General
Africa Needs Technological Expertise to Unlock Full Potential of Energy Resources—Ayuk
By Kestér Kenn Klomegâh
The Russian Energy Week International Forum is a key global platform for discussing current trends in the development of the modern energy sector. This event is traditionally held at the highest level, featuring the participation of leaders from the largest companies in the energy industry. In 2023, the forum attracted over 3,000 participants from more than 80 foreign countries.
On the sidelines of the forum, the Executive Chairman of the South Africa-based African Energy Chamber, Mr NJ Ayuk, acknowledged in an exclusive interview that Africa is developing as the fastest-growing energy market in the world. That, however, substantial investment and infrastructure development are required to realize this market potential.
In this interview, NJ Ayuk further explained the necessary steps African countries are adopting to ensure sustainable energy development, how the activities of Russian companies fit into this context, as well as existing challenges and financial support measures for projects in the energy sector across Africa. Here are the excerpts of the discussion:
After participating in the Russian Energy Week in mid-October, what are your objective views (especially during the special Russia-Africa energy sessions) about exploring business and investment in the energy sector with Russia?
There lies significant opportunities for both bilateral and multilateral cooperation between Russia and African countries. Russia represents the third largest oil producer worldwide and has effectively utilized its substantial gas reserves for the development of its economy. At the same time, the country is exploring renewable energy solutions and is looking at expanding its footprint in other markets worldwide.
With substantial expertise and resources in various energy domains, lessons learnt by Russia will be highly strategic for emerging oil and gas producers in Africa. And already, there is strong interest by both sides to foster strong ties and partnerships, evident during the Russian Energy Week this October. Russian companies such as Gazprom – which organized an event with the African Energy Chamber this year in South Africa – represent ‘global energy companies’, and as such are eager to play a greater role in investing and developing international markets. Gazprom has vast expertise is all segments of the value chain. The same can be said for Russia’s state-owned Rosatom. Africa represents both a strategic and highly attractive market in this regard. With over 125 billion barrels of proven oil reserves, 620 trillion cubic feet of natural gas and unparalleled solar, wind and hydro potential, the continent has all the ingredients to become a major global player.
What Africa needs to unlock the full potential of its energy resources is investment and technological expertise. Russia offers both. Now, what is left is for Africa to improve its business environment and prioritize engagement with its East European partner.
By the way, how do you estimate Russia’s engagement in the energy sector across Africa? What has been achieved over the past few years in Africa?
Russia’s engagement with Africa has been gradually growing over the years and we see this predominantly in the energy sector. For years, there have been strong trade and cooperative ties with countries such as South Africa, Morocco, Egypt, Algeria and many more, primarily in the food, machinery and chemical product industries. However, energy cooperation has presented newfound opportunities for both Russia and the African continent. Changes in global supply-demand dynamics, coupled with energy transition impacts, have led to a new focus placed on the strategic Russia-Africa partnership.
In recent years, Russian companies have advanced their engagement with Africa, with several agreements signed across various segments of the value chain. While historical ties have been largely trade-based, these agreements showcase a commitment by the country to expand its technological expertise worldwide. In the nuclear industry, for example, Russia’s Rosatom has signed a wave of agreements with burgeoning nuclear power producers in Africa. These include memoranda of understanding signed with South Africa in 2014 and 2023; Rwanda in 2019; Burkina Faso in October 2023; Burundi in July 2023; and Mali in October 2023. Additional agreements were signed with Zimbabwe and Uganda. And while oil and gas engagement has been minimal to date, going forward, a shift in priorities is expected to see Russia-African cooperation rapidly expand.
Do you think Russia lags in supporting Africa with energy compared to other external players such as China? Can ‘energy mix’ help to drive Africa’s industrialization and economic growth?
It is not about comparing support but rather about exploring future engagement and partnerships. Russia has been a strong partner for Africa for many years and will be an important part of Africa’s energy future. Russia is looking at playing a much larger role in Africa, going further than operating as a project developer. The country’s efforts to share insights, expertise and technology will represent a key driver of Africa’s future energy mix, which in itself is an important feature for alleviating energy poverty and industrializing the continent. Africa is promoting a diverse, inclusive energy mix, one in which oil, gas and renewable energy play a central role. Russia has been highly successful in this area, with natural gas and nuclear making up a significant portion of its energy matrix. In the same sense, African countries have all the resources needed to implement a diverse energy mix, and Russian support will be strategic in achieving this objective.
Is Russia participating in the formation of the proposed African Energy Bank? And finally what potentials are there to develop this sphere of energy business, especially with the heightening dynamics of the global situation?
The African Energy Bank is an initiative spearheaded by the African Petroleum Producers Organization and the African Export-Import Bank that aims to significantly improve access to financing for African oil and gas projects. The bank is an Africa-led energy transition strategy that takes into account Africa’s need for oil and gas. Support from major players such as Russia will be critical, strengthening the bank’s capacity to finance a new future of hydrocarbon development in Africa. The changing global energy situation calls for the establishment of an institution of this nature. Africa has long relied on foreign finance to develop large-scale energy projects. From oil to natural gas to power and infrastructure, the continent is faced with navigating the complexities of global market trends. The establishment of the bank aims to counter this reliance, offering an alternative for project developers, countries and companies seeking finance.
By Modupe Gbadeyanka
Residents of Nigeria experienced a power outage on Saturday, January 11, 2025, after the national grid collapsed.
It was the first that occurred this year and it happened at about 3 pm today, according to information gathered by Business Post.
Last year, the nation recorded about 12 grid collapse that almost embarrassed the government, which later set up a team to look into the causes of the frequent collapse of the grid.
It was later that today’s incident occurred after power generation went down from 2,111.01 megawatts at 2:00 pm to about 390.20 megawatts by 4:55 pm.
This development caused a cut in power supply in most parts of the country, but the situation has been brought under control, with electricity restored in most affected areas.
By Adedapo Adesanya
President Bola Tinubu on Thursday urged the Chinese government to increase the $2 billion currency swap between Nigeria and the Asian nation to enhance trade between the two countries.
He also called for an upward review of the $50 billion aid package for Africa, which China’s President Xi Jinping announced last year.
Recall that China and Nigeria recently renewed their currency swap agreement, valued at 15 billion Yuan (approximately $2 billion), to enhance trade and investment.
According to a statement signed by his media aide, Mr Bayo Onanuga, the President made this appeal and more while receiving the Minister of Foreign Affairs of China, Mr Wang Yi, at the State House Abuja on Thursday.
The President said increasing the level of currency swaps will speed up the infrastructural development in Nigeria and deepen the strategic bilateral relations.
“We still demand more in the area of currency swap. The level you have approved as a government for Nigeria is inadequate considering our programme. If you can increase that, it will be well appreciated. Our bond should grow stronger and become unbreakable,” the President was quoted to have said in a statement
President Tinubu noted that the continent’s infrastructural needs would require more commitment, urging a review of the amount to reflect the continent’s reality.
“I am happy you are part of China’s highest decision-making body. We will want you to use your position to influence improved project funding. First, I say yes to the 50 billion dollar support, and thank you for contributing to African growth.
“The infrastructural needs of Africa are greater than that, and we want to move as rapidly as our other counterparts. All share your vision of rapid development. Africa values the relationship with China, and we seek deeper collaboration for infrastructural development,” he stated.
President Tinubu also called on China to support Nigeria’s bid for a permanent United Nations Security Council seat.
“You are a member of the UN Security Council. We want you to use your influence to ensure Nigeria secures the seat,” the President said.
The Nigerian leader thanked President Xi Jinping for his warm reception during his visit to China last year.
He said Africa, particularly Nigeria, was prepared to meet developmental goals and contribute counterpart project funding
“We are ready to move and reach the various developmental goals. Due to our deliberation, we signed many MOUs and planned many action programmes.
“My visit during FOCAC was a good experience. We signed several comprehensive MOUs during the visit. We planned several programmes of action. As a result of that deliberation, I made sure that immediately after I returned, I appointed one of the best brains available to coordinate Nigeria-China relations, Mr Joseph Tegbe. He will work to actualise various MOUs and promote a greater understanding of developmental programmes.
“It is good that you came at such a critical time. My visit to China was a good experience. Once again, accept my sympathy for the earthquake in Tibet. It was a natural disaster that nobody expected. We commend your government for the rapid reaction to protect lives.
On his part, Mr Yi said Chinese investments in the country would focus on employment generation and infrastructural development. He said the Chinese National Development Bank had started funding some development projects.
He said the Chinese Government would support including an African country in the UN Security Council, adding that “it was a historical injustice by the world that should be corrected”.
“We stand with Africa, and we will not support a country that invades another country,” he stated.
The foreign minister said China would welcome Nigeria’s membership in the BRICS and participation in the global development mechanism.
He said China fully supported Mrs Ngozi Okonjo-Iweala, the Director General of the World Trade Organisation (WTO), for a second term in office.
The minister also lauded President Tinubu for his visionary leadership and consistency in projecting Africa’s needs, which require China’s support.
By Adedapo Adesanya
Nigeria has received $52.88 million recovered Galactica assets linked to a former Minister of Petroleum, Mrs Diezani Alison-Madueke, from the United States Government.
The Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN) disclosed this at the formal signing ceremony of the asset agreement between Nigeria and the US in Abuja on Friday.
Delivering his remarks, Mr Fagbemi explained that $50 million of the recovered assets will be deployed through the World Bank to the development of the rural electrification project and the remaining $2 million will be deployed to the International Institute of Justice to expand the Justice system and also counter corruption.
Mr Fagbemi noted that the asset return marks a milestone in the ongoing collaboration between Nigeria and the US in combating corruption and upholding the rule of law
He said the event is also a significant effort by President Bola Tinubu to address the issue of corruption.
Meanwhile, in his remarks, the United States Ambassador to Nigeria, Mr Richard Mills called for the monitoring and effectively utilizing the recovered assets by the Ministry of Justice to benefit Nigerians.
Mrs Diezani Alison-Madueke has been accused of abusing her power when she was petroleum minister under the administration of former President Goodluck Jonathan in Nigeria, including accepting financial rewards for awarding multi-million-pound contracts.
In 2023, the United Kingdom National Crime Agency (NCA) alleged that Mrs Alison-Madueke benefited from at least £100,000 ($127,000) in cash, chauffeur-driven cars, flights on private jets, luxury holidays for her family, and the use of multiple London properties.
Other charges against her also detail financial rewards, including furniture, renovation work and staff for the properties, payment of private school fees, and gifts from high-end designer shops such as Cartier jewellery and Louis Vuitton goods, the NCA said.
Since she left office, she has been dogged by corruption allegations but denies the charges.
The 63-year-old woman has been on bail since first being arrested in London in October 2015.
The US Department of Justice has recovered assets totalling $53.1 million linked to Mrs Alison-Madueke’s alleged corruption.
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