Business
Expert Faults Planned Down Stream Deregulation
It is barely five years since Charles McPherson, the former Senior Adviser, Oil and Gas, World Bank delivered a paper “Drivers of Price and Tax Reform” during Nigeria Gas Policy Stakeholders Workshop in Abuja.
Since September McPherson had been in the country, this time as the managing Director of international Monetary Fund (IMF) on the invitation of the Federal government, yet on another assignment ‘mediation of the current face-off between government and the Foreign Oil Companies’ over the very voyage he set/launched yet without adequate resources for the mission.
Speaking in Port Harcourt, the Chief Coordinator, Institute of Chartered Economists of Nigeria, South- South, Mr. Friday Udoh said the reschedule petroleum downstream deregulation policy of the Federal government is faulty, describing deregulation as a perfect agent that is capable of transforming economic landscapes of any nation only when structuring in a more sustainable way. “The American, Britain and many other nation does it and it works bringing down the prices of oil and gas” of all “what drive this success is adequate structure and capacity, in Nigeria to my understanding, private sector is gone,” he asserted.
The Coordinator, noted that deregulation build-up market based price mechanism for increasing balanced in supply and demand structure, complementing with appropriate instruments to give every consumers and producers alike within products supply chain liberty to exercise its right, at ensuring value for money and quality supply in the market, again shaping the market for appropriate and long- term up-front investment. Where are these instruments? He asked
Citing malfunctioning of the already inadequate 445,000 barrel per day referees in the country and the inability of government given private investor’s necessary cooperation to assists them in speeding up various private refinery projects. “The issue that bothered on the fully taken-off private refineries construction is not just the removal of subsidy alone, but enabling laws to galvanized their relationship with the upstream operator for security of feed stock and difficulty in accessing credit facility due to global and domestic financial structure failure, a situation that call for government intervention in addressing the challenges” “as I am speaking, the major components of the Amakpe Refinery, Eket is ready in United State and I feel that it is the responsibility of government seeking to know their problem and supporting this initiatives for the interest of its citizens by developing collaborative structure for contacts and innovative financial structure to boost local production capacity for appropriate pricing of Petroleum Products in the country, not only Amakpe alone but to others “He noted.
According to Mr Udob, the situation become more worrisome under a weak institutional environment referring to sector-level legal and regulatory framework whose capacity to influence and supporting sustainability and success of reform depend, more so its recognition as the beginning and implementation point of every successful reform, especially in a market oriented reforms as in petroleum sub-sector to protect the consumers, its mandate and clarity of rules defining her/his existence and relationship with other bodies, such as antitrust commission and relevant ministries. Is it the kind of Petroleum Products Price Regulation and Monitoring Agency (PPPRA) a tool for political joggling or Department of Petroleum Resources (DPR) in the face of disjointed supply chain capability? Earnestly, their activity creates more problem than can solve. He reiterated
Mr. Udoh likened reform measures to macro-economic policies and reform performance to economic indicators such as income per capita and the institutional aspect to the rule of law and property rights, again energy resource independence to geographical advantage of a state, to which careful thought need to be given while pointed out that the quality of institutions in the country can have a significance influence over economic development, sustaining continuity and the dynamic of reform process” At the moment kerosene goes at N300 per litre meaning that in an economy with many leaving in abject poverty and within $1 N140) per day, deregulation of downstream amounts to mass suicide, hence adequate thought must be given to economic indicators” He stated
He listed poverty as one of the greatest problem facing the country today and alarming unemployment rate which radical approach is needed to facilitate income growth through employment and ensure access to basic services and goods for the poor meaning that for successful reform, the Economic, Social, Environmental and Institutional Framework must be given adequate attention, considering that Petroleum product is the only source of energy qualified as “strategic goods” given rise to abuse and absent of standardization and quality control pricing and uncoordinated safety measures.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.