Business

FG To Maximise Local Content Opportunities In Midstream, Downstream Sectors

Published

3 years ago

May 27, 2022

The Federal Government has expressed firm determination to fully catalyse investments in the midstream and downstream sectors of the petroleum sector, with a view to creating employment for teeming youths and maximising local content opportunities.
The Minister of State for Petroleum Resources, Chief Timipre Sylva gave assurance when he declared open the Nigerian Content Midstream and Downstream Oil and Gas Summit organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.
He stated that the Nigerian oil and gas industry was currently in the phase of exploring the vast opportunities and potentials associated with the midstream and downstream sectors, and commended the NCDMB for intervening to foster dynamism in the sectors through the summit.
He acknowledged that the midstream and downstream sectors did not receive the deserved focus in the past but hinted that the situation was set to change because the recently enacted Petroleum Industry Act (PIA) contains fiscal incentives to attract investment in gas development, distribution, penetration, and utilisation and provides exceptional care for host communities.
He charged industry stakeholders to take determined steps to unlock natural gas and domestic production potentials and use the opportunities in the gas ecosystem to drag millions of Nigerians out of energy poverty.
In his welcome address, the Executive Secretary, NCDMB, Engr. SimbiKesiyeWabote affirmed that the board was keen to maximize Local Content opportunities in the midstream and downstream sectors because they offer the greatest number of employment opportunities as well as longevity of jobs in contrast to the upstream sector of the oil industry.
“This provides means to absorb outputs of our Human Capacity Development programs in the form of job opportunities,” he added.
He also stated that the entry barrier for businesses to partake in the midstream and downstream sectors of the industry is relatively lower compared to the upstream sector and there are vast business opportunities in the midstream to downstream sectors, ranging from processing, transportation, storage, and distribution that could be started on small scale and later scaled up to bigger enterprises thereby growing in-country capacities and capabilities.
According to Wabote, the profit margin is also attractive in the midstream and downstream, especially in the LPG distribution value chain and this serves as an incentive to attract a wider number of players.
He emphasized the need to maximise the potentials of the midstream and downstream sectors to ensure energy security and national pride, adding that the direct social impact of a productive and efficient midstream and downstream sector of the oil and gas industry also needs to be maximised.
The executive secretary further explained that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act established NCDMB as the regulator of Nigerian Content in the entire spectrum of the Nigerian oil and gas industry.
He added that the board’s regulatory role is not to stifle the industry but to provide enabling, and inclusive, business environment for businesses to thrive with the active participation of critical stakeholders.
Giving a rundown of the board’s achievements in the midstream and downstream sectors, he listed the partnership with Waltersmith, which resulted in the delivery of the 5,000barrels per day modular refinery in Imo State, the 2,500barrels per day Duport Modular Refinery located in Edo State, which is due for commissioning this year as well as the 2,000barrels per day Atlantic Refinery and the 12,000barrels/day Azikel Hydro-skimming Refinery both in BayelsaState, which are under construction.
Other achievements of the board include the partnership with the NNPC to construct a 50,000liters petroleum products terminal in Brass, the partnership with Bunorr Integrated Energy Ltd for the establishment of 48,000 liters/day Base Oil Production Facility in Port Harcourt, Rivers State, which is due for commissioning this year and the ongoing construction of the Eraskon Lube Oil factory in Gbarain, Bayelsa State
Dwelling on the LPG value chain, he stated that the board had gone into partnership with some investors to develop some projects.
Some of them included the partnership with NEDO Gas Processing Company in Kwale, Delta State for the establishment of 80MMscfd of Gas Processing Plant and a 300MMscfd Kwale Gas Gathering hub, partnership with Triansel Gas Limited in Koko, Delta State for the establishment of 5,000MT LPG Storage and Loading Terminal Facility and partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass.
Others are the partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 northern states and partnership with Southfield Petroleum for the establishment of 200 MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG, which is about 10percent of current LPG demand nationwide.
Other investments include the partnership with MOB Integrated Services for the construction of the 500MT Inland LPG terminal which is currently in operation at Dikko, Niger State as well as the partnership with Amal Technologies to set up a plant in Abuja to produce Smart Gas/Smoke Detector Alarm devices.

Business

MWUN Backs Nigeria’s Bid For IMO’s Category C Seat

Published

3 days ago

June 20, 2025

The Tide

The Maritime Workers Union of Nigeria (MWUN) has pledged its full support for Nigeria’s bid to return to Category C of the International Maritime Organisation (IMO) Council.

It also commended the Nigerian Maritime Administration and Safety Agency (NIMASA) for its transformative role in maritime security and governance.

Speaking in Lagos over the weekend, President-General of the Union, Comrade Francis Bunu, lauded NIMASA’s significant achievements, particularly in combating piracy in the Gulf of Guinea.

He noted that the Agency’s efforts have significantly improved safety and stability on Nigerian waters.

“We now have peace on our waters, and this achievement is commendable. It also enhances regional stability and boosts investor confidence,” Bunu stated, citing NIMASA’s commitment to maritime safety as a key driver of Nigeria’s growing prominence in global maritime affairs.

Comrade Bunu further pledged that MWUN would mobilise support through its international affiliates to advocate for Nigeria’s IMO Council bid, emphasising that the country has both the expertise and leadership to make meaningful contributions on the global maritime stage.

“Nigeria is long overdue for a return to the IMO Council. A vote for Nigeria is a vote for Africa”, he asserted.

He also commended President Bola Ahmed Tinubu for establishing the Marine and Blue Economy Ministry, describing it as a “bold and visionary step” that will unlock investment opportunities and create employment across the maritime sector.

“The creation of the Ministry is a strategic move that aligns with global trends. It opens new economic frontiers and supports our youth through job creation and skills development within the blue economy space”, Bunu stated.

Reaffirming the Union’s commitment to collaboration, the MWUN leader assured stakeholders of continued engagement aimed at fostering industrial harmony, particularly within the dock labour sub-sector.

“Under my leadership, MWUN will continue to work with all maritime stakeholders to ensure peace, progress, and sustained sectoral growth”, he pledged.

As the world looks ahead to the 2025 Day of the Seafarer, themed “Our Ocean, Our Obligation, Our Opportunity”, Bunu emphasised the importance of sustainable ocean governance and the critical role of seafarers in global trade.

“MWUN remains steadfast in its advocacy for seafarers’ rights, decent work conditions, and responsible stewardship of our ocean resources. Nigerian seafarers deserve our gratitude for their immense contributions to global commerce”, he said.

Nkpemenyie Mcdominic, Lagos

Business

Food Security: FG To Review Nigerian Agric laws

Published

3 days ago

June 20, 2025

The Tide

The Federal Government has taken steps to review Nigeria’s agricultural laws to promote the development and enhance food and nutrition security in the country.

The Minister of State for Agriculture and Food Security, Sen. Aliyu Abdullahi, stated this recently at the opening of the stakeholders’ workshop and input on the Nigeria Agricultural Laws Reform in Abuja.

Abdullahi said these laws, which are the subjects of review or amendment, have been enacted for a very long time to provide the legal frameworks for the promotion and development of the agricultural sector.

“The sector’s dynamism is evident in the shift from traditional farming practices to more modern techniques, diversification of crops and livestock, as well as adaptation to changing weather patterns.

“This is in addition to the challenges of insecurity, climate change and high input costs which continued to affect agricultural inputs.

“In view of the above, it is imperative to formulate legal frameworks to facilitate the key aspects of improvement in Nigerian agriculture aimed at addressing the problems affecting the sector”, he said.

Noting government policies and initiatives are aimed to boost agricultural production to meet the food needs of the growing population, Abdullahi said efforts were being made to support small holder farmers through access to finance, training and technology.

He also said there was growing awareness of the need to address gender inequality in agriculture and empowering women to participate in decision-making and access resources.

The Minister further said the review of the Nigerian Co-operative Societies Act was a priority, as it was intended to feature among the President’s legacy achievements under his Cooperative Revamp and Reform Initiative.

According to him, “Federal Government’s approach to agriculture is multifaceted, encompassing policy development, financial support and infrastructural development.

“The goal is to create a thriving and sustainable agricultural sector that can contribute to food security, economic growth and overall well-being of Nigerians”.

In his remarks, the Permanent Secretary of the ministry, Dr. Marcus Ogunbiyi, said a strong and robust legal framework was crucial for the agricultural sector.

Earlier, the Director, Legal Services in the ministry, Mr. Isimbabi Garba, underscored the urgent need to reform and reposition Nigeria’s legal framework to support a modern, vibrant, and resilient agricultural economy.

Garba said the event also represented a significant step towards strengthening the country’s agricultural sector and ensuring food security for the nation, adding, “Agricultural law reform is crucial to Nigeria’s economic growth, food security and sustainable development.

“The law plays a significant role in shaping the agricultural sector, and updating our laws will help us address emerging challenges and opportunities”.

Business

Okpebholo Charges Committee To End Herders, Farmers Clash In Edo … Inaugurates Boundary Committee

Published

3 days ago

June 20, 2025

The Tide

Edo State Governor, Monday Okpebholo, has charged the newly established Livestock Control Committee to bring to an end the pervasive clashes between herders and farmers.

He gave the charge while inaugurating the 27-member committee, headed by a retired army general, Cecil Esekhaigbe.

The Governor gave the committee a clear mandate, which include tackling the pressing issues of security and land disputes in the State.

“There is a task that we need to handle carefully while this assignment is being carried out. We have to carry it out with the fear of God so that we can have the best time and result. We can see what is happening today. Herders clash here and there.

“You have to confine them to a particular location. That is the essence of this committee. I have people with a wealth of experience on the committee. So, I believe that with God on our side, we are going to achieve our purpose”, he said.

In his remark, Chairman of the committee, General Esekhaigbe (rtd), outlined the committee’s specific terms of reference which include, “regulating the movement of livestock within the State; inspecting, certifying, and registering all ranches; and controlling the activities of cattle herdsmen within various communities.

“I know security is one of the pillars of your five-point agenda, and we all know that one of the causative factors of insecurity in Nigeria as a whole is farming.

“We will do our best to make sure that our assignment, which has been given to us, is carried out to the best of our abilities. And to ensure that these community clashes in farmers’ areas will not be mentioned in our dear state.”

In a related development, Governor Okpebholo also inaugurated a high-powered Boundary Committee, chaired by the State Deputy Governor, Dennis Idahosa.

The committee is tasked with the responsibility of addressing persistent boundary disputes affecting communities within the State and those bordering neighbouring States.

“I am happy to see this moment because communities, especially the ones that share boundaries with us, have issues that border on clear landmarks.

“We have Lagos, we have Ondo, we have Delta, we have Kogi State. So, we have boundary crises here and there. For this reason, I think the people before me today are the best to handle this task for the betterment of the Edo people,” Okpebholo stated.

Responding, the Boundary Committee Chairman, Dennis Idahosa, assured that the committee will “ensure accurate boundary demarcation, promote peaceful coexistence among communities, and foster development in the areas affected by conflicts while collaborating with all stakeholders and actively engaging with citizens in fulfilling our mandate.”