NEWS AGENCY OF NIGERIA

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Business , Oil & Gas

Experts list ways to boost Nigeria’s natural gas production

 

By Rukayat Moisemhe

Some experts have called for a well-articulated and sustainable programme to decentralise the power sector regulatory environment and incentivise investors to boost natural gas production in Nigeria.

They said this at the American Business Council (ABC) Economic Update with theme: “Energising Nigeria: Navigating Challenges, Harnessing Opportunities,” on Thursday in Lagos.

Prof. Barth Nnaji, the Chairman, Geometric Power Ltd., said for almost three decades, the world had been possessed with finding a solution to climate change, having identified fossil fuel as the main culprit to global warming.

Nnaji noted that Nigeria had set a target of 2030  to achieve complete flare-out in its oil industry with various aspirations to pursue renewable energy options.

Nnaji noted that, unfortunately, the non-availability of adequate gas for power and industrial processes would afflict all the initiatives, in spite of the country’s proven natural gas reserves of over 206 trillion cubic feet.

He said that while government must be commended for exploring overseas markets for Nigeria’s natural gas for its benefit, they should bear in mind that ‘charity begins from home.

“It is not just local power producers that are currently bleeding owing to insufficient gas.

“There is no sufficient liquified petroleum gas for our kitchens and people are now resorting to firewood and coal for cooking, thus worsening the environmental crisis,” he said.

Nnaji, also former Minister of Power, stressed the need for a total overhaul of the transmission arm of power generation, saying that the current national grid is grossly inadequate for 200 million.

“Nigeria needs over 100,000 MW to meet its energy needs and we currently have just 13,000MW of installed capacity from which we are only able to put less than 5,000 MW on the grid due to reasons primarily of gas and transmission constraints.

“The Nigerian government at every level should employ already tested approaches to collaborate with competent private sector operators to quickly progress power availability to the level that matches our country’s sustainable economic growth desire,” he said.
Mrs Margaret Olele, Chief Executive Officer, American Business Council, noted that the theme of the event was a critical conversation on how government and private sector can best move forward to energise the country.

Olele noted that in spite of the economic reforms by the current administration and the implementation of the Petroleum Industrial Act, Nigeria was still unable to meet Organisations of the Petroleum Exporting Countries (OPEC) production quota.

“Issues of theft, insecurity have impacted the country meeting its OPEC quota and it is important to address this because a major chunk of the country’s revenue is tied to the power, oil and gas sector.

“The gas we have is still underutilised and power generation issues is impacting manufacturers and everybody in general so we are here to unload and shift your mindsets from the status quo to innovation and progression amidst the challenges,” she said.

Mr Martins Arogie, Partner, Energy and Natural Resources Services, KPMG, said that Nigeria’s energy industry was considered one of the most inefficient in meeting the needs of its customers globally, in spite of the country’s enormous energy resources.

Arogie noted that underutilisation of these resources was rampant and exacerbated by a chronic imbalance in the electricity and petroleum products markets.

This situation, Arogie said, had threatened Nigeria’s energy security, harmed the economy, increased income inequality and energy poverty, weakened industrialisation processes, and the undermine efforts to achieve sustained economic growth.

“In a market where demand far outstrips the current supply, Nigeria’s energy sector presents attractive investment opportunities within its various subsectors including oil and gas, electricity and renewables.

“With an abundance of both renewable and non-renewable resources, Nigeria provides immense opportunities for sustainable solutions to address existing energy demand gap and contribute to government’s drive to improve the efficiency and contribution of the sector.

“Therefore, it has become imperative for all the stakeholders to collaborate to address the challenges hampering the development of energy sector and unlock the vast opportunities that it holds for the country, Africa and the world,” he said.

Mrs Eyono Fatayi-Williams, President, Women in Energy Network, noted that Nigeria, blessed with a lot of natural resources, has a 206 trillion feet of proven gas reserves, which means there’s so much that can be done to harness the country’s gas resources.

Fatayi-Williams noted that the country had a lot of room for growth, particularly as gas has been recognised globally as the transition fuel in energy transition.

“So, gas development is a good thing and gas development will help in closing the huge deficit we have seeing that what Nigeria produces and what it needs are at two different points apart.

“But I think our message is the government declared a decade of gas and we are still in that decade and that decade of gas is supposed to be the big ticket, and we look forward to that happening.

“I think the government can continue in that trajectory and we are bound to see positive changes and we look forward to when Nigeria can actually become a gas-powered economy in 2020,” she said.(NAN)(www.nannews.ng)

Edited by Chinyere Joel-Nwokeoma

Illustration for business relationship between Nigeria and the United States
Business

U.S. envoy advocates enabling environment, access to capital for young start-ups

By Rukayat Moisemhe

Michael Ervin, Senior Foreign Service Officer, United States Consulate, Lagos, says access to capital for young companies and an enabling environment for technology start-ups will enable new perspectives to Nigeria’s economic growth and development.

Ervin made the call at the American Business Council (ABC) Economic Update on Tuesday in Lagos with theme; “Navigating the Start-up Landscape in Nigeria amidst Economic Challenges”.

He described start-ups as the lifeblood of any thriving economy and pioneers that carve new paths into uncharted markets.

He added that these set of businesses were the engine of job creation and the launch pad for the next generation of groundbreaking technologies.

Ervin noted that while start-ups might be small at first, their growth potential was tremendous, particularly as they hired local talent, injecting a surge of energy and opportunity into the Nigerian communities.

“So, what more can we do? How do we continuously leverage this vital force for social well-being and economic development?

“We need an environment that fosters risk-taking. We need access to capital for these young companies. We need to celebrate not just the successes, but the journey itself, the audacious spirit that dares us to dream big,” he said.

Ervin stated that in view of the above, the U.S. mission and ABC in 2023, launched an associate membership category for U.S. incorporated startups, admitting them into a community of established global businesses where opportunities could be expanded.

He noted that in 2023, the technology sector contributed over 17 per cent to Nigeria’s Gross Domestic Product (GDP), almost doubling the revenues from oil and gas.

According to him, U.S. venture capital firms have invested heavily in African tech startups, with over 60 and 40 per cent of venture capital funding in Nigeria and Africa, respectively, coming from the United States.

This, he said, meant that technology was a driving force, a fundamental force of Nigeria’s prosperity.

He urged all start-ups registered in the United States to join the American Business Council and leverage the opportunities that exist therein.

Ervin affirmed that the United States had been committed to fostering collaboration with Nigeria across the sectors of agriculture, education, healthcare, power, technology, and other vital areas for development and economic growth.

“Up to 60 per cent of African start-ups are incorporated in the United States, and this figure jumps to 80 per cent when considering Nigeria alone.

“In 2022, African start-ups raised 4.6 billion dollars, translating to an average of over one million dollars every two hours.

“In spite of the global downturn in Venture Capital funding last year in 2023, the United States still accounted for about 40 per cent of the nearly three billion dolars raised by African star-tups last year.

“These numbers indicate that we have a strong interest in supporting the growth of not just the start-up ecosystem, but the digital economy of Nigeria, of Africa, and clearly Nigeria is a key market in that equation,” he said.

Mrs Magaret Olele, Chief Executive Officer, ABC, noted that they were various opportunities for economic growth through the start-up space.

She said the council was committed to recognising and identifying these start-ups, understanding their challenges, point them to opportunities and show them the agencies to go, to help them upscale.

“We are training them to build more employability with banks and other spaces, thereby closing the gap in terms of employment and having exportable talents.

“We are also committed to building parameters that would engender female inclusion in the start-up ecosystem to foster gender equality and equity in the technology space,” she said.

Mrs Folashade Ambrose Mebedem, Commissioner for Commerce, Cooperatives, Trade and Investment, Lagos State, noted that the state boasted of quite a number of unicorns that had been birthed in it.

The commissioner said the state continued to provide support to a number of start-ups, particularly given the current challenging economic situation.

According to her, the Governor of Lagos, Mr Babajide Sanwo-Olu, has disbursed about N500 million to start-ups and continues to engage with them to identify their areas of needs and investments.

“Under the THEMES Plus agenda, the Lagos State government is committed to driving economic prosperity and growth by strengthening the organised private sector, alongside women and youth owned businesses.

“We would continue to identify formidable partners to work with, to drive women inclusion and achieve great successes in the start-up space,” she said.

Mrs Omoboye Odu, Head, Global Corporate Division, Ecobank, said the Nigerian entrepreneurial spirit was undeniable as brilliant minds came together on a daily basis to form ideas that shape the future of the country.

Odu noted that the dynamic environment had the potential to be engines of the future which required more than just a brilliant idea.

“This is where institutions like Ecobank steps in, in recognising the transformative power of start-ups.

“Our renowned partnership offers loans, advisory services for business and job creation across the continent and we remain committed to providing crucial financial and advisory support,” she said.

Mrs Yemi Keri, Founder, Rising Tide Africa, an Angel Network with Investment Pieces, said the firm had invested $1.98 million in about 35 start-ups.

She, however, noted that Nigeria was still at the surface, in terms of technology, stating that there existed massive opportunities not just for traditional but for emerging technologies.

“In terms of the Start-up Act, the implementation is where we are at now and some of the policies in the Act have not really identified and looked at the gender lens in the way we expected it to.

“Government needs to improve on the ease of doing business, while we encourage more women to become angel investors and hand-hold many female start-ups founders and guide them in the ecosystem,” she said.

Mr Yakubu Musa, Acting National Coordinator, office for Nigerian Digital Innovation, National Information Technology Development Agency (NITDA), said over 12000 start-ups have registered under the National Start-up Act.

Musa added that there were also over 1,000 angel investors and the next phase under the Act was to create profiles, verify stakeholders and engage several state governments to domesticate the Act. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa