Opinion
During Future Energy Resources
Investing in Russia since the 1991 collapse of Communism has always attracted a different breed of financier, with the most basic requirement being a cast-iron stomach.
For those brave enough to plunge in however, the rewards can be enormous – to give but one example, Troika Dialog, the oldest and largest private investment bank in the Commonwealth of Independent States, in the early 1990s was producing eye-watering annual rates of return for its subscribers of over 200 per cent.
That said, for every Troika Dialog there have been a dozen other ventures that crashed and burned, leaving foreign investors scorched.
But for those with a gambling streak, a new intriguing proposal, if implemented, may produce handsome returns in a most unlikely field – solar power.
Surprisingly to most, Russia has a range of locations suitable for solar power, including large expanses of Siberia and the Russia Far East, as well as the Caucasus. In the last-named region, some local politicians are seeking to establish the North Caucasus in the forefront of solar equipment manufacturing.
During an 23 August meeting, representatives of Stavropol Kray and state officials from the five regions, comprising the North Caucasus Federal District (SKFO) pored over a proposal drawn up by the Republic of North Ossetia-Alania to establish a “high technology industrial complex for producing silicon for solar energy applications,” giving the Caucasus its very own “Silikon Valleysky.”
According to the proposed program, each of the five regions would have a part of the production.
Most intriguingly for prospective investors, the endeavour would be a state and private joint venture. According to Ingushetia Republic representative, Vakha Yevloyev, the state and private investors would each front 50 per cent of the development costs.
The project would not come cheap, with start-up costs estimated at $1billion.
Association of Solar Energy of Russia coordinator, Anton Usachev said, “Polycrystalline silicon production will be located in the Stavropol region, while monocrystalline silicon production will be set up in Kabardino-Balkaria. The final production of photovoltaic cells and solar modules will be located in Karachay-Cherkessia and Dagestan respectively.
The raw material and production base of the alternative energy market is very new to Russia and is being fostered by local companies such as Nitol Solar and Hevel Solar in Novocheboksarsk, along with the Renova Group and Rosnano. For the moment, the potential market is export-oriented.”
Usachev added that this year the world solar energy market is expected to grow by 30 per cent.
Yevloyev, a strong supporter of the proposal, commented that the one billion dollar project could break even in two to seven years, with the costs split between investors and the state.
Usachev estimated that the North Caucasus has an average of 300 sunny days a year and that the cost of solar energy could be two-thirds lower than traditional energy sources such diesel-generated power.
Plans call for coordinating the project with the staff of the Russian Federation Presidential Envoy to the SKFO Aleksandr Khloponin later this month, with an agreement between the republics tentatively scheduled to be signed next month during the 10th International Investment Forum in Sochi.
Of course, the project has political overtones, as much of the Caucasus has been wracked by militancy over the past two decades. Given that Sochi will host the 2014 Olympic and Paralympic Winter Games, Moscow is determined to show off the region in the best possible light, and progressive industries would do so.
At a March 2008 meeting with Russian Prime Minister Vladimir Putin and President Dmitry Medvedev, State Duma Chairman Boris Gryzlov stressed the importance of solar power for electricity generation and informed them of a patented Russian technology for solar power applications that could be marketed.
Gryzlov subsequently wrote, “Development of renewable energy will make it possible not only to address the problem of energy supply, reduce dependence on hydrocarbon raw materials and improve the ecological situation, but also make money from the production and export of high-tech products and engineering solutions.”
Given that the project is likely to receive the Kremlin’s blessing, it is about as fool proof an investment as one is likely to find in the post-Soviet space. You read it here first.
Dr Daly, a London-based expert, contributed this piece to OilPrice.com in Washington, DC, United States.
John Daly
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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