The Nigerian Senate has asked the Federal Government of Nigeria to urgently initiate and implement the First Option Policy on purchase of locally manufactured products for government procurement in all arms of government.

The upper chamber said that the policy should also be extended to every public funded organization.

The lawmakers expressed commitment to amend the Procurement Act to ensure that agencies of government and government funded institution adopted made-in-Nigeria goods First Option Policy.

This followed a motion by Senator Enyinnaya Abaribe (Abia South) entitled “Need for patronization of made in Nigeria good in Nigeria.”

First Option Policy on purchase of locally made goods would compel Ministries, Departments and Agencies of government to place priority on purchase of locally made products.

Senator Abaribe, in his lead debate, expressed concern that investment in real sector had given way to trading in foreign and imported goods resulting in negative balance of trade, close down of textile companies, wood processing factories among others.

The Abia State born lawmaker recalled that Nigeria’s economy was dependent on made in Nigeria exports, in the 60s and early 70s.

He noted that in the 60s and 70s, industries were located in the rural areas, while made-in- Nigeria products were popular in parts of the country and many other African countries.

He said, “I recall that as at 1990, Nigeria had over 170 developed textile industries employing between 2000 and 10,000 workers each.

“Today, only 12 are still functioning, the resultant loss of opportunities and employments is anyone’s guess.

“The current depletion in forex earnings and forex available is a symptomatic effect of an import dependent economy, which is riddled with unemployment, negative balance of trade and low capital formation.”

Abaribe noted that governments in other countries have developed and adopted varying measures of First Option Policy for their locally manufactured goods in their various countries.

He listed countries like the United States, Chinese, and India, as some of the countries that made it mandatory for government agencies to source for locally manufactured goods before patronising goods from other countries.

The lawmaker expressed optimism that if the present administration put measures in place to ensure obligatory official patronage of locally made products for all agencies of government, it would create jobs for the teeming population.

Most Senators who contributed supported the motion and insisted that urgent action should taken by all arms of government to encourage the growth of made in Nigeria goods.

Senator Dino Melaye in his contribution however personalised the issue. He said, “I want to celebrate the Made in Nigeria Senator for bringing this motion. In considering the made in Nigeria goods, we must look at enabling factors that will necessitate the made in Nigeria goods.

“It’s beyond having one made in Nigeria attire and you have over 70 Tom Ford and Loubitins in your wardrobe.

“We must reduce the allocation for made in Nigeria goods and services to the basics. What are those factors limiting the production of this goods. We must tackle them.

“We must also begin to look at our legislation; we will begin to talk about made in Nigeria goods.

“We will also move in order to encourage the made in Nigeria products in Nigeria, begin to talk about Made in Nigeria women.

“Apologies to my uncle, the governor of Edo State, we must as a people stop paying dowries in dollars and pounds.  It is time for my colleagues here to become born again.”

Senate President, Abubakar Bukola Saraki, commended Abaribe for his commitment for promotion of made-in-Nigeria products over the years.

He said, “I had the opportunity to attend this year’s Made-in Aba trade fair, which Abaribe has been promoting using his own intervention fund.

“It is commendable to see that for years he has used this money to support the trade fair. The major issue for us is the issue of job creation and we cannot do it without looking at ways to stimulate our own economy.

“We would be spending close to N5 trillion in the 2016 budget in this regard and if that alone is going towards the local industries it will make a great deal.

“We must see that we amend the law and oversight properly to see that we make a difference in this country.”

Saraki called relevant committees to expedite action on amendment of the Procurement Act before passage of the 2016 budget to give first option to two locally produced products.

South Africa’s Minister of Transport, Dipuo Peters, will launch the country’s first solar powered airport on February 26. The solar powered airport, located in George, is also the first on the continent.

A statement said the department would officially launch its Solar Power Plant at George Airport in the Western Cape, spearheaded by the Agency of the Department of Transport, Airports Company South Africa (ACSA)

“A 200 square-meter clean energy source has been designed to supply the airport with 750kw of its total electricity needs.”

The George Herald reported that the purpose of the solar development is to supply George Airport with its own electricity source for daily operation, and not to sell off surplus energy through Eskom.

“In making use of solar energy, the ACSA George Airport will not only operate on a clean and renewable energy source, but will also be self-reliant as far as energy provision is concerned, lessening the burden on the local energy grid,” the airport said.

The Bank of Industry, BoI, has provided rural dwellers in Kolwa, Kaltungo Local Government of Gombe State, Nigeria with the commissioning of 24KW micro-grid solar solution.

This is even as the governor of the state, Dr. Ibrahim Dankwambo, hinted that the state government had concluded plans with the development finance institution to replicate the project in other nine local government areas Prior to the installation of the solar power system, the over 250 households in the rustic and largely agrarian village, like other remote communities across the country, subsisted on self-power generation, largely seen as unhealthy.

The Kolwa Electrification Project is a 24KW capacity installation that covers a 6 kilometre distribution network, and is also capable providing commercial ventures with electricity.

While the BoI/UNDP solar power pilot project is to be installed in six rural communities in the six geo-political zones of the country, the Kolwa project makes it three, having previously been installed in Bisanti, in Katcha Local Government Area of Niger State, and in Onibambu, Ife-North LGA in Osun State.

The three others include Ogbekpen, Ikpoba in Okha LGA, Edo State, Onono, Anambra West LGA, in Anambra State and Carwa/Cakum, Markarfi LGA, in Kano State are awaiting commissioning.

Speaking during the commissioning of the project in Kolwa, BoI’s Acting Managing Director, Mr. Waheed Olagunju explained that the N44m rural electrification project which was financed by the bank, in conjunction with the United Nations Development Programme, would provide electricity for over 200 homes not connected to the national grid.

He said that the rural electrification project was conceived by the bank not only to improve living standards of the rural dwellers, but also to boost economic activities in such areas.

According to him, the installation of the 24KW solar power project in Kolwa would give electricity to the over 200 households in the area at the cheapest cost, adding that the bank gave concessionary loan to the project developer, GVE Nigeria Limited, to achieve the feat.

Olagunju urged other partnering state governments to emulate Gombe state’s gesture by replicating the solar system in other parts of the states.

In his remarks, Dankwanbo noted that the initiative would provide linkages for enterprise development in rural communities across the country. He explained that he had ordered top officials of the state to liaise with the bank officials for the purpose of perfecting strategies on how the project could be replicated in the other nine local governments of the state.

While congratulating the Kolwa community for being the pioneer beneficiaries of the pilot green energy solution programme in the state, Dankwambo urged them to guard the project jealously and ensure its sustainability

The Union of African Shippers Council (UASC) meeting in its 10th General Assembly has lauded the Nigerian Shippers Council (NSC) for its efforts at building capacity for judges through its annual maritime law seminars.

Speaking at the annual assembly meeting held at the International Conference Centre, Accra, Ghana, the chairman of the UASC, Dr Nortey Quarshie Omaboe, said that he had observed and keenly followed the Nigerian Shippers Council’s consultative fora and stakeholder engagement seeking to address bottlenecks in the international trading system.

“These are indeed laudable and commendable initiatives. As shippers’ organisations within the sub-region, it would be my expectations that you would utilise the common umbrella that the UASC offers to harmonise your approaches towards the resolution of the myriad of shippers’ problems and develop common templates for trade facilitation in the sub-region,” Omaboe noted.

The need for members to support young and weaker ones as well activate closer ties among African economies was the focus of deliberations of the 10th General Assembly of the UASC.

Omaboe, who called for closer ties amongst West African economies to improve its participation in global value chain, said that there was need for effective linkages in economic activities.

He said, “Indeed, a recent study has shown that for developing economies to effectively participate in the global value chain, there should be effective linkages in activities such as farming, extraction of natural resources, research and development, manufacturing, design, management, marketing, distribution and post-sales services across the entire sub-regions value chain.

“It will, therefore, be essential for shipper’s organisations to analyse the entire value chain of their respective economies, isolate the common challenges and proffer solutions towards a removal of the bottlenecks that hinder a proper alignment of this linkages.”

Omaboe said that over the last couple of years, he had observed at close quarters some of the efforts of the Ghana Shippers Authority towards a reduction in the cost of doing business at her ports through their publication in national dailies.

“I am of the firm belief and conviction that its impact would only be truly felt when a monitoring mechanism is put in place to ensure compliance,” he added.

Earlier, the executive secretary of the NSC, Hassan Bello, visited the Ghanaian chief justice, Justice Georgina Theodora Wood, where he observed that the admiralty law and the maritime industry remained very critical to the development of the national economy and advancement of international trade.

Bello said, “The importance of the admiralty law and maritime practice to the development of the national economy and advancement of international trade cannot be over-emphasised. In that regard, the role of the judiciary in the development of maritime law is an important contributor to the national economy of any nation.”

In its determination to enforce implementation of minimum standard of trucks operating at the ports, the Nigerian Ports Authority (NPA) has reached out to the Association of Nigerian Licensed Customs Agents (ANLCA) and the National Association of Government Approved Freight Forwarders (NAGAFF) to help sensitize its members and solicit their cooperation in achieving desired outcome.

General Manager, Western Ports of NPA, High Chief Michael Ajayi made the appeal when he visited the headquarters of both associations in Lagos. Ajayi also disclosed that NPA had so far registered and certified 1,500 trucks for operations at the ports in Lagos.

The truck certification exercise, which commenced on February 1, will end on February 29.

“This exercise will afford NPA the opportunity of data collation for traffic and infrastructure planning process and to prevent sharp practices like theft and to serve as security measure to prevent any threat to security in the ports in compliance with the International Ships & Ports Facility Security Code (ISPS Code).

“We are here to ask for your cooperation and to inform your members not to patronise any truck without NPA sticker as such truck has not passed through our road worthiness certification exercise.

“With effect from March 1st 2016, all trucks without NPA sticker will not be allowed into the port,” he said.

He also informed the agents that plans were ongoing to construct some parts of the road leading to the ports by Dangote Group with the support of NPA.

In his response, the National President of ANLCA, Prince Olayiwola Shittu lamented the proliferation of touts at the port saying that the negative image often associated with clearing agents was as a result of unwanted persons loitering around the port environment unchecked.

He blamed the situation on the Council for the Regulation of Freight Forwarders (CRFFN) whom he said deceived NPA to issue port pass to individuals registered by the council to have access to the port.

“Why NPA should be issuing us annual license which we pay for if at the end of the day you don’t recognise the people you have licensed. That is the reason why there are touts in the ports,” he said.

He charged NPA to take the bull by the horn and do the needful if it is indeed desirous of controlling crowd at the port by issuing new port passes to only corporate bodies.

Shittu also appealed to his guest to address the problem of extortion by NPA security officials at the port.

The National President of NAGAFF, Chief Eugene Nweke who received Ajayi and his team at the NAGAFF headquarters in Apapa, appealed to NPA to prevail on truck operators to adopt uniform charges in their operations.

While commending NPA for embarking on truck certification to ensure that only roadworthy trucks are allowed into the ports, he also called for action to curtail alleged extortion by security operatives.

He also requested that further palliative measures be put in place to fix other bad portions of the access roads.

Responding to some of the requests made, Ajayi said NPA would introduce a new biometric identity card to address the problem of different port passes control access into the ports.

He also assured that NPA would investigate cases of extortion by security agencies and bring to book any operative found culpable.

Africa Oil & Power conference press release distribution and Online Press Conference® will be managed and handled by APO for the June 2016 event in Cape Town

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The event has confirmed an impressive lineup of speakers, including energy ministers and international deal-makers. These include oil ministers from Chad, Equatorial Guinea, Gabon, Ghana along with Varsha Singh (PetroSA), Derek Campbell (TransGen Energy Inc.), Igor Hulak (A.T. Kearney Africa), Dolapi Ono (Ecobank, Head of Energy Research) from the private sector.

Guillaume Doane, CEO of the Africa Branding Corporation, the organizer of Africa Oil & Power says: “APO is the undisputed leader in media relations in Africa. Their participation with Africa Oil & Power as Official Newswire will guarantee this conference reaches a large and targeted audience. We are especially excited to work with APO on technological offerings like the online press conference that ensure our sponsors and partners will benefit from a wider reach.”

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…Seeks extension of Local Content to other sectors

The immediate past Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Amagbe Kentebe on Wednesday handed over the office to the Director of Planning, Research and Statistics, Mr. Patrick Daziba Obah who will function as the Acting Executive Secretary.

Kentebe who was removed from office by President Muhammed Buhari on Monday alongside other 25 chief executives of federal agencies and parastatals was appointed in May 2015 by former President Goodluck Jonathan. He succeeded the pioneer Executive Secretary, Dr. Ernest Nwapa who superintended over NCDMB from inception in April 2010 to May 2015.

Speaking at the event held at the Board’s headquarters in Yenagoa, Bayelsa State, Kentebe described his term as short, eventful and enlightening, noting that he has made new friends, siblings and even children. He thanked former President Jonathan for appointing him and commended President Buhari for retaining him in the position for a while.

He explained that he chose to continue with the personnel, policies and initiatives inherited from Dr. Nwapa’s era despite some pressure to change them, noting that the decision helped to address the apprehension of staff and skepticism of industry stakeholders and ensured that the implementation of the Nigerian Content Act continued unhindered.

The former Executive Secretary advised his successor to continue in the tradition of continuity, stressing that the oil and gas industry is the lifeline of the nation and the Board’s implementation strategies give the common man especially indigenes of the Niger Delta region hope of participating in the industry.

He expressed hope that Local Content policy would be extended to other sectors of the Nigerian economy so that the gains would be multifarious.

In his comments, the Acting Executive Secretary, Mr. Patrick Daziba Obah commended the outgoing Executive Secretary for his services to the Board, particularly for granting access to all staff and ensuring that they worked assiduously to achieve the Board’s objectives. He expressed hope that Kentebe’s credible performance on the job will create opportunities for him in future.

Also speaking, the Director, Finance and Personnel Management, Alhalji Mustapha Mamudu extolled Kentebe for ensuring that NCDMB continued to function optimally even after a new Federal administration assumed office and secondees from the Nigerian National Petroleum Corporation (NNPC) were recalled. He further assured him that the Board’s staff would keep up the good work they have been renowned for.

The Coordinator, Legal Services Directorate, Mrs. Rose Chukwuonye also applauded the outgoing Executive Secretary for always seeking the counsel of the Board’s legal team when making key decisions.

Public Affairs Division

Feb 19, 2016

Riaba Fertilizers Limited has awarded the EPC contract for a new petrochemicals complex to a Chinese consortium led by East China Engineering Science and Technology Co. Ltd (ECEC)

BEIJING, China, February 10, 2016

• Riaba Fertilizers Ltd. awards EPC contract for Riaba petrochemicals complex to Chinese consortium ECEC.
• Pre-FEED has been completed, ground-breaking ceremony expected by late March. Complex will comprise ammonia and urea plant.
• The Riaba petrochemicals complex will elevate Equatorial Guinea’s position as a premier regional petrochemicals producer.

The Ministry of Mines, Industry and Energy of Equatorial Guinea (http://MMIE.gob.gq) is pleased to announce that Riaba Fertilizers Limited has awarded the EPC contract for a new petrochemicals complex to a Chinese consortium led by East China Engineering Science and Technology Co. Ltd (ECEC).

Riaba Fertilizers Ltd. was incorporated to develop the petrochemicals complex at Riaba, on Bioko Island. The new facility will utilize offshore gas reserves located to the east of Bioko. A gas supply agreement is already in place with the Block O and I operator Noble Energy and partners Gunvor, Atlas Petroleum International and Glencore. The complex will comprise an ammonia and urea plant with production capacity of 1.5 MTPA. Facilities will include on and off-site infrastructure and utilities and a urea shipping jetty. This initiative is part of a government-led industrialization and energy diversification plan known as the Petrochemicals Revolution, or REPEGE.

The ECEC-led consortium was awarded the EPC contract at the holding company’s headquarters in Beijing, China. Pre-FEED has been completed by Worley Parsons. The project is planned to be completed in 32 months, with a groundbreaking ceremony expected to take place by late March.

The Minister of Mines, Industry and Energy and Riaba Fertilizers Ltd. stated during the signing ceremony: “Equatorial Guinea is a small country with big ambitions, and we have developed a reputation in our region for delivering on promises. The Riaba petrochemicals complex demonstrates, once again, our commitment to building advanced and globally competitive industrial facilities. We would like to acknowledge the vital role of the Block O and I gas producers in making this project a reality.” The Chairman of ECEC stated: “We are a Chinese EPC contractor with great experience with fertilizer plants. This makes us the best possible partner for Equatorial Guinea and the ideal contractor to deliver this project to world-class standards.”

• Ministry of Mines, Industry and Energy and SONAGAS officially inaugurate compressed natural gas infrastructure.
• CNG bus terminal and cooking gas bottling plant situated at Punta Europa gas processing center.
• Equatorial Guinea is the first country in the region to introduce CNG and gas-powered public transport.

  Equatorial Guinea has unveiled the latest in a series of pioneering infrastructure projects: a compressed natural gas plant powering a fleet of public buses.

  The facility was officially opened by H.E. President Teodoro Obiang Nguema Mbasogo, H.E. Minister of Mines, Industry and Energy Gabriel Mbaga Obiang Lima, and executives of national gas company SONAGAS on January 26, 2016. In attendance were numerous government officials and state company representatives.

  The CNG plant is located next to the Punta Europa gas complex to the west of Malabo. It includes a bus terminal and a gas-powered bus fleet, cooking gas bottling facility, and upgraded road infrastructure. The introduction of CNG buses will reduce emissions and improve public transport availability in Malabo and other cities.

  H.E. the Minister stated: “Equatorial Guinea has plentiful natural gas reserves, and it is our goal to provide access to this domestic resource to our citizens. With the introduction of pioneering compressed natural gas infrastructure, we can now offer clean, cost effective gas-powered public transport to the residents of Malabo and Bata.” The CNG facility is considered an important component in the government’s Horizon 2020 economic development plan. It also allows Equatorial Guinea to develop and export technological expertise in this new industry, as well as provide CNG gas to neighboring countries.

  Use of CNG in much of Africa remains at a low level, despite uptake in South Africa, Egypt and Nigeria. With the inauguration of its new facility, Equatorial Guinea is creating new demand for its domestic gas resource and distinguishes itself as an early adopter of the technology in sub-Saharan Africa.

…Total ll’ not sack staff

Nigerian Content scopes for new and ongoing oil and gas projects will not be reduced because of the substantial drop in crude oil prices, the Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe has confirmed.

The Nigerian Oil and Gas Industry Content Development (NOGICD) Act spelt out percentages that must be achieved for every activity connected with operations in the upstream sector of the Nigerian oil and gas industry and these benchmarks are enforced by the Board on projects through various mechanisms.

Speaking when he met with the Managing Director of Total Exploration and Production Nigeria Limited, Mr. Nicolas Terraz in Abuja on Thursday, the Executive Secretary regretted the negative effect the fallen oil prices has had on the Nigerian oil and gas industry, which included contracts being reviewed downwards, delays in approving new contracts, drop in drilling campaigns and even attempts to negotiate away Local Content in projects.

He however, affirmed that the Board was convinced that there was no need to cut back on Local Content requirements for projects.

Rejecting the perception that Local Content increases cost of projects, Kentebe called for “a holistic review of every contract scope and realistic and honest efforts to adjust costs across the board.” He stressed that industry stakeholders “have to look at the long term and realize that a strong and viable local supply chain ultimately helps in reducing cost of projects while creating a local conducive atmosphere for business to thrive.”

Speaking further, the Executive Secretary underlined the close collaboration the Board had enjoyed with international operating companies and other key stakeholders, noting that it helped to institutionalize Local Content practice in the oil and gas industry.

He stated that Total E&P’s Egina project was the first deep water project to take off under the Nigerian Content Act, adding that major breakthroughs were being recorded on the project in terms of scope of work given to Nigerian companies in engineering, fabrication, training, procurement of manufactured goods and other areas.

According to Kentebe, “a legacy project (Floating Production Storage and Offloading Topside Integration Yard) is under construction. This facility will create thousands of job opportunities, domicile major engineering, procurement and construction (EPC) activities in-country and keep future FPSO integration scopes in Nigeria.”

He confirmed the Board’s commitment to ensure that all agreed Nigerian Content scopes on the Egina project are fulfilled, charging Total E&P to work closely with the Board and the EPC contractors in addressing all issues that may impact schedule, quality or pricing on the project.

In his remarks, the Managing Director of Total E&P stated that the company had taken steps to cut costs in view of the fallen oil prices. Some of these strategies according to Terraz include improving efficiency, eliminating waste, reducing expatriate workforce and accelerating succession plans for Nigerian understudies.

While assuring that the company had no intention to downsize its workforce in Nigeria and other locations, the Managing Director called for an industry effort to reduce the long contracting cycle, which he believes contribute to the escalation of project costs.

Public Affairs Division

February 5, 2016