48 ENERGY
THE GUARDIAN, Wednesday, February 20, 2013
Paucity of funds, poor policy assail meter manufacturing in Nigeria By Sulaimon Salau
words on the local production of meters, but Kuchi noted that S the debate on the method there were two manufacturers of acquisition of electricity in the country. prepaid meters lingers, there However, one of the indigenous are indications that majority of manufacturers of prepaid methe meters may be imported, ters told journalists that the thereby increasing the nation’s company was nearly forced to capital flight. close shop due to some poor Reason: the inconsistent poli- policies and bad implementacies emanating from the Fed- tion, which has remained a maeral Government, coupled with jor hindrance to growing local other economic and social manufacturing in the country. challenges may have relegated Chairman, MOMAS Electricity local producers of meters from Meters Manufacturing Comthe business. pany (MEMMCOL), Kola BaloThe Minister of States for gun, listed other challenges to Power, Hajia Zainab Ibrahim include lack of access to funds, Kuchi and some labour union poor power supply among othexecutives recently traded ers.
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Balogun therefore urged the Federal Government to give financial support to local manufacturers of electricity meters, adding that this would boost the nation’s Gross Domestic Product (GDP) and contribute significantly to employment generation. According to him, the company has invested over N3 billion on meter manufacturing equipment in other to enhance local production of various types of meters and electrical components, but the recent challenges has placed the firm at the verge of collapse. He advised the Federal Gov-
ernment to stop the importation of meters into the country and improve more on local content, suggesting the creation of local content department in the ministry of power, like in the oil sector, to enhance capacity building and create more jobs for Nigerian youths. “I feel it is important that Nigeria should stop importing electricity meters so that we can migrate from importing meters to manufacturing of meters of various types in Nigeria. This would stop the bringing in of the expatriates who were competing with Nigerian youths,” he said. Balogun lamented that most
of the meter components such as plastic valves were still being imported, adding that this should be discouraged. He identified that government had recorded appreciable progress in fabrication in the oil and gas sector, adding that similar growth could be achieved in the manufacturing sector, if right policies are put in place. “In MEMMOL alone, we have a production capacity of 50,000 to 100,000 meters monthly, not to now talk of the productions of other companies in same business,” he said. According to him, “Electricity is a major set-back in our company, since the factory was commission; we have not enjoyed public electricity supply, we are basically running on generator, this one of the major complaint of some of our partners over the years, because our equipment is very sensitive machine that required uninterrupted supply,” he added. He however, appreciated the Federal Government for its ef-
fort in improving the power supply across the country, urging it to extend the benefits to local meter manufacturers such as MEMMCOL. Another industry expert told The Guardian that the government’s policy on pre-paid meter should be implemented with fairness and justification for consumers’ money. The source suggested that the Federal Government should allow consumers to have direct interface with meter manufacturers/ distributors, just like in the telecoms sector, where the products can be easily purchased directly from the market and taken to service providers for configuration. “Just as you buy phone anywhere in the market and configure it with any of your preferred service provider, the prepaid meters can also be purchased by consumers and then take it to PHCN offices for due registration and configuration. I think this will open the market and even reduce the intricacies of buying prepaid meters from PHCN.” The
Pan Ocean debunks relocation report By Roseline Okere
AN Ocean Oil Corporation Nigeria Limited, operator of Nigeria National Petroleum Corporation (NNPC)/Pan Ocean Joint Venture has confirmed that the company has no plan to relocate any of its flow stations, gas plant or any other company operational facility. Pan Ocean’s Spokesperson, Assistant General Manager, External Relations, Pan Ocean Corporation, Edith Okujagu, explained that contrary to what has been reported recently, a flow station is not a facility that can be moved from one place to the other. “The notion that an operational facility like a flow station will be moved from one location to another location is simply not practical. The location of an operational facility is decided on purely technical evaluation to assure the integrity and safety of operations and protect the interest of all stakeholders. We want to assure our neighbouring communities and indeed all stakeholders that Pan Ocean does not have any plan for such undertak-
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Country President, Marcel Hochet; Human Resources Director, Chinwe Udo-Davis; Finance Director, Jean-Pierre Breton; and the Communications Manager, Anne Ezeh; all of Schneider Electric, at the maiden edition of the regional company meeting and staff appreciation event held in Lagos.
Siemens to build power plant for BUA Cement By Sulaimon Salau IEMENS Limited Nigeria has Snewsecured a contract to build a gas turbine power plant for the BUA Group (EDO) Cement factory located at Okpella, Edo State. The contract, according to a statement made available to The Guardian, involves the supply of three units of Siemens
Gas Turbines SGT-500 manufactured by Siemens Industrial Turbo Machinery AB in Finspang, Sweden. The multinational power energy firm described the project as highly unique, as it would be installing the SGT-500 for the first time in Nigeria in its 50year existence. “The SGT-500 turbines are unique for the African market
because they offer flexibilty in optimising investment returns, extremely low maintenance costs, high reliability and limited number of personnel required for their operation and maintenance,” it stated. BUA Group acquired Edo Cement in 2010 and has since then been committed to improving the state of the factory
to a world class standard and its move towards backward integration. “The contract between the BUA Group and Siemens is to further buttress this commitement,” it added. Siemens has been active in Nigeria for over 50 years, where it actively participate in the Industry, Energy and Healthcare Sectors, while Siemens IT Solutions and Services functions across all three Sectors.
ing”, she explained. The Pan Ocean’s spokesperson reassured that the company is presently focused on the long term plan of improving its footprints in the two states of Delta and Edo. Pan Ocean’s continued investment in the gas sector demonstrates the company’s focused, long term, commitments in its operations. Edith Okujagu noted that: “Pan Ocean has a long term commitment to the Nigerian project, the Nigerian people, and especially the people in the communities in which we do business. We will continue to build on the existing structure in partnership with our neighbouring communities”. Pan Ocean Oil Corporation Nigeria Limited has made significant achievement in its gas initiative which is aligned with Nigeria’s gas aspirations. Despite the challenges in Nigeria’s gas sector. Pan Ocean has remained focused on its gas utilization project -The OvadeOgharefe gas processing facility is the largest carbon emission reduction project in sub Saharan Africa.
Tackling local content challenges in oil, gas sector By Roseline Okere
HE Nigeria oil and gas industry is T the largest contributor to the country’s Gross Domestic product (GDP). In spite of the huge financial investment made by the Nigerian government in the oil and gas industry of the economy, it has not resulted in significant benefits for most Nigerians. Several challenges, ranging from infrastructural development, political stability, good investment climate, project financing, transparency, high educational standards, legal policy, resource management, research & development, fiscal policy, environmental policy are some of the factor impeding the set target by the Federal Government its local content drive in the oil and gas industry. Stakeholders at the first Addax Executive Development Seminar organized by Addax Petroleum in Lagos, with the theme: Performance and Delivery: A catalyst for growth opportunities and Nigerian Content Development”, be-
lieved that the attainment of the Federal Government’s local content drive, would require the collaboration of all stakeholders in the oil and gas industry. The Executive Secretary of NCDMB, Ernest Nwapa, while speaking at the seminar, explained that the Board will collaborate with major operators, service companies and the relevant state governments to build industrial parks, which will support operations of the industry and help achieve service efficiency through shared services. According to him, other benefits of the industrial park concept include the reduction of start-up investment costs for new businesses, stakeholders’ collaboration and industry commitment to utilise manufactured products from industrial parks. He said, “The parks will host manufacturing activities driven by the Oil and Gas industry demand but will certainly service other sectors of the economy as they grow organically
into integrated industrial zones. “The start-up product slate will include steel pipes and allied fittings, switch gears, panels, skids, pipe racks and brackets, environmental protection equipment, chemicals, industrial gases, computers, telecom and other ICT equipment components which includes Furniture, LPG cylinders, Bolts & Nuts, Drilling fluids.” Speaking further, Nwapa said that part of the strategy is to stimulate small and medium scale enterprises focused on oil and gas technology into sustainable engines for technological growth and employment at the grassroots level. He noted that the major operators will benefit from increased entrepreneurial activities in their host communities, adding that the Board has reached out to the state governments to participate in an SME fair to enable it identify companies with potential to incubate and grow. Nwapa further said, “In this way, over 100,000 productive jobs will be cre-
ated across the communities for skills ranging from professional to artisanal and de-emphasise the social employment prevalent in the communities. “The fair will identify SMEs with capacity which will be supported and accommodated in the new industrial parks to manufacture goods used in industry with the active involvement of the traditional OEMs. “However, the Board will activate the provisions of the Act to provide specific incentives for OEMs that participate in the initiative such as locking in orders for equipment or components manufactured/assembled in these parks for extended periods.” He also disclosed that Nigerian companies had committed to invest over $600million in the manufacture and assembly of various equipments and components. Speaking also at the event, Chairman of Petroleum Technology Association of Nigeria (PETAN), Emeka Ene, identified three drivers of local content to
include sustainability, quality and quantity. According to him, access to work within a competitive environment improves the quality of services delivery. Ene stated: “Developing human capacity in the oil and gas industry should be given priority if Nigeria is to achieve the objectives and benefits of the content law. Local content means the quantum of composite value added to or created in the Nigerian economy through a deliberate utilization of Nigerian human and material resources and services in the upstream and downstream sectors without compromising quality, health, safety, and environmental standards.” He said that PETAN encourages Nigerian Content through valuedadded partnerships and investment. “Local content sustainability rests on developing local manufacturing capability”.