Port Harcourt International Airport, Omagwa and Murtala Muhammed International Airport (MMIA), Lagos have been rated among the worst 20 airports.

This is outcome of a survey by renowned aviation organization, Sleep in Airport (sleepinginairports.net). The website ranked Lagos the fifth worst airport in the world, while Port Harcourt was ranked the third worst airport globally.

The criteria used included comfort (gate seating and availability of rest zones), services, facilities and things to do, food options, immigration/security, customer service, cleanliness, navigation and ease of transit and sleepability. The website explained that the airports that appeared on the list of worst airports in the world are those that have the capacity to truly offend travellers.

“Within these terminals, there appears to be a general disinterest in a positive traveller experience. In some cases, passengers are made to stand or sit on the floor as they await their flights. In others, the bathrooms don’t have water, toilet paper, or any semblance of cleanliness,” it said.

“In some cases, the physical structure of the airport is fine, but the personnel are the problem. Got a problem? Don’t expect much in terms of customer service at these airports.

“If you find yourself travelling through one of these 20 terminals, brace yourself. You’ll want to give yourself just enough time to get in and get out. A minute more and you’ll be unhappy and uncomfortable – a minute less, and you risk missing your flight”, it added.

Port Harcourt International Airport, Nigeria (PHC)

It doesn't matter what type of VISA you have, they will tell you it's the wrong one and you must pay for the correct one. Inefficiency is rampant with people repeatedly going through your luggage and asking for $ or for you to do something for them. Virtually every person there seeks to extort $ from you. You will hear the phrase "You have something for me?" over and over. - survey respondent

Lagos Murtala Muhammed International Airport, Nigeria (LOS)

Every offical ask you for money. Don't tell them you have cash, otherwise, the customs offical will take you to the dark room. But if you give the money to the Nigerian Offical, you can bring anything on to the plane. - survey respondent

 

In order of ranking, the worst five airports in the world comprised Juba International Airport, South Sudan (JUB), Jeddah King Abdulaziz International Airport, Saudi Arabia (JED), Port Harcourt International Airport, Nigeria (PHC), Crete Heraklion International Airport, Greece (HER) and Lagos Murtala Muhammed International Airport, Nigeria (LOS).

Others are Santorini Thira National Airport, Greece (JTR), Dar es Salaam Julius Nyerere International Airport, Tanzania (DAR), Rhodes International Airport, Greece (RHO), Paris Beauvais-Tille Airport, France (BVA), Tashkent International Airport, Uzbekistan (TAS) and London Luton International Airport, England (LTN).

 

Credit: Daily Post Nigeria & SleepinginAirports

 

The federal government of Nigeria said it has recovered the sum of $64.630, 065 billion from Niger and Benin republic as part payment for electricity supply to the two nieghbouring countries.

Minister of Works, Energy and Housing Babatunde Fashola (SAN) made this known at the 21st monthly power stakeholders meeting in Asaba Monday. 

Addressing heads of DISCOS across the country in the power sector, the minister said generation has hit 7,000mw due to the stable peace in the gas producing area of Niger Delta region. According to the minister, “for the first time in the history of power sector, hydro and gas combined together to improve electricity needs of the country.

“This is a fair balance and now that the waters are going down it is also the time for us to prove our mettle by stabilizing upward, the power being generated. “We have also been able to recover $64.630, 065 billion from Niger and Benin republic as part payment for electricity supply to the two nieghbouring countries,” the minister added.

Speaking further, Fashola tasked Nigerian lawmakers on the need to come up with legislation prohibiting encroachment on the right of way of power lines, vandalization of electricity installations and another that will support collection of bills among others.

The minister appealed to electricity consumers to pay their bills regularly without which DISCOs would find it difficult to provide services, adding that the greatest challenges facing consumers were estimated billings and insufficiency in mater which he said were being addressed by Nigeria Electricity Regulation Commission (NERC).

 

Daily Post Nigeria

Concerns about safety and security are substantial in Nigeria. Here, crime is high and the police are considered corrupt and inefficient. The structure of law enforcement does not help. Police are run at the federal level despite long-standing calls for state forces. Given that Nigeria has many diverse languages, cultural practices and terrain, the centralised police face many difficulties.

These conditions are conducive for vigilantes – civilians who undertake their own crime control. Although vigilantes can be effective in providing safety and security, their use poses several problems. They sometimes take the law into their own hands and dispense justice as they see fit. Yet in Nigeria they often have authorities’ approval.

The Borno vigilantes fighting against Boko Haram, whose activities have attracted widespread media coverage, illustrate this well. Referred to as the Civilian Joint Task Force, they began in 2013 as a group of local hunters intending to protect their communities, but quickly became integrated into the government’s official counter-insurgency.

With greater knowledge of the local community and terrain than officials, the Civilian Joint Task Force has been successful in identifying Boko Haram members and limiting their attacks. Nevertheless, they have been implicated in abuses, including extrajudicial killings. There are fears that they could evolve into an ethnic militia or be used for political means.

The Civilian Joint Task Force is not the only example. The use of vigilante groups to protect lives and property, with official support, has become part of the fabric of Nigerian society.

Profiles of the main groups

Vigilantism is not a new phenomenon in Nigeria. Traditional hunter guards have pre-colonial origins, and were authorised by the British regime during World War Two. The politicisation of hunter guards after independence led to prohibition. However, vigilantism continued, with groups proliferating in the 1990s:

The Bakassi Boys

Originally a group of shoe producers patrolling the Ariaria market in Aba 1998, the Bakassi Boys quickly spread across the city. They were successful in preventing crime. The state government renamed them the Abia State Vigilante Service in 2000, providing them with funds and equipment.

That same year, the Anambra State governor invited the Bakassi Boys to deal with heightened crime at the Ontisha market. Subsequently, the State House of Assembly passed a law to legitimise the group as the Anambra Vigilante Services. A nearby state, Imo, followed suit.

In all three areas, the vigilantes were controlled by an official committee. However, this did not quell executions and other abuses, including political killings. Efforts by the federal government to ban these groups failed, and the Bakassi Boys continue to operate.

Oodua People’s Congress

The Oodua People’s Congress, based in Southwest Nigeria, was founded by Yoruba intellectuals to promote Yoruba historical and cultural research after the Moshood Abiola debacle. Abiola, a Yoruba, won the 1993 presidential election which was annulled by the military government. He was jailed and later died in prison. In 1996 the group’s mandate was expanded to include vigilante activities.

As members opposed military rule, they became involved in political vigilantism during the 1999 election. When former army general Olusegun Obasanjo won, he banned the group.

This ban failed to stop the Oodua People’s Congress from operating and committing violent acts. They became increasingly politicised. By supporting President Goodluck Jonathan in the 2015 elections they were awarded a contract to guard the Nigerian National Petroleum Corporation pipelines. This contract was withdrawn after Muhammadu Buhari was elected instead.

Although the Oodua People’s Congress’ relationship with the federal government is unstable, it tends to have state support. They recently collaborated with the Lagos police to combat the murderous Badoo cult.

The Hisbah

Many states in northern Nigeria have implemented Sharia law. In 2000, the Hisbah vigilante group was set up in Zamfara and Kano states in northern Nigeria amongst claims that the federal police failed to effect Sharia. When complaints of extrajudicial killings escalated, the state governments set up monitoring committees.

By 2003, laws to regulate the Hisbah were passed. They became a highly structured organisation, operating in uniforms and marked vehicles, and even broadcasting a weekly radio programme. Again, official regulation did not prevent abuses. While the Hisbah enjoy state support, they have clashed with the federal police. This peaked with a federal ban in 2006, but the group continued to operate and spread to other northern states.

Groups in the Niger Delta

The Niger Delta is rich in oil, yet local communities are excluded from the benefits of this resource. This has been the driving force behind the emergence of various ethnic vigilante groups there.

For example, the Egbesu Boys formed in the early 1990s as a response to oil exploitation on Ijaw land. A clash between the Okrika and Eleme communities over land ownership where the Port Harcourt refinery is situated produced the Okrika Bush Boys. Both groups have allegedly gained support from politicians.

Port Harcourt has also seen violent clashes between the Ijaw groups Niger Delta People’s Volunteer Force and Niger Delta Vigilante, with the state government supporting the latter. This official alliance precipitated the 2004 Nigerian oil crisis.

Federal attempts to ban and disarm various Niger Delta groups have been unsuccessful.

Vigilante Group of Nigeria

The countrywide Vigilante Group of Nigeria originated in Benue and registered as an NGO in 1999. The group is highly structured and collaborates with the police and military. Like the Civilian Joint Task Force, it has also played a role in combating Boko Haram.

With an understanding of the local communities in which they work, the Vigilante Group of Nigeria has been very successful. Recently, the House of Representatives passed a bill authorising the group. However, its members have not been exempt from committing abuses.

This is not an exhaustive list. Vigilantes cooperate with the police and military amidst farmer-pastoralist conflicts in Plateau state. In Kano, aside from the Hisbah, operates several vigilante groups registered with and funded by the state. In October, the Nasarawa Commissioner of Police announced a partnership with local hunters and vigilantes.

Regulation and bans

Although official regulation has not completely eradicated abuses, it appears more fruitful than bans. Moreover, the effectiveness of vigilantism in combating crime cannot be contested. With enhanced training and accountability mechanisms these groups could provide an important component of community policing.

Indeed, nongovernmental organisations CLEEN and J4A have successfully trained vigilantes and improved their relations with police. Conversely, it has been argued that improvement of official law enforcement should be prioritised, which would remove the need for vigilantism.

But for now, these groups are here to stay.

 

Leighann Spencer, PhD Candidate in Criminology, Charles Sturt University

This article was originally published on The Conversation. Read the original article.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, said the Federal Government has signed financial agreement for the execution of Lagos-Abidjan highway.

Mr Olusegun Ogunkayode, a Senior Information Officer in the ministry disclosed this in a statement in Abuja. The statement quoted Fashola as making the disclosure at the nineth Steering Committee and Experts Meeting of the Lagos-Abidjan Corridor Highway Development Programme. 

He said the signing of the financial agreement was a demonstration of the Federal Government commitment to the realisation of the project. The minister said that road development was crucial to the economic growth of any nation, adding that the meeting was important considering the need for West African countries to join the league of developed nations. 

According to him, West African countries must emulate South American and Asia countries, who have used road development to drive their economies.

Fashola said that the Lagos-Abidjan corridor would propel rapid integration of the region, boost commercial activities, improve social development, create employment windows and reduce social vices among the member states.

 

NAN

Russia has signed a deal to build two nuclear power plants in Nigeria, as Africa's largest economy seeks to end its energy crisis.

Russian state-owned company Rosatom will build one in the south, the other in the centre, sources at the Nigeria Atomic Energy Commission told the BBC. The deal's exact worth is unknown, although some reports suggest it is likely in the region of $20bn (£15bn).

It is one of a number that Rosatom has been eyeing on the continent. The company is also involved in discussions in Ghana and South Africa. An initial agreement with the latter to build a plant was ruled unlawful in a South African court earlier this year.

The deal in Nigeria was reached after a long period of negotiation, with the two countries signing their first intergovernmental nuclear co-operation agreement in 2009. Nigeria hopes the plants, which will initially be operated by Rosatom before they are handed over, will help deal with the country's energy deficit.

According to World Bank figures , more than 40% of the country was without mains electricity in 2014. Nigeria is one of Africa's largest oil producers, but much of its oil wealth has been squandered over the years.

Corruption at all levels has left the country out of pocket , and producing a fraction of the energy its 180 million citizens need.

Construction of the new power plants is expected to begin in the next two years.

 

- BBC

In Nigeria, commercial aircraft fly fewer times than the recommended hours due to the infrastructure deficit. This results in huge revenue losses for airlines.

When airline operators describe Nigeria's air operating environment as harsh, they are actually referring to the lack of and obsolete essential facilities, double taxation, scarcity and high cost of aviation fuel as well as the dearth of indigenous personnel, especially in the technical department of the industry.

Airfield Lighting

One of the major limitations to the optimum utilisation of commercial aircraft in Nigeria is the lack of airfield lighting or runway lighting. These are lights that guide the aircraft to landing and take-off on the runway. Unfortunately only five airports out of 22 airports being managed by the Federal Airports Authority of Nigeria (FAAN) and six airports built by the state government have airfield lights that are being utilised currently. These airports include the Lagos, Port Harcourt, Kano, Kaduna and Abuja airports. Some other airports have the equipment but they are either redundant, in a state of disrepair or are waiting to be connected.

Lack of functional airfield lighting is a major setback for Nigerian airlines because they cut off about four operational hours from the daily flights of an airline designated for schedule operation. Industry experts who spoke to THISDAY said they are shocked that despite the importance of this equipment for safe airline operation, government has not been able to install it at all the airports and most of those installed in the past are in disrepair.

Revenues Losses

Industry experts are of the view that installation of airfield lighting at all the nation's airports will boost the revenue of domestic airlines to the tune of about N40 billion annually. This is the estimated amount of revenue that the airlines lose because they do not operate after 6:00 pm in more than 18 airports in the country owing to the lack of critical landing facility.

If the equipment is available, airlines would be able to operate extra four hours every day, from 6: PM to 10: PM to many of the nation's airports. Also, it will help the airlines to fully utilise their aircraft, which has stipulated minimum time it must be flown by their manufacturers.

Former Managing Director of one of the major domestic carriers told THISDAY in an interview that Nigerian airlines lose huge resources because they do not operate to many airports in the night.

"But you have to look at it in terms of potential additional revenue for operating for longer periods, perhaps into the night. Again you can also look at it in terms of underutilisation of the aircraft because they are not used for longer periods during the day. So at the end of the day you may estimate that what airlines lose should be in the region of 40 billion naira in a year. But this depends on how many of such airports that you think you can access," the source said.

The advantage of having such critical equipment is that it would help not only the airlines but passengers. Presently when technical or other problems occur in the daily operation of airlines that lead to delays, some flights that are delay beyond 6:00 PM may be cancelled if the destined airports do not have airfield lighting.

So the installation of the equipment will enable airlines to fly to Ibadan, Akure, Enugu, Owerri, Calabar, Yola and other airports where currently there is no airfield lighting after 6:00 pm.

It will also help safety of airline operations because during emergency in the night a troubled aircraft can land at the nearest airport, instead of looking for the one that has airfield lighting, which may be several kilometers away.

Aircraft Utilisation

Ideally a Boeing, B737, which is the popular operating aircraft in Nigeria flies for at least 18 hours a day and some fly for about 22 hours a day, but in Nigeria such aircraft fly for between 10 t0 12 hours. By 6:00 pm most airlines begin to shut down because their aircraft can no more fly to many of the airports. If majority of the airports have airfield lighting, many of these airlines could operate to 10: 00 pm and such airports that are located in the cities like the ones in Benin, Asaba, Enugu, Owerri, Uyo, Calabar, Ibadan and Akure could have been operating deep into the night.

But by 5:00 pm airlines cancel flights which they could not operate before 6:00 pm and when they cancel flights they lose revenue and a bit of their goodwill.

Disrepair

A senior official of FAAN from operations department told THISDAY on Monday that some of the runway lights are under repair; some are not connected while some airports are yet to have the installation of such lights on their runway. He said that in some airports where the runway light is functioning it is underutlised, which some active airports do not have the functional equipment.

"In some of the airports where we have airfield lighting they are under utilised because flights do not land there in the night. We have it in Maiduguri, we have it Sokoto, we have it in Katsina, we have it in Yola but they are not used because flights don't come there in the night. Kaduna airport has night landing facilities. Ilorin airport also has night landing facilities although they are not effectively used but if there is diversion or emergency they will be put on because Ilorin is alternative airport to Lagos.

"Recently Airline Operators of Nigeria (AON) met with the Minister of State, Aviation, Senator Hadi Sirika and he said that work has started at the Enugu airport runway, as the contractor has been called back to site; that when work on the runway is completed the light will be installed. In Owerri, the lighting facilities were vandalised and FAAN is reinstalling the equipment," the FAAN official said.

Flight Cancellations

Passengers have suffered tremendously due to flight cancellations occasioned by absence of runway light in some airports. Few years ago Arik Air had to make air return after arriving at Uyo airspace because the air traffic control which approved the flight's take off from Abuja said it would no more guarantee the flight safety on landing because it was getting dark and there was no airfield lighting; even when the aircraft, which was a New Generation equipment was installed to land under a twilight.

The flight took the passengers back to the airport in Abuja. Disappointed and enraged the passengers protested. They couldn't get to their destination, they had been inconvenienced tremendously and the airline has lost revenues, fight time and fuel. Also earlier this year, Air Peace boarded passengers from Abuja to Enugu and communicated with the air traffic control and airport management at the Akanu Ibiam International Airport, Enugu and got the initial approval for the flight to proceed to Enugu but before takeoff, message came from Enugu that the airport would be closed by 6:00 pm; unless the airline would pay a whooping amount of money, which it considered outrageous. The airline had to abort that flight but the passengers who had already boarded, led by a former Senate President refused to de-board the flight. The aircraft which was already scheduled for another flight on return from Enugu could not operate the next flight.

Role of NCAA

Some industry experts say that as the regulator of the aviation industry, the Nigerian Civil Aviation Authority as part of safety measures could insist that without airfield lighting in an airport such airport should be closed. They noted that the idea of not having airfield lighting in major and secondary airports in the country started when the Ministry of Aviation started awarding runway rehabilitation contracts differently from the installation of runway lights and noted that ideally the two contracts were usually awarded together.

"NCAA can insist that it will not approve any airport without runway light to take in flights. This should be for safety measure so that in the time of emergency an aircraft can land anywhere. For example, the Asaba airport should not have been opened without airfield lighting. The state government decided to build an airport; he should have been given a minimum standard which would include well equipped runway and Category 3 Instrument Landing System (ILS).

"So NCAA can insist that all the airports built by the state governments must not be allowed to operate without runway light; this will ensure that as you are building the airports you are installing runway lights on the runway. We need to be strict with these safety critical facilities. Today airlines are losing so much money because this critical equipment is not in these airports," one industry observer told THISDAY.

Landing Instrument

The Chairman of Airline Operators of Nigeria (AON) Captain Nogie Meggison said similar challenges to airline operation include poor navigational and landing aids (Instrument Landing System and others) that limits operations to daylight operation for most airports (Nigerian airlines fly an average of only five hours as against the average of 10 hours worldwide per airplane); high cost and epileptic supply of Jet A1; Obsolete infrastructure that hampers the ease of doing business; and lack of consultations with airlines before introduction of new charges and policies among others, "which throws off the feasibility studies of airlines out the window."

Public, Private Partnership

Industry observers are suggesting that the federal government should take its public, private partnership (PPP) seriously so that it would divest financial commitment on landside infrastructure by ceding airport terminal and associated facilities development and management to the private sector, while it concentrates in providing critical equipment on the airside, which are very crucial for the landing and take-off of flights. For this to happen, they suggested that government must have a defined policy on PPP, accompanied by legal and administrative framework that will guide investors in investing in airport infrastructure.

The Director-General of NCAA, Captain Muhtar Usman, told THISDAY that in concession, government would not give out the airside for safety and security reasons; so it would be the sole responsibility of government to provide such critical facilities as landing aids, radar and communication equipment in addition to providing perimeter and security fence at the airports.

Many travellers judge the beauty of airports by visible facilities like the terminal, the car park and the landscape; what keeps aircraft safe on landing and take-off include such critical infrastructure as airfield lighting, but over the years, government has reneged in proving this important equipment for all the airport runways in the country.

 

- This Day

THE Nigerian Government has taken steps to take over bank accounts without Bank Verification Number (BVN) as a Federal High Court sitting in Abuja has frozen all such accounts by stopping all outward payments, operations or transactions.

The court order may affect over 15 million bank accounts with deposits running into billions of naira as, according to the Nigeria Inter Bank Settlement System Plc (NIBSS), the organisation saddled with registering bank customers for BVN, out of the 45.85million bank accounts in the country, only 30,511,506 had been issued with BVN numbers as of October 8, 2017.

The Attorney-General of the Federation, Mr Abubakar Malami (SAN), had instituted an application seeking for an interim order directing all commercial banks in the country to disclose all individual and corporate accounts in their custody not covered by BVN.

The court, presided over by Justice Nnamdi O. Dimgba, gave the interim order in Suit no: FHC/ABJ/CS/911/2017 to all money deposit banks to disclose all bank accounts that are not linked with a BVN, declare the account numbers of such acounts, the branch in which the accounts are domiciled as well as the outstanding balances and advertise same in a widely circulated newspaper within seven days while giving owners of the account 14 days to identify themselves, failing which the funds in such accounts would be forfeited to the Federal Government.

The court, in an ex parte motion, said it gave the order because running a bank account without a BVN is “contrary to Section 3 of the Money laundering Act 2011 and Central Bank of Nigeria (CBN) guidelines.”

The government has been concerned that its move to unveil those hiding stolen funds in the banks was being frustrated by bank officials colluding with them by allowing them to run accounts without BVN.

Recently, the Acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu, raised the alarm that some banks were helping corrupt government officials to operate secret accounts without BVN.

While delivering a lecture at a workshop organised by the Chartered Institute of Bankers of Nigeria in Lagos, on September 26, 2017, he said some bank officials were in the habit of “opening accounts for government officials even after the introduction of the Treasury Single Account, thereby allowing government funds to be diverted.”

According to him, “There are several bank accounts that are not linked to BVN and are still active.”

Similarly, the CBN had last week, in a memo signed by Mr Dipo Fatokun, Director Banking and Payment System, directed all banks to properly capture customers’ BVN data and ensure that a customer’s names on the BVN database are the same in all of his/her accounts, across all banks.

In the memo entitled the ‘‘Regulatory Framework for BVN and Watch-list Operations in Nigeria,’ the CBN said this became necessary to forestall fraudulent activities of bank customers.

The framework stated that “change of customer records shall be allowed as follows: Name change with supporting documents, subject to a maximum of twice a year; change of date of birth shall be allowed only once with supporting documents; minor correction due to errors supported with valid means of identification.”

According to the CBN framework, a watch-listed individual shall not be allowed to enter into new relationship with any bank.

The court also ordered that the banks “should disclose any investments made with funds from these accounts without BVN in any products including fixed/term deposits and their liquidation and interest incurred, bank acceptances, commercial papers and other relevant information related to the transactions made on the accounts.”

The CBN, had in conjunction with the Bankers Committee, embarked upon the deployment of a centralised BVN system and launched the project in February 2014 as part of the overall strategy to ensure effectiveness of the Know Your Customer (KYC) principles, and the promotion of a safe, reliable and efficient payments system. The BVN gives a unique identity across the banking Industry to each customer of Nigerian banks.

 

Credit: Nigerian Tribune

Uuumm .. that’s a toughie. But we really should know so we can drop it into conversation in a casually cool way – I always find listing the 54 African countries by GDP in 2017 makes me pretty popular – and I want to give you too the chance to gain a reputation for exciting repartee.

What do we know ? Based on the dodgy exchange rates being used in Egypt until November 2016 and in Nigeria/Ethiopia/Angola etc all year – Nigeria was the largest economy in Africa in 2016, followed by Egypt and then SA. All of Africa had a similar GDP to India, but was not as big as California. That goes a long way to explaining relative news coverage.

Source: IMF with a little help from Renaissance Capital

What about 2017 ? “We have a problem here Captain” as Scottie would have said because we just worked out that the IMF is using an average exchange rate for Nigeria of 304/$ for its GDP estimates.

Now I like the IMF resident a lot – but I think this is hard to justify. The I and E fx window rate has averaged 368/$ from 25 April to 11 October. What about Jan-Apr? Do we use the parallel market rate that hit as weak as 520/$ in early 2017, or the Naira rate quoted on Bloomberg which was 313/$ ?

In the graph below, we show both Nigeria using the IMF figure, and Nigeria using a 367/$ average. If you believe the IMF, Nigeria was number 1. If you think 367/$ is more realistic, it was number 2 and SA swept past both Egypt* and Nigeria to take number 1 slot again. Humble South Africans can once again stand tall, arm in arm with President Zuma, a man who has helped ensure per capita GDP in 2017 is not above the lofty heights it achieved in 2007. To be fair to Zuma, Brexit has helped push UK per capita GDP back to below 2006 levels. This must be a deliberate part of the UK charm offensive to rebuild links to the old Empire so that will help make Britain great again. *at least Nigeria has an IMF implied exchange rate, Egypt doesn’t let the IMF publish one, so you are relying on us for that figure

Meanwhile Ethiopia cleverly timed its devaluation until just after the IMF publication so it can lay claim to 8th place .. when the deval probably means it is 9th behind Kenya.

Source: IMF with a lot more interference from RenCap in this one

What about GDP per capita ? Nigeria, Kenya, Ghana, Ivory Coast are all in roughly the same place – just ahead of Bangladesh – with wealth levels double that of Rwanda or Uganda. Of these, Kenya, Ghana and southern Nigeria are best placed to industrialize in the same way that southern Bangladesh has.

I tested this last chart on twitter and the instant response is … “not Equatorial Guinea”. Fair enough, the average per capita GDP may bear no relation at all to GDP per person once the boss has nabbed all the oil wealth. But the point is, India is mid-way between countries like Egypt, Nigeria, Ghana and Kenya, and positive themes should be found in a few of them.

Re the Kenyan elections – what we heard at our East Africa conference is that President Kenyatta would probably win a re-run, especially if Odinga boycotted the second round.

Source: IMF, Renaissance Capital, World Bank (for Somalia population)

CONCLUSION: GDP per capita has probably bottomed now in Egypt, Nigeria and a fair few others. The next move should be up again as we enter 2018. Nigeria may have lost out to SA in terms of being the largest economy in Africa in 2017 (let’s see what happens to the ZAR by year-end) but this SA resurgence won’t last for too long. We continue to see Morocco, Egypt, Tunisia, Ghana and Kenya as among those best placed to industrialize in the coming years.

 

This comment piece was written by Charles Robertson, Global Chief Economist, Renaissance Capital and was originally published on  CNBC Africa Read the original article..

The completion of Dangote Refinery in 2019 will mark another milestone in the Nigerian oil and gas industry as the $11 billion refinery hold the prospect of stopping of refined petroleum products by Nigeria.

The Dangote Refinery will produce 650,000 barrels per day of refined petroleum products to meet all the country’s refined petroleum products needs as well as export to other countries. Nigeria spent N2.59 trillion to import refined petroleum products in 2016, according to the Nigeria Bureau of Statistics. founder of Dangote Group of Companies and the richest man in Africa.

Dangote, the promoter, said that the refinery projects were primarily meant to diversify the resource base of Nigeria.

“This is the biggest industrial site anywhere in the world from the fertiliser, petrochemical and refinery plants. The Dangote Refinery will produce 650,000 barrels per day of refined petroleum products to meet all the country’s refined petroleum products needs as well as export to other countries.

Nigeria spent N2.59 trillion to import refined petroleum products in 2016, according to the Nigeria Bureau of Statistics. The refinery is being built by Alhaji Aliko Dangote, founder of Dangote Group of Companies and the richest man in Africa. Dangote, the promoter, said that the refinery projects were primarily meant to diversify the resource base of Nigeria.

“This is the biggest industrial site anywhere in the world from the fertiliser, petrochemical and refinery plants. “Our refinery will be 1.5 times the capacity of all the existing four refineries in the country even if they are working at 100 per cent capacity. “This is the single largest refinery in the world. The petrochemical that we have is 13 times bigger than the Eleme Petrochemical built by government,” Dangote said.

Vice President Yemi Osinbajo described the project as an incredible industrial undertaking, the largest and most ambitious on the continent. The Dangote Refinery is an integrated petro chemical complx. Apart from refining crude oil to petroleum products, it will also have petrochemical and fertiliser plants. Mansur Ahmed, an Executive Director in Dangote Group, said that the petrochemical plant would process 1.3 million metric tonnes per annum of petrochemical products.

The fertiliser plant will produce 2.8 million metric tonnes of assorted fertiliser, while the gas plant will produce three million cubic metres of gas per annum. The refinery will also have the largest sub-sea pipeline infrastructure in the world with capacity to handle three billion cubic metres of oil annually.

The project is located in Lekki Free Trade Zone on a vast land mass of 2,200 hectares, an area eight times bigger than the entire Victoria Island in Lagos. According to Mansur, the first phase of the plant will be ready by the end of 2017, the second phase by the end of 2018, while the third and the commencement of the refinery will be in 2019. It is regrettable that Nigeria with large crude oil reserves and being the largest crude oil producer and exporter in Africa and eighth in the world, still imports more than 80 per cent of its petroleum products needs.

The country often experienced fuel shortages due to the poor state of its refineries. All the three refineries, operated by NNPC, are producing far below their installed capacity. The Port Harcourt Refinery has capacity to produce 10.500 million mt/y (metric tonnes per year) of refined products, but it is producing at less than 20 per cent of this capacity. The Kaduna Refinery, built in 1980, has capacity to produce 5.5 million mt/y (110,000 b/d), while Warri Refinery, built in 1978, has capacity to produce 6.2 million mt/y (125,000b/d) of refined products.

It is, therefore, good news that Nigeria will now host one of the largest refineries in the world after the Jamnagar Refinery in Gujarat, India which is the, largest refinery in the world and produces 1,240,000 barrels per day.

The Dangote Refinery will be the biggest in Africa taking over from the South Africa’s Sapref Refinery producing 180,000 barrels per day and Cairo’s Mostorod Refinery with a capacity of 142,000 barrels per day.

Dangote has already provided $7 billion in equity out the $14 billion estimated total cost of the project. Some Nigerian banks provided a syndicated loan of $3.3 billion for the project. The African Export-Import Bank (Afreximbank) has also promised to assist the Dangote Group to access foreign exchange and funding for the project.

Dr Okey Oramah, its President, gave the assurance during a tour of the project with the bank’s board members in 2016. Oramah said that the board members decided to visit Dangote group to assess the project for possible financial assistance. He said that Dangote Group was making tremendous impact across the continent which included Tanzania, The Gambia, Zambia, Niger and other parts of Africa.

“We are supporting them in what they are doing in those countries, so we are equally supporting them in this ongoing project, so it is important for the Board of Directors of Afreximbank to pay a courtesy visit to the site. “It is important to come and see firsthand the project that is ongoing because we are also planning to support them to ensure the project is delivered on scheduled. “We are looking at providing all necessary support both financial and otherwise to ensure that the project is completed within the time frame. “We are also looking at providing support widow for Dangote group that will be used to fund its projects to completion.
“The impacts of the projects are not going to be felt in Nigeria alone but across Africa, especially West African. So for us it’s a strategic partnership we are building. “If we help them to impact lives across the continent, they will equally help in delivering on our mandate to meet the objective of Afreximbank,” Oramah said.

Some other private investors are still visiting the project site to evaluate the facilities with the prospect of investing in the project. The likely benefits of the Dangote Refinery to Nigeria are diverse. Dangote said that the project would save the country about $7.5 billion annually in foreign exchange being used to import petroleum products and also generate $5 billion foreign exchange earnings annually.

The plant, according to him, will generate over 100,000 employment opportunities and revive over 11,000 filling stations that had been shut due to shortage of products. Dangote said that the refinery would crash the price of petrol products in Nigeria as the products would be refined locally and save some costs incurred in importation.

He urged the Federal Government to sincerely pursue the diversification programme, stressing that projects like the refinery were needed to wean Nigeria from heavy reliance on crude oil export. According to him, the best way to diversify the economy is through agriculture and “our fertiliser plant is in line with that goal”.

“By the time we finish out gas pipeline, it can generate about 12,000 mw and we can export gas to other African countries. “We would have the capacity to store four billion litres of products and can load 2,680 trucks per day”.

Dangote said the target was that in five years time, half of Nigeria’s crude oil production would be refined and exported rather than exporting crude that were creating jobs elsewhere. The Lagos State Governor, Akinwunmi Ambode, said the project would create some 235,000 jobs both directly and indirectly.

He said the project would boost the economy of Lagos and entire Nigeria through its multiplier effects. Mr Chinedu Okoronkwo, the National President of Independent Petroleum Marketers of Nigeria (IPMAN), described Dangote Refinery as a welcome development. He said that the refinery would ease operations of marketers and help to reduce their costs, stressing that the association had long been calling for total deregulation of the sector.

Okoronkwo said that the new refinery would also boost Industrialisation in the country. Mr Abiodun Adesanya, the President of Nigerian Association of Petroleum Explorationists, said the refinery would eliminate problems associated with fuel importation, create competition and generate employment opportunities.

He said that the success of Dangote Refinery was an indication that the Nigerian private sector could make commercial success of refineries.

 

Source: Vanguard - NG

The Transaqua Project is a big, ambitious initiative to replenish the waters of Lake Chad, a fresh water inland lake in Central Africa. It involves 12 countries working together to build a 2 400 km canal to move about 100 billion cubic metres of water from the River Congo to the lake every year. The Lake Chad basin supports more than 20 million people.

If accomplished, the Transaqua Project will change the face of Africa – for better or for worse. But like other regional or transnational projects on the continent, it may be delayed or abandoned if national politics are ignored. The replenishment project, mooted over 30 years ago, involves building several dams along the length of the canal.

The dams will potentially generate 15 to 25 thousand million KWh of hydroelectricity and irrigate 50 000 to 70 000 km2 of land in the Sahel zone. This will stimulate development in agriculture, industry, transport and electricity for up to 12 African countries.

But the project is not immune from criticism. Some argue that claims that the lake is shrinking are exaggerated. Others argue that the plan poses serious environmental risks.

It is difficult to determine whether the canal will address why the lake is drying up. And who benefits, and what the benefits will be to each country still remain unknown. It’s also possible that disagreement within and between countries could scuttle the project. A memorandum of understanding for a feasibility study and the construction of the project was signed in December 2016 by the Lake Chad Basin Commission and PowerChina, the Chinese state engineering and construction firm.

The commission represents the interests of the 12 countries involved in the project and is guided by The Water Charter. This is the main instrument that outlines the mechanisms for dispute settlement.

The Charter, though, focuses on dealing with conflicts between countries rather than within them. It is therefore worrying that the most important country in the project, Nigeria, faces internal challenges that may affect the project.

The long term nature of the project demands that the participating states are relatively stable in political and economic terms. Nigeria, Cameroon and Libya account for 78% of member contributions to the commission. Libya is currently seen as a failed state, so the focus is on Nigeria to offer political direction for the project.

Nigeria mirrors the challenges

Nigeria plays a powerful role as a regional leader and a major financial member of the Lake Chad Basin. Nigeria also pays 40% of the commission’s membership contributions of €6,275,906.90 (2013 budget).

Three political issues in Nigeria could affect the project.

The first is that President Muhammadu Buhari has had an important influence on its progress. Since he assumed office in May 2015, four milestones have been reached:

  • Nigeria ratified the Water Charter, five years after it was signed.

  • Nigeria signed the Charter for the Lake Chad Basin into law.

  • PowerChina and the Commission signed the memorandum of understanding.

  • PowerChina and Italian firm Bonfica Spa signed a deal to conduct the feasibility study and build the Transaqua project.

If Buhari’s influence wanes, the project could lose momentum.

The second political issue is that Nigerians will go to the polls again in 2019. Buhari’s health challenges, combined with the country’s economic and political challenges, have reduced his approval ratings from 67% when he was elected to 44% in 2016.

The re-organisation and re-emergence of the opposition People’s Democratic Party gives voters a strong alternative, especially in parts of the country without an alternative political party that can compete with their political structure and finances.

That party, which was in power for 16 years, might not be able to meet the financial or security commitments to the water project because of their past history in government.

The third factor relates to institutional politics. The executive secretary of the Lake Chad Basin Commission, Abdullahi Sanusi Imran, has stated that the Transaqua idea “is much more appropriate for the situation of the Lake Chad than all other alternative solutions.” But an informal conversation with a senior Nigerian government official in the course of research fieldwork expressed concern about the choice of the Transaqua idea over other alternatives.

These alternatives were presented in the National Audit Report of Nigeria as part of the Joint Environmental Audit report on the drying up of Lake Chad: a report prepared by the Supreme Audit Institutions of each of the states for the African Organization of Supreme Audit Institutions. Dissenting positions can create unnecessary friction between government agencies and make it difficult to coordinate actions.

So what should come next?

Amendments to the Water Charter to provide for addressing intra-national political challenges are vital; a task for the African Organisation of Supreme Audit Institutions, the Lake Chad Basin Commission and the Supreme Audit Institutions in their respective national domains. States could be required to outline how they might solve potential political challenges in their domains. Expectations and responsibilities should be built into the Charter beyond negotiations and gentleman’s agreements.

The Lake Chad Basin Commission, political office holders and government institutions should work together to make the project’s objectives a key election issue in subsequent elections. Intra-national and national politics cannot be ignored. But the project should also harness local knowledge and experience, and recognise local conditions so that it’s accepted by everyone.

 

Adegboyega Adeniran, PhD Candidate, Fenner School of Environment and Society, Australian National University and Katherine Daniell, Senior Lecturer, Fenner School of Environment and Society, Australian National University

This article was originally published on The Conversation. Read the original article.

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