Business
Nigeria Imports Refined Petroleum Products Worth $28bn Yearly, Says Energy Consultant
By Derrick Bangura
The cost of importing petroleum products of all kinds into Nigeria has soared to over $28 billion on an annual basis, Blackgold Energy Authorities, an oil and gas consulting and advisory firm, has revealed.
The Principal Consultant, Blackgold, Dr. Oladunni Owo, disclosed this. Monday in Lagos at the ongoing two-day Nigerian Content Midstream/Downstream Oil and Gas Summit, with the theme: “Towards Maximising Potential in the Midstream and Downstream Oil & Gas Sector – A Local Content Perspective.”
This was just as the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, also disclosed at the event that Nigerian firm, Temile Development Company Limited, would this week sign an agreement with a South Korean shipbuilder, Hyundai Heavy Industries, for the construction of the second Liquefied Petroleum Gas (LPG) vessel under the $120 million contract earlier signed in 2018.
In her presentation at the summit, on the topic, “Challenges and opportunities in the Nigerian petroleum refining sector”, Owo put Nigeria’s per capita refining at 0.002 barrels per day, describing the situation as embarrassing.
“Nigeria’s total import for petroleum products is about $28 billion per annum. Nigeria is the largest producer of crude in Africa and the third-largest importer of refined products in Africa.
“Nigeria’s per capita refining is about 0.002 barrels per day, that’s very embarrassing,” she stated.
Owo stated that the country had not done enough in building refining capacity, saying in 2015, about 65 modular refinery licenses were approved by the federal government.
According to her, of those 65, only a few including Waltersmith Refinery and Niger Delta Refinery have commenced production.
She said the refining sector had been tainted with, “uncertainty due to adverse effect of regulator, subsidy, poor maintenance, general operational failure, inconsistencies, supply of feedstock, vandalization, piracy, all sorts, and all kinds.
“The objective of this is just to bring out the fact that our consumption is high and our import is also very high.”
Meanwhile, after the delivery of the first Liquefied Petroleum Gas (LPG) vessel in 2020, out of a two-vessel-building contract valued at over $120, signed in July 2018 between Nigerian oil and gas company, Temile Development Company Limited and South Korean shipbuilder, Hyundai Heavy Industries, will this week sign agreement for the construction of the second vessel.
Wabote, who disclosed this in his welcome address at the summit, said the agreement signing for the vessel construction between the two companies would be one of the key highlights of the World Gas Conference held this week in South Korea.
Wabote said that the vessel owned by a local indigenous company would further enhance the supply capability of the LPG across the country.
He explained that the agreement for the first vessel was signed in 2018 and that the vessel was delivered in 2020, noting that the agreement for the second vessel was a sign of self-propelled growth for Nigerian indigenous companies in the midstream and downstream sectors of the oil and gas industry.
“As you may be aware, the World Gas Conference is holding this week in South Korea. One of the key highlights of the event is the signing of the agreement to construct the 2nd LPG Vessel owned by a local indigenous company to further enhance the supply capability of the LPG across the country.
“Agreement for the first vessel was signed in 2018 and the vessel was delivered in 2020. I am pleased to note that agreement for the second vessel is being executed which is a sign of self-propelled growth for our indigenous companies in the midstream and downstream sectors of the industry”, Wabote stated.
He, however, said the initiatives put in place by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in line with the Decade of Gas declaration of the federal government was the National Gas Expansion Programme (NGEP) with three key elements namely Domestic LPG Expansion, Autogas, and Power Generation.
He said the Domestic LPG Expansion element of the program targeted 20 million homes to increase the country’s LPG penetration currently estimated at a national average of 13 percent.
He said a glimpse of the LPG value chain in the country presented another plethora of opportunities for which the board had also gone into partnership with some investors to develop different areas of the value chain.
The website maintained that the NCDMB’s touchpoints in the LPG value chain covered inland LPG production, LPG jetties/terminals, storage facilities, inland transportation, cylinders manufacturing, bottling, and retail.
He added that their partnership investments in the gas value-chain included a Partnership with NEDO Gas Processing Company in Kwale, Delta State, for the establishment of 80 million standard cubic feet per day (mmscfd) of gas processing plant and a 30mmscfd Kwale Gas Gathering hub.
Others, according to him included “partnership with Triansel Gas Limited in Koko, Delta State, for the 5,000MT LPG Storage and Loading Terminal Facility; Partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass
“Partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 Northern States of Kano, Kaduna, Katsina, Bauchi, Nassarawa, Zamfara, Niger, Plateau, Gombe, and Jigawa states; Partnership with Southfield Petroleum for the establishment of 200MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG.
“This represents about 10 percent of current LPG demand nationwide which will be produced in-country instead of being imported; Partnership with MOB Integrated Services for the construction of the 500MT Inland LPG terminal which is currently in operation at Dikko, Niger State.
“The partnership includes the construction of a Cylinder Refurbishment plant, procurement of 80,000bottles of LPG Cylinders, and acquisition of distribution assets consisting of Bridgers, bobtails, and cylinder distribution trucks to enhance LPG penetration across the target catchment areas.”
The executive secretary said the board also had a partnership with Amal Technologies to set up a plant in Abuja for the production of Smart Gas/Smoke Detector Alarm devices that monitors and detects smoke and all types of gas leakages thereby enhancing the safe usage of LPG in our homes.
He expressed delighted that the African Petroleum Producers Organisation (APO) had signed a Memorandum of Understanding (MOU) with the African Export-Import Bank (Afreximbank) to set the ball rolling in addressing the funding challenge in the continent’s oil and gas sector
Wabote said that based on the board’s 10-year Strategic Roadmap to achieve the 70 percent Nigerian Content target in the Nigerian oil and gas industry by the year 2027, the midstream and downstream sectors of the industry represented key areas to derive and extract value to meet their set target.
Business
Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa
Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.
The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.
Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.
The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.
Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.
A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.
He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.
This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.
“We must invest in power because it is the biggest determining factor for industries to thrive.
“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.
“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.
Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.
He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.
A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.
Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.
He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.
“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.
Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.
Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.
He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.
“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.
“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.
Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.
He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.
Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.
“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.
While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.
In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.
This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.
“It empowered the state houses of assembly to enact laws on power.
“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.
“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.
According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.
“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.
“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.
Business
Mercedes urges delay of EU tariffs on Chinese electric vehicles
The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.
“We need more free trade instead of new trade barriers.
“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.
“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.
At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.
Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.
The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.
But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.
The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.
Business
ACCI moves to promote business connections, balance work-life
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
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