Column

EFCC Should Be Thorough

Published

4 years ago

August 18, 2021

Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), said it would as from June 1, 2021 begin to look into the banking industry with regard to financial crimes. Chairman of the Commission, Mr. Abdulrasheed Bawa, said this is in a bid to ensure transparency in the banks and that bankers would be declaring their assets in obedience to extant laws.
He also said that the focus on bankers is aimed at achieving financial sanity and to track illicitly acquired funds.
The EFCC can do this but even recently, the agency under the leadership of Bawa, started a move to check some former public office holders reportedly involved in money laundering, till now no news.
One wonders if the EFCC will be able to carry out such role because it has investigated and interrogated many with alleged misappropriation of public funds without results. But if it can implement what they have to do, I think it will make a change because it is through the banks that illegitimate funds are got.
The truth is that every financial transaction involving several thousands, millions, billions and trillions are not carried as cash, but moved through the banks across the country.
When an individual goes to withdraw certain amounts of money, the banker should be able to scrutinise that customer using relevant regulatory identification cards and bearing in mind that such person cannot possess such money. Even in the case of a group account, they should be interviewed to find out the source of the money.
The bankers have a big role to play when it comes to huge sums which may be claimed by a suspected fraudster. The managers should be able to detect when a particular amount of money cannot belong to a person. These, I think are the kinds of cases that give them bad names.
The bankers may be innocent of allegations and may not be collaborating with fraudsters to engage in bank fraud.
I recall a situation where an individual was asked to present a regulatory identification card in a commercial bank before she could have access to money deposited in her account. The reason for this was to really ascertain from where, who and perhaps how the money was generated.
That can be done to other accounts that have larger funds deposited in them. They should be able to know their customers through proper bank documentations. They have regulations on how much an individual should withdraw at a go.
Issues of money laundering like looted funds, as we have heard and seen, are not done through cash handling but electronically. It is expected that they raise alarm when huge amounts are discovered.
Some persons have argued whether the declaration of assets by the bankers will help in reducing financial crimes. The EFCC. as an agency saddled with such responsibility, would have done their homework before coming up with such move.
There is nothing wrong with bankers declaring their assets, after all, every public servant, from time to time, is mandated to declare to the Code of Conduct Bureau (CCB), depending on where they work.
According to Bawa, “We are going to see a very new EFCC in terms of the way we investigate, the way we prosecute, the way generally we execute our mandate. We will do our best to ensure that this country is free of economic and financial crimes.
“We understood that the tail end of every financial crime is for the criminal to have access to the funds that he or she has illegitimately gotten and we are worried about the roles of financial institutions and we have discussed, God willing, we hope that all financial institutions particularly the bankers will declare their assets as provided for by the law in accordance with the bank employees declaration of asset act,” he expressed.
There have been allegations that financial institutions and bankers help or aid fraudsters in committing financial frauds. This move by the EFCC is a step in the right direction as it will prove whether it is true or not at the end of investigations into the bankers’ financial activities.
It may not be only bankers that are allegedly involved in financial crimes. There are others who involve in illicit movement of cash. They should not focus on the banks alone.
They should look at other loopholes that may not be available to the public, because smart people may device other means of escaping with heavy amounts of money.
In fact, anybody who decides to involve in any form of financial crime should be dealt with if found guilty of the crime.
It is a good policy but to what extent it is going to work is worrisome. So many persons in the society today have declared their assets before now but we still hear and read about their unwholesome financial activities.
Some persons are smart so the EFCC and the financial institutions should also be smart to checkmate those who are associated with larger sums of money.
The EFCC should try to rekindle the hope of Nigerians through this development. I urge the financial institutions, particularly the bankers, to be wary of the kind of customers they come in contact with. A banker should be able to identify a fraudster with the amount of money either to be deposited or withdrawn from an account, even if a joint account, to avoid running into financial crimes.
A banker may be lured into problem but being smart on his or her job can solve such problem. They should be able to raise alarm when there are suspected cases of financial crimes. For me, it doesn’t matter and it is not wrong for bankers to declare their assets if they don’t have any skeleton in their cupboards. It is better, so that they will be free of accusations from different quarters. There can be innocent persons in the bank.
I am not unaware that, before now, the EFCC had made several moves to track financial crime offenders but the outcome of the exercises is yet to be made public. The exercise should be fruitful.
I think with the youthfulness of the new EFCC boss and having risen through the ranks in the Commission, there is no doubt that Nigerians’ expectations will be met.

Column

Are the Bears Wrong About the Looming Glut in Oil?

Published

2 weeks 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

1 month 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

2 months 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