Connect with us

Oil & Energy

Surviving Economic Realities In 2020s

Published

on

Heraclitus of Ephesus, a Greek philosopher of the late 6th Century, in his famous apothegm said, “The only constant is Change”. Literally, whether change is desired or not is inconsequential as it occurs independently; devoid of assents or prior notice. And the earlier people prepared their mind for it, the better as it is inevitable. This is thus, a clarion demand for reprogramming the minds to adapt as it occurs. Not even resistance deters it except to be left behind; an unhealthy option.
Typically, the major and fastest agent of change is civilization which everyone profoundly cherishes. Nobody in their right senses will kick against civilization due to the comfort, speed and productivity it offers. However, the bad side of it is, the same pace it opens new opportunities to the sensitive minds, is also how it pushes out the indolent and conservative minds out of jobs and businesses.
For example, the evolution of modern computers; Central Processing Units (CPUs) and laptops sent conservative typists and typewriter-merchants that were insensitive to upgrade out of jobs and businesses. Similarly, online shopping has become the most utilised medium across the world thereby affecting daily sales of shop owners. Arguably, technological advancement is moving fast.
Presently, foodstuffs including fresh tomatoes, potatoes, vegetables and even native cooked foods are ordered online and delivered with ease in Nigeria. Likewise, the usual taxi business which required people to board on the road is being overtaken by connected system which can access, negotiate variety of taxis in the comfort of the living rooms.
Churches are not left out as people in the comfort of their homes now actively participate in church services same way as onsite worshippers. In banking industry, higher volume of transactions are currently done virtual which reduces human activities in the banking halls alongside overhead costs. Of course, by design, banks are profit-oriented and not charity organizations, hence, will always switch over to most cost-effective system.
Conversely, the labour market is adversely affected as technology drops human activities thereby increasing unemployment ratios. Even those already in employment are likely to face more retrenchments as their services can be rendered cheaper and more efficiently through technological revolution.
For emphasis, on September 3, 2019, an energy firm, Oando Plc, sacked about 100 workers. Similarly, on November 21, 2019, First Bank of Nigeria recorded a mass sack of staff numbering over 1000 across the federation. The record goes on. The umbrella body of the workers; National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) threatened fire and brimstone to reverse the action.
Though the solidarity was commendable, unfortunately, NUBIFIE forgot the employers’ obligation to discharge employees is to be laid off accordingly. The union overlooked to do a feasibility study vis-à-vis the management’s unflinching action, without any panic against possible collapse of the bank by the volume of the retrenchment. This is a critical oversight.
For instance, Automated Teller Machines (ATMs) can now withdraw and also collect deposits into customers account in few seconds. The implication is that scores of contract staff that mount the tellers may be drastically reduced to virtually zero. Believably, all banks are working in that directions which implies that more retrenchments are looming particularly in the banking sector in the new decade.
Realistically, NUBIFIE and other unions may not do much to counter the trend. This is because they cannot provide the funds to subsidize overhead costs; to secure their members’ jobs. Convincingly, the bank discovered an alternative mode to handle operations without such a crowd of employees. To call a spade, a spade, the sacks were no accidental discharge but necessitated by profit maximization which is its major goal.
Laudably, a leading financial institution, United Bank for Africa (UBA), recently recorded a massive recruitment drive of about 4000 new staff alongside promotion of 5000 existing staff members with inspiring increments. However, the truth must be told. Industrialized economy is rapidly succumbing to digitalized economy.
The top-secret is technological innovation that economically, efficiently handles human tasks. In other words, repositioning is crucial. A stitch in time they say, saves nine. Sensibly, those not considering modern economy are vulnerable to be victims of the contemporary economic dynamics. Another bitter truth is that government alone cannot provide the much needed jobs for the high number of unemployed population.
However, governments must obligatorily provide the enabling environments for businesses to thrive. Economy must be stimulated and made attractive for investors. And essentially, insecurity must be unrelentingly wrestled not merely by empowering security agents but creating jobs for unemployed populations alongside empowerment with skills acquisitions. Government must meet these critical demands.
Interestingly, the most striking feature of the new economic direction is that it can empower distressed persons from zero level to financial independence without capital unlike the phasing-out industrialized economy. Above all, it creates secure incomes alongside conventional vocations. Instructively, most of the capitalists in the developed economies do not survive by commonplace hustling but connected economy.
Thus, whilst it is ideal to have exciting new year resolutions, big dreams and accept nice predictions, efforts must be put in top gear to think outside the box. People should expediently, ardently consider realignment. By the rapidity of technological advancement in the world, it is obvious a lot of employments may be in danger.
The way out is to embrace the modern economy to run with the changes against the challenges. Connected economy, distinctively, thrives by merely building relationships and fostering connections, rather than assets (money) and stuffs as exists in industrialized economy. However, extreme caution is required as scammers have infiltrated digitalized economy knowing it is the new face of the world economy.
Umegboro is a public affairs analyst.

 

Carl Umegboro

Continue Reading

Oil & Energy

Global Coal Consumption Hits Record Even As Coal Power Declines

Published

on

Global coal consumption reached another record in 2025, seemingly contradicting years of discussion about phasing out the world’s most carbon-intensive fossil fuel.
But the headline number does not tell the whole story.
The latest Statistical Review of World Energy shows that global coal consumption rose to 166.0 exajoules last year. That represented an increase of 0.7% from 2024.
At the same time, global electricity generation from coal declined. Coal-fired power production fell 0.3% to 10,511 terawatt-hours.
Those two trends are not mutually exclusive. Coal is used not only to generate electricity, but also in steelmaking, cement production, and other industrial processes. The divergence also reflects a changing geographic picture in which coal is declining across much of the developed world while remaining deeply embedded in Asia’s industrial economy.
A Record With Important Qualifications
Coal consumption reached a record in absolute terms, but it did not keep pace with overall energy demand.
Total global energy supply increased from 592.2 exajoules in 2024 to 600.3 exajoules in 2025, an increase of about 1.4%. Coal grew more slowly, so its share of the global energy mix slipped from 27.9% to 27.7%. Thus, despite the global record in coal consumption, coal lost a small amount of market share.
This pattern appears frequently during energy transitions. A fuel can continue growing in absolute terms even as faster-growing alternatives reduce its share of the total. With global energy demand still rising, losing market share does not necessarily mean declining consumption.
Renewable energy provides a relevant comparison. Renewable energy supply increased by nearly 10% in 2025, far outpacing coal. But the world’s appetite for energy was large enough to accommodate growth in renewables and another record for coal at the same time.
Coal Is Increasingly an Asian Fuel
The most striking feature of the coal market is its geographic concentration.
Asia Pacific consumed 138.1 exajoules of coal in 2025, accounting for 83.2% of the global total. China alone consumed 92.2 exajoules, or 55.6% of all the coal used in the world.
India contributed another 23.1 exajoules, representing 13.9% of global consumption. Together, China and India accounted for almost 70% of the world’s coal use. Add Indonesia, and the three countries consumed nearly 73% of the total.
This is why broad statements about a global coal phaseout can be misleading. Coal may be steadily retreating in Europe and North America, but its future is increasingly being determined in Asia.
Non-OECD countries accounted for 85.2% of global coal consumption in 2025. Their coal use has grown at an average annual rate of 1.9% over the past decade. OECD consumption, by contrast, has declined at an annual rate of 4.8%.
Europe consumed just 4.4% of the world’s coal last year. The European Union’s share was only 2.8%, following another 3.2% decline in consumption.
The global total therefore combines two very different stories. One is a long-term retreat from coal across much of the developed world. The other is coal’s continued importance to the large and growing economies of Asia.
One surprise in the 2025 data is that coal-fired electricity generation declined even as total coal consumption increased.
China generated 5,756 terawatt-hours of electricity from coal, down 1.1% from 2024. India’s coal generation fell 3.0% to 1,464 terawatt-hours. Since those two countries produce nearly 69% of the world’s coal-fired electricity, relatively small percentage declines can have a large effect on the global total.
Coal generation across Asia Pacific declined 1.2%, while Europe posted another 3.4% decrease. The European Union’s coal generation fell 3.6% and accounted for only 2.6% of the global total.
The divergence between consumption and power generation indicates that coal demand outside the electric power sector helped support the record. Coal consumption statistics include industrial uses that are not captured by electricity-generation totals. Changes in plant efficiency, coal quality, inventories, and measurement can also prevent the two series from moving in perfect alignment.
Whatever the precise combination, the result is notable. The world consumed a record amount of coal while producing less electricity from it.
The United States broke sharply with the broader developed-world trend in 2025.
U.S. coal consumption rose 10.4% to 8.7 exajoules. Coal-fired electricity generation jumped 13.1% to 804 terawatt-hours, while domestic coal production increased 4.4%.
In absolute terms, the increase in U.S. coal consumption was larger than the net increase for the entire world. U.S. consumption rose by about 0.8 exajoules, while the global total increased by roughly 0.7 exajoules. Declines in several other countries offset part of the American increase.
Still, this should not be mistaken for a return to coal’s former dominance in the United States.
U.S. coal consumption remains about 62% below its 2005 peak. Coal-fired generation is approximately 63% below its 2007 high, and production is about 54% below its 1998 peak.
The 2025 increase was substantial, but it occurred within a long-term structural decline. The United States still accounted for just 5.3% of global coal consumption and 7.7% of global coal-fired generation.
Global coal production remained near record levels at 180.8 exajoules, but it was essentially flat in 2025.
China increased production by 1.7% and supplied 52.4% of the world total. Its coal consumption was nearly unchanged, but its imports fell 10.1%. The combination suggests that increased domestic production displaced a meaningful amount of imported coal.
That shift helped push global coal trade down 3.1% to 35.3 exajoules. Indonesia, the world’s largest exporter, saw exports fall 7.4%. U.S. exports declined 11.5%, while Colombian exports plunged 21.3%.
Thus, record global consumption did not translate into record international trade. Much of the world’s coal is produced and consumed within the same countries, especially China and India.
The 2025 data support neither the claim that coal is disappearing nor the claim that the energy transition has stopped.
Coal use reached a record, but its share of global energy declined. Coal-fired electricity generation fell, but industrial and other uses kept total consumption elevated. Coal rebounded sharply in the United States but remained far below its historical peak. Europe continued to move away from coal, while Asia accounted for more than four-fifths of global demand.
The coal market is no longer one unified global story. It is a widening divide between countries that are steadily reducing their dependence on coal and countries where it remains central to electricity, industry, and economic development.
That divide is likely to continue defining the coal market for many years.
By Robert Rapier
Continue Reading

Oil & Energy

FG To Stop Electricity Subsidy Payments From 2027

Published

on

The Federal Government has announced plans to end electricity subsidy payments from 2027 as part of efforts to tackle mounting liabilities in the power sector.
 Minister of Power, Joseph Tegbe, disclosed this at a media interactive session , in Abuja, at the weekend.
Tegbe said  the Federal Government would phase out subsidies beginning from 2027, assuring Nigerians  the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.
According to him, the proposed removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.
Tegbe explained that despite the planned subsidy withdrawal, there are no immediate plans to increase electricity tariffs, reassuring consumers that the government is not considering a tariff hike in the short term.
“The phase-out of electricity subsidies will begin from 2027. However, there are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers.
“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” the minister stated.
He pointed out that  implementation timeline and consumer protection measures would be unveiled as the reform process progresses, emphasizing that Nigeria’s electricity subsidy has remained a major fiscal burden.
Continue Reading

Oil & Energy

Firm unveils New Products For Oil Facilities 

Published

on

An oil servicing firm, Solewant Group, has unveiled protective coatings and paints to secure oil facilities.
The products, manufactured at its new plant, sited in Alode Eleme, Rivers State, comprise of paints and coating that aid durability of oil facilities.
The products included the Solguard Architectural Coatings range comprising emulsion, matt and silk paints; Solguard Industrial Protective Coatings, featuring red oxide metal primer and alkyd gloss enamel; Solguard Heavy-Duty Protective Systems, including zinc-rich epoxy primer, high-build epoxy coat and acrylic polyurethane; and the flagship Novaguard Premium Specialty Coatings, made up of 100 per cent solid epoxy, polyurethane and polyurea systems for heavy industrial applications.
Unveiling the paints, at the weekend, Minister of State for Petroleum Resources(Oil), Senator Heineken Lokpobiri, described the products as innovative and pledged  the federal government’s support  to indigenous companies.
Lokpobiri described Solewant’s products as milestone in Nigeria’s industrialisation drive and local content development.
“This is clear evidence of the growth, which shows that local service providers in Nigeria have developed over the past 15 years.
“I’m very happy today that I have the privilege to witness this plant that will not just service Nigeria, but will service the entire African continent”, the minister said.
Lokpobiri praised Solewant’s expansion into Namibia, saying it marked the beginning of broader opportunities for Nigerian companies across Africa’s energy sector.
“We are fully committed to supporting companies like Solewant Group. That is the only way we can grow this industry.
“The solution to Nigeria’s energy problem lies with Nigerians. Nobody will come from anywhere to solve our problems in Africa”, he said.
He noted that the company’s new manufacturing capability would help address one of Nigeria’s biggest oil production challenges by providing locally manufactured protective coating solutions for ageing pipelines.
“Our pipes are completely corroded, and we need solutions that Solewant is providing to address that problem. What you have done here is a Nigerian solution to the Nigerian problem”, he said.
Speaking at the occasion, Solewant Group Chief Executive Officer, Solomon Ewanehi, said the investment was driven by the vision of ending Nigeria’s dependence on imported industrial coatings while building globally competitive manufacturing capacity.
In his words, “today we are not just launching the Solewant Coating Manufacturing Plant. We are launching confidence; confidence that Nigeria has the competence, the capacity and the courage to manufacture not just what we consume but also what we can export to compete with international standards.”
Ewanehi explained that the company unveiled 11 enhanced coating products under the Solguard and Novaguard brands, developed and manufactured in Nigeria for the oil and gas, marine, infrastructure and industrial sectors.
“Sixteen years ago, we asked a simple question: Why should Nigeria, a leading oil and gas nation, continue to import the very coatings that protect our critical assets?
“Today, that vision has become steel, concrete, plant and people”, he stated.
According to him, the products were designed to deliver world-class corrosion protection for pipelines, offshore platforms, refineries, storage tanks, bridges, power plants and other critical infrastructure operating in harsh environments.
Also speaking,  Secretary to the Government of the Federation, Senator George Akume, described the project as “a powerful statement of confidence in Nigeria” and applauded Solewant for expanding local manufacturing despite ongoing economic reforms.
Represented by the his Special Adviser on Technical Matters, Prof Bolaji Babatunde, Akume said “your  decision to expand manufacturing capability, develop technology and create value within Nigeria is a commendable example of the kind of private sector leadership that the Federal Government seeks to encourage me”.
Rivers State Governor Siminalayi Fubara, represented by his Chief of Staff, Barr. Sunny Ewuhle, also commended the company for choosing Rivers State as its industrial base.
“We are calling on all local and foreign investors to emulate what Solewant Group has done in Rivers State,” he said, pledging the state’s support for manufacturing, local content development and industrial growth.
Namibia’s High Commissioner to Nigeria, H.E. Walde Natangwe Ndavishiya, described the investment as timely, saying Solewant was well positioned to support Namibia’s emerging oil and gas industry.
“I particularly commend Solewant Group for taking the bold step of establishing a branch office in Namibia. This demonstrates confidence in Namibia and its emerging opportunities,” he stated.
By: Kevin Nengia
Continue Reading

Trending