable security agencies to navigate hard-to-reach communities in rural areas and improve security operations within the city.

Wike equally inaugurated a Joint Task Force, consisting of all security agencies in the FCT, to curb the menace of “one chance” and another to curtail the activities of arm rubbers, kidnappers and all forms of crimes within the FCT and its environment.

While assessing the performance of the Wike-led FCTA on security, Mr Adamu Gwary, Director, Security Services Department, FCTA, argued that the impact was impressive, considering the reduced incidents of security breaches.

Sharing Gwary’s view, Prof. Kailani Muhammed, Director-General of the Confederation of All Progressives Congress said that FCT had become a safe haven where residents could afford to sleep with their two eyes closed.

Despite the laudable feats within one year in office, stakeholders have stressed the need to invest more on people-oriented projects such as provision of clean water, quality health services and transportation system.

This, according to them, will impact significantly on the lives of the common residents of the FCT. (NANFeatures)

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Can 10th National Assembly Lay Petroleum Industry Challenges to Rest?

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Nigeria is a leading producer of crude in Africa and a major crude exporter in the world. Oil receipts are the major source of revenue source for the country, contributing more than 80 per cent of the country’s income.Available records from the Statista showed that Nigeria’s crude oil reserves stood at 36.

9 billion barrels and valued at roughly 74 million metric tons.
The crude oil products such as premium motor spirit, otherwise known as petrol, diesel, aviation fuel known in the industry as Jet A1 are imported.
They are a major drain on government’s purse.A cardinal part of President Bola Tinubu’s monetary and fiscal policies is directed at stimulating additional revenue and foreign exchange earnings with ultimate goal of improving livelihood of Nigerians.
The policies are also designed to stabilise exchange rate, reduce inflation, lower interest rate and encourage investments.The petroleum sector is key in achieving these aims because virtually all economic policies revolve around it.However, recent developments in the oil seem to threaten that ambition as accusation and counter accusations bothering on corruption and sabotage have dominate news about the sector.But more disturbing is recent ugly narrative of alleged importation of hazardous and substandard petroleum products into the country.The issue of toxic petroleum product importation came to public space when the Senator representing Cross River South Senatorial District. Sen.Asuquo Ekpenyong, moved a motion on alleged toxic petroleum products importation and distribution.Ekpenyong, had at a Senate plenary on July 3, 2024, sponsored a motion for Senate to probe alleged importation of hazardous petroleum products into the country.Following a comprehensive debate on the motion, Senate consequently constituted an ad hoc committee for an investigation on the matter.The committee members, as announced by President of thee Senate, Sen. Godswill Akpabio were fifteen in number with Leader of the Senate, Sen.Opeyemi Bamidele as chairman.Alongside the onerous mandate to investigate alleged importation of toxic petroleum products, the committee was also mandated to do a comprehensive probe of the sector with a view to ending decades of irritating narratives.However, the one million question, agitating minds of Nigerians is the ability of the 10th National Assembly to end the perceived issues in the sector via the investigation, given outcome of previous investigative hearings on the sector.Interestingly, Bamidele, speaking in Abuja at an interactive session with key stakeholders in the sector re-emphasised the concerns of Nigerians on the upcoming investigation as most of them have ended up has jamborees.He said: “Will this investigative hearing end up like the previous ones?“Can the Senate really address the challenges in the petroleum industry given the entrenched interests of some powerful interests?.“These are some of the questions the media have been asking in their analyses and reports since the constitution of this ad-hoc committee on July 3.”Bamidele said the senate had been carrying out its mandate to resolve deep-seated challenges that had hitherto obstructed to smooth functioning of petroleum industry for decades.He urged all parties to jettison their differences as the committee embarks on a journey to uncover the truth about the goings on in the sector.“I therefore, assure you that we are all committed to conducting a thorough and impartial investigation across all areas outlined in the senate resolution of July 3”, he said.Bamidele said no one concerned would be exempted from the scrutiny, adding that the committee’s collective goal was to serve overriding public interest.According to him, it is truly a challenging period in the nation given that supply of refined petroleum products has been irregular and problematic.“The long queues at filling stations are also a testament to this challenge.“A situation, where we now depend almost entirely on importation of these products, even when we daily supply global oil market’s no fewer than two per cent of its crude oil needs, is to say the least, highly worrisome.Bamidele said to ensure broad participation, the committee has created a platform for the general public and stakeholders to submit memoranda before the public hearings that was slated to hold from Sept. 10 – 12.“We have accepted this huge responsibility with the resolve to make a difference.“We are also staking our integrity and safety to develop an efficient and functional regime that guarantees transparent management of strategic national resources,’’ he said.Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources, said that the oil sector was bedeviled by lots of misinformation.“This investigation will do a whole lot of justice not only to the Senate but we in the Executive and key leaders in the sector.“Because of the fundamental nature of this investigation that has to do with alleged economic sabotage with importation of substandard products into the country, we urge the Senate to ensure we do a live broadcast,” he said.Similarly, at a news conference organised by the committee, Sen. Abdul Ningi said he understood reservations and pessimism of Nigerians toward outcome of upcoming investigation.“With high level of integrity of members of this committee, we are assuring you that at the end of the day we are going to have a very solid recommendations to move Nigeria forward’’, he said..Sen. Yahaya Abdullahi said from what he glimpsed from media reports, Nigerians were skeptic about the potential outcome of the investigation and its implementation.“We are people that are very much concerned with our integrity. We are here to go deep down into what is happening to see how we can add value to the governance of this country”, Ningi said.Analysts say the capacity of the committee to function rightly, given the pedigree, strength of character, quality of public service records and antecedents of its members was not in doubt, hence the expectation that it will leave above board.Should the members of the committee justify the high rating, the perception is that investigation would be the beginning of an end to the perceived challenges in the industry.Perception is one thing, reality is another. In the event that the latter is the case, what policy makers and implementers will do with the investigation outcome is another kettle of fish.Nigerians cannot afford to wait any longer to be rescued from the troubles inflicted on them by oil and gas, which in other climes is a source of blessing. (NAN

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