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Encouraging Local Participation In Oil And Gas Industry

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Being an address presented by the Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa at an enlightenment Forum on September 29, 2011 in Port Harcourt.

It gives me great pleasure to be here today at this event, one of the series of enlightenment progammes of the Nigerian Content Development and Monitoring Board (NCDMB) to keep oil producing states and communities abreast of opportunities in the oil and gas sector. The enlightenment events are aimed at constructively engaging the oil-bearing states and communities on the fundamentals of the Nigerian Oil and Gas Industry Content (NOGIC) 2010 Act, signed into law on April 22, 2010 by President Goodluck Jonathan.

The antecedents of the NOGIC 2010 Act are still vivid, especially to indigenous oil and gas operators and the oil-bearing communities. The story of the industry hitherto can be surmised as almost foreign, dominated with very little space available to qualified indigenous professionals and businesses. There was certainly less space for the participation of oil-bearing communities.

The former environment was characterized by:

(i)         Excessive importation of goods and services at the expense of local participation resulting in otherwise avoidable impoverishment and alienation of the people. A major contributor to the Niger Delta situation;

(ii)        Performance of the mega-projects of the industry abroad thereby eliminating opportunities to develop human and infrastructural capacity in Nigeria. – Capacity constraints in turn, limit the industry’s ability to perform sufficient work scope in Nigeria when designing, procuring and fabricating facilities, plants and assets or for after-sales support in the operations and maintenance phase;

(iii)       Our estimates that over 150 times more jobs are created in other countries than in Nigeria on the back of Nigerian projects at the expense of national development. Apart from the obvious negative impact of unemployment on the economy, the nation is denied opportunities for industrialisation and technology transfer;

(iv)       In absolute terms, less than 20% of $18bn average annual industry spent was retained in Nigeria.- such prolonged capital flight is a major factor for low economic performance, insignificant impact of the sector on national GDP and poor levels in local infrastructure investment despite heavy government expenditure in the sector.

Although some discretionary allocation of oil blocks were made by the military government to indigenous operators to promote the presence of Nigerian companies in the upstream in 1993, government also took the bold move to break the detrimental mould of low Nigerian upstream participation in 2004 by evoking the latent policy on Marginal Fields to admit Nigerian entrepreneurs. By that action, some 24 discoveries classified as Marginal Fields which had been left unattended for upward of 10 years and above were allocated to 31 indigenous companies under a strict technical and commercial evaluations.

Though the exercise is now often classified as a success, it was obvious that the composite in-country value addition to the oil and gas operations in Nigeria needed to be taken beyond the Marginal Fields to encompass the entire Exploration and Production value chain to meet expectations for significant growth. The establishment of Nigerian Content Division (NCD) by the Nigerian National Petroleum Corporation (NNPC) in 2005 for the first time gave a formal structure to Nigerian Content issues and significantly positioned the policy for more holistic application in the industry. NCD also came up with focused directives and formally established Nigerian content base for every contract in the entire value chain of oil and gas operations. It further became the bridge to link the major operators with indigenous service companies on Nigerian Content issues.

The benefits of the NCD directives on the industry were clearly evident, especially in areas of domiciliation of Front End engineering design (FEED) fabrication and capacity building, especially in the engineering sector. The prescriptions on domiciliation of fabrication works significantly increased project work scope thereby boosting activities in hitherto dormant fabrication yards. Structured certification and training of welders and pupilage through work attachment were part of the significant achievements of the NCD initiatives.

Distinguished ladies and gentlemen, notwithstanding the NCD strides, it also became obvious that the challenges of developing and nurturing Nigerian Content beyond fringe participation required a focused statute. That necessitated the promulgation of the NOGIC Act, 2010 and the prompt assent of the President, Dr. Goodluck Ebele Jonathan to the Act on April 22, 2010.

Specifically, the NOGIC Act gave teeth to the fundamental aspirations of government for strong Nigerian E and P Sector and a virile indigenous service sector. The statute further established the process for Nigerian Content in all segments of the oil and gas value chain by prescribing minimum Nigerian Content benchmarks for the listed activities in contracting process. The Act also established the Nigerian Content Development and Monitoring Board (NCDMD) as the regulating body of Nigerian Content in the oil and gas industry. NCDMB headquarters is located in Yenagoa, Bayelsa State, in line with prescriptions of the law that mandates siting the body within the Niger Delta.

Whereas the headquarters’ office covers operation activities in Rivers and Bayelsa States, NCDMB has also established offices in Owerri to cover Imo and Abia States and in Warri to cover Delta and Edo States. Plans are at advanced stages to also establish offices in Akwa Ibom State, Cross River and Ondo States for complete coverage of all the oil and gas producing states.

Distinguished ladies and gentlemen, without pre-empting other speakers, please allow me to dwell briefly on the operational strategies and some programmes in place by the Board for implementation of the NOGIC Act.

First, we fully understand that successful Nigerian Content policy should be run on the back of projects. We are also aware that ample opportunities had been lost by Nigeria in the past by not leveraging on the multi-billion dollar upstream projects to develop capacity and grow indigenous participation. In line with the stipulations of the Act, therefore, the Board always ensures that no Invitation to Tender (ITT) goes out in the industry without explicit minimum Nigeria Content stipulation and that no tender gets pre-qualified without approved Nigerian Content plan.

Secondly, we understand the roles of competent skills in meaningful local participation, especially given the complex operational environment in the oil and gas industry. Training and curriculum development are required to grow in tandem with the industry needs to keep abreast of opportunities.

The Board has, therefore, set up elaborate programmes to ensure that annual training budgets in the industry are effectively utilized in ways that would add real values to the skills of our teeming youths, especially from the oil and gas communities. The Board has also met with the Oil and Gas Trainers’ Association of Nigeria (OGTAN) to deliberate on how to further enhance the industry training process to move beyond spending to adding the required values, in real terms, to our teeming youths and practitioners in the industry. Oil and gas companies had been put on notice that manpower training would henceforth be a vital index of the Nigerian Content performance.

Thirdly and corollary to the foregoing, the Board is decisively committed to structured attachment policy in the industry, especially for sub-surfacing and engineering graduates to enable young Nigerians gain relevant experience to qualify them for positions in the industry. I was particularly pleased to show case, at the anniversary of the NOGIC 2010 Act held recently in Abuja, some of the university graduates that have successfully passed through the NCDMB attachment training schemes and are gainfully employed in the industry. The future of Nigerian participation in the industry lies in its teeming youths. The Board is committed to ensuring the realisation of Nigeria’s potentials, especially in the oil bearing communities.

Distinguished ladies and gentlemen, past experiences have shown that the best way forward to realising the full potentials of Nigerian oil and gas resources is through peace and sustainable development of the communities. Establishment of the Board is a strong indication by government that it is indeed serious about growing indigenous capacity and improving local participation in the oil and gas industry. By providing that, the Board headquarters should be located in the Niger Delta as the law intends the oil-bearing communities to be the main focus of its activities.

We are here today to tell you about the activities of the Board since inception and also listen to your suggestions, especially on how the state and the oil-bearing communities can be better served. I am sure, we shall leave here mutually fulfilled that we have achieved our objectives.

I thank you for listening.

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Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

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Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
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MAN, Ministry Tackle High Electricity Costs, Erratic Supply

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The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
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Reps Panel Dismisses Petition Against NIPCO gas Licence

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The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

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