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…OTL has grown into a vital platform for discourse – Oyebanji
The Federal Government has invested over $75 million in launching Compressed Natural Gas (CNG) systems to encourage cleaner energy usage in Nigeria, the Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, has said.
She also Tinubu’s administration has created a more transformed environment for efficiency and transparency with incentives to promote Liquefied Natural Gas (LNG) and CNG equipment, as well as electrical vehicles.
She added that FG was determined to provide a cleaner cooking option which comes with affordability.
She also said Nigeria has the capacity to make refineries perform better through collaboration and that these alliances are needed to change the outlook of the industry.
Verheijen, represented by Team Lead, Office of the Special Adviers to the President on Energy, Eriye Onagoruwa spoke on Monday at the Oil Trading and Logistics (OTL) 2024 Expo Africa Downstream Energy Week. The theme of the summit was: “Alliances for Growth – Markets, Operations and Policy.”
According to her, Tinubu’s administration has created a more transformed environment for efficiency and transparency with incentives to promote LNG and CNG equipment, as well as electrical vehicles.
She also lamented the low oil production of Nigeria.
She said: “We all recognize the crucial role the downstream energy sector plays in the national economy, providing essential energy products that power our homes, offices and machinery.
“This sector takes raw energy resources and transforms them into usable products that underpin the smooth functioning of our daily lives and livelihoods.
“Nigeria and Africa have significant reserves of energy and renewables. But of course, potential and reality are different things. Nigeria boasts an impressive history of over 80 years in oil and gas production, yet our current outpost and investment levels do not reflect our true or actual capacity.
“We have stagnated below 2 million barrels per day of oil production for many years now despite the potential to easily double that figure. Also in spite of our holding 38% of Africa’s hydrocarbon reserves, we have been able to capture just 4% of oil and gas investment in Africa since 2016 the downstream segment has not been immune to these challenges facing the industry.”
Chairman of the Advisory Board, OTL Africa Downstream Energy Week, Mr Adetunji Oyebanji, said the 18th edition of the OTL Africa Downstream Energy Week brought together the leading minds across the energy value chain to exchange insights and ideas and to strengthen the connections that drive the industry forward.
He stated that OTL has grown into a vital platform for discourse, collaboration, and innovation within Africa’s downstream sector.
He said: “This year’s event takes place against the backdrop of two major industry milestones. First, the recent full deregulation of Nigeria’s downstream sector, along with the shift to a market-based gasoline pricing system, marks a fundamental change in our market. Deregulation introduces new opportunities for competition, transparency, and efficiency, while market-based pricing sets a pathway for stability and fair value distribution across the supply chain.
“Secondly, we are celebrating the commissioning of the long-awaited Dangote Refinery, a project of enormous scale and significance. With a capacity of 650,000 barrels per day, this refinery is not only a testament to Nigeria’s industrial capacity but also a transformative development for the entire West African region.
“Together, these two milestones will shape industry dynamics for years to come, impacting everything from refining operations and distribution to market competition and consumer access.”
Governor of Lagos State, Mr. Babajide Sanwo-Olu, represented by the Commissioner for Energy, Lagos State, Mr. Biodun Ogunleye said that energy transition isn’t simply replacing one energy source with another.
He opined that it is about developing an ecosystem that encompasses all elements including – exploration, production, storage and retailing.
He said: “Government has a significant role to play in streamlining downstream energy operations and Lagos State is committed to creating such environments to increase the value-chain and remain a leader in energy reforms and sustainability.
“We need private sector operators and innovative young entrepreneurs to drive energy transformations in Lagos State
“Our government is taking bold steps towards cleaner fuel options and we are paving the way for development but the vision cannot be achieved without stakeholders’ partnership.”
The Minister of State for Petroleum(Oil) Heineken Lokpobiri lauded OTL and its contributions.
He was represented by a Technical Adviser (Gas), in the ministry identified simply as Paulker.
He stated that the theme of this years’ event ‘Alliance for Growth;’ could not have been more apt at this pivotal time for the industry as the stakeholders navigate the complex dynamics in the industry and increase in the demand for technological advancement.
The Authority Chief Executive, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed is fully committed to supporting all the reform initiatives of President Tinubu in the Midstream and Downstream sector through enhanced regulatory processes including efficient issuance of licenses, permits and authorizations.
He said: “Last year, the OTL conference focused on “Energy, Synergy and New Beginnings”, and we excitedly reviewed the policy direction of the present administration and the strategic realities of the industry, which include the need for wider collaborations to harness huge potentials of the Africa’s energy resource; addressing the endemic challenge of energy poverty; and the critical need for project financing to bridge the deficit in infrastructure.
“This year, the organizers of the conference have adopted the theme ‘Alliances for Growth – Markets, Operations and Policy’. The keyword ‘synergy’ in the previous theme is similar to the keyword ‘alliances’ in the current theme. This shows the continuing imperative for effective collaborations between the stakeholders of the industry.
“Strategic collaborations and alliances are indeed required for the industry to effectively surmount the emerging and conflicting challenges related to climate action, geopolitical tensions, market stability, and ever-growing energy demand.
“Within the Midstream and Downstream sector, strong collaborations are required between regulatory agencies to facilitate ease of doing business, and between businesses to pool resources required for delivering complex projects.
“It is also necessary to expand regional collaborations to enhance cross border trade; and for the industry to establish a robust mechanism for sharing of best industry practices and capacity optimization.”
Chief Executive, National Petroleum Authority, Ghana, Dr. Mustapha Abdul-Hamid called for greater collaboration among stakeholders in the region and continent.
He said that Ghana uses $400m to import petroleum products monthly. He said that when considering the amount Nigeria uses given its larger volume the money will be very high. He therefore called for the adoption of a common currency to address the exchange rate issues.
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