Column

Trust Deficit And Governance

Published

5 years ago

December 23, 2020

Trust deficit has come to be a common refrain in the polity used to explain lack of trust in government pronouncements and programmes. Its foundation is rooted in political party soap box promises and manifestoes that are never kept. Sir Walter Scott (1808) wrote “Oh, what a tangled web we leave, when first we practice to deceive”.
Reflecting on this truism, it is clear that those who prevaricate in their speech or actions cannot be trusted. Their social capital budget will be fraught with deficit.
They are persons or institutions whose words or actions are of double standards.
They who betray the common trust, thrust upon them by Nigerians are many and varied.
If trust in Nigeria were a national budget, it’s deficit profile would be more than 90 per cent.
We often hear social commentators in Nigeria say, “you can’t trust anybody in power”. This may be in the context of Frayed political relationships among and between those in power and the people they govern. It is about mutual distrust.
It is important to state that trust is a two way traffic; those who govern must be trusted and the governed must trust the system for it to work and generate positive impact.
Stephen Covey placed trust as an important ingredient in any relationship, be it political, social or economic, when he said “Trust is the glue of life. It’s the most essential ingredient in effective communication. It is the fundamental principle that holds all relationships.
Sadly, the political ecosystem in Nigeria has eroded these values. Can Nigerians as a people continue to dwell on the pessimism expressed by William Shakespear when he said “Don’t trust the person who has broken faith once”?
Will this perception not create a web of complex social relations and a complexity of failures and retrogression in the polity, if strictly adhered to? What can a people do without trust?
Frank Grane a social Psychologist gave an ambivalent view when he said “you may be deceived if you trust too much, but you will live in torment unless you trust enough”. Trust deficit simply refers to a degree of lack of trust.
The term deficit in this context implies that there is trust but not enough trust because of broken promises in the system. People now choose who and what to trust.
In political relations which talks about social contract, huge promises are made to the people. The people on their part often bask in the euphoria of expectations, which are broken. So they make choices or effect a change of leadership based on those expectations.
Lady Gaga on trust, said “Trust is a mirror, you can fix it, if its broken, but you can still see the crack in that …reflection”. This explicates the danger in trust deficit in a polity where a people are afraid to trust in their government and functionaries.When trust deficit becomes systemic, it becomes a dangerous phenomenon in governance.
How can a people trust the harvest unless they see it sown.
There is trust deficit in police relations with the people of Nigeria.
Bail is free means bail is not free. Police is your friend means police is your enemy. Election will be free and fair means it will be rigged.
Boko Haram has become inevitable and the military cannot contend with it. When the spokesman of the Federal Government of Nigeria says “I do not lie”, many evidence will point to the contrary; he lies most of the time. The promise of Federal Government to mend the East West road has beccome an unending wait and only when MEND strikes that a portion will be white washed with alsphat. The Military Prevarication on the Lekki Toll Gate debacle is a source of distrust. How can a civilized group claim that no one died in that protest?
Poor ethnic relations in Nigeria is another source of distrust. An Ijaw man does not believe that an Hausa Fulani man at the helm of affairs can protect his interest.
In a similar view an Igbo man can hardly accept that a Yoruba politician is out to protect his political interest.
Among the minorities the story is the same, mutual distrust prevails. Political distrust among the ethnic groups in Nigeria is rooted in the nature of the colonial administration where the country stood on a tripod of centrifugal polity.
There were three regions in Nigeria. The East was dominated by the Igbo, West Yoruba and North Hausa Fulani. Unfortunately every region/ethnic group was inclined to fight for their interest rather than national interest. The interest of the minorities are also not taken into consideration.
Bad governance and military coups have further created distrust in the system where the struggle to govern by different geographical regions took over the merits of democratic values.
Class distrust has heightened as a result of growing poverty in Nigeria.
This has even take a demographic dimension. The youths do not believe that the class of persons they refer to as ancestors because of their age can governor this country well any longer.
This mutual distrust can also be seen in the stereotyping of youths as a bunch of irresponsibles. The fallacies above are unfortunate, because age has nothing to do with leadership. This type of distrust is retrogressive.
The growing spate of infrastructural deficit is a function of distrust and a result of rivalry among groups and the political class. A leader emerges and concentrates in the development of his clime rather than spreading the joy. He does so with the conviction that if he does not do it the next leader will abandon his people.
When trust and sincerity of purpose exist, true spirit of governance will unfold to allow development take a foothold in Nigeria. Many believe that restructuring will mitigate mutual distrust in Nigeria.

By: Bon Woke

Column

Are the Bears Wrong About the Looming Glut in Oil?

Published

15 hours ago

September 8, 2025

The Tide

The oil market is oversupplied while demand growth is slowing down. This has become the dominant assumption among oil traders over the past two years, repeatedly reinforced by analyst outlets. Assumptions, however, are often wrong, especially when not based on physical data.

The International Energy Agency’s latest monthly report, for instance, said that the world is facing a record overhang of crude oil, set to unfold in the final quarter of this year and extend into the first months of 2026.

The expected glut was attributed to lower-than-expected oil consumption in several large developing world markets, combined with rising production in both OPEC+ and elsewhere, notably in the United States, Canada, Guyana, and Brazil.

The investment banks also see a glut, as they tend to do unless there is a war breaking out somewhere.

Goldman Sachs recently forecast Brent crude would drop below $55 per barrel next year, citing a supply overhang of 1.8 million barrels daily at the end of this year, very much in tune with the IEA.

Morgan Stanley is more guarded in its forecasts but still assumes abundant supply, as does ING in most of its regular commodity market notes. But there are some exceptions.

One of these has recently been Standard Chartered, which has bucked the trend of doomsaying among oil price forecasters, noting bullish factors that other forecasters either ignore or overlook.

The other is Oxford Energy, which this week released a report taking a close look at the physical oil market. Surprisingly, for many, the physical market does not show evidence of a glut forming anytime soon.

Crude oil inventories are always a good place to start, and that is exactly where Oxford Energy starts, noting that inventories in the OECD have only gained a rather modest 4 million barrels over the first six months of the year.

This modest increase means OECD oil stocks are still substantially below the five-year average, the research outlet noted, adding that the gap with that average was 122 million barrels.

The inventory situation is similar in the United States as well, even though the benchmarks slide every Wednesday when the U.S. Energy Information Administration reports a crude inventory draw.

Over a longer period, however, inventories have trended down, suggesting demand is pretty healthy and the threat of a massive glut may well be a bit exaggerated.

So, what about inventories outside of the OECD and outside of the United States? China, notably, has been building up its oil in storage, taking advantage of discounted sanctioned Russian crude.

Earlier this year, media reports said Chinese crude oil inventories had hit a three-year high, suggesting demand growth was lagging behind refinery processing rates.

There have also been repeated warnings about slowing oil demand in the world’s largest oil importer—even when imports increase and so do processing rates at Chinese refineries.

Oxford Energy notes, however, that since China does not report inventory information, it is difficult to get an accurate number on oil stocks and estimates produced by data trackers vary too widely to offer reliable information.

Another factor to take into account when studying oil price prospects is floating storage, according to the analysts. This boomed in 2020 when lockdowns decimated demand and supply turned excessive.

After the end of the pandemic, oil in floating storage declined before rising again amid Western sanctions on Russia. Still, Oxford Energy notes, the level of oil in floating storage remains below the levels reached in 2022.

Then there is the matter of oil products. If there is too much supply around, some of it would go into storage—including expensive floating storage—but the rest would be turned into fuels and other products.

Once again, all eyes are on China, where another surprise is waiting. Per Kpler data cited by Oxford Energy, oil product exports from China have not gone higher.

They have actually gone down by 10% and remain weak. One reason for this is, of course, government quota-setting. Another, however, may well be healthy demand for fuels at home.

As the oil market awaits OPEC’s next meeting to start exiting its positions in anticipation of that glut, it may be wise to keep the physical market in mind, along with the fact that the IEA has repeatedly had to revise its own forecasts as physical world data comes in and refutes them.

More interesting, however, is this quote from a recent note from ING analysts: “The scale of the surplus through next year means it’s unlikely the group [OPEC+] will bring additional supply onto the market.

“The bigger risk is OPEC+ deciding to reinstate supply cuts, given concerns about a surplus.”

If there is a massive surplus on the way, any new cuts from OPEC+ should have a limited effect on prices, just as they did over the past two years. But maybe that massive surplus is not so certain, after all.

Column

Renewable Energy Faces Looming Workforce Crisis

Published

3 weeks ago

August 18, 2025

The Tide

Despite a discouraging political climate and unprecedented uncertainty in the United States clean energy sector, low costs of wind and solar energy continue to drive growth of the domestic clean energy sector.

However, while market forces continue to support the expansion of renewable energy capacity, the sector faces critical challenges extending beyond the antagonism of the Trump administration.

The continued growth of solar and wind power risks being hampered by several mitigating factors, including (but not limited to) intensifying competition over increasingly scarce suitable land plots, stressed and volatile global supply chains, lengthy and unpredictable development processes, Complex and overlapping permitting processes, and a critical talent gap.

The renewable energy labor shortage has been years in the making, but is no less closer to resolution. The issue spans both white collar and blue collar positions, and threatens to kneecap progress in the booming sector.

Between the years of 2011 and 2030, it is expected that global levels of installed wind and solar capacity will quadruple. Analysis from McKinsey & Company concludes that “this huge surge in new wind and solar installations will be almost impossible to staff with qualified development and construction employees as well as operations and maintenance workers.

“It’s unclear where these employees will come from in the future,” the McKinsey report goes on to say.

He continued that “There are too few people with specialized and relevant expertise and experience, and too many of them are departing for other companies or other industries.”

The solar and wind industries are suffering from a lack of awareness of career paths and opportunities, despite their well-established presence in domestic markets.

Emergent clean energies face an even steeper uphill battle. Geothermal energy, for example, is poised for explosive growth as one of vanishingly few carbon-free energy solutions with broad bipartisan support, but faces a severe talent gap and punishingly low levels of awareness in potential talent pools.

But while the outlook is discouraging, industry insiders argue that it’s too soon to sound the alarms. In fact, a recent report from Utility Drive contends that “solutions to the energy talent gap are hiding in plain sight.”

The article breaks down those solutions into four concrete approaches: building partnerships with educators, formulating Registered Apprenticeship pathways, updating credential requirements to reflect real-world needs, and rethinking stale recruitment strategies.

Targeting strategic alliances with educational institutions is a crucial strategy for creating a skilled workforce, particularly in emerging sectors like geothermal energy.

Businesses can, for example, partner with and sponsor programs at community colleges, creating a pipeline for the next generation of skilled workers. Apprenticeships serve a similar purpose, encouraging hands-on learning outside of the classroom. Such apprenticeships can apply to white collar positions as well as blue collar roles.

“If we can figure out a way to educate the younger generation that you can actually have a career that you can be proud of and help solve a problem the world is facing, but also work in the extractive industry, I think that could go a long way,” said Jeanine Vany, executive vice president of corporate affairs for Canadian geothermal firm Eavor, speaking about the geothermal energy talent gap.

These approaches won’t solve the talent gap overnight – especially as political developments may discourage would-be jobseekers from placing their bets on a career in the renewables sector. But they will go a long way toward mitigating the issue.

“The clean energy transition depends on a workforce that can sustain it,” reports Utility Drive. “To meet the hiring challenges, employers will benefit from looking beyond the next position to fill and working toward a strategic, industry-wide vision for attracting talent.”

By: Haley Zaremba

Column

Is It End For Lithium’s Reign As Battery King?

Published

1 month ago

August 1, 2025

The Tide

Lithium-ion batteries power the world around us. Their prevalence in our daily life is growing steadily, to the extent that lithium-ion batteries now power a whopping 70 percent of all rechargeable devices.

From electric vehicles to smartphones to utility-scale energy storage, lithium-ion batteries are increasingly forming the building blocks of innumerable sectors.

But despite its dominance in battery technologies, there are some serious issues with lithium supply chains that make it a less-than-ideal model upon which to base our world.

Not only is extracting lithium often extremely environmentally damaging, it’s deeply intertwined with geopolitical pressure points. China controls a huge portion of global lithium supply chains, rendering markets highly vulnerable to shocks and the political will of Beijing.

China’s control is particularly strong in the case of electric vehicle batteries, thanks to a decade-long strategy to outcompete the globe.

“For over a decade, China has meticulously orchestrated a strategic ascent in the global electric vehicle (EV) batteries market, culminating in a dominance that now presents a formidable challenge to Western manufacturers,” reports EE Times.

The effect functions as “almost a moat” around Chinese battery production, buffering the sector against international competition.

The multiple downsides and risks associated with lithium and lithium-ion battery sourcing is pushing EV companies to research alternative battery models to power the electric cars of the future.

There are a litany of lithium alternatives in research and development phases, including – but not limited to – lead, nickel-cadmium, nickel-metal hydride, sodium nickel chloride, lithium metal polymer, sodium-ion, lithium-sulfur, and solid state batteries.

Solid state batteries seem to be the biggest industry darling. Solid-state batteries use a solid electrolyte as a barrier and conductor between the cathode and anode.

These batteries don’t necessarily do away with lithium, but they can eliminate the need for graphite – another critical mineral under heavy Chinese control. Plus, solid state batteries are purported to be safer, have higher energy density, and recharge faster than lithium-ion batteries.

While solid-state batteries are still in development, they’re already being tested in some applications by car companies. Mercedes and BMW claim that they are already road-testing vehicles powered by solid-state batteries, but it will likely be years before we see them in any commercial context.

Subaru is on the verge of testing solid-state batteries within its vehicles, but is already employing a smaller form of the technology to power robots within its facilities.

However, while solid-state batteries are being hailed as a sort of holy grail for battery tech, some think that the promise – and progress – of solid-state batteries is overblown.

“I think there’s a lot of noise in solid state around commercial readiness that’s maybe an exaggeration of reality”, Rivian CEO RJ Scaringe said during an interview on this week’s Plugged-In Podcast.

Sodium ion batteries are also a promising contender to overtake lithium-ion batteries in the EV sector. Sodium is 1,000 times more abundant than lithium.

“It’s widely available around the world, meaning it’s cheaper to source, and less water-intensive to extract”, stated James Quinn, the CEO of U.K.-based Faradion. “It takes 682 times more water to extract one tonne of lithium versus one tonne of sodium.That is a significant amount.”

Bloomberg projections indicate that sodium-ion could displace 272,000 tons of lithium demand as soon as 2035.

But even this does not signal the death of lithium. Lithium is simply too useful in battery-making. It’s energy-dense and performs well in cold weather, making it “indispensable for high-performance applications” according to EV World.

“The future isn’t lithium or sodium—it’s both, deployed strategically across sectors…the result is a diversified, resilient battery economy.”

By: Haley Zaremba