SPECIAL INTERVIEW Dr. CELINA MADUEMEZIA, FNES, FNCF, MIPAN
PROF. LAWRENCE EZENMONYE PRESIDENT, NES
Speaks on policy and advocacy, and the need for government to take environment matters seriously
PROF. OLADELE OSIBANJO PRESIDENT, WAMASON
THE ENVIRONMENT AS THE WORLD CELEBRATE WORLD ENVIRONMENT DAY 2017 “CONNECTING PEOPLE TO NATURE” PROF. OLADELE OSIBANJO AND PROF. LAWRENCE EZENMONYE SPEAK ON THE IMPORTANCE OF THE THEME TO NIGERIA
Nigeria’ No. 1 Development Professional Journal
The built Environment Professionalsâ€™ Leadership Series on Sustainable Infrastructure
Unlocking the Potentials of Engineering for Economic Growth Engr. Otis Oliver Anyaeji, FNSE, FAEng, President Nigerian Society of Engineers has been in the saddle and leading the largest professional body for over a year. His activities since assumption of office has brought to the fore the importance of engineering in economic development and our national lives.
Engr. Otis Oliver Anyaeji, FNSE, FAEng President, Nigerian Society of Engineers
CED Magazine through the ConstructSkills Conversation platform is hosting Engr. Otis Anyaeji to a breakfast conversation where he is expected to unravel the potentilas of engineering to economic growth. The event will also see Engr. Otis Anyaeji walk away with the prestigious CED Magazineâ€™s Professional Man of the Year Award.
Date: Thursday June 29, 2017 Venue: NAF Center, Central Business District, Abuja Time: 9am
For Details and Seat Reservation Contact: Festus Oseji - 081 370 9831; 0805 976 4839 E-mail:email@example.com; firstname.lastname@example.org www.cedmagazineng.com
African Union Scientific Technical Research Commission
First Announcement: Nigerian Environmental Society (NES) 27th Annual Conference/AGM, 2017 in collaboration with African Union Scientific Technical Research Commission (AU-STRC), holds in Port Harcourt, November, 2017 Theme
Deployment of Green Initiatives for Diversification of the Economy: Challenges and Prospects for Africa
DEVELOPING STROY functions. The Board shall be a 9-member mix of Executive and Non-Executive Directors as follows:f) a non-executive Chairman; g) the Managing Director of the Management Company; h) 2 other Executive Directors of the
Management Company; i) one non-Executive Director who is distinguished in petroleum management with at least 10 years experience in management position in a petroleum company; j) 4 other non-Executive Directors. The procedure for nomination and appointment are described in detail in the Bill. 184.108.40.206 Funding Funding will be by Appropriation. 220.127.116.11 Impact on Government Revenue The National Petroleum Assets Management Company (NPAMC) is designed to be a lean organization, with significantly lower cost than currently obtains in NNPC. Therefore, the funding requirement (through appropriation) will not be significant. In addition, there will be direct revenue flow into the Federation Account from the investments held by NPAMC (such as the PSCs). This avoids the current scenario where the money first flows into NNPC and may potentially be used to defray costs of other business operations. 2.3.3 Repeals, Transitional and Savings Provisions From the Effective Date of the Petroleum Industry (Governance and Institutional Reforms) Act, the NNPC Act, NNPC (Projects) Act and NNPC Amendment Act shall be deemed to be repealed on the date that the Minister signifies by legal notice in the Gazette that the assets and liabilities of NNPC are fully vested in successor entities. And, within three months from the Effective Date, the Minister on the advice of the Commission, or NNPC as the case may be, may make any further transitional and savings provisions as are consistent with the transitional and savings provisions in this Act. www.cedmagazineng.com 50 || www.cedmagazineng.com MayApril 2017 2017
STANDING UP FOR THE ENVIRONMENT
EMBRACING THE SYSTEM As the world marks the 2017 world facility management day experts tell government to e mbrace facility management1
acility management experts have called on the government to embrace and encourage maintenance culture in the country. The experts, who spoke during the commemoration of the 2017 World Facility Management Day organised by the International Facility Management Association, Nigeria Chapter, noted that many of the nation's infrastructure were in a deplorable state. Nollywood actress, Joke Silva, who was one of the panellists at the event, said the government had continued to invest in infrastructure without putting adequate maintenance plan in place for them. "Look at the National Arts Theatre for instance, 40 years after it was built, we can hardly do anything there. No matter the structure we build, if we do not maintain the ones we have, they will run down. We must realise that the maintenance of infrastructure speaks a lot about a people," she said. Silva added that the government must stop playing politics with the nation's infrastructure. The Chief Executive Officer, Planet Projects, Mr. Biodun Otunola, said the country had so much potential but lacked a maintenance culture, adding that every facility in the country deserved proper management. "Why do we spend so much on building these facilities and cannot spend 0.001 per cent on managing them? We have the capacity to replicate every standard elsewhere in the world here in Nigeria," he said. Otunola, whose company is in charge of
the multi-storey bus terminal in Oshodi, Lagos, said Nigerian professionals had a lot of ideas that could transform the country but needed the right environment to flourish. "Foreign investors have no interest of the country at heart and we can't solve Nigeria's problems by focusing on the elite. Our future lies in developing our own champions," he said. He added that the government should develop public transportation by investing more in mass transit. "All the airports in Nigeria process less than 35,000 people every day and we spend over N200bn annually for maintenance and the motor parks process more than 50,000 people, yet we spend nothing on them," he said. He also urged Nigerian professionals to take their place in the maintenance of infrastructure rather than sit back and watch foreigners take up all the projects without adequate supervision. According to the President, IFMA Nigeria, Mr. Pius Iwundu, the theme of the 2017 World FM Day, 'Enabling positive experiences' emphasizes facilities management's significant role in setting and managing the scene for and delivering exce ptional customer experiences worldwide across multiple sectors. The immediate past President of the chapter, Ms. Iyabo Aboaba, said the attitude to maintenance culture in the country should be changed. "We need to get this country moving, our maintenance culture is very bad," she added.
As the World Celebrates the 2017 World Environment Day with theme- â€œConnecting People to Natureâ€?Prof. Oladele Osibanjo and Prof. Lawrence Ezenmonye speak on the importance of the theme to Nigeria
8 ASCE - NIGERIA EVENT
GETTING THE STRATEGY RIGHT
Recession: Engineers' forum seeks investment in infrastructure, solid minerals, agriculture as way out
CORPORATE INTERVIEW MAKING THE DIFFERENCE TUNDE ADEMOLA OLATUNDUN, Chief Executive Officer, ISTHMUS ENGINEERING LIMITED speaks on the position of the firm in the construction industry and the projects executed
PROFESSIONAL INTERVIEW LEADING THE REFORMATION Dr. Celina Maduemezia is the Principal Consultant of Enville Environmental Consultants Ltd She spoke on the transformation that has taken place in the environment sector over the years and her contributions to the sector
ASHAWA CONSULTS LIMITED Ashawa Consults Limited is a Nigerian registered Environmental consulting firmwith global outlook
43 TECHNOLOGY WHY THE CONSTRUCTION INDUSTRY MAY BE ROBOT-PROOF With housing, the manufacturer often has very little control over the environment in which it operates. www.cedmagazineng.com May 2017 | 3
PIGB: FOR THE RECORE
WINNING BIG Rouhani win seen speeding Iran’s Oil push amid President Trump threats
24 SELL IT! President Trump’s bid to sell U. S. reserve oil could undermine OPEC cuts
DEVELOPMENT Festus Njuwe
25 FOR SUSTAINED GROWTH Nigeria's oil production per barrel costs over $20
45 AFFORDABLE HOUSING COMING Shelter Afrique,UN-Habitat commit to tackling affordable housing 8 THE ONLY WORLD WE HAVE Connecting People to Nature - in the city and on the land, from the poles to the equator 4 | www.cedmagazineng.com May 2017
TRANSPORTATION AWAITING GE’S 20 LOCOMOTIVES To show that it means business, United States (US) industrial giant General Electric (GE), the narrow gauge concessionaire is bringing in 20 locomotives by May 29. The locomotives are at no cost to the government, according to Minister of Transportation Mr Rotimi Amaechi.
entity across the value chain. b) the Nigeria Petroleum Assets Management Company which shall be responsible for the management of the Federation's oil and gas investments in assets where government is not obligated to provide any funding. Both companies will be incorporated within three months of passing this Bill into law. It is expected that this unbundling will e n h a n c e t h e c o m m e r c i a l f o c u s, perfor mance, transparency and accountability, as well as provide the necessary platform for a lasting solution to the perennial funding incapacity of the NNPC. Why two companies? A number of factors were taken into account in determining the appropriate approach for the restructuring of NNPC. One major consideration was the need to create a financially sustainable entity with the ability to source independent (nonbudgetary) funding for joint venture o p e r a t i o n s, w h i ch h ave s u f f e r e d significantly from inadequate funding. In analysing the assets of the current NNPC, it was observed that some of them, in particular, those under the PSC do not require upfront funding. Therefore these assets are proposed to be warehoused in one entity - the Management Company, whilst the other assets would be held by the National Petroleum Company, which would be able to secure external funding outside of the budgetary system. Some of the direct and immediate benefits of the break-up of the NNPC include the following:a) Smaller, manageable entities b) Enhance focus on strategic interests as well as cost management c) Minimise cross subsidisation d) Enhance revenues to the Federation via distinct and disciplined collection processes e) Robust liabilities management. A2.3.1 The National Petroleum Company A new limited liability National Petroleum Company initially wholly owned by the Nigerian Government will be established to operate as a world class commercial integrated and international entity. A18.104.22.168 Mandates The key mandates for the National Petroleum Company are as follows:a) to engage in the commercial business of
finding, producing, refining, transporting, storage and marketing hydrocarbons in a profitable manner; b) exploit hydrocarbon resources within and outside Nigeria; c) purchase and market crude as well as its by-products. A22.214.171.124 Governance and Controls As a company incorporated under CAMA, most of the governance and control elements will be defined in the Articles of Association. At the time of its incorporation, the initial shares of the National Petroleum Company shall be held by the Ministry of Finance Incorporated and the Bureau for Public Enterprises on behalf of the Government. It will have clear bottom line accountabilities, free of political interference and subject to full compensation. Within a period of 6 years, up to 30% of the shares will be publicly offered on the Nigerian Stock Exchange. This partial privatization and public listing will hopefully instil and entrench world class corporate governance principles and discipline in the NPC's business operations. The company shall be governed by a Board comprising of solid individuals with proven integrity, relevant experience and competencies to effectively deliver its functions. The Board shall be a 9-member mix of Executive and Non-Executive Directors as follows:a) a non-executive Chairman; b) the Managing Director of the Petroleum Company; c) 2 other Executive Directors of the Petroleum Company; d) one non-Executive Director who is distinguished in petroleum management with at least 10 years experience in management position in a petroleum company; e) 4 other non-Executive Directors. The procedure for nomination and appointment are described in detail in the Bill. A126.96.36.199 Funding At take off, it will be necessary for g over nment to provide adequate capitalization for future operations. Thereafter, the NPC is expected to source all its funding similar to all other limited liability companies. A188.8.131.52 Impact on Gover nment Revenue
The formation of the National Petroleum C o m p a n y w i l l p o s i t ive l y i m p a c t government revenue flows in the following ways:1 The annual JV cash call obligations (currently at about $5b per annum) will be eliminated. This fund can be channeled to the development of other sectors of the Nigerian economy. 2 There is currently an estimated $5-10bln funding shortfall per annum, due to government's inability to fully fund its JV investment requirements. Removal of this constraint will enable more investment in JV operations, with the attendant increase in production and revenue. The increased production will lead to more revenue for government through higher royalty and tax receipts. 3 The equity crude currently received by government will no longer be available. However, the impact on government revenue stream will not be significant, as over 95% of government revenue is made from royalties and taxes. 4 The National Petroleum Company will pay dividends to the government out of its profits, similar to what currently obtains in NLNG. A2.3.2 The National Petroleum Assets Management Company A new limited liability entity known as the Nigeria Petroleum Assets Management Company shall be established and responsible for the management of the Federation's oil and gas investments in assets where government is not obligated to provide any funding, investment capital or operating costs. It will be 100% State owned, ensuring maximum value realization for the Federation through rigorous management of the assets and investments vested to it. 184.108.40.206 Mandates Its core mandates will be to:a) manage the Federation's petroleum assets and maximize returns on investment b) negotiate and enter into new exploration and production agreements on behalf of the Federation c) monitor costs as well as revenues of its businesses to ensure maximum returns to the Federation. 220.127.116.11 Governance & Controls The company shall be governed through a Board comprising of solid individuals with proven integrity, relevant experience and competencies to effectively deliver its
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PIGB: FOR THE RECORE Commission A single and one stop shop Petroleum Regulator y Commission is hereby proposed for the petroleum industry, consolidating such roles currently largely resident in the Department of Petroleum Resources (DPR), the Petroleum Products Pricing Regulatory Agency (PPPRA), and some environmental regulations driven by the National Oil Spill and Detection Agency (NOSDRA). A2.2.1 Mandates The core mandates of the Commission are as follows:a. promote the healthy, safe and efficient conduct of all petroleum operations; b. promote the efficient, safe, effective and sustainable infrastructural development of the petroleum industry; c. ensure compliance with all applicable laws and regulations governing the petroleum industry; d. determine and ensure the implementation and maintenance of t e c h n i c a l s t a n d a r d s, c o d e s a n d specifications applicable to the petroleum industry; e. subject to the provisions of this Act, execute Government policies for the petroleum industry assigned to it by the Minister; f. promote an enabling environment for investments in the petroleum industry; g. ensure that regulations are fair and balanced for all classes of lessees, licensees, permit holders, consumers and other stakeholders; and h. implement such other objectives as are consistent with the provisions of this Act. In addition to the above and other roles detailed out in the bill, it shall:i. undertake and promote the exploration of the frontier basins of Nigeria. j. develop exploration strategies and portfolio management for the exploration of unassigned frontier acreages in Nigeria; k. identify opportunities and increase information about the petroleum resources base within all frontier acreages in Nigeria; l. undertake studies, analyse and evaluate all unassigned frontier acreages in Nigeria. Detailed tasks, responsibilities and deliverables are listed in the Bill. A2.2.2 Governance & Controls The size and powers of the Commission requires effective governance and controls to assure delivery as envisaged, in addition to reducing abuse to the absolute minimum. At the same time, there is need to ensure maximum independence of the new Nigeria Petroleum Regulatory Commission 48 || www.cedmagazineng.com www.cedmagazineng.com May 2017 April 2017
and limit political interference in particular on technical decisions. To this end, the Commission is proposed to be governed by a 9-man board comprised of politically autonomous individuals with proven integrity, relevant competencies and experience to effectively deliver on core functions. These are: a) a non-executive Chairman; b) one non-executive Commissioner; c) the Executive Vice Chairman, who shall also be the accounting officer of the Commission; d) three Executive Commissioners; e) a representative of the Ministry of Petroleum Resources who shall not be below the rank of Director; f) a representative of the Ministry of Finance who shall not be below the rank of Director; g) a representative of the Ministry of Environment who shall not be below the rank of Director; All appointments shall be made by the President and confirmed by the Senate. It is expected that the Board will operate outside the 4-year electoral cycle to safeguard continuity. The Board shall:a) be responsible for the general direction and supervision of the Commission; b) oversee the operations of the Commission; c) provide general guidelines for the carrying out of the functions of the Commission; d) review and approve the business, strategic and operating plans of the Commission; e) Consider and approve the budget of the Commission and monitor its performance; f) Approve the audited and management accounts of the Commission and undertake consideration of the management letter from the external auditors; g) determine the terms and conditions of service of employees of the Commission; h) stipulate remuneration, allowances, benefits and pensions of staff and employees of the Commission in consultation with the National Salaries, Incomes and Wages Commission; i) structure the Commission into such number of departments as it deems fit for the effective discharge of the functions of the Commission; and j) carry out such other functions and undertake such other activities which in the opinion of the Board, are necessary to
ensure the efficient and effective administration of the Commission in accordance with the provisions of this Act or as may be delegated to the Commission by the Minister. A2.2.3 Funding The Commission shall ensure that all monies accruing from upstream leases, bonuses, lease renewal fees, assignment fees and concession rentals charged under any Act, enactment or any subsidiary legislation or regulation made pursuant to this Act are paid into the Federation Account. However, the Commission shall establish and maintain a fund ('the Fund') from which all expenditures incur red by the Commission shall be defrayed. Such funds shall only be limited to the following sources:a) appropriation to the Commission from time to time by the National Assembly; b) fees charged for services rendered to holders of licences, permits or other authorizations; c) penalties and fines levied by the Commission d) income derived from publications produced by the Commission and from reviews of environmental impact assessment reports and environmental evaluation reports and other related activities; e) fees for services rendered to nonpetroleum producing companies and service companies and for other services performed generally; f) gifts, loans, grants-in-aid; and g) fees charged for sale of data acquired by the Commission. The Commission shall apply the proceeds of the Fund:a) to meet the administrative and operating costs of the Commission; b) to provide for the payment of salaries, wages, fees or other remuneration or allowances, pensions and other retirement benefits payable to staff or employees of the Commission; c) for the maintenance of property acquired by or vested in the Commission. A2.3 The Commercial Entities A major proposal in this bill is the commercialisation of the old NNPC by unbundling its assets, liabilities and businesses into two incorporated companies viz:a) the National Petroleum Company (NPC) which shall be an integrated oil and gas company operating as a fully commercial
“CONNECTING PEOPLE TO NATURE”
The greening of the economy,” refers to how consumers, businesses and government are improving environmental performance while fostering economic growth. Using it in the context of cities, we refer to how states, local council policy-makers are greening the economy by incorporating environmental elements into urban development strategies.
The reality is that federal and state legislators are not in a position to develop the “bottom up” policy required to address the specific and often differing needs of the businesses, citizens and consumers in all the various local councils within their jurisdictions.
Developing policy that is both good for the environment and the economy is challenging. The reality is that federal and state legislators are not in a position to develop the “bottom up” policy required to address the specific and often differing needs of the businesses, citizens and consumers in all the various local councils within their jurisdictions. Local Council policymakers, on the other hand, have the defined scope and legislative authority necessary to create regulation tailored toward the specific needs of the local councils they serve. Local Council environmental policy can result in more than just environmental benefits. It can be designed to meet the environmental challenges of urban development, while creating jobs, improving living conditions and fostering economic growth. In recent years New York City (NYC) has made tremendous progress in reducing its environmental footprint and is now hailed as one of the greenest cities in the United States. This success can, to a large extent, be attributed to strong leadership coupled with progressive environmental policy which views the environment not as a cost, but as an opportunity. Environmental policy is used to help solve “big picture” issues related to urban development, such as expansion, unemployment and public health. As the World marks the 2017 World Environment Day on June 5, 2017 with the themeConnecting People to Nature, we believe the event should go beyond celebration by focusing, especially in Nigeria on the how businesses could connect with people through strategic policies and action. It is against this backdrop and many other issues around the environment that CED Magazine in collaboration with Inside Business Africa put together a special report for both the print and electronic media with emphasis on the above scenarios. The report incorporates ctivities of critical stakeholders and the key players who, one way or the other have all contributed to the growing awareness and policy formulation to the industry and the practitioners in the environment sector value chain. We sincerely hope the report and the series of interviews presented in this edition will go a long way to stimulate new thinking on the need to take the issue of the environment seriously while working with global partners and professionals on the new initiatives as the world celebrate yet another world environment day 2017 with the theme “connection people to nature www.cedmagazineng.com May 2017 | 5
PIB: FOR THE RECORD
ENVIRONMENT HIS TURF
Prof. Oladele Osibanjo
rofessor Oladele Osibanjo was a Professor of Analytical and Environmental Chemistry at the University of Ibadan until he retired on 31st December 2015. He graduated BSc. Honours Chemistry (Second Class Upper Division) University of Ibadan, Nigeria in 1970; MSc. Analytical Chemistry 1973 and PhD Analytical Chemistry 1976 both from University of Birmingham, Edgbaston, United Kingdom. He won the Elwell Award of the Royal Society of Chemistry, Midlands Region, United Kingdom in 1976 for contribution to the development of Analytical Chemistry based on findings in his PhD thesis. He was the Regional Advisory Editor for Africa of THE ANALYST LONDON (International Journal of Applied Analytical Chemistry of the Royal Society of Chemistry, United Kingdom) 1980 - 1996. He is an internationally renowned scholar and environmental consultant to some United Nations Agencies including UNEP and UNIDO. He had also consulted for the World Bank in the past. He analyzed for the Federal Government of Nigeria, the consignments of toxic wastes from Italy illegally dumped in Koko port in the defunct Bendel State in 1988. This incident led to the beginning of environmental governance in Nigeria with the establishment of Federal Environmental Protection Agency (FEPA) by Decree 58 of 1988. FEPA later metamorphosed into the Federal Ministry of Environment in 1999. Prof. Osibanjo was FEPA's Resident Consultant from 1990 to 1992 during which period he assisted the young agency with capacity building, development of programmes, environmental protection guidelines and standards; including the preparation of the 1991 Guidelines and Standards for Environmental Pollution Control in Nigeria (FEPA Green Book). He was a member of the National Committee on the Implementation of Environmental Impact Assessment (EIA) in Nigeria. He was responsible for the preparation of the Draft 1995 EIA Guidelines for the Oil and Gas Industry projects in Nigeria; as well as the 1995 EIA Guidelines for the Mining of Solid Minerals, Beneficiation and Metallurgical Processes. He was the national Coordinator of Nigeria Stockholm Convention national Implementation Plan Project (NIP Report submitted to Stockholm Secretariat in 2008). He was a past Chairman United Nations Joint Agencies Group of Experts on Scientific Aspects of Marine Pollution (GESAMP), a "Think Tank" for the United Nations on marine pollution issues. Prof. Osibanjo was one of the Recipients of the Zayed Prize awarded to the Authors of the "Millennium Ecosystem Assessment "Report for Scientific and Technological Achievements in Environment in February 2006. He is also a Lead Author, Chapter 6 on Chemicals and Wastes; UNEP Global Environmental Outlook Report 5 (UNEPGEO 5 Report) which was launched at the Rio+20 in Brazil in June 2012. He was appointed member UNEP Foresight Process on Emerging Global Environmental Issues in April 2011 which publication "21 Emerging Global Environmental Issue in the 21st Century" was also launched at Rio+20 Rio de Janeiro, Brazil in June 2012. Prof. Osibanjo is a past National President, Chemical Society of Nigeria (CSN) 1991 - 1995; and the Pioneer President and Chairman of Governing Council, Institute 6 | www.cedmagazineng.com May 2017
of Chartered Chemists of Nigeria (ICCON) 2001 - 2005 - the regulatory body for the chemistry profession in Nigeria. He is a past Head of Department of Chemistry, University of Ibadan, Nigeria's premier university. He was the Executive Director, Basel Convention Coordinating Centre for Training and Technological Transfer for the African Region (BCCC - Africa in Nigeria) on Hazardous Waste and Toxic Chemicals management. BCCC Africa in Nigeria is a Federal Ministry of Environment - University of Ibadan Linkage Centre and Federal Ministry of Environment GEF/UNIDO designated Regional Geo-environmental Research Centre (GRC) for persistent organic pollutants (POPs) contaminated sites. It was Prof. Osibanjo through the Africa Core Group of Strategic Approach to International Chemicals Management (SAICM) supported by PERU that proposed E-waste as an Emerging Global Environmental Issue which was adopted at the Second International Conference on Chemicals Management (ICCM2) of SAICM in Geneva in 2009. He was Co-Chair, UNEP Basel Convention Partnership for Action on Computing Equipment (PACE) 2009 - 2015. Prof. Osibanjo was Coordinator in Africa of the Secretariat of Basel Convention (SBC) E-Waste Africa Project sponsored mainly by European Union. This study resulted in a Secretariat of Basel Convention publication "where are WEEE in Africa" with Prof. Osibanjo as one of the authors. The European Union announced that the findings from his project would influence new EU Regulations on the export of E-waste to Africa. He was the Chair of the Steering Committee of the SBC E-waste Africa Project. Prof. Osibanjo also chaired the UNEP First Pan African E-waste Forum held at UNEP Headquarters 14-16 March 2012. Prof. Osibanjo was appointed a member of the International Advisory Board of UNEP International Environmental Technology centre (IETC), Osaka, Japan in November 2012 - 2014. Not the least he was appointed to the Board of Electronic Recycling Industry in USA in February 2016. He is a renowned Environmental Consultant to the Federal Ministry of Environment, National Environmental Standards Regulations and Enforcement Agency (NESREA), National Oil Spill Detection and Response Agency (NOSDRA), and many State Ministries of Environment/Environmental Protection Agencies. Prof. Osibanjo is a Fellow, Chemical Society of Nigeria (CSN), Institute of Chartered Chemists of Nigeria (ICCON), Nigerian Environmental Society (NES), Institute of Public Analysts of Nigeria (IPAN) and not the least, Institute of Quality Assurance of Nigeria (IQAN). He is the current President, Waste Management Society of Nigeria (WAMASON). He has graduated over 200 MSc students and 27 PhD students and has over 150 publications to his credit as international journal articles, chapters in books, and commissioned technical reports. Furthermore, Prof. Osibanjo has been honoured with Lifetime Achievement Awards in Chemistry by the Chemical Society of Nigeria (CSN) in 2013 and the Institute of Chartered Chemists of Nigeria (ICCON) in 2016; while the Joint Secretariat of the Basel, Rotterdam and Stockholm Conventions of UNEP, Geneva, Switzerland also honoured him with a Lifetime Achievement for his contributions towards the development of these global conventions on Wastes and Chemicals and popularizing them among the public. Finally Prof. Osibanjo is happily married with children and grandchildren.
Petroleum Administration Reforms) Bill 3. Petroleum Industry (Downstream Petroleum Administration Reforms) Bill 4. Petroleum Industry (Fiscal Framework & Reforms) Bill 5 . Pe t r o l e u m I n d u s t r y ( Re ve nu e Management Reforms) Bill. A. Petroleum Industry (Governance & Institutional Reforms) Bill A1.0 Principles & Structure It is widely acknowledged that major reforms in the governance and institutional structure for the sector are necessary and urgent. A major drawback of the existing framework is the lack of clarity of roles, self- regulation, conflicts and unnecessary overlaps. For example, while the Minister is in charge of the Ministry of Petroleum Resources, and indirectly supervises the Department of Petroleum Resources (supposed to be an independent Regulator), he is also the Chairman of the Board of the Nigerian National Petroleum Corporation (NNPC) by law. The Minister therefore operates in a quasi- executive capacity across all facets of government involvement in the industry giving ample room for sustained failures in governance and performance. In addition, and in particular, the country is being robbed of huge revenues as a result of mismanagement of the NNPC, the intrusive control of the government in the affairs of the corporation, the confusion with the Regulator as well as funding difficulties. These continue revenues are needed primarily to grow the sector as well as support the much talked about diversification of the economy. The key objectives of the Petroleum Industry (Governance & Institutional Reforms) Bill are to:a) create efficient and effective governing institutions with clear and separate roles for the petroleum industry; b) establish a framework for the creation of commercially oriented and profit driven petroleum entities that ensures value addition and internationalization of the petroleum industry; c) promote transparency in the administration of the petroleum resources of Nigeria; d) create a conducive business environment for petroleum industry operations. In defining the new petroleum industry institutional landscape, the following principles were used to guide the overall framework:-
a) Clear delineation of government roles and responsibilities across the industry (Policy formulation, Regulatory oversight and Commercial operations); b) Simple and lean structure, devoid of unnecessary overlaps; c) Streamline the coordination role of the Minister; d) Creation of a single strong industry regulator; e) Unbundling of the existing NNPC to two Commercial entities limited by shares the NOC, and the National Assets Management Company; f ) E n s u r i n g s t r o n g g o ve r n a n c e , transparency and accountability in all institutions. Based on these principles, the institutions proposed in the Petroleum Industry (Governance & Institutional Reforms) Bill are as follows:1) The Minister, who shall be responsible for policy formulation and coordinating the affairs of the petroleum industry on behalf of the Federal Government. 2) The Petroleum Regulatory Commission, who shall be the industry Regulator and Watchdog, responsible for licensing, monitoring, supervision of petroleum operations, enforcing laws, regulations and standards across the value chain. 3) The National Petroleum Company, who will operate as a commercial entity, fully integrated across the value chain. 4) The National Assets Management Company, who shall ensure maximum value for the Federation through prudent management of the Federation's oil and gas investments in assets where Government is relieved of upfront funding obligations; eg. PSC assets. These institutions constitute the key structures necessary to assure effective governance and efficiency of the petroleum industry. It is recognised however that the following agencies do exist and contribute in one way or the other to the running of the industry. 1. The Nigerian Content Development &Monitoring Board (NCDMB) whose Act came into effect in April 2011 and already undergoing some amendment, hence remain as is. 2 . T h e P e t r o l e u m Te c h n o l o g y D e ve l o p m e n t F u n d ( P T D F ) h a s responsibility for providing funds for human capacity development in the industry. A separate bill has been developed for this to institute appropriate legislative framework which was never in place.
and Controls In line with the proposed structure of the industry, mandates, deliverables and control mechanisms, in particular for the effective governance of the various institutions are clarified in greater detail in the Bill. This narrative simply provides high level characteristics of each of the new institutions proposed in the Petroleum Industry (Governance & Institutional Reforms) Bill. A2.1 The Minister The Minister of Petroleum Resources will exercise general coordination powers and provide full diplomatic cover on all petroleum-related matters on behalf of the country. A2.1.1 Mandates Specifically, the Minister shall:a) be responsible for the determination, for mulation and monitoring of Government policy for the petroleum industry in Nigeria; b) exercise general coordination over the affairs and operations of the petroleum industry subject to the provisions of this Act; c) report developments in the petroleum industry to the Federal Executive Council; d) advise the Government on all matters pertaining to the petroleum industry; e) represent Nigeria at meetings of international organisations that are primarily concerned with the petroleum industry; f) negotiate and execute international petroleum treaties and agreements with other sovereign countries, international organizations and other similar bodies on behalf of the Government g) promote the strategic interest of Nigeria in the global oil and gas industry. The Minister will be empowered to source professional support on fixed term basis as needed without drawing resources from the Regulatory authority (e.g the DPR) or the National Oil Company (e.g. the NNPC) as currently is the case. Consideration was given to creating a new institution within the Ministry to cater for this but was subsequently discarded as it does not fit with the civil service framework. A2.1.2 Funding Funding of the office of the Minister shall be by appropriation by the National Assembly. A2.2 The Petroleum Regulator y
A2.0 Institutions, Roles, Governance www.cedmagazineng.com May 2017 | 47
PIB: FOR THE RECORD dispersed along the nature or type of product, company or project specific. In doing so, the indigenous "Sole Risk"/ independent players, should command attention under the nations priority policy that ensures indigenous capacity expansion in the petroleum value chain in Nigeria. The subsisting primary legislation that governed Oil & Gas in Nigeria are: A. The Petroleum Act, which came into force on 27th November 1969 and has been amended severally. From it , there exist subsidiary legislations (Regulations), as well as other related international Treaties. Accordingly, there are approximately 70 principal Legislations and 30 Regulations that govern the petroleum sector of Nigeria. The following regulations, amongst others are subsidiary to the Petroleum Act: o Mineral Oils (Safety) Regulations, Statutory Instrument 1963 No. 45; o Petroleum (Drilling and Production) Regulations, Statutory Instrument 1969 No. 69; o Crude Oil(Transportation and Shipment) Regulations, Statutory Instrument 1984 No. 1984; o The Oil Pipelines Act 1956; o The Oil Terminal Dues Act 1969; o The Associated Gas Re-injection Act 1979 o the Associated Gas Re-injection (and Flaring of Gas) Regulations 1979(as amended) B. The Petroleum Profits Tax (PPT) Act, which came into force on 1st January 1958, and has been amended many times. Its main purpose was to provide for the assessment and imposition of a tax upon the profits of enterprises engaged in the development and production of petroleum in Nigeria. Some of the amendments include; o The Deep Offshore and Inland Basin Production Sharing Contracts Act 1999 No. 9 (as amended); o Va r i o u s i n c e n t ive s u n d e r t h e Memorandum of Understanding (MOU) of 1986, 1991 and 2000, that were NOT enacted but put in place and implemented by the Tax authorities; C. The separation or distinction of crude oil and natural gas fiscal structure can be said to have begun with the introduction of incentives terms under the Associated Gas Framework Agreement (AGFA) of 1991. The terms promulgated under AGFA, as a policy and in context, attempted to further differentiate between Associated Gas (AG) 46 | www.cedmagazineng.com May 2017
and Non-Associated Gas (NAG). The existing legislations and fiscal incentives pertaining to gas are those of: o The Nigerian Liquefied Natural Gas Act No 39, 1990; o The Finance (Miscellaneous Taxation Provisions) Act No. 18, 1998 (Amendment to Petroleum Profits Tax Act); o The Finance (Miscellaneous Taxation Provisions) Act No. 19, 1998 (Amendment to the Petroleum Profits Tax Act) 3. The Nigeria Petroleum Industry Reforms Recognizing the positive contribution of the oil and gas industry to the Nigerian economy, the real and potential losses due to successive mismanagement of the sector, the Federal Government of Nigeria (FGN) launched a process of broad sector reform which commenced in the year 2000. The reform was meant to put in place an updated Nigeria Oil and Gas Policy as well as a legislative framework (Petroleum Industry Act) to enhance delivery of the sector objectives with emphasis on complete overhaul of the Nigeria petroleum industry, refor ming the operational mechanisms for the upstream, downstream and natural gas sectors, redefinition of the roles and responsibilities of key institutions, enhancement of p e r f o r m a n c e, a c c o u n t a b i l i t y a n d transparency, (Governance), licensing and acreage management, bringing operations in line with international standards and, not least, improve on tax codes for both oil and gas. Although the issues involved are complex, their resolution can be expected to have significant implications for investment flows, industry activity, and government revenues. The overriding objective of the National Oil and Gas policy was "to maximise the net economic benefit to the nation from oil and gas resources and to enhance the social and economic development of the people while meeting the nation's needs for fuels at a competitive cost, accomplishing all in an environmentally acceptable manner". Maximisation of the net economic benefit would include additions through appropriate fiscal regimes, sustained profitability of the sector, delivery of growth commercial activities, active local content policy and the development of improved direct linkages between the oil sector and the other sectors of the Nigerian economy. 4. The Nigeria Petroleum Industry Bill (PIB)
The Nigeria Petroleum Industry Bill (PIB), has been around in one form or the other since 2008 when it was first introduced. During the 7th National Assembly, additional efforts were made to pass the 2012 version of the PIB but it unfortunately was unsuccessful, similar to attempts at prior parliamentary sessions. Continuous stalling and delay in passage to law has hampered investments, keeping the country's future in limbo and denying Nigeria the unique opportunity as oil and gas leader in Sub Sahara Africa. Specifically, the main objectives remain relatively the same, spanning the spectrum of the industry to:1. Enhance exploration and exploitation of petroleum resources; 2. Significantly increase domestic gas supplies especially for power generation and industrial development; 3. Create a peaceful business environment that enables petroleum operations; 4. Establish a fiscal framework that is f l e x i b l e, s t a b l e, p r o g r e s s ive a n d competitively attractive; 5. Create a commercially viable National Oil Company; 6. Deregulate downstream petroleum business; 7. Create efficient regulatory entity; 8. Engender transparency and accountability; 9. Promote active Nigerian Content and make Nigeria the hub of the western African petroleum province, and 10. Promote and protect Health Safety and Environment. Apart from content issues with prior versions, one of the major drawbacks to passage was the bogus packaging of the PIB as a single legal instrument. Consequently, although this 2015 attempt contains enhanced quality work on content, the bill has been split into logical smaller pieces for submission to the 8th National Assembly, a complete departure from all prior efforts. This way, the pieces can be expeditiously considered and passed one after the other. And where amendments are required in the future, the relevant piece can be separately considered rather than opening up the whole Act for review. Accordingly, the following pieces of legislation will be considered for the Nigeria Petroleum Industry Bill - 2015. 1. Petroleum Industry (Governance & Institutional Reforms) Bill 2. Petroleum Industr y (Upstream
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JAWURAâ€Ś th e wise choice in environmental solutions www.cedmagazineng.com May 2017| 7
PIB: FORTHE RECORD
DEVELOPING STORY AFRICAN BUSINESS REPORT
GETTING THE STRATEGY RIGHT Recession: Engineers' forum seeks investment in infrastructure, solid minerals, agriculture as way out
HE American Society of Civil Engineers ASCE, at the weekend threw its weight behind the call for the revamping of the national economy which is currently going through crises, as an interventionist strategy to steer the country out of these economic crises. The Society which held a one-day seminar with the theme "Revamping the Nigerian Economy: A Look at Investment in Infrastructure, Solid Minerals and Agriculture" in Lagos, said timely investment in these sectors is the only way out of the nation's economic challenges. The chairman of the event, Babagana Mohammed, an engineer and Vice President, Nigerian Society of Engineers NSE, while commending the organisers of the seminar, particularly on the choice of the theme, said the one-day seminar couldn't have come at a better, pointing out that the option of investing in infrastructure and other sectors as canvassed by ASCE, would revamp the Nigerian economy and address other sundry issues 8 | www.cedmagazineng.com May 2017
associated with the recession. The Vice President of NSE, who noted that the collaboration between NSE and ASCE is a plus for the engineering profession in the country, however, lamented that "In engineering, we have not got it right in this country. Honestly if you ask me why, I will tell you I don't know why it is so. The engineers in government are not helping the engineers outside government. "The situation is not the same with law profession. Lawyers help themselves. So, my appeal today is that engineers in government must help those outside government with jobs
because so many engineers are jobless outside", Mohammed said. In his address, the President of ASCE, Blessing Tega Oboh, said the choice of the theme for the seminar was in response to the ongoing national economic crises in order to encourage policy makers in government and industry players into decisive actions to steer the economy out of recession. According to Tega Oboh who is a fellow of the Nigerian Institute of Civil Engineers, "For over four decades, the Nig erian economy has mostly depended on proceeds from the sale of crude oil. This is at the expense of other sectors such as solid minerals and agriculture that hitherto, contributed significantly to the economy of Nigeria. "Another area that will be looked into today is the concession of public infrastructure as it is widely agreed that public private partnership PPP, for infrastr ucture development or infrastructure concessions hold the key to bridging the abysmal infrastructure deficit in Nigeria as well as creating employment oppor tunities and contribution to poverty alleviation", ASCE president stated. In his submission, Mr. Vincent Nwani, Director, Research and Advocacy, Lag os Chamber of Commerce and Industry, who disclosed that Nigeria has 43 minerals located across the country, said the nation has large potentials in solid minerals, pointing out that if the country gets the problems of solid minerals right, the dependence on imports will be reduced. Nwani said legal and institutional frameworks must favour the development of solid minerals in the country, adding that ease of doing business must be in place, while investors friendly environment must be created to attract investors to solid minerals sector. According to him, "Without development of solid minerals, we are going nowhere in this country".
PETROLEUM INDUSTRY GOVERNANCE BILL 2017 ( AS PASSED BY THE SENATE) The Nigeria Petroleum Industry Legislation -Explanatory Memorandum for Governance & Institutional Reforms Background and Introduction This executive summary note narrates the principles and intent of the 2015 Petroleum Industry Legislation being prepared by the Technical Committee for submission to the National Assembly. The Technical Committee mandates include: a. Review the Oil and Gas Policy approved in 2007, for appropriateness; Review all available materials and information of the past reforms the Petroleum Industry Bill (PIB) 2008, 2012 and in addition to the PIB version passed by the House of Representatives in May 2015; c Consult and engage as necessary; d. Debrief relevant authorities as frequently as needed to ensure alignment and adequate guidance; and e. Redraft, present and commence submission of the PIB 2015, ensuring alignment with the Policy. It was expedient to go back and review the circumstances that led to the inability to establish an acceptable document and to enact the intended Petroleum Industry Bill in the past, which suffered a multiplicity of assaults from various players/stakeholders To arrive at the present proposition for the Petroleum Industry legislation-2015, this committee has employed thorough review of past documents, made comparative review of similar and competitive jurisdictions, and ensured international best practices in content and in style.
country for the foreseeable future. Nigeria currently produces about 2 million barrels of light, sweet quality crude oil per day, still the largest in Sub-Saharan Africa. It has proven oil plus condensate reserves of about 37 billion barrels. Both current oil production and reserves are far short of growth levels envisaged in the Vision 20:2020. Similarly, Nigeria produces approximately 8 bcf of gas daily of which some 50% goes for export while 13% (mainly associated gas) is flared. Natural gas reserves are substantial at about 183 trillion cubic feet (TCF), representing 3 percent of the world's total. Incidentally, gas is also not sufficiently addressed in the existing petroleum industry legislation. 2. Histor y of Petroleum Sector Regulation The history of petroleum legislations may be classified into three periods:a) Pre- colonial, under the British Colony,
1.1 Role of Petroleum to National Growth and Development Oil and gas have been, and will remain for years to come, Nigeria's most important non-renewable energy source, currently contributing over 90% of country's foreign exchange earnings and about 80% of recurrent and capital expenditure. The industry is therefore critical to the economic and social development of Nigeria. While the government's vision and aspiration continue to target diversification of the economy, the petroleum sector remains the primary source of revenues to make that happen as well as sustain the Senate President, Dr. Bukola Saraki
giving authority to the "Crown" for issuance of licences and taxation under the Minerals Ordinance Act of 1914; b) Post Independence Nigeria, (1960-1971), whereby only taxes were paid by companies involved in petroleum operations; and, c) Since joining the Organisation of Petroleum Exporting Countries (OPEC) in 1971, that created the enabling environment f o r g r e a t e r i nvo l ve m e n t by t h e Government, taking equity in petroleum assets and in operations, and as a prelude, ushered authority from 1969 of the Minister to create an Inspectorate Unit in the then Ministry of Mines & Power, as well as promulgate rules and regulations for the sector. This authority was upped by the 1977 legislation creating a commercial entity, the Nigerian National Corporation (NNPC), alongside with the Department of Inspectorate, renamed, the Department of Petroleum Resources (DPR), under the office of the Minister in 1991. Since then, petroleum sector realised several ad-hoc legislations mostly on need basis without necessarily checking alignment with existing ones. As at today, our nation is in energy crisis. There has been a sustained imbalance between domestic Supply and Demand, not arising from lack of endowed energy resources but from inability to manage our resources efficiently. We still import today over 90% of needed petroleum products (petrol and chemicals), flare substantial gas produced, have damaged our eco-systems and polluted our communities and cannot supply adequate electricity to homes and industry. This situation has undermined our citizens' standard of living, life expectancy, our national energy security and has resulted to other unforeseen fall-outs like: labour unrest; fuel queues; high cost of delivery of products; high cost of delivery of overall services in the total economy; and a share waste of unquantifiable productivity. The Existing joint ventures (JVs) and PSCs fiscal policies, require review with respect to "windfall profits" to private companies based on incentives that have distorted normal market economics as well as need harmonisation because they are
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TECHNOLOGY a p p l y t e ch n o l o g y, t we a k s, a n d improvements to make the process run more efficiently. Voila! Productivity gains! But with housing, by definition, the manufacturer often has very little control over the environment in which it operates. And so it has to operate slowly and carefully. Workers may be remodeling a kitchen while the family is living there which means they have to tread lightly. Builders often put up a new house on a street filled with homes, which means they have to be careful about not disturbing the neighbors, or messing up the infrastructure. In many areas, you can't do construction work on the weekends, at night, or in the early morning hours. Bad weather also interferes. Because sites are typically small, construction has to take place in discrete, linear stages. Here, the industry's historic mode of operating via small, specialized
subcontractors also plays a role in limiting productivity gains. You call in one team to excavate the foundation. Then, when they're finished, the concrete pourers arrive. Next, the framers do their thing. Later come the roofers, the plumbers, and the electricians. Each has to work sequentially to a large degree - so a single delay with a single trade, or poor coordination between trades, can throw the schedule off. Of course, it's hard to reap significant gains in productivity if you don't use modern technology to its fullest. And, here, again, home construction seems rooted in an analog phase. Workers show up to job sites with specs and blueprints printed out on paper. In my experience, the preferred mode of communication on construction sites is yelling or talking on walkie-talkies or the phone. Although some mechanized equipment is used, and although some builders are
experimenting with prefabricated efforts, a significant part of the work is done onsite and with human hands. The irony is that this all seems to work quite well for the construction industry. And that may explain some of the complacency homebuilders seem to demonstrate when it comes to automation and efficiency. When the market is generally expanding, as it is now, and homebuilders are able to make profits by doing business as usual, there isn't much impetus for change - especially when they can't be disrupted by cheaper, more efficient foreign competition. Despite the complaints about worker shortages and the lack of productivity growth, the National Association of Home Builders sentiment index is near a record high. It sure doesn't look like robots will be taking construction jobs any time soon.
GETTING SET FOR INDUSTRIALISATION
The governor said massive economic turn around can only be achieved through a private sector driven economy that operates in a conducive environment provided by the government. According to the governor, the terms of reference of the committee include reviewing all the work that has been done to date on planning and implementation of OK - FTZ . He said the committee will also determine the current status of all the activities and make recommendations. According to the governor, the committee will also review and assess the corporate structures for the operation and management of the Olokola free trade Zone and the mechanism for interfacing between Ondo and Ogun states and with the Nigerian Export Processing zones Authority Equally to be reviewed and assessed is the state of infrastructures in the zone, as regards road, waterways, electricity, water and communication". Responding on behalf of the committee, the chairman of the committee, Kupolokun said the committee will be committed and make more efforts to activate the abandoned project
Ondo State Governor Akeredolu sets up committee to reactivate Olokola Free Trade Zone
he Ondo State governor, Arakunrin Oluwarotimi Akeredolu has set up a nine-man technical committee to reactivate the abandoned Olokola Free Trade Zone. The multi billion project was initiated by the late Olusegun Agagu's administration but became moribund as it was abandoned shortly after his exit from office. The committee is headed by Engr. Funso Kupolokun, a renowned Petroleum Engineer and one time Group Managing Director of the N i g e r i a n N a t i o n a l Pe t r o l e u m Corporation (NNPC). Mr. Jones Abiodun will serve as secretary. Other members of the committee are Dr. Deji Oyedele, Chief Akin Aruwajoye, Engr. Funsho Esan, Barrister Niyi Adegbonmire SAN, Mr. Juwon Falope, Dr. Funmi Cooker and Mr. Oluwafemi Akarakiri. Inaugurating the committee at the Cocoa Conference hall of the governor's office, Governor Akeredolu said the committee is expected to 44 | www.cedmagazineng.com May 2017
actualize the Olokola free trade Zone project between Ondo and Ogun states. The governor, who was represented by his deputy, Hon Agboola Ajayi also charged the committee to tackle the current legal and technical issues confronting both the Owena Oil and Gas Limited and Owena Energy Limited. Akeredolu said the concern of his administration remained the massive turn around in the economic and social landscape of the state noted that best hands have been selected both within and outside the state for the committee.
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DEVELOPING STORY CORPORATE INTERVIEW
In association with Strategy + Business
bring people like us out as achievers in the society. That award is quite encouraging because, it gives us an understanding that wherever you are, you should try to put in your best in whatever you do because you don't know who is actually watching. The award has really impressed us and has given us the encouragement that we should do more.
Calabar mall project 2014 â€“ 2016
MAKING THE DIFFERENCE TUNDE ADEMOLA OLATUNDUN, Chief Executive Officer, ISTHMUS ENGINEERING LIMITED speaks on the position of the firm in the construction industry and the projects executed
ED Magazine: Can you tell us about yourself, academic background and your company? OLATUNDUN: My name is Tunde Ademola Olatundun, I am a builder by profession. About academic background to God be the glory I attended Obafemi Awolowo University Ile - Ife under the School of Environmental Design and Management, I got my B.Sc in Building in 1996, from there I have been involved with professional qualification, I am a member of Chartered Institutes of Building in UK year 2000, and a graduate member of Nigeria Institute of Building in 1998, graduate member of Nigeria Society of Engineers in 1998, from there I have been undergoing on the job Practical Training, I have gone abroad for (APMP) Association of Project Management Professionals 2006 in UK, I have been involved with Leading GSK - Project Management Group in UK , they were called (ETCM) Engineering Technology & Cost Management Group, they are the body under GlaxoSmithKline Consumer Plc, they do design, execution and project management. So I have been a part of the Group at least 7 years before I started Isthmus Engineering Limited. From my background and professionalism, I look at the best way to give back to the community, 10 | www.cedmagazineng.com May 2017
what I have learnt and gained from the society. I therefore decided to put up a group whereby the knowledge one claim to have acquired over the years working with multinationals, one should be able to impact and transfer the knowledge to the young and upcoming professionals. CED Magazine: You just received IBCA Award as one of the Business Leader of the Year, what do you have to say about that? OLATUNDUN: Sincerely speaking, I use to crack jokes with those that use to come around me to request for an interview because, we are like somebody or company who is trying to hide. My office is at Sango Ota and all these awards are coming up in Lagos State, at times I wonder how on earth are they able to
CED Magazine: In the past years of building industry, what has been your experience? OLATUNDUN: Over the years, I have been involved with building industry immediately after graduation from 1997 till date, that is, I have been in the industry for 2 decades. Truly speaking the built environment require attention because any nation that did not understand will not believe that infrastr uctural development revolve round building industry; so if our nation will actually have that better understanding and redevelop our built environment, the professionals and encourage everybody, definitely it's going to add to the growth of our nation. For instance, in Dubai now, you will see that they have turn desert to tourist center and that is the impact a built environment or building industry can contribute to the national development. CED Magazine: What is your take on the increase of high rise building in Lagos State? OLATUNDUN: When you look at Lagos State, the landmass area has totally been utilized because Lagos State by now has developed to the fullest, so if we are talking about development or building, people needs to be thinking of how do we keep developing a building in a choked environment, so there is no other options available again in Lagos State, you cannot expand horizontally, you can only expand vertically that is what brings about high rise building construction in Lagos State. CED Magazine: Construction and engineering sector is the highest employer of labour all over the world, how do you think it can be developed in Nigeria to cushion the unemployment challenges in the country?
With housing, the manufacturer often has very little control over the environment in which it operates.
WHY THE CONSTRUCTION INDUSTRY MAY BE ROBOT-PROOF
he age of automation seems to be upon us. Robots are delivering food in San Francisco. Last week, I had an uninspiring lunch at a largely automated quinoa joint in Manhattan. Self-driving cars are developing by leaps and bounds. Even in China, factories are using technology to substitute for workers on assembly lines. The rapid (and rampant) rollout of labor-saving technology has inspired fears of a dystopian future in which there simply won't be any work for humans. By this line of reasoning, as software and artificial intelligence become more powerful, gains in productivity are inevitable. But if you're skeptical of this view, you should look no further than a home construction site to back you up. Home construction is one of America's bedrock industries. After being laid low during the housing bust and the Great Recession, America's homebuilding complex is back on its feet. Housing starts have been rising (pdf). Yet homebuilders complain that a shortage of workers is impairing their ability to keep building. The usual solution for industries facing labor shortages is to apply technology - reengineer business processes so that a home can be built with less human labor. But the reality is that in the U.S., at least, home construction seems to be remarkably resistant to technological improvements. Anybody who has ever conducted a frustratingly
slow remodeling project can sense this intuitively. But there is data to support it. Matthew C. Klein of the Financial Times recently compared homebuilding statistics in the U.S. and Japan. Japan, it turns out, has a noticeably higher rate of housing starts per capita in the 25-54 age group, the prime demographic for home buying. And, he notes, there is a "higher nu m b e r o f h o u s i n g s t a r t s p e r construction worker in Japan, especially since 2006." (In the U.S., it is about .17 housing starts per construction worker, and in Japan, it is closer to .25.) "Another way of putting all of this," Klein writes, "is that America built about the same number of housing units in 2016 as in 1992, but somehow required about 46 percent more people to do it." By contrast, Japan built 31 percent fewer houses than in 2016 than it did in 1992, but the construction workforce in Japan fell by nearly 20 percent in that time frame. Ed Zarenski, a construction veteran who runs the blog Construction Analytics, notes a similar phenomenon. Since 2006, at the height of the boom, he
By Daniel Gross executive editor, strategy+business.
writes, the volume of new housing construction has fallen 29 percent in the U.S. But the number of home construction jobs is down just 22 percent. Crunch those numbers and we now require "27 percent more jobs now than it took before to get the same amount of work done." The problems may go back even further. In 2014, Cardiff Garcia of the Financial Times noted that in the "halfcentury through 2012, annual labor productivity growth in the U.S. construction sector averaged close to zero, and it has been negative for the past two decades." What gives? Well, there is something unique about housing. Typically, home construction activity is custom work remodeling, renovation, teardowns replaced by a single home, maybe a few homes built on a cul-de-sac. And it is difficult to gain economies of scale - or to automate processes - when every job, or close to every job, is unique. If every Tshirt were made to order - different sizes, styles, cuts, fabric - it would be very hard to get a $3 T-shirt. Think about the sheer, overwhelming amount of choice people have when building a home: gravel or asphalt in the driveway, 500 different shingle styles to choose from, gas or electric heating, landscaping, appliances, bathrooms, and windows. To be sure, there are plenty of planned developments and apartment buildings built in the U.S. But even here there is a great variation from project to project, and within projects. In addition, there are important differences between home manufacturing and, say, car or appliance manufacturing. Factories create their own artificial environments that are conducive to the task at hand: The whole structure is designed for the optimal flow of people and materials, and these factories can run around the clock stamping out hundreds, thousands, or millions of units of the exact same product. As a result, operators can systematically experiment with and
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CORPORATE REAL ESTATE INTERVIEW
CORPORATE INTERVIEW professionals; builders, and engineers is that they must take their time to understand the rudimentary stage of their profession, so that they can make themselves marketable to the society.
CED Magazine: As the CEO of Isthmus Engineering Limited, what are your future projections of your company? OLATUNDUN: Every company have their vision and mission statement, I use to tell my employees and my employers which are my clients that our vision in ISTHMUS ENGINEERING LIMITED, apart from the fact that we want to be a reputable company both Tunde olatundun with Calabar mall project team locally and internationally, as we have construction industry started with selling a product, you call yourself a been expose to. Lafarge Cement which is industrial builder or engineer then you are selling The key factor that pushes us forward is b u i l d i n g , t h e n I m o v e t o what you know, you are selling your to bring out the giant inside the young GlaxoSmithKline Phar maceutical, knowledge, now if you don't have a Nigeria professionals, bringing out giant because there is different between practical knowledge of your product that is that we want you to discover the ability i n d u s t r i a l c o n s t r u c t i o n a n d means you have nothing to sell, and you inside of you, so that you can have self pharmaceutical facilities; I moved into cannot market yourself. expression of talent, from there we will be There are many people that are looking able to build up our Nation together. So in warehousing, I moved into building of offices which is commercial and now am for employment, you know my answer? our own little way we are contributing to into retail business sector which is My answer is those that are good, those the national growth and development by that knows what they are doing, they have engaging the graduates, train them on the building of shopping malls. I have able to deliver successfully Port been employed, those that are not job and it means that people like myself Harcourt Mall, Calabar Mall which we employed are either they don't have will be able to reproduce myself and that deliver in July 2016 and now we are in certificate or they have nothing to offer. is what brings joy to me, so if it is possible Enugu Mall that we are going to open So my encouragement to young for me to reproduce myself that means I come June 2017. So here we find have achieved. ourselves participating in nation building We have 36 States in Nigeria but we and construction sector in our own little have not covered more than 5 States, so way. if we can cover the 36 states that means we have achieved. We believe if we are CED Magazine: What advice do you able to develop people, then we are have for upcoming builders in the developing ourselves as well. What we building industry? are projecting is building a giant and OLATUNDUN: Like I said, if you look makes them to fly and thereby at my nar rations, upcoming contributing to the national growth, professionals, builders and engineers even as we develop our company, that is have to be patient, money is not the first. what we are looking at and expecting to The problem we are having in the Tunde olatundun with GSK Nigeria Ilupeju project team (2005 -2006) happen in years to come. CED industry now is that people want to graduate and immediately want to start living a luxurious life it does not happen that way, before we got to this level, I have been in the industry for 20years after graduation, I have a quest, what is the quest? I want to understand and know what it takes to be in the building industry, in engineering sector because without you understanding your profession you can't market yourself. Like I use to tell people we are all sales person, what are you selling? We are
OLATUNDUN: It is one of the things that I will implore our governors, that is, government at federal, state, and local government level, that we are tired of unemployment in this country. Sincerely speaking, at least from the statistics that we have, I stand to be corrected, I know that our government both federal, state and local levels gives out a project not less than 1.3 trillion Naira a year that they execute, so if they engage local and indigenous companies they are not going to import workers, we will employ all these unemployed - graduates, we will employ the artisans from labour market that does not have anything to lay their hands upon, then from there create more jobs. As it's said, building industry and engineering sectors are the highest employers of labour, that is the truth, but if they themselves does not have patronage from the government which is the largest client in the industry, how will they employ workers? So am using this medium to implore our government to look inwardly. I know that our nation is about encouraging agriculture now, which is correct, but we will find out even in agriculture they will still need engineering sectors to work with, they will still need building industry because they have to build their farms, make use of tractors, so if we don't develop ourselves how are we going to create employment? I have seen foreigners come in to this country practicing agriculture that's the truth but the fact is that they came into the country with their resources and that is how they drive easily because they have all the capital they required to themselves. So if we encourage indigenous firms, engineering sector, building industry then what we are doing is capacity building, which means we have the capacity to employ more workers.
OLATUNDUN: There is no way we will have a booming industry without having infrastructures to back it up. In the country today, my own personal experience is that most of the site that am running, I generate my own power, water, and these are the key things necessary for construction, we run diesel and gas every day because the machines I operate needs power. We did a research before whereby we came up with the fact that (PHCN) power from government still stand as the cheapest in running an industry. We don't have these amenities at hand, the cost of production in running a building industry is high, it is a very big challenge that is why for everyone to develop either individually, corporate body or as a government, the issues of infrastructures have to be looked into. In Nigeria, if you produce something and compare with something imported from China, you will see that the cost of production here in Nigeria is very high than the imported goods from China. This is killing our economy. Basically, having good roads, water, electricity all these basic amenities will make things better in Nigeria.
CED Magazine: What are the problems or challenges faced by builders in Nigeria?
CED Magazine: Can you tell us about your milestone achievement in the building and construction industry?
Port-Harcourt mall project 2013 â€“ 2014
OLATUNDUN: Since I started in the building industry after my graduation I was opportune to be one of the key players' team that did the construction for Lafarge, formerly West African Portland Cement between 1998 - 2003 to deliver a project called 'New Kiln Line'; when I left there in 2003, I join GlaxoSmithKline Consumer Nig. Plc, Glaxo Pharmaceutical & Glaxo Manufacturing & Supply. While I was with them we were able to deliver over the counter project that is OTC factory, I was the key player in 2004. I did Oral Health Care Facility for them as well. If you heard about toothpaste in Nigeria, there was a time you could not find Maclean tooth paste any more, it was in 2005 - 2006 that they brought Maclean back into the market by constructing the Oral Health Care Facility and we called it 'Agbara Smile' that was the name of the project. Over the counter project, that we did in 2003 - 2004 the name of the project was called Agbara Green. Also, at GSK, I was able to deliver a warehouse project which is meant for their product distribution. I was able to build their head office at Ilupeju in 2006, and successfully relocated them from Ojota lease office in Lagos. My Involvement in the building and Continued on page 42
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In this Exclusive Interview With Prof. Lawrence Ikechukwu Ezemonye, Fnes, Fsesn, National President, Nigerian Environmental Society (Nes), a Professor Of Ecotoxicology And Environmental Forensics, Department Of Animal And Environmental Biology, University Of Benin, he speaks on the activities of Nigerian environmental society (NES) since inception, environmental challenges in the country and the world environment day 2017, the need to embrace and go back to nature as created. By Festus Oseji
STANDING FOR THE ENVIRONMENT â€œConnecting People to Natureâ€?
ED Magazine: Can we meet you: your professional background? Prof. Ezemonye: I am a Professor of Ecotoxicology and Environmental Forensics. As an ecotoxicologist I am concerned with the effects of contaminants on the environment, organisms and man while the forensic aspects deals specifically with sources of contaminants and pollutants implicated in the degradation process. I have been in service in the profession of environmental 12 | www.cedmagazineng.com May 2017
stewardship since in the 90s and I have worked on the Niger Delta Waters since the 90s too. As a matter of fact, my Ph.D. studies was on heavy metal pollution in the Warri River and that incidentally was one of the platforms through which various studies were carried out in that part of the country as well. For instance, I have also researched in the area of amphibian toxicology and this was induced by the reduction of amphibians i.e. frogs globally, and I felt it
was necessary for me to critically look at our environment too to ascertain the level of the decline in our country too and the objective of that research was to find out why the decline, what was responsible for the decline in our own region. And to the glory of God I have supervised Ph.Ds in that research area Dr. (Mrs.) Tongo and Dr. Alex Enuneku, who worked on heavy metal toxicity while Dr. (Mrs.) Tongo worked on Amphibian pesticide toxicity. Other Ph.D students worked on pesticides
grants to the environmental scientist in the country carry out research programmes on environment across the country. The government should as a matter of urgency look into local technologies that could emanate from waste that could mitigate environmental disaster. The federal ministry of environment, agencies should be well funded to do their job, because to restore the environment to its original state takes a lot of time and money, so the environmental agencies and the research institution should be properly funded. We as a country need to take environmental issues seriously, both at the federal, state and local government levels. The people should be sensitized on how to treat the environment, protect, preserve and sustain the environment. And on these areas, the government has to show good example, the various tiers of government should lead the way. The government should also come up with policy on resource recovery, because the theme of this year's world environment day celebration came as a result of the facts that most of the natural resources across the world are gradually drying up and fading away. So we need integrated approach and synergy from all tiers of government and the private sector to tackle the various environment issues around us. The issues of air and water, we pray we don't import water to drink in this country, but to avoid that we have to take environmental issues seriously. The government also need to look into the issues of global politics on environment related international bodies, some small African countries have post in some of these international bodies, whereas Nigeria the giant of Africa cannot boast of any post. Imagine Nigeria not paying dues at the Stockholm convention. Recently, Ghana was elected the president of convention, but common dues Nigeria cannot pay; and without payment of this due a country cannot be given hosting right to any of the event. It is high time Nigeria as country start demonstrating leadership
Prof. Oladele Osibanjo
at the international level as the giant of Africa. In Nigeria most corporate organizations year in year out these companies declare dividend and profits, but the question the government to ask those organizations is on cause of making all the profits what have you done to replenish the environment where your factories and offices are located, the water pollution, air pollution, noise pollution and damages on the road as a result of heavy machinery and equipment transported within the year in question? All these measures need to be put in place so as to make our environment better. Another question is how much of our government officials know of environmental economy and accounting? As a country we need to up our game at all levels, locally and internationally. The world environment day 2017 with the theme: "Connecting People to
his year theme came at the appropriate time and it's a reaction to what we environmentalist have been preaching, that we should stop destroying natural resources, instead we should protect and preserve it. Religion wise whether in the Bible or Quran it is clearly stated that God created the earth, human, plant and animals and at the end
Nature", what is your take on the theme? I could say that this year theme came at the appropriate time and it's a reaction to what we environmentalist have been preaching, that we should stop destroying natural resources, instead we should protect and preserve it. Religion wise whether in the Bible or Quran it is clearly stated that God created the earth, human, plant and animals and at the end He was very pleased. He then told man to have dominion, that is to say my children all that is on earth are all yours, use them and manage and preserve it. But instead of following God's instruction, we are doing otherwise, just using without replenishing as directed by God the owner of the earth. Most natural resources came from the earth; the oil, gas, gold, silver, plant, animals, water among others came from the earth. The theme says we should go back to nature that is feeling for nature that is giving us all that we are using without replacing. If we are to properly take care of the nature, every one tree cut down we are suppose to replant ten new trees. This is the only way we can live according to God's original plans and instruction to man concerning the earth. Some years back climate change used to be like fairly tale but now it is real, desertification is encroaching due to deforestation and animal grazing without replanting. God did not say we should not develop, develop but not at the expense of the environment. Development without destruction, allow the coming generation to enjoy the nature as you have also enjoyed it. For instance, back then in my childhood there is river in my hometown Ijebu-Ode called Owa river, as a kids we used to trek about 2 kilometers to go swim and fetch drinking water from this river, but now that river has dried up due to housing development. People have built houses on the river channels. That is development at the expense of the nature. So this year theme is trying to promote sustainable development at all level. CED
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PROFESSIONAL INTERVIEW LASEPA, there s one in LAWMA where you can take your waste product to, they exchange it or pay you something, is dotted all over and it is not only in Lagos, it is all over the place.
Nigeria government is getting up to it, NOSERA is involved and a lot of contracts have been awarded for the cleanup.
CED Magazine: The Ogoni issue why is it taking long? Dr. Celina Maduemezia: The Ogoni issue is taking long because usually when something gets into politics; it's a long history, shell point accusing fingers at the government, the Ogoni elders are pointing accusing fingers. Why it is taking so long is because of non adequacy of advocacy, awareness creation which a lot of people particularly the indigenes are not aware of the negative impact of some of these things, when people go and appeal to their personal emotions and needs. But it's coming up, the federal government somehow, there is dragging of feet because if I may remind you know in the gulf coast of Mexico, sometime ago I think 2010 or 2012, there was a pipe explosion which really was enormous, and within a space of 5years most of that area have been cleared off although we are suspecting that maybe is in the depth portion of the ocean but a lot of things, the ecosystem is returning to normal and a lot of compensation was paid to the shrink and the whole place has been cleared. Here, talking of something that has been happening in Ogoni land for so long, really it is very sad, if you saw films or you went there like we did and see what is happening it is very sad, but I think and I hope that
CED Magazine: Finally what is your message for the world as we celebrate the world environment day? Dr. Celina Maduemezia: My message is that, a lot of us can do a lot, this year's theme is "connecting people to nature" and which is very significant, because connecting people to nature, what is nature of course, you and I know that nature goes beyond the plants and animals we see, it has to do also with other things, you know is an aspect of what God created and when He did that, He did not leave it alone, He had messengers and servants to take care of it and that is why people say there are rain makers, they make the rain and they never ignore them, they bring harvest to them to thank them. So my message is that everyone should become more aware of the environment, knowing that the environment is everything to all of us, we must care for the environment apart from that we must also find time to connect, we have Nigeria conservation society at Lekki, has parks here and there, they have one in Lekki opposite Chevron, go there and spend 15minutes you will feel refreshed, we have a lot of beaches find time during the world environment day and the world environment day is not just one day it's
all the days of your life, like they say in the Bible a thousand years on earth is like one day, that is what it is let's find connection, let each person decide that am going to do things that are friendly to the environment, pickup some trash, find a way of planting some trees or flowers, develop flowers around your office, your home and separate your waste at home, have a different waste bin for decomposable things, have another one for trash and of course your bottles must not be there and then things like newspaper, you can sell them, you should not throw them or dump them, because that is green environment. We should try to promote those little things, let's not waste water, when you are brushing your teeth for instance, some people allow the tap to be running, you are wasting water, so if you use a cup to take it you will find out that it's less than what you will use. I am also concerned about the flaring of gas in the Niger Delta region, if you see what is happening in Port Harcourt now, I forgot what I had read in the papers, I was climbing a staircase and I saw the whole place was just black and I said what is happening, you can't even keep the place clean and they said that is the suite, and that is dangerous to health, it is inimical to the environment. The environment is the only thing we have got, let's care for it, it's the resource base, let's care for it, let's plant trees, let's plant flowers, let's be kind CEDto the environment that is my message.
Contact: Tel: 234 805 5243 516 E-mail:email@example.com www.insidebusinessafricang.com 40 | www.cedmagazineng.com May 2017
as well, and these students were trained on biological distortions, health implication of these pesticides, the chemical effects on them and the cause of their decline in our region. So that has been my full time professional assignment dog gedly ensuring that our environment is protected from pollution, degradation, alteration and distortions that destroy equilibrium of the earth. CED Magazine: As the National President of NES, speak on the vision, mission and its activities since inception? Prof. Ezemonye: Going down memory lane, the Nigeria Environmental Society was formed in 1985, and the sole aim at that time was strictly for protection of Nigerian environment and the founding fathers at that time were wholly committed to this particular assignment and were resolute to ensure that they maintained the principal state of our environment. And it continued in that stead; no wonder why in 1991, NES gained a national recognition and was described as the watch dog of Nigerian Environment by the Federal Government of Nigeria. The Nigerian Environmental Society (NES) is not just the foremost environmental body in Nigeria; it is also the largest non-profit NGO in this country. We have about 3,000 members and these members are spread across 126 fellows, 2,249 individual members and 223 student members, 148 corporate memberships, 140 associate members across the federation with currently 29 chapters in 6 geo-political zones of the country. Each of these chapters collaborates with the centre, and are given individual mandate to protect the Nigerian environment in their various states. The sole aim of NES, which is unwavering, is protection, preservation and maintenance of Nigerian Environment. Therefore, our vision is to see an environment that remains clean for the well-being of our people. Our mission to drive and attain the vision and the mandate were given to all our state chapters to be co-partakers and co-drivers of advocacy for the protection of Nigerian environment. My emphasis has always been on protection of the Nigerian environment. This is simply because some of our human activities have consistently bastardized the
My emphasis has always been on protection of the Nigerian environment. This is simply because some of our human activities have consistently bastardized the environmental quality and distorted the earth's equilibrium environmental quality and distorted the earth's equilibrium. So the first thing to do is to protect the environment. Part of my contribution to the vision of NES, can be traced to my inaugural lecture at the University of Benin in 2013, with title " E c o t ox i c o l o g i c a l A s s u r a n c e o f Environmental Integrity: Policing the Pollutants". After that lecture, for some time people called me the Police of the Pollutants. This was because I concluded the inaugural lecture by saying that as long as I live by the special grace of God; I have vowed to continue to police the pollutants anywhere I go. In NES, we found out that one of the ways and global best practices of protecting the environment are through collaborative effort and partnership, so the first thing we did in my tenure was to seek legislative support. So we visited the House Committee on Environment and Habitant and met with Hon. Obinna Chidoka, the Chairman of the Committee. A brilliant man, very articulate and understanding and we decided to partner with them. We equally visited the upper chamber "the Senate" Committee on Environment and there we met a true and thorough b r e e d e n v i r o n m e n t a l i s t , Ve r y Distinguished Senator (Mrs.) Oluremi Tinubu, whose antecedence has been on the principles of "catch them young" and
Lawrence Ikechukwu Ezemonye
"environmental attitudinal change". She has been engaged in environmental activities, education, and advocacy, creating awareness in the younger ones on the need to always clean the environment. When we met with her, we forged a partnership with the Senate Committee on Environment and as a matter of fact in our last convention Very Distinguished Senator (Mrs.) Oluremi Tinubu was made a honourary fellow of NES. Each time the Senate Committee are having hearings on environmental issues, they always invite us to make an input. After the Senate, we moved to our mother body, that is the Ministry of Environment and we met with the erudite and amiable Mrs. Amina Muhammed, OFR, when she was the Minister of Environment and of course we agreed in principle to partner with the Ministry of Environment, to support the attainment of the goals and objectives of the ministry. Today as we speak, we are a bonafide member of the National Council on Environment. So we have been partnering with relevant authorities in the environment sector, because partnership is the key. And each time we go to our partners, we provide them with resources that we have at our disposal. It is important to state at this point that the Nigerian Environmental Society (NES) is endowed with vast human resources, and that is our strength. As a matter of fact, when the Life Time Achievement Award was conferred on Mr. President Muhammadu Buhari GCFR, , I made a promise to Mr. President that I am going to make available to the Federal G ove r n m e n t a c o m p e n d i u m o f environmentalists for use at any time. Subsequently, they can pay for the services, but for the first time it is on pro bono basis and the compilation of the compendium of NES professionals is on-going. We also know the importance of the media in achieving our set goals. We had an agreement with some media organizations in the country to ensure that our plans, purpose and activities are well projected to the public domain. In our quest for partnership, we also went to The Nigerian National Petroleum Corporation (NNPC) and have established a relationship with them. I am glad to say that Dr. Ibe Kachikwu is a honourary fellow of NES, because of his laudable contributions to the goals and objective of NES and the
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COVER OIL ANDFEATURE GAS REPORT Nigerian Environment. He has also agreed to work with NES to protect the operational environment of the industry. Furthermore, on partnership, NES have just visited the Nigerian Maritime Administration and Safety Agency (NIMASA), who are in charge of maritime administration. From the environmental point of view, some of our research endeavours will be useful to the agency on a global setting, when discussing issues on the Nigerian environment that requires scientific input. So these are some of the activities we have been carrying out as a professional body to ensure that we protect the environment. In the area of contributions to National development, we were invited early this year to participate in the Federal Ministry of Environment public hearing and planning for the construction of the Calabar super highway project on-going in the state. So we have always played the advocacy role to various organs of government. Because we know the importance of capacity building, last year I was in the United Kingdom (UK) with my team to perfect the collaboration with the Institute of Environmental Assessment and Management (IEAM). It is an international certifying body and we were granted affiliation to run international certificate programmes in Nigeria and African Sub-Region. CED Magazine: Sir, upon all these both local and international activities of NES over the years, the boy still not popular like e ve r y o t h e r profession al body in Nigeria. I stand to be corrected? P r o f . Ezemonye: Since I took over
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the mantle of leadership of NES, I decided that NES must stand to be counted and take its pride of place in this country. We have since decided to consolidate on the gains of the past Presidents and re-brand NES to let people know what we have been doing in various states of the country. It will be of great interest for the public to know that NES has two vibrant chapters in Lagos State, and these chapters are working assiduously and in tandem with the Lagos State Ministry of Environment to ensure that environmental policies in the state are adequate and implemented to the benefit of the citizenry. Other state governments in collaboration with their respective NES chapters hosted environmental summits and I was invited to present papers as the National President of NES. All these are some of what we as national body expect and encourage the state chapters across the country to do, so as to project the activities of NES nationwide. As part of the promotion of NES activities, recently, I was at Redeemers University, Ede, where I gave a keynote lecture on the synergies and nexus of environment and health in Nigeria. So we are fully an advocacy organ and we are not downplaying the importance of advocacy because knowledge is wealth and education is awareness. Furthermore, awareness is the pathway to implementation of r ules and regulations. CED Magazine: The celebration of World Environment Day started in 1973, do you think that the setting aside this day has had significant impact either by provoking action or otherwise? P r o f . E ze m o nye : T h e Wo r l d Environment Day slated for 5th June yearly has a purpose and it has since been achieved. Going down memory lane, in 1972 the UN general assembly in Stockholm, Sweden, was the first workshop of UN human environment. The idea of World Environment Day was mooted and endorsed at that particular meeting. As a matter of fact a follow-up to World Environment Day approval was the setting up of - United Nations Environmental Programme (UNEP). The reason for setting out a day to observe world environment day was to create global awareness and instigate partnership actions to protect, preserve
and maintain the environment for sustainable growth and development. Why human environment? Before 1972, the environment was only looked at from the physical point of view; there was no human face. Consequently, it was at this particular conference that a human face was given to the environment. Knowledge wise, it was not just enough to know the concentration of a pollutant or contaminant in environmental media (soil water and air), because it is of no consequence. It is when you interpret the effects of the observed concentrations on man and animals that it begins to make sense. So it was that particular conference that brought out the relevance of human environment and that is why everyone is so much concerned about the environment today. So you look at the degradations, not at the point of distortion, but how it affects man and its environment. So it was based on these things that United Nations Assembly agreed to set out a day as the world environment day. The very first one was held in 1974, two years after the approval and it was hosted by United States of America with theme "Only One Earth". Since then, it has continued and it was in 1987 that hosting the celebration of world environment day started moving from one city to another across the world. This year's World Environment Day will be hosted by Canada. As we speak, we have about 143 countries across the globe that have keyed into the World Environment Day celebration and programmes. Also in Nigeria, virtually every sub-sector of the economy that has anything to do with the environment is celebrating World Environment Day, including companies and corporate organizations. So the purpose of awareness is gradually being achieved. The major concerns now are the actions that are associated with awareness. There are actions that are emanating from various world environment day themes that are helping to shape the environment. I think it was a very good decision setting a day aside for the celebration. Recently, the World Earth Day was celebrated by one of our chapters; the NES Edo State Chapter. The topic of discussion at that event was on Environmental Education and Climate Change Literacy; because if you don't
the activity that usually mark June 5, are designed for everybody, and at the federal government level those involved either the ministry of environment or the parastatals like NESREA organize this lectures or activities and they get everybody involved, all stakeholders, the state and the local government. Also at the state level, they organize these activities and they get everybody involved, they invite all stakeholders, at the federal level, state and local government level, and community elders and leaders. Also the local government should and could organize such activities and in fact people, ordinary individuals, like when I was the Chairperson Nigeria Environmental Society, we use to have market cleanup, we involve school children, we have something we call catch them young, so we have programs, so it's not exclusive of the local government. CED Magazine: The concept of greening economy, how much do we have in Nigeria? Dr. Celina Maduemezia: Green economy, we know a lot of it, in fact there are policies here and there at federal level, and the only thing is that we don't have a comprehensive policy on green economy. Green economy has to do with renewable materials, sustainability which is based on profit and as well ecofriendliness, the use of materials that are friendly to the ecosystem and we have in Nigeria. The federal government have a policy on renewable sustainability but it has not been pursued, the regulation and policies are not the problem in Nigeria, the problem is enforcement and implementation and then green economy has to involve everybody and for instance the BRT in Lagos State is part of green economy, use of what you do to reduce mass transit, people can park their cars and take BRT, so that the carbon emission is reduced, use of solar energy for power, use of hydro energy and all that, use of renewable materials, substitutions of materials, which are detrimental to the environment, like batteries for instance, you know
batteries use bromite, they can use nickel which are more friendly to the environment than what is used. But you know Nigeria in itself has not really, we think that it's high time the government makes a pronouncement which is pursued vigorously in particularly in terms of renewable energ y and recycling of water treatment, these are part of green economy. CED Magazine: Your take on the Koko Toxic Waste and how it was handled? Dr. Celina Maduemezia: Well the Koko incident, the dumping of Koko toxic waste in Koko, it happened and that is in 1987, I think July to be prĂŠcised, and for about a year the government pursued it, the Italian government were made to retrieve the waste that was dumped and pay for its remediation and restoration and at the same time that led to the FEPA Act of 1988 and the environment policy, apart from environment policy there is a law on hazardous waste and all. So the Koko thing in itself was a bad thing but it was also a beneficially thing, in other words it woke us up, and then we had the most rewarding policy on environment for the first time, we had several but a comprehensive policy on environment and regulation, but since then, that put a stop to it, but of course in 2010, we had another incident in Koko, were people
Dr. Celina Maduemezia
tried to dump waste. They would always try because the developed countries are always looking for market, and it's a cheap way for the developing countries to make money. CED Magazine: What about the concept of waste to wealth; how are we adapting to waste to wealth?Dr. Celina Maduemezia: Actually a lot is been done, hand on hand with waste to wealth is also what we now call.. if you will agree with me, you don't see as many plastics in the environment as we use to see before and this is because a lot of people has set up recycling plans for plastic, like for instance, food and beverage industries in this country have come together and setup a recycling i.e. set up a company that recycles, so this company is run by young people, they have set up retrieval that is pickup arm of it. They go round pick it up and package it, bring it and also they have a plant somewhere in Isolo where it is recycled. For instance, all this long things women use on their hair are recycled products and it s quite exhaustive because the government has also made a law which is called extended producer responsibility which makes it mandatory for producers of materials to look for ways of retrieving it or recovering it, separating it, sorting it and reusing them or recycling them, so the responsibility is now on the producers, again is enforcement that is the issue and eventually you get a close look instead of cradle to death, you now have cradle to cradle, i.e. raw material, you bring that raw material, use it for production and produce and then waste from it is no longer waste as such, because it is utilize to produce another raw material for another company or for the same company, that is going on now, and there is a law and it is actually in top gear now in the country. You also see that our dump sites are still there, but they are reducing somehow, because there is a mechanism, a system has been setup whereby people go and retrieve things. We have what we call 'Buy Back' for instance in Lagos State, there is a buy back center at
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ENERGY COVER INTERVIEW
LEADING THE REFORMATION
left the Lagos State Ministry many years ago and after a while I setup the consultancy Enville Environmental Consultancy and of course there is also a partner that is another group which we call the Institute of Environmental and Safety Management, we r un a programme, NID program for Diploma and because there is need to empower the youth on the management of the environment, particularly in sustainability and we are just processing the next step for the Institute to get to Polytechnic which we hope should come on very soon indeed.
know you cannot conform. I believe in a persuasive principle of conversion and that is what advocacy does. Over the years NES has been in the forefront of environmental protection advocacy and the response from the various authorities have been seemly slow. Very soon, we will change our advocacy methodology; that is, we will now be informing the public the associated risk factor leading to death for every oil spill and gas flare as the case maybe. Similarly, the projected death toll for every gully erosion would be communicated. By then Nigerians that do not want to die would do something urgently.
CED Ma gazine: W hat really attracted you to the sector or was it by chance? Dr. Celina Maduemezia: Destiny, there is a master for everyone, even before we are born, based on what we have been involved in previously. I went to England after my first degree in the University of Lagos, I did special honours Zoology and I went to England prepared to do Economic Entomology, and when I got there, being surrounded by people who are in applied sciences, they wondered why I wanted to do Economic Entomology because I needed to be getting my specimen from Tropical Africa and that to me was quite Dr. Celina Maduemezia knew unique and exciting. early in life the importance The environment to of the environment to m e E c o l o g y, mankind and she has Applied Hydroconsistently pursued the Biology and Marine transformation of the E c o l o g y and sector with vigour Pollution control, I fell in love with that and I accepted to do a master program and after the master program I was invited to do my PhD and that is how, so it's chance, it's destiny, it's love because I love environment.
CED Magazine: Evolving from the environment challenges are various issues relating to Ozone layers, climate change, desertification among others, how much impact has the June 5th of every year had on nations in relation to the environment? Prof. Ezemonye: These environmental damages that have been highlighted in the questions have always been given prominence in every world environment day celebration in the past. The ozone layer depletion had a year dedicated to it. In that year environmentalists were particular about the causative agents not whether it was depleted or not, because it has been depleted, and the effects are seen and felt all over the world. The causative agents from various researches are emissions. Uncontrolled emissions of gasses and gaseous products are the main cause of ozone layer depletion. It is imperative to control the emissions. Desertification was an issue too and the causes were well discussed as well. In Nigeria we have seven frontline states not because of economic growth, but because of desert encroachment; and a year was specifically dedicated to discuss desert encroachment and desertification and in those years they all came out with global action plans alongside memoranda of understanding. In Nigeria, the green belt project which is the deforestation project in seven frontline states is a United Nation driven national project. The 2017 Earth Day celebration theme was on Climate Change Literacy. So the fact that we set aside a day for the environment, identifying the priority is very important, to initiate awareness and action plans for maintenance and correction of damages on our environment.
Dr. Celina Maduemezia is the Principal Consultant of Enville Environmental Consultants Ltd and the Managing Director of Enville Institute of Environmental and Safety Management Ltd/Gte. She spoke with CED Magazine on the transformation that has taken place in the environment sector over the years and her contributions to the sector
ED Magazine: For people watching you all over the world, can we meet you? Dr. Celina Maduemezia: I have a PhD in Environmental Management, from the University of Aston-InBirmingham, Birmingham, England and on my return to Nigeria I joined the
Dr. Celina Maduemezia: 38 | www.cedmagazineng.com May 2017
University of Ife were I was a lecturer for a few years, then I came back to join the Lagos State Ministry of Environment, were I was the head of environmental services for some time and through that effort, I was key to the establishment of what is today known as LASEPA and LASEPA Laboratory. I
CED Magazine: We also understand that the June 5 is mostly marked with lecture especially the state and federal government excluding the local government, considering the fact that local council is closer to the people? Dr. Celina Maduemezia: I don't agree,
Also in our upcoming national conference the local government agenda for the protection of the environment will be one of the sub-themes for discussion.
Lawrence Ikechukwu Ezemonye
CED Magazine: Nigeria consistently marks the day with lectures, especially by state and federal governments, excluding the local councils. Why is this so, given that the local councils are closer to the people? Prof. Ezemonye: To be candid, the NES advocacy over the years has been focused on State and Federal government, but has not been as prominent as expected at the Local Government level. But it is also important that the activities of NES chapters across the states in the country move down to the Local Government Areas. As a matter of fact, in the next few months we will be having a workshop with the Rural Women Council of Nigeria. This is to educate and inform them on the need to protect and preserve the environment in whatever activities they embark on. The Abuja chapter of NES has just done a project for the local mechanic workshop on the need to manage and minimize the spill of used oil and emission of gases within their workshop. So we encourage local government activities. The Lagos, Calabar, Akwa Ibom and Port Harcourt chapters are very vibrant and have done so much in the Local Government Areas of their states.
In 2016, the theme of my first Annual General Meeting and National Conference as National President of NES was "Green Economy: the Need for Stakeholders Participation". During the conference, we had over 150 papers delivered in different aspects of green economy, which shows that the Nigerian populace are well informed on the concept of green economy.
CED Magazine: The concept of "green environment" how much of this do we know in Nigeria and how much of it should we know? Prof. Ezemonye: For your information, the Nigerian Environmental Society (NES) has placed so much emphasis on the concept of green environment. In 2013, the theme of our national c o n f e r e n c e wa s " E nv i r o n m e n t a l Management Systems: a Prerequisite for Green Environment Development. In 2016, the theme of my first Annual General Meeting and National Conference as National President of NES was "Green Economy: the Need for Stakeholders Participation". During the conference, we had over 150 papers delivered in different aspects of green economy, which shows that the Nigerian populace are well informed on the concept of green economy. It is not also surprising that the Federal Government flagship on environment declared a green bond which is in consonance with the green economy. The Federal Government also started a green economy programme in the diversification of Nigerian economy. We at NES are convinced that the green economy projects in Nigeria have come to stay. The green economy concept was mooted in 2011 at the United Nations Assembly and the green economy concept is insisting that development activities must also make provisions to protect the environment. In every development projects due consideration should be given to protect the environment. Green economy calls for new technology, innovations, knowledge, new scientific approach in development that protects the environment and it is basically a low carbon development strategy. It advocates for a development that reduces emission in all ramifications that is, any development that must occur must have a low carbon content in it, so that the environment will be free from land degradation, air pollution, and water pollution. As a matter of fact, green economy is only trying to give super credence and authority to sustainable development, which are asking for 50-50, that is development 50% and
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INNOVATION OIL AND GAS REPORT
The green economy concept was mooted in 2011 at the United Nations Assembly and the green economy concept is insisting that development activities must also make provisions to protect the environment. In every development projects due consideration should be given to protect the environment. Green economy calls for new technology, innovations, knowledge, new scientific approach in development that protects the environment and it is basically a low carbon development strategy. the environment 50% as well. But what we are seeing now is lope sided relationship. Currently, it stands at 70-30% which is not good for us as humans and that is why we are having so many environmental challenges everywhere in the country. CED Magazine: Should there be serious advocacy about the green economy in Nigeria especially in cities where heavy business are located? Please justify your opinion. Prof. Ezemonye: It is very important that we advocate for green economy so as to reduce carbon emission. Air pollution is causing a lot of havoc in this country because by the time we document this obnoxious cocktail of gasses you will see that we are not doing anybody any good. Green economy which is meant to apply the principle of sustainable development, should take cognizance of the environment because the justification is just apt. CED Magazine: Several years ago, there was this issue of Koko Toxic Waste (KTW); it would appear that we never really got the final verdict on how the issue was resolved. Could you provide an insight, if you know? Prof. Ezemonye: In 1988 when the Koko saga came up, it caused a lot of problems in this country, and in terms of resolution, compensation were paid to some of the workers and I also know that the culprit were given the mandate to clear the waste. The aftermath of that event was what led to the establishment of Federal Environmental Protection Agency(FEPA) -, which has now evolved into Federal and State Ministry of Environment. Prior to this, there was no concrete environmental law and 16 | www.cedmagazine.com May 2017
regulations in the country, and that incident opened the eyes of government on the need to take environmental issues seriously. The whole saga of the Koko Toxic Waste was also handled at international level and the container was returned to sender and compensations were paid to the affected individuals. CED Magazine: Currently, there seems to be a major environmental disaster in Port Harcourt and little is been said about it. Air pollution via industrial activities that affect people on a daily basis. What is the implication of this and how could this be eliminated before we start losing lives? really got the final verdict on how the issue was resolved. Could you provide an insight, if you know? Prof. Ezemonye: As a matter of fact, the air pollution status in this country is alarming. A report by World Health Organization in 2016, ranked Onitsha, Anambra State, with over 350,000 inhabitants as the world's worst hit in terms of air quality. The annual Particulate Matter (PM), acceptable level is 10micron but what we have in Onitsha is 595microns, about 60 times higher than the WHO recommended levels. Other cities in Nigeria that are also in this bracket are Kaduna, Aba and Umuahia; they are 8th, 9th and 19th respectively in the world. There has been series of air quality studies in this country, with some already made public. Some researchers have worked on emissions from second hand vehicles, motorcycles and tricycles and these emissions are simply from incomplete combustion. In the Port Harcourt scenario, the air quality has not been the best, but it has manifested in the black soot as a warning signal. The soot has been traced to hydrocarbon sources, incomplete combustion of fossil fuel, either from corporate or non- licensed refineries. It has also been associated with combustions from generators and vehicles; because since 1961 to date if you check the quantity of vehicles that have entered this country and the emission associated with it you will be amazed and know that the air quality has been compromised. Now, the Port Harcourt issue is a pointer to need for appropriate legislation and enforcement to ensure compliance. We should not just look at it from the aesthetic point of view but also from the human health and environment scenarios.
We know that these combustion gases can cause respiratory diseases. I also know from my study of Niger Delta soil, sediments and water that hydrocarbons like Polycyclic Aromatic Hydrocarbons (PAH) have sixteen different types and one of them Benzo(a)pyrene which is carcinogenic and common in the Nigerian environment. So by implication we are unduly exposing ourselves to carcinogenic agents, pollutants and contaminants. This soot has done more health hazard than aesthetic distortion. For instance, during the industrial revolution a similar thing happened. Before the industrial revolution, there was a kind of butterfly popularity known as peppered moth (nocturnal butterfly). It was usually white in colour and can be found at the back of trees. But with industrial revolution and the release of this same soot, over the years they started having two types; the white and the black, because the soot covered the body of white moth therefore exposing the white uncovered moths to predators. At a stage the white were totally lost. So what has happened in that instance was a distortion in the bio diversity. Nigeria must do something about the black soot in Port Harcourt before it becomes worst. The NES Port Harcourt chapter is doing something, working with the state government to unravel the situation and committees had been setup to tackle the issues head long. CED Magazine: Connecting people to nature, your take on this unique theme for this year world environment day 2017? Prof. Ezemonye: The theme of this year World Environment Day "Connecting People to Nature" does not stop there as a statement, it continues to the cities, and from the poles to the equator. This particular theme is working on the principles of seeing is believing. Connecting people to nature is advocating, carrying people to natural parks, national reserves, taking people, communities and villages to where the natural aesthetics has not been distorted and let people see and feel the ambience of nature. As a national body, we have told our chapters to ensure this years' event is celebrated in line with what the theme says, that is every chapter must try and take people to natural
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GOING ON UP Morocco to construct Africa's tallest high-rise tower
orocco's leading construction company Travaux Generaux de Construction de Casablanca in conjunction with by China Railway Construction Corp (CRCC) is set to construct Africa's tallest high-rise tower in Morocco's capital Rabat. Travaux Generaux de Construction de Casablanca together with the Chinese company won the bid to construct what would be Africa's tallest high-rise tower dubbed Rabat Tower. CRCC confirmed that it will take responsibility for 60% of the project while their Moroccan partners will handle the other 40%. The mega development project will be a 250-meter-tall skyscraper and would
cost a whopping US$375 million. The total designed floor space is 86,000 square meters. According to reports, Rabat Tower will be a 45-storey tower, which adopts ecological and sustainable design concepts. It will include offices, hotels and luxury apartments. The building will be the highlight of a large-scale project to develop the capital's Bouregreg valley, a key component of the 2014-2018 Integrated Development Program dubbed "Rabat, City of Light, and Moroccan Cultural Capital." To add onto that, the new project will also encompass several innovative facilities, including the Grand Theatre of Rabat, the Arts and Culture House, the National Archives of the Kingdom of Morocco, the Archaeological Museum, a multiplex cinema, a sculpture gallery, a marina, an art hotel, a marina hotel, a mall and a business center. Travaux Generaux de Construction de Casablanca is one of the largest contractors in Morocco. The Skyscrapper is owned by one of Morocco's top billionaires Othmane Benjelloun through his Paris-based money management firm, FinanceCom Asset Management. Benjelloun is also chairman of BMCE bank, the largest in Africa with operations in more than 20 countries. The billionaire is also planning to build a 30-story rocketshaped tower that will loom over Casablanca.
OIL AND GAS REPORT
SET TO JOIN THE LEAGUE Ghana OCTP Gas Field Set to Start Production
ccording to a petroleum sector publication, Eni has launched production from the Integrated Oil and Gas Development Project in the Offshore Cape Three Points (OCTP) block, off Ghana's western coast. The fields have about 770 million barrels of oil equivalent (mboe) in place, including 500 million barrels of oil and 270 mboe of non35 | www.cedmagazineng.com May 2017
associated gas or about 40 billion cubic meters, and the Plan of Development (POD) approved in January 2015 estimated the delivery of first oil in August 2017 and first gas in February 2018. To be commissioned later in the year, the OCTP will become the third commercial petroleum field to start operating in Ghana within the last seven years and the first non-associated gas field, albeit with some oil reserves as well. The floating production, storage and offloading unit (FPSO), named after one of Ghana's former president, "John Agyekum Kufuor", the third FPSO for Ghana's oil fields, arrived on the field in March and is expected to produce up to 85,000 barrels of oil equivalent per day (boepd) through 18 underwater wells. Partners in the field include Eni, with a 44.44-percent stake, while Vitol of the United States holds 35.56 percent, with the Ghana National Petroleum Corporation (GNPC) holding 20 percent on behalf of the government of Ghana. Eni Chief Executive Officer (CEO) Claudio Descalzi said in the document "Starting production only two-and-ahalf years after the approval of the Development Plan is an extraordinary result and a reason for great pride." The launch of OCTP is expected to provide gas to Ghana for over 15 years to result in improved electricity generation which will boost the countr y's development. The field comprises the Gye-Nyame and Sankofa fields which were discovered between 2011 and 2012. The Gye-Nyame field was discovered in July 2011 by drilling the Gye Nyame 1 well. The well was drilled to a total depth of 3,349 meters at a water depth of 519 meters and encountered significantly thick gas and condensate sands. Located 16 km west of the GyeNyame field, Sankofa-East was discovered in September 2012 by drilling the Sankofa East-1X well in September. Much of Ghana's projected economic growth prospects for 2017 and beyond have been hinged on gas production from the OCTP field as well as improved oil production from Jubilee and TEN fields.
reserves, parks etc. For instance in Edo State, our plan is to visit some of nature's reserves and parks within the state and students will be taken along for them to experience the beauty of nature at its best. The theme also talks about the poles, i.e. at the melting point, the equator that is the heat as we are experiencing it today in this part of the world. It is a very important theme. It simply says that we all should go back to nature from this our sophisticated and industrial life we are living in the city. When we go back to nature, it will now show us what we have done to it with the life in the city and we can now fashion a way to protect it. It is a very pragmatic way to protect the environment. CED Magazine: Nigerian's environmental policy, business and the people, how interconnected should these be as a way of boosting the economy and empowering people? Prof. Ezemonye: I am happy to say that the Nigerian Environmental Policy has just been reviewed and endorsed by Mr. President; and the policy is also meant to protect, preserve and with the consonance of sustainable development. The strategic format includes advocacy, research, partnership, community participation in protection of the environment and the objectives are to maintain equilibrium between development and protection of the environment. It also includes building capacity that will drive sustainable development and ensure full incorporation of green economy in contracting. In other words, the concept of green economy must be given full consideration when contracting projects for infrastructural development. So the new Nigerian environmental policy is apt and very robust; and it should be given serious consideration by all stakeholders. , It should also be subjected to all stakeholders implementation, bringing to bare the significant role of public partnership with government. The policy reflects on different sectors, such as the marine, construction, engineering, industrial, manufacturing, agricultural etc., ensuring that they all take cognizance of the environment in all their activities. The same thing is applicable to land, protecting it from gully erosion, deforestation and landslides. Also the air
I am happy to say that the Nigerian Environmental Policy has just been reviewed and endorsed by Mr. President; and the policy is also meant to protect, preserve and with the consonance of sustainable development. quality is reflected in the policy. Environmental education and awareness are also taking off in the new environmental policy. Enforcement and compliance regime are also considered with different sub-heads. It is a very comprehensive document put together by the Federal Ministry of Environment. No wonder Mr. President in his own wisdom has given the order for its full implementation. CED Maagazine: As a stakeholder in this sector, could you speak on your activities, offerings, contribution and achievements? Prof. Ezemonye: I have been part of environmental advocacy in this sector for over 30years now. And all my research endeavours has always been centered on environmental protection and regulations. I have worked on water bodies, collated data on heavy metal pollutions on several water bodies in the Niger Delta, their profiles and their implications. As a matter of fact, I have also worked on heavy metal contamination in earthworms, because earthworms are the determinants of soil health. In 2007, my presentation in SETAC Europe conference won a spotlight award and in that particular meeting it was accepted that weight loss in earthworm can be indicator of heavy metal pollution in the soil. From then my research endeavour graduated from heavy metal pollution survey and studies to ecotoxicological considerations and forensics. Ecotoxicological considerations are studies that show effect of chemicals in organisms and also provide opportunity for the recommendation and protection. So my eco-toxicological studies have centred on heavy metal pollution in organisms, biological markers and ecological risk assessment. I also have done works in pesticide pollution, (organochlorines and organophosates) All these research studies, have won awards and recognitions from different
institutions and regulatory bodies such asNational University Commission (NUC)Award in 2002 which was on the study of Persistent Org anic Pollutants(POPs) in the Niger Delta waters. I became an advocate against Persistent Organic Pollutants, and my research works has also included studies on selected POPs in the Niger Delta areas. In the field of environmental studies, I have supervised Ph.D, and Master Degree students and they all worked in this area, such as Pollution studies endocrine destructions mechanisms, ecotoxicological considerations and biomarker syndromes. All these are some of the areas we have worked on over the years. The importance of these various research works is that we can categorically tell the effects of different chemicals on some of the living organisms in our environment, their responses, the alterations in the way the organisms live, all these we have done and data are there to prove all these things. So these are my humble contributions to the environment and we are advocating at the moment for Nigeria to have a data bank of all ecotoxicological studies on the various matrices in the Nigerian environment for future purposes. CED Magazine: The concept of waste to wealth, how are we adapting to this in Nigeria? Prof. Ezemonye: Waste as it were has now become a trade mark of a successful city in Nigeria, because everywhere in various states you find heaps of waste dumped around the whole place indiscriminately. As an environmentalist, I have been opportuned to travel to various cities in the world. I have been to the Waste Management Centre in Vancouver, Edmonton Canada and also the Waste Management Centres in Lancaster, United Kingdom and Boras, Sweden. The first gospel they preach is the gospel of segregation. This idea of putting all waste in one black nylon bag is not the best. So if we are to make wealth out of waste, the first step is to enact a law that will enforce segregation of waste into white and black bags. The white bag will be for nondegradable metals, plastics etc. while the black bag will be for degradable waste like
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COVER INTERVIEW CED LEGAL
PROF. LAWRENCE IKECHUKWU EZEMONYE, FNES, FSESN
Lawrence Ikechukwu Ezemonye
food stuffs. Because the waste that emanates from food stuffs can decompose, it could be used to make manure and fertilizers for the farmers. While the plastics and metals can be sorted later for recycling purposes. So we are having challenges turning waste to wealth in this country because of the way we collect and dispose our waste materials. The government should as a matter of urgency enact a law for Waste Redemption Centres and allow private companies to operate such centres, where people can take their waste to and it will be weighed and be paid for in return. I am also of the opinion that every state should have an area for waste management and by so doing, the plastics and metals will be off the streets and our cities will be clean again. So I am an advocate of waste segregation and recycling because of its inherent potential for a green economy. CED Magazine: Your final word? Prof. Ezemonye: The protection of the Nigerian environment should be everybody's concern because the environment is interrelated. If you send out toxic nitrogenous gases into the air, after some time it will come back to us as acid rain. It will then get into the soil and it is subsequently drained into the river by flood water. The environment is interconnected and we should protect it because it is a gift from God to us for our livelihood. It should not be destroyed and we should not allow it to be destroyed. The environment should be preserved, protected and maintained. Selective harvesting and guided utilization of natural resources is the watchword that will make us develop in a sustainable manner.
rof. Lawrence Ikechukwu Ezemonye FNES, FSESN (B.Ed Sci UNIJOS, MSc. Ph.D. UNIBEN) is a Professor of Ecotoxicology and Environmental Forensics in the Department of Animal and environmental Biology, University of Benin, Nigeria. He was a former Deputy Vice-Chancellor (Administration), University of Benin, and Pioneer Director, National Centre for Energy and Environment, a research Centre of the Energy Commission of Nigeria from 2009 - 2014 and currently the National President of the Nigerian Environmental Society (NES). Going from his research history, it is absolutely correct to say that Prof. Lawrence Ezemonye has spent a large part of his life in research. As one of the foremost Ecotoxicologists in Nigeria, his research interest spans across Environmental Toxicology and Forensics. He has published over a hundred (100) scientific papers in local and international journals in Heavy Metals, Industrial Chemicals and Pesticide Pollution Studies, Ecological Risk Assessment, Bio-Marker/Endocrine Disruption Mechanism, and Fish/Amphibian Toxicology. He has presented several papers at international and national for a, chairman of session and keynote/guest speaker at over 50 conferences. Consistently, he has been Guest Speaker for the World Environment Day Lecture Series in various states of the federation since the year 2000. Prof. Ezemonye scholarly attributes were evidently reflected in his scholarship awards and commendations. His brilliance accorded him the recipient of the NEST/Ford Foundation Research Award (1994), World Bank sponsored Population Research Fund Project Recipient (1997/1998), UNDP sponsored Project Awardee (1998, 2001), National University Commission (NUC) Research Grant Awardee (2003) and IPED/UNIDO (2006) International Persistent Organic Pollutants (POPs) Elimination Project Awardee. Interestingly, Prof. Ezemonye's Research Team was awarded the ECOWAS Centre for Renewable Energy and Energy Efficiency's (ECREEE's) and ECOWAS Renewable Energy Facility (EREF) Project Award (2012). He has also been a recipient of the Japanese Society for Promotion of Science (JSPS) travel g rant for the International Toxicolog y Symposium in Africa. A Tertiary Education Trust Fund (TETFUND) instructional b a s e d r e s e a r ch grant recipient for 2014 and 2016. As an aggressive advocate of Renewable E n e r g y Deployment and Clean Environment, Prof. Ezemonye has presented over fifty (5) brilliant papers at both local and international fora on Renewable Energy and Environment some of which are; integration of Environmental Concerns in the Utilization of Energy and Biodiversity Re s o u r c e s f o r Development, Energy and Environment - Impact on Sustainable Development, Renewable Energ y Technologies for Mitigating Climate Change and Environmental Impacts of Energy Production in Nigeria, Environmental Considerations in Renewable Energ y Deployment in Nigeria, R e s e a r c h & Development, Demonstration and Deployment (R&D3) Model for Renewable Energy in Nigeria, Bio-Energy Development and Deployment in Nigeria. Prof. Ezemonye is currently one of the Nigerian representatives on World Energy Council (WEC), UK study team on Energ y Re s o u r c e s a n d Po l i c y
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Assessment, a contributing author of the World Energy Trilemma documentation of WEC. A former National Focal Point with African Energy Commission (AFREC), member of Energy Institute, UK, member Nigerian delegation to the 21st World Energy Congress, 2010, Montreal, Canada. Member Nigerian Energy Delegation to Canada, 2011, (Montreal, Quebec Province, Winnipeg Manitoba Province, Calgary & Edmonton, Alberta Province, Vancouver, British Colombia Province, Toronto and Ottawa), member of the Nigerian delegation to 2011 World Energy Council Executive Assembly, Oran, Algeria. He was one of the country's representatives to the executive assembly of the World Energy Council held in Monaco, France in 2012. He was also a member of the Nigerian delegation to the 22nd World Energy Congress (WEC), 2013, Daegu, Korea. Prof. Ezemonye academic deliverables, include successful supervision of several postgraduate students, (graduated PhDs in Ecotoxicology) and is currently an external examiner to several universities in Nigeria. The profile of Prof. Ezemonye showed that he has served as an Environmental Consultant to several multi-nationals ( U N D P, Wo r l d B a n k , U N I D O, WWF/NCF, SPDC projects), Federal and State government sponsored Environmental/Ecotoxicological projects from 1992 to date, spanning over 50 consultancies. He has also held other strategic administrative positions such as member of Governing Council, College of Education, Benin (1999 - 2003), Director, Centre for Part-Time Programmes, University of Benin (2006 - 2009). Chairman and member of several councils, senate and university committees, fellow of the Nigerian Environmental Society (FNES), member of the Society for Environmental Toxicology and Chemistry (SETAC) Europe and Adviser West African Society of Toxicology (WASOT). He has been decorated with several and awards and recognitions ranging from fellowships, award of excellence, prestigious leadership, award of honour, certificates of appreciation, meritorious awards, distinguished alumni award, investiture of patronship, community service award, environmental stewardship award, to peace award from institutions, associations, societies and communities. Prof. Ezemonye is married to Dr. (Mrs.) Mary Nkiru Ezemonye and blessed with four children.
REALTY MEET TECHNOLOGY Preliminary funding deal signed for $10 billion tech city in Morocco
lans to construct a mega tech city in Morocco have gone a notch higher after the North African country said that it has signed a $10 billion deal for the project. The new industrial and technology hub close to the northern city of Tangiers will be funded by Chinese group Haite 002023.SZ, BMCE's Bank of Africa and the Moroccan government. Morocco and the Chinese government signed a preliminary memorandum of understanding last year for the 2,000 hectare city, which will deliver 100,000 jobs and accommodate 300,000 inhabitants, Industry Minister Moulay Hafid El Alamy said in a presentation. The $10 billion investment will be made over a 10-year period, the minister said. The city will be situated in the north of the state and contain multiple industrial zones specializing in sectors as well as aeronautics, automobiles, t e l e c o m m u n i c a t i o n s, renewable energy, and transport equipment. In a ceremony presided over by King Mohammed VI, senior officials from the government, BMCE
and Haite group signed a new pledge to the project. Alamy said the project was estimated to attract investment from 200 multinational corporations. King Mohammed made an official visit to China last year, where numerous contracts were signed, including a threeyear currency swap agreement. Chinese firms have been active in the Maghreb, particularly in Algeria. In Morocco they have been involved in a number of infrastructure projects, counting a suspension bridge linking the capital Rabat with the neighboring city of Sale that is among the longest in Africa and was completed last year. "Chinese economic operators are searching for competitive platforms and they have selected Morocco as one of those platforms," Industry Minister Moulay Hafid Elalamy. "The project is planned to take 10 years" and work will begin in the second half of 2017, he said. Morocco has launched an industrialization drive centered on Tangiers which is being transformed into a hub with a free trade zone and deepwater harbour. www.cedmagazineng.com May 2017 | 34
ENERGY COVER INTERVIEW ENERGY
In the age of asphalt and smart phones and among the distractions of modern life, connections with nature can be fleeting. But with your help, World Environment Day can make clearer than ever that we need harmony between humanity and nature so that both are able to thrive. Green Economy The green economy is defined as an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a just transition to an economy that is lowcarbon, resource efficient, and socially inclusive." If governments are serious about delivering a Green Economy worth the name, they must: Effectively regulate markets: Credible and consistent policy goals, legal frameworks and liability regimes are essential to steer societies from short-term profit maximization to sustainable solutions. End harmful subsidies and make prices tell the truth: In our vision of a Green Economy, subsidies for harmful technologies and wasteful practices are history. Instead, due to levies and regulation, prices of environmental and social "bads" reflect 34 | www.cedmagazineng.com May 2017
Governments need to define what global resources are available. On that basis, they need to agree to bring absolute consumption of renewable and nonrenewable resources and the impacts of their extraction within planetary boundaries in a fair and equitable manner. their true impacts on society, creating a level playing field for green solutions. Accept and define ecological limits: Practices that have no role in a truly green economy - such as Arctic oil drilling or exploiting the tar sands - must be simply banned. Governments need to define what global resources are available. On that basis, they need to agree to bring absolute consumption of renewable and non-renewable resources and the impacts of their extraction within planetary boundaries in a fair and equitable manner. Listen to people not the polluters, and take full responsibility for protecting their citizens from toxic pollution, climate disasters, nuclear risks and other environmental harms. This also includes securing their citizen's rights, including their rights to clean air, fresh water, a healthy environment, food and shelter, rich biodiversity, and jobs. Provide decent jobs: Building green economies can stimulate much needed new employment and help retain and transform existing jobs. In just five years and with affordable investments, 48
million new jobs could be created in 12 countries around the world. Port Harcourt Soot: 1 February 2017, Port Harcourt - The residents of Port Harcourt in oil-rich River state, southsouth Nigeria are currently experiencing a new wave of environmental pollution following the invasion of their city by cancer-causing soot. Soot is a cancer-causing particle in the atmosphere linked to oil exploration and gas flaring in the Niger Delta region of the country. It is also a general term that covers pollutants derived from the incomplete or inefficient burning of fossil fuels or biomass - plants or plantbased materials used as source of energy. The major sources of soot include fuels like diesel used in transport and in electricity generators. For the Niger Delta, the sources include the aforementioned and include others such as: gas flares, illegal refineries, the burning of illegal refineries and crude oil, burning of oil spills by incompetent contractors and the burning of sundry wastes. Bush burning can also be a source of soot in our environment. A report of the analysis on soot as monitored by the Commissioner of Environment, Rivers state: Sampling:Sample collected from Abuloma area and Peter Odili area of PHSam, ple collected in two-time frames; 12 midnight - 6am and 6am 8am, Data of collection of sample 23rd December 2016 Result: Particulate Matter Size; Average of 270 micron/m3 for Abuloma & Peter Odili area between 12am - 6am, Abuloma area 6am - 8am; 125micron/m3, Peter Odili area 6am 8am; 62 micron/m3 ,Acceptable size is 25 micron/m3 All observed sizes were above recommended limits. Chemical Substance: Additive for making tyres, Nickel - high, Lead - low Test shows that the soot is petroleum based as a result of incomplete combustion of petroleum products: Suspected source of soot: Refineries, Petro-Chemical companies, LNG, Activities of illegal refineries, Gas flaring, Burning of tyre (to access copper embedded in the tyres).
STANDING FOR THE ENVIRONMENT In this exclusive interview with Prof. Oladele Osibanjo, FNES, National President of Waste Management Society of Nigeria(WAMASON), Chairman/Managing Director, Jawura Environmental Services Limited, spoke with Festus Oseji, on the need for government at all levels to come up with workable policy framework to tackle environmental issues in Nigeria.
I am Prof. Oladele Osibanjo, a professor of Analytical and Environmental Chemistry. I lectured for about 40 years at the University of Ibadan (UI), teaching Analytical and Environmental Chemistry, principally to post-graduate students as well as final year undergraduate chemistry students. I am a Past National President of Chemical Society of Nigeria and also the pioneer president of Institute of Chartered Chemist of Nigeria. I am the current President of Waste Management Society of Nigeria, and a fellow of several professional bodies; such as Institute of Public Analyst of Nigeria, Institute of Chartered Chemist of Nigeria, Nigerian Environmental Society to mention but a few. It is also important to say that I have been involved in issues of managing Nigeria environment since 1978, and since 1981 I have been a consultant to United Nation Environment Prog ramme (UNEP), and until I retired from the University of Ibadan in December 2015, I was the Executive Director Basel Convention Coordinating Centre for training and technology transfer in the African region for 21years (1994 - 2015). I am also happy to say to the glory of God that the Secretariat of Basel, Stockholm and Rotterdam Convention of UNEP in Geneva, Switzerland gave me a l i f e t i m e a ch i e ve m e n t awa r d f o r contribution to the development of these conventions as well as popularize the issue of chemical and waste to the international community. I am the Chairman and Chief Executive Officer of Jawura Environmental Services Limited. Jawura Environmental Services Limited is the first environmental company to be accredited in Nigeria by the defunct Federal Environmental Protection Agency
(FEPA) in 1992, and over the years we have been contributing towards national resources conservation as well as environmental protection, through assisting government to develop policy in part of the development of environmental protection guidelines and standards for the defunct FEPA and the Ministry of Environment and all its agencies such as National Environmental Standard and Regulations Enforcement Agency (NESREA) and as well as National Oil Spill Detection and Response Agency (NOSREA) at the national level. So I can say we have been opportune and privileged to be part of the sustenance of environmental crusade in Nigeria and globally. As the Pr esident of Waste Management Society of Nigeria; Speak on your activities since inception? Waste Management Society of Nigeria, is a corporate non-governmental organization, dedicated to sustainable waste management in Nigeria and globally, started as a society for waste management. But later became Waste Management Society of Nigeria in 2005, and a registered body with Corporate Affairs Commission. The mission is to ensure that waste is recognized as resource in the country, and to turn waste as resource to wealth of people rather than causing ill health and disaster. In this wise we have put in place a structure in place as we have councils in the states.
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So we have the national executive councils at the national level and also have councils at the state levels, which are nearer to the grass root where most of the environmental problems are, and I can say categorically that we have been very active. We have participated nationally and internationally in waste management conferences. For instance waste management society of Nigeria played a major role in the development of national policy on healthcare waste in Nigeria. Our immediate Past President Mr. Ruben Ossai served on that committee and played pivotal role, and we have also being working with various committees of the ministry of environment. Today, Nigeria has ministry of environment and the framework for the environmental protection because of what the country suffered in the past. This was because Nigeria became a victim of illegal waste dump of toxic waste in Koko area in 1988 because there was no recognized structure in Nigeria. The Koko toxic waste dump by Italy led to the establishment of Federal Environmental Protection Agency (FEPA) by decree 58 of 1988. We are also a pivoted organization for natural resource conservation and environmental protection in Nigeria and we are also member of international solid waste association, which again is a global NGO, trying to drive issue of sustainable waste management and for people to see waste as a resource and raw material for the future, rather than a point of destruction and other environmental challenges. We also have been quite active in organizing activities at the state level through our councils in Lagos, Port Harcourt, Kaduna and Abuja; and when the federal government ministry of environment to be specific launched the Ogoni Cleanup in 2016, in Port Harcourt, Rivers State, I am proud to say that as the minister finished the flag-off, two days later WAMASON national executive in conjunction with the Rivers state council organized a public event whereby we give our perspective on the Ogoni issue and Cleanup and the need to involve experts which we have quite a number of them in the country to work alongside with foreigners, because issue of waste pollution, cleanup and restoration are knowledge based issues and cannot be ignored or discount the national knowledge. Because environment is a dynamic issue, no one side fits it all. So the 20 | www.cedmagazineng.com May 2017
Waste Management Society of Nigeria have enough top class scientist who have been working on issues of oil spillage, gas pollution, electronic waste etc, so we are eminently placed to play a major role not only on advisory capacity but also to provide technical expertise on ground, which is to the benefits of the country. method that work in Canada or USA may work here but not at exact condition. So for one to successfully adapt to it, one will need the knowledge of the local environment. At this point, I want to say the Waste Management Society of Nigeria have enough top class scientist who have been working on issues of oil spillage, gas pollution, electronic waste etc, so we are eminently placed to play a major role not only on advisory capacity but also to provide technical expertise on ground, which is to the benefits of the country. The concept of waste to wealth; are we really adapting to it in Nigeria? Firstly, we have come into existence because we don't have the right attitude to waste. Most Nigerians attitude to waste is a typical of a developing country, which sees waste material as something of no commercial value so they throw it away. What we refer to as 'throw away culture' 'out of sight is out of mind' but then some of these wastes we throw away also contain valuable resources and materials. So when you throw away waste, you are throwing away what you think you don't need, but
Prof. Oladele Osibanjo
you are also throwing away valuable materials. The other aspect is that when you throw away waste which is waste disposal, the waste you throw away can cause other problems, because some of them are not degradable for example plastics which can be in existence for more than 50 to 100 of years depending on the nature of the plastics. And because of the way we dispose the plastics indiscriminately, when it rains flood wash them down to the river banks, ocean and canals. And as we all know indiscriminate dumping of waste on drainage channels has really caused a lot of flood in our cities, towns and villages. And because water must seek its levels at all time and if the water channels are blocked, the resultant effect will be flood and damages of homes, properties, farmland and livestock, creating refuge within the country. Thirdly, when you dump waste, on available land we deny ourselves the opportunity to utilize the land for better purpose. In this part of the world, we don't practice waste management, because it entails waste collection, separation into different component, transportation, treatment, disposal and aftercare. All these are part of the hierarchy of waste management. But what we are doing in Nigeria is waste disposal which is the lowest and least preferred method on the hierarchy of waste management. The best available management is to avoid waste (waste avoidance) and when you cannot avoid waste you minimize the waste generation. And that can be achieved through waste re-use, recycling, and recovering. In Nigeria presently, we co-dispose both hazardous, non toxic and toxic waste. And the hazardous waste are batteries, both dry cell and non dry cell batteries contain hazardous heavy metals like led, mercury, nickel etc, when you visit refuse dump across the country, all you will see is a cocktail of assorted hazardous waste. We dump together domestic, industrial and healthcare waste from hospital in one place, all these wastes dumped together are dangerous to human health and the organisms around us. And because of lack of space and land becoming less available in places like Lagos as a result of rapid urbanization people use waste to recover land and build houses on it. This is a chemical time bomb waiting to explode. The danger associated to this kind
health and spiritual benefits of a hike up a Himalayan valley.
THE ONLY WORLD WE HAVE
Connecting People to Nature - in the city and on the land, from the poles to the equator
Connecting People to Nature', the theme for World Environment Day 2017, implores us to get outdoors and into nature, to appreciate its beauty and its importance, and to take forward the call to protect the Earth that we share. World Environment Day is the biggest annual event for positive environmental action and takes place every 5 June. This year's host country Canada got to choose the theme and will be at the centre of celebrations around the planet. World Environment Day is a day for everyone, everywhere. Since it began in 1972, global citizens have organized many thousands of events, from neighbourhood clean-ups, to action against wildlife crime, to replanting forests. This year's theme invites you to think about how we are part of nature and how intimately we depend on it. It challenges us to find fun and exciting ways to experience and cherish this vital relationship. The value of nature In recent decades, scientific advances as well as g rowing environmental problems such as global warming are
helping us to understand the countless ways in which natural systems support our own prosperity and well-being. For example, the world's oceans, forests and soils act as vast stores for greenhouse gases such as carbon dioxide and methane; farmers and fisher-folk harness nature on land and under water to provide us with food; scientists develop medicines using genetic material drawn from the millions of species that make up Earth's astounding biological diversity. Billions of rural people around the world spend every working day "connected to nature' and appreciate full well their dependence on natural water supplies and how nature provided their livelihoods in the form of fertile soil. They are among the first to suffer when ecosystems are threatened, whether by pollution, climate change or overexploitation. Nature's gifts are often hard to value in monetary terms. Like clean air, they are often taken for granted, at least until they become scarce. However, economists are developing ways to measure the multi-trillion-dollar worth of many so-called 'ecosystem services', from insects pollinating fruit trees in the orchards of California to the leisure,
Hit the park This year's World Environment Day is an ideal occasion to go out and enjoy your country's national parks and other wilderness areas. Park authorities in some countries may follow Canada's example and waive or reduce park entry fees on June 5 or for a longer period. Once you are there, why not set yourself a challenge (seek out a rare mammal, identify five butterflies, reach the remotest corner of the park). Record what you see, and send us a photo of yourself and/or your discoveries so we can post it on our digital channels and encourage others to go exploring too. You could join the growing number of citizen scientists. More and more Smartphone apps help you log your sightings and connect with others who can identify the species. The records feed into conservation strategies and map the effects of climate change on biodiversity. Nature up close Connecting to nature can involve all the physical senses: why not take off your shoes and get your feet (and hands) dirty; don't just look at the beautiful lake, jump in! Take a hike at night and rely on your ears and nose to experience nature. You can also connect with nature in the city, where major parks can be a green lung and a hub of biodiversity. Why not do your bit to green the urban environment, by greening your street or a derelict site, or planting a window box? You could put a spade in the soil or lift a paving slab and see what creatures live beneath. Wherever you are, you could vow to pick up 10 (or 100) pieces of trash, or take inspiration from the citizens of Mumbai, India, and organize a mass beach clean-up. Your activity doesn't have to take place on 5 June itself. UN Environment, for instance, will soon begin testing your knowledge and raising your appreciation of a healthy environment with competitions and online quizzes and provide a whole menu of ideas to help you celebrate the day.
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Sign of things to come? With the coming of GE, there may be improvement in the NRC's operations with passengers the better for it. But will GE's presence stimulate the coming of other international players? Will the government be disposed to ensuring competition on a turf that has almost become extinct in the transportation mode? Time will tell.
of waste management system we operate in this part of the world is that during rainy season rain washes the hazardous chemicals in the waste into our rivers and underground water and by so doing destroys the aquatic organisms and the underground water will not be suitable for drinking. Other consequences of hazardous waste in our environment today, is that if a 4year old have cancer we will blame it on witchcraft, not knowing it's as a result of the hazardous waste we dump indiscriminately around our houses and also the water we drink which might have been contaminated by chemical and industrial waste in our environment. Most of these hazardous waste ends up in rivers and the fish we eat are from some of these rivers. The fishes feed on whatever they come across in the river. Livestock also craze on this dump sites and we eat the fishes from the river and animals that graze at the dump sites. Presently, there is programme from UN for the closure of dump site across the world, but because we are still operating the primordial method of waste disposal rather than management that is why we find it extremely difficult to adhere to or identify with such UN programmes. One of the identified problems of waste management in this country is that waste collection is far behind the rapid rate of generation, and this is as a result of the population increase and urbanization challenges facing some of our cities like Lagos, Port Harcourt, Kano etc, Other notable problems emanating from improper waste management are water borne diseases, which is as a result of indiscriminate dumping of waste in the waterways. In 1991, the World Bank did a study in Nigeria when they raised an alarm that the life of 60 per cent of Nigerians are at high risk of water borne diseases and that is still an issue in the country and much more,
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because most of the rivers in our urban cities are not swimmable, not drinkable and not fishable. I could remember when we are young we go to rivers to swim and fetch water to drink, but now it's not possible because we dump waste in the rivers and water ways, now water had become an expensive commodity in urban centre across the country. And irony of it all is that most of the so called pure water we drink in the urban centre are not really pure, because the manufacturers only produce pure ones at the stage of NAFDAC accreditation and number approval. The most annoying part of it is that these sachets are dumped indiscriminately on the street and when it rains it blocks the drainages causing flood, because they are not degradable. We at WAMASON believe there is need to tap into the entrepreneurship and economic potentials in waste management and the green economy which United Nation environment programme is promoting. In a nutshell, green economy means less waste more productivity. So if we can change most of our waste into products, there will be less waste to throw away. Because in the nearest future if we don't embrace green economy, land for waste dumping will be competing with land for housing, and we all know the one that takes more priority. We don't have a comprehensive waste law in Nigeria even comprehensive waste policy we don't have in Nigeria. Just in December 2015, the federal ministry of environment organized a national workshop in Kaduna, towards developing a national policy on solid waste management; imagine how this problem has become an intractable problem for the government. The government cannot cope with the solid waste problems because the resources allocated are small and the volume of waste is enormous. If less than 50% of wastes generated are
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collected, then we have a problem, whereas if we recognize the value in waste and bring in private investor to come and invest in waste management it will be better for our environment and the economy as well. And that is one of our own primary mission, we have to ensure we leave the rudimentary approach of throwing away waste because we are part of the international community which is saying zero waste and zero to land fill. This means that most of our degradable waste should be turned to fertilizers for our farmers to use in their agricultural practice, now that the federal government encourages the citizens to go into farming because of population growth; so one of our goals is to professionalize the waste management industry. The private investors should be allowed to come and invest in this sector, let them bring in infrastructure for waste management which we lack. Assist with the development of regulations, control and practice of waste management. Those are our goals and objective and we have been trying to work with various governments on this, furthermore, to look out for the best economic model for waste management. Lagos State for instance have tried PPP model which worked at sometime, but due to irregular payment some of the PSP has folded up. If the private sectors are allowed to practice as it is done in the developed countries, because waste management industry is a billion dollar industry, the government will benefit, the unemployment rate will reduce and the environment will be better for all. Presently, in the country we are having power challenges, waste could be used for electricity, we have waste to energy, so there are investors and once the ease of doing business in Nigeria is enhanced and the cost of electricity is reduced business will thrive. I was in Yokohama, Japan some years back, the electricity in the city is
? APRIL 2017
PROFESSIONAL INTERVIEW GOOD PLANNING APPROACH Tpl. Adekunle Salami, FNITP Chairman, Lagos State Chapter of NITP speaks on the institute and the contributions of paste leaders and the place of Lagos State in good planning practice in Nigeria
Respecting PPP But can the government be trusted to ensure the sanctity of PPP contracts, most of which run on Build, Own, Operate and Transfer (BOOT) structure and are tenure-tied? Though transportation and logistics experts have continued to express fear about "some unreliability of the terms of the contract", Amaechi again assured that the government was committed to the sanctity of contracts on concession of projects. He said the government would not only guarantee its concession agreements, partnerships and contracts, but also implement those it inherited and safeguard them from being truncated. The involvement of the private sector itself, especially in railway system, is the outcome of the
amendment of the Nigerian Railway Act 1954, which removed the exclusivity of financing of the system hitherto vested on the Federal Government. The minister insisted last week that attracting the private sector into the rail system was the only way to go, if the nation must join the rest of the world in deploying modern train systems to resolve mass transit challenges that have continued to bedevil the country. He urged critics of the move to have a rethink, adding that he would soon be meeting with the representatives of the workers' union who have carpeted the Federal Government for handling the national assets to foreign private capital. Citing GE's bold moves to revolutionise activities of the narrow gauge, he said, if one considers that this was coming at no cost to the government and Nigerians, then it ought to be supported and the government praised for discovering such willing partners in putting new impetus to the moribund rail system. Nigerian Railway Corporation Managing Director Mr. Fidet Okhiria said the participation of private operators in the system remained the only way the railway could fulfil its mandate of providing cheap, affordable and reliable mass transit services to Nigerians. He said Nigerians have the requisite experience and exposure to drive a very efficient and effective railway. He welcomed the bold step to see the government developed local capacity for repairs and production of essential components and hardware needed to run an efficient railway services.
Ekpo lamented the decay in the rail system and wondered how the nation with population of over 180 million had survived almost exclusively on road mode of transportation, with the rail playing virtually no role in the transport plan. He said GE's plan was to resuscitate and expand the narrow gauge rail infrastructure along the value-chain across the country. Giving more insights into the concession objective, Ekpo said the Federal Government was looking forward to the American firm setting up local production capacity for locomotives and wagons, in the medium term, while the long term is the establishment of a Transportation University. "The government set out objectives for the rail construction; it wasn't just about completing a railway line. There was also the other bit, which is set up local manufacturing capacity both for locomotives and wagons, within the country. "The second is the training of human resources, which is not just only a university, but a post-graduate training centre and GE is fully and firmly committed in writing to achieving," Ekpo said.
the World Bank in its last year's "Doing Business" report. The cost and time taken to import and export are well above the average for sub-Saharan Africa and the Organisation for Economic Cooperation and Development (OECD) high-income countries. Also coming under the concession agreement is the establishment of a Transportation University to train engineers and other manpower needs of the sector. "One of the conditions we gave them was to come here and build a Transportation University and they agreed," Amaechi said. He further disclosed that the government had returned to site at the Itape-Warri railway line, which will also be put under concession in the near future. The track will run from Warri to Abuja and is critical for the smooth operations of the Ajaokuta Iron Ore and Aladja Steel Mills, which are receiving the government's attention as well, the minister said. "The good thing about concession is that it saves the government a lot of money which is put to other use to create more jobs in other areas of development," the minister said. GE International Operations (Nigeria) Limited Transportation Business Development Executive Mr. Eyo Ekpo praised the Federal Government for the political will to put the rot in the rail sector behind it by concession of the spectrum of system both narrow and standard gauges. He said in the next phase and, to get it right, GE had resolved not to cut corners in helping Nigeria to fix all issues on the development of its rail system. "We prefer to go through a process that produces outcomes that are, ultimately, sustainable. There is political will, there is process and there is a plan, all put together by the government and if you combine that with what the GE consortium is bringing to the table what you'll expect is an outcome that is actually credible and sustainable, one that will be beneficial to Nigerians."
LAGOS RACING AGAINST TIME th
As one of the fastest growing cities in the world, Lagos, due urbanisation issues is racing against time, from waste management to transportation and more
Nigeriaâ€™ No. 1 Development Professional Journal
Continued on page 28
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generated from waste. The same in other European countries like Holland, but our own waste become a disaster. Our waste has become a master because we cannot control it. We need the political will, framework in place, national policy on waste control and management and have the structures and also promoting the industry. The current waste disposal problem we are having is contributing massively to climate change, because most of the food waste from the refuse dump when decompose will release methane gas which is one of the major green house gases, also we are into the habit of burning refuse to bring down the volume of waste at the dump site, we are releasing carbondioxide which is also a green house gases which is not good for human health and the climate change. If we can manage our waste we will be reducing the tendencies of climate change. Our environmental footprint will improve, because by so doing we will be lowering the release of green house gases and improving the issue of climate change in a positive manner. For instance, we are flaring gas in the Niger Delta, treating gas as waste. Nigeria is second largest flare of gas in the world after Russia; but we all know gas is wealth. And the constant flare of gas has been causing acid rain in the Niger Delta; rain water in the area cannot be used for anything because it contains PH less than 5.6 per cent. Those living in the area change their corrugated iron roofing sheet every year because of the acid rain being experienced in the area. The gas flaring also affects the vegetation and the soil fertility in the area, so because we are not managing the waste we are not managing the waste (gas) very well we tend to burn them away, which is not good for our economy and our environment at same time. Our problem in this country is so compounded, this is a country with gas master plan and still we burn our gas away. Products that would have been turned into petro-chemicals for export and in return bring in foreign exchange for the country, but we are not doing anything meaningful about it. The LNG is there wasting away opportunities for wealth creation. Our challenges in this country is enormous and the cause is because we use carpenter to do a tailor's job and that is why we are getting the kind of result we are seeing, virtually in every sector of the economy. In this country, we behave as if we are 22 | www.cedmagazineng.com May 2017
For us at WAMASON, we are promoting waste as a resource, we want a paradigm shift, change of attitude of the people from seeing waste as a throw away material to a secondary resource which can promote employment, wealth and our youth can be gainfully employed if the sector is properly managed. mediocre, whereas we are not. Nigerian has some the best brains in the world. Another problem facing us as a nation is the federal character syndrome which has destroyed our success in so many areas. For instance in our national team because of federal character, team selection is a problem. So for us at WAMASON, we are promoting waste as a resource, we want a paradigm shift, change of attitude of the people from seeing waste as a throw away material to a secondary resource which can promote employment, wealth and our youth can be gainfully employed if the sector is properly managed. Do you know that one million mobile phones will give you 35 kilogram of gold, one million mobile phones will give you 370 kilogram of silver and one million mobile phones will give 9 tons of copper? All these precious materials are money and are embedded in electronic waste we throw away. Electronic waste is gold mine if properly managed, and because our people do not know the value of the circuit board, they gather it and sell to foreigners at a cheaper price, while the foreigners take it abroad for proper re-cycling and at the end make huge money out of it. There is business and wealth in waste management. The plastics used in manufacturing computers, phones, televisions and other electronic gadgets can be useful if well recycled but our people set them on fire without knowing that it contains brominates flame retardant. These are persistent organic pollutants which are highly toxic to human, animal and plant. They can persist in the environment for so many years and it can also travel by air and through the rivers water to other places. We at WAMASON have drafted a bill on waste management and control in Nigeria,
this is a flagship project for us and we are fully ready to ensure it sees the light of the day. We will be working with national assembly on this, so that there will be proper way of waste management in Nigeria. The roles of various stakeholders in the sector such as federal, state and local government, private sectors etc will be clearly defined and work synergistically. Because there is a great need to handle waste professionally in Nigeria. The government will come up with the framework and monitoring, while the private sector provide the needed infrastructure and technicalities on waste handling for the benefit of all citizens, economically and socially. Our national policy on environment needs a revision because of other issues that we are witnessing today, such as climate change, electronic waste issues etc. Policy issues on environment, your advice to the government as an expert in this sector? As an expert in environment in Nigeria, my advice is that the government should review our national policy on environment. We should ensure it's up to date, and captured all the recent issues that are emanating in environment worldwide. And because environment is dynamic our policy should be dynamic as well as capture all the environmental issues that affect us as a nation. Such issues as climate change, electronic waste, livelihood from environment, environmental sustainability among others should be considered. As the global community is moving on the issues that affect the environment and its sustainability, we should follow the trend and be abreast with the issues and have it reflected on our policies. The local concerns should be looked into as well, because we cannot afford to buy new electronic gadgets all the time, there is tendencies that we will go for fairly used ones and because of that our country has become a dumping ground for electronic waste. So we have to join the global jingle that says all manufacturers should take charge of the waste that emanate from their products. The issue of ecological funds should be looked into for the proper manag ement of our environment, mostly activities in oil and gas industry. Other areas the government should consider critically is the issue of research grant, the government should give Continued on page 41 ?
AWAITING GEâ€™S 20 LOCOMOTIVES To show that it means business, United States (US) industrial giant General Electric (GE), the narrow gauge concessionaire is bringing in 20 locomotives by May 29. The locomotives are at no cost to the government, according to Minister of Transportation Mr Rotimi Amaechi. It is the kind of news Nigerians have been waiting for.
he American industrial corporation, General Electric (GE), the narrow gauge concessionaire, is to bring 20 locomotives into Nigeria by May 29. It seems the biggest signature the Buhari administration needs to convince the world it took the best decision to concession the antiquated narrow gauge to GE. The Minister of Transportation Rotimi Amaechi, who broke the news at a public forum on fast-tracking ports reforms, organised by his ministry in collaboration with The Nation and Epsilon Ltd., last Thursday, said the locomotives were free. According to Amaechi, it is the fruit of private sector investment. He said the government thought it wise to look for big corporate players to invest in narrow gauge development, while it concentrated on speed trains and standard gauge rail line construction (the flagship of which is the Abuja-Kaduna rail line), the second phase of the 25-year- masterplan which successive governments have been implementing since 2003. Indicators At the heart of the government's decision is the call for fresh funds to
help run an almost comatose system, due to long years of neglect and ignorance on the relevance and need for the integration of the sector into the transportation architecture that would have been the pivot upon which the d ive r s i f i c a t i o n v i s i o n o f t h e administration would run. Buhari's attention, according to Amaechi, is primed on delivering a standard gauge and premium transportation to Nigerians, who, for a very long time, have yearned for a paradigm shift in public sector transportation that maximises the benefits of the railway for the movement of goods and services. At a roundtable organised by the
Nigeria British Chambers of Commerce (NBCC) on the role of concession in fixing the transportation sector last Tuesday, the Minister disclosed that GE was actually poised to begin operation with 100 locomotives. "GE had agreed to give 100 locomotives free of charge for now, but unfortunately, there are no tracks for the 100 to ply, so they are going to give us 20 by May 29," he said. Amaechi said a revived railway would deliver immense benefits to the people. He said under the administration, the railway has received unprecedented attention, resulting in the revival of the corporation and the attendant discipline instilled in the workforce. In the estimation of the Oxford Business Group, as the most populous country and arguably the largest economy on the continent, Nigeria, un do ub ta b ly, rema in s Africa 's powerhouse. From the rails, to the roads and to ports, global logistics experts agreed the transportation sector which has long suffered from inadequate investment in infrastructure is facing an extensive overhall. Experts readily agreed that the dearth of a national transportation masterplan that accords a key role to rail system was responsible for the massive failure of the economy, leading to the sector falling short of its huge potential. The administration's commitment to bringing the private sector on board promises to improve the capacity and quality of the transport network. This will create opportunities for the construction industry and service operators. Opportunities The over-concentration of the countr y's transportation superstructure on road has inordinately hampered trade and increased production costs for manufacturers, importers and exporters. This has badly impacted on the economy and business support profile. Nigeria was ranked 182nd of 189 countries on trading across borders by
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DEVELOPING STORY HOUSING
AFFORDABLE HOUSING COMING Shelter Afrique,UN-Habitat commit to tackling affordable housing
helter Afrique, the Pan-African finance institution exclusively supporting the development of affordable housing and real estate sector in Africa and UN-Habitat, the United Nations agency responsible for Human Settlement and Housing have signed a Memorandum of Understanding which will see collaboration on delivering on the New Urban Agenda. The New Urban Agenda is an actionoriented document which sets global standards of achievement in sustainable urban development, rethinking the way countries build, manage, and live in cities. It was signed in October 2016 in
Quito, Ecuador at the UN Conference on Housing and Sustainable Urban Development - Habitat III. The MoU which was signed during the 26th General Council of UN-Habitat in Nairobi, Kenya will see the two organisations work towards the delivering of an ambitious agenda for affordable housing on the continent. The ceremony which took place during a sideevent at the 26th GC was attended by government and senior representatives of member countries and staff of Shelter Afrique as well as the staff of UN-Habitat. Speaking at the signing ceremony,
Acting Managing Director for Shelter Afrique, Mr. Femi Adewole highlighted similarities in the New Urban Agenda and Shelter Afrique's strategic vision for delivering impact on the continent. He remarked, "We are committed to this [action] because the the scale of the challenges that face us as a continent, require ambition, dedication and commitment". He continued "Our commitment to delivering on the objectives of the New Urban Agenda has always been resolute and frankly at this time for us as an organisation, necessary, but today we take the first of what will be many steps in realising it. We do this, also, in the expectation that our shareholders and members will match our commitment to delivering these objectives and use Shelter Afrique as the instrument for implementation." The MoU between the two organisations is set to deliver on the creation of a funding mechanism for housing and housing-related infrastructure in Africa by 2018 which will aim to raise a total of $1 billion by 2020. It will also elaborate a Pan-African Slum Eradication program based on best practices and successfully implement such a program in 20 countries by 2021. Shelter Afrique and UN-Habitat also want to jointly create a coalition of large employers in Africa to implement "Employer Sponsored Housing Programs in Africa". The programme should pledge to produce 100,000 housing units by 2020.
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digital and infrared thermometers
Continued on page 32 Quess Muraina Aderemi K. FNIQS, MRICS, RQS
V. Ca' Treviglio Principal Partner Calibration certificates
30 | www.cedmagazineng.com May 2017
HISTORY BECKONS Refining capacity - Kachikwu vows to resign if 2019 target fails
inister of State for Petroleum Resources, Mr. Ibe Kachikwu, Monday, vowed that he will ensure that Nigeria achieves self-sufficiency in crude oil refining in 2019, stating that he would resign if he fails to achieve the target. Ibe Kachikwu In an interview with the BBC aired on Monday, Kachikwu insisted Rouhani win seen speeding Iranâ€™s Oil push amid that the target for Nigeria to attain selfsufficiency in terms of crude oil refining President Trump threats remains 2019, adding that Nigeria should be more concerned about processing ranian President Hassan Rouhani is reached with Iran is one of the worst crude oil rather than shipping it out for in a stronger position after his re- deals he's seen and is reviewing policy processing elsewhere and importing refined products. election to push through plans for toward the country. "The election does give Rouhani a The BBC also reminded him that 2019 wooing foreign investors the country needs to boost oil production, mandate to push things through," is near and asked if he would take a walk if according to analysts at Cornerstone Ghanem Nuseibeh, founder of the targets are not met, Kachikwu replied, London-based management consultant "Yes, of course that is the reason why you Global Associates and SVB Energy. Iran's effort to attract about $100 Cornerstone Global Associates, said in are in government. Don't worry, I have set billion to develop more than 50 oil and an interview in Dubai on Sunday. the target and I am committed to walking natural gas fields bogged down ahead "Rouhani will do one of two things: the talk. Kachikwu declared that since of the May 19 presidential election. either wait and see what Trump does, or assumption of office, the present Political arguments stalled approval of he'll say, 'Let's move ahead.' I'd advise administration had been able to improve the output of the refineries and that the the contract terms the government him to go ahead." refineries are currently undergoing would offer, and U.S. financial sanctions refurbishment. -- and the potential threat of additional Shipments double He said, "Since coming we have been Years of international sanctions curbs -- continue to dissuade many able to get them back to begin to produce throttled investment in Iran, once would-be international investors. 7 million litres versus zero. That is not the Rouhani defeated rivals in a landslide, OPEC's second-largest producer, and 90 per cent template. We are now winning about 57% of the vote. As his stunted its economy. A tightening of refurbishing the refineries." Kachikwu victory was announced on Saturday, restrictions in 2012 cut into its crude further stated that he has delivered on U.S. President Donald Trump was in exports. The country more than every of his targets since coming into Saudi Arabia, Iran's regional rival, doubled oil sales after restrictions were office and would not relent until all his bolstering a coalition of states opposed eased in January 2016. targets are met. Exports have risen to about 2.5 He said, "I have delivered on to the Islamic republic. Trump has said the nuclear accord that world powers MMbpd since then, Bijan Namdar everything since I came to office. First, I Continued on page 25 ? Continued on page 25 ?
WINNING BIG I
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OIL AND GAS REPORT
Zanganeh, the oil minister, said on May 6 at a Tehran conference. Zanganeh has been instrumental in the government's drive for foreign investment, helping to craft Iran's new oil-investor contracts and pitching projects to international companies. Rouhani hasn't said yet if he'll retain the same cabinet for his second term. Iran was waiting until after the election to hold its first international auction of oil-development rights, Iranian Students News Agency reported on May 16, citing Ali Kardor, managing director of state-run National Iranian Oil Co. Iran announced some terms of the new investor contract at a November 2015 conference in Tehran, and it targeted signing the first deals in March or April of 2016. "The fact that Rouhani won as a reformist who delivered the nuclear deal and promised to bring in foreign investment would suggest that there is support for things like the oil contracts," Patrick Murphy, a Dubaibased partner at law firm Clyde & Co., said by phone Sunday. Political foes Rouhani's political foes have less interest in blocking the new contract now that he's won a new term, said Sara Vakhshouri, president of Washington, D.C.-based consultant SVB Energy. Even so, international investors "are still worried about remaining U.S. sanctions and possible future sanctions that could target Iran's missile
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OIL AND GAS REPORT
program," she said by email. The biggest oil companies have committed so far to little more than agreements to study energy projects or form development plans in Iran. Total SA, which agreed to draw up plans to produce offshore natural gas and pump crude onshore, hasn't signed any final deals for projects there. "Iran funds, arms, and trains terrorists, militias, and other extremist groups," Trump said Sunday in Riyadh in a speech to leaders of more than 50 predominantly Muslim countries. "All nations of conscience" should isolate Iran until it's "willing to be a partner for peace," he said. The Trump administration agreed last week to roll over sanctions waivers on Iran's oil industry and crude sales. At the same time, the U.S. imposed new sanctions on Iran's ballistic missile program and said it was continuing to review Iran's adherence to the 2015 nuclear accord. "Everything becomes irrelevant" if Trump tears up or tries to modify the historic agreement, as that would scare off investors, said Nuseibeh, the London-based analyst. On the other hand, Rouhani will boost interest among European governments and companies for keeping Iran open for business if he can offer oil-development contracts now, the consultant said. That would "make it even more complicated for Trump to try to renegotiate the nuclear deal," Nuseibeh said.
took NNPC and moved them into a profit making organization; first time in history and reshaped the organization. "I removed cash call deficit of over $6 billion, negotiated it. Everything that I have promised since coming into office, I have delivered. I will deliver on the refineries and I am committed to that and I will also deliver a future for oil that makes sense for Nigeria. "But bear in mind one has been there for one and half years, the president has been there for two years. I can't pretend that we are going to solve in one day all the problems that happened in Nigeria in the past." Kachikwu further stated that sustained engagement had been the missing component in the Niger Delta militants challenges, noting that the Acting President Yemi Osinbajo is currently leading efforts in addressing the challenges. A couple of weeks ago, Kachikwu had stated that the Federal Government had initiated a model which attracted foreign investors to partner with the Nigeria National Petroleum Corporation (NNPC) to repair the country's refineries within the two years period. This, he said, had consistently served as a target for the government so that by December 2018, NNPC must be able to deliver on some of the terms given them, one of which is to reduce petroleum importation by 60 per cent. According to him, selling crude oil is not different from selling agricultural produce in an unprocessed manner. "By 2019, we should be able to exist completely on the importation of petroleum products in this country. Cognisant of the fact that Dangote is building one refinery, we expect to have an excess situation," Kachikwu had explained.
ALL FOR THE ENVIRONMENT President Trump proposes $204.9 Million Budget for BSEE in 2018
resident Donald Trump has proposed a $204.9 million Fiscal Year (FY) 2018 budget for the Bureau of Safety and Environmental Enforcement (BSEE). "The budget ensures continued support of the offshore energy industry's safe and responsible operations providing for secure and reliable energy production for America's future," according to BSEE, the federal agency charged with ensuring safe and environmentally responsible energy production on the U.S. outer continental shelf through regulatory oversight of oil and gas operations. The FY 2018 budget request is $204.9 million, a $600,000 increase above the FY 2017 CR level, and includes $112.0 million in current appropriations and $92.9 million in revenue from rental receipts, cost recoveries, and inspection fees. "President Trump promised the American people he would cut wasteful spending and make the government work for the taxpayer again, and that's exactly what this budget does," said U.S. Secretary of the Interior Ryan Zinke. "Working carefully with the President, we identified areas where we could reduce spending and also areas for investment, such as addressing the maintenance backlog in our National Parks and increasing domestic energy
production on federal lands. The budget also allows the Department to return to the traditional principles of multiple-use management to include both responsible natural resource development and conservation of special places. Being from the West, I've seen how years of bloated bureaucracy and D.C.-centric policies hurt our rural communities. The President's budget saves taxpayers by focusing program spending, shrinking bureaucracy, and empowering the front lines." "The President's proposed FY 2018 budget fully reflects the administration's emphasis on ensuring
the safe and responsible development and production of the Nation's offshore energy resources," said Acting Director Margaret N. Schneider. "The President's request supports BSEE's efforts to permit offshore energy operations efficiently and ensure safety of advanced technology required to explore, develop, and produce in deeper waters and challenging environments." "The Bureau uses a comprehensive program of appropriate regulations, compliance monitoring and enforcement, inspections, technical assessments, and incident investigations to mitigate risk and ensure safe and responsible operations," Schneider said. The FY 2018 budget supports the following priorities: America First Energy: To advance domestic energy production while ensuring that development of the Nation's vast offshore energy resources is conducted in a safe and environmentally-responsible manner, the 2018 budget provides for the continued training and retention of expert engineers, scientists, inspectors, and oil spill planning, prevention, and response specialists and other disciplines. Consistent with Secretary Zinke's support of focusing resources on the front lines and reviewing the work processes of the Bureau, BSEE's budget request includes a $1.2 million increase for training. This increase will expand staff development efforts for BSEE's field inspectors and engineers to ensure staff have the tools needed to streamline permitting and support BSEE's efforts to efficiently provide for secure and reliable energy production. Oil Spill Research: To support Interior Secretary Ryan Zinke's priority of increased access to the U.S. outer continental shelf for energ y development, the budget request for BSEE includes $12.7 million for oil spill research This will help protect public lands by addressing key knowledge and technology gaps in oil spill response, focusing on deepwater and Arctic environments.
President Donald Trump www.cedmagazineng.com May 2017 | 29
DEVELOPING STORY OIL AND GAS REPORT
OIL AND GAS REPORT
SECURING THE FREEZE
Mexico Oil reform advances with first private well in 80 years
Nigeria Secures Second Exclusion from OPEC Output Freeze
Nigeriaâ€™s Construction Industry Hall of Fame 2017
or the first time in almost 80 years, a private company has sunk a new offshore oil well in Mexican waters -- the latest step in the country's drive to allow foreign competitors back into its energy markets. A joint venture of London-based Premier Oil Plc, Houston's Talos Energy LLC and Mexico's Sierra Oil & Gas began drilling the well May 21, Premier said in a statement Monday. It's the first offshore exploration well to be launched by anyone other than state-run monopoly Petroleos Mexicanos since the country nationalized its oil industry in 1938. The Zama-1 well, in the Sureste basin off the state of Tabasco, holds an estimated 100 million to 500 MMbbl of crude, Premier said in the statement. Drilling is expected to take up to 90 days to complete, at a cost to Premier of $16 million. The three companies won rights to the prospect in 2015, in the first round of bidding after Mexico voted to open its ailing oil industry to private investment. "As the first non-Pemex well to be drilled since the opening up of Mexican waters as part of the country's energy reform process, this well will be keenly watched by the industry," Elaine Reynolds, an analyst at London-based Edison Investment Research Ltd., said in a note to clients Tuesday. The structure of the basin suggests the project has "a high geological chance of success." Given the implications for the Mexican market, Zama is "one of the most interesting exploration wells to be drilled in the sector this year," said Charlie Sharp, an analyst at Canaccord Genuity Ltd., in another note. Closely held Talos is the operator of the well and owns a 35% stake in the venture. Sierra holds 40% and Premier, 25%, according to Premier's statement. 28
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Date: Friday September 15, 2017 Venue: Sheraton Hotels, Ikeja, Lagos Theme: Local Content and the Economy: Building Capacity for Growth
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igeria again got members of the Org anisation of Petroleum Exporting Countries (OPEC) and its other non-producers allies led by the Russian Federation, to exempt it from limiting the volume of oil it can produce from its oil fields within the extended production freeze agreement they reached at their second meeting in Austria, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has disclosed. This is just as the Nigeria Extractive Industries Transparency Initiative (NEITI) applauded the passage of the Petroleum Industry Governance Bill (PIGB) by the Senate, and thus asked members of the House of Representatives to find similar courage employed by the senators, to accelerate the passage of its own version of the bill. Kachikwu, stated that the country and Libya, were exempted from the output freeze despite speculations they would be made to participate in the extended agreement. He however noted the country was not opposed to joining the agreement if its production levels rose to levels expected to make her participate. A statement from the Director of Press in the ministry of petroleum resources, Mr. Idang Alibi, in Abuja explained that Kachikwu said "between the six to nine months' extended
window, all things being equal, Nigeria should get to an optimal oil production figures that will allow her participate in any needed production cuts." He added: "Nigeria is not averse to production cuts as every responsible nation needs to make sacrifices to help price stability on a global basis." Kachikwu explained in the statement that the Nigerian oil industry under his guidance was on course to overhauling its operations and ramping up crude oil production. He said: "The second meeting of the OPEC and non-OPEC oil producers ended on Thursday with a resolution to extend the agreement reached at their first meeting in December 2016 to cut global crude oil production in order to rebalance the oil market. "In this regards, the ministers of the two oil producers bloc agreed to extend the six months 1.8 million barrels per day (mbpd) production cut which took effect from January 1, 2017 by another nine months at the expiration of the current agreement period on June 30, 2017. "Similarly, the decision of the meeting to exempt Nigeria and Libya from the freeze was taken despite earlier speculation that Nigeria was going to be made to participate in the production cut mostly on the back of reported improvements in her oil production since the first agreement came into
effect. Indeed, a number of both OPEC and non-OPEC countries had expressed their interest to see that Nigeria was brought into the fold." Meanwhile, NEITI has said it was excited with the bold step taken by the Senate to pass the PIGB, stating that the decision to consider the bill as a priority was not only legendary, but historic given the challenges it has passed through in the legislative process of getting it into law for about 17 years. It called on the House of Representatives to find similar courage to give the bill an accelerated consideration on its merit in the overriding interest of Nigerians. "We also note that the objective of a petroleum sector law remains to develop a dynamic governance framework that will re-position the petroleum industry to fully embrace competition, openness, accountability, professionalism as well as better profit returns on investments. "NEITI also notes that the public outcry that greeted the failure of the last National Assembly to pass this important bill perhaps informed the current Senate's resolve to revive legislative interest on the bill resulting in the milestone achievement recorded at the moment. "We are delighted that to avoid the controversies that killed the last PIB, the current Senate, carefully assembled experts who carefully broke the bill into various segments beginning with the governance aspect of the proposed law. The PIGB now passed by the Senate is a product of this creative initiative," said NEITI in a statement from its Director of Communications, Dr. Or ji Ogbonanya Orji. NEITI explained that it had in the past alerted Nigeria to the fact that the country had so far lost over $200 billion as a result of the absence of the PIB. It equally explained that the absence of a clear governance framework for the country's oil sector had resulted in a cumulative loss of $10.4 billion; N378.7 billion; and N1.74 trillion in underremittances; inefficiencies; and theft, as contained in its past audit reports. Culled from ThisDay www.cedmagazineng.com May 2017 | 25
OIL AND GAS REPORT
OIL AND GAS REPORT
SELL IT! President Trumpâ€™s bid to sell U. S. reserve oil could undermine OPEC cuts
resident Donald Trump has proposed selling off more than half of the U.S. emergency oil stockpile, potentially putting more crude on the global market and undermining OPEC's efforts to prop up prices. A budget proposal released Tuesday includes a plan to sell 270 MMbbl of oil from the Strategic Petroleum Reserve (SPR) over the next decade, a move the White House says will trim the national debt by $16.6 billion. At the same time, ministers from the Organization of Petroleum Exporting Countries and its allies are gathering in Vienna to decide whether to extend oil-production cuts to reduce a worldwide fuel glut. White House Budget Director Mick Mulvaney told reporters Tuesday that drawing down the reserve wouldn't harm domestic oil prices as long as "you do it slowly over time." But analysts counter that releasing millions of barrels of oil into an already oversupplied market could depress prices and hurt future production. "Every sale has an impact," said Kevin Book, managing director of ClearView Energ y Par tners in Washington. "In the short term, it's significant, and in the long term, it's indifferent." OPEC and 11 non-member producers are weighing whether to extend output cuts for nine months 26
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after agreeing last year to reduce production by as much as 1.8 MMbpd from January through June. The move has been undercut by rising U.S. output, which has slowed the expected elimination of a global fuel glut. Congress has already ordered the U.S. Energy Department to sell 25 MMbbl of reserve oil in fiscal 2018 to fund various government programs. The Trump proposal would draw down the reserve even more. Sales could start as soon as this October, boosting year-end crude inventories. "From a producer standpoint, that's not such a great thing," said Phil Flynn, senior market analyst at Price Futures Group in Chicago. "For OPEC, it could
Mohammed Barkindo, Secretary General, OPEC
be a problem because they're doing ever ything they can to drain inventories." Recent sales of U.S. government oil have reduced the SPR by 7 MMbbl so far this year, based on weekly Energy Depar tment figures. The administration is targeting 16 MMbbl in deliveries in the first half of the year. Largest reserve The Strategic Petroleum Reserve, established in the wake of the Arab oil embargo of the 1970s, is the world's largest supply of emergency crude oil. It contains 687.7 MMbbl of oil in salt caverns and tanks at designated locations in Texas and Louisiana, which allow for quick distribution when natural disasters or unplanned incidents occur. The White House budget proposal would shrink the stockpile to less than 260 MMbbl. Unlike other aspects of the president's budget proposal, Trump's plan to drain the oil reserve may gain legs in Congress, which has voted three times in the past two years to sell off crude from the stockpile, earmarking 190 MMbbl -- about 27% of the reserve at the time -- to raise money for unrelated government programs. "Congress has already decided to reallocate the U.S. oil portfolio to other things and we don't expect that to change," Book said. Cutting the oil reserve to the degree proposed by Trump would require statutory changes, which would take time, and congressional approval. But he can unilaterally eliminate the Northeast Gasoline Supply Reserve, an emergency gasoline stockpile created in 2012 after Hurricane Sandy left some New York gasoline stations without fuel. The White House proposes to dispense with the gasoline stash in fiscal 2018, and sell its entire 1 MMbbl inventory during the same period. Long term, reducing the amount of oil in the reserve might be a good thing for the market, said Carl Larry, principal at Oil Outlooks and Opinions LLC, in Houston. "The longer-term effect is going to be very supportive of the market," he said. "If you take away the backup supply, you prop up the price of oil."
There is need for concerted efforts to streamline the process of tendering to make sure that it is done within a shorter time and that requires directive from the minister, and it is driven down from there."
FOR SUSTAINED GROWTH Nigeria's oil production per barrel costs over $20
he cost of producing a barrel of oil in Nigeria at over $20 is very high and uncompetitive compared with what other oil-producing countries, the Group Chief Executive Officer of Oilserv Limited, Mr. Emeka Okwuosa, has said. He said oil production at above $20 per barrel couldn't be profitable with appropriate cost management. He lamented that the cost of production per barrel in Nigeria is very high at above $20. Okwuosa, who spoke to the media on the sidelines of the Offshore Technology Conference in Houston, Texas, United States (U.S.), said the fall in oil price is not Nigeria's problem but that the problem is that of undue cost of production which makes operation
When oil price is at $40 per barrel depending on how your industry works,it may still manage it. If it is at $80 per barrel, it is a plus, but it comes with a caveat because the higher the cost of crude, the higher the cost of production because there is this tendency that when oil price is $100 per barrel, exploration and production (E&P) companies will take more risks. Embark on expensive projects because there is money.
uneconomic. He said the rise and fall in oil price was normal in the industry and should be expected. The Oilserv chief said: "On low crude oil price, what is important to be noted is that oil price never remains the same. It goes up and down and it is driven by market forces, which is basically demand and supply. In some cases, geopolitical forces too. What is important is cost of production. "In Nigeria, when cost of production presently goes beyond $20 per barrel, it becomes a problem. Compare this with Saudi Arabia where in some of their engagements, production is about $8 per barrel. When crude oil price is even $15 per barrel, they are still making profit. But in Nigeria, at $20, you cannot do anything but to shut down. You can't spend more than you are
Engr. Emeka Okwuosa
getting. "The main problem is cost of production. When oil price is at $40 per barrel depending on how your industry works,it may still manage it. If it is at $80 per barrel, it is a plus, but it comes with a caveat because the higher the cost of crude, the higher the cost of production because there is this tendency that when oil price is $100 per barrel, exploration and production (E&P) companies will take more risks. Embark on expensive projects because there is money. He also noted that there is need to drastically reduce the frame in tendering processes of oil and gas contracts as such lengthy periods add to cost escalation. So efforts should be made by relevant agencies to reduce tendering processes in Nigeria to be at par with other countries of the world. He said: "I'm not sure that it is the government. I think it has to do with owners of the projects. Whether it is the N i g e r i a n N a t i o n a l Pe t r o l e u m Corporation (NNPC) or the international oil companies (IOCs), which in this case you have National Petroleum Investment Management Services (NAPIMS) being the major partner that controls things. It's about making a conscious effort to put up a process that fits for purpose. When you start a tender and the tendering process goes beyond six month, you are in a different territory. You have a situation where inflation may have changed, and prices may have changed. Some tendering processes take up to 18 months. That should end, it requires concerted efforts. You have heard the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu say that it has to end. There is need for concerted efforts to streamline the process of tendering to make sure that it is done within a shorter time and that requires directive from the minister, and it is driven down from there.â€? www.cedmagazineng.com May 2017 | 27