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What Will it Take for 2020 to Truly be Year of Gas in Nigeria?

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By NJ Ayuk

“The Minister of State for Petroleum Resources, Timipre Sylva, has declared 2020 as the year of gas for the nation”, the news piece started. What amazing news! And certainly, long overdue. As it seems, Nigerian officials have finally taken the cue. As I have said ever so often, more than an oil nation, Nigeria is a gas nation. It just doesn’t act like it.

Undoubtedly, natural gas has the enormous potential to diversify and grow the Nigerian economy, power its industries and homes, produce ever-so-lacking wealth, create jobs, develop associated industries in the petrochemical sector, raise people out of poverty, the list goes on.

Mr Sylva’s demonstrated intent could perhaps become the most relevant political action anyone has taken in Nigeria in years and could change the country forever; and yet, the work ahead is so vast, we can only hope he has the strength to pull it off.

To be sure, naming 2020 the year of gas for Nigeria has a really nice ring to it, but marketing alone will not cut it. Concerted governmental action is essential if we are to see true growth in the liquefied petroleum gas (LPG) sector, and first of all, we need to see a conclusion to the long-delayed Nigerian Gas Flare Commercialisation Programme. Sylva stated that this was his main priority, so let’s hope it happens soon.

Once the programme is cleared, oil producers will have a more conclusive alternative to flaring. They will be able to monetize a resource that has so far been wasted, but still that will not suffice.

The flaring issue in Nigeria is tremendous. Every year, 2 million tonnes of LPG are flared, instead of being used as a source of power or feedstock. That means millions of dollars literally going up in smoke. Nigeria’s zero-flaring programme has been on-going for years, and yet, the Nigerian National Petroleum Corporation (NNPC) has just released results that indicate that gas flaring has been consistently increasing over time. More specifically, “a total of 276.04 billion cubic feet (bcf) of natural gas was flared from Nigeria’s oil fields between September 2018 and September 2019”. Further, NNPC stated that “the volume of gas flared within this period was more than what was supplied to power generation companies for electricity production which was 275.31bcf”. This is taking place in a country where 45% of the population does not have access to electricity, besides the extremely detrimental effect that has on businesses ability to compete and the extraordinary environmental damage that represents.

Already, the federal government announced in August that it would not be able to fulfil its Zero Routine Flaring target by 2020 and is yet to provide a new deadline for this goal to be achieved.

The problem remains the same as ever. It is much, much cheaper for producers to flare up and pay the fines than do anything about it. This cannot continue to be. Stronger action is needed and it falls on Mr. Sylva’s leadership to see it done.

I don’t mean by this to point the finger at oil producers. Most would probably want to monetize that resource, and would if they could. But we lack legislation, infrastructure, pricing regulations, and actors ready to receive the feedstock.

They can’t just pipe the gas somewhere and hope for the best. We need to focus on deepening domestic gas penetration and promote adoption amongst the population, foster the development of gas associated industries like ammonia and urea plants, use this resource for power generation, etc. Demand doesn’t grow out of nowhere.

For this to workout, everybody needs to work together. That means the ministry and the NNPC need to partner with the international oil companies, the indigenous oil companies as well as with the country’s financial institutions to create the solutions that can make this industry flourish. That is a tall job, but an essential one.

Of course, the news that the output of liquefied natural gas (LNG) coming from the Bonny LNG-plant is going to expand by 35 percent once the 7th LNG train is operational is fantastic. Nigeria will strengthen its position as one of the world’s biggest LNG exporters and that will bring considerable wealth for the country, but its people continue to be in the dark.

And LNG expansion projects are something IOCs are well prepared to do, but there are other important roles in boosting the gas industry that have to be taken by others.

I speak of course of marginal field development, a topic that is of fundamental importance to me and that I have extensively covered in my most recent book Billions at Play: The Future of African Oil and Doing Deals. Both for oil and gas, Nigeria’s marginal field development programme showed incredible promise when it was first launched in 2013.

It gave opportunities to local companies to explore smaller discoveries that were uninteresting for the majors, which in turn allowed them to gain experience in leading exploration and production projects on their own. Further, it opened opportunities for domestic use of natural gas for power generation. That programme is now being copied by Angola, and yet, it has stalled in Nigeria.

Further, as I have extensively debated over the years, and most extensively in Billions at Play, we need to dramatically invest in Nigeria’s ability to negotiate and manage contracts. This applies both to the need to respect the sanctity of contracts, a fundamental part of giving international investors the confidence to trust that what they sign for will be respected, but also learning to choose who to sign contracts with.

The current debacle with P&ID, an unknown little company that has managed to sue the Nigerian government for breach of contract in the English courts and is seeking $9.6 billion in compensation, is an incomprehensible situation that should never have taken place. We need to know who our partners are and who we should be signing contracts with, and then stick by them.

Only by combining the role of the majors, the indigenous companies, the necessary infrastructure development for gas transportation, bridging with the nation’s banks to help finance projects and by giving a clear legal framework to the sector, can we hope to succeed. I do not doubt that this is possible to accomplish in 2020 and the years to come, but coming from the experience of recent years, it does not seem probable, and no one pays the price for that more than everyday Nigerians, that continue to fail to benefit from its country’s resources.

Action is necessary as a matter of urgency.

This week, it was disclosed that international oil and gas companies were holding back an estimated $58.4 billion in investments in oil and gas projects in Nigeria because of regulatory uncertainty. Foreign Direct Investment in Nigeria was $1.9 billion in 2018. It’s not like we don’t need the money.

But how can we expect international oil companies to feel comfortable signing off on billions in investment if after 20-plus years of negotiations we still haven’t managed to settle on the Petroleum Industry Bill that will oversee the sector? Who can blame them for waiting to see what happens? They are waiting for us to figure out how we want to regulate the industry, and after 20 years, we still don’t seem to know. That has to change, and soon.

Nigeria has an estimated 200 trillion cubic feet of gas reserves. It is high-time to put them to use. With the right policies we could change the face of the country completely. We could give light to our people, we could power our industries, releasing them from the handicapping dependency on diesel generators that make it all but impossible for them to be competitive, we could relinquish ourselves from our dependency on imported fuel for power and heat, we could create new opportunities for job creation and industrial development, we could take millions of people out of poverty… Further, strong domestic gas and gas-based industries could help boost intra-African trade, create new synergies with our neighbours, boost integration of power generation networks, establish new partnerships, even contribute to peace.

What I am saying, I say as an African, and it applies to many countries across the continent. However, Nigeria is in a prime position to truly enact change and be a beacon to others by showing leadership and resolve. It is the continent’s biggest economy and has the continent’s biggest reserves of hydrocarbons, both oil and gas. NNPC already works with some of the best major IOCs and the country has Africa’s best and most developed indigenous exploration and production capabilities. Let’s give ourselves the opportunity to be better and to live better, by taking advantage of the resources we already possess.

Mr Sylva is showing leadership and drive. So far, he has proven himself to be the leader that Nigeria needs to develop new LPG and LNG industries that will take the country to the next level of development, not only economically speaking, but socially, environmentally, humanly. So, let’s hope he can pull through the great transformations that need to occur for 2020 to truly be Nigeria’s year of gas.

NJ Ayuk is the Executive Chairman of the African Energy Chamber and author of Amazon best-selling book, Billions at Play: The Future of African Energy and Doing Deals.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Navigating the Maze: Solutions for Nigeria’s Flourishing Foodtech Industry

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Diana Tenebe food security challenges in Nigeria

By Diana Tenebe

Nigeria’s foodtech sector holds immense promise to transform our nation’s food production, distribution, and consumption systems. However, this burgeoning industry currently navigates a complex maze of challenges that could significantly hinder its progress.

While innovation and entrepreneurial drive are abundant, a confluence of infrastructural deficits, economic headwinds, technological disparities, and logistical complexities casts a shadow on the sector’s long-term viability.

Understanding and addressing these multifaceted hurdles is paramount for foodtech companies aspiring to thrive and contribute meaningfully to Nigeria’s food security.

One of the most significant impediments to the foodtech sector’s advancement is Nigeria’s persistent infrastructural weaknesses. The unreliable power supply, a well-known constraint for businesses nationwide, directly threatens food preservation, increasing spoilage risks and driving up operational costs for companies reliant on refrigeration and consistent processing.

Similarly, the often-deteriorated state of our road networks complicates logistics and transportation, hindering the efficient movement of goods from farms to consumers and across the supply chain.

Furthermore, limited access to clean water exacerbates operational challenges, particularly for maintaining food processing and hygiene standards. Collectively, these infrastructural shortcomings inflate operational expenses and introduce vulnerabilities throughout the food supply chain.

Economic constraints add another layer of intricacy. Fluctuations in currency exchange rates create instability in pricing and procurement, especially for businesses dealing with imported technologies or ingredients. Persistent inflation erodes consumer purchasing power and increases the cost of essential inputs, squeezing profit margins for startups.

Moreover, limited access to credit and investment capital makes it difficult for emerging foodtech companies to secure the necessary funding to invest in crucial technology, infrastructure, and expansion efforts. This financial constraint can stifle innovation and prevent promising ventures from reaching their full potential.

The digital divide also poses a unique challenge for foodtech companies aiming to leverage online platforms and digital solutions. While mobile phone usage is widespread in Nigeria, disparities in digital literacy and access to reliable internet connectivity can restrict the widespread adoption of online food ordering and delivery services, particularly in rural and underserved communities. This necessitates creative and inclusive strategies to bridge the digital gap and reach a broader consumer base.

Inefficiencies within the supply chain represent a critical bottleneck in the Nigerian food system. Fragmented agricultural supply chains, characterised by numerous intermediaries and a lack of transparency, contribute to alarmingly high post-harvest losses.

Inadequate storage facilities and inefficient transportation infrastructure further compound these issues, leading to significant waste and price volatility. Addressing these systemic weaknesses is crucial for ensuring a stable and affordable food supply for all Nigerians.

Navigating Nigeria’s regulatory landscape can also be a daunting task for foodtech businesses. The presence of multiple regulatory agencies, coupled with often bureaucratic and time-consuming processes for obtaining licenses and permits, can create significant hurdles for startups. Clear, consistent, and streamlined processes within the regulatory framework are essential to foster a more enabling environment for innovation and growth.

Building consumer trust and acceptance for new food technologies requires overcoming inherent skepticism and unfamiliarity. Concerns regarding food safety, quality, and the security of online transactions can hinder the adoption of novel food products and digital platforms. Transparent communication, robust quality control measures, and consistent consumer engagement are vital for building confidence and fostering widespread acceptance.

Finally, a notable talent gap exists within the Nigerian foodtech ecosystem. A shortage of professionals possessing specialised skills in food science, technology, business management, and logistics can limit the growth and innovation capacity of companies in this sector. Addressing this skills deficit through targeted training and development initiatives is crucial for long-term success.

Despite these significant challenges, promising pathways forward can be forged through innovative and context-specific approaches. Investing in localised infrastructure solutions, such as independent power generation and efficient localised logistics networks, can mitigate the impact of broader infrastructural deficiencies.

Exploring diverse funding avenues beyond traditional banking, including angel investors, government grants, crowdfunding, and revenue-based financing, can alleviate financial constraints.

Adapting to the digital divide by leveraging basic mobile technology and employing offline strategies like local agent networks can expand reach and inclusivity. Building resilient supply chains through direct farmer relationships, investing in aggregation centres, and utilising technology for farm management offer tangible solutions to logistical inefficiencies.

Proactive engagement with regulatory bodies and advocating for clearer, more supportive policies are crucial for navigating the regulatory landscape effectively. Building consumer trust necessitates transparent sourcing practices, clear communication about product benefits and safety, and active engagement with consumer feedback.

Finally, investing in talent development through collaborations with educational institutions and in-house training programs can bridge the critical skills gap.

Foodstuff Store is emerging as a business with a clear vision to directly confront several of these challenges. We are actively developing a decentralised network of businesses supported by strategically located distribution hubs across target states. This approach will directly address the limitations imposed by poor road networks, ensuring more localised access to our food products.

Furthermore, the establishment of regional storage facilities, including a state-of-the-art solar-powered cold storage, directly tackles infrastructural deficiencies related to food preservation and ensuring a consistent supply.

Foodstuff Store’s ambition for end-to-end management of the food supply chain, encompassing in-house production, direct sourcing, advanced storage solutions, and efficient distribution, offers a powerful solution to existing supply chain inefficiencies.

This integrated approach promises enhanced quality control, significant reductions in post-harvest losses, and a more reliable supply of both perishable and non-perishable goods for our customers.

Our aspiration to become the “Amazon for Food Products” is a clear and ambitious goal underpinned by a technology-driven approach to all aspects of our operational management. Foodstuff Store’s vision underscores a business model strategically designed to overcome significant hurdles within the Nigerian foodtech sector, offering a beacon of potential and a pathway to a more secure and efficient food system in a challenging yet remarkably promising landscape.

By Diana Tenebe is the Chief Operating Officer of Foodstuff Store

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President’s Katsina State Visit Exposes Disconnect from People’s Needs

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tinubu in katsina

By Abba Dukawa

The recent visit by the President Bola Tinubu to Katsina State has sparked concerns about the disconnect between the government’s priorities and the people’s needs. The visit exposed the hypocritical approach to the need of their people, states and the northern Nigeria as whole. The quality of leadership in the region has been questioned, with allegations of self serving  interest, ineptitude, and a lack of vision.

This is in spite of the fact that northern Nigeria as a whole faces numerous challenges that threaten its stability and development. Some of the key issues include insecurity, poverty, education, economic hardship, inequality and social and cultural challenges. The visit has been seen as an opportunity missed to engage with the state’s residents, listen to their concerns, and chart a way forward for development.

While the visit was marked by displays of pageantry and entertainment, the state’s pressing issues such as insecurity, poverty, and economic hardship, seemed to take a backseat.  Critics argue that the government’s focus on superficial events rather than addressing the root causes of the state’s challenges is a clear indication of a disconnect from the people’s needs.

The introduction of Rarara’s wife to the President by the Katsina State Governor, contravening cultural and religious norms, raise questions about leaders’ priorities and values.

Current leaders in the north seem more focused on personal interests and political survival than advocating for the northern Nigeria improvement.

Regardless of the challenges in the region the Governors  keep  praise for the President’s economic reforms, notwithstanding the region’s struggles, is concerning. economic reforms should lift people out of poverty, create jobs, and stimulate growth. If not yielding tangible benefits, they need reevaluation.

The north needs leaders prioritizing regional development and working towards a brighter future. Leaders understanding our region’s problems and committed to tackling them head-on are crucial. It’s time for a shift in approach, prioritizing people’s needs over personal interests.

As we move forward, we must demand more from our leaders. We need leaders who will stand up for the north and work tirelessly to find solutions. Anything less is a disservice to the region and its people.

We need leaders who cultivate a culture of good governance, prioritizing accountability and transparency to address insecurity and promote development.

The north needs a visionary leaders who prioritize all citizens’ needs, regardless of tribe or religion, are crucial for unity and stability.

Leaders who accelerate economic development, create jobs, and provide essential services like education and healthcare can reduce poverty and insecurity.

We require leaders who will combat corruption and promote social justice, reducing inequality and fostering stability.

In northern Nigeria, effective security reforms are necessary, including modernizing security agencies, enhancing intelligence gathering, and addressing insecurity’s root causes to ensure public safety.

To bridge the gap between the government and the people, there is a need for leaders who understand the intricacies of the state’s problems and are committed to tackling them head-on. By prioritizing the people’s needs and working towards sustainable development, the government can build trust and foster a sense of ownership among its citizens

May God guide Nigeria towards true development and prosperity.

Dukawa, a concerned Nigerian, can be reached at abbahydukawa@gmail.com

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Changing University Climate: It’s No Longer “Publish or Perish,” It’s “Be Visible or Vanish”

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Publish or Perish Timi Olubiyi

By Timi Olubiyi, PhD

For decades, the expression “publish or perish” has been of interest to academics, researchers, and professionals worldwide. Success is measured by the total number of peer-reviewed articles published, conference proceedings available online, and book chapters produced and published.

Despite so much research stemming from academic institutions, not many of these publications enjoy wide visibility in particularly those published in non-indexed journals.

Academics are continuously encouraged to increase the impact of their research endeavours, but what really constitutes impact in today’s academic environment?  Is it the number of citations for your published research?  Is it the amount of research funds your name and profile can generate?  Is it the number of speeches and presentations you deliver about your research area?  Is it the number of boards/committees/working groups that you serve on? And so on.

Though in the academic world, publication signifies validation and survival in most universities for promotion and relevance; in fact, it remains a cornerstone of career advancement. From early-career lecturers to senior professors, scholarly publishing plays a pivotal role in demonstrating expertise, building reputation, and meeting institutional benchmarks for promotion.

However, in today’s hyper-connected, information-saturated environment, a compelling principle has emerged: “Visible or vanish.” In other words, it is not just what you publish; it is who sees it, talks about it, and shares it that matters. Today, there is a stronger emphasis on quality, impact, relevance, and where your articles are published.

Globally, publications in high-impact journals measured and indexed in Scopus, Web of Science, Australian Business Deans Council (ABDC), Chartered Association of Business Schools (ABS), Science Citation Index Expanded (SCIE), Social Sciences Citation Index (SSCI), Directory of Open Access Journals (DOAJ), and more are given serious emphasis.

The primary reason for academic publication should be to advance knowledge, not merely for promotion or institutional expectations. In the author’s opinion, the true reasons for academic publication are to help scholars establish their intellectual identity, which represents a personal academic brand, provide a platform for international recognition, and create career milestones.

Though the gatekeeping role in academia has diminished, this has created a market for predatory journals for academics aiming for promotion. What are predatory journals? They are journals that are fraudulent or unethical academic journals that pretend to be legitimate scholarly publications but do not follow proper peer-review standards, editorial practices, or have recognized indexation.

All they need is money, money and money, no values or integrity. Predatory journals prioritize profit over quality and can seriously harm the academic career of a scholar with a global vision.

Though academic publications still remain respected, considering indexation is key even for institution-based journals (Journals run by university departments). Publication remains the foundation of academic promotion, but how and where academics publish matters more than ever.In an academic environment that is increasingly competitive, interdisciplinary, and global, researchers must not only produce excellent work but also strategically position it for maximum visibility and influence.

Both academics and researchers must consider more than just publication because we have only two key roles in publishing- to do our research and to communicate the research; the latter is the focus of this piece. Our research needs to be noticed, cited, and discussed due to its impact, or we risk being completely overlooked.

Platforms like Google Scholar, ResearchGate, LinkedIn, Facebook groups, Twitter (now X), and even TikTok have become unexpected grounds for attention. Researchers who communicate their work beyond academic circles through public lectures and engaging online posts amplify their impact dramatically.

A highly cited, visible paper can transform careers far faster than a series of obscure journal articles ever could. Therefore, for relevance and global standards, a quality publication with visibility is required.

Visibility today means publication with recognition, a visibility that can connect researchers to a broader global academic community. It can also enhance career and funding opportunities beyond the immediate environment of the researcher.

When publication is executed correctly, it has the potential to create change beyond academic circles, influence policies, and shape professional practices. It can also raise public awareness on critical issues like climate change and inequality.

With millions of articles published annually, even excellent research can be buried unless actively promoted to make it widely visible. Good visibility can also improve invitations for collaborations, keynote addresses, consulting engagements, and even career pivots beyond academia. Visibility, thoughtfully pursued, is no longer optional; it is extremely important. It may also help fulfil deeply personal motivations.

However, remember that scholarly publishing is not a one-way communication. It should encourage and invite critique, discussion, and debate; that is what visibility can provide. Research that enjoysvisibility has a higher chance of influencing policy, industry practices, and public understanding

It is safe to say it is key for researchers, scholars and academics to navigate this new landscape.Visibility is increasingly vital in academia as it directly influences career progression, research significance, and the capacity to engage with a broader audience. Enhanced visibility can connect to opportunities for international research partnerships, funding, and new audiences globally.

In the current competitive academic environment, merely publishing research is insufficient; scholars must proactively advocate for their work and establish a robust online presence to guarantee visibility and media attention. In an era of increasing pressure to publish quickly and frequently, remembering these true reasons can help academics stay focused on purpose over performance, ensuring that their contributions are not only counted but truly matter.

Therefore, publish wisely, publish well, and publish with purpose, along with incredible consistency. In the contemporary technological era, the way research information is handled, conveyed, processed, shared, and maintained has changed.Therefore, my colleagues, be a thought leader, there is a need to gravitate towards social media because it can improve visibility and also to promote research findings or knowledge thereof. So, welcome to the era of visible or vanish. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi is an expert in entrepreneurship and business management, holding a PhD in Business Administration from Babcock University, Nigeria. He is a prolific investment coach, author, columnist,seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached on Twitter at @drtimiolubiyi and via email at drtimiolubiyi@gmail.com for any questions, reactions, and comments.

The opinions expressed in this article are those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the views of others.

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