A Review of Nigeria's Oil and Gas Industry in 2020By Solomon Asowata, News Agency of Nigeria (NAN)

A Review of Nigeria's Oil and Gas Industry in 2020

By Solomon Asowata, News Agency of Nigeria (NAN)

The year 2020 can be described as one of the most difficult years for the oil and gas industry globally in the last few decades.

The year witnessed the Coronavirus pandemic which necessitated countries and states to lock down their borders thereby preventing movement of persons, goods and services for months unless under special circumstances.

This restriction of movement affected many sectors of the economy but one of the worst hit was the oil and gas industry which fuels mobility of mankind and businesses across the globe.

So, with a sharp drop in air and land movement, the demand for Jet A1 (Aviation fuel) , Diesel and Premium Motor Spirit (PMS) also known as petrol declined drastically. 

Also, during the period, there was an oil price war between Russia and Saudi Arabia which further led to a crash in the price of crude oil at the international market.

A combination of both factors affected the revenue of countries like Nigeria which is largely dependent on crude oil to sustain its economy thus it was not a surprised when the country went into recession.

However, in spite of these challenges, the industry recorded some positive achievements that could be consolidated on in 2021 to not only boost revenue accruing from the sector but also help to diversify its economy to reduce the dependency on oil.

Below is a review of some major issues and events which occurred in the sector in the outgoing year.

Crash in Crude Oil prices

The crash in crude oil prices caused by COVID-19 pandemic and price war between big oil producers was one of the major challenges faced by the industry in 2020.

Prices at the international market according to available data have hovered from $40 to $50 per litre for most part of the year and was at a negative at the height of the pandemic.

Minister of State for Petroleum Resources, Chief Timipre Syla says with the current second wave of the pandemic, the situation is not expected to change in the coming months.

This had compelled the Nigerian government to adjust its 2020 budget while also borrowing to fund some parts of the 2021 budget.

Removal of Petrol Subsidy

In April, Mr Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC) announced that the federal government will no longer be subsidising petrol.

Although the move was opposed by Organised Labour, the government stuck to the decision which it says can save the country one trillion naira annually to be deployed to other critical sectors of the economy.

Mr Tunji Oyebanji, Chairman, Major Oil Marketers Association of Nigeria (MOMAN) and Mr Chinedu Okoronkwo, President, Independent Petroleum Marketers Association of Nigeria (IPMAN) believe the removal of subsidy is in the interest of the country.

They say it will open up the sector for Foreign Direct Investment which will be beneficial to Nigerians in the long term.

However, the situation has led to an unstable fuel price regime with prices varying every other month after the announcement. The pump price of PMS which was N145 per litre in January 2020 is now between N164 to N172 across the country.

Transmission of PIB to the National Assembly 

The transmission of the Petroleum Industry Bill (PIB) to the National Assembly in September by the president according to industry stakeholders shows a willingness to reposition the oil and gas industry.

Kyari is confident that the bill which has passed second reading will be passed into law in 2021.

The PIB which has been mooted for almost two decades will provide a clear fiscal environment for the sector thereby attracting investors and increasing governments revenue.

Declaration of 2020 as the Year of Gas

The declaration of 2020 by the Federal Government as the Year of Gas was one of the key policies that shaped activities of the oil and gas sector in 2020.

With 203 Trillion Cubic Feet (tcf) of proven natural gas reserve, Nigeria according to Sylva can best be described as a gas country hence the need to deepen its domestic utilisation for economic growth and sustainability.

This necessitated the creation of the National Gas Expansion Programme (NGEP) in January, a committee that has been driving the implementation of the objective.

On Aug. 10, the "Go-Live" of the 

National Gas Transportation Network Code (NGTNC) was inaugurated by Sylva to unlock the potential of gas as a resource and revenue earner for Nigeria.

``It is believed that the implementation of the code will provide for investors in gas, the confidence to invest heavily in the sector and enable Nigeria consolidate on the multiplier effect of gas on the economy, says Mr Justice Derefaka, Technical Adviser, Gas, to the Minister.

Also on Dec. 1, President Muhammadu Buhari rolled out the deployment of autogas in the country with the inauguration of five gas-powered Mass Transit Buses handed over to the Nigeria Labour Congress (NLC).

According to the NGEP),  autogas  (Compressed Natural Gas) service stations are already in operations in the Federal Capital Territory Abuja , Kano and Kaduna States.

Others are Kogi, Kwara, Ogun, Ondo, Oyo, Lagos, Edo, Delta, Rivers and Bayelsa States and the government is targeting free conversion of one million vehicles from petrol to gas.

The committee says the scheme is a way of reducing Nigeria's dependence on oil while at the same time providing a cheaper and cleaner alternative source of energy for Nigerians.

Dr Mohammed Ibrahim, Chairman, NGEP says the autogas scheme and domestic utilisation of Liquefied Petroleum Gas will create about 12.5 million direct and indirect jobs.

In June, the president flagged off the construction of the Ajaokuta -Kaduna-Kano (AKK) pipeline project which will create job opportunities for Nigerians.

Mr Sarki Auwalu, Director, Department of Petroleum Resources (DPR) says  connecting the entire country with gas networks such as Escravos Gas Pipeline System (ELPS), Obiafu-Obrikon-Oben(OB3) and Ajaokuta -Kaduna-Kano (AKK) pipelines is part of the strategic agenda to bring gas to the people.

Similarly in June, Final Investment Decision (FID) was taken on the 

NLNG Train 7 project which is expected to ramp up NLNGs production capacity by 35 per cent from 22 million Tonnes Per Annum (MTPA) to around 30 MTPA. 

Mr Tony Attah Managing Director, NLNG, says, ``the   project   is anticipated to create about 10,000 new jobs during the construction stage, and on completion, help to further diversify the revenue portfolio of the federal government and increase its tax base.

Inauguration of Waltersmith Modular Refinery

On Nov. 24, Buhari inaugurated the 5,000BPD Waltersmith Modular Refinery at Ibigwe, in Imo State and also performed the groundbreaking for the companys 45,000BPD Refinery.

The refinery was constructed with the support of the Nigerian Content Development and Monitoring Board and will supply kerosene to the state and its environs.

Inauguration of Oredo  Integrated Gas Handling Facility

On Dec. 22, Buhari inaugurated the Integrated Gas Handling Facility and LPG Processing and Dispensing Plants built and operated by the Nigerian Petroleum Development Company, an Upstream Subsidiary of NNPC in Oredo, Edo State.

The president said : “The Oredo Integrated Gas Handling Facility will be delivering 240,000 metric tons of commercial grade Liquefied Petroleum Gas and Propane. It will also deliver about 205 million standard cubic feet per day of lean gas to the domestic market.

Marginal oil field bid round

In June, Nigeria opened bid round for 57 marginal oil fields in the country with over 600 companies applying for prequalification.

Mr Paul Osu,Head , Public Affairs, DPR says the objective of bid round is to deepen the participation of indigenous companies in the upstream segment of the industry and provide opportunities for technical and financial partnerships for investors.

Gas Explosions and Fire Incidents 

The year 2020 witnessed an increase in gas explosion and fire outbreaks caused by petroleum products leading to fatalities and destruction of property worth billions of naira.

On Jan. 19, a Nigerian National Petroleum Corporation (NNPC) pipeline at Ile Epo axis of Alimosho Local Government Area of Lagos State exploded leading to the death of five persons according to the National Emergency Management Agency (NEMA). 

Similarly, on March 15, NEMA confirmed the death 15 persons when an explosion occurred at Abule Ado, in Trade Fair axis of Lagos State.

No fewer than 60 students of Bethlehem Girls College located within the area also sustained injuries while over 50 buildings were destroyed.

Also on Sept. 25, 44 persons sustained various degree of injuries when a gas tanker exploded in Iju area of the state.

A few weeks later, on Oct. 8, that five persons lost their lives when a gas plant exploded at Baruwa area of Alimosho while eight persons were rescued alive with various degrees of injuries.

According to NEMA, 44 buildings were also destroyed in the inferno which started at about 5:40am when a a LPG tanker was in the process of discharging at the Best Roof Gas Plant Station located within the densely populated area.

Another inferno also occurred on Nov. 5 at the OVH Energy tank farm at Marine Beach, Ijora area of Lagos State. However no life was lost in the incident.

Reacting to the upsurge in fire incidents and gas explosions, Dr Kennie Obateru, Group General Manager, Group Public Affairs Division, NNPC says operators of gas plants and other petroleum products facilities in the country must ensure strict adherence to safety rules and regulations.

Also, Auwalu says the DPR will begin the enforcement of the Minimum Industry Safety Training for Downstream Operations (MISTDO) at petroleum facilities nationwide from January 2021.

``The growth of Nigerias downstream sector has resulted in increase of incidents leading to loss of lives, damage to property and environmental pollution. 

``Some of these incidents have come from fallen tankers, petrol station fires, gas explosion and vandalism. 

``Our records show that 70 per cent of accidents in the Nigerian oil and gas industry between 2013 and 2019 occurred in the downstream sector, he says.

2021 Projection for the industry

In their projections for the future, experts believe that the foundation laid in 2020 in spite of the enormous challenges will help the country actualise its vision for the oil and gas industry.

The experts say the autogas policy, increase in domestic utilisation of gas, full deregulation of PMS and coming on stream of the Dangote Refinery in Lagos and other modular refineries in Bayelsa, Rivers and Edo portends good omen for the country.

They also wants quick passage of the PIB to provide the legislative framework that will usher in a new era for Nigerias oil and gas industry and transform the country into a petroleum product refining hub. (NAN)

A Review of the Nigerian Power Sector in 2020 By Solomon Asowata, News Agency of Nigeria (NAN)

A Review of the Nigerian Power Sector in 2020 

By Solomon Asowata, News Agency of Nigeria (NAN)

The power sector is a critical aspect of the economy and getting it right will help transform Nigeria into an industrialised country hence successive governments have continued to make massive investments and implement several policies to actualise this objective.

The year 2020 marked seven years since the privatisation of the Nigeria Electricity Supply Industry but unfortunately, Nigerians are yet to feel the impact of the privatisation exercise.

Power generation still hovers around 5,000MW while transmission and distribution to end users is constantly being plagued by disruptions caused by obsolete equipment and vandalising of power infrastructure.

However, in spite of these challenges and the COVID-19 pandemic, the sector recorded some significant achievements which could serve as a launching pad to making electricity available for majority of Nigerians in the coming years.

Below is a review of some of the major issues which occurred in the sector in the outgoing year.

Siemens $2bn Power Deal 

In February, the Federal Government signed a deal with German electricity giant, Siemens Group to find a lasting solution to Nigerias energy crisis.

The deal which was signed on behalf of the country by the late Chief of Staff to the President, Mr Abba Kyari, before his unfortunate demise a few months later, will not only enhance the distribution network but will also increase generation capacity to the tune of 40,000MW.

The deal, signed under the Presidential Power Initiative (PPI) is expected to save the nation $1 billion annually with Siemens providing general technical training for employees of Electricity Distribution Companies, Transmission Company of Nigeria and the regulators.

The Federal Government also approved the sum of N8.64 billion as part of counterpart funding for the Phase 1 of the PPI which includes projects in transmission, distribution, metering, simulation and training.

Mr Saleh Mamman, Minister of Power, says, This significant, timely and high-level intervention between President Muhammadu Buhari and Chancellor Angela Merkel addresses critical infrastructure deficits in the value chain and helps reposition the power sector to become more attractive, viable and investable.

Similarly, Mr Adeola Samuel-Ilori, National Coordinator, All Electricity Consumers Protection Forum, says the deal can help Nigeria put its energy woes behind if properly implemented.

``The contract as signed, will enhance not only the distribution networks but also increase generation capacity to the tune of 40,000MW.

``Another beautiful thing about the contractual agreement is the elimination of middlemen and subcontractors which characterised past government efforts and led to humongous fraud.

``The deal with Siemens is government to government tripartite agreement.”

He insists the Buhari-led administration will largely be remembered for the success or failure of the deal just like its predecessors which spent millions on the power sector with nothing or little results.

Service Reflective Tariffs (SRT)

On Sept. 1, the Nigerian Electricity Regulatory Commission (NERC) approved Service Reflective Tariffs (SRT) for the 11 DisCos which led to increment in electricity tariffs for customers enjoying 12 hour supply and above daily.

The increment was opposed by labour groups and following talks between the government and the union leaders, its implementation was suspended on Sept. 28 for a period of three weeks.

However on Nov. 1, after an agreement was reached by the parties and slight adjustments made by the DisCos, the implementation of the revised SRT took effect.

Mr Dafe Akpeneye, Commissioner, Legal Licensing and Compliance, NERC, says the Multi Year Tariff Order (MYTO) 2020 was approved by NERC for the DisCos with effect from Sept. 1 after series of dialogue with all stakeholders in the industry.

He explains that the last MYTO was done in 2015 but became effective in 2016, adding that the new review was done to ensure that rates charged by DisCos are fair to customers.

Akpeneye says it is also to ensure that DisCos operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.

According to the commissioner, the rationale behind the SRT is to ensure that the issue of blank increment in tariffs for all customers is removed.

``The SRT is an innovation to remove unfairness in billing customers. The customers have been placed in Bands A, B, C, D and E depending on their hours of electricity supply.

"Only customers enjoying daily supply of 12 hours of electricity and above are affected by the increment and the DisCos must guarantee these hours of supply to the locations, he says.

National Mass Metering Programme 

With 59.6 per cent of electricity customers on estimated billing, the president on Oct. 30 flagged off the National Mass Metering Programme (NMMP) targeting 6 million households.

The key objectives of the NMMP are to: increase Nigerias metering rate, elimination of arbitrary estimated billing; and strengthening the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity.

The programme also aims to support Nigerias economic recovery by creating jobs in the local meter value chain, reduction of collection losses and increasing financial flows to achieve 100 per cent market remittance obligations of the DisCos.

It will further improve network monitoring capability and availability of data for market administration and investment decision making.

 Mrs Folake Soetan, Acting Chief Executive Officer, Ikeja Electric Plc, says the Disco will meter 106,000 customers under the scheme in the first phase.

``For the first phase of the programme, which will run till the end of the year, Ikeja Electric is rolling out over 106,000 prepaid meters to customers across its six Business Units - Ikeja, Abule-Egba, Akowonjo, Oshodi, Ikorodu and Shomolu."

According to her, beneficiaries of this programme, which will cut across all locations in IE network, will not be required to pay upfront for the installation of meters. 

Similarly, Mr Adeoye Fadeyibi, Managing Director, Eko Electricity Distribution Company (EKEDC), says 100,000 customers under its network will get pre-paid meters during the first phase.

``The mass metering programme is a welcome development and a boost to the deepening of the Nigeria Electricity Supply Industry (NESI). 

"The programme couldnt have come at a better time than now given the impact of the COVID-19 pandemic on businesses and household income. 

``We are happy for the initiative and acknowledge governments renewed desire to improve the power supply and bridge the metering gap. 

``Electricity as we all know is an important essential needs of any society and we all have acknowledge the menace of the estimated billing both on the customers and even us as a business.

``It is my belief that with this mass metering initiative we can begin to say we are on a path to better days ahead. 

``In the next 18 to 24 months, over six million meters will be distributed across households in the country and for us at Eko, we will be rolling out over 100,000 meters in the next few weeks in the first phase of the programme, Fadeyibi says. 

Mr Uche Ike, Executive Director, The Energy Forum, believes that investments and policies made in 2020 will begin to yield the desired results in power supply and distribution in the near future.

"Hopefully, we will begin to see the benefits of the Siemens deal in the second or third quarter of 2021 but Nigeria must continue to pay its counterpart funding for the project," he says.

Also, Samuel-Ilori says NERC must live up to its statutory obligations to enable Nigerians enjoy stable power supply.

He says the regulatory agency should ensure they the DisCos are not shortchanging customers, especially with the way they went about the implementation of the SRT.(NAN)

 

Estimated Billing as the bane of Nigeria’s power sector reform

By Solomon Asowata

 

News Agency of Nigeria (NAN) Features

 

When the Nigerian Power Sector Reforms started in 2005, there was optimism that the country would get its act together within the next few years and increase its power generation, transmission and distribution to be able to meet the demands of its huge populace.

 

The hope was hinged on the private sector’s involvement after the unbundling of the ineffective Power Holding Company (PHCN) Plc following the enactment of the Electric Power Sector Reform Act, 2005.

 

Consequently, the assets and liabilities of PHCN were transferred to private power generation companies (Kainji Hydro Electric Plc,  Shiroro Hydro Electric Plc,  Sapele Power Plc,  Robin Power Plc,  Afam Power Plc and Ugheli Power Plc).

 

The transmission arm was transferred to the Transmission Company of Nigeria (TCN), which is fully owned by the Federal Government that also owns a 40 per cent stake in the 11 Electricity Distribution Companies (Discos).

 

The Discos are: Abuja Electricity Distribution Company, Jos Electricity Distribution Company,  Ibadan Electricity Distribution Company, Benin Electricity Distribution Company,  Enugu Electricity Distribution Company and Kaduna Electricity Distribution Company.

 

Others are Kano Electricity Distribution Company, Eko Electricity Distribution Company, Ikeja Electricity Distribution Company, Port Harcourt Electricity Distribution Company and Yola Electricity Distribution Company.

 

Almost 15 years after the reforms started, the Nigerian power industry remains characterised by unstable power supply, owing largely to inadequate installed capacity, frequent breakdowns and high inefficiency levels.

 

Nigeria currently accesses far below its installed generation capacity of about 7,228MW, as less than 5,000MW is generated and transmitted.

 

Some experts believe that one of the major challenges plaguing the sector is estimated billing by the Discos which has made them unable to think outside the box on how to improve their own end of the electricity value chain.

 

Presently, there is a bill before the National Assembly seeking to criminalise estimated billing which has the support of many Nigerians, due to the exploitative nature of some of the Discos.

 

In the House of Representatives, the bill was passed in October 2019.

 

The Nigerian Electricity Regulatory Commission (NERC), in its Second Quarter 2019 Report, said 57.08 per cent of end-user customers were still on estimated billing as at the end of June 2019.

 

According to the commission, out of 8,881,443 registered active electricity customers, only 3,811,729 (42.92 per cent) had been metered.

 

It said complaints relating to metering and billing also accounted for 52.80 per cent (77,036) complaints received by the Discos out of a total 145,959 complaints received in the period under review.

 

The commission believes it will take about three years to close the metering gap in the country at the current pace of the Meter Assets Providers (MAPs) scheme initiated by the regulatory agency to fast track provision of meters to customers.

 

Worried by the incessant billing disputes between end-user customers and the Discos, NERC resolved to cap estimated billing for various categories of electricity consumers from February.

 

NERC’s Chairman, Prof. James Momoh, says once the regulation is released, unmetered customers will only pay what the commission compels Discos to collect as estimated bills.

 

But Mr Adeola Samuel-Ilori, National Coordinator, All Electricity Consumers Protection Forum, says the move will only embolden Discos to slow the pace of metering customers, especially with the government’s plan to increase electricity tariffs.

 

Samuel-Ilori said: “If the regulators are up to their tasks, should capping estimated billing be their priority?

 

“It clearly shows that they have been pampering the Discos when they are supposed to ensure that all customers are metered.”

 

According to him, until customers begin to get value for the electricity consumed, the power sector will remain comatose.

 

Similarly,  Mr Sural Fadairo, National President,  Energy Consumer Rights and Responsibilities Initiative, claims some electricity customers have refused to pay their bills due to disputes with Discos.

 

“If people are refusing to pay now because they are disputing their bills, will they now pay if it is further increased?

 

“What they need to do is to meter all electricity customers so that we can end the issue of estimated billing,” he said.

 

Mr Uche Ileogbunam, Founder, Energy For All, says estimated billing poses a great risk to the overall power sector value chain and will continue to hold it down.

 

“We talk about under-remittances by Discos and this is partly caused by refusal of some customers to pay their bills as and when due because they feel shortchanged.

 

“Some customers get as high as N30, 000 monthly bills which they believe is unfair.

 

“So, the Discos find it hard to meet their obligations to the Nigerian Bulk Electricity Trading (NBET) Company which in turn affects payments to TCN and Gencos for their services.

 

“I think we can only get this aspect right when the majority of customers have been metered and pay for energy being consumed.”

 

On their part, both Ikeja Electric and Eko Electricity Distribution Company say they are vigorously pursuing the metering of customers within their network of operations.

 

Mr Felix Ofulue, Head, Corporate Communications, IE, says the company recently opened bid to add more Meter Assets Providers (MAPs) to fast track the metering of  its customers.

 

According to him, IE is targeting the registration of over a million electricity customers in the next three years.

 

He said: ‘’We just carried out advertisement to bring in more MAPs because we envisage that there will be more demand in 2020.

 

“We, as a business, are encouraging more customers to embrace pre-paid meter because we are not interested in estimated billing.”

 

Also, Mr Adeoye Fadeyibi, Managing Director,  EKEDC, says the company remains committed to ensuring that all its customers get metered under the MAPs scheme.

 

“This is to stop incessant complaints over the estimated billings by customers, bridge the metering gap and accelerate meter roll out to enhance revenue generation,” he said.

 

Despite these assurances, many experts believe criminalising estimated billing by Discos is the way to go and are urging the National Assembly to urgently finalise passage of the bill.

 

They say this will force the hands of the Discos and other players to put in more efforts to eliminate such practice, thereby ensuring that Nigerians get the right value for their money. NANFeatures

**** If used please credit News Agency of Nigeria (NAN) and the writer.

SON tasks importers on manufacturing

The Standards Organisation of Nigeria (SON) has urged importers to venture into manufacturing to create wealth and job opportunities for the nation's teeming unemployed youths.

The  Director General,  SON, Osita Aboloma said that the importer should make efforts to establish manufacturing and assembling of electronic products  to boost trade.

Aboloma said such initiative would ho a long to save the country's foreign exchange since most of what is imported into the country can be manufactured locally.

He advised importers to get the required standards to make their products competitive, noting that with the African Continental Free Trade Agreement (AfCFTA) accented by President, Muhammadu Buhari, Nigerian manufacturers must up their game so as not to be overwhelmed by foreign goods.

Aboloma was represented  by the Director, Inspectorate and Compliance Directorate, Mr Obiora Manafa, at a one day sensitisation programme with importers and pdealers of electronics in Alaba international market in Lagos.

He said adhering to standards was the surest way to bring back the glory days of Alaba international market.

He expressed SON's readiness to work with local manufacturers to make their goods exportable in a bid to earn foreign exchange  and boost the Nigerian economy

He said, "Instead of faking established brands, build your own brands and make money from it. We are also advising them to go into manufacturing, we cannot continue to depend on import of electronic products. 

" For example, Made in Nigerian cable is one of the best  all over the world. The electronic  products  importers should emulate the cable sector by going into manufacturing.

" We are open anytime to help you to  in selecting tmaterials and  equipment for you start producing. This is better for you and for the economy at large."

According to him, the fight against substandard products is a big one, saying that a lot of unscrupulous are been made to face the law for dealing in substandard products to serve as deterrent to importers who have intentions to indulge in the nefarious act.

He pointed out that SON has in its warehouse substandard electric cables waiting for court order to be destroyed, while also restating it's commitment to bringing down the influx of substandard goods into the country.

"We are ust waiting for the court order to destroy, while we have obtained court orders for some of them, very soon we are going to do destruction so that people will see the extent we have gone in this fight and we are not going to relent on our effort in our fight against substandard product. It is a very huge market filled with a lot of smugglers bringing in goods without SONCAP certificates. We fish out these people by going to their warehouses and even outside the market. It is a continous fight and we are really making progress," he added.

He stated that the electronic dealers have agreed to join hands with SON to fish out the bad eggs giving Alaba international market a bad name, saying that the workshop was aimed at bringing back the lost glory of the biggest market in West Africa.

He said in line with the federal government's commitment to creating an enabling environment for the ease of doing business in Nigeria, the agency has come to further demonstrate its deep commitment to continual improvement in products and services delivery.

He added that SON has made concerted efforts to facilitate trade and fast track the import process by upgrading its portals to be functionally active, reduce its service charges, reduced the turn around time through automation and currently test-running the deployment of electronic demand notes, receipts and cargo clearance to reduce the turnaround time and human contact in its service delivery.

Earlier, the president, Alaba International Amalgamated Trader Association and Executive Chairman, Electrical Dealers Association of Nigeria (EDAN), commended SON's integrity, capacity for work and tireless contribution and encouragement toward ensuring that the market stands out as an exemplary leading market with quality assurance practices.

He highlighted that the agency's sensitisation visits have created great positive impact in its industry, stating the association's readiness to collaborate with SON to drive its zero tolerance for substandard imports programme.

"We are here for you as brothers, friends and partners in progress to comply and collaborate with you to ensure product quality and standard and at the same time look forward for an up-to-date information on standardisation and its benefits, advice and assistance on your product quality management for an improved cost effectiveness and adequate technical support to match the quality required for competitiveness in global trade," he said.

He appealed to SON to regulate the movement, arrest and closure of warehouses by working with the office of the Executive Chairman of the association.

The president general, EDAN, High Chief, Stephen Agabige, commended SON's enforcement activities in the market, saying that before now it was very difficult to sanitise the electrical market, but for the intervention of SON it is gradually winning the war.

"When they came here last week, we took them round in our bid to show our support to SON and to say that we are not in support of fake products in our market. We showed them the people who indulge in fake products. We also have a committee established to ensure sanity in our market. We have also given them more power to carry out their duties and in two or three weeks time, every product in our market will be original," he said.

He urged dealers to do the right thing, alluding that the sensitisation was an eye opener for most importers to make them competitive.

Over 700 participants attended the events

Air Peace begins flight to Warri

Nigerian and West African largest carrier, Air Peace on Friday, Sept. 27, 2019 began flight operations from Lagos to Warri,in Delta State

The airline's inaugural flight which took off from the Murtala Muhammed Airport 2, Lagos touched down at the Osubi Airport , Warri at 11.15pm.

The ERJ-145 aircraft piloted by Capt. Crosby Otobo was welcomed with a water guard salute by fire fighters stationed at the airport .

Mr Allen Onyema, Air Peace Chief Executive Officer, said the move by the airline to extend its operations to Warri was part of the airline's no-city-left-behind project 

Onyema, represented by Mr Adeyemi Ayodeji, Manager, Ground Operations, Air Peace, said Warri was the 14th city the airline was operating into in Nigeria.

"We want to assure our passengers that this is just the beginning. We have plans to introduce flights from Warri to Port Harcourt and also from Warri to Abuja, " he said.

Onyema said the airline operates to five regional locations in West Africa (Ghana, Liberia, Sierra Leone, Gambia and Senegal) and had on July 5, 2019 began flight operations to Sharjah- Dubai in the United Arab Emirates.

According to him, Mumbai in India and Guangzhou , China will soon come on board as part of the airline's expansion on the international routes with its fleet of B777 aircraft.

He said the flight to Warri would be once daily and assured the Air Peace passengers of on-time departure and safety which were very key to the airline's operations.

Receiving the airline's officials, Mr Paul Erugbenu, Chairman, Osubi Community and the Community Secretary, Comrade Williams Eyarunu, thanked Air Peace for extending their operations to the airport.

Also, passengers on board the inaugural flight who were gifted various items by Air Peace expressed delight with the development noting that it would make the route more competitive for the airlines thereby reducing air fares.

Increase in tariff not panacea to Nigeria power sector's problems, says expert

An energy expert, Dr Damola Omole, Head, Power and Energy Strategy, Dangote Industries, says increasing electricity tariff will not solve the the problems bedevilling the power sector in Nigeria.

 Omole made the assertion on Wednesday at the ongoing Power Nigeria Agenda Exhibition organised by Informa markets in Lagos.

Omole said increasing the tariff would only amount to funding inefficiency, adding that the Federal Government should intensify efforts to encourage more players to invest in the sector.

He said the government should dilute the Distribution Companies to minority stake and thereafter sell its major stake to more credible players.

According to him, consumers should be metered before effecting tariff increases as estimated billing is generally unfair.

Omole also urged the government to look into the issue of supply and cost of gas to the thermal power plants in order to reduce the over N7.5 trillion lost annually to irregular power supply.

He noted the country's manufacturing sector was worst hit by the irregular supply with about 17 million small and medium scale businesses spending over N2 trillion annually in running generating sets.

Omole said: "Manufacturers only get seven hours of supply on average with the balance of over two-third self sourced.

"Grid supply should be 20,000MW for manufacturing sector to thrive but supply is currently less than 4,000MW.

"Grid power supply is irregular and unpredictable for manufacturing processes."

He explained that electricity consumed through alternative means cost N78 per kilowatt while supply from the grid was at N32 per kilowatt , thus increasing the cost of production for manufacturers.

According to him, the ripple effects of power shortages include reduced production, job losses, outright closure of factories or relocation to other African countries.

Omole noted that the power sector reforms  had failed to yield the desired result due to the failure of the generating companies,the transmission company and the distribution companies to align for a common purpose.

He said the lack of synergy between the layers in the energy value chain had resulted in over 2,000MW of electricity not been supplied to the end users by the distribution companies.

Omole also decried the lack of industrial clusters across the country which would have been of great benefit to Nigeria manufacturers and enable them compete with their contemporaries outside the country.

On his part, Mr Gareth Rapley , Group Exhibition Director, Informa market, said the exhibition which had over 130 local and international exhibitors was put in place to find solutions to the challenges facing the power sector in Nigeria.

Rapley noted that the energy problem was not peculiar to Nigeria and could be overcome with collaboration between the government and the private sector. 

He said the conference therefore was an opportunity for players in the energy sector to dialogue and exchange ideas on how best to address the issues confronting the sector.

Nigeria Adopts 10 standards to boost oil and gas industry

Industry demands and the need to keep up with best international practices in the Oil and Gas sector in Nigeria has spurred Standards Organisation of Nigeria into paving the way to adopt ten America Petroleum Institute(API) Standards for the nation.

This was disclosed by the Director General/ Chief Executive Standards Organisation of Nigeria (SON) Osita Aboloma Esq. during a joint Technical Committee (TC)meeting on Oil and Gas / Petroleum and Petro Chemicals convened in Lagos recently

Speaking at the meeting, the Director General SON, represented by the Director Standards Development Mrs. Chinyere Egwuonwu revealed that all the standards are critically relevant to operations in the Oil and Gas industry, hence the need to adopt them in collaboration with the stakeholders as Nigerian Industrial Standards (NIS)

According to him, adopting of international standards as national standard is not a new development, especially where the standards are elaborated by global leaders such as API who since 1919 have established a clout for convening subject matter experts in establishing, maintaining and distributing consensus standards for the oil and gas industry.

He further indicated that, “the API standards being adopted today are recognised not only for their technical specifications but also for their third party accreditation which facilitates acceptance by international bodies and has been a cornerstone in developing standards for the worldwide oil and natural gas industry.”

However, Aboloma cautioned that “in adopting international standards we must ensure that the standards are not in conflict with our statutory regulatory requirements and special consideration should be on or environmental factors, economic considerations, security of products, national interest and most of all global best practices.”

According to Aboloma, the nation’s oil industry does not exist in isolation therefore the standards adopted will ensure the availability of the NIS, enhancing market competiveness, prevention of dumping of goods, promoting export and a reliable basis for technological transfer and industrial development.

The Joint Chairmen of the TCs, on Oil and Gas/ Petroleum and Petrochemicals, Prof Joseph Ajienka of the University of Port-Harcourt and Prof Sunday Ojolo of University of Lagos sitting in for Prof Boniface Okorie of the UNN respectively, in their varying capacities spoke separately during the meeting

They both appreciated the DG SON for giving them the opportunity to serve, while exhorting all the participants to carry out what was described as a call to national duty with zeal and ensuring their comments and contributions are vibrant and robust enough to achieve the purpose of the TC

The API Standards adopted and rechristened NIS include are as follows:
API RP 50 2013 Natural Gas Processing Plant Practices for Protection of the Environment

API RP 520; 2014 Sizing, selection and Installation of Pressure-relieving devices in Refineries Part 1 Sizing and selection
API RP 520 2: 2015, Sizing, Selection and Installation of Pressure- Relieving Devices in Refineries Part II Installation
API 553: 2012 Refinery Valves and Accessories for Control and Safety Instrumented Systems
API 554: 2007 Process Instrumentation and Control

API 12L: 2008 Specification for Vertical and Horizontal Emulsion Treaters
API 2000:2014 Venting Atmospheric and Low –Pressure Storage Tanks
API 12F:2008 Specifications for Shop-Welded Tanks for Storage of Production Liquids
API 12D: 2008 Specification for Field Welded Tanks for Storage of Production Liquids
API STD 610: 2011 Centrifugal Pumps for Petroleum Petrochemical and Natural Gas Industries.

Mr Agboola Afolayan, Deputy Director Standards Development / Head Chemical-Tech moderated the proceedings of the day while Engr Oljuie Head Lagos 1 office / Group Head LPG Engr. Nwaoma Olujie was also on hand to support in driving the process which culminated in the adoption of the API standards

Stakeholders represented from the oil sector include representatives of, Cakasa Nig Comp. Ltd., Peachlite Eng. Consulting Services, Winelight Analytical Systems, Lopa Energy Ltd. Addax Petroleum, Dorman Long Engineering, Mobil Producing Nigeria and agencies like Nigeria Society of Chemical Engineers, FIIRO, Nigeria Institute of Mechanical Engineering and the Nigerian Institute of Welders.