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PEF Bridges To Ensure Uniformity In Petroleum Prices

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The Executive Secretary of the Petroleum Equalisation Fund
(PEF), Mrs Adefunke Kasali in this interview gives an insight into the
operation of the PEF. Excerpts:

 

Question: Could you tell us in brief what your Fund does as
it relates to the deregulation of the downstream oil sector

Answer:The Petroleum Equalisation Management Fund was
established many years ago, in 1973 to be exact, and the mandate of the fund
and the board is basically to ensure that marketers who bridge petroleum
products from point of receipt to their retail outlet are reimbursed

for the transport element of that transport activity in
order to ensure that government policy of uniform prices are fulfilled, and the
board has been doing that since all these years.

Our three major schemes are the bridging, the inter-district
scheme and the equalisation scheme.

To give you an idea, what that means, bridging is the
transportation of products over a period in excess of 450 km. It involves going
from one depot which is the loading depot to the receiving depot, and it has to
be in excess of a 450 km

The inter-district is the same thing, from loading depot to
the receiving depot but this time around, it is less than 450km.The
equalisation scheme is when a marketer loads from the receiving depot to his
retail outlet.

For instance, if the marketer is located in Abuja
environment, the marketer will move from, let’s say, a loading facility in
Lagos, could be Ejigbo satellite depot, he will first of all move that product
to Suleja which is a receiving depot which is a PPMC depot and then, from
there, he will move his product to Abuja.

Question:You talked about uniformity in the pricing, against
the backdrop of the deregulation, though the government price is N97, you still
find people selling it as much as N150, is that uniformity in pricing still
viable?

Answer:I think it is important to go to the background of
our uniformity in prices. Our country is vast. The terrain is very different
from area to area. There are some that are very swampy; in the south-south, you
find creeks and petroleum products are best transported through pipelines.

We all know what happened to pipelines in the recent days’
vandalism, sabotage, breakdown, poor maintenance over the years, has caused the
integrity of some of those pipelines, in fact, majority of them have been
questionable.

When you then move petroleum products through them and you
know somebody is just waiting to hack them once they know that petroleum
products are moving, it creates all kinds of issues.

That’s why we see the concept of bridging, that is, moving
these products by trucks come up a lot in the last few years. PEF as an
organisation is the one that then takes care of that bridging activity without
which, movement of petroleum products and the receipt of the product around the
country will be very difficult.

That idea behind uniformity is that you shouldn’t be
disadvantaged based on where you live. If you live somewhere that is not easy
to get pipelines through the place, then you shouldn’t be penalised for living
in that area.

As to the issue of the pricing, we found out that in some
areas, that there are some unscrupulous marketers that probably take advantage
but it’s not everywhere they take advantage of the situation. It is usually
worse when there are things happening in the country when you see the hike in
prices at retail outlets.

But generally speaking, you find out that prices are around
about where government has put them. (N97).

Question: Some marketers have complained of delay or refusal
to pay them, what are you doing in this regard?

Answer:There are some marketers that we refuse to pay
because they have issues with us, either because we found out that they have
submitted questionable documentation with us to come and collect reimbursement
from us. In that case, if they have bad or questionable weigh-bill, there will
be necessary delays in processing some of these claims until we resolve all of
these claims.

There are times in the past when we have had delays in
payment and if you come to our office, and have a look at where we put all
these claim files. It is in stacks and stacks of files.

(Cuts In)

Question:Why should you allow stacks to mount, if they were
attended to on time?

Answer: We don’t allow them to mount, unfortunately, the
rate at which they bring them is just far outweighs the ability to properly
scrutinise those files and we have to ensure that we are not just paying
government money, without ensuring that those documents are valid.

We have to ensure their veracity, we have to ensure they
loaded the products, we have to ensure that they delivered the product and so
in the process of doing all these confirmation, with the staff we have, it is
very tedious.

The other thing is that, sometimes we just don’t get the
document that we need to do the confirmation. And so, we have a process now
whereby the loading facility and the receiving facility must both send us those
claims and we then match them. Otherwise, somebody might load and not deliver
them and come and make claims. We are a responsible organisation and we cannot
allow that to happen and so may cause delay in some cases.

Question: As a follow up, are there sanctions for
defaulters? How many have you been able to pay in the last two years?

Answer: The act establishing the fund has a penalty in
there, but it is very old. It is like N50,000 (Fifty Thousand Naira.) When the
act is revised by the PIB, that will change. That’s not very punitive, it just
puts it on us, and we have to do the proper work to make sure if the penalty is
not deterrent, then we sort them out and sift these things out (files).

On our marketers’ list, we have thousands of marketers, and
on the retail list, all independent marketers. We deal with major marketers, we
deal with DAPPMA marketers. And so we have very many marketers, and we process
well over 100,000 claims every year.

So if a marketer moves a product now and concluded the
transaction, he may wait to move 10 or 15 other transactions and put them in
altogether. So all those individual lifting, we have to find the receipt of
payments, the invoice and the delivery confirmation, the loading confirmation
for each and every one of them.

So in a file that contains 20 meter tickets representing 20
liftings, that work has to be done for each of those 20 loadings, but we have
now been able to design a soft ware that we are just now in the process of
verifying, and perfecting that will do that matching for us automatically.

But when we don’t get data from all the facilities involved,
then again we will just slow the process down.

Question: The software that you talked about, could it be
the planned electronic loading scheme project Aquila, how much has PEF been
able to save for Nigeria from the introduction of that project?

Answer: That project, the software I was just talking about,
is something we designed along the way, that’s not the Aquila. We have been
working on Aquila since December 2007. We have spent the last four years
perfecting it and doing all the other implementation on project Aquila.

Project Aquila will actually eliminate all the things that
we are talking about here. With project Aquila, the first thing is that there
must be a loading and receiving. One of the issues that we have had is that we
are never sure whether a product was loaded or received. In some cases we have
had situations where it was purportedly received but it was never loaded.
Aquila will ensure that there is a genuine transaction.

The other thing with Aquila is that the product is now very
smooth and efficient and then the payment is done under two weeks. So you don’t
have the delay because it is now all electronically done.

With Aquila we have moved to an end-to-end electronic
solution where it is loaded and dispatched by a mobile computer working with an
RFID device. So that at each of our depots, our depot representatives have this
device, this is the mobile computer; part of it and this is the RFIDD device,
which reads the information.

On every truck registered and tagged there is this RFIDD tag
that is affixed on that truck and all the information on that transaction is
actually stored on the device. The software is re-writable and so when the
transaction is ready; our depot representative reads all the information from
our server unto this device and dispatches the truck electronically.

Right now, the manual system we have to stamp and they
falsify our stamps. Now there is no stamping required, you just go in there
once it is dispatched, that information from this device once the truck has
been let go that information automatically goes into the server in our head
office and at the receiving depot where that truck is headed.

By the time the truck gets there in two or three days or
however long it takes that truck driver to get there, that information is
already sitting on the server and when the truck gets there the depot
representatives at our receiving depot basically goes to the truck and verifies
that information.

 

To be continued

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NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026

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The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled a $100 million Equity Investment Scheme among a raft of fresh initiatives to bolster indigenous capacity and participation in the oil and gas industry.
Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, disclosed this while delivering his keynote address at the opening of the 14th Practical Nigerian Content Forum, held in Yenagoa, Bayelsa State.
Ogbe said the $100 million Equity Investment Scheme would provide equity financing to high-growth indigenous energy service companies, while diversifying the income base of the Nigerian Content Development Fund (NCDF).
In furtherance of the scheme, a memorandum of understanding (MOU) was signed at the event between Engr. Ogbe and the Managing Director of the Bank of Industry, Dr. Olasupo Olusi toward the management of the scheme, which is a new product of the Nigerian Content Intervention Fund (NCI Fund).
The NCDMB Scribe also announced that 61 per cent Nigerian Content level has already been attained in the oil and gas sector by the third quarter of 2025 from projects being monitored by the Board.
Ogbe further expressed the board’s readiness to onboard a new set of Project 100 Companies after the successful implementation of approved interventions relating to the first set of Project 100 Companies, launched in 2019, for which an exit plan is slated for April 2026.
The ‘Project 100 Companies’, TheTide learnt, is an initiative of the Ministry of Petroleum Resources and the NCDMB under which 100 indigenous companies in the oil and gas industry were nurtured and empowered to higher levels of competitiveness through capacity building and access to market opportunities.
The NCDMB helmsman also said the Board has concluded plans to launch its NCDMB Technology Challenge in the first quarter of 2026 and to hold a Research and Development Fair in the second quarter of 2026.
In addition to its ongoing initiatives, the board further stated that a review of its seven current guidelines would be undertaken between the first and second quarter of 2026.
“The Board has completed the framework for issuance of NCDF Compliance Certificate, an instrument to confirm that a company in the oil and gas industry has complied with the one per cent remittance obligations.
“The Certificate will become effective on Ist January 2026 and would be required to obtain key permits and approvals from the Board”, Ogbe said.
In his address, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the theme of the PNC Forum, “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” captures Nigeria’s national priorities that guide interventions by the Board and his Ministry.
He insisted that investment remains the lifeblood of the energy sector, and that the Board and the Ministry were committed to providing stable policies, transparent processes, and market-driven incentives, to attract long-term capital,  assuring that the ministry would continue to strengthen local capacity across fabrication, engineering, technology services, manufacturing of components, and research and development.
On his part, the Minster of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted with satisfaction that a decade-long stagnation in the oil and gas industry was overcame with the enactment of the long-delayed Petroleum Industry Act (PIA), 2021, and Presidential Directives issued by the Administration of President Bola Ahmed Tinubu in March 2024.
He said Nigeria has regained investor-confidence as signalled by the recent surge in FIDs and the increase of oil rigs from 14 to over 60, with 40 currently in active service.
“Our investment climate now is globally competitive, our fiscal terms are globally competitive. Our policies must be seen to be consistent at all times. The Federal Government is prepared to support Nigerian Content and the oil and gas industry, but then, things have to be done responsibly., he said.
In a goodwill message, the Managing Director, BOI, Dr. Olasupo Olusi, said that the collaboration between the NCDMB and BOI marked a significant expansion of a longstanding relationship, while assuring that through the $100 million NCIF Equity Investment Fund, the Bank of Industry would deploy equity and quasi-equity capital to support high-potential Nigerian companies to complement traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation.
“With a single obligor limit of $5 million, the Fund is designed to catalyze multiple high-impact investments while maintaining strong governance and prudent risk management”, the BOI Managing Director said.
On her part, the Special Adviser to the President on Energy, Mrs. Olu A. Verheijen, commended the NCDMB for sustaining the PNC Forum, which she said, accelerates change, drives competitiveness, and pushes the industry toward global standards.
She urged stakeholders to remain intentional and not incidental about in-country value addition, as they chart the path toward building a resilient, competitive industrial base in Nigeria.
By;  Ariwera Ibibo-Howells, Yenagoa
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Power Supply Boost: FG Begins Payment Of N185bn Gas Debt

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In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the move, endorsed by the National Economic Council (NEC) headed by Vice President, Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.
In a statement issued by the his Spokesman, Louis Ibrahim, Ekpo described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,”
While noting that the intervention aligned with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030, Ekpo said clearing the arrears would deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

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The AI Revolution Reshaping the Global Mining Industry

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The global mining industry is undergoing a rapid digital transformation, driven by the dual pressures of the energy transition and increasingly complex extraction environments. A new market report projects the global Artificial Intelligence (AI) in mining market will nearly quadruple in value over the next seven years, reaching $9.93 billion by 2032.
This surge in adoption comes as miners face a “perfect storm” of challenges: declining ore grades, labor shortages, and an insatiable global appetite for the critical minerals required to power electric vehicles (EVs) and renewable energy grids.
According to data released this week, the market for AI in mining is valued at approximately $2.6 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.1 percent through 2032.
While the mining sector has historically been viewed as slow to modernize, the need for efficiency is forcing a change. The integration of autonomous haulage systems, predictive maintenance analytics, and “digital twins”—virtual replicas of physical mine sites—is shifting from pilot projects to standard operational necessity.
The “Operations & Process Optimization” segment is currently the dominant application, expected to account for more than 35 percent of the market in 2025. This technology allows companies to squeeze higher yields out of lower-quality rock, a capability that is becoming essential as easily accessible high-grade deposits are depleted worldwide.
The driving force behind this investment is the global scramble for critical minerals. The report highlights that the metal mining segment held the largest market share in 2024, directly correlated to the demand for lithium, copper, cobalt, and nickel—the backbone of the green energy economy.
“Metal mining operations involve highly complex processes—from ore body modeling and exploration to drilling, blasting, grinding, and material movement,” the report notes.
“AI supports these functions through predictive analytics… enabling cost reduction and higher yield recovery.”
For Western nations, this technological pivot also holds geopolitical weight. With China currently dominating the processing of rare earth elements, Western mining majors are under pressure to ramp up domestic production and efficiency to secure supply chains for battery manufacturing and clean energy infrastructure.
Beyond productivity, the industry is leveraging AI to address its most persistent operational risk: safety. The “Safety, Security & Environmental” segment is projected to record the highest growth rate during the forecast period.
Mining remains one of the world’s most hazardous heavy industries. Companies are increasingly deploying AI-powered video analytics and real-time worker tracking to prevent accidents involving heavy machinery and to monitor for gas leaks or ventilation failures in underground operations.
Furthermore, stricter Environmental, Social, and Governance (ESG) criteria from investors are pushing miners to adopt AI for environmental compliance. New tools allow operators to monitor tailings dams for stability, track emissions in real-time, and optimize water usage, ensuring that the intensifying race for minerals does not come at the cost of environmental stewardship.
Geographically, the Asia Pacific region commanded the largest share of the AI in mining market in 2024 and is expected to maintain the highest growth rate.
This dominance is underpinned by massive production volumes in China and Australia. Major industry players in the region, including BHP and Rio Tinto, have been early adopters of autonomous technologies. In Western Australia, for example, autonomous haulage trucks and drill rigs are already commonplace, moving millions of tons of iron ore with minimal human intervention.
China’s adoption is further accelerated by government support for “smart mining” initiatives aimed at modernizing its vast coal and mineral sectors to reduce fatalities and improve environmental performance.
As the world moves toward 2032, the “mine of the future” will likely bear little resemblance to the labor-intensive operations of the past. With generative AI now entering the sector to assist in complex mine planning and exploration, the industry is pivoting toward a model where data is as valuable as the ore itself. For energy markets, this efficiency is not just a bonus; it is a prerequisite for meeting the material demands of a decarbonized world.
By: Charles Kennedy
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