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PENGASSAN Laments Effect of Recent Policies on Nigerian Oil, Gas Operations

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By Adedapo Adesanya

The Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has expressed worry over the impact of the recent policy directions of the Bola Tinubu-led government on Nigeria’s oil and gas operations.

The President of the association, Mr Festus Osifo, stated this on Wednesday in Abuja at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) themed The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft.

“Recent policy directions by the government have placed untold hardship on Nigerians.

“Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from N450 officially in May 2023 to the current exchange rate of about 1600 Naira.

“This is the reason why the landing price of PMS today is over N1,000 (reintroduction of subsidy), the reason why AGO is selling for over N1,300 and the reason why all Imported commodities are over the roof today.

“The overarching impact of these on Nigerians can only be imagined rather than experienced,’’ he said.

Mr Osifo said the floating of the Naira in the official market had exacerbated the challenges faced by their members.

He also said PENGASSAN is committed not to relent until victory is achieved in the fight against crude oil theft.

“The scourge of crude oil theft poses a significant threat to our industry, economy, and national integrity.

“As an Association, we have mounted the rostrum over time, both on the streets and in the boardroom, to champion this cause, and we will not relent until victory is certain.

“We are steadfast in our resolve to continuously partner with other stakeholders in the industry to combat this menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies,’’ he said.

Mr Osifo warned that Nigeria stood at a crossroads, especially in the oil and gas sector, and the actions and decisions of the association must be geared toward rescuing the country.

He said the summit would design a framework for a policy trust for the government towards shaping the economic outlook of the country.

“It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity.

He, therefore, called on industry players to explore innovative solutions to forestall financial losses to workers prevent undue gains to companies and ensure a fair and equitable environment for all.

Mr Osifo said PENGASSAN would do all it could to push for just and equitable distribution across its branches.

The labour leader appreciated President Tinubu for the recent signing of an Executive Order that granted incentives to investments in the oil and gas industry.

He said the move translated to the recent $550 million Final Investment Decision announced by NNPC Limited and TotalEnergies on the Ubeta project.

Mr Osifo said PENGASSAN equally recognised the efforts of NNPC Limited Management in furthering partnership initiatives in the upstream and downstream sectors of the Industry.

“The recent MOU signed by NNPC Limited with Total Energies and separately with Shell are indications of fostering good relationships with critical partners.

“The expansion of CNG and LPG infrastructures by NNPC Limited across the nook and crannies of the country is a right step in the right direction and this must be encouraged and deepened,’’ he said.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Nigeria-China Strategic Partnership to Deepen Economic Ties

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By Adedapo Adesanya

The Director-General of the Nigeria-China Strategic Partnership (NCSP), Mr Joseph Tegbe, is currently visiting China to bolster China-Nigeria relations and foster economic and sustainable development between both countries.

The DG, with the Nigerian delegation, on Monday was at the headquarters of the National Development and Reform Commission (NDRC) of the People’s Republic of China where the NDRC Deputy Chairman received them, Mr. Zhao Chenxin, and other top officials, as well as the Nigerian diplomatic community and the Chinese Business Community.

Mr Tegbe is expected to cement strategic agreements in line with President Tinubu’s vision, with China for national growth and in vital sectors of the economy such as agriculture, to boost food security, alternative energy for developing renewable energy sources, healthcare, mining for harnessing Nigeria’s mineral resources to drive economic growth, education to strengthen Nigeria institutions and promote cultural exchange.

Other areas include technology, to foster innovation and advancement, and the support initiative of China’s Belt and Road Initiative (BRI).

The visit of the NCSP ‘s DG underscores the federal government’s commitment to establishing strong bilateral relations and supporting Nigeria’s economic diversification plans, infrastructure development, technology transfer, and job creation to foster mutually beneficial collaboration between the two nations.

Through this initiative, Nigeria can leverage its resources and human capital to develop key industries, bolster infrastructure, and enhance youth capacity through skills acquisition programmes.

On Monday, the DG NCSP and his team visited the CCECC Head Office, had dinner with the CHEC, and will on Tuesday, visit the Governor of the Central Development Bank, the Ministry of Foreign Affairs, and the China Export, Import Bank, as well as the China Development Bank. They also met with Power China Representatives.

They will on Wednesday, visit the Chief Harbour, the CHEC, CNCEC, and the CCECC Chairman, before moving to the CSCS Haishen Medical on Thursday, the CCECC, the China Building Materials, amongst others.

They will on Monday, 20th January, visit the Consulate General/Trade Mission Office, the Yang Shang Deep Sea Port, and Danghai Bridge (Sea).

The team is also expected at Huawei, before going to the CEC/ Long UAV, for a meeting with Diana Chen on Saturday, before returning to Nigeria.

This initiative comes on the heels of President Bola Tinubu’s official visit to China before the 2024 Forum on China-Africa Cooperation (FOCAC), where he had talks with China’s President Xi Jinping on improved economic cooperation, with the latter pledging 360 Billion Yuan, (about $51 billion), financing to African nations in the next three years, and support for 30 infrastructure projects to boost connectivity across the continent.

Last week, Chinese Foreign Minister Wang Yi visited Nigeria to reinforce the growing partnership between China and Africa, especially Nigeria, with discussions on strengthening economic ties, enhancing security cooperation and mutual developmental goals.

As Nigeria, Africa’s largest economy, seeks to become a net exporter to China in the next five years, the consolidated partnership is aimed at playing a crucial role in achieving this goal.

The country also remains China’s major partner on the continent for trade and technology investments.

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Adelabu Claims Power Generation Rose 30% in 2024

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By Adedapo Adesanya

The Minister of Power, Mr Adebayo Adelabu, said power generation in the country increased by about 30 per cent in 2024, but missed crucial targets in the review year.

Mr Adelabu made the disclosure during his ministry’s 2025 budget defence before the Senate Committee on Power at the National Assembly complex on Monday.

He said that when he assumed the leadership of the ministry in 2023, he met an average of 4,100 megawatts of power generation.

“I can tell you authoritatively that by the end of 2024, we had a peak generation of 5,528 megawatts of power from 4,100 megawatts that we met on ground and the reason for this is not far-fetched. We added a new hydroelectric power dam, Zungeru, with 700 megawatts.

“There was also a tremendous increase in the generation lines by other existing generation companies,” he said.

The Minister said that the target for power generation was 6,000 megawatts, adding, however, that due to the challenges experienced toward the end of 2024 in terms of grid collapses, the ministry missed the target by a minimal margin.

He further said that apart from energy access expansion, the sector had plans to stabilise the grid and other transmission infrastructure.

“I’m happy to also inform you that out of the eight collapses of the national grid that we experienced during 2024, five were full collapses, while three were partial collapses.

“Out of the five full collapses, three were actually due to generation problems. So, as against the 12 collapse that were publicised, it was just about eight collapses.

“We have been trying very hard to ensure that we manage the grid that was inherited.

“Unfortunately, it is still very old. It is dilapidated. And we are just managing it until we are able to fix it permanently.

“This is the focus of the Presidential Power Initiative, to ensure that the entire grid is revamped so that we won’t be having all this vandalism.

“So these are the summaries of our activities. And we are proud to say that we almost met all our targets for 2024.

“Our hope is that 2025 will be a better year for us, and we will be able to address all the existing issues in the sector,” he said.

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Sanwo-Olu Denies Involvement in Obasa’s Removal as Lagos Speaker

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By Dipo Olowookere

The governor of Lagos State, Mr Babajide Sanwo-Olu, has refuted claims that he was involved in the removal of Mr Mudashiru Obasa as the Speaker of the Lagos State House of Assembly.

Mr Obasa was impeached on Monday after being on the seat since 2015 by 32 of the 40-member state parliament for alleged gross misconduct.

The action was carried out while the Speaker was away in the United States, with Mrs Mojisola Meranda elected as his replacement, becoming the first female to occupy the position.

It happened a few weeks after Mr Obasa said during the presentation of the 2025 budget by Mr Sanwo-Olu that he was qualified to be the governor of the state and even better than those who have occupied the position.

This statement by the former Speaker was seen as an affront on the previous governors of the state, including President Bola Tinubu, who governed Lagos between 1999 and 2007.

It has been speculated that Mr Obasa kept Governor Sanwo-Olu waiting for long during the budget presentation last month. It was claimed that this action infuriated the governor and leaders of the ruling All Progressives Congress (APC).

Yesterday, members of the parliament in Lagos said they had had enough of Mr Obasa, moving to remove him from office.

As this happened, there were claims that Mr Sanwo-Olu instigated members of the Lagos State House of Assembly to impeach the former Speaker.

But the governor, through his Special Adviser on Media and Publicity, Mr Gboyega Akosile, distanced himself from the impeachment, emphasising that it was purely a decision of the legislative arm of government.

“This is a legislative matter, and the Assembly handled it as they saw fit. The governor has no involvement,” Mr Akosile, who once served as the Chief Press Secretary (CPS) of Mr Sanwo-Olu, said in an interview, noting that his principal does not interfere in the other arms of government.

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