Category: Economy

Energy
By Okeoghene Akubuike

Abuja, June 13, 2024(NAN) Mr Osi Okonkwo, General Manager, FranzEnergy Ltd, says the development of renewable energy resources can significantly contribute to economic diversification in Africa, with specific policies needed for that transition.

Okonkwo spoke at a Panel Discussion on “Driving Economic Transformation in Global Africa: The Role of Emerging AfriCaribbean Giants’’, at the ongoing 31st Afreximbank Annual Meetings (AAM2024) in Nassau, The Bahamas on Thursday.

The meetings are being monitored by the News Agency of Nigeria (NAN).

According to him, with regards to the renewable energy storyline, if done properly, it should mean a cleaner, healthier, more financially prosperous Africa with lots of jobs.

Okonkwo said it would require going further down into the value chain, and not just pushing energy and commodities off the continent.

“This is because there are opportunities therein,’’ he said.

He said some strategies could be put in place to enable renewable energy to go much further down the value chain.

“There is a need to delve into the actual production of solar panels, inverters and batteries, on the continent.

“There is so much more that can be done. But to do this, when you talk about strategy, a few things need to be done.

Okonkwo cited the instance of China that just launched a five GigaWatts (GW) solar farm, saying that the five GW capacity was about all of the power connected at the moment in Nigeria.

“So, when you think about the Chinese story, and try to use that as a template, there are a few things we have to do.”

He said there was a need to lean into the transition fuels first and foremost, such as gas, then facility; and use that as a transition fuel, for a cleaner future.

According to him, coming into the renewable space, there is also a need to go a little bit deeper and depend more on the more consistent replenishable versions of renewables.

“So, we have to think of hydro dams, geothermal where it is applicable.

“ Lean into that first and foremost, because the run off the mill solar farms and wind are more inconsistent,” he said.

With regards to policy, Okonkwo said there should be fewer but clear policies which allow for meritocracy of access to resources, and funding, among others.

He also said that the platter of policies should not get to a point where they would interfere and impede private sector ventures.

Okonkwo said the private sector had a key role to play when it came to strengthening African Caribbean economies.

He, however, said there needs to be significant development, increased access to capital, steering up industrial capacity and reducing the overdependence of commodities.

Mr Jean Louis-Ekra, former President, of Afreximbank, said that it was necessary to change the structures of African economies’, shifting away from relying solely on exports.

He said basic infrastructure needed to be in place as many countries still lacked power adding that nothing much could be done on transformation without power.

“We need to take advantage of the African Continental Free Trade Area(AfCFTA), and the issues of moving money, among others.

“Once we have dealt with some of the basics, then we can move forward and very quickly, to exporting among ourselves and take advantage of opportunities in the Caribbean’’

Louis-Ekra said that Africans had not done enough to use their financial resources.

“ We need to generate resources before we talk about financing.

“ I believe we have not harnessed enough of our own resources in our continent, to make it available to financial institutions so they can finance the change,” he said.

Dr Kingsley Mordi, Director, Bono Energy, restated the importance of putting basic infrastructure in place, with particular emphasis on energy.

NAN reports that the 31st AAM2024 is being held in Nassau, The Bahamas from June 12 to June 15.

It has the theme: “Owning our Destiny: Economic Prosperity on the Platform of Global Africa’’.
The AAM is taking place alongside the 3rd edition of the AfriCaribbean Trade and Investment Forum (ACTIF2024). (NAN)(www.nannews.ng)

OKE/VIV

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Edited by Vivian Ihechu

Naira

By Grace Alegba

Lagos, June 13, 2024 (NAN) The Naira on Thursday slightly depreciated at the official market trading at N1476.24 to the dollar.

Data from the official trading platform of the FMDQ Exchange, revealed that the Naira lost N2.58.

This represents a 0.17 per cent loss when compared to the previous trading date on Tuesday when it traded at N1,473.66 to the dollar.

Also, the volume of currency traded reduced to $92.68 million on Thursday down from $385.91 million recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between 1,500
and N1,400 against the dollar. (NAN)

GA/AWA

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Edited by Olawunmi Ashafa

Entrepreneur

By Nathan Nwakamma

Yenagoa, June 13, 2024 (NAN) A Professor of Finance, Mondy Gold, has advised the country to leverage the entrepreneurial potential of women for economic development.

Gold, of the Colorado State University, United States, gave the advice on Thursday while speaking at the Inter-University Summit at the Bayelsa Medical University, Yenagoa.

He spoke on “Gender Dynamics in Financial Access, Investment, and Economic Empowerment: Closing the Gap in Nigeria”.

He said it was essential to recognise the dynamic roles being played by Nigerian women in the entrepreneurial landscape.

“From technology and agriculture to fashion and healthcare, women are establishing businesses across a diverse range of sectors.

“However, despite their significant contributions, Nigerian women face disproportionate barriers that impede their full economic participation.

“For any country to develop, its economy and financial sectors must be championed by visionary, innovative, and goal-oriented individuals,” Gold said.

He says the entrepreneurship potential of women is evident in developed nations such as China, Australia, Germany, the United States of America, the United Kingdom, Canada, and Japan.

He noted that the listed countries had achieved unprecedented success through the development of entrepreneurship, especially amongst the female gender.

“These countries are reaping the benefits of the creativity and drive of women entrepreneurs.

“In stark contrast, women entrepreneurs in emerging countries like Nigeria have not triumphed due to numerous challenges posed by the environment,” he said.

He listed such obstacles as limited access to capital and financial planning, streamlined information, the need for tailored business skills education and inadequate direct connections to mentors and networks.

He said these issues had been further exacerbated by skill gaps and entrenched social norms that inhibit women’s full participation in economic life.

According to him, research has consistently revealed that boosting women’s economic participation enhances national economies and improves household productivity, living standards, and overall well-being.

“Nigerian women’s businesses are pivotal in driving job creation, promoting innovation, and fostering a more inclusive and equitable economy,” he said.

Gold recommended that to harness the full potential of women’s entrepreneurial endeavours, the country needed to create more viable national organisations to support women.

He recommended the creation of state chambers of commerce, representing the interests of all women entrepreneurs and supporting savvy women with keen eyes for success across all industries. (NAN) (www.nannews,ng)

NN/MAS

Edited by Moses Solanke

Energy

By Lucy Ogalue

Abuja, June 13, 2024 (NAN): Stakeholders say technological innovation, substantial investments, and effective policy frameworks are critical to securing Africa’s sustainable energy future.

The stakeholders spoke at the Africa Gas Innovation Summit (AGIS) 2024, held in Abuja on Thursday.

The News Agency of Nigeria (NAN) reports that the summit’s theme is “Igniting the Future: Driving Sustainability in Africa’s Energy Landscape through Gas Technology and Innovation”.

Mr Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, said technology and innovation played a pivotal role in reshaping Africa’s energy sector.

Mr Olalekan Ogunleye, the Executive Vice-President Gas, Power and New Energy, NNPC Ltd, represented Kyari.

“There is no doubt that technology and innovation remain key levers for growth and development, as can be seen in the drastic transformation of our industry,” Kyari said.

He elaborated on NNPC’s strategic focus on research and technological advancements, underscoring the establishment of a dedicated entity for research, technology, and innovation (RTI).

He said; “the NNPC’s initiatives have led to significant progress, particularly in seismic mapping and multivariate analysis for evaluating source rock potential.

“Indeed, today, the RTI is the hub of the NNPC due to the great emphasis on research and innovation.

“I am urging the participants to embrace the challenge of providing customised solutions aligned with the priorities of the African energy sector.’’

Kyari expressed NNPC’s commitment to leveraging gas technology and innovation to enhance sustainability in Africa’s energy landscape.

“NNPC is pleased and proud to have this veritable summit join it in its quest to ignite the future and increase sustainability in Africa’s energy landscape,” he said.

Similarly, Madam Amina Benkhadra, the  Director-General of Morocco’s National Office of Hydrocarbons and Mines (ONHYM), said there was an urgent need for major investments and innovative technologies to address Africa’s escalating energy demands.

“To unlock Africa’s energy future, we must develop major infrastructure projects and mobilise international investments.

“And the continent has strong potential in driving sustainable growth through gas and renewable energy.”

According to Benkhadra, Africa will require over 100 billion dollars annually in the power sector by 2030, with total investments reaching up to” three trillion dollars by 2050 to satisfy its increasing electricity demand.

The ONHYM director-general said gas remained the backbone of the global energy transition.

She recalled the African Atlantic Project, a strategic gas pipeline initiative that Morocco and Nigeria inaugurated as a key effort towards enhancing energy security and economic integration across West Africa.

Benkhadra then restated the importance of cooperation on the continent to ensure sustainability in Africa’s energy landscape.

“We must develop specific cooperation between African countries and other stakeholders worldwide.

“There is a need for deeper regional cooperation and public-private partnerships to drive investment on the continent.

“Morocco is committed to strengthening energy partnerships across Africa. We are dedicated to increasing and reinforcing our specific cooperation with all the African Sub-Saharan countries, especially in West Africa,” Benkhadra said.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, represented by his Permanent Secretary, Nicholas Ella, said effective policy frameworks and capacity building were crucial in fostering a thriving African gas sector.

“Our policies must be forward-looking, adaptable, and inclusive. They should address the unique challenges and opportunities of the African context.

“Such policies are essential for promoting transparency, accountability, and the equitable distribution of benefits within the gas sector,’’ he said.

According to the minister, there is a need for a skilled and knowledgeable workforce in the sector.

“Capacity building must be at the forefront of our agenda. This involves investing in education and training programmes, promoting technical and vocational education, and fostering a culture of continuous learning and professional development.

“The role of entrepreneurship and innovation is also underscored, with a call for support for entrepreneurs developing sustainable business models within the gas sector.

“By aligning our policies with global sustainability goals, we can position Africa as a leader in the global transition to a low-carbon economy,” Ekpo said.

The minister lauded the Africa Gas Innovation Summit 2024 as a significant milestone in the journey towards a sustainable energy future.b

” By embracing gas technology and innovation, shaping effective policy frameworks, unlocking financing avenues, nurturing capacity building, and cultivating entrepreneurship, we can ignite the future and drive sustainability in Africa’s energy landscape.’’

The Summit Chairman, Olalekan Ogunleye, said technology and innovation were key to exploring the resources that would enable Africa to transition to gas.

He said: “let us key to this, not just for economic or global trends but for our community and development.

“So our quest should be supported, and we (NNPC and Nigeria) will support every effort Africa makes to ensure we explore this resource.

“Innovation and technology require huge funding, but we can source this by embarking on a short-mid-long term plan.

“And I am optimistic that this summit will provide an opportunity to synergies on how we can explore these resources, and I hope we find direction to this at the end of the day.’’

NAN reports that the two-day summit was attended by government officials, partners, and key stakeholders in the energy sector on the continent. (NAN)(www.nannews.ng)

LCN/EEE

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Edited by Ese E. Eniola Williams

Gas
By Rukayat Moisemhe
Lagos, June 13, 2024 (NAN) Some experts have called for a well-articulated and sustainable programme to decentralise the power sector regulatory environment and incentivise investors to boost natural gas production in Nigeria.
They said this at the American Business Council (ABC) Economic Update with theme: “Energising Nigeria: Navigating Challenges, Harnessing Opportunities,” on Thursday in Lagos.
Prof. Barth Nnaji, the Chairman, Geometric Power Ltd., said for almost three decades, the world had been possessed with finding a solution to climate change, having identified fossil fuel as the main culprit to global warming.
Nnaji noted that Nigeria had set a target of 2030 to achieve complete flare-out in its oil industry with various aspirations to pursue renewable energy options.
Nnaji noted that, unfortunately, the non-availability of adequate gas for power and industrial processes would afflict all the initiatives, in spite of the country’s proven natural gas reserves of over 206 trillion cubic feet.
He said that while government must be commended for exploring overseas markets for Nigeria’s natural gas for its benefit, they should bear in mind that ‘charity begins from home.’
“It is not just local power producers that are currently bleeding owing to insufficient gas.
“There is no sufficient liquified petroleum gas for our kitchens and people are now resorting to firewood and coal for cooking, thus worsening the environmental crisis,” he said.
Nnaji, also former Minister of Power, stressed the need for a total overhaul of the transmission arm of power generation, saying that the current national grid is grossly inadequate for 200 million.
“Nigeria needs over 100,000 MW to meet its energy needs and we currently have just 13,000MW of installed capacity from which we are only able to put less than 5,000 MW on the grid due to reasons primarily of gas and transmission constraints.
“The Nigerian government at every level should employ already tested approaches to collaborate with competent private sector operators to quickly progress power availability to the level that matches our country’s sustainable economic growth desire,” he said.
Mrs Margaret Olele, Chief Executive Officer, American Business Council, noted that the theme of the event was a critical conversation on how government and private sector can best move forward to energise the country.
Olele noted that in spite of the economic reforms by the current administration and the implementation of the Petroleum Industrial Act, Nigeria was still unable to meet Organisations of the Petroleum Exporting Countries (OPEC) production quota.
“Issues of theft, insecurity have impacted the country meeting its OPEC quota and it is important to address this because a major chunk of the country’s revenue is tied to the power, oil and gas sector.
“The gas we have is still underutilised and power generation issues is impacting manufacturers and everybody in general so we are here to unload and shift your mindsets from the status quo to innovation and progression amidst the challenges,” she said.
Mr Martins Arogie, Partner, Energy and Natural Resources Services, KPMG, said that Nigeria’s energy industry was considered one of the most inefficient in meeting the needs of its customers globally, in spite of the country’s enormous energy resources.
Arogie noted that underutilisation of these resources was rampant and exacerbated by a chronic imbalance in the electricity and petroleum products markets.
This situation, Arogie said, had threatened Nigeria’s energy security, harmed the economy, increased income inequality and energy poverty, weakened industrialisation processes, and the undermine efforts to achieve sustained economic growth.
“In a market where demand far outstrips the current supply, Nigeria’s energy sector presents attractive investment opportunities within its various subsectors including oil and gas, electricity and renewables.
“With an abundance of both renewable and non-renewable resources, Nigeria provides immense opportunities for sustainable solutions to address existing energy demand gap and contribute to government’s drive to improve the efficiency and contribution of the sector.
“Therefore, it has become imperative for all the stakeholders to collaborate to address the challenges hampering the development of energy sector and unlock the vast opportunities that it holds for the country, Africa and the world,” he said.
Mrs Eyono Fatayi-Williams, President, Women in Energy Network, noted that Nigeria, blessed with a lot of natural resources, has a 206 trillion feet of proven gas reserves, which means there’s so much that can be done to harness the country’s gas resources.
Fatayi-Williams noted that the country had a lot of room for growth, particularly as gas has been recognised globally as the transition fuel in energy transition.
“So, gas development is a good thing and gas development will help in closing the huge deficit we have seeing that what Nigeria produces and what it needs are at two different points apart.
“But I think our message is the government declared a decade of gas and we are still in that decade and that decade of gas is supposed to be the big ticket, and we look forward to that happening.
“I think the government can continue in that trajectory and we are bound to see positive changes and we look forward to when Nigeria can actually become a gas-powered economy in 2030,” she said.(NAN)(www.nannews.ng)
ARM/JNC
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Edited by Chinyere Joel-Nwokeoma

Report
By Okeoghene Akubuike
Abuja, June 13, 2024(NAN) The African Export-Import Bank (Afreximbank) has unveiled the 2024 edition of its African Trade Report and African Trade and Economic Outlook at its Annual Meetings (AAM) 2024 in Nassau, The Bahamas.

The African Trade and Economic Outlook Report forecasts that African economies will grow on average by 3.8 per cent in 2024.

The report, titled ‘A Resilient Africa: Delivering Growth in a Turbulent World,’ provides an analysis of the economic environment, trade patterns, debt scenarios, and future projections for African economies.”

A look at the report which was unveiled on Wednesday showed it is slightly ahead of the predicted global growth of 3.2 per cent prior to an increase of 4 per cent in 2025.

Presenting the reports, Dr Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director of Research and International Cooperation, said: “ Ongoing global challenges undermined the performance of Africa’s trade, which contracted by 6.3 per cent in 2023 after expanding by 15.9 per cent in 2022, while intra-African trade expanded by 3.2 per cent over the same period.

“This performance is reflective of the resilience of the African economy and the potential impact of the African Continental Free Trade Area (AfCFTA) single market for the continent as a tool to protect them from global shocks.

“Our analysis in the report also revealed large untapped potential in intra-African trade, especially concerning machinery, electricity, motor vehicles, and food products.”

The News Agency of Nigeria (NAN) reports that the documents reveal that African economies faced several downside risks, including increasing levels of sovereign debt and associated sustainability risks

Others were excessive exposure to adverse terms-of-trade shocks, escalating geopolitical tensions in some cases, and volatile domestic political environments in certain African countries and high commodity prices and inflationary pressures, and potential food insecurity”

Also, in a statement, Vincent Musumba,Manager, Communications and Events (Media Relations), Afreximbank , said most macroeconomic indicators were expected to improve in 2024 and 2025.

“Growth in the continent is projected to be higher than the global average, and although inflation is currently high, it is expected to decrease, with this downward trend continuing into 2025.”

Musumba, on the African Trade Report 2024 titled “Climate Implications of the AfCFTA Implementation”, he quoted Kale as saying, “ the report concludes that the AfCFTA offers a path to achieving the developmental goals of African nations while also addressing climate change concerns.”

Kale said that while the benefits of the AfCFTA could be seen, the debate on its impact on climate change was still ongoing.

“One group believes that increased urbanisation and industrialisation associated with the AfCFTA will worsen carbon emissions.

“The second group believes that by emphasising intra-African trade and reducing extra-African trade, carbon emissions will be eliminated through shorter shipping distances.”

Overall, the report stated that optimising the AfCFTA could result in potential gains through increased intra-African trade and investment.

“This will create economic prosperity and fulfil the vision of the founding fathers.”((NAN)(www. nannews.ng)

OKE/VIV

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Edited by Vivian Ihechu

By Bushrah Yusuf-Badmus

Ilorin, June 13, 2024 (NAN) Pepper, a common spice in the cuisines of many Nigerians, has suddenly become a scarce commodity in Kwara’s capital city of Ilorin as Eid-el-Kabir approaches.

In a market survey conducted by the News Agency of Nigeria (NAN) on Thursday at the Mandate market, in the Ilorin West Local Government Area where pepper is sold in large quantities, the commodity has become expensive in the past few weeks.

NAN reports that the product had become scarce, with little or none in sight, including tomatoes.

Some pepper sellers attributed the scarcity to flooding and pest attacks in the North where pepper is grown in large quantities.

Mallam Jamilu Isa said they were expecting the vehicles that bring pepper and onions, but they were informed that there was no goods for them to load.

He lamented that all had been washed away by flood and those not washed were affected by pests.

A small container of tomatoes formerly sold for N150 now sells for N2,000 while a wastebin basket formerly sold for between N1,500 and N2,000 now goes for N15,000, and big basket of N10,000 now sells for N175,000 and above.

Also, a basket of Scotch Bonnets popularly called “rodo” sold for N1,500 before, now goes for N12,000.

Similarly, a bag of onions now goes for N75,000 as against N50,000 and below that it was sold.

According to the National Bureau of Statistics, food prices in Nigeria increased 40.53 per cent in April of 2024 over the same month in the previous year and food inflation reached an all-time high of 40.53 per cent in April of 2024.

In a visit to ram dealers, they lamented low sales as buyers complained of the high prices of rams.

A ram seller, Mr Azeez Abdullahi, said the ram that went for N50,000 a few years back is sold for between N170,000 and N200,000 and above this year.

He identified the high cost of feeds and transportation as responsible for the hike in the price of the ram.

A prospective customer, Mr Yahaya Usman said with the exhorbitant price, some of his friends are planning to contribute money to buy a cow and share which is also acceptable in Islam as an alternative to rams. (NAN) (www.nannews.ng)

BAY/MNA

Edited by Maureen Atuonwu

Women miners laud FG over repositioning of sector

Minning

By Martha Agas

Abuja, June 13, 2024 (NAN) An association, Women In Mining In Nigeria (WIMIN), has lauded the efforts of President Bola Tinubu`s administration for its policies and initiatives aimed at repositioning the mining sector.

The National President of WIMIN, Dr Janet Adeyemi, made the commendation in an interview with the News Agency of Nigeria (NAN), on Thursday in Abuja.

Adeyemi commended the efforts of the administration, particularly in facilitating the ease of doing business within its first year in the solid sector, through its policies and incentives.

“I believe that he has created more robust environment, encouraging people to come into the sectors through his declarations and pronouncements on the sector.

“You can see the President going round from country to country and then receiving visitors, and the issue that tops his agenda in most of these discussions are things to do with solid mineral development.

“The mere fact that they are committed, talking about it, and thinking to engage the public, is an indication that the government is serious on promoting the mining sector,” she said.

She said that for Nigeria to diversify its economy, it must take advantage of the abundant solid mineral resources it possessed in commercial quantities across its states, to develop its local economy.

She, however, said that even though Nigeria possessed the critical minerals needed for the global energy transition, it must have a record of proven reserves certified by a competent person or company,

She said that the move would help Nigeria access funds for its development and also attract big players to invest in the sector, boosting the country`s Gross Domestic Product.

“We keep on talking that Nigeria has the largest deposit of Bitumen, Nigeria has so many diverse minerals, but there is something in mining, you must have a proven reserve by a competent person,” she said.

According to the president, certified mining reports, in addition to attracting investors to the sector, will ensure Nigeria benefits from such partnerships, especially through value addition to its minerals.

She said that for Nigeria to reap from the solid minerals sector, it must enrich its sustainable development policies with community engagement tools, such as stakeholder mapping, social impact assessment, and community development programmes.

She added that with policies on benefit-sharing mechanisms, capacity building, partnerships with NGOs and traditional institutions, as well as collaboration between government and mining companies, Nigeria would be able to accomplish a great deal.

She lauded the efforts of the Minister of Solid Minerals, Dr Dele Alake; in ensuring the sector was gender friendly.

She acknowledged his recent support in the inauguration of the Genders Strategy for mining and steel sectors, which was a demonstration of his resolve to implement an inclusive approach for ensuring sustainable development in the sector.(NAN)(www.nannews.ng)

MAA/AMM

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Edited by Abiemwense Moru