Why Nigeria must develop indigenous energy transition solutions — Business

Nigeria must develop its indigenous energy transition solutions in order not to be controlled by the developed world, the General Manager, Corporate Communications and zonal coordination, Nigerian Content Development and Monitoring Board (NCDMB), Dr Ginah. O. Ginah, has said.

Dr Gina, who disclosed this during a capacity building workshop for the media in Abuja, explained that the board adopted research and development to guide energy transition solutions.

“We have consistently made the point that Nigeria needs to build up our local R&D capabilities in the oil and gas industry and come up with innovative solutions to drive our energy transition, otherwise, the developed world would dictate to us what to do in this conversation,” he stated.

He added that the workshop was part of the board’s strategy to continually engage media stakeholders to build their capacities and keep them abreast of major initiatives as well as developments in the oil and gas industry and the journalism profession.

He stressed that beyond the traditional role of promoting Nigerian content, activities and sensitising the public about the imperative of local content to national development, the NCDMB expects the media to promote local content agenda and carry out a whistleblowing role by exposing non-compliance activities by players in the industry through investigative journalism.

Gina observed that the world would witness energy mix or redistribution rather than an outright swap of fossil fuels to renewable energies.

He revealed that in its effort to operationalise the decade of gas declaration, NCDMB has made several interventions in the gas value-chain which span the development of LPG storage terminals and jetties, inland gas processing to produce LPG and propane, infrastructure for gas gathering and injection into gas pipeline networks, CNG facilities, and manufacturing of composite LPG cylinders.

He asserted that most of the board’s partnerships are designed to promote or realise strategic policies of the federal government in the petroleum industry, adding, “our goal is to catalyse strategic government policies and programmes and then exit once those businesses become successful.”

Speaking on,’Success of Nigerian Content Intervention (NCI) Fund’, General Manager, NCDF and Treasury Management, NCDMB, Obinna Ofili, who revealed that the fund has hit $300 million or N123 billion, accessed by 53 companies attributed to the growth of the fund to the access to loans under the scheme that is based on lending criteria agreed with Bank of Industry, which is intended to maintain the integrity of the Fund and return of borrowed funds and interest in full by beneficiaries.

To prevent abuse, he disclosed that officials of the Board and Bank of Industry jointly conduct routine monitoring of projects and activities financed with the loan finance and there is also a regular yearly external audit of the Fund.

Additionally, he said there is no bad loan under the scheme presently as all the loans are performing and meeting their obligations.

“Three companies have so far fully liquidated their loans. Loan disbursements presently stand at over 100% of the Fund size, as Bank of Industry is already re-lending recovered loans paid back by initial borrowers under the scheme. The success of the NCI Fund has birthed the working capital and capacity building fund and the Women in Oil & Gas Fund domiciled with and managed by NEXIM Bank and having seed capital of $50 million and counterpart funding of additional $50 million in Naira.”