Stakeholders have recommended global practices to sustain Africa’s energy sector during the Nigeria International Energy Summit 2023, which was held from the 16th – 20th of April 2023 in Abuja, Nigeria.
The event with the theme ‘Global Perspective for a Sustainable Energy Future’, had many dignitaries and stakeholders in the energy sector partake both physically and virtually.
Speakers at the summit shared insights on the energy sector and how the industry will progress in the future.
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Mrs. Elohor Aiboni, the Managing Director of SNEPCO, was one of the panelists in the Business Leaders and Regulatory Dialogue Panel Session themed “Africa at Heart of Global Energy Mix: What’s Ahead in Nigeria?”
Elohor revealed that Shell had invested $200,000,000 in solar/renewables companies but not many Nigerian companies are tapping into that resource.
She mentioned that her training at Shell taught her to think in scenarios. She always anticipates the worst-case scenarios and how Global events affect her business.
Chevron’s CEO Rick Kennedy during the Ministerial Panel on Decade of Gas mentioned that Chevron’s strategy is to decarbonize and also move away from Onshore Assets.
During the Business Leaders and Regulatory Dialogue Panel Session, Mr. Olumide Adeosun, the Chairman of ARDOVA and Chairman of MOMAM, mentioned that only 13% of Nigeria’s roads are tarred and since transporting hydrocarbons were done by road in Nigeria, it made things difficult.
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Mrs Nkechi Obi, the Chief Executive Officer of Tecno Oil, also in the Business Leaders and Regulatory Dialogue Panel Session highlighted that Nigeria needs to invest at least $1 billion monthly in energy mix.
She mentioned that Tecno invested millions of dollars in building a Cylinder manufacturing plant in Nigeria to counter fake and low-quality cylinders imported from China. She also mentioned that Tecno Oil gives away free cylinders so consumers can switch from firewood to Natural gas as a source of energy.
Dr. Ainojie Alex Irune, the Chief Operating Officer of Oando Energy Resources stated that 1% of electricity increases equates to 2% in GDP increase and that in Germany, a group of small to medium size companies called the Budesstag make up 70% of Germany’s GDP.
He stated that leaders in the Energy Sector must show more innovation and have a practical approach to solving the continent’s energy crisis.
Ms. Iroghama Ogbeifu, the Managing Director of Starzz Investments Co, spoke about Special Energy zones during the Panel Session themed “Partnerships and Energy Transformation”.
She said “Nigeria is strategically positioned to become a Regional Hub for specialized SEZs capable of supporting Africa to realize a sustainable energy mix and give away to the emergence of Nigeria as a global maritime hub”
However, there must be an intentional strategy to establish competitive SEZs; strong political will drive coherent policies that encourage a friendly business environment, commitment to infrastructural development, and value creation.
Ogbeifun added that greater awareness, skill transfer, and stakeholder collaborations and alignment will all shape the future of Integrated Offshore Energy and SEZs Projects.
Dr. Bashir Jamoh, the Director General of NIMASA, also during the Partnerships and Energy Transformation Panel Session spoke about the importance of the blue economy.
The Nigerian Maritime Administration and Safety Agency, NIMASA, is committed to the enthronement of global best practices in the provision of maritime services in Nigeria. He spoke about the importance of Corporate Governance with the agency and security of the nation’s waterways.
Mrs. Anita Omoile, the Managing Director of Deep Blue Energy Services Limited, mentioned the need for many oil services businesses to start thinking of net zero. She used her new office building as an example.
At the end of her speech, Mrs. Omoile played a short video on the Renewables Project that Deep Blue Services was embarking on. This was discussed during the Energy Access, Mix, and Innovation Showcase Panel Session, themed: Rethinking the Way We Power Our Lives, Economies, and the World.
Dr. Bolaji Ogundare, the Group Executive Director of Pan Ocean Oil Corp Nigeria LTD and NEWCROSS Group, mentioned during a panel session that for Nigeria and Africa to take advantage of its energy resources, it must have an African Bank. An Afrocentric Financial Institution especially suited for financing African Oil & Gas projects.
Ogundare stated that even though Africa has about 65 DFIs with 12 of them in Nigeria, there is still not enough access to funding by promoters of Oil and Gas projects.
Mr. Olu Ogunfowora, Partner at Argentil Capital Partners, when speaking about the challenges of Marginal Field operators and Oil And Gas Projects in getting financing spoke about the lack of Corp Governance Structure in many Nigerian Companies.
He also noted that investors may not be impressed at your track record from Shell or Chevron, they want to see that for instance, you are producing 500 barrels per day than you had 30 years at Shell.
Peter Adeshola Olowononi, the Head of Client Relations, at Anglophone West Africa African Export-Import Bank mentioned that AFREXIM was the largest single lender to the Dangote Refinery with a $900,000,000 loan.
Olowononi mentioned that Nigerian Banks needed more capacity in terms of handling trade finance. He said, for instance, the Mauritius Commercial Bank handled most of the financing for refined products.
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Mr. Obi Uzu, the Managing Director & Chief Executive Officer of GPPSL, mentioned during the NUPRC Panel Session that he had over 30 years of experience in the Oil & Gas business and that most people like Bankers, enter the industry without relevant experience.
He stressed that “developing expertise and technical expertise takes time and requires intense training because the Oil & Gas business is a specialized industry with operations in a high-risk environment. For instance, bulbs in FPSOs are not ordinary bulbs but high-grade bulbs produced just for that environment.”
During a panel session focused on the future of in-country downstream activities, Mr. Anibor Kragha, the Executive Secretary of African & Distributors, said “that no matter what, we all need refined products.
“If we looked around the room, everyone drove in a car or flew in a plane that was powered by a refined crude product.”
He mentioned that “the NCDMB is doing a great job in working with local modular refinery builders to develop capacity and improve local production of refined products.”
Mr. Gbite Adeniji, Managing Partner, ENR Advisory and former Special Advisor on Gas Policy to the Minister of Petroleum Ibe Kachukwu who was among the panelist for the NUPRC Session spoke about the Marginal Field Bidding process.
He said the 2020 bid rounds conducted by the then “Department of Petroleum were an embarrassment”.
Adeniji spoke emphatically about the need “for the Nigerian Government to put better frameworks for investors to participate in future bidding processes for Nigeria’s oil & gas assets.”
Also, in the panel session focused on the future of in-country downstream activities, Mr. Tunji Oyebanji, the Managing Director of 11 PLC, mentioned that in terms of fuel subsidy, the “Nigerian government was solving an economic problem with a political solution.”
He mentioned that 11 PLC had made strategic investments to improve operations and increase capacity in the number of refined products it marketed.
