Wednesday, 29 June 2016

Nigeria running out of crude



Nigeria’s future looks bleak as its oil reserve depletes drastically, accounting for only 3.1 percent of OPEC crude reserve.

According to OPEC, Nigeria’s proven crude oil reserve as the end of 2014 was 37.07 billion barrels ,and are found mainly at the Niger Delta region. Read More http://www.opec.org/opec_web/en/data_graphs/330.htm

 According to the estimates, more than 80% of the world's proven oil reserves are still located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to around 66% of the OPEC total.

OPEC Member Countries have made significant additions to their oil reserves in recent years, for example, by adopting best practices in the industry, realizing intensive explorations and enhanced recoveries.

 As a result, OPEC's proven oil reserves currently stand at 1,206.00 billion barrels.

Nigeria not honouring OPEC’s recommendation of Environment protection




Niger Delta
Nigeria’s environment continues to be one of the most polluted regions on earth in-spite of the fact that the country is signatory to many international treaties and agreements on environmental sustainability.

A quick look is the recommendation of OPEC in which the country is a member.

 Details of OPEC's stand on the environment is on its websitehttp://www.opec.org/opec_web/en/press_room/315.htm
 
According to OPEC, all Member Countries are signatories to the United Nations Framework Convention on Climate Change (UNFCCC) and regard environmental protection as a high priority. 

This position has been variously expressed by  OPEC’s Secretary General to  High-Level Segment of the Conference of the Parties (COP) organized annually by the UNFCCC.

Transparency and Accountability Will Deliver Nigeria's Oil Industry--NRGI



In spite of the unprecedented fall in oil price, Nigeria can still make enough savings for the future from its crude oil.
Dauda

The country Officer of the Natural Resource Governance Institute, NRGI, Dr. Dauda Garuba who stated this in a lecture during the ongoing Masters Class for oil and Gas Reporting, in Lagos underlined the entrenchment of transparency and accountability in oil and gas business as among many measures, need to create wealth in the sector.

He said, oil and gas sector would still profit the country if the agencies involved, could entrench transparency and accountability in the sector, which he noted was lacking since oil exploration and exploitation began for about 60 years now.

 “The oil and gas sector is very opaque in the sense that outsiders do not have information about the business going on there. There are many  ways that revenue are lost, “Under the precept 10 which is on private sector investment. Is the government improving the business environment that allows the private sector to invest? Is the government improving the regulatory environment to allow the private sector to grow? Precept 11, is on the role of home government of extractive company. Is home government acting to inquire, enforce, propagate best practice in a way which supports efforts at the host community? Are oil companies following best practices in contracting, operation and payments?”

According to Dr. Garuba the accountability mechanism include the allocation of oil wells based on merit, proper engagement with oil producing communities to avoid restiveness which could disrupt oil exploitation and avoidance of non- profitable business deals.

 Garuba listed other measures to generate more income from oil to include expanding the value chain such as processing crude at home and using bye products from crude oil drive petrochemical companies, which lead to massive job creation and income generation.

Dauda said, past government mismanaged oil revenue which is the reason the country is facing difficult times now.

“The question is,  is the country targeting the right balance between consumption and investment, or you are eating tomorrow like we have done? We are eating all that we have earned from oil. There was the stabilization fund. The last time audit was conducted in that by NEITI, that was between 2007 and 2011, it showed that all the fund that we established including the cash call, the stabilization fund and the natural resource fund, Nigeria has been taking the money to do other things that they were not even meant for, to the point that even money was given to buy vehicle for a ministry”.

He also stressed the need to increase oil exploration which he said drastically reduced since 10 years ago, thus diminishing revenue prospect from the oil and gas sector.

It is believed the Nigeria missed the opportunity to save enough money for future use when oil being a non-renewable resource may have finished or its price reduces drastically as it is now.

For instance, between 2010 and 2014 when oil price was at its highest ebb, the country made a whopping sum of 424 billion dollars from oil sale, yet it has just about 1 billion dollars in its sovereign Wealth Fund, which is savings for future generation.

The Masters course in Oil and Gas Reporting was organized by the Natural Resource Governance Institute, NRGI, in collaboration with School of Media and Communications, Pan Atlantic University and Premium Times. 

Twenty Five journalists from different media houses and online media in the country including the Federal Radio Corporation of Nigeria, NTA, NAN, The Guardian, New Telegraph, The Punch, Premium Times and Newsbreakers are attending the two weeks residential course.

By Innocent Onoh

Media Make Recommendation To The Petroleum Industry Bill



Media professionals covering the oil and gas sector, as well as the environment, have recommended the payment of royalty to government for offshore crude oil drilling over 1000 nautical miles.

The journalists, who are participants undergoing the Master's Class for Oil and Gas Reporting at the Pan Atlantic University, Ajah, Lagos  made the recommendation while studying the Petroleum Industry Bill, expected to be deliberated upon any moment from now by the National Assembly.

For long International Oil companies , IOCs, have been exploiting Nigeria’s  crude oil for free at offshore drilling over 1,000 nautical miles water depth.

The no royalty payment on far offshore drilling, an agreement reached between the Nigerian government and the IOCs for many years , was based on argument  that environmental pollution on Nigeria’s landscape was not too serious at such far offshore drilling.

But the journalists said , it was not proper for the IOCs to exploit crude for free arguing that however far offshore, the environment was not totally protected, explaining why the Niger Delta remains one of the most polluted regions on earth.

“The journalists' position on the issue was based on the fact that most of the country's crude production and reserve are in Offshore and not collecting royalty at such offshore depth would amount to denying the country of benefits from oil”, the presenter said.

He continued, “ "It is unfair to have no zero royalty where we have the bulk of the oil". Most of Nigeria’s crude are offshore. The journalists also recommended that the sharing of exploited crude oil between government and  IOCs should be mid-way between the drilling head and the external terminal”.

“However, they believed that the Nigerian government should put security in place to protect the oil pipelines from vandalism which has been the head ache of IOCs”.

The PIB is said to be debated again in no distant time  at the National Assembly, because the government wants to sign the PIB this year to enable the implementation of the new oil reform.


Meanwhile, the Federal government has been advised to factor in the impact of climate change on water depth in determining the percentage of royalty accrued from crude oil drilling, which is calculated based on depth of drilling.

 An oil revenue consultant Oyinda Adedokun who gave the advice in a lecture entitled, “ Revenue flow, allocation and management of oil and gas”  said, climate change causes the water level to increase or decrease at some points of the year, thus making it difficult to determine the exact depth of water.

Adedokun  said, to play safe, the water level should be measured regularly and the average taken for the calculation.

The royalty on oil is based on the depth of water with oil companies exploiting crude for free at depths over 1000 nautical miles.

According to the Fiscal Arrangements on Royalty on  and production amendment regulation, 1969, Petroleum drilling in Nigeria, shows that at 100 miles water depth , the IOC’s pay 18.5%; between 101 -200 meters they pay16.5%; 201-500meter they pay 12%; 501-800meter they pay 8%, 801-1000 they pay 4% and over 1000meters they pay 0 percent.

Earlier in a lecture, an oil revenue consultant, Mr. John Adidi said it was condemnable to allow any company to tap non-renewable mineral resources for free when in other climes, proceeds from such are invested for the future generation and to prepare for the difficult days when the resources must have finished.

“ It is a sin  to Nigeria for International Oil companies to exploit crude oil for free. That is why we are calling on the National Assembly to speedily pass the Petroleum Industry Bill, PIB, which will correct most of those injustices against the country by International oil companies. If the Petroleum Industry Bill is signed into Law, never again will International Oil Companies exploit Nigeria’s crude oil for free in the name of zero royalty on offshore drilling over 1000 meters water depth”.
  “As part of the provisions, the PIB seeks to establish what we call the Petroleum Host Community Fund at 10% of the net profit which will help to develop the communities where oil is produced and calm the unrest there. The PIB also imposes a tax called  the Nigerian Hydrocarbon Tax and many more, all aimed at helping the country derive maximum benefit from its oil”
 The PIB was submitted to the National Assembly on 18 July 2012, and is expected to be deliberated upon and enacted into law in the near future.

Upon commencement, the PIB will repeal most laws which currently govern the Nigerian Oil and Gas Industry, including the inclusion of bitumen in the definition of petroleum.

By Innocent Onoh

Tuesday, 28 June 2016

Corn business flourishes in Lagos





Seasons come and go, but what makes the difference is what they come with or what they leave behind.

Although Lagos State is by all standard a city characterized by modern life, the state is well in tune with what happens in most rural areas, in other parts of Nigeria.

Office workers stop over to buy corn
Corns and Pears for sale
One of such aspects is the enjoyment of proceeds from the farm.

A drive along Lekki-Epe Expressway, Lekki ,Lagos ,exactly on kilometer ,22 roughly opposite the Lagos Business School, dozens of residents including the high and mighty , converge on the road side to buy fresh corn.

“Whether roasted corn or cooked one, you see them to buy as you want them. The beauty of it is that, they even sell local peer popularly called, Ube . A combination of the two, is a great experience. It cannot be any better”.

That was the words of Dr. Theophilous Nwuzo who packed his car just like many others to buy corn.

In a space of ten minutes, over 20 cars had parked and their owners alighted to buy corn.

For those who did not want to come down, the corn sellers who were many brought the corns to them right in their cars.
The business flourishes in the evening. 

Office Workers and business people alike, stopped over to buy corn which tends to replace the usual snacks that they bought for their children.

“My children like corn a lot, so I buy almost every day”, asserted a pregnant woman, Esther Williams who was returning from work in the company of her husband.

For the traders, this is their own to shine. 

Funmi Adeyemi , one of the corn sellers there said; “the business is an opportunity for the poor to survive the hash times in the land". 

"The suffering in this Lagos is just too much. For over six months, I had nothing doing because the Lagos State government demolished our shops on Lagos –Badagry Expressway, Orile axis". 

"So, we had to relocate here and since then, we have been thinking of what to do in order to assist my husband in training our children".

 "As corn came out, I joined other women. I buy like three bags of corn". 

"By the grace of God, sometimes I sell all of them".

 "In a good day, I can make up to two thousand naira gain".

" Our prayer is that, let the government not come here and drive us away again”, she concluded.

Funmi’s story is not different from those of her colleagues. 
To make more money, most of the women in the business come with their children. 

While the women roast and cook the corns, their children run after customers with their colleagues, which is really not an easy task.
They have developed an eagle eye, to identify prospective corn buyers and run after them.

As the business strives in Ajah, so it is in Ketu, Ikorodu, Ikotun , Oshodi, Orile and in fact any other part of Lagos.

The business of corn just replaced that of Mango, which has been flourishing since March to April , in particular.

But the question goes, why can’t the foods and fruits be available throughout the year?

Reacting, Mr. Nwoye Ukaoha, a secondary school teacher explained;
 “This is just annoying that within a short period, these corns would vanish and we go back to square one". 

"When that happens, we would see no corn to buy and the business on it which sustains these poor women would stop. It is high time we started practicing modern agriculture’’.

Maize also known as corn, is a large grain plant first domesticated by indigenous peoples in Mexico about 10,000 years ago. 

The six major types of corn are dent corn, flint corn, pod corn, popcorn, flour corn, and sweet corn. 

The leafy stalk of the plant produces separate pollen and ovuliferous inflorescences or ears, which are fruits, yielding kernels (often erroneously called seeds). Maize kernels are often used in cooking as a starch.

Its botanical or scientific name is “ Zea mays “.