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ENGR. OTIS ANYAEJI HAS PLAYED MANY PARTS IN THE DEVELOPMENT OF ENGINEERING IN NIGERIA, NOW HE IS PLAYING A NEW ROLE AS THE PRESIDENT OF NIGERIAN SOCIETY OF ENGINEERS

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4 | CED Magazine June 2014

Century 21 www.cedmagazineng.com Systems Comm. Ltd.

and ambitious industry upstart.

Rev. Engr. Etteh and wife

anniversary. Some of the works of Engr (Rev) Etteh, spanning over 5 decades of Engineering practice, including his first bridge assignment in 1965, will be on display at the venue. Everyone he has come in contact with in one way or another are set to show love to a man in whom they are well pleased and have entrusted their present and their future. They are set to appreciate the impact he has made in their lives.

However, being a self-starter like Etteh is harder than it looks. Some nights are great; others, you feel like you are up to your neck in quicksand but Etteh's tenacity and capacity for soaking up pressure and transcending it, remains an inspiration to many of his colleagues. Ardently inured to the essence of good leadership, apart from encouraging and producing some of the best engineers in Nigeria, Etteh encourages both his contemporaries and underlings to develop the courage to tow the path of justice and morality and do what is right even when it is unpopular. He possesses the enviable skill to bring people of differing viewpoints together to get things done.

And by those measures, he became a very efficient manager and gentleman with sterling qualities. Not the one to capitulate or yield to the odds however daunting they become, early in his life, he braved the odds, and faced his fears and the odds head-on in his determined march for success. Having communed with his inner man, he sought divine guidance as he hacked his way through the world's wilderness of vicissitudes and uncertainty to become the man he is today. At any rate, his ascension to the top wasn't totally inured to temptation and self-doubt. For instance, he decided to ignore the temptation to travel abroad in search of greener pasture and focused on his self-development as a man 50 | www.cedmagazineng.com January 2016

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STATE OF THE NATION OIL TAKES THE BACK SEAT President Mohamadu Buhari presented the2016 Budget to the National Assembly in December 2015 with a higher dependance on the non-oil sector to fund the budget. This is a departure and possibly a new Nigeria unfolding.

The Solid Minerals sector, the power, works and housing, the transportation sector are in focus in this all important feature

Quess Muraina Aderemi K. FNIQS, MRICS, RQS Principal Partner

CED PROPERTY www.cedmagazineng.com Janaury 2016 | 3

GLOBAL AFFAIRS

?

Engr. (Rev)

ETTE IKPONG IKPONG

ETTEH, OFR @ 80 A social commentator, Dele Agekameh extols the virtues of an engineer, 'thorough -bred professional' and a man of God, Rev. Ette I. I. Etteh, who clocks 80 today.

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BRAND GROWTH/ Afamefuna Odusola-Stevenson

ignity depicts him like some contemporary Caesar, but Engr. (Rev) Ette Ikpong Ikpong Etteh, OFR, transcends the guile and chicanery that claimed the fabled Greek hero in his lifetime. He is in totality, a mortal husk of humaneness and grace. The story of Ikpong Etteh's life is the stuff gallant dreams are made of, no doubt. In utter deference to his extraordinariness as an engineer, builder of men, genius, philanthropist and citizen of humanity, free verses and ornamental rhymes would simply not do to eulogize the man who lifted himself by the bootstraps to ascend the pinnacle of distinction.

Timeless anecdotes seep from his being

Engr. Ette Etteh 4 | www.cedmagazineng.com Janaury 2016

like whirlwinds writing on the grass and inscriptions teaching us that everything and anything about the Co-Principal Partner in the firm of Etteh Aro & Partners, Ibadan, Oyo State, offer priceless lessons in modesty, resilience and grace. Thus as he clocks 80 today, December 16, 2015, significant segments of Nigeria's highsociety, comprising socio-economic and political titans, indeed, have justifiable cause to celebrate and rejoice with one of their own.

Etteh presents an exception to the norm of the privileged class' detachment and arrogance. He is unpretentiously open, meek and never given to posturing. Very few successful men are that way. And very few successful men and shining icons of Nigeria's industry and high society are as humbled out by their own success stories as Ikpong Etteh - since, like too many of the privileged class, they want it either too much or too little. And it's that ability to be constantly modest and selfless that makes him a darling to everyone.

He has a way of daring you-which, for folks who cannot resist a bit of a challenge, intelligent dialogue and e l e c t r i f y i n g companionship, can be irresistible. Eventually, most of Etteh's acquaintances are usually left awestruck.

Yet in spite of his sterling personality, Etteh is modest to a

fault. There is no entourage at his beck and call neither does he parade gargantuan chips on his shoulders as most successful t e ch n o c r a t s a r e wo n t t o d o.

Notwithstanding, he exudes elegance and a decent modicum of self-respect which imbues his person with that proverbial poise and magnetism that is the dream of not a few of his peers and yet eludes them.

The likes of Etteh are very rare; not only in terms of the wisdom, poise and panache available to him, but the general sense of refinement and modesty that dominates every aspect of his relationship with his fellow men. His life is that of selfless service to humanity. He gives without expecting anything in return. It is in this spirit, that he virtually turned the company he co-founded to a training ground for young engineers who enjoy unlimited scholarships to advance in their career by studying mostly abroad. By this the young and upcoming engineers are encouraged to garner requisite experience and postgraduate training and pass the required professional exams and continue to work with noteworthy and professionallyendowed engineering firms. He believes in imparting knowledge and has lost count of the young engineers and others who have drank from his fountain of benevolence.

In a society in which personal talent and merit account for too little or nothing, Etteh has shown that if a man dedicates himself passionately to his work, even the most tyrannical odds and his most pitiless adversaries, will eventually bow to him. For this unique personality, as he clocks 80 today, many of his associates, friends, acquaintances and family are determined to go out of their way to ensure that the day does not pass like an ordinary day. It has to be extraordinary. No such sacrifice can ever be too much for a lovable friend, confidant, father-figure and socio-economic icon.

This is the more reason why his professional colleagues, under the aegis of the Nigerian Institution of Civil Engineers, NICE, have decided to honour this Icon of the engineering profession by instituting an Annual Distinguished Lecture Series in his name. Also on the card is a Life-time Achievers Award, probably the first of its kind. The maiden edition of the Annual Lecture holds today at the Oriental Hotel, Lekki, Lagos, with Professor Bolaji Akinyemi, former Foreign Affairs Minister as Guest Lecturer.

This maiden edition also coincides with Engr. (Rev) Etteh's 80th birthday www.cedmagazineng.com Janaury 2016 | 49

GLOBAL AFFAIRS often do in America, they will be blocked neither by racist housing laws, which have been abolished, nor by bigoted assumptions about the character of the neighbourhood. That is why the swelling, sprawling cities of the American south and west are so mixed.

A second force for integration is immigration. In Newham the churn caused by immigrants arriving and then moving to better districts has thoroughly dissolved old colour lines.

The same is true of parts of America, too. John Logan of Brown University says that whites often stay when Latinos and Asians move in to a district. After a while blacks move in too, taking advantage of the path paved by the Latinos and Asians-and whites mostly continue to stay. Logan Square, a handsome district in north Chicago with wide boulevards and big, stylish PROPERTY MARKET

houses, seems set to become such a "global neighbourhood". Its

Continued from page8

prices higher,” he held.

While higher CPI inflation would narrow disposable income, Loos expected the uptick to be modest, allowing the South African Reserve Bank to continue to raise interest rates at the modest rates seen in 2014 and 2015.

“The big deal on the macroeconomic policy stage this year is likely to be the National Budget Speech, as ratings agencies and investors look for clues as to if and how the Finance Minister will arrest the steadily rising trend in the government debt-to-gross domestic product (GDP) ratio – a key source of concern in recent years,” he commented.

For the consumer, Loos expected government’s move to narrow its fiscal deficit and slow the rise in its debt burden to drive a further rise in the effective personal tax rate.

He further expected the household sector’s tax burden relative to disposable income to rise in 2016, while housing taxes, municipal rates and utilities tariffs were also expected to continue their above-CPI inflation pace of increase.

Economic growth was, meanwhile, likely to remain under pressure, continuing on its broad multiyear slowing trend that started in 2012. “The 48 | www.cedmagazineng.com Janaury 2016

downward pressure on growth comes from South Africa’s well-documented

www.cedmagazineng.com Janaury 2016 | 5

GLOBAL AFFAIRS

NEWS UPDATE

LOOKING GOD FOR GROWTH Construction industry in Kenya posts impressive growth despite high interest rates

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he construction industry in Kenya defied high interest rates to post impressive growth, a new report by Kenya National Bureau of Statistics (KNBS) reveals.

Data released by KNBS, reveals that the sector grew by 14.1 per cent in the third quarter of 2015 compared to 8.8 per cent over a similar period in 2015.

Construction loans to the sector grew by Sh22 billion (or 28 per cent) from Sh79 billion to Sh101 billion during the year.

The KNBS says that the sector's good performance was a major driver in the overall expansion of the economy in the third quarter, with the gross domestic product growing by 5.8 per cent compared to 5.5 per cent over the same period in 2014.

Some players are saying that the industry is likely to be hit again by the high cost of borrowing this year. High interest rates could see delay in projects completion or calling off of some planned projects, all together.

A total of 1.44 million metric tonnes of cement were consumed in the three-month

period, a 10.77 per cent jump from 1.30 trillion tonnes in a similar period in 2014.

In the 10-month period through October, uptake of cement increased by 11.27 per cent to 4.74million tonnes from 4.26 million tonnes in the same period of 2014. This is a slower pace of growth compared to 15.59 per cent in a similar period last year.

Output of the key commodity, which indicates performance in the sector, rose by 10.58 per cent over the period to 5.33 million tonnes from 4.82 million tonnes produced in the first 10 months of 2014.

Highest monthly production this year was recorded in July at 570,904 tonnes, but that has since slowed to 553,929 tonnes, 556,873 tonnes and 547,509 tonnes in August, Se ptember and October, respectively.

"The quantity of cement produced decreased from 556,873 metric tonnes in September 2015 to 547,509 metric tonnes in October 2015," KNBS said in its latest Leading Economic Indicators' report.

GAINING TRACTION

Construction firm aims to boost affordable housing in Ghana

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he construction of affordable housing in Ghana is fast gaining traction after Thywill Business and Investment Consultancy Limited 6 | www.cedmagazineng.com Janaury 2016

(TBICL), a consultancy and construction company announced plans to construct affordable houses for average residents.

TBICL Chief Executive Officer

Christopher Foe says that the company aims at introducing the new technology known as Gas Concrete Technology (GCT) that ensures cheaper production cost. Currently, talks are ongoing with some of their partners from Europe who will start training its staff and hopefully roll out the prototypes after all necessary processes have been satisfied.

The materials used with the gas concrete technology require no airconditioners and are environmentallyfriendly. The materials are technically qualified having met the international standards and regulated room temperature and when it comes to weight and stamina it's capable of supporting couple of storey buildings.

Expressing his gratitude, Mr. Foe said TBICL's total quality management has in a great way undertaken the landmark projects such as the Damango - Kpassa Water Supply System, , dormitory blocks, classrooms, offices, apartments and construction of transmission works.

TBICL's has been rated the most responsive and competitive company by the Millennium Development Authority (MiDA).

Ghana is currently facing a deficit of about 1.7million housing units. However, Sammy Ameyibor, the Ghana Real Estate Development Association (GREDA) Acting Executive Director, told the GREPA that the real estate sector has been experiencing a decline, attributing the decline to high production cost, inflation rates, high tax regime and high interest rates, among others. He however, proposed the establishment of a bank for housing and strong public-private partnership, particularly with indigenous firms.

Prof Aheto, the TBICL Board chairman confirmed the company's intentions to venture into the international market.

TBICL specializes in construction, engineering human resource training and development and international trade. The company is a registered and incorporated under the Companies Code, 1963 (Act 179) on November 11, 2005. Today, it is engaged in the construction of buildings of educational facilities throughout the country, roads and other civil engineering works

becoming steadily more mixed.

Gemma Catney at the University of Liverpool has shown that every ethnic minority became less segregated between 2001 and 2011 (the two most recent British census years). Black Africans, who had been among the most clustered, are spreading out especially quickly.

Yet Britain's streets are often quite different from America's. Around West Ham football ground, in the east London borough of Newham, is a ward called Boleyn. Once largely white and

British, it is now something else entirely.

In the Ercan fish-and-chip shop, on the Barking Road, the managers complain that whites have moved to the suburbs, to be replaced by immigrants and ethnic minorities who have not developed a taste for fish fried in batter. "Only on match days you see English people a r o u n d h e r e, " s ay s o n e. T h e supermarket next door has 27 national flags above the entrance.

Ethnic Pakistanis, who may be immigrants or British-born, are now the biggest group in Boleyn. That is not saying much, though. Of the ward's 16,000 inhabitants, just 2,500 were Pakistani at the time of the 2011 census, making them 16% of the population. Most of the remainder belonged to Britain's largest ethnic groupswhite Britons (who are 13% of the population),

Indians, Bangladeshis, black Africans, black Caribbeans and white eastern Europeans. Boleyn also contains mixed-race people and members of groups that are rare in Britain as a whole, such as Filipinos and Sri Lankans.

Newham has become astonishingly diverse, as have other working-class parts of London (see map). That has shaped its politics. Newham not only lacks powerful ethnic blocks; its politics is actually anti-ethnic. In Newham's old town hall Sir Robin Wales, the mayor of the borough, talks proudly about removing ethnic newspapers from local libraries and refusing to subsidise street parties if they are designed to attract only one group. Sir Robin, who is a white Briton (specifically a Scot, and thus a rarity thereabouts), was easily reelected in 2014, winning 61% of the vote.

Perhaps Britain and America will become more segregated over time, with ghettos in new places. Perhaps many cities in countries that refuse to collect race data are quietly dividing.

Perhaps-but probably not, because the forces driving integration are both powerful and widespread.

The first is the drift of non-whites from city centres to suburbs and commuter towns. British and American suburbs are still mostly white, but less so than before. In 1990 just 47% of American Hispanics and 37% of blacks lived in suburbia; by 2010, 59% of Hispanics and 51% of blacks did. Cook County, which includes the city of Chicago, has lost 140,000 black inhabitants since 2000, while the surrounding rural and suburban counties all gained them. Whites are moving into some cities, including Chicago, though rarely as quickly as blacks are leaving.

Some old suburbs have become heavily black or Hispanic-or, in Britain, south Asian. But for the most part suburbanisation leads to mixing. Ethnic minorities who leave city centres tend to be better-off and neither need nor want to live in enclaves. If they choose to move to a newly built suburb, as they www.cedmagazineng.com Janaury 2016 | 47

NEWS UPDATE

GLOBAL AFFAIRS

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AK PARK, just outside Chicago, is known to a r c h i t e c t u r e aficionados as the home of Frank Lloyd Wright, who built some fine houses there. This small suburban village also has another distinction: it is racially mixed. In the 1970s it vigorously enforced antisegregation laws; today the "People's Republic of Oak Park", as it is sardonically known, is 64% white, 21% black and 7% Hispanic. "Oak Park stands out so much," says Maria Krysan at the University of Illinois at Chicago.

But it does not stand out quite as much as it used to.

America remains a racially divided country, and Chicago is one of its most segregated cities. The south side is almost entirely black; northern districts such as Lincoln Park are golf-ball white; a western slice is heavily Hispanic. Yet the Chicago metropolis as a whole-the city plus suburban burghs like Oak Park-is gradually blending. For several reasons, that trend is almost certainly unstoppable.

When it comes to race, appearances often deceive.

Streets can appear black or Asian when they are actually full of black or Asian shoppers who live somewhere else. Statistics are more reliable, and the best measure is known as the dissimilarity index. This reflects the proportion of people of a given race who would have to move out of their census tractan area of a few thousand inhabitants-and into another one in order to spread themselves evenly. In 1970 the black-white dissimilarity index for Chicago was above 90, meaning that more than 90% of blacks would have had to move in order to become integrated with whites. By 2000 the figure had fallen to 81. William Frey, a demographer at the Brookings Institution, a think-tank, calculates that it now stands at 76.

In 45 of 52 big American metropolises with sizeable black populations, black-white segregation 46 | www.cedmagazineng.com Janaury 2016

ENERGY

has fallen since 2000, according to Mr Frey. Southern cities, which many blacks fled in the first half of the 20th century, are now less segregated than northern ones such as Chicago and New York; sunbelt cities such as Las Vegas and Phoenix are more mixed still.

In 1980 the average black urbanite lived in a district that was 61% black. Now he or she lives in a place that is 45% black (see chart). Asians and Hispanics are neither more nor less segregated than they were, probably because two trends are cancelling each other out: as some members of those fast-growing groups move out of ethnic enclaves, they are replaced by new immigrants. Still, both groups are far more integrated than blacks: the Hispanic-white index of dissimilarity was 44 in 2010, and the Asian-white score just 40.

America is unusual, both for its obsession with race and for its superb statistics. Poor countries lack the means to collect precise data, and many rich

ones choose not to. Some, like France, are so high-minded that they hold race to be irrelevant; in others racial censuses smell uncomfortably like fascism. A few countries distinguish foreigners from natives, though, and there the trend is mostly the same as in America.

In Sweden migrants from outside Europe have become less segregated since the 1990s, calculate Bo Malmberg and others at the University of Stockholm. By one measure, desegregation is happening fastest in Malmo, a city with lots of immigrants.

In the Netherlands Sako Musterd, a geographer, calculates that foreigners have become less segregated from the native Dutch in Rotterdam. Amsterdam grew more segregated until the late 2000s, but now seems to be going the other way.

The European country that stands out is Britain. Like America, Britain collects excellent data on race and ethnicity; also like America, it is

SUSTAINABLE CITIES Smart cities will use 1.6 billion connected things in 2016

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commercial buildings, which will account for around 24% of IoT in smart cities.

In smart homes, the consumer IoT applications that are fuelling growth are smart TVs, smart set-top boxes, smart bulbs and various home automation tools such as smart thermostats, home security systems and kitchen appliances. TratzRyan said: "The growing maturity of smart home platforms through an ecosystem of home appliances, infotainment and home sensors will mean that smart home investments overtake those of commercial buildings in 2018."

Smart homes will represent 21 percent of total IoT use in smart cities in 2016, and will record the highest increase over the next five years. "Device and wireless standards will be embedded in more devices. Homes will move from being interconnected to information- and smart-enabled - an integrated services environment that will provide value to the home and the individual ambience," added Ms. Tratz-Ryan.

RACIAL SEGREGATION

artner, Inc. estimates that 1.6 billion connected things will be used by smart cities in 2016, an increase of 39 percent from 2015.

Bettina Tratz-Ryan, Research Vice President at Gatner said: "Smart commercial buildings will be the highest user of Internet of Things (IoT) until 2017, after which smart homes will take the lead with just over 1 billion connected things in 2018."

Commercial real estate benefits greatly from IoT implementation. IoT creates a unified view of facilities management as well as advanced service operations through the collection of data and insights from a multitude of sensors.

"Especially in large sites, such as industrial zones, office parks, shopping malls, airports or seaports, IoT can help reduce the cost of energy, spatial management and building maintenance by up to 30 percent," added Tratz-Ryan.

In 2016 the growth will be down to security systems and LED lighting in

THE GREAT

BE EXPECTANT

MELTING

Cities are becoming less racially segregated. For that, thank suburban sprawl, extortionate house prices and immigrants

Property, consumer markets likely to see mild rate hike in 2016 – analyst

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hile a year of hard work for property and consumerrelated sectors appears likely, given economic and household sector income growth mediocrity, there is little to suggest any more than a mild interest

rate hike in the coming 12 months, First National Bank household and property sector strategist John Loos asserts.

He added in a note this week that, while global commodity prices remained

depressed and stunted domestic export growth, it boded well for the consumer price index (CPI) inflation rate, given that the oil price remained under severe pressure.

At a macroeconomic level, therefore, the likelihood of any major CPI inflation shock at this stage appeared remote this year.

“However, there are some upward pressures on CPI inflation, which could be expected to drive it gradually higher.

These include a drought-driven food price inflation rise, as well as a rand that remains under pressure, driving import prices higher,” he held.

While higher CPI inflation would narrow disposable income, Loos expected the uptick to be modest, allowing the South African Reserve Bank to continue to raise interest rates at the modest rates seen in 2014 and 2015.

“The big deal on the macroeconomic policy stage this year is likely to be the National Budget Speech, as ratings agencies and investors look for clues as to if and how the Finance Minister will arrest the steadily rising trend in the government debt-to-gross domestic product (GDP) ratio – a key source of concern in recent years,” he commented.

For the consumer, Loos expected government’s move to narrow its fiscal deficit and slow the rise in its debt burden to drive a further rise in the effective personal tax rate.

He further expected the household sector’s tax burden relative to disposable income to rise in 2016, while housing taxes, municipal rates and utilities tariffs were also expected to continue their above-CPI inflation pace of increase.

Economic growth was, meanwhile, likely to remain under pressure, continuing on its broad multiyear slowing trend that started in 2012. “The downward pressure on growth comes from South Africa’s well-documented structural constraints, including its highly unequal skills distribution and rigid labour market, but also from weak global commodity prices and gradually rising interest rates,” said Loos.

The lagged impact of a multiyear growth slowdown could well be a decline in formal sector employment in the private sector and the result is likely to be another year of poor consumer A confidence. www.cedmagazineng.com January 2016| 7

INNOVATION

NEWS UPDATE

GOING VERTICAL Are the emerging markets obsessed with skyscrapers?

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n the past 15 years, construction in emerging markets has changed drastically with 190 new skyscrapers having been built in Dubai compared to just 23 in London.

By the end of next year there will be 800 buildings above 152m tall in China while FMG estimates the country will build enough of these huge buildings by 2025 to fill 10 cities the size of New York.

Data from the Skyscraper Center reveals Jakarta now boasts over 160 buildings taller than 100 meters and, only PROPERTY MARKET This, in turn, could lead to a key trend change towards a financially more conservative household sector, he cautioned.

However, a more conservative household sector would likely constrain the performance of the residential property market, resulting in a slowing in the average house price growth rate from 6% in 2015 to below 5% this year.

Property, consumer markets likely to see mild rate hike in 2016 – analyst While a year of hard work for property and consumer-related sectors appears likely, given economic and household sector income growth mediocrity, there is little to suggest any more than a mild interest rate hike in the coming 12 months, First National Bank household and property sector strategist John Loos 8 | www.cedmagazineng.com January 2016

last month, a deal was confirmed to build the world’s tallest tower in Saudi Arabia.

Knight Frank’s Skyscrapers 2015 report refers to skyscrapers as “the optimum means of addressing major economic and geographic challenges facing cities today”. Many cities in the emerging markets are experiencing rapid development, in terms of economic, industrial and population growth, and infrastructural improvements.

Many of the bigger cities in these developing countries - such as Jakarta, asserts.

He added in a note this week that, while global commodity prices remained depressed and s t u n t e d domestic export growth, it boded we l l f o r t h e consumer price index (CPI) inflation rate, given that the oil price remained under severe pressure.

At a macroeconomic level, therefore, the likelihood of any major CPI inflation shock at this stage appeared remote this year.

Metro Manila, Mexico City and Colombo - are experiencing rapid urbanization. This, coupled with extreme population growth, is resulting in a major gap between the supply and demand of residential real estate and commercial units.

As a result, taller buildings have to be built to keep up with demand.

Paul Philipp Hermann, cofounder and managing director of emerging markets-focused real estate platform Lamudi Global, comments: “Skyscrapers are increasingly popular in the emerging markets, not just for house-hunters looking for residential housing, but for real estate investors too.

These developments address the issue of land shortages, overcrowding, supply versus demand, and lacking business space, all in one building.”

Not only are more residents moving into these emerging markets but businesses are too. So many companies now operate worldwide and need offices in all their major locations. This rise in demand for mixed-use developments means that skyscrapers – which are perfect for this – are going up rapidly to make the best use of available space.

“However, there are some upward pressures on CPI inflation, which could be expected to drive it gradually higher.

These include a drought-driven food price inflation rise, as well as a rand that remains under pressure, driving import Continued on page 48

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Five Steps to Formalizing Forward Thinking in Your Organization

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any organizations include the Lisa Bodell phrase "forward thinking" in their core values or vision statements, but Lisa Bodell few have a formalized process for this is the practice. founder In the innovation space, forward thinking is more than a generic phrase: It and CEO of refers to organizations and the way in futurethink which they proactively look toward the and author future to identify opportunities. And of Kill the there are some specific tactics that can help companies capitalize on future trends: In the innovation space, there are In the innovation space, there some specific tactics that can help companies capitalize on future trends. are some specific tactics that 1. Go micro. Campbell Soup Company uses an internal program called Culinary Trendscape to provide insights for the company's product development teams.

The Trendscape team gathers and analyzes microtrends observed through vendor partners, magazines, cookbooks, blogs, specialty food shops and groceries, fine-dining restaurants, and quick-service operations, as well as cultural influences across the globe.

Flavor and texture predictions are compiled into an annual report and used to inform new offerings.

In your own organization, designate one team member to represent each relevant department for a once-a-month meeting in which microtrends are presented and discussed. Trend predictions gleaned from this group should be submitted to the innovation team/decision makers.

2. Conduct annual scenario planning.

Shell Oil Company uses "what if ?" scenario planning to consider a range of plausible futures and how these could emerge from the realities of today. In order to inform the company's business decisions, Shell's scenarios teams consider such changes as the global economic environment, geopolitics, water availability, greenhouse gases, and energy supply/demand.

To analyze long-term trends and market

forces, the following scenario-planning exercises can be useful: " Set a time horizon (2025, 2055, etc.) and scope (a specific area of your business, all areas of your business, or the entire industry) for the analysis. " Map the key trends and driving forces that could impact your business, i n c l u d i n g e c o n o m i c, p o l i t i c a l , technological, legal, societal, and industry-specific trends. Describe each trend, as well as how and why it will affect your organization. " Look for uncertainties: wildcard factors that could upend current plans -such as an environmental disaster, vendor bankruptcy, or tighter industry regulation - and threaten your organization. " Define two to four scenarios based on the trends and uncertainties you've identified. Include a mix of bestand worst-case scenarios. " Assess the scenarios. What are your opportunities? What are the threats? How can your business prepare now for these scenarios?

3. Make the future tangible. Twice a year, German conglomerate Siemens publishes the magazine Pictures of the Future, which highlights technologies that will shape our lives in the next 10 to

20 years. The company uses these findings to showcase its vision of the world, as well as to inform its innovation decisions.

A biannual publication may not be relevant for every organization, but you can use the following exercise: Task your product team with identifying key social, technological, economic, environmental, and political (STEEP) forces that will likely impact your organization.

Distribute the STEEP list internally and use it to generate forward-thinking ideas from the company at large.

4. Retain a technology scout.

Technology scouting is a systematic means of identifying emerging technologies or applying established technologies in new ways. BMW recruits tech scouts from Silicon Valley, Japan, and Europe to report on new research and trends from their respective markets.

Through an intranet database, these scouts distribute their findings to all BMW managers.

If you don't have the budget to retain scouting services, identify a current employee who is imaginative and has a track record for making unexpected connections. This individual should have a technical backg round, broad experience within the company, and a vast network of contacts in diverse industries.

5. Tap into academia. Back in the 1960s, Gatorade was invented at the University of Florida to replenish the water, carbs, and electrolytes that its football players lost during games and practice. Today, Gatorade is owned by PepsiCo and has a 75 percent market share in the sports drink category that it created.

Academic innovation can be disruptive, yet only a small fraction of universities in Europe and America have research partnerships with the private sector. To pull ahead of your competition, start by outlining your longterm business objectives that could be served through collaboration with a university.

Even if you're not a multibillion-dollar company, forward thinking is both an essential and achievable exercise.

Culled from Strategy + Business

www.cedmagazineng.com Janaury 2016 | 45

STRATEGY & LEADERSHIP

LET’S ARGUE ABOUT IT

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everal months back, I wrote about being tough on ideas but gentle on people in order to create a more ideaand innovation-friendly culture.

Whenever I repeat that line in a talk, it garners smiles and nods. But while the notion resonates, the question remains: How exactly do we do that? A peek at today’s political debates or various online comment streams reveals arguments about as thoughtful as those in the old S a t u r d a y N i g h t L i v e “Point/Counterpoint” skit starring Dan Aykroyd and Jane Curtin.

Debates within organizations rarely contain that level of vitriol, but it can be deceptively easy to slip into battles for the triumph of your idea rather than a spirited quest for the best idea. It’s a natural impulse — few people have been formally trained to argue and critique and, after all, we wo rk in h igh ly co mp etitive environments. Despite our higher-ups encouraging us to collaborate, winning is too often the dominant goal.

I recently came across some eloquent advice from Tufts University philosopher Daniel C. Dennett. He offers four useful insights that help inform collaboration, negotiation, and conflict resolution in organizational settings: “You should attempt to reexpress your target’s position so clearly, vividly, and fairly that your target says, ‘Thanks, I wish I’d thought of putting it that way.’”

Getting deeply familiar with the counter arguments to your idea is central to testing and sharpening your own thinking as well as getting ready for negotiation. It is easy to focus on your own position, but you also should be paying as much attention to alternative narratives. This advice tracks closely to the first step in a negotiation method my colleagues and I teach called “the Walk in the Woods.” (This moniker comes from an episode in 1982, when U.S. and Soviet arms negotiators resolved an impasse at a summit after having a conversation during a walk in the woods.)

In it, each party expresses its own selfinterest and, as important, the other parties are encouraged to actively listen.

Everything goes more productively when each party feels it has truly been heard.

“You should list any points of 44 | www.cedmagazineng.com Janaury 2016

Eric J. McNulty Eric J. McNulty is the director of research at the National Preparedness Leadership Initiative and writes frequently

Everything goes more productively when agreement (especially if they are not matters of general or widespread agreement).” This also aligns with the next step in the Walk in the Woods — enlarged interests. Listing points of agreement reveals common interests that help lay the groundwork for joint problem solving.

And they almost always outnumber points of disagreement when you include desired outcomes, values, and other broader items.

The other party can begin to see you as a partner in the search for the best result, not simply an advocate of your own ideas.

“You should mention anything you have learned from your target.” This is not a step in the walk but it is excellent advice.

Acknowledging that you have learned demonstrates that you’re open to considering other ideas and willing to modify your position when presented with compelling evidence. In a collaborative setting, this sets the stage for innovative brainstorming (the third step of the walk).

In adversarial situations, it may help soften your opponent’s defenses.

“Only then are you permitted to say so much as a word of rebuttal or criticism.”

Dennett’s approach clearly emphasizes preparation, preparation, and more preparation. This may seem a luxury better suited to his world of academic conferences and peer-reviewed journals than the hurly-burly of business life.

However, while there are situations that require an immediate comeback, much of

our instant-reply culture is self-imposed.

How many of the items that cross your desk each day really require a snap response — particularly the most significant ones? How many would benefit from a bit of research and reflection?

Even in a confrontation, Dennett points out, careful groundwork prepares your opponent to be more receptive to your argument. It’s a psychologically sound approach.

Dennett, however, is a philosopher in pursuit of a greater understanding of truth and the human condition, so his insights may not go far enough for someone confronted with more mundane, yet highconsequence, situations such as choosing software system A or B. One healthcare executive I interviewed faced just such a choice. In his case, it was an electronic medical record system, and he had definite ideas on the direction in which to go.

Several of his subordinates disagreed. He encouraged open, evidence-based debate and they went back and forth. In the end, he became convinced that his colleagues’ answer was the right one for the organization and he went with it. Beyond that decision (which turned out well, by the way), he acquired a reputation as fair and appreciative of a well-prepared case. That halo effect has benefited him many times since.

The Walk in the Woods can address these situations by taking up where Dennett left off. The final step of the walk — aligned interests — is all about capturing new points of agreement made possible by creating a problem-solution environment in which all can claim some victory. The positive nature of the process is as important as the actual agreement, as it demonstrates the benefits and possibilities of moving beyond adversarial combat.

Becoming too entrenched in your own position can lead to blind spots resulting from cognitive biases and positional prejudice — the same situation can look quite different when viewed through the lens of finance versus that of legal or marketing. The actual conditions are likely more nuanced and complex than can be seen from any one position alone. If your goal truly is the best outcome for your organization, your associates, your customers, and your investors, it pays to learn how to argue and critique properly and productively.

Culled from Strategy + Business

Congratulations!

NEWS UPDATE

O.T. OTIS ENGINEERING Consulting Engineers, Management Consultants Appraisers, Cost Engineers, Engineering Economists www.cedmagazineng.com Janaury 2016 | 9| 9 www.cedmagazineng.com Janaury 2016

DEVELOPING STORY

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hen you work with large clients who are in charge of outsourcing construction work for big projects, you need to find interesting and innovative ways to reach and engage them. Your brand image, values and costs are all very important but you’ll need to stand out from the competition before any of that matters.

Here are some creative marketing tips to help you do just that.

Content marketing One of the best ways to get your name out there as an expert in your field is through content marketing. Not only will you be able to reach huge amounts of potential new customers through content on blogs and websites, but you’ll be able to show exactly what you know and where your expertise lies.

If you have the means, video content tends to go down well too, even in a B2B environment. This kind of content is very shareable and can help to extend your reach on social media.

ENVIRONMENT

Hospitality and events Your relationships with your clients need to be nurtured. If you can look after the decision makers and do something memorable, you’re more likely to get repeat business. Hospitality at sporting events is always a good choice and can cost as much or as little as you want it to, but do bear in mind that the experience should be more than they could get from that event if they were to book tickets themselves.

Perhaps hire a private box at a football match, or take your clients for a VIP experience at the races.

If you’d rather be more involved with your clients, invite them on corporate day. A track day is always a good bet as it’s an exciting experience they’re not likely to get elsewhere. You could have cars branded with your logo, space in a pit garage for a presentation and ample opportunity to network with your guests.

Parties surrounding special events are also a great chance to meet clients

and talk in a relaxed environment about future projects.

Set yourself apar t from the competition Look at what others are doing in your industry and try and take it one step further. You might do this by adding a free service to everything you do. You might offer an environmental report to clients to help make their projects greener, or you might simply offer a level of customer service that your competitors just can’t provide.

Find a niche While it can be good to cover a lot of bases, if you can be known for a niche, it’s easier to establish your company as the go-to name for that type of construction.

Set aside time for regular brainstorming sessions with key players in your team to establish ways of reaching new customers and developing relationships with your existing client base.

EN

Referrals If you have clients you’ve worked with in the past, you’ll be able to strengthen your relationship with them if you can send business their way. Simply putting them in touch with companies they could work with will m a k e t h e m remember you.

Take some time on a regular basis to make introductions on LinkedIn, send out introductory emails and to point businesses in the direction of new suppliers. If you can get a name for being the company that builds bridges, you’ll be more likely to have people repaying the favour down the line.

Presi GR. OTI dent, S Ng i eria T. ANYA n Soc iety o EJI,F NS f Eng ineers E (NSE)

WINNING WAYS Creative marketing tips for construction companies

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GERMANY AND EUROPE

NEWS EXTRA engineers. But these are mercenaries; it is only the indigenous engineers who have a stake in that nation that can make the nation truly great.

CED Magazine: Looking at the various policies of government; Local content initiative programme in the c o u n t r y, y o u r v i e w o n i t s implementation in the construction industry in Nigeria?

Engr. Etteh: Local content is just trying to scratch the surface; the idea is that Nigerians should be able to do their nation. You cannot get a stranger to build your father's house, so local content is just government as if they were not really in power, is as if their hands has been twisted to say alright let us bring Nigeria into the oil and gas industry, to make Nigeria to be integrated into the systems. So, local content must make to pull Nigeria participation. In fact Nigeria should be the lead to make for the current partnership that work with them, because any engineers, what they know is limitation, and the world now you know is a global village, with the internet and so on, you can search for any knowledge that you want, there are so many people out there ready to offer themselves.

ENGINEERING IS KEY To DEVELOPMENT Engr. Ette Ikpong Ikpong Etteh, FNSE, OFR, Principal Partner of Etteh Aro and Partners, spoke to Festus Oseji of CED Magazine on some issues affecting the growth of engineering profession in Nigeria as he marks his 80th

C

ED Magazine: Congratulation 80th Birthday celebration, how do you feel sir?

Engr. Etteh: I feel elated and I give thanks to God almighty for His mercies.

CED Magazine: Engineering and 2016 42 | www.cedmagazineng.com www.cedmagazineng.comJanuary January 2016

Economic Prosperity of Nation, what is your take on this?

Engr. Etteh: No nation can develop infrastructure wise without engineering, so without engineering, the nation cannot make it that is why Nigerians are depending on foreign

CED Magazine: National Integrated Infrastructure Master Plan (NIMP) 2014. What is your take on the strategies for implementation?

Engr. Etteh: In Nigeria, we have had so many development plans, and none of them have been thoroughly followed through. We make plans and another government comes in power and change the change the plan. In fact, there should be a law that the incoming government must continue from where the other government has stop and it's only that way that we could develop infrastructures wise. Because it's lack of continuity in policy implementation, that we have so many abandoned projects all over the country today.

Even some fantastic ideas that should have moved this nation to a great level www.cedmagazineng.com Janaury 2016 | 11

WATER

NEWS EXTRA

people in the field of engineering.

CED Magazine: Sir, with over 55years in the practice of engineering in Nigeria, what propelled/inspired you to study engineering?

Engr. Etteh: First of all, it was in my higher school, I did chemistry and mathematics and one of the lecturers in the mission school then, is an engineer from Cambridge and the way the man talk of engineering gave me that passion to be an engineer.

of development if well implemented, they have done nothing about it. For instance, look at the massive investment that has been made at the Ajaokuta steel complex over the years, the last two administrations did not achieve anything there. Now the whole thing is just there wasted, anybody coming in to revive that complex will have to start by buying the spare parts to ensure the company is equipped to be able to deliver the needed products as expected, because the machines installed at that complex now are all obsolete. So, there should be a law that any new government must continue with the policy's that is left behind by their predecessors, after all the policies were made by Nigerians and ensure they the projects through to the end and not to abandon the whole thing.

CED Magazine: As a doyen in the engineering industry in Nigeria, what can you say has been the major challenges facing the built environment industry in Nigeria?

Engr. Etteh: Generally, what has happened over the years all over the world is that construction is capital intensive and in Nigeria it's not different. Nigeria engineers now have gone into building engineering, and there is need for the consultant to work together most at times to be able to deliver jobs effectively.

The local contractor should partner 12 | www.cedmagazineng.com January 2016

with some foreign partners so as to get some technical backing and financial power to be able to do some of the jobs available in the country. We at Etteh Aro and Partners have done that in the past before we get to where we are today.

There is need also for government to challenge the local contractors with some of these gigantic projects across the nation. Because the only way you can know that someone is capable of delivering a particular projects is where you try such one with such projects.

Nigeria contractors need to be challenged. The government has not been able to challenge Nigerian e n g i n e e r s o r c o n t r a c t o r s. S o government must make an effort to really challenge Nigerian engineers and contractors by so doing they will discover that Nigerians are really gifted

Nigeria contractors need to be challenged. The government has not been able to challenge Nigerian engineers or contractors.

So government must make an effort to really challenge Nigerian engineers and contractors

CED Magazine: Which among all the projects you have done over the years or participated in is so dear to you and why?

Engr. Etteh: When you design a job and it is not build, you cannot really get the fulfillment, but when you design a job and it is built, you feel fulfilled. On that basis, I will say the Loco - Weto bridge in crossing river Benue, at LocoWeto community in Benue State. Now, that bridge is a bridge, it has a spam of 85 meters, it is 1.97km long, now we have designed that bridge without any expansion joint except at the end of the bridge, so to drive through the bridge, you must go almost 2km which is at end of the bridge before you see a joint.

This is made possible because we used the pears to draw back the bridge if it wants to expand at any time, so the bridge has only two expansions joints, one at the beginning as you come into the bridge and another at the end of the bridge as drive out of the bridge. It is presently being constructed and will be delivered soonest. The uniqueness of this bridge design makes it so dear to me at this point.

CED Magazine: Your advice to the younger and professional engineers in general.

Engr. Etteh: Generally, if you want to make a career in anything, you must have a passion for it. There are a lot of people who have passion for their chosen career, but become poor engineers, while some have the passion www.cedmagazineng.com January 2016 | 41

HOUSING NEWS ENERGY

WATER

HOUSING THE MASSES Egypt plans to construct a million houses to curb shortage

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gypt plans to construct a million houses for the poor and low income earners to curb the current housing shortage being witnessed in the country.

According to Egyptian housing minister Mustafa Madbouly the mega project is expected to cost almost $20 billion over the next five years in order to ease a crunch that has seen slums and unlicensed buildings spread since the 2011 revolt.

NEWS EXTRA

Engr. Etteh Continued

Signed: ENGR. GEORGE C. OKOROMA, FNSE, FNICE, FNIHE, JP

Signed: The Family

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and has become a big engineers, it depends on the passion and the exposure, the two goes hand in hand for one to succeed in any career of human endeavour.

So my advice to young engineers is that, in the first five years of their career don't think of money, focus on how to get the needed experience, because the first five years is crucial in any profession, if you fail to get the needed exposure within the five years, you might not make it as an engineer it is crucial, so my advice to them is, don't look for money, look for experience, when you get experience, you will be

In Egypt the current population stands at about 90 million and the government officials have projected the population to exceed 120 million by the year 2050.

Currently many Egyptians living in sprawling slums, the country is struggling to build enough houses for the poorest in society. So many people live in a network of tombs in Cairo that the area has become known as the City of the Dead. marketable.

CED Magazine: Your advice to the government in terms of infrastructural development improvement in the country?

Engr. Etteh: Government must not abandon projects that have been started by their predecessor. They must make sure that they continue with it and see it through, you see, Nigeria is now covered with abandoned projects because off new people coming in and having new drive, new focus, they don't want to continue with the project because they think the other man has made for tune out of it. The

Housing Minister Mustafa Madbouly in a statement said that the country needs to construct about 500,000600,000 new homes a year to keep up with demand, 70 percent of which should be aimed at the poor. The social housing project will see 200,000 new homes built each year, meeting over half the annual demand for cheap housing.

Private developers, who have built new suburbs around Cairo, are meeting the needs of middle and higher income Egyptians who can buy homes outright or obtain mortgages.

Egypt is financing its social housing scheme through land sales to developers building higher-end homes, Madbouly said. “This is totally being implemented by the Eg yptian government and the ministry of housing with a total investment that exceeds 150 billion Egyptian pounds ($19.16 billion),” he said on the sidelines of the Egypt Mega Projects conference.

“We are making use of the projects we are offering to the private sector to finance and cross-subsidise the social housing programme.”

Egypt also says it plans to invest LE10 billion to develop 248 slum areas across Egypt by 2018. Priority will be given to “first- and second-degree hazardous” structures that threaten the safety of the 150,000 families living in these areas. government both federal, state and local government must make sure that whatever project they started must be completed because they must be reason for those projects for the first place and government must stop carrying out projects based on certain individuals desire and selfish interest. They should instead focus on the projects that can bring benefits to the majority of people.

People oriented projects must be the focus of any government because most things in this country has always being done based on some certain personalities which is not good for the future and growth of the nation in general.

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STATE OF THEENERGY NATION

COVER OIL ANDFEATURE GAS REPORT

ANYAEJI’S Engr. Otis Oliver Tabugbo Anyaeji, fellow of the Nigerian Society of Engineers and the Chairman and Chief Executive of O. T. Otis Engineering Nigeria Limited, a major player in the power sector, has played many parts in the development of engineering in Nigeria, now he is playing a new role as the 30th President of The Nigerian Society of Engineers. CED Magazine reports the Agenda and the focus of the new president TAYO BADEWOLE

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rom the onset, Engr. Otis Anyaeji, an Anambra bred professional has always been at the fore of excellence in professional practice in the engineering field. As a professional with many interests, he has made and still continues to make indelible marks in the various aspects of engineering profession through various industries with his outstanding involvement in them all. Since he bagged his degree in Mechanical Engineering in 1976 from the University of Nigeria, Nsukka, he has continually moved from one great height of professionalism to another.

This humble but outstanding engineer started his career with Alecon Associate Consulting Engineers, as a Design Engineer and later became the Resident Engineer of the Kaduna Office; he joined Peugeot Automobile Nigeria (PAN) in 1980 as Production Engineer for the body shop, taking over responsibility for the paint shop. Having worked briefly with the Nigeria Airports Authority, he moved to the NNPC as Mechanical Engineer 1, becoming site representative on the petrochemicals phase 1 project Ekpan/Warri. In 1984, he assumed responsibility for the carbon black project as field project engineer, until resigning his appointment in 1987.

Since 1987, he has been leading the firm of Otis Consult Limited/Otis Engineering in the provision of integrated infrastructure services for relevant industries in Nigeria. He is the founding president of two sub-institutions of the Nigerian Society of Engineers, which are: Automotive Engineers Institute (Auto EI), Institute of Appraisers and Cost Engineers (IA & CE) and is a member of the Society of Plastic Engineers.

Contribution to the Profession Over the past 36 years, Engineer Anyaeji has vehemently served in industry, government and consulting. While at the NNPC, he served as site representative on the first petrochemical projects implemented in Nigeria viz polypropylene, carbon black & HFAlkylation plants Warri, where he super vised the implementation of the site preparation, civil works, and the commencement of erection works (1980 – 1984). While on these projects, he supervised a workforce of over 4500 personneel.

He was the first Nigerian Chief Project Consultant on Ajaokuta Steel Project (US&6bn), 1993 – 1994. From 2005, his 14 | www.cedmagazineng.com January 2016

"For clarity, it is important to say that although state governments own 18 per cent of the total road network of about 200,000km, while local governments own the balance of 66 per cent, the 16 per cent owned by the Federal Government carries an estimated 70 per cent of the total traffic because of their length, width and inter-state connectivity.

"For those who seek us to compel them to stop these habits of the past, our resolve to do so will be unyielding, because that resolve represents the will of the majority of Nigerians expressed through 15,424,921 votes of Nigerians who mandated our president to effect change."

As part of strategies to ensure continued maintenance of the nation's highway, the minister said his ministry would bring back tolling system as well as undertake the construction of weigh bridges.

He maintained that the installation of weigh bridges would enable the country elongate the lifespan of her roads, insisting that road users would rather comply with the specified load requirement or be made to pay heavy fines.

Also speaking on the strategies to address the various inhibitions to

housing provision in the country, the minister stated that the immediate

AVIATION

Collectively, Nigerian carriers are said to owe NAMA, NCAA, NCAT and NIMET over N4bn in Passenger Service Charge and Ticket Sales Charge, prompting the NCAA to give them a twoweek ultimatum to pay up or be grounded. Not much is heard about the ultimatum as Usman admitted that the agency was still pleading with the airlines to pay.

The NCAA DG stated that there were historical debts, stressing that what the aviation was guarding against was the accumulation of more debts, a situation that had made the agency to offer services to the carriers on a cash and carry basis.

Mm2, LAGOS

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COVER FEATURE ENERGY

STATE OF THE NATION

Flying with a wing FG will privatise Lagos, Abuja, PH, Kano airports - Amaechi -

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he Federal Government has plans to concession the management of the Lagos, Abuja, Port Harcourt and Kano airports to private investors.

The Minister of Transportation, Rotimi Amaechi, made the disclosure on Wednesday in Lagos during a factfinding tour of facilities and agencies at the Murtala Muhammed Airport.

He was accompanied by the Minister of State for Aviation, Hadi Sirika; Director-General, Nigerian Civil Aviation Authority, Muhtar Usman; Managing Director of the Federal Airports Authority of Nigeria, Saleh Dunoma; and the Nigerian Airspace Management Agency, Ibrahim Abdulsalam; as well as the Director-General, Nigeria Meteorological Agency, Dr. Anthony Anuforom, among others.

The minister said the planned concession of the four airports was to guarantee efficiency and good management in view of dwindling resources from the government for infrastructural development in the aviation industry.

Although, Amaechi did not disclose the airports that would be privatised, there were indications that the Lagos a i r p o r t ; t h e N n a m d i A z i k i we International Airport, Abuja; the Port Harcourt International Airport; and the Mallam Aminu Kano International Airport, Kano were the aerodromes slated for concession.

Amaechi also gave December 2016 as

the deadline for the completion of the four major international airport terminals under construction in Lagos, Abuja, Port Harcourt and Kano.

He stated that after completion, the Lagos airport would handle 15 million passengers annually, while the others would handle additional 15 million passengers to bring the total traffic to 30 million passengers annually.

The minister said, "The new terminal in Lagos will generate additional 15 million passengers annually, making a total of 30 million passengers yearly nationwide. The medium and longterm plans will require significant investments to upgrade and expand infrastructure to meet current and future requirements.

"As a result of limited resources for capital project development, the government is exploring the possibility of private sector participation towards the realisation of the industries' potential."

Amaechi stated that there was an urgent need to continue to improve on infrastructure, noting that out of the four conveyor belts in the Lagos airport, two had broken down.

He said the government would also enact laws to open up the sector to new investments that would lead to economic prosperity.

Ameachi, who described the tour as necessary to enable the ministry firm up its policy direction in line with the determination of the President Muhammadu Buhari administration to improve critical infrastructure that would help to reflate the economy, said the transport sector held the key to the economy and formed the basis of all socio-economic interactions.

"Nigeria suffers the bane of inadequate transportation but perhaps worse than other countries. Nigeria's huge population puts enormous pressure on a very poor transport infrastructure that bedevils the nation," he said.

The minister stated that there would no sacred cows in the recovery of debts owed the various agencies.

Continued on page 36

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NEW ACT reference which included some of firm O.T. Otis Engineering jointly the challenges he listed. So from with Lahmeyer International has that time, he began to operate been performing as Design from the point of strategic Management on the NIPP visioneering and prepare towards comprising 10 power stations, 110 moving the profession forward. transmission lines/substations, In 1991 and 1992 he vied for 1230 distribution projects, 22 President consecutively and was metering stations/gas not successful, and then he gave transmission lines, with up the quest and concentrated on telecoms/teleprotection professional practice and not until networking on 90 sites. He 2002 at the NSE conference in functioned as project director in Kaduna which was shifted to that JV and acts as Chairman of the January 2003 due to the Miss forum of consultants & World Conference, that he vied contractors on the National again, this time for Vice President.

Integ rated Power Projects.

He also failed and in 2003, he tried Currently as a practicing consulting to push for some motion to engineer, he has in employment change some items in the articles over 120 engineers. and memorandum which was also Following the takeover in 2012 pushed to the next year. In 2006 by the Nigerian Society of and 2007, he vied again for Vice Engineers (NSE) of Dr. Newton President and failed, also in 2009, Jibunoh's Trans-Sahara Highway but the jinx broke in 2010 when he Project, engineer Anyaeji won the election that made him conceived renewable energy (solar, ENGR. OTIS OLIVER TABUGBO ANYAEJI Vice President for the first time, wind and super grid) projects across the Sahara desert. He was the programme director for and then he continued to win. Having served consecutively for two years as deputy president, by the first of January 2015, NSE – TAD (taming African Deserts). he will be assuming position as the President of the Nigerian He also authored the National Automotive Policy Society of Engineers. Even though he failed at several approved by the Federal Executive Council in 1993. Shortly attempts, he kept on persisting because he had a vision for the after, he was appointed Founding Chairman of the National society.

“During my dispensation, we will focus strictly on Automotive Council, leading the council subsequently to engineering activities, organizing them in such a way that our obtain government approval of the differentials between structures will build us to a permanent focus on the impacts imported CKD's and FBU's to be between 30% - 100%. on our environment. We are also going to be reviewing regulations on professional Global Conquest practice very seriously because Well, it is a long story that started when he first contested to In 2006 and 2007, he a lot of the failures we become the secretary general of the Nigerian Society of vied again for Vice e x p e r i e n c e w i t h i n t h e Engineers in 1986. Then he contested against a formidable President and failed, also Nigerian Society are surely incumbent who retained his seat. However, something linked to the quality of our unusual happened after the results were announced as the in 2009, but the jinx engineering practice over the then newly elected president Engr. Ife Akintunde, called and broke in 2010 when he years. So our intention is to asked him to state his reason(s) for contesting, which he won the election that subdue that through our listed as the regulation of the practice of engineering, in practice and absence of co-ordinated efforts on standards and codes of made him Vice regulations deliver the results expectedly practice, procedure of membership admission into the President for the first to the right quality level at all (society) among others. Upon his request, the discussion was time, and then he times.” documented, and when he took over the following year, he continued to win. appointed him his chief strategic adviser and gave him a Agenda committee to oversee. This he called “Special Presidential Having served Persistence is an uncommon Advisory Group on Strategies”, and gave them terms of virtue possessed by the www.cedmagazineng.com January 2016 | 15

STATE OF THE NATION

COVER OIL ANDFEATURE GAS REPORT

As a young man, Engr. Otis stood out from the crowd, and kept soaring like on the wings of the eagles, and although his strategies did not at first work for his ambition within the NSE, it worked in the procession of his career journey. Once he won in the resilient and utterly focused individuals. It is an important ingredient of outstanding leadership, one that is believed to be impossible without proper planning, a resilient mind and a heart of focus. Engr. Otis Anyaeji's overall success can only be likened with that of Abraham Lincoln who failed and failed yet again, only to succeed at the end. This noble professional started his ambition within the Nigerian Society of Engineers when he contested for the position of Secretary General of the society in 1986; thereafter contesting times without number at various failed attempts. Despite all the numerous and brilliant ideas he had to bring to the society at those times, all efforts to hold on to the reins of leadership seem futile until 2010 when he eventually became vice president.

As a young man, Engr. Otis stood out from the crowd, and kept soaring like on the wings of the eagles, and although his strategies did not at first work for his ambition within the NSE, it worked in the procession of his career journey.

Once he won in the 2010 election, he kept on winning, and will be assuming office as the president of the Nigerian Society of Engineers on the 1st of January, as his visions has become much clearer to members of the society.

“During my dispensation, we will focus strictly on engineering activities, organizing them in such a way that our structures will lead us to a permanent focus on the impacts on our environment. We will also be reviewing regulations on professional practice very seriously because a lot of the failures we experience within the country is surely linked to the quality of our engineering practice over the years. Our plan is to subdue that through our regulations in practice and deliver the results expectedly to the right quality level at all times”.

The newly elected president made his assertions as to the improvement on the achievements made by his predecessor, and promises to arrange the society's organizational structures such that it is constantly in focus of the six broad compartments of engineering disciplines. He also made a promise that the NSE would not just have functional support areas but listed departments that will have positive impacts on engineering development. With that, it will be easy to closely 16 | www.cedmagazine.com January 2016

monitor the happenings in the government, economy, corporate world and the academia to ensure that the whole system is running as engineered.

Engr. Otis Anyaeji has given so much to the institute and a lot more is expected of him as his reputation speaks well ahead of him.

Engineering is a major growth driver for any developing economy and this newly elected president believes that as much as due process has produced pleasant results in times past, the economy is capable of working properly if we decide to be on the side of honesty and transparency; especially as those two virtues are what he is known for. “We cannot afford to dilly dally on the due process issues because of the fall in the oil price. Oil might have fallen drastically, but there are no outright downward trends in machinery, equipments and consumables; so the economy will suffer if we don't focus on creating multiple streams of revenue for the nation. We need to breed manufacturers in this country”.

During the Sunshine Conference which held at Akure, the communiqué shared included the presentation of the Integrated Infrastructure Master Plan which was authored by the National planning Ministry, an engineering economy ministry.

According to the newly elected president, the NSE has noticed that there is a gap that needs to be bridged between the National Planning Ministry and engineering economics, and has also resolved to bridge it. Engineering economics is necessary for a nation to grow, and the incoming administration has promised to ensure that industrialization becomes a major part of our economy.

“As much as the ministry of National Planning has made an integrated effort on the provision of infrastructure, they ought to precede that with manufacturing, and they need to do an integrated manufacturing master plan alongside. As I have inherited the deliverables of the last conference, we will run with it come January, because we want the government to get it right. We also need to embrace vendoring of machineries and equipments more properly, especially in the automotive sector.

“At the instance of my investiture in January, I am aware that the Automotive Engineers Institute is also trying to have a symposium where they are trying to deliver some maintenance workshop standards for adoption in conjunction with the NSE. That is a great start and we will continue to run with many such plans in 2016”.

The Nigerian Society of Engineers has made a celebrated mark once again by having a visionary professional with outstanding leadership qualities at its helm of affairs, and we can only hope that the integrated infrastructure master plan will see the light of the day as its success rests on the shoulders of the

undertaking to join and ensure payment of all their electricity bills," he noted.

He also explained that the Nigerian National Petroleum Corporation, NNPC, had agreed to provide fund and pledged to complete gas lines that would add up to 2,000mw of power to the national grid in the next 15 months.

In the area of road infrastructure, the minister noted that whereas it would require N2 trillion to complete the 206 ongoing projects spread across the sixgeo political zones, N13 billion was released out of the N18.132 billion provided in the 2015 budget.

In order to navigate the financial hurdle, Fashola stated that the ministry's short term strategy was to concentrate on roads that connect states and those that bear heaviest traffic.

However, in view of its strategic significance to the economic development of the nation, the minister said President Muhammadu Buhari had interest in seeing to the early completion of the Lagos-Ibadan Expressway.

Also, as part of efforts to ensure optimal use of the nation's road infrastructure, Fashola insisted on reclaiming the full width and setback of all federal roads, admonishing all those who had infringed on them to begin to move away in the interest of the public.

He said: "The records that have been made available from previous budgets show that the last time Nigeria budgeted over N200bn in a year's budget for roads was in 2002. It seems that as our income from oil prices increased over the last decade, our

spending on roads decreased.

"As far as status reports go, the Federal Gover nment budg eted N18.132bn in 2015 and the Ministry of Works got N13bn for all roads and highways in 2015, although it has contracts for 206 roads, covering over 6,000km with contract price of over N2trn.

"Our ability to achieve connectivity of roads depends on capital spending in 2016 to pay contractors and get them back to work.

"Our short term strategy will be to start with roads that have made some progress and can be quickly completed to facilitate connectivity.

"We will prioritise within this strategy by choosing first, the roads that connect states together and from that grouping, start with those that bear the heaviest traffic."

He noted that stoppage of road

projects due to failure of government to pay contractors had resulted in acute job losses, adding that over 5,150 workers had been laid off in four major construction companies in the country.

On plans by government to reclaim highways that had been encroached on, the minister said: "In order to make the roads safer, we intend to re-claim the full width and set back of all federal roads, representing 16 per cent and about 36,000km of Nigeria's road network by immediately now asking all those who are infringing on our highways, whether by parking, trading, or erection of any inappropriate structure to immediately remove, relocate or dismantle such things voluntarily.

"This will be the biggest contribution that citizens can offer our country as proof that we all want things to change for the better.

www.cedmagazine.com January 2016 | 37

ENGINEERING A & A

STATE OF THE NATION

Reality checks Nigeria’s Minister of Power, Works and Housing, Babatunde Fashola unveils plans for power, road projects "Targets 22 power plants in 12 months “N2trn required to fix ongoing 206 roads

Power Plant in Nigeria

M

inister of Power, Works and Housing, Babatunde Fashola, has unveiled his short and medium term plans for the revitalisation of the nation's dilapidating infrastructure.

In his maiden interaction with journalists in Abuja recently, the former Lagos State governor stated that paucity of funds had compelled the present administration to prioritise its intervention in power, road and housing sectors.

He briefed alongside his Minister of State for Power, Works and Housing, Mustapha Shehuri, and Permanent Secretaries in the ministries, Louis Edozien and Gambo Magaji, respectively.

In the area of power, Fashola said there was a significant low budgetary provision for the sector in 2015, adding that there were 142 transmission projects that were near completion, out of which 22 could be completed within a year at an estimated cost of N40bn.

"There is a 10 megawatts wind energy project in Katsina nearing completion, a 215mw plant in Kaduna and the 3,050mw plant in Mambilla, Taraba 36 | www.cedmagazineng.com January 2016

State, all of which need to be completed.

"Our first priority is to get contractors to finish on-going transmission contracts to enable us transport the power being generated to the Discos to distribute.

"Our second priority is to ask the governors to help us identify and enumerate their most populous industrial and commercial clusters where manufacturing, fabrication, welding and related productive work is going on, especially by small businesses and to see how we can use the existing legal framework to attract embedded

Babatunde Fashola, Minister of Power, Works and Housing

power supply to these people who must be ready to pay for the power.

"The owners of the Discos will be expected to give us their co-operation through flexibility and innovative disposition for emergency interventions while they plan and develop their wholesale roll out plan.

"Our economy cannot wait indefinitely and suffer job losses. If we succeed, we can get a lot of workers back to work in cottage and small industries which are the critical driving forces of our economy," he said.

The minister also stated government's intention to continue to slowly stand-down and allow market forces drive the electricity sector; as well as rectify disparity in price of gas to power plants and quickly resolve extant issues between it, owners of the Aba Power and Enugu Electricity Disco.

"Government is now a regulator through the National Electricity Regulatory Commission, NERC, which is like the National Communications Commission, NCC, which regulates Telcos.

"We intend to strengthen this part of our responsibility so that we can hold the Gencos and Discos to their contracts with citizens. But before we do that, we must play our own role of providing gas and expanding the transmission network," he said.

Fashola said he would task government agencies across the country on timely payment of bills for electricity supplied to them to eliminate revenue losses by the Dicos.

"More importantly as a government and consumer of power through our ministries, departments and agencies, we must show example at federal, state and local governments by paying up backlogs of power bills and ensuring from there that we pay for what we use.

"Our ministry intends to champion this at the federal level and I hope that the state governors, heads of parastatals, national and state assemblies, the various state and federal courts, local governments, military, police, and other related security agencies will find this a worthy

A

The DOYEN of the Engineering Industry

s! n o i t la u t a r Cong

Signed: ENGR. SAMSON A. IVOVI B.Eng. Msc., FNIStructE, MNSE

ENGR.

OTIS President , Nigerian

T. ANYAE

J,I FNSE Society o f Enginee rs (NSE)

Signed: ENGR. SAMSON A. IVOVI B.Eng. Msc., FNIStructE, MNSE

Plot 576, 14th Street, DDPA Estate, Ugborikoko, Warri, Delta State Tel: 234 8037 262 708 E-mail: delteceng@yahoo.com Website: www.delteceng.com

www.cedmagazineng.com January 2016 | 17 www.cedmagazineng.com January 2016 | 17

ENVIRONMENT OIL AND GAS REPORT

STATE OF THE NATION

President Barack Obama points to Bear Glacier during a boat tour of the Kenai Fjords National Park o

CLIMATE BLUES..

The Earth's climate has never had a year like 2015.

I

t's likely to shatter the record for the hottest year since humans started keeping track. But the most amazing part of 2015 isn't the heat-it's the fact that humanity finally agreed to do something about it.

The historic moment arrived on December 13, just after 7 p.m. local time, inside a high-security airplane hangar on the outskirts of Paris. Delegates from nearly 200 nations ratified a universal pact to slow manmade global warming, ending a decades-long political stalemate and according to the best possible science lowering the risk of ecological collapse.

President Barack Obama declared it "the most ambitious climate change agreement in history."

The agreement commits the world to hold "the increase in the global average temperature to well below 2째C above preindustrial levels and to pursue efforts to

limit the temperature increase to 1.5째C above pre-industrial levels"; reach a "global peaking of greenhouse gas emissions as soon as possible," and enact "rapid reductions thereafter"; and provide a minimum of $100 billion a year for developing countries to adapt to the ravages of our already overheated climate.

But all of this could also fall apart, which is why 2015 may go down as epoch-making moment-the end of one era of human history and, quite possibly, the beginning of another. Or, in a darker future, 2015 may simply be the beginning of the end.

Much depends on a series of bold, neverbefore-seen executive actions by President Obama. The biggest is the Clean Power Plan, which he announced in August. The plan is the first-ever effort to limit the amount of carbon that power plants can pump into the atmosphere.

STILL ON PARIS TALK How climate change has damaged the planet

H

ow has climate change has wrecked the planet? Take a look at its worldwide effects through the lens of photojournalism.

"I don't want my grandkids to not be able to swim in Hawaii or not be able to climb a mountain and see a glacier because we didn't do something about it," Obama said in an emotional press conference announcing the plan. "That'd be shameful 18 | www.cedmagazineng.com January 2016

of us. This is our moment to get this right and leave something better for our kids."

The speech already feels like the stuff of slow-mo documentaries, a moment that fundamentally rewrote Obama's mixed legacy on global warming, and helped him make good on his 2008 inaugural promise to slow the rise of the oceans and heal the planet. It's a move credited with giving Obama the political capital he needed to

wring commitments from the rest of the world.

It's also a position that other Democrats took up in 2015. All three Democratic candidates running to replace Obama have pledged not only to continue his plans but to deepen them, ratcheting up American ambition and urging other countries to do the same.

This wasn't a foregone conclusion.

Former Secretary of State Hillary Clinton started the year to the right of rival and long time climate hawk Bernie Sanders. The Vermont senator - along with former Maryland Gov. Martin O'Malley, another climate hawk - took an early position on three acid-test issues for environmentalists.

He and O'Malley opposed the Keystone oil pipeline, the search for oil in the Arctic and rampant drilling for fossil fuels on public lands. Clinton dithered, then joined them, making 2015 the year in which Democrats decided that climate change could be a winning political issue.

By contrast, all the leading GOP candidates spent 2015 skeptical about anthropogenic climate change, or at least skeptical of the claim that it is a serious, multi-level threat to the planet.

Their skepticism is dangerous and misplaced, according to scientists. But nonetheless they are pursuing it as a political pose.

They offered almost uniform support the Keystone pipeline, Arctic drilling, and fossil fuel extraction on public land-and almost uniform opposition to the Paris climate agreement and Obama's Clean Power Plan. What's certain is that if a Republican is elected president in 2016, President Obama's climate polices will be clawed back, potentially imperiling the planet in the process.

But this isn't just about politics. In another milestone, 2015 marked the start of an extraordinary legal, political and even cultural battle over how to address climate change. It's a fight that could stretch for years, inspiring an escalating level of activism and opposition.

More than two dozen states have sued to block the Clean Power Plan, which means that climate change - like universal health insurance could end up being decided by the Supreme Court.

That makes 2015 a scary year as well. In the sunnier reading of events, it's the start of something wondrous. Every five years, according to the Paris agreement, the nations of the world are supposed to return to the negotiating table, raising their intention to slash greenhouse gas emissions. That could mean the end of the era of oil, gas, and coal, the fuels that produce the majority of planet-heating gases.

But the Paris deal is almost totally voluntary, a quirk devised by the U.S. delegation, which calculated that it could never get a binding treaty through Congress. As a result, the era of oil, gas and coal may yet live on - and, if it does, many of the rest of us may not.

partnership with the banks to develop interest in the sector and assist investors as well as the National Assembly for legislation and other ministries, National Security Adviser (NSA) and the Nigerian Custom Service (NCS) among others.

He said Ghana, once known as Gold Coast, and a leading producer of gold, will not only be bested by Nigeria in the production of the commodity, but that the African most populous country will do so three times over once she fully begins the exploitation and control of the precious metal along with other solid minerals.

He also said though he had heard that there was an international conspiracy to thwart the effective operationalisation of Ajaokuta Steel Company, no amount of conspiracy could stop a determined nation and as such, this administration would work towards putting it back into operation.

"We are the architects of our own fortunes," Fayemi remarked. "No international conspiracy can stop a determined nation. We need to fix Ajaokuta Steel Plant, and we will fix it."

He stated that after a tour of the plant's complex which is a city of its own, he could not understand why the government had not fixed it, although he acknowledged that the amount required to do it was so humongous that the government would need to

Ajaokuta Steel Company Limited : Ajaokuta Steel Project is located on 24,000 hectares of sprawling green-field land-mass. The Steel Plant itself is built on 800-hectares of land.

partner private investors to achieve the target.

"Fixing Ajaokuta is not a matter of the plant alone; it is also a matter of the infrastructure to aid Ajaokuta perform better. Coking coal cannot be got except through a deep seaport; and even when you produce the steel, the central rail line that we have is only stopping in Abuja," he said, adding that

there was need to take the rail line to Ajaokuta and complete the one from Itakpe where the iron ore company is, to Warri.

According to him, the decision on what to do with the Ajaokuta and Aladja steel companies would be taken by the end of the first quarter. The choices, he added, are whether to take them over or go into partnership with investors.

"One thing we can guarantee is that this administration will make choices that will ensure that Nigeria and her partners, domestic and foreign, create a profitable safe and sustainable solid minerals growth story. Hold us to account and challenge us."

www.cedmagazineng.com January 2016 | 35

ENERGY STATE OF THE NATION

STATE OF THEENERGY NATION

BANKING ON SOLID MINERALS Occasion by the dwindling oil revenue Nigeria turn to Solid Minerals to boost its Economy

T

he Minister of Solid Minerals Development, Dr. Kayode Fayemi, has said the main focus of his ministry is to reposition mining activities in the country and ensure that the sector contributes immense growth to the economy within a decade.

Fayemi, who stated these yesterday during his inaugural press briefing on the activities of the ministry, said opportunities abound in the solid minerals sector to actualise President Muhammadu Buhari's vision of using the sector to diversify the economy and create jobs.

He also declared that the federal government was determined to make the Ajaokuta Steel complex work in spite of the huge fund required to ensure the industry is up and running.

According to him, aside this, any current holder of mining licence who failed to use it would forfeit such from March next year when the ministry would start enforcing the 'use it or lose it' doctrine as enshrined in the Nigerian Minerals and Mining Act. Fayemi, together with the Minister of State for Solid Minerals, Hon Abubakar Bwari, addressed journalists at the ministry's conference room as well as unveiled the roadmap for the ministry.

34 | www.cedmagazineng.com January 2016

While unveiling the roadmap which the ministry intends to achieve in the short, medium and the long term, the minister pointed out that the country's solid minerals sector currently makes up about 0.34 per cent of gross domestic product (GDP), which translates to about N400 billion in value to the economy.

The former Governor of Ekiti State, said: "While this is a significant role, it is smaller than the true potentials of the sector. In fact, what has been happening is that the sector has been operating sharply below capacity, with many mining operations manned by

Dr. Kayode Fayemi, Minister of Solid Minerals

Says Nigeria's gold to triple Ghana's

small scale miners as opposed to large scale players."

Fayemi, however, said when properly structured, the sector has the capacity to provide no fewer than a million direct jobs and contribute as much as the oil and gas sector into the national economy.

Although the minister noted the global decline in prices of mining products, he said the good news is that Nigeria has a great deal of domestic demand for industrial minerals and metal.

"So we will focus on working with other Ministries, Department and Agencies (MDAs) to ensure the demand is met by Nigerians miners and processors," he added.

In order to achieve its set goals, Fayemi said certain steps would be taken in the short term, adding that the ministry would undertake an external audit of revenue receipts in the solid minerals sector for the past years.

He said the ministry would focus on jobs creation, block all leakages to shore up its revenue generation; build an industry that would support the country's industrialisation and become sustainable, transparent and environmental friendly.

"We also want to build an industry that integrates states, communities and existing miners into mining ecosystem.

"If we deliver on this vision, then we can build a mining sector that Nigerians can be proud of in 30 years or more from now. This sector should deliver double digit growth over the next decade with important direct and indirect economic impacts on households.

"To improve our likelihood of building such an outcome, the ministry also sought to extensively understand the entire operations in the sector.

Therefore, we continue to review lessons from some of the best mining industries to see what lessons we can draw from their experiences, and balancing some of the objectives outlined above," he stated.

In achieving its set goals, Fayemi said the ministry would enter into strategic

GROWTH WITH A PURPOSE

More attention and resources given to the construction sector will only translate to growth in all sectors - Experts

A

gainst the backdrop of a very difficult year in which the construction industry witnessed several abandoned or uncompleted projects, job losses and huge debts owed contractors for projects already completed, built environment experts have called on the Federal Government to pump enough money into the fledging sector in view of its multiplier effect on other sectors.

The professionals who spoke on the subject matter posited that the construction industry which is generally regarded as the barometer for measuring the health of any economy, should be given priority attention by the Muhammadu Buhari-led Federal Government.

The Secretary, Marketing & Corporate Affairs, Nigerian Institute of Quantity Surveyors,NIQS, Mr. Olujide Oke said expectations are high that the sector will come out of the woods.

we are positive and optimistic because of the improvement in capital expenditure and the fact that we have a tested and trusted man in the person of Mr. Babatunde Fashola as the Minister in charge of Power, Works and Housing. We are still watching as events unfold but we are optimistic and hopeful,” Mr. Oke said.

Asked to set an agenda for the government, Mr Oke advised the government to inject sufficient funds

Sectoral activities “The budget has been read but we are yet to get the breakdown to enable us know how sectoral activities will be. But Jide Oke

i n t o t h e construction and housing sector.

T h e N I Q S Marketing & Corporate Affairs Secretary who obser ved that many projects in the country have either being abandoned or are at a standstill, called on the government to reawaken and bring such projects back to life. He also advised the government to pay contractors the outstanding debts owed them to enable them return to the abandoned construction sites.

“The construction sector is the first sector to reflect the health of any economy. If the government pumps money into it, other sectors will benefit: artisans, contractors, consultants, construction materials producers and suppliers – the benefits will cut across all sectors of the economy. The trickle down effect will be massive,” he said.

Mr Oke charged the government to do all within its power to ensure that power supply becomes stable. “If power becomes stable, many of the industries which are pulling out of the country will return while those planning to exit will remain. Small scale industries will thrive and artisans will have power to remain in business,” he said.

He lauded current efforts by the Federal Government to boost activities in the housing sector. “It will be a massive boost to the economy if the government pumps in enough money into the sector. The construction industry has been comatose as it were, our roads are in very bad states. If enough money is injected into the construction industry, the government will be in a position to fix the LagosIbadan express way, the Benin -Ore Road and other very bad roads in the Continued on Page 21

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www.cedmagazineng.com January 2016 | 19

STATE OF THE NATION ENERGY

STATE OFGAS THEREPORT NATION OIL AND

South-eastern part of the country,” the NIQS image maker said, adding that the government should also tackle corruption in the construction industry with all its might.

Immediate past chairman of the Lagos State branch of the Nigerian Institution of Estate Surveyors and Valuers, NIESV, Pastor Stephen Jagun who also spoke to Vanguard Homes & Property, called on the Federal Government to come up with a clearcut financial policy to enable local and foreign investors know where to put their money.

Jagun noted that since the present administration came to power, we have not had a clear-cut financial policy and this is hurting the economy. According to him, the financial policy somersault is impacting negatively on the economy as many investors are scared of investing in the country’s real estate sector.

Jagun who noted that expectations that infrastructure and housing would be given a major boost going by the pedigree of Fashola who oversees the Power, Works and Housing Ministry, enjoined such optimists to soft pedal.

He anchored his subdued optimism on the fact that Fashola is not 100 percent in charge as was the scenario when he was the Governor of Lagos State.

“Now, he will take directives from the President and would also require the cooperation of other ministries and agencies, When he was performing in Lagos State, he was calling the shots 100

20 | www.cedmagazineng.com January 2016

Kunle Awobodu

percent unlike now,” Jagun posited.

The current chairman of NIESV, Lagos branch, Mr. Samuel Ukpong in his own reaction, enjoined the Federal Government to shift its attention away from oil and focus on other sources of internally generated revenue, IGR. He stated that real estate assets can be be a veritable source of revenue and advised the government to explore this. He called on the government to put measures in place to reduce substantially the current housing deficit put at a staggering 17 million units.

Apart from calling on the government to use relevant professionals in the execution of its projects, Ukpong advised both the Federal and state governments

ESV. Offiong Samuel UKPONG

to appoint a Valuer-General especially now that the government is implementing the Public Sector Accounting Standards.

Also speaking to Vanguard Homes & Property on his expectations in the new year, the President of the Building Collapse Prevention Guild, BCPG, Mr Kunle Awobodu called on the government to pay contractors who are owed huge debts for projects already completed.

Dwindling fortunes Noting that many of them have retrenched or at the verge of downsizing their workforce, Awobodu maintained that the government cannot embark upon massive construction projects without the support of construction companies.

He prayed that the dwindling fortunes of the Naira against major currencies would be halted while the government looks for other sources of beefing up the country’s revenue base.

Awobodu, a former chairman of the Lagos State chapter of the Nigerian Institute of Building, NIOB, called on the government to register all developers engaged in housing construction. He also made a case for quality control of houses being built in the country. “The fact that we are in dire need of housing does not mean that we should build shoddy or substandard houses. Professionals should be engaged to play necessary roles in the built environment sector,” he said

meet their salary and other employee related obligations. The small business owners and traders have been particularly hard hit by this state of affairs.

"Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has ever been.

"The answers to our problems are not beyond us. They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.

"This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians.

"We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the

extremely poor and vulnerable Nigerians".

The President who reiterated that the administration would diversify the economy through import substitution and export promotion, said that such economic strateg y would build resilience in the economy and guarantee that the contemporary challenges did not confront the nation's future generations, adding, "In the medium to

"We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible

longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy. It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come", he stated.

According to him, despite the general global economic downturn in 2015, Nigerian economy was able to grow by 2.84 per cent in the subsisting fiscal year, just as he promised that the present administration would continue to evolve and implement strategies that would maintain micro-economic stability, while managing the oil price shocks currently aching the country.

He said: "Today, it is widely acknowledged that the global economy has slowed down. This is particularly the case with emerging markets such as Nigeria. However, despite the weak emerging market growth rates, our domestic security challenges, declining oil prices, and the attendant difficulties in providing foreign exchange to meet market demands, the Nigerian economy grew by 2.84 per cent in the third quarter of 2015. We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing."

President Buhari was accompanied by All Progressives C o n g r e s s, A P C N a t i o n a l Chairman, Chief John OdigieOyegun; his ministers including Rotimi Amaechi; Senator Chris Ngige; Senator Udoma Udo Udoma; Dr. Kayode Fayemi; Chief Audu Ogbeh; Ogbonnaya Onu; Dr. Osagie Ehanire; Lt.Gen. Abduulrahman Dambazau; Alhaji Lai Mohammed; Amina Ibrahim Mohammed; Babatunde Raji Fashola; Dr. Emmanuel Ibe K achikwu; Abubakar Malami, SAN; Senator Aisha Jummai Alhassan; and Mrs Kemi Adeosun among others.

www.cedmagazineng.com January 2016 | 33

DEVELOPING STORY

STATE THE NATION OIL ANDOF GAS REPORT

Arc. Musa Sada, Minister of Mines & Steel

"In fulfillment of our promise to run a lean government, we have proposed a nine per cent reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016. Furthermore, we have budgeted N300 billion for Special Intervention Programmes, which takes the total amount for non-debt recurrent expenditure to N2.65 trillion.

"The Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least seven per cent,

Reduces overhead cost "The Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least seven per cent, personnel costs by eight per cent and other service wide votes by 19 per cent. Distinguished and honourable members, this budget will be executed to provide optimum value by ensuring every naira spent by this Government, counts.

"We will devote a significant portion of our recurrent expenditure to institutions that provide critical government services. We will spend N369.6 billion in Education; N294.5 billion in Defence; N221.7 billion in Health and N145.3 billion in the Ministry of Interior. This will ensure

our teachers, armed forces personnel, doctors, nurses, police men, fire fighters, prison service officers and many more critical service providers are paid competitively and on time.

"Our 2016 borrowings will be principally directed to fund our capital projects. Furthermore, the sum of N113 billion will be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. This calls for prudent management on our part, both of the debt portfolio and the deployment of our hard earned foreign exchange earnings."

Buhari who noted that government was aware of the harsh economic

32 | www.cedmagazineng.com January 2016

situation presently being faced by Nigerians, however, blamed the situation on unbridled corruption and security challenges, adding: "We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face.

On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria.

No matter where it is hidden. No matter how long it will take."

President Buhari assured Nigerians that his administration was poised to rebuilding the economy and restoring public confidence in the government.

He said although the nation has series of problems to contend with, the challenges were not beyond the country to tackle, adding that the 2016 budget was designed to stimulate the economy and make it more competitive, while focusing on infrastructural development; delivering inclusive growth and prioritizing the welfare of Nigerians.

Buhari also assured that the budget would address problems associated with youth unemployment and general poverty in the land, with particular emphasis on the deplorable conditions of most vulnerable Nigerians, adding, "I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years.

"From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation's history, lessons that we must not forget or ignore, as we plan for the future.

"By June 2014, oil prices averaged $112 per barrel. But as at today, the price is under $39 per barrel. This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to

TERMES robots, photo courtesy of SingularityHUB via Pinterest

THE FUTURE OF CONSTRUCTION Future Construction Technologies and Techniques

T

he future of the construction industry seems brighter than ever.

Aside from providing various jobs to those seeking careers in this field, evolving techniques have enabled different living options for people to better suit their styles and preferences.

Condos in key cities, for example, have provided people with an alternative way of living, aside from the standard residences that people are more accustomed to. As more and more buildings and condominiums in major cities are being built, the industry is also keeping in track with the latest technologies to better improve the quality of said buildings, geared towards the future of man’s day-to-day living through sustainable construction practices.

So what are the different technologies available to the construction market to advance the industr y beyond conventional builds into ones that represent the standards of the future?

What are the innovations and materials that will build the high-rise buildings of tomorrow in the world's largest cities?

Future construction technology

When it comes to constr uction technologies, the possibilities are endless, and the current rapid innovation and technology of construction will shape the appearance of future buildings.

In terms of building construction, the construction workers of the future could be robots. The Harvard School of Engineering and Applied Sciences and the Wyss Institute for Biologically Inspired Engineering have designed termite-inspired bots which can already perform construction tasks.

They can build structures without supervision and even without predetermined roles. Four years have been allotted by the researchers to develop TERMES, the team of small robots that can build 3D structures from foam bricks.

They plan to use similar robotic systems such as these for construction projects that may be too risky for humans.

Italian robotics engineer Enrico Dini has said: “We might print not only buildings, but entire urban sections.” This may well hold true, with architects already producing the first 3D-printed houses.

Last January 2013, Universe Architecture had designs of a two-storey house that

looks like a Möbius Strip and designers plan that it will be concretely printed on site.

Universe will be collaborating with Dini with his D-shape machine, which is considered the largest 3D printer in the world. In 2010, it built a single-room structure resembling a mountain hut with two windows; an interior that has a workspace, platform bed and a sink.

These kinds of printed buildings might offer a glimpse of the future of building construction, but because of its fragile parts, the buildings must be printed with supporting structures to prevent them from collapsing while under construction. The support can be removed once the concrete filling has been added. At present, the whole process has been estimated to cost around €5 million: rather prohibitive, but constantly falling as the technology is refined.

Building materials of the future: Greener, more intelligent Future building materials will take their cue from current scientific technologies.

As reported by BBC News, a self-healing concrete developed by microbiologist Henk Jonkers and Eric Schlangen, a concrete technologist, involves the genus www.cedmagazineng.com January 2016

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CEDAND PROPERTY OIL GAS REPORT

Bacillus’ mixed bacteria spores. Its nutrients, when activated by water, will feed on calcium lactate to produce a primary component of limestone, which is lactite.

This self-healing concrete may be available within the next few years if tests are successful. Once proven, it could eliminate concrete cracks and expensive concrete maintenance.

Alongside and influencing these technologies is a greater awareness and need to build greener, with sustainable materials used at the c o n s t r u c t i o n p h a s e. M a l a m a Composites has started manufacturing foam material from plant materials like hemp, kelp, and bamboo that will be used in turbine blades, insulation, and furniture.

The foam can provide high moisture and high resistance to heat, and when used can also give protection against molds and pets. It even improve the quality of living, thanks to its better insulating properties and higher thermal resistance. Plus, it can also give your living spaces the right kind of acoustics.

Re-defining future design While it may be easier to stick to familiar construction methods, the industry is changing and the new, innovative greener techniques, while challenging to develop to the point that they become standard, can be 22 | www.cedmagazineng.com January 2016

STATE OF THE NATION

highly beneficial to the quality of the urban environment, and often ingenious.

In Indonesia, Skidmore, Owings & Mills has revealed its design for a 99-story Pertamina Skyscraper that is shaped like a budding f lower’s petals. What’s interesting to note here is that to harness wind energy, the said skyscraper will slightly open its peak to allow its wind funnel to convert high speed winds into

energy sources.

The design team, as part of its green architectural design plan, also took steps to minimise the solar heat, adding solar panels to the façade of the sk yscraper to take advantage of the natural daylight coming from the sun, thus decreasing carbon dioxide emissions.

Elsewhere, to decrease construction costs and at the same time reduce waste, VS-A and Chartier-Corbasson unveiled their skyscraper design made from the tenants’ trash.

Dubbed as “The Organic London Skyscraper”, it will be made of durable panels made out of plastic waste and discarded paper.

The said building will grow as its initial residents produce more trash for the construction materials. The plastic casting can be completed in a year, and to be able to generate its own electricity, the hollow tubes in the embedded scaffolding will be provided with wind turbines.

Recycled materials will be converted to durable panels installed across the building.

Seeing beyond the tall buildings Considering the future of construction development can give us a wider perspective and fresh ideas when it comes to designing the living spaces such as condos, skyscrapers, skylines and office spaces being built in major cities around the world.

Architects and designers have given us exciting ideas that will define the way we live, and the kind of living that the next generation will experience. More importantly, as these buildings are constructed, experts should ensure that every material and every action taken in the construction process will minimise environmental damage, ensuring the world outside these future buildings is as pleasant as it is inside.

am, disclosed that 30 per cent of Nigeria's annual budget will be committed to capital expenditure, even as he raised Capital Expenditure from N557 billion in 2015 to N1.8 trillion in the 2016 budget.

Having reviewed the trends in the global oil industry, he said the g over nment decided to set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016, with plans to focus on non-oil revenues by broadening the tax base and improving the effectiveness of revenue collecting agencies. The government is projecting to realise N1.4 trillion as non-oil revenue.

President Buhari, who noted that the present administration projected a revenue target of N3.86 trillion for 2016 and recurrent expenditure of N2.43 trillion, said that the Federal Government also proposed to spend N1.66 trillion on foreign and domestic debt servicing.

The President also declared that his administration would fight corruption no matter how long it takes.

To borrow N1.9 trillion In the budget, there is a projected foreign and domestic borrowing of N900 billion and N986 billion respectively.

"Indeed, the future looks bright. And I ask that we all work together to make this vision a reality. The 223 per cent year on year growth in capital expenditure demonstrates our desire to On recurrent sectoral allocations, Education received the highest recurrent vote of N369 billion; followed by Health, N296 billion; Defence, N294 billion; Ministry of Interior, N245 billion while the merged ministries of Power, Works and Housing received budgetary allocation of N433 billion for 2016.

The speech read in part: "The Budget was based on a benchmark oil price of $53 per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the US$.

"The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the North East, the Government had to

obtain National Assembly's approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill.

"To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget.

Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30 per cent of our total budget. In future years, we intend to raise the percentage allocation for capital expenditure.

"This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government's commitment to sustainable development. This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing - N433.4 billion; Transport - N202 billion; Special Intervention Programs - N200 billion; Defence - N134.6 billion; and Interior - N145.3 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.

"We will invest to safeguard lives and property. We will invest in equipping our farmers with the right tools, technology and techniques. We will invest in empowering and enabling our miners to operate in a safe, secure and humane environment. We will invest in training our youths, through the revival of our technical and vocational institutions, to ensure they are competent enough to seize the opportunities that will arise from this economic revival.

"Indeed, the future looks bright.

And I ask that we all work together to make this vision a reality. The 223 per cent year on year growth in capital expenditure demonstrates our desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country. www.cedmagazineng.com January 2016 | 31

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STATE OF THE NATION

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MagazIne PublIcatIon

Despite the upbeat view on the oil and gas industry's prospects, Citi predicts capital spending in the oil and gas industry will drop 26 per cent in 2016 over already sharply reduced 2015 levels, when capital spending was down 32 per cent in comparison with the year before.

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OIL TAKES THE BACK SEAT PRESIDENT Muhammadu Buhari, yesterday, apologised to Nigerians over the persistent and biting fuel scarcity in the country and attributed the problem to market speculators and stakeholders who are resistant to

THE BUDGET AT A GLANCE President presents N6.08tr X budget, non-oil to fetch N1.45 trillion, oil N820 billion Govt to fund N1.8tr capital X expenditure with loan Science, tech, education X students to enjoy free tuition Petrol pump price remains X

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resident Buhari who begged Nigerians while presenting the N6.08 trillion 2016 budget to a joint session of the N a t i o n a l A s s e m b l y, s a i d t h e government has not increased fuel price and that the pump price of fuel remains N87 per litre.

Buhari arrived the Chambers at 10.01am. Apologizing to Nigerians for the pains occasioned by the continued fuel scarcity across the country, he said: "The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is

ver y unfor tunate. Gover nment profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country."

Meanwhile, the Senate, yesterday, amended the Appropriation Act of 2015 to extend implementation of 2015 budget from December 31, 2015 to March 31, 2016.

The President who started his address at 10.17am and ended it at 10.51

hile most analysts have forecast a bleak 2016, new research from Citigroup Global markets predicts the second half of this year will be "materially better" for oil and gas producers.

In a report released Tuesday, Citi Research predicted the global oil market will begin to balance by the end of the year and the New York-based investment bank sees the potential for a positive turnaround for oil and gas producers.

"After sharply under performing the broader market indices for two straight years, we're taking a more positive stance on the group with the view than an eventual upturn in oil prices will turn the tide for the E&P sector," Citi analyst Robert Morris said in a release.

Citi held its 2016 oil price forecasts unchanged at US$55 per barrel for West Texas Intermediate oil prices and US$60 for Brent prices - both of those predicted prices are significantly higher than the US$36 the two benchmark

THE BLUES Oil and gas companies could rebound in second half of the year: Citi

prices are trading at today.

Despite the upbeat view on the oil and gas industry's prospects, Citi predicts capital spending in the oil and gas industry will drop 26 per cent in 2016 over already sharply reduced 2015 levels, when capital spending was down 32 per cent in comparison with the year before.

Morris's report also upgraded the ratings on a number of North American oil companies, including Calgary-based Canadian Natural Resources Ltd., and said that a healthy balance sheet will be more important for stock valuations than a company's ability to grow.

Citi upgraded CNRL from "hold" to "buy" partly as a result of its relatively low debt levels and partly on the potential of the company's Horizon oilsands mine expansion project, which Citi expects to generate $5.3 billion in after-tax cash in 2018 and operate at a cost of $25 per barrel.

The bank maintained its "neural" and "high risk" rating on Encana Corp., another Canadian oil and gas producer, in its report but added that E n c a n a ' s management team had "consistently delivered on its commitment to reduce leverage," which will help improve its performance in the long-run.

Meanwhile, A m e r i c a n Petroleum Institute president and CEO Jack Gerard said at a luncheon speech in Washington, D.C. he expects oil and gas prices to become increasingly less volatile over the course of 2016 now that U.S. oil can be exported around the

BEATING THE BLUES Lagarde Calls for Diversification of Central Africa's Resources

Christine Lagarde

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nternational Monetary Fund chief Christine Lagarde urged central African states Friday to diversify their economies, which have been hit by plummeting petroleum prices and terrorism. The IMF managing director's three-day visit to Cameroon comes at a time when the war against terrorism and the crisis in the Central African Republic have negatively impacted the region's economies.

Christine Lagarde says although all six central African states counted on their petroleum resources to improve their economies, Gabon, Chad and Equatorial Guinea have suffered most as a result of reducing world prices. She says they did not diversify their economies like Cameroon did.

Lagarde says Cameroon's economy has also been affected by the war against the terrorist group Boko Haram, while the crisis in the Central African Republic made its economy decline sharply. And the Republic of Congo has suffered the effects of the economic slowdown.

Impact of drop in oil prices Lagarde says drastically reducing

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OIL AND GAS REPORT

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petroleum prices have had negative consequences on the economies of the six central African States. She says it is now imperative to drastically reduce ambitious development plans and invest wisely in projects that will improve the living conditions of g rassroots populations.

She says central African member states need to diversify their economies, promote regional integration and the free movement of people and goods, and work together to find solutions to their common problems because unity is strength.

The IMF estimates that performance in 2014 and 2015 deteriorated as a result of stagnating revenues and increasing e x p e n d i t u r e s. I t s a y s l o t s o f infrastructural projects are being financed by foreign borrowing thereby raising debt levels. Overall, fiscal deficit worsened from 4.1 percent of GDP in 2013 to about 6 percent in 2015.

Cameroon diversifies Alamine Ousman Mey, Cameroon's minister of finance, says in spite of the challenges, his country's economy has shown some resiliency because of the diversification that developed value chains in agriculture, the construction sector and energy supply.

International Monetary Fund Managing Director Christine Lagarde (R) walks with Cameroon's Minister of Finance Alamine Ousmane Mey after their meeting at the Ministry of Finance in Yaounde, Cameroon, in this Jan. 7, 2016 handout photo by IMF. He says his country has been resilient to economic and security shocks because it has diversified its economy.

BANISHIN’THE BLUES U.S. oil is too good, too pricey and too far for Asia buyers

International Monetary Fund Managing Director Christine Lagarde (R) walks with Cameroon's Minister of Finance Alamine Ousmane Mey after their meeting at the Ministry of Finance in Yaounde, Cameroon, in this Jan. 7, 2016 handout photo by IMF.

International oil prices have more than halved between 2014 and 2015 making it very difficult for the region where five out of its six member nations are oil producers. Additionally, terrorist threats that spilled over from Nigeria to Cameroon and Chad disturbed economic activity and generated additional budgetary spending.

Regional integration Lucas Abaga Nchama, governor of the Bank of Central African States (BEAC), blames the adverse effects on the international economic downturn and difficulties promoting integration in the region. He says inspite of the challenges, the central African currency, CFA, used in

the region remains strong.

He says it is imperative for central African states to promote regional integration and preserve its monetary union. He says it is in difficult moments that the strength of a currency is measured and that the CFA Franc has always been solid in times of crisis. He says the central bank will maintain monetary stability as one of the main conditions to achieve growth and that they are not thinking of changing the regions currency.

Christine Lagarde said her main call is for central African countries to implement reforms that will promote stronger and more inclusive growth and reduce social inequalities

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s the country inches toward ending the last restrictions on exports, Asian buyers will probably have a limited appetite for the quality of crude on offer. Many of the region's refiners are geared to process heavier, cheaper oil with higher sulfur content. The lighter and cleaner shale oil from the U.S. has also got about a third farther to come than alternative supplies from the Middle East and that represents an additional cost.

"U.S. light oil economically is not viable for most of Asian refiners," B.K. Namdeo, head of refineries at state-run Hindustan Petroleum Corp., said by phone from New Delhi. "The majority of the refiners in this region are not configured to use light oil, plus there is a long charter time and high freight costs involved."

Horizontal drilling and hydraulic fracturing has unlocked a flood of light, sweet oil from shale rock, pushing the U.S. toward ending its 40-year export ban.

President Barack Obama is expected to sign legislation that will end the restrictions, the culmination of years of lobbying by an industry faced with a domestic oversupply.

Shipping Costs Oil buyers in Asia are already reaping the benefits of a global glut that's driven prices down about 35% over the past year. The Organization of Petroleum Exporting Countries, which supplies the region with most of its oil, has effectively decided to abandon production limits in the hope that unrelenting stream of cheap crude will

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squeeze out rivals. That's treated Asia to a steady flow of cargoes from the Middle East to Mexico, Nigeria and Russia as producers compete for market share.

For Japanese refiners, buying U.S. crude isn't profitable relative to Middle East supplies, according to Masashi Nakayama, the general manager for crude oil and tanker department at Cosmo Oil Co. It takes a tanker approximately 27 days to reach the Japanese port of Chiba from Saudi Arabia's Ras Tanura terminal, versus 38 days for a ship departing from Houston, according to Sea-Distances.org.

U.S. benchmark West Texas Intermediate crude cost about $2.09/bbl more than the Middle East's Dubai oil on Friday, according to data compiled by Bloomberg. As recently as March, it was $7 cheaper. The U.S. marker grade was 79 cents below Brent, up from a discount of about $7.50 at the end of March.

Displacement Higher shipping costs add to the premium for U.S. oil. An Aframax-sized tanker, which is typically used to carry American supplies to northeast Asia, costs about $5/bbl from the U.S., compared with about $2.25/bbl for a Very Large Crude Carrier from the Middle East, the mostfrequently used ship for that route, according to Clarksons and Braemar ACM shipbrokers.

"For Asian refineries, it won't be cost effective to use U.S. light oil," said Arun Kumar Sharma, finance director at Indian Oil Corp., the country's biggest refiner.

"But Asian refiners will benefit from those displaced volumes that U.S. tight oil will replace," which may come from the Middle East or Africa, he said.

Some cargoes of U.S. condensates, a very light type of oil typically produced along with natural gas, have been making their way to buyers in Asia this year. The shipments aren't profitable with current regional price differences and freight rates, according to a survey Wednesday of three buyers and producers.

The Asia-Pacific region will consume 31.93 MMbopd in 2015, exceeding demand of 31.17 MMbbl from the Americas, the International Energy Agency said in a report on Dec. 11. China, India, Japan and South Korea will be among the biggest users of crude, according to the Paris-based agency.

Blending Up Both Japan and South Korea relied on the Middle East for about 84 percent of their oil imports last year, according to the U.S. Energy Information Administration. The region accounted for about 62% of India's overseas supplies and 52% for China.

China, Asia's biggest importer, may purchase U.S. oil as the country's independent refiners seek lighter crudes to mix with heavier, cheaper feedstocks, according to Wu Kang, a Beijing-based analyst with FGE, an energy researcher.

Smaller plants, known as teapots, account for almost a third of the nation's processing capacity and 13 of them have been granted import quotas totaling a combined 55 million tons, or 18% of nation's annual imports.

U.S. producers may find a more attractive outlet in Latin America, where refiners are in need of light, sweet shale oil that can help dilute heavier crudes common to the region, said Ehsan Ul-Haq, a senior analyst at KBC Energ y Economics.

It's also not always about money. Buyers in Japan and South Korea have welcomed the arrival of U.S. barrels because it adds another option to choose from for countries that rely heavily on the Middle East.

"If U.S. crude exports become reality, supply sources will be largely diversified," Yoshihide Suga, Japan's chief cabinet secretary, said recently "That will result in contribution to Japan's energy security.�

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ECONOMY

ENVIRONMENT

CURBING CLIMATE CHANGE Cement industry aspires to reduce Co2 emissions 20-25% by 2030

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he cement industry is calling for a long-term policy to help drop emissions by 20-25% by 2030.

The Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD) calls for an international CO2 policy framework and the removal of existing barriers in order to unlock the sector’s full reduction potential.

Peter Bakker, President and CEO of WBCSD, said: “Cement production accounts for approximately 5% of worldwide man-made CO2 emissions.

This collective effort by the cement industry to mitigate its emissions is highly encouraging and showcases the importance of leadership and collaboration in making the transition to a low carbon economy.

“These business measures can only achieve their full potential if backed by the right policy frameworks and financial incentives. We count on the support of policymakers worldwide and the financial community in removing the barriers to scale up.”

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The Low Carbon Technology Partnership initiative (LCTPi) is a group of businesses dedicated to reducing these emissions and they are now ready to move towards implementation. There are many ways to reduce emissions but financial and political constraints often hold businesses back. The whole private sector needs to be involved in order to make the most of the technology that’s already there to hit reduction targets.

The LCTPi Cement report identifies a range of actions that tackle emissions of the sector, including expanding the use of alternative fuels and cement components, developing new low carbon cements, looking into avoided emissions in the use phase of concrete as a sustainable building material and exploring novelties in the production process.

Eric Olsen, CEO of LafargeHolcim said: "Since 2001 the cement sector has demonstrated its ability to make progress on mitigating its impact on climate change. The LCTPi provides additional opportunities to accelerate these efforts and widen engagement through actions

EXPECT THE UNEXPECTED by all members of the industry, together with other stakeholders, to overcome barriers and achieve performance matching the best in the sector.”

List of companies supporting the Action Plan:

•Cementos Argos •CEMEX •CRH •Dalmia Cement •GCC •HeidelbergCement •InterCement •Italcementi Group •LafargeHolcim •SCG Cement •Secil •Shree Cement •Titan •UltraTech Cement •Votorantim Cimentos •West China Cement Engaging the building and infrastructure value chains to reduce cement’s footprint will further contribute to the use of concrete as a sustainable and resilient construction solution.

Sub-Saharan Africa to see modest growth in 2016

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conomic growth in sub-Saharan Africa is forecast to pick up to 4.2% this year, as commodity prices stabilise and electrical power supply improves in many countries, the World Bank’s latest Global Economic Prospects report states.

Activity would vary across the region, with consumption growth remaining weak in oil exporting countries as fuel costs rise with the removal of subsidies and as currency depreciations erode consumer spending. In contrast, lower inflation in oil importing countries would help boost consumer spending.

Growth was expected to pick up moderately in the region’s three largest economies. Nigeria’s economy was forecast to expand by 4.6%, as efforts to rationalise the management and operation of the Nigeria National Petroleum Corporation could enhance revenues.

South Africa’s economy was expected to grow only modestly by 1.4%, compared with growth of 1.3% in 2015, as power supply and labour problems, subdued employment growth and higher interest rates crimp

growth, while growth in Angola was forecast to edge up to 3.3% this year from 3% in 2015 as the economy rebounds gradually from constrained government spending and elevated inflation.

With oil prices expected to remain low, fiscal revenues were also likely to decline in Angola and Nigeria, leading to deficits. Budget gaps were also anticipated to remain high in oil importing countries as government spending continued to grow.

Foreign investment into commodity exporters was also likely to slow as a result of the fall in commodity prices.

However, in some low-income commodity exporters, governments are expected to invest heavily in energy and transport infrastructure, drawing on bond issuances, as in the case of Ethiopia; public-private partnerships, as in Mozambique, Rwanda and Tanzania; and financing from China.

Meanwhile, the report found that activity in some frontier markets was set to accelerate, with growth in Ghana forecast to recover to 5.9% from 3.4% in 2015 owing to rising oil production

and shrinking budget and trade gaps. Kenya’s growth was also projected to pick up to 5.7% this year from 5.4% in 2015 as a result of large-scale infrastructure projects, which included a new port and expansion of the railway system that should help support trade. Further, low-income countries were on track to grow rapidly as a result of limited exposure to commodities that have seen the sharpest price drops, and as large-scale infrastructure projects unfold.

Public investment, consumer spending and mining production were projected to support high 2016 rates of growth in Co^te d’Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania.

However, the report warned that the global economic environment was likely to be less conducive to growth in sub-Saharan Africa in coming years as lower commodity prices and tighter financial conditions held activity back.

Many countries had sizeable fiscal and current account deficits and rising debt levels, rendering them vulnerable to currency pressures, inflation and diminished business confidence if these conditions were to deteriorate.

World Bank Group development prospects director Ayhan Kose highlighted that, through the implementation of credible macroeconomic and financial sector policies, emerging markets could further build resilience to the global downturn.

“Emerging and developing economies could stimulate growth through fiscal and monetary policy measures, provided that they have sufficient room in their budgets and central bank policies to undertake such steps,” he said.

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EDUCAATION

EDUCAATION Ajasin University, Akungba Akoko stands out in terms of delivering the sobriety that the convocation ceremony comes with. He encouraged the University to continue to celebrate merits, and as a symbol of his belief in the celebration of merit, he offered the 18 graduates who finished with first class honours, immediate employment in the state civil service.

The convocation ceremony was more graceful than the previous ones and the visitor to the University congratulate the graduands on their experience uninterrupted academic sessions, which is a rare feat in most Nigerian Universities.

CONFIRMING

LEADERSHIP

Chief Bisi Ogunjobi, a notable economist in Nigeria and beyond was recently conferred with a Doctorate degree in Business Administration

by Adekunle Ajasin University, Akungba, Akoko TEMITAYO BADEWOLE

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dekunle Ajasin University, Akungba, Akoko had its sixth th convocation on the 19 of December 2015, and the event was graced by royal fathers in Ondo State, the former minister of Agriculture and current President of the African Development Bank, Akinwunmi Adesina, visitor to the institution and Ondo State Governor, Dr. Olusegun Mimiko, Olugbo of Ugbo, Oba Federick Akinruntan, who is also the CEO of Obat Group of Companies, Chief Bisi Ogunjobi, Chairman, Federal Mortgage Bank of Nigeria among other notable dignitaries.

The Vice Chancellor of the University, Prof. Igbekele in his welcome address congratulated the graduands on the occasion of their successful completion of their academic session. According to him, 26

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the University has received several national and international accolades, some of which include the Nigerian University Commission ranking it as the best state university in Nigeria 6 years after its birth, and the in 2014, the U n i t e d S t a t e Tr a n s p a r e n c y International Standards named it as the best State University in Nigeria. This, he

attributed to the activities of his predecessors, especially Prof. Olufemi Mimiko and the vision of its founding fathers to build a University of great academic standard.

In recognition of their contribution to the development of the Nigerian society, the president of the African Development Bank, Dr. Akinwunmi Adesina, Olugbo of Ugbo Kingdom, Oba Federick Obateu Akinruntan and Chief Bisi Ogunjobi, Chairman, Federal Mortgage Bank of Nigeria were also conferred with Honourary degrees.

Chief Bisi Ogunjobi, a notable economist in Nigeria and beyond was especially conferred with a Doctorate degree in Business Administration.

He expressed his appreciations towards the University for the honour bestowed on him, and expressed his fulfillment over the award given to the first Nigerian to be at the helms of affairs at the African Development Bank. He however urged that research be encouraged by native philanthropists. He also challenged the University to work with his foundation, the Bisi Ogunjobi Foundation, to ensure the achievement of relevant results from researches, such as a uniform tongue for Akoko land.

The visitor to the University, Ondo State Governor, Dr. Olusegun Mimiko, also received the award of excellence in education development from the University. According to him, Adekunle

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