The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the country’s total annual upstream capital expenditure decreased from 27 billion dollars in 2014 to less than six  billion dollars in 2022. The Chief Executive of NUPRC, Mr Gbenga Komolafe, revealed this on the sideline of the World Petroleum Congress (WPC) in Calgary, Canada. Komolafe, represented by the Executive Commissioner, Mr Kelechi Ofoegbu, the figure represented a 74 per cent decrease in its capital expenditure (CAPEX). He attributed the decline in CAPEX to several factors, while emphasising that regulatory uncertainty,  significantly impacted investment in Nigeria’s oil and gas industry. Komolafe further said that prevalent in the years preceding the enactment of the Petroleum Industry Act (PIA) also affected investment in the industry.

The event was jointly organised by Cabtree Consulting, the Gas Aggregation Company of Nigeria (GACN) and CarbonAi x-rayed. The topic was “Nigeria and Canada: Collaborating to Decarbonise Nigeria’s Oil and Gas Sector”. He said other factors are de-funding of fossil fuel development occasioned by energy transition and the global call for decarbonisation. According to him, most International Oil Companies (IOCs) deprioritised Nigeria in their portfolios which led to the redirection of CAPEX to other countries. This, he noted, was with attendant dwindling investment in Nigeria’s upstream sector.‘‘This under-investment impacted negatively on the country’s rig count. On average, Nigeria had seventeen (17) active oil rigs in 2019 representing one of the highest counts in the African continent as at then. The average rig count declined to eleven in 2020, seven in 2021, 10 in 2022, but recently grew to as high as 31 by August 2023, a positive signal of new investments trickling into the country. The relatively high crude oil prices may have also attributed to the increase in activities in the petroleum upstream sector.

“We also see this as a reflection of investors’ acceptance of the PIA and its effective implementation by the regulator. The projected outlook over the next few years looks promising, and as the regulator in the oil and gas upstream sector. We would leverage on this opportunity by doing all that is necessary to attract more investments and revamp the Nigerian upstream sector, ’’ he said. The NUPRC boss added that the PIA has repositioned the Nigerian petroleum sector by creating efficient and effective governing institutions, with clear and separate roles for the industry. According to him, it has also provide for enabling transparency, accountability, and fostering a business environment conducive for petroleum operations. He said that since the enactment of the PIA, the  Commission had gone ahead to develop 24 priority regulations which would give meaning and intent to the spirit of the PIA, and create a predictable regulatory environment for operators and other stakeholders. On energy transition, he maintained that the need for oil and gas producers to embrace the reality of green transition and take strategic position to leverage the opportunities presented by the unfolding era had become more pressing. 

‘‘With Nigeria’s huge gas reserves of 208.83 TCF and a potential for an increase to about 220 TCF within the next ten (10) years, Nigeria has adopted natural gas as our transition fuel in our stride at developing cleaner fuels and staying on track with our net zero emission commitment of 2050. Unfolding event has equally shown that natural gas is our destination fuel, with a projection that gas will form a significant part of energy mix for Nigeria by year 2030 and beyond. In recognition of this, Government has designed the Decade of Gas programme to ensure that gas actually play a role to lift us from the challenges that confront us in order to drive industrial development,’’ Komolafe explained. Earlier, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services(NUIMS), Mr Bala Wunti, said reaching net zero would require improvements to the enabling environment. Wunti said as well as robust project preparation and tapping different sources of finance in a coordinated manner, taking into account each country’s context whether developed or developing. He said in his presentation titled, 

‘‘Decarbonising Nigeria’s Oil and Gas’’. Wunti was represented by the Asset Manager, Group PSC(Production Sharing Contract), NUIMS NNPC Ltd., Mr Justus Derefaka, hinted that pursuing a net-zero emissions pathway comes at a very high price tag. He added that gas use for power would need to increase to metering electricity demand until 2030. Delivering Nigeria’s current NDC requires strong gas uptake across the economy, including 80 per cent of cars being powered by Compressed Natural Gas(CNG) and 50 per cent of the population using Liquified Petroleum Gas(LPG) for cooking by 2050. NAN also reports that the five-day conference has the theme: “Energy Transition: The Path to Net Zero”. The 24th WPC has recorded no fewer than 15,000 visitors from over 100 countries, 5,000 delegates and over 200 national and international exhibitors.

The leading restaurant lobby on Monday asked Congress for $240 billion in federal aid, saying the industry has suffered more than any other and needs a dedicated fund to stave off disaster.

Four in ten restaurants have closed — some for good — and eight million employees have already been laid off or furloughed, according to the National Restaurant Association. That represents two-thirds of all restaurant jobs in the United States. The trade group estimates restaurants lost out on $30 billion in sales in March and is on track to lose $50 billion in revenue in April. “Every restaurant model, from the beloved corner diner to the favorite independent restaurant to the well-known chain, has an uncertain future as economic damage wrecks an industry that is only marginally profitable even in the best of times,” wrote Sean Kennedy, the group’s executive vice president of public affairs to leaders of the House and Senate.

Restaurants are one of the largest employers in the U.S. with more than 12.2 million workers before the pandemic broke. Employment totaled more than 15.5 million including workers at hotels, sports venues and other sites serving food, the NRA estimates. Kennedy said the government’s popular Paycheck Protection Program to help small businesses is too limited for most restaurants. The loans only last eight weeks from the time they are granted and require businesses to spend at least 75% of the loan on salaries. The NRA said restaurants will need loans for a longer period, starting when they are allowed to reopen, and need more flexibility on how they use the money. Nonpayroll costs are high and even the restaurants that have remained open are struggling to pay them with reduced sales and skeleton staffs. Some 60% of the 6,500 restaurant owners surveyed said existing federal emergency measures won’t help them keep employees on their payrolls throughout the downturn, the trade group said.

The small-business program, for its part, has already run out of its initial $250 billion in funds and Congress is negotiating to more than double the money available. A final vote is expected this week.

Assuming the economy begins to gradually reopen by June, the NRA estimates total restaurant losses of $240 billion by year end. The group is seeking a “Blueprint for Recovery plan, administered by the Treasury, to help with operating expenses, worker rehiring and retraining and adjustment to new health and social-distancing standards. “The restaurant industry has been the hardest hit by the coronavirus mandates — suffering more sales and job losses than any other industry in the country,” Kennedy wrote in a letter sent to MarketWatch. ”As past recoveries have proven we will be one of the slowest to bounce back.” Congress has already put in place a bailout for the airline industry as well as small businesses and more industries might line up, including the hotel and travel business. State and local governments are also asking for massive doses of federal aid to offset collapsing budgets and tax returns.

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The refusal of importers to consign their imports to other ports in Nigeria except Lagos is having a huge toll on the economy. Estimate shows that Nigeria is losing about N7.2 trillion annually to traffic grid lock in Apapa-Oshodi expressway way due to presence of trunks and articulated vehicles that are parked indiscriminately along the road. This is about 70 per cent the federal government budget for 2020. However the federal Government says it plans to engage relevant stakeholders to address the persistent traffic gridlock at the nation’s ports. Rep. Victor Akinjo, Chairman, House of Representatives Committee on Privatisation and Commercialisation, said this during the committee’s tour of facility at the Ocean and Cargo Terminal in Warri. Akinjo said that the gridlock cost Nigeria about N600 billion monthly which he said was a huge lost.

“When we interface with importers and exporters in Lagos, we discovered that the traffic gridlock is costing Nigeria N600 billion monthly. We took it up on Wednesday at the level of the parliament; we want to engage all stakeholders to see what can be done urgently,” he said. The committee chairman said the purpose of the visit was to interface with the maritime operators and regulators. “Port is the gateway to any economy in the world. You cannot carry tonnage of goods through the air, it must come through the water. The only way to achieve this is to ensure that our ports are efficient and effective. The essence of the visit is to interface with the operators and regulators and take on issues I called “privatisation laboratory” and find ways to solving the issues,” he said.

Akinjo commended the management of Ocean and Cargo Terminal, urging them to aggressively pursue delivery on its obligations as contained in the agreement. “The committee under the Speaker of the House of Assembly, Rep. Femi Gbajabiamila, in concurrent with our legislative agenda, are very concerned that there must be fairness, justices and financial equity in things we do. We will not allow your investment to go down the drain nor allow the regulators to over task you. But more importantly to allow Nigerians to benefit from every transaction,” he said. Responding, Mr Olatunji Olusinde, the Executive Director (Legal Unit)/Secretary, Ocean and Cargo Terminal, said that the company would create about 300 direct jobs when it comes on stream.

Olusinde said that skeletal operations would commence in January 2020.

He appealed to the Federal Government to fast track the dredging of the Escravos water channels to allow navigation of bigger vessels. “The real port terminal operations cannot commence until the channel is dredged. Only lighter vessels and barges can come in now and those are not commercially viable for terminal operators. So, we are appealing to the government to hasting action on the dredging of the channel. “This port is strategic, a gateway to the East, North and the Middle belt. Beside, it will ease the burden of congestion the we are witnessing in Lagos,” he said. In his remarks, the Delta Port Manager, Mr Okeke Okeke, said that the port would create a multiplier effect when it runs optimally. Majority of the importers in Nigeria are from the North, Middle Belt and Eastern parts which is out of catchment areas. They said that if the port runs optimally, they will divert their attention to this port because of proximity and other reasons,” he said. Okeke, however, said that the port was in synergy with the Nigeria Navy and the host community to ensure adequate security.