Oil and trade in Africa (2)
The pending Petroleum Industry Bill (PIB) at the National Assembly, if passed into law, is expected to transform the oil and gas sector. It is equally hoped the same bill will improve on the inefficiency of the National Oil Company (the NNPC). Regrettably, this corrupt-ridden corporation is said, according to records, to have over the years provided to the Federation Account about N400 billion monthly from its upstream operations, but Nigeria is fast and obviously losing its grip on the glories meant for it in the continent to another hydrocarbons-rich nation within the continent. The NNPC, presently headed by Andrew Yakubu (group managing director), no doubt ought to truly stand out as the nucleus of the Nigerian economy, but the reverse is the trend since inception (unless the present GMD proves otherwise). The economic interest of the state was (and still is) never placed first or as a priority by the managers/operators of the corporation, hence the imminent unfolding poor performance position with respect to optimal utilisation of the opportunities in the petrochemicals development of the oil and gas sector in the continent. The legislators (senators) in the National Assembly are not helping matters either, due to self-aggrandisement and the federal character syndrome attached, by the undue delay of this all-important working document: the PIB. The most painful aspect of our economic struggles in the oil and gas sector is that the NNPC is not helping matters at all! It needs to rethink and repent for the sake of the nation.
Nigeria, known as the largest oil producer in Africa, is currently grappling with the challenges of oil theft and pipeline vandalism within the Niger Delta region, which is no doubt hurting on the nation’s economy and also causing more harm on growth and development. This unpatriotic act and sabotage caused late President Umaru Musa Yar’Adua, in 2008, to cry out by cautioning the youths of the Niger Delta region for restraint so that Nigeria would not lose its glory in the continent to yet another hydrocarbon-based fast-growing economy in the oil sector (Angola). He capitalised on his speech (at a PDP campaign rally in Bayelsa for former Governor Timipre Sylva’s rerun in 2008) to mention petrochemicals industrialisation while pleading with the youths for the current global energy development from hydrocarbon resources. Shortly after, on Tuesday, May 13, 2008 in Aso Rock Villa, I seized the opportunity of a presidential handshake to congratulate the late President Yar’Adua and then Vice President Jonathan and commend their efforts in the proposed petrochemicals projects. (Being among the 41-man delegation during the late Yar’Adua’s induction ceremony and investiture as a Fellow of the Institute of Chartered Chemists of Nigeria, I stood with him and his vice.) The late president might not have been taken seriously by some that heard him address the youths in Bayelsa State on that fateful day of Sylva’s rerun campaign, but today, Angola is set to outpace Nigeria’s oil production and is visibly well run and even better supported! As a chemist, Yar’Adua indeed saw beyond what non-professionals could fathom based on the worries and anxiety his speech/prophecy allayed.
President Jonathan’s transformation agenda requires speed to promote and develop the petrochemical sector for the nation to be able to diversify and at the same time increase its export base. This strategy is critical and the Jonathan administration is urged to utilise every available tool and opportunity to create a strong and virile industrial sector that will effectively support the nation’s economy from downstream oil and gas operations with or without the current divestment by the international oil majors (the multi-national oil industries) in the upstream oil sector, or the present slash on Nigeria’s oil exports to the US due to the ongoing shale oil boom. Actually, Chevron and ConocoPhillips (the initial promoters of the project) gave up on the liquefied natural gas (LNG) project and are now lifting from Angola due to delays at our end, and we are fast losing market share of prospective customers.
That Nigeria is now unattractive or the most-affected OPEC member with the boom on US domestic shale oil and gas or the international oil giants that are now drifting to Angola for heavy investments is no big deal. Let the Federal Government (NNPC in particular) re-plan its strategy in the downstream oil and gas sector, with a determined profit-making aim, and specifically focusing on the diverse opportunities the petrochemicals operations development avails the economy technologically. I am saying this as a businessman because no matter the pressure, tough times never last! With political will to get the PIB signed into law (without further delay) and proliferation of clusters of cottage petrochemical plants within the economy, we will be the trade destination in the sub-Saharan African petrochemicals export market. The growing demand for natural gas within the region and at the international market would be interestingly competitive if only the NOC would patriotically develop and transparently position its products with attractive pricing and export marketing strategies to other potential customers, even in the Asian markets.
Nwachukwu writes from Onitsha,
Anambra State.
schubltd@yahoo.com
Send reactions to:
comment@s19080.p615.sites.pressdns.com/en