World Press Comments on Nigerian developments- Building confidence -
Big challenges remain for President Obasanjo’s reforming administration, but investor belief in Africa’s most populous nation is growing
http://www.worldreport-ind.com/nigeria2/index.htm A potent mixture of oil, democracy and reform has been transforming the fortunes of Africa’s most populous country. Once a military dictatorship regarded as a pariah state,
Nigeria now boasts one of the fastest growing economies in the world and is on the way to becoming the powerhouse of the continent.Growing international confidence in the West African country is reflected in recent assessments from international observers.
Ratings by the global agencies
Fitch and Standard & Poor’s have placed Nigeria in the same category as emerging economies such as Brazil, Venezuela, Turkey and the Philippines.
Both agencies cite the commitment to reform of President Olusegun Obasanjo’s federal government, together with last year’s decision by the Paris Club of creditors to lift the country’s crippling burden of external debt, as key reasons for taking a positive view of the future. All eyes will be on Nigeria next year, hoping that the economic reform programme will be continued in the years following the 2007 elections.
The analysts forecast that economic prospects will improve even more when further progress is made in tackling the political and social challenges that the nation faces.
Indeed, a Goldman Sachs report has suggested that if Nigeria sticks to its reform agenda, it will overtake South Africa and Egypt to become Africa’s strongest economy and by 2020 could become one of the 25 largest economies in the world.The vital energy sector continues to develop rapidly,
with the coming onstream of huge new deepwater oil and gas fields. Prospects look good for achieving the government’s objective of raising production from 2.6 million barrels per day to four million, and the high price of crude is keeping up oil revenues despite problems in the Niger Delta.
Obasanjo’s reform agenda has set Nigeria on course to become the strongest economy in Africa.
One of the most important challenges the government needs to meet is to ensure that Nigeria’s oil wealth is shared fairly. This has been underlined by the recent outbreak of kidnapping and damage to oil facilities in the Delta. The swampy region in the southwest is the main source of Nigeria’s oil revenues and, at the same time, one of the most impoverished parts of the country.
As demonstrated by the subsequent production shutdowns, there is the potential here for disruption of the most vital sector of Nigeria’s economy, not to mention the global oil supply. Oil accounts for around a quarter of GDP, more than 90 per cent of the total foreign exchange and nearly 80 per cent of government revenues.
In this context, the work of the Niger Delta Development Commission, which recently launched a masterplan to accelerate development and combat poverty in the area, is of not only local, but national and even international importance. Another, and associated, issue is that of ‘local content’, in particular the extent of indigenous involvement in the oil and gas industry. Nigeria is reckoned to be losing a massive £4.6 billion annually through the awarding of lucrative oil service contracts to foreign firms.
The government is putting extra pressure on the multinational oil companies to utilise significant local content in terms of materials and services in the development and operation of their concessions. It is also bolstering indigenous participation in other key sectors of the economy. An increasing number of Nigerian oil services firms are proving they have the ability to take on major contracts. At the same time steps are being taken to provide the training required for more Nigerians – especially the unemployed youth – to join the oil sector workforce.
On the political front, President Obasanjo, currently in his second term, has won praise for his economic, political and social reforms and anti-corruption campaign.
Crucially his policies are encouraging foreign investment into the economy, and not just in the oil and gas sector; non-oil sectors are also expanding rapidly.[Former] Finance Minister Ngozi Okonjo Iweala says,
“Our efforts have been rewarded by an inflow of foreign direct investment, estimated at $3 billion (£1.7 billion)a year in the non-oil sector.” The non-oil GDP growth rate was 8 per cent last year, signalling that measures to diversify are working. Overall, the economy expanded 8.2 per cent in 2005, while growth of 10 per cent is targeted for 2006.
Government spending this year will be focused on human and physical infrastructure to develop power, roads, water supply, agriculture, education, health and security. Approximately £2.6 billion has been earmarked for the implementation of capital projects all over the country, including the building of new power plants.
Vice President Atiku Abubakar argues that Nigeria is now a stable country where risks for investors are now minimal.
“In the past six years, we have pursued our economic reforms with vigour and tremendous success. Returns on investment here are the highest in Africa,” he says.
Security Boost: FG spends N12b on 2,500 police patrol vehicles Tordue Salem Saturday, April 14, 2007
Abuja — The Presidential committee on Police equipment, weekend displayed the first batch of about
2,500 patrol vehicles to be presented to the Police by President Olusegun Obasanjo Monday.
The BMW, Ford patrol jeeps and 4-wheel-drive trucks, imported into the Country a few days ago, are to be presented to men of the force, by President Obasanjo and the Inspector-General of police, Mr. Sunday Ehindero.
The National Coordinator of the Police Equipment Fund (PEF), Mr. Kenny Martins, told journalists that
“the investigation trucks, which were bought at the minimum of N5million each, cost a total of N12billion”Mr. Martins who is the National Secretary of the National Democratic Party (NDP), but also working for the PDP Presidential candidate Umar Musa Yar’Adua, told journalists that
“the patrol vehicles would go round the 36 states of the Federation” Martins doused the fears of Nigerians that the vehicles would end up as “private property of some top government people.”
“These cars are not going to end up with anybody, they are for the police” he clarified.
The NDP chieftain, said
“Every vehicle that is here will eventually be tracked in the tracker system, so that they will not be diverted for private use”.
He said the Presidency in making the purchases, “dealt with reputable brands like Ford, BMW, Rover, and Toyota and 15% of the vehicle parts came with the cars, and you know that the parts wouldn’t be a problem, because most of the parts can be found here” said he.
Obasanjo to open ‘Outsourcing Conference’March 5th, 2007
President Olusegun Obasanjo will declare open Nigeria's first International Outsourcing Conference in Abuja scheduled to hold from March 21 - March 23, 2007.
IHEANYI NWACHUKWUThe conference is part of the Federal Government's efforts to launch the country's
National Outsourcing Strategy (NOS).
Following a year of research and preparation, the government has appointed the
National Information Technology Development Agency (NITDA) as responsible for the execution of the national strategy.
NITDA has partnered with AITEC Africa, as the leader in ICT conferences across the continent, to host the first International Outsourcing conference in Nigeria.
One of the highlights of the conference will be the launching of the
National Outsourcing Association.
It will also be the first time that Nigeria will be officially positioning itself as an outsourcing destination to the rest of the world.
Following the government's lead, Dimension Data announced its support for the conference as lead sponsor. The
Nigeria International Outsourcing Conference will provide a marketing and education platform to promote outsourcing as an industry in Nigeria. It will bring together all stakeholders, locally and internationally, to lay the foundation for a Nigerian outsourcing industry.
"The Nigeria International Outsourcing Conference will provide practical business and technology briefings to empower resellers, service providers and users to maximize their returns on the increasing investment that they will be making in the outsourcing sector over the coming years," said Sean Moroney, chairman of AITEC Africa
."By providing a platform for vendors, service providers and users to network and share knowledge, the conference will act as a catalyst to continue the momentum established by NITDA".
"The event will include a two-day conference and practical implementation workshops on the third day. Topics to be covered in the conference include: outsourcing challenges and opportunities, international linkages, contact centre strategies & technologies, BPO implementation, capacity building, setting goals for future growth, business opportunities showcase", said Sean.
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LAGOS INTRODUCES FREE HEALTH PROGRAMME The Permanent Secretary, Lagos State Ministry of Health, Dr. Jide Idris has said that from Monday, 12th March, 2007 the state government will commence
free health services to all Lagosians.
Addressing a press conference to kick-start the Eko Free Health Programme, Dr. Idris said the free health programme would start from Alimosho General Hospital, Igando, in the Lagos West Senatorial district from Monday, 12th to Friday, 16th March, 2007.
Dr. Idris said the programme would include free consultation and treatment of various ailments, including surgical operations for the correction of hernia, appendix, abdominal swelling, lumps, gynecological problems, among others, adding that there would also be screening for and treatment of hypertension, diabetes, eye diseases and dental problems.
He urged corporate and non governmental organizations to partner with the government to improve health care delivery in the state.
Nigerian Company Acquires Stakes in UK company.Shoreline Acquires Costain West AfricaBy Crusoe Osagie, 03.12.2007Shoreline Energy International Ltd. has acquired controlling interests of Costain Group Plc UK in Costain West Africa Plc., making it the new owner of the construction firm.
Managing Director of Shoreline Energy International, Mr. Kola Karim, described the acquisition as central to his company’s strategy of becoming the leading infrastructure solution provider in Africa.
“This is the second big acquisition we have made in West Africa in the last two years and it is in line with our goal of becoming the foremost infrastructure solution provider on the continent”, Karim said.
He disclosed that a technical service agreement is in place with Costain Group Plc UK to continue to support Costain West Africa Plc’s various projects across West Africa.
“We already have substantial stakes in the infrastructure sector in East Africa and will be in the same position in Southern Africa when we complete a major acquisition which is at an advanced stage of negotiations,” Karim added.
Managing Director of Costain West Africa Plc, Mr. Phillip Wharton, also said the divestment by Costain Group Plc, will not impact negatively on the operations of the company.
He expressed optimism that
Shoreline would bring vigour, new ideas and much needed investment into Costain West Africa Plc which will enable the company to re-strategise in order to regain its position as the leading engineering company in the region.
“I am excited at having Shoreline Energy International on board. Over the last few months working on this acquisition, I have been impressed by the energy, dynamism, commitment and ideas of Shoreline Energy International. I am convinced their presence will make a huge difference to Costain West Africa Plc”, he stated.
Shoreline already has substantial investment in Nigeria. In 2005, its subsidiary, Shoreline Power Company Limited, acquired the manufacturing arm of ABB Nigeria, ABB Electrical Systems Limited, making it the only Original Equipment Manu-facturer (OEM) for ABB products in Sub-Saharan Africa.
The company’s focus has been on power distribution infrastructure development in Africa and through another subsidiary, Agbara Shoreline Power Company, it is also building an 100MW power plant in Agbara Estate.
Shoreline Energy International also has substantial interests in the telecommunications sector through its subsidiary, Fortis Construction Limited.
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Indonesian firm to build ‘cities’ in NigeriaMarch 11th, 2007 Barring last-minute hitches, Lagos, Abuja and Port Harcourt will be beneficiaries of ultra-modern city developments, compliments of an Indonesian firm.
VINCENT CHUKS IGBINEDIONThe firm,
Ciputra Group, has already made a series of visits to Nigeria and has had discussions with government officials on the feasibility of establishing the projects in the country.
Charles Okoye, managing director/chief executive officer of
UBN Property Co. Ltd, in an exclusive chat with
BusinessDay in Lagos, says the firm has a universal reputation for
self-contained city development and the founder of the company, Ir. Ciputra, is highly excited at the prospects of investment in Africa, particularly Nigeria.According to Okoye,
Ciputra discussed the prospects of the project at a congress of the
International Real Estate Federation. This followed a country tour to Nigeria by the immediate past president of the federation, Dato’ Alan Tong Kok Mau, last year.
Alan Tong, a Malaysian popularly called the
Condo King (he is said to own about 80 percent of the condos in Malaysia), had during the visit advised that city developments in Nigeria should henceforth be vertical, that is, developers should concentrate on high-rise buildings rather than the conventional low-rise buildings that dot the cityscape. He made the recommendation bearing in mind the cost of land, especially in such cities as Lagos, Abuja and Port Harcourt.
Ciputra Group is a consortium established in 1984 for the specific purpose of planning, developing and managing the Bumi Serpong Damai new city project on 6,000 hectare site located south west of Jakarta — the first self-contained city.
Okoye, who is the Africa regional president of the federation, says the group specialises in
large-scale developments, starting from 4,000 hectares of land. He adds that officials of the firm have had series of discussions with Nigerian embassy officials in Jakarta, before they met at the real estate forum. The real estate federation is an association of professionals in the industry with headquarters in France.
The current president, Owen Gwyn, has confirmed the interest of the Indonesian company in the development projects.
This development is coming after the
Malaysian Gardens Project, a large-scale city development programme being executed in Abuja, the Federal Capital Territory. Also last year, developers of
The Paddocks, an N18-billion self-contained upper-end estate, unveiled the project. It was funded 80 percent by an Italian firm.
Founded in 1981 by Ciputra and members of his immidiate family, the
Ciputra Group pioneered housing development adjacent to Jakarta International Airport.
It specialises in large-scale, integrated projects; combining housing, commercial and recreational centres, and mixed-use developments including hotel, shopping and office-complexes. The
Ciputra Group went public in 1994.
Giving Lagos Island a faceliftBy Jude Njoku & Kingsley AdegboyePosted to the Web: Monday, March 12, 2007
Lagos Island is unarguably the hottest business district in the country. The district which houses the tallest buildings competing for visibility was the toast of property investors and other blue chip companies until the late 1980s and early 1990s. Reason? The area decayed so terribly that many of these corporate organizations that had their head offices in the district soon started relocating to Victoria Island and South West Ikoyi.
The menacing activities of street urchins popularly called area boys and street traders compounded the environmental problems of the city centre. Persistent calls for action by the Lagos Island Millennium Group on the Environment (LIMGE) and similar non-governmental organizations (NGOs) on the government to check the downward slide in the fortunes of the CBD fell on deaf ears
until recently when the state government embarked upon massive redevelopment of the Island. Lagos Island stakeholders who spoke on the impact of the ongoing rehabilitation project thumbed up the government.Property values begin to appreciatePrior to the ongoing redevelopment of Lagos Island, most banks and blue chip companies relocated their head offices to Abuja, Victoria Island and South West Ikoyi. The situation was so bad that most high-rise buildings in the Business District became virtually unoccupied.
Property owners in the area under the aegis of the Lagos Island Millennium Group on the Environment (LIMGE), cried out to the state government to commence a redevelopment of the city centre and check the excesses of miscreants popularly called area boys. Their plea initially fell on deaf ears until the government flagged off the present renewal effort.
Second Vice President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Osita Okoli said
the situation is now changing and property values are going up again.He was answering a question on whether the menace of the street urchins will not jeopardize the current renewal efforts and what impact the redevelopment will have on property values. Hear him:
“Most definitely, properties will appreciate. To start with, the major reason why properties depreciated in Lagos Island wasn’t because of the human factor; it wasn’t because of activities of area boys and their menacing impact on the society; It was because the area was blighted. The streets were almost impassable due to many street sellers.''" So, I am confident that upon the conclusion of the renewal efforts being undertaken by the Lagos State government in providing roads, drainages and such other infrastructure, Lagos Island will be given a rebirth. Property values are in fact already on the upward swing. Rentals in this property have increased and I expect that rentals will increase on other properties as well.'' " It is just a matter of management. The current construction of roads and drains will enhance the management of such people because if the law enforcement agents are trying to track or chase them, it would be easier to get them when the roads are passable than when they are impassable''.
Is there a glut of vacant properties in Lagos Island? This was the question VF put to Mr. Okoli and he responded thus:
''To the best of my knowledge, there are still some fallow buildings, but they are being snapped up. But I can tell you that as the development progresses and people begin to see the impact the development is making, many of the banks and financial institutions that have moved to Victoria Island may reconsider and come back to Lagos Island because Lagos Island will be easier to access. It is nearer to the mainland; it is more central and traffic would be easier to manage. In fact, Lagos Island has a more beautiful view. Look at the lagoon just there. I can tell you, Lagos Island is coming back to life”.The state governmentLagos State Government at the weekend assured that the ongoing facelift of roads which is the first stage of the government’s redevelopment programme of the
Central Business District (CBD) in Lagos Island is expected to be completed in the next two months.
The second stage which is the construction of shopping malls with entertainment complexes and more office towers is also expected to commence immediately.Speaking to our correspondent, the Lagos State Commissioner for Physical Planning and Urban Development, Mr. Francisco Abosede said the completion period for the road work which commenced in October 2005, was 18 months which is supposed to come to an end in April this year.
The Commissioner who said street traders in the CBD will be moved out to allow for free flow of traffic on the upgraded roads, also noted that the state government has plans to engage the touts popularly known as
Area Boys in the area in order to get rid of area boys’ activities in the Island,
explaining that the government will train them in different kinds of craft works so that they can become useful to themselves and their society. He noted that the government already has a centre for the training of area boys to artisans. :lol:
Explaining that the economic potentials of the
CBD will be further boosted with more investors coming to the area after the completion of the redevelopment programme of the Island, he said the companies that left the area because of its previous deplorable condition have started returning to the CBD because
“they are seeing things happening in the area” Abosede noted.
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FG Mobilises for Made-in-Nigeria SatelliteFrom Onyebuchi Ezigbo in Abuja, 03.13.2007The Federal Government yesterday assembled the cream of the country's engineering community and space technology researchers in Abuja to brainstorm on how to develop local capacity in the design, manufacture and launch of a space satellite within the shortest possible time.The event, which was organised by the National Space Research and Development Agency (NASRDA) and the Ministry of Science and Technology, brought together
distinguished university scholars, Nigerians in Diaspora and private consultants to work out modalities for the actualisation of the country's dream of a wholly Nigerian-built space satellite by 2018.Minister of Science and Technology, Professor Turner Isoun who was represented by the Director of Agriculture and Natural Resources, Mr. A. Adejumo said government's heavy investment in space satellite technology clearly demonstrates its commitment to the development of space technology and subsequent application to hasten our socio-economic progress.
He said government's interest was emboldened by the success story of the first satellite,
NigeriaSat-1 which has since its launch in 2003 contributed immensely to national development.
President Olusegun Obasanjo had while unveiling the country's space technology road map directed that
NASRDA should work towards grooming Nigerians to become
space astronauts in the next 15 years.Nigeria launched its first satellite,
NigeriaSat-1, an earth-observation satellite in 2003, and is currently engaged in the execution of two other satellite projects,
NigeriaSat-2 and Nigeria communications satellite -
NigcomSat.
However, all of these efforts are being carried out outside the shores of the country under a foreign technical assistance programme with China.
Isoun said acquiring satellite technology is of great strategic importance to any country, adding it is for this reason that the government has taken up the challenge to mobilise our human capital to acquire and sustain the space technology.
Speaking at the research workshop,
NASRDA Director-General, Professor Robert Boroffice said the objective of the national space technology programme is to make space research and development activities part of the overall strategies for sustainable development.
He said the purpose of the workshop was to explore areas of research collaboration with Nigerian universities to develop local expertise for the development of a satellite locally
in line with the presidential charge of having a manned mission on the moon by 2025.NIGERIA 'ON COURSE' FOR 10,000 MW POWER IN 2007Quote:The Minister of State for Energy, Ahmed Abdulhamid, has disclosed that efforts were being intensified to ensure that the Paplanto and Omotosho 335MW power stations in Ogun and Ondo states respectively came on stream by April 2007, while adding another 670MW to the national grid.
The Minister made this known while addressing the Press after an inspection tour of the two power stations last week.
He assured that
“We are doing everything possible to monitor the activities of the contractors in order to fast-track the process. Also the 10,000MW target for 2007 is on course”.He expressed regrets that vandalizing gas pipelines and transmission lines posed a great threat to the stable supply of electricity in the country and then called on all Nigerians to wage a total war against those perceived enemies of progress, while equally urging Nigerians to conserve energy by switching off appliances when not needed.
On the recent interconnection power project of 80MW between Nigeria and the Republic of Benin, he explained that it was part of a sub-regional cooperation Agreement aimed at power sufficiency within the sub-region under the West African Power Pool (WAPP).
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NEPC launches Nigeria into global outsourcing industry, targets $10 billion per annum. By Franklin AlliPosted to the Web: Thursday, March 15, 2007
The Special Adviser to the President/CEO Nigerian Export Promotion Council (NEPC), Mrs. Modupe Sasore, said the Council has created a platform that will enable the country to net $10 billion (about N1.3 trillion ) as revenue annually, from the global
Information Technology Business Process Outsourcing (IT BPO).The global outsourcing Industry is estimated to be worth $150-310 billion, generating over 400,000 jobs.
Sasore said the Council is executing the project through Hudson Consulting Group USA, and Tathya Dot Com India who has an outsourcing company with offices in the United States and India, to outsource to Nigeria through a newly established Nigerian company named Business Outsourcing Solution and Services (BOSS Nigeria).
BPO is the contracting firm of some specific business tasks such as a call centre to a third -party, a service provider, while the company focuses on its core business. The outfit requires the software, the process management and the staff to operate the service.
It depends on Information Technology, hence it is referred to as IT BPO. Comparative analysis showed that while South Africa has a vibrant BPO industry with 80,000 staff and 70 companies offering services, and wants to boost this by creating another 100,000 jobs in this sector over the next five years, India, USA controls 59 per cent of the market, Europe 27 per cent, India who netted 36 billion revenues from the sector in 2006, control 5-6 per cent share of the total BPO industry. Philippines, and China have also emerged to take a share of the market.
Describing the sector as very lucrative, Sasore, said “Indeed, the potential of a thriving outsourcing industry in Nigeria is very possible particularly with the recent launching of the Outsourcing initiative by the Federal Government. This will go a long way in kick-starting the growth in the non-oil sector of the economy,” she remarked.
The country, she pointed out, has
abundant skilled human capital in IT and Internet Service knowledge that can be easily harnessed to deliver outstanding service export, stressing that the timing of the launching of the outsourcing initiative is most apt since it constitutes the basic ingredient that could and should ginger the entrepreneurial spirit of Nigerians both at home and abroad as well as attracting the much needed foreign direct investment in the IT sub-sector.
Nigeria, she affirmed, is actually better positioned in terms of cultural fit, adaptability, spoken English as well as potential cost savings for customers.
“It was in our attempt to take advantage of this opportunity that culminated in the launching of this project aimed at facilitating the creation of the business process outsourcing industry in Nigeria.
The objective of the project is to among other things, develop a strategy and implementation plan that will enable Nigeria establish a new export product in the area of flourishing IT outsourcing, thereby making Nigeria an outsourcing destination for IT BPO in Africa.''
It is also intended at diversifying the non-oil sub-sector of the Nigerian economy by developing and promoting another product for export.
''The short and long term goal of the project is to create more jobs and earn foreign exchange for Nigeria.” she said.
Also speaking , Executive Vice President, Hudson Consulting Group USA, Mr. Tom Iseghohi, who said the sector demands: First world infrastructure, international connectivity, sophiscated financial services industry, international finance, legal and security compliance and cultural affinity of agents, including time zone affinity to Europe and multilingual staff and leadership and work ethics, said BOSS Nigeria has met all these requirements and is ready to begin business May 2007.
BOSS Nigeria is already registered with Corporate Affairs Commission, has secured three 78 million dollars contract, which will be executed in the next five years.
He also foresees the possibility of the company to be quoted on the Nigeria stock Exchange (NSE), after 18 months in operation.
FG awards $3.5 billion contract to ease power failureMarch 20th, 2007A N445-billion ($3.46-billion) contract has been awarded for the construction of the
Mambilla hydro power project to improve power supply in the country.
EJIOFOR ALIKE Edmund Daukoru, minister of energy, said this yesterday in Lagos at the 2007 oil and gas seminar organised by the Institute of Directors of Nigeria.
Daukoru said the contract for Lot 1 of the project, which would cost N187.6-billion ($1.46-billion), had been awarded to
a Chinese firm, while an additional N257-billion ($2-billion) would be required for the completion of the project.
The minister, who was represented by Jafaru ****, special adviser to the president on petroleum resources, said the Lot 1, which covered civil works and hydraulic steel structures, would be completed in
64 months.The energy boss said the hydro-electric power project would generate
2,600 megawatts of electricity when completed.
The minister said the Federal Government had spent over N771-billion
($6-billion) on power plants, while N45.8-billion had been expended on rural electrification from 1999 to date with N23.3-billion earmarked for rural electrification agency in 2007.
He said 1,946 rural electrification projects were continuing, with 836 communities already covered, adding that 445 projects would be completed before May this year.
The equipment for the construction of the power plants at Gbarain, Egbema, Sapele, Ihovbor and Calabar have been discharged at Onne and Calabar ports.
According to him, N81-billion has been invested in the distribution of electricity, with the construction of 1,701 kilometres of new 33kv lines; 2,666km of new 11kv lines; 3,540 MVA new sub-station capacity, and 22, 598 new transformers.
He maintained that the over 250 contracts being executed in more than 600 project sites had provided employment to 100,000 people, adding that the power projects had created jobs in the Niger-Delta area.
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Nigeria to Earn $10bn Annually from Gas Projects – KupolokunFrom Chika Amanze-Nwachuku and Onyebuchi Ezigbo in Abuja, 03.21.2007
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Funsho Kupolokun yesterday disclosed that Nigeria would earn well over $10 billion annually when the various gas projects embarked upon would have come on stream.
Speaking at the opening of the 2007 Offshore West Africa oil and gas conference holding in Abuja, Kupolokun said, the gas sector has recorded tremendous successes such that from a mere 197mmcf per day in 1999, the country has moved to 5billion mmcf with a projection of about 20bn cfpd by 2010.
He stated that the first phase of the West African Gas Project, which was aimed at supplying natural gas to Republics of Benin, Togo, and Ghana, has been completed and would be commissioned in the first week of April by President Olusegun Obasanjo.
"The project holds a capacity of 200million standard cubic feet per day with a potential of 500million scfd that would supply natural gas to Benin , Togo , and Ghana" .
The NNPC boss also disclosed that the corporation is to spend between $10 and $11bn on counterpart funding for annual oil and gas investments estimated at about $29.4bn, adding that it would amount to double of its current level of $5.5 billion.
Production has grown from 1.2million barrels per day in 1992 to 3million bpd under the current dispensation, representing a growth of four per cent per annum, he said.
"Here we are talking of an explosion, the domestic gas sector in 1993, we were talking of 324mmcf and by 1999 when this administration came, it dropped down to 197mmcf per day. But since the inception of the civillian administration, the volume has risen to 5 billion standard cubic feet per day. The growth is
such that by 2010 - 2011, we should be talking about
20 billion mmcf per day", he said.
According to him, the prospect for increased gas pricing in
Europe and America is driving up demand for LNG
products from Nigeria while the unprecedented
development in the country's power sector is another
source of improved earnings from gas.
The GMD who alluded the rising profile of gas in the
country's economy to the various strategic
transformations spear-headed by government, said even
the gas industry appeared to have been taken unawares
by the fast growth in demand for gas.
Kupolokun listed some the gas projects expected to
deliver enormous revenue to the country to include,
Nigeria Liquefied Natural Gas, Olokola Liquefied
Natural Gas, West African Gas Pipeline, Escravos Gas
to Liquid project and Trans Saharan Gas Pipeline.The NNPC boss said the Final Investment Decision on
the
Brass LNG will be taken by first week of April,
while that of
OKLNG will come up before the end the
year.
The GMD noted that tremendous successes have been recorded in various deep water projects like; Usan, Agbami and Apo, saying by the time these projects would come on stream, the country's new targets of 4.5million bpd and 40billion barrels reserve would have been more than achieved, even as it is producing about 2.4million bpd of its installed capacity of 3million bpd.
Kupolokun however lauded the
Local Content Policy of the federal government, stating that the bill is currently before the National Assembly.
Speaking on the effort of the company to
bridge the expected funding gap for joint venture
projects, he said, NNPC has successfully initiated a
stable funding structure that would enable the
organisation fill the gap of about $5bn by next year.
He disclosed that the company is about launching a major
initiative aimed ensuring a stable funding structure
to take care of the shortfall from government's
contribution to the running of the JV operations in
the oil and gas industry.
Although, he did not give further details on the
nature of the fund, Kupolokun said the arrangement
will see NNPC creating a window for ready source of
funds for its JV activities.
Starcomms introduces 'Pay as you surf' to Nigeria.
Internet use and data downloading has become a lot easier as Starcomms Limited, one of Nigeria's largest CDMA 3G Mobile networks, has delivered on its promise to empower Nigerians through consistent provision of customized and innovative telecommunication solutions.
The company introduced a new service known as 'Pay As You Surf' which provides subscribers a more flexible and unlimited access to the internet in a most price-friendly manner.
The customer just loads a normal recharge card to browse and will be billed on per minute basis. That means that the subscriber will only pay for the time he/she connected to the net. The new service requires the purchase of a data pack which contains the connecting cable, CD and information describing how the subscriber will activate the service in any Starcomms' CDMA internet-compliant handset and computer.
This service will cost a nominal N1,000 one-off activation fee payment. With options of N7.40 per minute during peak time and N5.00 per minute during off-peak, the customer surfs at his/her convenience and pays for the exact usage. There are no monthly subscriptions, but the subscriber enjoys unlimited access as long as there is sufficient credit in his account.
To activate the service, all the subscriber needs to do is visit any Starcomms shop, request for Pay As You Surf data service, fill a data subscription form, pay N1,000 activation fee and the service is activated within 24 hours after completing the request.
Mobiles and fixed wireless phone users all top up their Data PAYS Account with a normal recharge card, while for first time activation, the subscriber has to access the IVR dialing *999*. All subsequent recharges can be done by simply following the instructions behind the Starcomms recharge card.
In addition, a
Pay As You Surf subscriber can share the same credit account for voice and data. The subscriber can surf the internet or make voice calls as long as there is sufficient credit in the account, and the subscriber can keep using the service by simply topping the account when low by loading a recharge card.
Starcomms' Commercial Director, Mr. Prakash Pantham, who confirmed the development, said it was borne out of the need to give subscribers different options on accessing the internet, adding that it is a demonstration of the firm's expertise in maximizing new technologies to meet customers' needs.
"It is the endeavour of the company to constantly innovate and introduce services and products to cater to each segment of the market. This innovative service will bring the internet much closer to the common man, allowing easy and affordable access to the world-wide web".He added that the new service, one of many to be introduced, is in partial fulfillment of Starcomms' promise to build a solid network for voice and data to cater for the needs of its existing and potential subscribers.
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FG to Build Satellite Centre in Abuja From Onyebuchi Ezigbo in Abuja, 03.23.2007The Federal Government yesterday said it had granted approval for the construction of
two satellite development centres to be located in Abuja, the Federal Capital Territory. The centres to be known as
Satellite Design Centre (SDC) and
Satellite Assembly, Integration and Test Centre (AITC) are to provide a
critical infrastructure base for training Nigerian space engineers and scientists and to groom them for the task of building satellites in the country.
The Director-General of the National Space Research and Development Agency, Professor Robert Ajayi Boroffice, who disclosed this at the opening a one-day space science workshop for the media in Abuja, said President Olusegun Obasanjo has given the go-ahead for the establishment of a satellite development centre
to enable Nigerian engineers design, build, launch and manage our satellites in orbit.Against the background of the renewed impetus being given to space technology, government said it has completed the building of Nigerian Communication satellite and would launch it by May 12.
Borofiice said in furtherance of the country's aspiration to develop an in-country capacity in the field of space technology, a Nigerian-built satellite would be launched in 2009 along with the NigeriaSat-2.He said the construction of the Nigerian satellite is being undertaken by 25 Nigerian engineers presently on a government sponsored study in Surrey in the United Kingdom.
NASRDA D-G also said the construction of the agency's
permanent site had been completed and would be
commissioned next month ahead of the launching of
the communication satellite.
Minister of Science and Technology, Professor Turner
Isoun, while declaring the workshop open said the
launching of the communication satellite has been
fixed for May 12.
He said the satellite device has already commenced its journey to the site where the eventual launch into orbit will be performed in the Chinese city of Siyan. The Minister said ahead of the formal launch, the communication satellite has already transmitted well
over 2000 images to its ground base in Abuja.
Isoun said the facility is equipped with 26 transponders to aid communication anywhere in Africa.
"The satellite is also positioned to provide comprehensive transmission services via digital or analogue system, operate same
by either fixed or mobile satellite, direct broadcast satellite services, end-to-end solution and engage in transponder leasing.", he said.
The building of the communication satellite project, supported by a $200m credit facility from EXIM Bank of China will provide a wide range of innovative solutions to challenges facing communication
networking in Nigeria and the African continent.
Boroffice said the cost of the design and manufacture of the country's first ever communication satellite, NIGCOMSAT-1 is $450 million.
He said the cost estimate includes that of manufacturing the satellite equipment, building of the ground station and sponsoring staff training.
The D-G said the advent of a wholly owned satellite facility by an African nation has put an end to the continent's dependence on outsiders for its needs.
Borofice said shortly after the launching of the facility, it would be handed over to be managed by a commercial entity known as NIGCOMSAT Nigeria Limited which will undertake marketing and selling of bandwidths and other services of the satellite.
The D-G said NASRDA is currently engaged in some pilot service delivery effort to institutions including the University of Abuja where it using its facility to link the institution's study centre to the main campus in Gwagwalada and assisting the Federal Ministry of Health to be in touch with its Primary health centres via satellite.
He said the agency is also planning to link the University of Maiduguri Teaching Hospital, and that of University of Ibadan to some health clinic centre in the remote villages to enable them attend to patients through video conferencing.
Sudanese company, El-RASID Electronic Trading Company
limited yesterday became the first African entity to
buy into the satellite project,
staking $200m as
equity holding on the facility.
The Dubai-based firm also put down $50m as advance
payment to purchase 10 out of the forty transponders
offered by the communication payload.
Cooking Gas: FG Targets 1m Tonnes By 2010 From Juliana Taiwo in Abuja, 03.27.2007The Federal Government yesterday unveiled a strategy for raising LPG (cooking gas) from the present 60,000 tonnes annual consumption to one million tonnes by 2010.
This was contained in the final report on the Nigerian LPG Sector Policy and Regulatory Framework Project carried out by a US Consulting Firm, Nexant Incorporated submitted to the Minister of Energy, Edmund Dakorou.
The report also estimated that as part of the measures to popularise the use of cooking gas in the country and reduce cost of the product, the Federal Government intends to promote the
local manufacture of five million cylinders between 2007 and 2015.Presenting the report on behalf of the consulting firm, its Vice President, Bruce F. Burke said the sector when properly harnessed is capable of creating more than 85,000 new jobs.
He said the study covered areas like supply, gas cylinder, safety measures, manufacturing capacities, key issues of affordability of cylinders and the cooking gas itself.
Part of the challenges facing the use of cooking gas is lack of availability, high cost and safety concerns. This has led to gradual decline in its ulitilisation by Nigerians who now go for other alternatives like fire wood, kerosene and other energy sources.
Commenting on the employment opportunities offered by the sector, Burke said to increase the use of LPG significantly, there is the need to invest in facilities along the entire supply chain from the new terminal storage, to distribution facilities, to the refineries.
“This is because to get the LPG from the facility to the end users the only way is through trucks. So you need a lot more trucks, drivers, supporters and we have done the analysis''.
''To get to one million tonnes per year of LPG consumption is a tremendous increase which requires new facilities and we have estimated the number of new jobs associated with that”.
He said from the study the current consumption rate is between 50,000 to 60,000 metric tonnes per annum, which he said is very small.
On the investment required by the sector to fully achieve government’s aspiration, he said $50 million to $100 million investment will be needed to be able to get five to six million cylinders between now and 2015.
The Manager, Energy of Nexant, Dr. Larry Song, said the funding for the manufacturing of the six million cylinders will come from the government, banks and the private sector.
The Minister of Energy, Dr. Edmond Daukoru, while accepting the report recalled that President Olusegun Obasanjo had in 2004 granted the allocation to the domestic market of 300,000 metric tonnes of LPG from NNPC/ExxonMobil production plant, that was earmarked for export.
He said it was meant to be a relief measure to the domestic market since the refineries that were the sole source of LPG in the country where shut down.
He said the arrangement collapsed after few months’ operation on the granted allocation due primarily to logistics problems. He stressed that government has however continued the waiver of import duty on imported LPG on annual basis in order to make the product available at an affordable price.
Daukoru said following government’s deep concern over the low level of LPG consumption in the country, it has in recent times pay more attention to the establishment of more coastal LPG depots in the country.
He said government in 2006, granted the waiver on import duty and vat on imported facilities and equipments for the establishment of a coastal depot in Lagos in order to revitalize the consumption of LPG in the country.
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Panasonic to build assembly plant in NigeriaElectronics manufacturing gaint,
Panasonic Incorporated has unveiled plans to establish an assembly plant in the country to take advantage of the growing market for its products in Nigeria.
The company which said it had secured 50 per cent of the Nigerian air conditioner market assured that based on the strength of its market in the country, it would work towards the setting up of an assembly plant in the country to take advantage of the Nigeria’s large population.
Speaking at the inauguration of Panasonic’s air conditioner parts and service centre in Abuja, the Marketing Manager, Panasonic Lagos Service Centre, Mr Haresh Ram, said the parent company was happy with the performance of the Nigerian business, hence the consideration to set up an assembly plant.
He explained that the assembly plant is part of the company's long-term business development plan aimed at harnessing markets in Africa.
According to him, the new service centre would offer after sales services to their customers, adding that the company was not only interested in selling its products but will also ensure that customers enjoy other services such as the repair of their products in case of damage.
He explained that the Abuja Panasonic Service Centre was the company’s second customer care outlet in the country in a little over one year, after the Lagos centre.
He said the company believed that doing business in Abuja would be as rewarding as the Lagos arm, adding that plans were underway to establish other centres in major cities in Nigeria to provide assistance to their customers.
He said,
“For Panasonic Nigeria, we are very satisfied with the level of business we have had from our after sales service activities in Lagos. We don’t know about Abuja. We are just starting today in Abuja. So, let us hope that it is going to be encouraging for us as it has been in Lagos.”In his address, the Managing Director, Binar Traders, Japan, Mr. Bhojraj Rupani, hinted that Panasonic intends to make a wider array of its advanced products and services to customers in Nigeria.
Such service, Rupani said, included Japanese electronic products, employment opportunities and a transfer of high technology to the Nigerian people.
Federal Ministry of Education Partners CISCO to Train 20,000 Graduates From Josephine Lohor in Abuja, 04.05.2007The Federal Ministry of Education and global software company, CISCO, have concluded arrangements to strengthen the skills of
20,000 Nigerian graduates towards making them employable.
Under the arrangement that was approved by the Federal Executive Council (FEC) yesterday, Cisco that will take N3.7 billion or 84 per cent of the total cost of N4.3 billion while the Federal Government will take the remaining N684 million or 16 per cent.
The Minister of Education, Mrs. Obiageli Ezekwesili, who stated this while briefing State House Correspondents after the weekly FEC, said that the number of Nigerians billed for the training was arrived at after an online survey of graduates from tertiary institutions over a 10-year period during which 29,000 graduates responded.
While describing what she termed as the unfortunate “warehousing syndrome of Nigerian graduates”, she added that out of the 29,000 respondents, over 60 per cent were found to be unemployed and underemployed.
The Minister of Education who said that a lot of countries have relied on CISCO to train their graduates, stated that “in our own case, we found out that when people talk about the new economy they refer to knowledge economy. One of the things that happen in knowledge economy is that sectors are now upgrading their knowledge base, whether it is the oil and gas or the communications sectors. It is all about capability and the capacity that you have in ICT.
So in reskilling our glut of graduates towards employability, we needed to take them through a transformation and that transformation is coming in the form of partnership between the Federal Ministry of Education and CISCO”.
Giving insight into the cost implication of the partnership between the Federal Gove-rnment and CISCO, Ezekwesili stated that “this would have been costing a significant amount if we had decided to fund it alone.
But under the partnership, CISCO will take 84 per cent of the cost and the Federal Government will take 16 per cent. For a programme that would be costing N4.3 billion, CISCO will absorb N3.7 billion and the Federal Government will be contributing N684 billion.
At the end of the exercise which will span 6 months, 12 months and 15 months certification, you can be certain that a good number of those graduates will be transformed”.
She added that “CISCO, basically is a global company known for networking and has been running CISCO Academy all over the world. Currently, there are 10,000 of such academies around the world. They do it as part of their social and corporate responsibility.
They require the country concerned to contribute into the training.
We have entered into a strategic partnership with CISCO in which CISCO and Federal Ministry of Education will take 20, 000 of the 29,000 graduates surveyed. These graduates have clearly shown that they are going nowhere and CISCO is going to run an IT re-certification Programme which is of international academic standard. Many people who have gone through this programme go oon the internet and get jobs. So it is universal certification”.
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Nigeria Exits London Club Debt Daily Trust (Abuja)April 6, 2007
Nigeria has paid off its London Club Debt, Finance Minister, Mrs. Esther Nenadi Usman, said yesterday. However, details of the country's outstanding external debt stock remains at about $ 3bn yesterday.
President Olusegun Obasanjo ordered the clearing of all the country's debt before leaving office in May this year, she said.
Speaking at a press briefing on the London Club debt exit in Abuja, the minister said the process of clearing the debt was successful:
"Future generations of Nigerians will not be shackled by debt."But Nigeria's oil warrants have not been cleared by this administration, the minister said.
She said we were able to retire about 31.4 percent of the total oil warrants tendered, amounting to 369,154, at the repurchase price of about $82 million. This indicated about 70 percent of the oil warrants were uncleared.
But the minister said: "Even though we have not been able to clear the entire stock, the overall result in respect of the London Club debt exit process is excellent".
"It should also be stressed that the oil warrants themselves have no principal value. They constitute liabilities only when oil prices rise above certain level. So it may well be that our liabilities will be further reduced if oil prices fall", said Nenadi.
Mrs Usman said:
"With the conclusion of this London Club debt exit process, several benefits will accrue to Nigeria including; financial savings from interest payments; cleaning up of our balance sheet; improving the country's economic profile; and removing the legacy of these debts including negative image associated with them as well as the onerous legal terms which included waiving our sovereign immunity.
The debt exit will also improve investment climate and facilitate the inflow of Foreign Direct Investment".Duke Commissions Calabar Ultra Modern Shopping Mall(27/2/2007)In his bid to rapidly urbanize the state capital through the provision of modern facilities, Governor Donald Duke of Cross River State has commissioned an ultra modern shopping mall in Calabar the State Capital.
Speaking at the ceremony, Duke contended that now that the state is emerging as the preferred tourists’ destination in the country, he would ensure that all a modern city requires is provided to make the city attractive to visitors.
He said that government while providing the facilities has not lost sight of environmental impact and would ensure that best environmental practices obtainable globally are adhered to in aesthetically positioning the state.
The Governor however lamented the slow implementation of Federal Government initiated Small Scale and Medium Enterprise (SME) fund which he attributed to lack of shopping outlets to display finished goods by the beneficiaries, adding that
the shopping mall which he contemplates would be replicated in every community in the city to provide such opportunities for them to showcase their produce and enhance their living standards.
He maintained that given the facilities provided at the mall, visitors to the shop would fine shopping comfortable, pleasurable and leisurable.
Duke stressed that government had since last year decided to embark on the renovation of Watt Market through the provision of modern facilities in and around the market to standardize the market and expressed the hope that residence of the area would take advantage of the mall and utilize its services.
The Commissioner for Lands and Housing, Mr. Bassey Eyo Ndem in his remark stated that the Big Qua Shopping Mall which is managed by a private firm covers a land area of about 29 x 30 square metres.
He said the idea behind the project was to raise enhanced shopping experience to both residence and tourists, adding that the allocation which is on first come, first serve basis is still in progress to interested members of the public.
Courtesy of Government House Press
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DISNEY-STYLE AMUSEMENT PARK OPENS IN ABUJA2/2/2007
From Dele Anofi
Holiday makers, old and young need not look beyond our shores as a sprawling world-class amusement park is set to change the skyline and the architectural background of Abuja and provide the people of the Federal Capital Territory (FCT) and its environs quality leisure time.
Wonderland Amusement Park and Resort Centre, the brainchild of Abuja- based Lebanese entrepreneur Fawzy Fawaz, is situated on 400,000 square meters expanse of land and strategically positioned between the National Stadium, Ministry of Finance quarters and the National Hospital.
The amusement park, is of international standard in both concept and design with technical input from the International Amusement Parks Association based in the United States of America (USA).
The park, which is due for commissioning soon is already generating lots of interests in the city because of the eye-popping facilities that adorn the complex.
Right from the beautifully designed road leading to the gate of the park, a visitor’s heartbeat is bound to quicken with the kinds of feelings the whole environment exudes.
The kind of service and experience that awaits a visitor to the park is impressed on the consciousness of the visitor from the entrance, where a striking structure called the Wonderland castle stands majestically and at the same time menacingly, taking the visitor to the ancient times of 16th century Egypt.
The arcades are stuffed with all kinds of video and other computerised games while several weird-looking and fast moving train and ship rides including crazy clowns are sites to hold any visitor spellbound for hours.
Adults who may want to have fun on the fast lane can do so on "the flying tower".
The spacious amusement park routes were paved and carefully landscaped also well equipped with the latest security apparatus, health and communication facilities .
FG to spend $5 billion in 3 years on education — Minister By Emmanuel Edukugho
Tuesday, April 24, 2007 LAGOS—THE Federal Government has set aside N600b ($5 billion) as presidential intervention fund for education in the next three years, Education Minister, Mrs Obiageli Ezekwesili said in Lagos yesterday at the opening of a workshop on Tertiary Education Financing at the University of Lagos.
Vice Chancellors, rectors, provosts from universities, Polytechnics and Colleges of Education from across the country are attending the 2-day workshop. She said that 43% of the N600b will be for direct intervention at the tertiary level.
According to her:
“Just as the power sector is getting a new deal, the education sector also gets a new deal.” Ezekwesili added that another N1 billion competitive research grant has been provided to be disbursed from May, 2007 to enable Nigerian lecturers get funding for research and
“build the broken walls that used to be citadels of knowledge.”According to her,
every lecturer will be given a laptop to be paid for by government jointly with the lecturers themselves in instalments to facilitate acquisition and usage of Information Communication Technology (ICT) which will become compulsory.,
$700 million Refinery in Anambra to reduce fuel scarcity Tuesday, Apr 24, 2007Managing Director of
Orient Petroleum Resources Nnaemeka Nwawka says a refinery to be built by the company will reduce fuel scarcity.
Giving a situation report on the project at a session with Anambra state executive council today in Awka, Nwawka said that construction of the refinery would gulp $660 million.
When completed, he said that the refinery would create employment, provide a stable social system and fast track development of infrastructure in Anambra.To ensure peaceful co-existence with host communities, he said that town unions and youth organisations in host communities would be involved in the execution of the project.
At the session, Gov. Peter Obi of Anambra said that the state government was taking steps to establish levels of commitment towards the project.
It was learnt that the proposed refinery would be located at Otuocha in Anambra East local government.
It would be executed in partnership with
a Chinese firm that would bankroll 85 per cent of the cost of the project.
The proposed refinery would have an airstrip, staff quarters and a subsidiary firm that treats waste products.
FG Provides $1.2 billion for Textile Sector From Kunle Aderinokun in Abuja, 04.27.2007Determined to revive the comatose textile industry, Federal Government announced yesterday that it has approved a new N80 billion fund for on lending to the operators and farmers. This is addition to the N50 billion earlier approved by the Federal Government for the sam
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