CED Magazine April 2017 edition

APRIL 2017

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PROFESSIONAL INTERVIEW GOOD PLANNING APPROACH Tpl. Adekunle Salami, FNITP Chairman, Lagos State Chapter of NITP speaks on the institute and the contributions of paste leaders and the place of Lagos State in good planning practice in Nigeria

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LAGOS: RACING AGAINST TIME th

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As one of the fastest growing cities in the world, Lagos, due to urbanisation issues is racing against time; from waste management to transportation and more

Nigeria’ No. 1 Development Professional Journal

ConstructSkills

Conversation 2.7

The built Environment Professionals’ Leadership Series on Sustainable Infrastructure

Unlocking the Potentials of Engineering for Economic Growth Engr. Otis Oliver Anyaeji, FNSE, FAEng, President Nigerian Society of Engineers has been in the saddle and leading the largest professional body for over a year.

His activities since assumption of office has brought to the fore the importance of engineering in economic development and our national lives.

Engr. Otis Oliver Anyaeji, FNSE, FAEng President, Nigerian Society of Engineers

CED Magazine through the ConstructSkills Conversation platform is hosting Engr. Otis Anyaeji to a breakfast conversation where he is expected to unravel the potentilas of engineering to economic growth.

The event will also see Engr. Otis Anyaeji walk away with the prestigious CED Magazine’s Professional Man of the Year Award.

Date: Thursday June 29, 2017 Venue: NAF Center, Central Business District, Abuja Time: 9am

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For Details and Seat Reservation Contact: Festus Oseji - 081 370 9831; 0805 976 4839 E-mail:cedmagazine@gmail.com; info@cedmagazineng.com www.cedmagazineng.com

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Century 21 www.cedmagazineng.com Systems Comm. Ltd.

ConstructSkills Conversation 1.7 Photo

LAGOS: RACING AGAINST TIME As one of the fastest growing cities in the world, Lagos, due to urbanisation issues is racing against time; from waste management to transportation and more

16 INNOVATION

BREAKING NEW GROUNDS Nigerian Building and Road Research Institute (NBRRI) launches nationwide engineering subgrade s oils atlas of Nigeria.

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PROFESSIONAL INTERVIEW GOOD PLANNING APPROACH The Chairman Nigerian Institute of Town Planners (NITP) Lagos State Chapter, Tpl. Adekunle Salami, FNITP, speaks on the need for planning for even development.

SPECIAL INTERVIEW

STRONG IN PRACTICE Hon. Commissioner, Lagos State Ministry of Physical Planning and Urban Development, Tpl. Wasiu Abiola Anifowoshe, FNITP, speaks on the need for proper planning of all the cities in the country, taking a cue from what Lagos state in currently doing.

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ConstructSkills Conversation 0.7 Photo

Engr. Alade Olumuyiwa, FNSE, FAEng, past president Nigerian Society of Engineers turned 70 recently and CED Magazine used its newly created platform “ ConstructSkills Conversation to host and celebrate his achievements and contributions to the engineering profession and practice. The event had in attendance professionals from the built environment, businessmen, investors and the likes who not only came to celebrate the Icon of engineering but to also learn from him on how he gas succeeded. He spoke on the theme: Unlocking the potentials of engineering for economic growth.

STAMP OF APPROVAL MRS Oil inaugurates Africa's largest oil jetty, a sign of approval for Nigeria’s strong and resilient economy

24 SENEGAL AT 57 Oil investment boom fuels growth hopes

DEVELOPMENT Festus Njuwe

18 NECESSARY ADJUSTMENT? Nigeria needs adjustment over oil price, says IMF

23 THE OPL OF SCANDAL Everything we know about the Malabu oil scandal Sp

16 INNOVATION NIGERIA Nigeria's Future Depends On Technology And Innovation Deployment

25 THE COMING GAINS Oil set for longest gain since 2012 as Saudis seen extending cut 41 SUPER HIGHWAY These are exciting times, and the ‘digital transformation’ of our business undoubtedly has the potential to bring significant benefits, but it also carries risk.

45 WORKING TOGETHER How can Africans trade more with other Africans?

8 FRIENDLY AFRICA World Bank plots $60bn war chest for Africa

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ConstructSkills Conversation 1.7 Photo

Engr. Alade Olumuyiwa, FNSE, FAEng, past president Nigerian Society of Engineers turned 70 recently and CED Magazine used its newly created platform “ ConstructSkills Conversation to host and celebrate his achievements and contributions to the engineering profession and practice. The event had in attendance professionals from the built environment, businessmen, investors and the likes who not only came to celebrate the Icon of engineering but to also learn from him on how he gas succeeded. He spoke on the theme: Unlocking the potentials of engineering for economic growth.

What Makes Lagos a Model City

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The turnaround in Lagos can be traced to 1999, when Nigeria returned to democracy and the city began holding regular elections.

For the first time since independence, Lagos was able to reelect its own leaders, or turn them out of office. And while national elections became a mud fight between elites to control the state’s enormous oil wealth, local contests forced candidates to show pragmatism and competence.

igeria is arguably the worst run of the world’s seven most populated countries. Despite earning hundreds of billions of dollars in oil revenue over the past decade, it is expected by 2015, by some calculations, to have the second-most destitute people in the world after India. But its largest city, Lagos, which until recently was known as one of the world’s most difficult cities to govern, seems to have turned a corner.

Even though it remains a slum-ridden and largely impoverished metropolis, with an exploding population estimated at 21 million (of Nigeria’s 170 million people), it has seen steady improvement in its governance for over a decade. The government has enhanced public transportation, cleaned up streets, upgraded the business environment and bettered the lives of its inhabitants.

So Nigeria, of all places, may be pointing the way to a strategy by which fragile states might begin to succeed: Devolve more power to cities from their corrupt and overcentralized national governments. At least in democracies, the cities have promise because their elected politicians face pressure to deliver specific services to their constituents. In the central governments, which are more remote, there is too much power and wealth to be grabbed by dysfunctional politicians and their cronies, and too little direct accountability.

The emergence of fragile states is one of the world’s most pressing problems. Such states, which include Nigeria, Iraq and Yemen, contain a rising number of the world’s poor (half of the world’s people who live on less than $1.25 a day will be in fragile states by 2015, according to the Organization for Economic Cooperation and Development) and contribute disproportionately to the world’s instability and terrorism. They have become a major focus of international aid efforts, but it has proved very difficult to improve governance there.

The turnaround in Lagos can be traced to 1999, when Nigeria returned to democracy and the city began holding regular elections. For the first time since independence, Lagos was able to re-elect its own leaders, or turn them out of office. And while national elections became a mud fight between elites to control the state’s enormous oil wealth, local contests forced candidates to show pragmatism and competence.

Citizens in densely populated cities find it easier to organize themselves. And in an ethnically and religiously diverse metropolis like Lagos, politicians could not afford to pit ethnic and religious groups against one another, a problem that has long bedeviled Nigeria. Simple geography also helped the city administration. The powerful and wealthy classes are more likely to insist on better governance when their own neighborhoods are affected.

And unlike national politicians, local leaders know that the better they perform, the more money their city nets.

The better its roads, schools and business environment, the more likely companies will pay taxes, and individuals will buy goods and services, which also contribute to the tax base. At the national level, by contrast, the great majority of the central government’s income has little to do with government’s performance, since about 75 percent of the national budget comes from the $50 billion a year that Nigeria collects in oil revenue.

Can Lagos really save Nigeria? Alone, it’s unlikely — one factor is that the country’s population is expected to continue mushrooming to 400 million by mid-century — but Lagos can now be the model for transferring more authority to other cities, such as Ibadan, Kano and Benin City. And they, in turn, could help to shift the polarized national politics that produce the same cadre of unaccountable elites year after year.

For example, if local politicians were better able to raise and regulate local taxes, they would find themselves more accountable to the population. And they would presumably establish a more welcoming local environment for business to flourish, and perhaps start a nationwide chain reaction unleashing the country’s famous entrepreneurialism. If income levels rose, education and a rising middle class might follow. Greater affluence and aspiration, in turn, tend to act as a useful brake on population growth.

Elsewhere, other cities offer a similar lesson. In Medellín, Colombia, the city government outshone the national government in the late 1990s by setting up a network of publicly funded business support centers, investing strategically in transportation and security, and introducing its own program of cash grants to help the poor. Cities such as Chennai and Hyderabad in India have similarly outperformed India’s national government in promoting growth, educating children and reducing crime and poverty.

Can this model hold out hope for other fragile states? Countries such as the Democratic Republic of Congo, Pakistan and Kenya all suffer from weak and dysfunctional governments, but have cities that could be the basis for a similar model of development. Regular local elections could spur significant changes in Kinshasa, Karachi and Nairobi, respectively, if the cities were granted more autonomy and the tax base was broadened to make government more dependent on local citizens and companies.

Almost half of the developing world’s population now lives in cities, and rapid urbanization is expected to increase this proportion to two-thirds within a few decades, according to the United Nations Department of Economic and Social Affairs. The city is now the main driver of growth and stability across Africa, the Middle East and South Asia. And the example of Lagos shows that countries can begin to work better when their cities are well governed and thriving.

In other words, cities can help save countries.

By Seth D. Kaplan, a professorial lecturer in the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University, is the author of “Betrayed: Politics, Power and Prosperity.”

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HOSPITALITY

NEWS REPORT

MIKONO HOSTS EXPO 2017 Mikono Expo Group will Host the Dar Construction Trade Expo and the East Africa Smart Building Summit 2017 in Dar es Salaam,Tanzania!!

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anzanian based company Mikono Speakers under her sister company Mikono Expo Group, which operates in Tanzania, South Africa and other African nations, is hosting the Dar Construction Trade Expo 2017.

This esteemed event will take place along with the East Africa Smart Building Conference. More than 200 exhibitors from Africa and all over the world will participate and the conference is expected to attract more than 1000 Industry stake holders in Dar-es-Salaam, Tanzania at the Julius Nyerere International Convention Centre (JNICC), from 17th-18th August 2017.

The Guest of Honour will be Prof.

Makame Mbarawa- Minster of Transportation and Infrastructures in Tanzania who will be accompanied by other dignitaries who represent the building and construction industry in the country. The conference will attract both Gover nmental and nongovernmental stakeholders.

According to the C.E.O of Mikono Expo Group, Deogratius Kilawe "Tanzania is one of the fastest growing countries in the world; According to the World Bank, they predict Tanzania will be the 3rd or 4th Largest Economy in Africa if some amendments are done in different sectors like Tanzania Port Authority and some few areas and 6 | www.cedmagazineng.com April 2017

currently the construction industry is growing up very fast and contribute more than 13% of the GDP" He added that, "The Tanzania construction industry is USD 6billion ahead of its Neighbor, Kenya which is USD 2.8billion according to their national bureau statistic and Approximately 92% of all building materials and equipments are from abroad. This is great chance for foreign companies to explore the Tanzania Market and get good returns of their investments as it's a hot cake for now than anywhere else in east and central Africa."

The construction industry in Tanzania includes real estate, transport

C.E.O, Mikono Expo Group, Deogratius Kilawe

infrastructure, and other civil works including water supply. Construction contributed 13.6% to Tanzania's GDP during 2015, reaching almost USD6b.

In 2010 the sector accounted for only 7.8% of the country's GDP or USD1.6b. The growth rate of the Tanzanian construction sector was 4.3% in Q1 2016, compared to 23.2% in Q1 2015. According to the Tanzania National Bureau of Statistics (NBS), the slowing of the growth rate was due to reduced investments in construction activities. However, for the fiscal year 2016-2017 the government of Tanzania has budgeted TZS5.47t equivalent to 25.4% of the total budget, excluding public debt service, for infrastructure development projects.

Miss Alinda Henry, the Sales Manager for Mikono Speakers International commented that "In Recent years Tanzanian transportation sector rose by 55% in value from USD1.3b to USD2.1b, contributing 4.4% to the country's GDP. Main growth drivers include the increase in the number of passengers carried and freight handled through road transport. " The real estate industry in Tanzanian has the potential of generating USD 2 billion each year. This is more than 6% of the country's GDP. As you may be aware, this industry has the greatest multiplier effect on other economic sectors. It impacts on almost all industries. Besides, it employs professional and non-professional skills, that is, be it the educated or the non-educated labour force.

Real Estate in Tanzania has a housing deficit of 3 million units and is growing at the rate of about 200,000 units per annum.

The National Housing Corporation (NHC) is one of the main key players for real estate industry in the country and has about USD 400 million worth of ongoing projects in real estate. In my opinion, this will reach USD 800 million during the coming five years.

One of their key projects is Kawe satellite town project; they also have two similar projects in Arusha in north-

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MOVING AHEAD Four Points Hotel by Sheraton opens its doors in Nairobi

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our Points Hotel by Sheraton which was initially managed by Best Western Premier has finally opened its doors after the completion of the rebranding.

Kamcan Properties Limited which is the owner of the property is the first to be managed by the hotel franchise Marriot International in the country. Its sister property, Four Points by Sheraton Nairobi Airport owned by AirMarc Ltd

is set to open later this year.

Alex Kyriakidis, President and Managing Director, Middle East and A frica , Ma r rio tt In ter n a tio n a l confirmed the news and said that hotel is an important addition to the fast g rowing portfolio of Mar riott International which offers a perfect blend of style and good service.

"Four Points by Sheraton Nairobi, Hurlingham is a significant addition to

our fast growing portfolio in the region offering a perfect blend of stylish comfort and genuine service at an honest value," said Alex Kyriakidis.

The rebranded 96-room property is located in Hurligham, Nairobi and sits on half an acre piece of land with the rest of the land being reserved for a 100-car park, garden and drive way.

"By introducing a Four Points property in this region, we expect to attract travellers familiar with this popular global brand and everything it has to offer," said Vivek Mathur General Manager Four Points by Sheraton Nairobi Hurlingham.

Marriott International at this stage is also developing a 365-room JW Marriott in Nairobi which is projected to open in 2020.

This initiative will substantially enhance the brand's presence in the country.

Nairobi has recently seen an increase in the number of hotels while several developments are expected to come up later in the year. This is increasingly putting the capital city on the map even though it is the hub of East Africa.

Quantum Global's Mezzanine Fund invests countries in the sub-Saharan Africa region in the first phase focusing on Angola, Botswana, Mozambique, Uganda, Nigeria, Kenya and Ghana. " Q G PA w i l l e x p a n d i t s development capabilities to meet Africa's fast-growing demand for power.

"TomĂŠ and IPC's track record and the newly created platform for further growth were highly attractive to QG Africa Mezzanine LP. We look forward to contributing to close the infrastructure gap and support national growth plans with successful power assets in a number of African markets," said Milko Skoro According to a statement from Quantum Global, the rationale behind this investment, beyond generation of solid returns, is the infrastructure sector's substantial potential for job and

wealth creation and local supply chains that positively impacts national economies. Commercial infrastructure projects in sub-Saharan Africa currently show unparalleled potential and

Milko Skoro

QG Africa Mezzanine LP is a USD 250 million investment vehicle with attractive risk diversification across countries, sectors and underlying demand. resilience against the perceived risks associated with the African continent.

It is worthy to note that QG Africa Mezzanine LP is a USD 250 million investment vehicle with attractive risk diversification across countries, sectors and underlying demand. The fund will explore investment opportunities for early stage, expansion and exit including Greenfield and Brownfield investments. www.cedmagazineng.com April 2017 | 47

DEVELOPING STORY

TRADE & INVESTMENT

total trade), could the pan-African company be a panacea?

Charles Robertson, global chief economist and head of macro strategy at Renaissance Capital, an investment bank, seems to think so: '[The] idea about panAfrican corporations or banks driving trade integration makes sense," he says.

Besides, African banks are already well set up for the task.

Ecobank is the quintessential panAfrican bank - headquartered in Togo, it has operations in 36 African countries.

Another example is Nigeria's United Bank for Africa, which already operates in 18 African countries, but has plans to expand to another seven.

Building the supply chains Meanwhile, some retailers and manufacturers have moved from being regional champions to developing an African ambition.

Shoprite, the South African retailer has operations in at least 15 African countries, selling products manufactured in its home country across the continent.

In countries where the authorities have sought to buoy their domestic manufacturing capacity, Nigeria for instance, the retailer has adapted, adding locally manufactured products to the mix

President Uhuru Kenyata of Kenya

of goods on its shelves.

And in the construction sector, Nigeria's Dangote Cement, largely owned

by Africa's richest man, Aliko Dangote, is not only building plants across the continent, but has now begun to export cement from these plants to those countries where it only has import terminals. Nigeria has become a net

POWERING AFRICA Quantum Global invests in Power Assets across sub Saharan Africa

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uantum Global Africa Mezzanine LP, an investment fund managed by QG Investments Africa Management Ltd. (QGIAM), has announced the 46 | www.cedmagazineng.com April 2017

establishment of a Power Development Company, QG Power Africa (QGPA) for the development of power assets across sub-Saharan Africa. This

exporter of cement, courtesy of Dangote.

With plants in Nigeria, Cameroon, Ethiopia, Congo, Tanzania, Zambia, and South Africa, and import terminals in Sierra Leone and Ghana, Dangote Cement is proof of the potential of the pan-African manufacturer as a veritable channel for intra-African trade.

In some cases, firms have been forced by circumstances to export to other African countries.

The two companies licensed by Nigerian authorities to manufacture and distribute fertiliser, Notore Chemical Industries and Indoroma Eleme Petrochemicals, together produce twice the national requirement of 1.1m tonnes.

They export the excess.

This has proved a little troublesome, however. Raymond Agbi, group head of shared services at Notore lists some of the typical challenges as erratic customs regulations, transport and infrastructural bottlenecks and language differences.

Cur rency controls can also be problematic.

For intra-African trade to thrive, "regional organisations would need to streamline trade regulations," he says.

development is in partnership with Tomé International Ltd. (Tomé) and Independent Power Corporation PLC (IPC).

"The joint venture arrangement of QGPA is based on an exceptional match of capabilities and expertise of the involved parties to conceive and develop power projects across the subSaharan region," Milko Skoro, M a n a g i n g D i r e c t o r, H e a d o f Structuring Quantum Global said while welcoming this partnership and the launch of QGPA. What you need to know about the investment " QG Africa Mezzanine LP will support this joint venture as strategic investor; " Tomé will be responsible for project management and " IPC for the development of the power assets. " The joint venture has been set up to develop power plants across

western Tanzania. Arusha is a gateway to Tanzania's famous national parks that attract tourists from all over the world. At completion, these projects that are located in Burka and Usa River areas, will provide some 2 million square meters of properties that include, inter alia, trade centres, shopping malls and residential properties.

World Bank's estimate that Africa needs to spend about $93-billion annually until 2020 to bridge its infrastructure gap.

The Country has taken steps to address the infrastructure deficit and various projects are on course to ensure that transport and energy infrastructure is enhanced. The World Bank reports that financing has been approved for various projects. These include; Tanzania Strategic Cities Project-USD 175.50 million, Tanzania Intermodal and Rail Development Project-USD 300 million, Dar es Salaam Metropolitan Development Project-USD 330 million and the Backbone Transmission Investment Project-USD 468 million.

The World Bank (WB) recently approved USD225m loan to improve access to water supply and sanitation services in Dar es Salaam. The funding will also support the strengthening of capacities for integrated water resources planning and management in Tanzania. The loan will benefit up to 1.9m Tanzanian citizens, including 700,000 residents of the country's largest city, Dar es Salaam.

The African Development Bank (AfDB) has recently approved a USD 211 million loan for improvements on water and sanitation services to decrease health care costs associated with water-related illnesses in Arusha, northern region of Tanzania. The program's investment totals USD 235 millions, of which the Tanzanian Government is funding USD 24 millions. The program aims at Arusha since it is one of the largest and fastest growing cities in Tanzania in terms of population. At an average yearly rate of 7.4% in the last three years, Arusha's

population has grown from 416,442 in 2012 to 516,000 at the end of 2014 according to Arusha Urban Water Supply and Sewerage Authority (AUWSA) statistics.

The Government of Tanzania recently announced that it will implement a USD281million water project in Mtwara, Southeastern Tanzania in collaboration with the Chinese Government. The project, which will be financed through a soft loan from China, is set to start in the 2 0 1 6 - 2 0 1 7 f i s c a l y e a r. U p o n completion, the project will supply Mtwara with 120m liters of water per day from the Ruvuma river. Currently (2017), the region receives 60m liters per day.

On 19th June 2015, the Export-Import Bank of India (Exim) and the Ministry of Finance of Tanzania signed an agreement to extend additional line of credit (LOC) of USD 268 million to the Government of Tanzania, for financing the extension of Lake Victoria water pipeline to Tabora, Igunga, and Nzega.

Mr. Yaduvendra Mathur, Chairman and Managing Director of Exim India and Ms. Dorothy Stanley Mwanyika, Deputy Permanent Secretary of the Ministry of Finance of Tanzania, signed this agreement that will bring drinking water to more than 400,000 people in the dry north-west region of Tanzania.

So far Mikono Expo Group has partnered up with more than 50 media partners from all over the world to make this program very powerful and productive to mention few : Engineers news magazine of South Africa, World construction today India, Global Magazine,Tobuild Magazine, The G u a r d i a n N e w s Pa p e r, B u i l d Avenue,InaFRICA24.COM,Constructi on Review Kenya ,Prime Location Magazine and many others. For this years’ event Mikono has sealed media partnership with CED Magazine, the pioneer and influential development magazine in Nigeria To attend this Event : Exhibition Manager Email: sales@mikonospeakers.com Tel: +255 717 109362 or +255 676 756163

Leverage on the best Business and Financial News Programme on Television

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Contact: Tel: 234 805 5243 516 E-mail:insidebusinessafrica@yahoo.com www.insidebusinessafricang.com

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TRADE & INVESTMENT

DEVELOPING STORY AFRICAN BUSINESS REPORT

FRIENDLY AFRICA World Bank plots $60bn war chest for Africa

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he World Bank Group is beginning to work out the details of its new financing package for Sub-Saharan Africa. Record funding of $57bn over three years was announced at a meeting of the G20 finance ministers in Baden Baden in Germany on 19 March but details of how the money will be used are still being decided.

World Bank Group president Jim Yong Kim has also signalled a change of policy or at least culture by insisting that his organisation will no longer tell African governments what to do. Kim said: "With this commitment, we will work with our clients to substantially expand programs in education, basic health services, clean water and sanitation, agriculture, business climate, infrastructure, and institutional reform.

This financing will help African countries continue to grow, create opportunities for their citizens, and build resilience to shocks and crises." Some of the money will be directed at regional initiatives, such as supporting refugees and their host communities.

It will also fund regional cooperation initiatives, such as the Niger River Basin Management Project, which will enable the Niger Basin Authority to promote greater economic, social, political and security cooperation in the Sahel.

The World Bank will launch the new Private Sector Window, which will promote trade through lending in local currencies. Indeed, the new finance package strengthens the trend of the 8 | www.cedmagazineng.com April 2017

multilaterals increasingly cooperating with the private sector.

The target areas for private sector cooperation across the Group are infrastructure, financial markets and agribusiness. Funding breakdown The International Development Association (IDA) will get $45bn; the International Finance Corporation (IFC) $8bn; and the International Bank for Reconstruction and Development (IBRD) $4bn. In addition, the Multilateral Investment Guarantee Agency (MIGA) will continue to offer political risk insurance and credit services on the continent.

The budget covers the period from the start of this July to the end of June 2020.

The IBRD will focus on health, education

Jim Yong Kim

and infrastructure projects, while the IFC will increase its investment in areas that suffer conflict or have a fragile security situation. It will also increase climaterelated investments.

The region will receive the lion's share of the IDA's global $75bn budget and the IDA's priorities for the period will be: Tackling conflict, fragility and violence; building resilience to crises including forced displacement, climate change, and pandemics; reducing gender inequality; promoting governance and institution building; and promoting job creation and economic transformation.

It is often difficult to measure the outcomes of such investments but the IDA has set some more tangible goals for its programmes over the three years: 5 GW of new renewable energy generating capacity; access to improved water supplies for up to 45m people; and the provision of essential health and nutrition services for up to 400m people.

The last of these targets is the most ambitious but the caveat of "up to" provides a lot of wiggle room. Less dictating Following the Baden Baden meeting, Kim left for Dar es Salaam where he clarified the cultural change in the World Bank's approach. He said: "Another thing that we will never go back to is the bad old days when the World Bank and other organisations told countries what to do. We don't do that anymore."

However, he also emphasised that he did not want African governments to return to the high debt ratios of the past, which suggests that the Bank will still try to encourage fiscal discipline in the region. Moving on to the Kigali Convention Centre in Rwanda, Kim called for the World Bank to restrict itself to financing that could not be provided by the private sector.

He was supported by Rwanda's Finance Minister, Claver Gatete, who said: "The projects that are so easy to get into and have guaranteed returns should be done by the private sector. If it can be done commercially then all development partners should avoid financing it.

We can ask governments not to take the easy route and not accept the loans for projects that can be funded by the private sector."

African Business - Neil Ford

WORKING TOGETHER How can Africans trade more with other Africans?

President Buhari of Nigeria

President Zuma of South Africa

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In response, the trend is increasingly towards localisation - a global company leverages its well-recognised brand but adapts it to the local conditions of the host country. General Electric, the American industrial giant, is a case in point. In May 2016, Jeffrey Immelt, its chairman and chief executive, put the strategy succinctly: "Globalisation is being attacked like never before‌ in the future, sustainable growth will require a local capability inside a global footprint."

lobal companies were supposed to be more efficient, leveraging resources from across the world, from places where they are best sourced, to create value on an unprecedented scale.

That seemed to be the case in fact.

Western multinationals used cheaper labour in underdeveloped countries to manufacture products that relied on inputs from all over the world and technologies developed in their more expensive labour markets.

Studies now suggest these advantages are being lost. Labour is no longer as cheap in many places. In China, for example, lifestyles are becoming increasingly aspirational - more Chinese are now seeking the good life and consequently demanding higher wages.

In addition, local firms are now themselves employing the technologies developed in the more advanced labour markets - think Safaricom and M-Pesa in Kenya. As The Economist put it in January, "the companies at the cutting edge are local, not global."

As a result of these and other factors, such as the strong dollar, the profits of multinationals are falling. Thus it is increasingly difficult to make a business case for the global company, at least in the form of costly brick-and-mortar operations in numerous countries. And the reduction of global ambitions among the multinationals has coincided with resurgent populist nationalism in the developed world.

Wasted opportunities Other than in the large economies of Nigeria, South Africa, Egypt and Kenya, it hardly makes business sense for a multinational to build an entire supply

Aliko Dangote

chain in an individual African country.

A cement manufacturer in Nigeria could easily supply the entire West African region. A bank in South Africa, where capital is abundant but opportunities scarce, could deploy capital in African countries desperate for investment. It should be easy to sell fertiliser produced in Morocco anywhere it is needed on the continent.

So why have long-established Western conglomerates on the continent not seized this opportunity? Instead, most build independent country operations ship out primary commodities to their home countries in Europe or elsewhere, and subsequently ship back finished goods into African countries.

True, those in the fast-moving consumer goods sector do some manufacturing in-country and sell to the domestic market. But their operations are rarely regionally integrated. African governments are partly to blame. Border r e s t r i c t i o n s, c u r r e n c y c o n t r o l s, incongruent trade regulations and so on stifle intra-African trade.

Governments say they want to promote such trade, but make little effort to do so.

Even in the East African exception, where progress is being made in infrastructural integration, worries about the increasing dominance of Kenya have been a source of grumbling, for instance

by Tanzania.

The challenge for companies Still, if intra-African trade is to be lifted from its current paltry level, it is likely to come about through the cross-border supply chain activities of pan-African multinationals. Thus, it behoves African companies to take on the mantle of intraAfrican trade.

"African economic development is going to be driven by African champions who operate across borders", says Andrew Nevin, chief economist at the Lagos office of PwC, a global consultancy. "[They] will be the primary way we connect African economies and make sure that Africans trade with Africans."

Amid longstanding lamentations by African policymakers about meagre intraAfrican trade (Benedict Oramah, president of Afreximbank, recently estimated it at 19% of the continent's

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EVENT

AFRICAN BUSINESS REPORT

Minister of Science and Technology, Dr. Ogbonnaya Onu entering the arena with wooden car

INNOVATION NIGERIA Nigeria's Future Depends On Technology And Innovation Deployment

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he Minister of Science and Technology, Dr. Ogbonnaya Onu has posited that the future of Nigeria lies in the deployment of science and technology in all spheres of national life.

Dr. Ogbonnaya Onu at the event launched a wooden made car at the science and Technology innovation expo 2017 held at the Eagle square in Abuja The minister who drove in to the premises with the two seater open roof car said it feat recorded by a Nigerian is testament to the talent of Nigerians and the invention further showcases local talents and innovators and inventors which this year's edition of Science and Technology Expo is all about.

In his speech, the minister further said that the Technology Expo 2017 is first of its kind, and it attracts innovators and inventors from across the country to demonstrate the countr y's capacity in moder n technology.

The minister explaining why the ministry opted for an Expo instead of a Fair, added that Fair deals with finished products while Expo is targeted at research and findings that were 44 | www.cedmagazineng.com April 2017

desirable and have reached a level where their intellectual property is protected but have not been developed and put in the market place. ""It is not a trade fair but a platfor m for inventors, innovators and researchers, the event offers us an opportunity to believe in ourselves again", Dr. Onu said.

In his word "the 2017 Science and Technology Expo will not have finished products on display and if there are any, they willbe rare and will have a link with the objective of the Expo," Dr. Onu urge Nigerians to patronize made in Nigeria products in order to encourage them to do more, adding that, Nigeria has the capacity to attain greater height.

Dr. Onu expressed confidence in the ability of Nig erian scientists, innovators and inventors to lead the quest to diversify the economy to attain the needed growth and development.

He praised President Muhammadu Buhari for invigorating the science and technology sector by giving it the required attention.

Earlier, the Chairman, House of Representatives Committee on Science and Technology, Hon. Beni Lar said the Expo offers the opportunity to

examine the country's quest for development.

She explained that the science and technology sector requires "a good dose of restorative and regenerative therapies to engender growth in our economy, in this age of scientific revolution and mass production.

"It is common knowledge that N i g e r i a i s abundantly blessed with natural resources in both vegetative and mineral forms, yet over the years our economy has been dominated by one mineral source, petroleum. Even the petro-chemical industry we bask in the euphoria of Nigeria's greatness, because of low science and technological development in the country, we are yet to maximize our potentials in it".

Hon. Lar said with science and technology growing at a high speed across the world, Nigeria cannot afford to be left behind.

"To avoid the ugly scenario of being left behind, we need to increase investment in science and technology.

This can only be achieved by through creation of awareness, conscientization and education of our people on the importance of science and technology", she added.

The high points of the opening ceremony of the Expo were the presentation of Presidential Awards to the winners of the 774 Young Nigerian Scientists Presidential Award to Master Adedipe Oluwatosin of Ekiti State who emerged first positions. Master Godwin Yamusa Shitta of FCT and Master Babatunde Ayoola Olaoluwa of Kwara State emerged second and third respectively.

By Faith Ndidi Aghaeze, Abuja correspondent

revenues in Africa by 20% over the period 2015-19.

The firm cited economic difficulties in Democratic Republic of Congo and Egypt, plus "an unprecedented level of disconnections linked to the strengthened requirements regarding verification of customer identities in most countries" as major factors in the performance. It has more subscribers in Egypt than in any other country. Orange MEA had 120.7m subscribers at the end of 2016, a rise of 7.2m over the year, although it gained 7.4m when it took over operations in Sierra Leone and Burkina Faso.

STILL THE BEAUTIFUL BRIDE Burkina Faso: Orange increases investment despite mixed results across Africa

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range has rebranded its mobile services in Burkina Faso as Orange Burkina Faso, as it steps up its investment in the country.

Orange bought the service from Bharti Airtel last January, along with operations in Sierra Leone, for an undisclosed figure.

The move comes as Orange's services elsewhere in Africa have struggled to grow, according to the company's latest results.

Bruno Mettling, who is both deputy CEO of Orange and CEO of Orange MEA (Middle East and Africa), said: "It is a great honour for the Orange group to inaugurate its presence in Burkina Faso at a time when the country is resolutely engaged in a vast economic development programme. The arrival of the Orange brand testifies to our commitment to providing the benefits of the digital ecosystem to the entire population of Burkina Faso."

Orange is the biggest telecoms operator in the country, with 6.3m subscribers. It plans to expand its 3.75G and mobile banking services in a country that has one of the least developed mobile telecoms sectors in Africa. The CEO of Orange Burkina Faso, Ben Cheick Haidara, said: "We are at a decisive turning point in the development of the telecoms market. Our ambition is to continue the work accomplished in recent years in the mobile money and mobile

internet fields." It is also investing heavily in fibre optics.

Annual results The company lumps all results for the MEA region together in its annual report, so there are no separate figures for Africa.

However, only two of the 21 markets in its EMEA region are in the Middle East, Iraq and Jordan, so the overall figures are likely to be a fair reflection of its performance on the continent.

Orange's MEA income grew by just 2.6% in 2016 to â‚Ź5.25bn and its earnings before interest, tax, depreciation and amortization actually fell, by 1% to â‚Ź1.66bn, in comparison with a 5% rise the previous year. These figures do not suggest that the company is on course to meet its target of increasing its annual

Bruno Mettling, Orange MEA Chief Executive Officer

Strategic priority Orange insists that Africa remains a "strategic priority" and intends to keep growing its operations on the continent.

Bharti Mittal is considering selling more of its African assets and so could provide one option. In February, Yannick Decaux, Orange's commercial director for Africa, said: "We are looking for acquisition opportunities in Africa; it is a priority region for us. We are speaking to everyone."

The big hole in Orange's West African operations is Anglophone Nigeria, but this is already a fairly competitive market, so acquiring an existing operator may be the best way to enter the market. There is certainly more scope for Orange to grow its revenues in Sub-Saharan Africa than in the French company's home market. It has recently increased its stake in Orange Tunisia to take control of the company, but most of its expansion will be targeted at Africa south of the Sahara.

A spokesperson for the company said: "With a fast growing demography and rapidly growing economies, Africa is without any doubt a certain bet for future growth. We remain confident that over the next 20 or 30 years Africa will see the highest level of growth in both population and the economy."

In the medium term, much will depend on the speed with which the price of smartphones continues to fall, as this will boost the consumption of wireless data

by African subscribers. Orange is also expanding Orange Money, its main money transfer and mobile financial service, across West Africa. Its African mobile money revenues are increasing by more than 50% a year.

African Business - Neil Ford www.cedmagazineng.com April 2017 | 9

DEVELOPING STORY AFRICA BUSINESS REPORT

PROSPERING AMID UNCERTAINTY Nigerian banks prosper while economy stalls

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hree of Nigeria's five biggest banks, as measured by the African Business' Top Banks survey, have announced impressive financial results for 2016.

United Bank for Africa (UBA), Access Bank and Zenith Bank have all registered big increases in revenues and profits, while the national economy continues to struggle. UBA's financial report, which was released on 27 March, revealed a 22% increase in gross earnings from N315bn ($991m) in 2015 to N384bn ($1.2bn) last year. The bank's pre-tax profits jumped 32% to N91bn ($286m).

The bank has successfully expanded outside of its domestic market, with operations in 19 African countries, plus the UK, US and France, all contributing to the positive financial results. UBA has 11m customers worldwide.

A spokesperson said: "UBA's subsidiaries outside Nigeria are increasingly gaining market share, reinforcing the strong and impressive subsidiary contribution to the Group, estimated at one-third of profit in 2016, from a quarter in 2015 financial year."

The contribution of UBA's nonNigerian operations have contributed to the 20% rise in the company's share price in the twelve weeks between 1 January and the announcement of its financial results. Nigerian banks are now beginning to join those from South Africa, Kenya, Morocco, the UK and France in 10 | www.cedmagazineng.com April 2017

IN FOCUS – LAGOS

In association with Strategy + Business

establishing operations in many different African markets. None as yet, however, can genuinely claim to be Pan-African banks.

Nigeria's financial authorities are keen to encourage more initial public offerings (IPOs) in order to strengthen the markets and generate more financing for private companies. In particular, the Securities and Exchange Commission wants to reduce the charges for new listings.

However, it will probably take a recovery in oil prices to stabilise the economy and inject more liquidity into the system.

Access and Zenith Meanwhile, Lagos-headquartered Access Bank has announced total revenue for 2016 of N381bn ($1.20bn), with a pre-tax profit of N90bn ($283m), representing increases of 13% and 20% respectively.

Group managing director Herbert Wigwe said: "We remain cautiously optimistic about the macroeconomic environment in 2017.

"Nonetheless, our objective of delivering sustainable shareholder value remains unchanged. We will also continue to maintain our proactive and disciplined risk management practices and leadership in sustainability initiatives."

For its part, Zenith recorded a 23% rise in post-tax profits, from N105bn ($330m) in 2015 to N130bn ($409m) for 2016. Its gross total assets increased from

N4 trillion ($12.5bn) to N4.739 trillion ($14.9bn) over the same period. It has announced a dividend of 202 kobo a share for the year.

However, Zenith has halted plans for bond and equity issues because of Nigeria's economic difficulties. The sales, which it had been hoped would raise up to N100bn, had been announced in February but the bank did not believe that the health of the capital markets had improved sufficiently to proceed.

A Zenith spokesperson said "The request for shareholders' approval to raise fresh capital has been withdrawn", after its annual general meeting in Lagos. The chair man of the Prog ressive Shareholders Association of Nigeria, Boniface Okezie, said: "I think the decision of the bank should be respected.

It is better that it did not go ahead with the offer than to lose out at the end. A bank like Zenith Bank cannot afford to fail at this time because they are the leader in the sector as of today."

Wider context While the Nigerian Stock Exchange (NSE) lost 6.2% in Naira terms and 40% when measured in US dollars last year, Zenith shares gained 5% last year.

However, all of these gains have already been wiped out, as Zenith's value has fallen in the line with the performance of the wider NSE. These fluctuations seem to have more to do with the trials and tribulations of the Nigerian economy than the bank's performance.

The Nigerian economy contracted in the final quarter of 2016, giving a 1.5% fall in GDP for the entire year. It is difficult to judge President Muhammadu Buhari and the new government for the recession, which is the first in Nigeria for a quarter of a century. The crisis is primarily the result of low oil prices, low oil production and a lack of foreign currency.

Zenith chairman Jim Ovia said: "As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate. Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market."

African Business - Neil Ford

that the light rail project is a reality and there is no fear of it being abandoned.

This was made possible because there is a genuine unity of purpose and agenda which breeds accountability. Past and present leaders in the state have been able to deliver on their mandates as they measure their performances against the backdrop of their unanimous vision and purpose and also gauge the pulse of the people for feedbacks on their performance through their various medium of feedbacks such as the Town Hall meeting, community interaction programmes among others.

The effectiveness of the Lagos MasterPlan dating back to 1999 is particularly reinforced through the establishment of trail blazing agencies such as the Lagos state Signage and Advertisement Agency, Lagos Waste Management Authority, Lagos state Traffic Management Authority, Bus Rapid Transport Scheme, KAI, Citizen Mediation Center, just to mention a few. Through these agencies, lots of jobs have been created for Lagosians and revenues generated for the state while also helping to advance the course of good governance.

Presently, Governor Akinwunmi Ambode is diligently working and consolidating on all the achievements of his predecessors and he is setting new

pace and also breaking new grounds. As at now, plans are on to construct an International Airport in Lekki Free Trade Zone as well as two Deep Seaports in the Badagry and Epe axis. This will, no doubt, improve the commercial viability of the state and engender further development.

Massive urban renewal projects are equally ongoing and the face of Lagos is fast changing with places like Ojodu Berger, Oworonshoki, Ketu, Ojota, Mile 12 and so forth being the better for it. The financial prudence of the incumbent administration in the state has helped to ensure that the state regularly meets up with its financial responsibilities across board. That all this is taking place in a recessional economy speaks volume of the great work that past and present leaders of the state have done to build a strong and economically viable state.

The state is gradually being weaned from depending or waiting on the Federal Government for financial derivation, a point that has been proven once by Asiwaju Bola Ahmed Tinubu in 1999 when former President Obasanjo refused to release Lagos State Local Governments allocation. Through sheer administrative, financial and economic prowess, the state government was able to meet its financial responsibilities to the 20 Local Government Councils and 37

Local Council Development Areas, without any financial support from the then Federal Government.

It is noteworthy to say that the ground work and foundation for the Lagos that we now enjoy was laid at that trying time in the political history of the state, and a legacy of good governance, true leadership, exemplary service and sacrifice was established. All these are truly the beauty of continuity in a democracy.

There should be continuity in government in order to make appreciable progress. Lack of continuity is the blight of governance in Nigeria. If succeeding governments had continued with the plans and programmes of their predecessors, Nigeria would have been a better place.

As the Akinwunmi Ambode administration approaches the second year of its mandate, there is reason to believe that that no part of the state will be left untouched in its developmental efforts. From the opulence of Ikoyi, Lekki and Victoria Island to the modest communities of Epe, Ajegunle and Ijora Badia, the administration remains unwavering in its commitment to building a new Lagos.

This is what the people wanted. This is what they voted for. This is what they deserve.

by Temilade Aruya

SUPER HIGHWAY

reduction of greenhouse gas emissions and supportive government initiatives.

As highway, bridge and infrastructure projects continue, technology will advance for those on these types of job sites. “Technology has the potential to benefit the highway industry right from the moment a project is conceived, through its design and delivery, onwards to and throughout operations.

Advances in data collection allow engineers and surveyors to work smarter,” Cockerell says.

Much of this digital transformation on smart-infrastructure projects is being driven by the owner, as the need to cut costs increases.

“Owner-operators of all types of transportation infrastructure, including highways, are going digital. Therefore, anyone involved in delivering highway projects and/or operating transportation networks in the future, will need to embrace technological innovation at some level,” Cockerell says.

Infrastructure is changing—and, as such, so too are the ways that constr uction professionals are leveraging technology. From the smartinfrastructure projects being built, to the technologies being leveraged at the jobsite, heavy/highway contractors have a lot of technical considerations to keep in mind for the future.

stop gaps of work and issues with noncompatible data.

Smarter Roads In addition to leveraging smarter technologies on heavy/highway construction projects, the projects themselves are advancing. This is more often becoming a the case for contractors working on roads.

The smart-transportation market is projected to reach $138.76 billion by 2020. Various solutions are needed to address emerging problems such as congestion, accidents and infrastructure scaling, which enhances the application of smart transportation solutions and services. The market is also driven due to a growing need for

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IN FOCUS - LAGOS REAL ESTATE

DEVELOPING STORY

LAGOS AND THE BEAUTY OF CONTINUITY

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ne of the hallmarks of good governance is continuity in policies, programmes and projects; especially those that are prog ressive and developmental. Political ideologies that are favorable to the growth and development of the people and the society are built and established on the str uctures of continuity as one government takes over and continues where the previous stopped. Therefore, continuity ensures effective resource management. This not only encourages development, growth and productivity, it also promotes the execution and completion of capital projects that are usually abandoned by subsequent

governments who discard the ideologies of the previous government as they take up new ones. This has continued to be a source of wastage public fund is often wasted on abandoned projects.

According to statistics, there are thousands of abandoned projects in Nigeria.

Continuity is not just about a particular political party being in power over a long period. Rather, it about the ability of a government to have unity of purpose, focus and clear cut direction. It is about subsequent governments operating within and upon the same ideology and political principle which are ultimately beneficial to the people.

Presently, in Nigeria, Lagos state represents a shining example of the dividends of continuity in governance as it has enjoyed and is still experiencing tremendous growth and development which make it a leading economic and industrial hub in the country. In the current political dispensation, the foundation for Lagos' current political and economic development was laid by the then administration of Asiwaju Bola Ahmed Tinubu which actually set the pace and put in place the development template which subsequent governments in the state has continued to build on. The legacy of good governance enshrined in the state continues to grow as the baton of leadership and authority pass from Tinubu to Fashola and now to Ambode.

Subsequent governments have continued to work within the frame work of the Lagos Development Master-plan for a mega city since 1999. Lagos state has since enjoyed the dividends of the master-plan while also blessed and endowed with visionary and pro active leadership. For instance, the immediate past governor, Mr. Babatunde Fashola (SAN), working with the master plan, consolidated on the achievements of his predecessor, Asiwaju Bola Tinubu, as he embarked on vigorous infrastructure development projects across the state.

This is evident in the light rail project which he started and which the current administration of Mr. Akinwunmi Ambode has continued to creatively improve on. This is the beauty of continuity as Lagosians are now certain

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A NEW APPROACH

But the Trump administration faces a bigger challenge in attempting to undo Obama's decision to remove roughly 125 million Arctic acres and nearly 4 million acres in the Atlantic Ocean from future oil and gas leasing. Obama formalized those withdrawals by invoking an obscure provision in a 1953 law that does not explicitly give presidents the power to reverse previous designations.

Trump said to ready order to expand offshore oil drilling

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resident Donald Tr ump is preparing to issue an executive order with the goal of giving oil companies more opportunities to drill offshore, reversing Obama-era policies that restricted the activity.

The offshore drilling directive is set to be issued soon, Interior Secretary Ryan Zinke told an industry conference in Washington on Thursday, according to three attendees who spoke on condition of anonymity to discuss a session closed to the press. Zinke did not provide specific details on the executive order during his presentation to the National Ocean Industries Association.

The coming order is set to push the Interior Department to schedule sales of new offshore oil and natural gas rights in U.S. Atlantic and Arctic waters, a m e n d i n g a f ive - y e a r O b a m a administration leasing plan that left out auctions there, according to an industry representative who has discussed it with officials.

The order is also expected to begin the process of revoking former President Barack Obama's decision to indefinitely withdraw most U.S. Arctic waters and some Atlantic Ocean a c r e a g e f r o m f u t u r e l e a s i n g.

Environmentalists say it would be unprecedented for any president to rescind such a designation, and the reversal would almost certainly be challenged in court.

Spokesmen for the Interior Department and White House did not respond to emailed requests seeking comment.

Although Trump can set those policy changes in motion with an Executive Order, the real work falls to bureaucrats

U. S. President, Donald Trump

in the Interior Department and could span years. Wedging new Arctic and Atlantic lease sales into the government's five-year plan would require environmental analysis and public comment periods -- perhaps consuming a year for seas north of Alaska and even longer for parcels along the U.S. East Coast.

Trump's move could benefit energy companies that now are focusing their U.S. offshore drilling programs on the Gulf of Mexico, including Royal Dutch Shell, Chevron Corp., Exxon Mobil Corp. and Statoil.

The Obama administration previously had considered selling leases in the Chukchi and Beaufort seas as well as 104 million acres of the mid- and south-Atlantic before ultimately foregoing those potential auctions.

Though time consuming, restoring Arctic and Atlantic lease sales would be relatively straightforward.

Alaska senator Senator Lisa Murkowski, a Republican from Alaska, has stressed that the maneuver must be done carefully so it can survive legal challenges.

Environmentalists said that is precisely why the Trump administration would not be successful.

"The administration can stare all day at the statute Obama used to protect large parts of the Arctic and Atlantic, but they won't find a syllable allowing Trump to revoke those protections.

Neither will the courts," said Niel Lawrence, Alaska director for the Natural Resources Defense Council.

"It's hard to imagine riskier, more expensive or time-consuming places to look for oil," Lawrence said by email. "It would be an extraordinary misuse of public dollars and agency resources to try to open them up now."

The U.S. Arctic is estimated to hold 27 Bbbl of oil and 132 Tcf of natural gas. Energy companies have struggled to tap those resources, given high exploration costs and sparse infrastructure to support the activity, but there has been a surge of interest in Beaufort Sea waters hugging Alaska's coastline, after recent announcements of discoveries by Repsol SA and Caelus Energy Corp. Eni SpA also asked U.S. regulators to consider its plan for oil exploration in previously leased Beaufort Sea tracts.

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Akinwunmi Ambode 42 | www.cedmagazineng.com April 2017

Babatunde Fashola, SAN

www.cedmagazineng.com

Senator Bola Tinubu www.cedmagazineng.com April 2017 | 11

TECHNOLOGY

COVER FEATURE

THE ROAD TO THE TECH SUPER HIGHWAY These are exciting times, and the ‘digital transformation’ of our business undoubtedly has the potential to bring significant benefits, but it also carries risk.

LAGOS: RACING AGAINST TIME In this report, we examines the strategic initiative of Governor Akinwunmi Ambode and his team to revolutionise and create a win-win situation in areas of urban planning and regeneration, waste managementto create a living city

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here is an ongoing race among cities globally today and the main objective or target of the race is for the cities: to transform from their present small time status to megacities. Historically, there are several success stories and well documented remarkable accounts across continents of slums that weathered the storms to transform to megacities.

Thus cities that readily come to mind and are tangible testimonies of this transformation are New York in the United States of America, Tokyo in Japan, Rio de Janeiro in Brazil, London in the United Kingdom and Lagos in Nigeria. Lagos is indeed a classic case because even former governor and current leader of the All Progressives Congress (APC), Senator Bola Tinubu acknowledged that "we met Lagos as a slum in 1999 when we took."

History of Megacities…

In the words of The World Population History "The urban shift over time has led to the emergence of the megacity - a city with a population of 10 million or more. New York City and Tokyo were the 12 | www.cedmagazineng.com April 2017

first known megacities, both reaching an urban conglomeration of over 10 million by the 1950s. But today they are far from alone in their size. In 2014 there were 28 megacities across the planet - from Sao Paulo, Brazil to Lagos, Nigeria and London, England to Shanghai, China and all major global regions except Oceania are marked with megacities."

So what then qualifies a city to be

named a megacity? According to Wikipedia's definition, a megacity is usually defined as a metropolitan area with a total population in excess of 10 million people. A megacity can be a single metropolitan area or two or more metropolitan areas that converge. The terms conurbation, metropolis and metroplex are also applied to the latter.

Industrial revolution which swept across Europe and Americas forced urban migration and population upsurge in unlikely places which hitherto were slums but through providence became sources of raw material of production bases. According to the World Population History urban population was three per cent in 1800 when compared to the 2008 figures which grossed over 50 per cent.

Throughout history, cities have attracted people as centers of culture, religion, learning, and economics.

Looking back, the first wave of urban migration took place in what are today's more developed countries, especially in Europe and North America. But looking ahead, 90 per cent of the future urban increase is expected to take place in Asia and Africa, and it is projected that close to two-thirds of all people will be calling cities home by 2050.

Ambode's 3rd Largest City Ambition

Governor Akinwunmi Ambode, Lagos State

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he emergence of IoT (Internet of Things) technology has transformed many industries, and the construction industry is no exception. The trend toward greater technology adoption is apparent on many heavy/highway projects.

Within the construction industry, the need for greater operational efficiency is driving the use of smarter technologies both in the office and at the jobsite. Combine this with the emergence of IoT technology, a need for cost-efficient technology solutions and increasing adoption of connected devices, and the result is the growth of smart industries.

However, these technological changes will take careful planning and consideration to effectively implement.

At an Intersection of Change Steve Cockerell, industry marketing

director for road and rail, Bentley Systems, summed up the construction industr y's cur rent position at intersection of old and new technology.

“These are exciting times, and the ‘digital transformation’ of our business undoubtedly has the potential to bring significant benefits, but it also carries risk. If there is not a clear strategy in place to manage its adoption challenges—including threats like cyber-attack, data privacy issues or a simple lack of integration between business-critical technologies—it can be fatal.” Cockerell says.

These challenges can lie with both new, emerging technologies that are coming to the construction jobsite or existing solutions, and it will be critical to make sure the systems work the way a contractor needs it to.

Jeff Weiss, executive vice president of sales, CMiC Global, points out the

technology needs to be scalable, configurable, reliable and accessible from any device and from anywhere.

One of the hurdles often faced on h e av y / h i g h way j o b s i t e s w h e n implementing new technology is some reluctance in adopting new practices.

This means it is essential for the project participants to work together to implement all this emerging technology.

Weiss said construction companies need the ability to achieve direct input from field operations in order to simplify data capture and improve business processes. In addition, direct collaboration with third-par ty stakeholders such as subcontractors and project owners is also required.

However, even with all the hurdles in this digital transfor mation, the oppor tunities to leverage new technologies are endless. “Technology enables the mitigation of redundant tasks, removes error-prone activities and facilitates interoperable business continuity,” Weiss says.

A lot of benefits are additionally seen in the workflow and information that is gathered on the construction jobsite.

“Advances in data collection allow engineers and surveyors to work smarter. For example, leveraging data obtained by laser scanners and digital cameras. Technological improvements can also apply to and deliver benefits across the lifecycle of existing infrastructure,” Cockerell says.

However, at the end of the day, the benefits of the technology in this digital revolution will only come when heavy/highway contractors collaborate with those on the project team.

Cockerell says, “To date, the survey, civil engineering and construction industries have relied upon separate technologies. There is clear evidence to support the fact that technology can improve project delivery.” This creates

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COVER FEATURE

FUTURE CITIES violence reported on a daily basis across hundreds of media outlets. Using this method, cities like Kano, Gombe, Jos, Okene and Zaria in Nigeria report violence rates that are off the charts.

Ditto with Kismayo, Merca and Mogadishu in Somalia. Meanwhile, lesser known cities like Huambo (Angola), Bukavu (Democratic Republic of Congo), Bujumbura (Burundi), Sekondi (Ghana), and Durban and Kempton Park (South Africa) are also at risk.

driven by several factors. First, there is what's called organic population growth, the natural expansion of population due to the surplus of births over deaths, a phenomenon driven, in Africa's case, by persistently high fertility rates. Second, there is in-migration - both voluntary and involuntary - from rural areas, with locals seeking a better life in the city and leaving poorer, and in some cases war-torn, rural settings behind.

Rural-to-urban migration is driven by both pull and push factors. Pull factors draw rural populations into the city and include economic opportunities, employment, better connectivity, access to essential services and education. Push factors drive people out of rural environments, and include rural conflict, environmental degradation, climate change and resource shortages. These factors can work together to create a vicious cycle, where poor rural conditions are exacerbated by a brain drain as people leave the countryside looking for a better life in town.

Third, labour migration and new forms of connectivity are driving migration across borders, stimulating booms in some cities while draining others of human capital. This is especially true in Africa, which has seen some of the fastest growth in connectivity since the turn of the century. In the year 2000, for example, there were only 30,000 cellphones in the whole of Nigeria; by 2012 there were 113 million.

The blistering pace of urbanization, combined with the so-called youth bulge especially the high proportion of young people with few job prospects - is a major risk factor for instability. Africa's youth 40 | www.cedmagazineng.com April 2017

population (15-24) is growing faster than any other region. About 70% of the continent is under 30, and this figure rises even higher in so-called fragile settings.

Young people account for about 20% of the population, 40% of the workforce and 60% of the unemployed. While offering a potential demographic dividend, the youth bulge is also a formidable challenge and potentially destabilizing factor for cities across the region.

Put all these factors together, and many cities across Africa are suffering from a combustible mix of risks. It is difficult to know the extent of urban insecurity since data coverage and quality is exceedingly weak. For example, only a handful of cities - most of them located in Ghana, Nigeria, Kenya and South Africa publicly report their homicide rates.

Another way to understand insecurity is by applying big data monitoring systems to track political and social

Model cities The news is not all doom and gloom.

There is much resilience in African cities resilience defined, in this case, by the adaptive resources that a city and its people can unlock to deal with the pressures of rapid urban growth. Urban resilience is embedded in the informality of a city's institutions and the ingenuity of its residents. And African cities are nothing if not dynamic.

The good news is that African cities are not standing still. Urban authorities in centres like Narok and Kisumu in Kenya, and Moshi in Tanzania are investing in improved risk assessment, urban upgrading, smarter land use and plans to strengthen environmental protection.

Major cities like Accra (Ghana), Arusha (Tanzania), Enugu (Nigeria) and of course Kigali are also doubling down on resilience, including in partnership with the 100 Resilient Cities Initiative.

There is still time to seize Africa's urban advantage. Using history as a guide, urbanization typically brings an economic dividend. It frequently translates into improved living standards and wellbeing in the medium to long term. Rapid population growth and expanding youth populations don't have to impede Africa's progress.

Nor will meaningful urban development occur spontaneously. Smart, inclusive, long-range planning is required. New forms of devolved governance are warranted, including greater power for mayors and municipal governments, and more participative involvement of civil society groups and city populations. A continental conversation is needed about the state of Africa's cities. If the continent's urban advantage is not properly seized, it could lead to a new era of urban fragility.

It is this race against time that Governor Akinwunmi Ambode is currently engaged in the most ambitious city transformation in the entire country. In almost two years since he assumed office, Ambode has sectorally allocated resources to bring about the change that will in no time crown Lagos as a truly mega city.

At the 14th annual lecture of Centre for Values in Leadership (CVL) held at MUSON Centre, Onikan, Lagos with a theme: 'Living Well Together, Tomorrow: The Challenge of Africa's Future Cities'.

He announced that the prime goal of his administration is to grow the state from fifth to third largest economy in Africa by 2020.

Specifically, the governor noted that the main objective of his administration remained the growth of Lagos from fifth to third largest economy in Africa, which he said formed the heart of his government. Ambode explained the significance of infrastructure projects his administration had been executing in strategic sectors of Lagos economy, noting that it was directed at up scaling the status of the state. He explained that the establishment of massive lay-bys, rehabilitation of inner-city roads and the construction of flyovers in different parts of the state were designed to end the challenges of urbanisation.

To realise this prime goal, Ambode insisted that yellow buses would be removed from Lagos roads for a more efficient, well-structured and world class mass transportation system that would facilitate ease of movement within the

New Waste Management Policy Another area the governor said the state government was also looking at was its desire to embark on massive reform in waste management system, expressing optimism that the plan "will be actualised

by July this year."

From a global perspective, cities across the world produce 1.3 billion tons of waste annually all of which place huge demand on resources and logistics and the dire consequences of an epidemic of these waste are left unattended to and poison both water and environment.

Nigeria, on the other hand generates more than 32 million tons of solid waste annually and according to the Managing

Babatunde Fashola, Former Gov., Lagos State

Sen. Bola Tinubu, former Gov., Lagos State

Ambode said: "When I wake up in the morning and see all these yellow buses, commercial motorcycles and all kinds of tricycles, and we claim we are a mega city, that is not true. We must first acknowledge that that is a faulty connectivity that we are running. - Gov. Ambode city. He said the present connectivity mode in the state was not acceptable and befitting for a mega city, and as such, a well-structured transportation mode would soon be put in place to address the challenge.

Ambode said: "When I wake up in the morning and see all these yellow buses, commercial motorcycles and all kinds of tricycles, and we claim we are a mega city, that is not true. We must first acknowledge that that is a faulty connectivity that we are running.

Director of Lagos Waste Management Agency (LAWMA), Engr. Abdul Wahab Ogunbiyi, the rate of waste generated by residents has hit 13,000 metric tonnes on a daily basis and therefore becomes imperative for the formulation of a holistic approach to tackle the accompanied challenges.

Ambode said "We are also embarking on massive reform in the waste and sanitation management system. I don't like the way the city is and the Private Sector Participants (PSP) collectors are not having enough capacity to do it but again should I tax people to death, the answer is no.

"I do not want to tax people, and so we need this partnership with the private sector so that it can invest in the sanitation management of the city and in no time, maybe by July, the city will change forever."

The State Government last year, proactively signed a $135 million (N85 billion) agreement with a foreign firm as part of its new waste management policy, a partnership under a Public Private Partnership (PPP) initiative expected to last for four years.

To walk the talk, Ambode has directed the Lagos State Waste Management Authority (LAWMA), to stop the collection of waste bills, while instructing that all payments should be remitted to the coffers of Private Sector Participation (PSP) operators, just as the government also canceled the monthly environmental sanitation exercise.

The State's Commissioner for the Environment, Dr. Babatunde Adejare, in a recent interview with a national daily said the investment, which will kick off soon involved the deployment of over 600 Mercedes Benz compactors and the engagement of street sweepers in all wards in the state, while private sector operators would be restricted to handle commercial waste.

Adejare also stated that the new policy would involve closure of existing landfill sites, creation of transfer loading stations in local councils and deployment of over one million ultra-modern waste bins with censors to monitor their movement against theft.

He said this was aimed at introducing new technology into waste management in the state.

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COVER OIL ANDFEATURE GAS REPORT

FUTURE CITIES

He stressed that the decision to contract waste management under a Public Private Participation (PPP) arrangement was because of the high cost which he said the state could not afford because of limited resources.

Under the reform, Adejare said three colour coded waste bags would be distributed to homes for different kinds of waste.

"The result of this new arrangement is that waste disposal will no longer be a challenge as efficient system will be on ground for effective management which will eventually eradicate cart pushers in the process," he said.

Angst against New Policy But as the state government gets set to drive its new waste management initiative, the current waste managers are up in arms and may likely head to court to challenge the new policy which they say will short change and put them out of work.

According to a policy document made available to the media, it was gathered that the administration did a scoping study that thoroughly assessed the current situation of the waste management infrastructure in Lagos, the state government acknowledged "systemic failures and hence started revising the legislative framework to harmonise the various laws on environment into a single law to allow for a more convenient administration of the law and

Eko Atlantic City 14 | www.cedmagazineng.com April 2017

Commissioner for Environment, Dr. Babatunde Adejare

management of the environment. There has also been an emphasis on putting in place an elaborate and standardized regulation of the environment of Lagos.

"Having set the legal groundwork, we adopted a holistic approach to addressing the unique problems of this mega city of 22 million people and designing a sustainable waste management system. In collaboration with the Ministries of the Environment, Justice, Urban and Physical planning we have developed strategies for regulation, enforcement and most importantly financing to support the initiatives. Over the past 10

months, these efforts have been shaped into The Cleaner Lagos Initiative," it stated.

It defined the role of the PSPs in the restructuring of the waste management system in Lagos going forward to be to serve the commercial sector of the state; adding that "the positive impact that PSPs efforts have had over the years on the Lagos landscape is undeniable. However, we cannot deny that we need a comprehensive waste management system that is world standard. Currently, we do not have an existing structure in place to support those endeavours.

"The restructuring will benefit PSPs because the state plans to introduce new environmental policies and laws that not only protect the citizens and the environment but all waste management operators who painstakingly invest the resources into helping with the clean-up of Lagos."

It was gathered that the investment in the waste management will address the major challenge being faced by operators by ensuring that sanitary landfills are constr ucted across the state.

Further more, "the proposed e nv i r o n m e n t a l l aw r e q u i r e s a l l commercial entities to have a valid contract with a registered operator, these contracts will prove to be a valuable component for any serious-minded operator with sustainable plans for growth."

Allaying the fears of the current PSPs, the document detailed that "The restructuring creates new operational parameters, which will see the existing PSPs (private sector participants) working in the commercial and public sectors. The law makes new provisions that protect the interests of existing investments by requiring all commercial entities to have a valid and enforceable contract with a registered operator. There are over 10,000 registered commercial businesses in Lagos so the PSPs are still very much relevant in waste stream management in Lagos State."

It recognised that the dynamic opportunities in the waste industry has made the currently ineffective and mismanaged industry rife with profitable opportunities. Businesses

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ACCRA - GHANA

FUTURE CITIES These are Africa's fastest-growing cities - and they'll make or break the continent

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he world is moving to the city. No part of the planet is urbanizing faster than sub-Saharan Africa. The continent's population of roughly 1.1 billion is expected to double by 2050. More than 80% of that growth will occur in cities, especially slums.

The outcome of this unprecedented urban transition depends on what Africa's political, business and civic leaders do next. If they take the right steps, innovation, employment and economic growth will follow. If they do not, they can expect poverty, sluggish economies and instability. Many African cities, and thus the continent as a whole, are at a tipping point.

Africa's future: a tale of two cities Africa is one of the last places on earth to urbanize. There is surprisingly little agreement about whether this is a good or bad thing. Some optimists are convinced that Africa's cities are the new frontier: sustained population growth will drive economic development, with Africa supplanting China as the world's manufacturing powerhouse. Pessimists are concerned that the continent's cities

could become overstressed through rapid, unplanned urbanization, generating political, economic and environmental upheaval, and overwhelming countries and possibly regions.

Much of Africa's urban growth has taken place quietly over the past few decades, far from global media headlines.

When it comes to the proliferation of cities - especially megacities with populations of 10 million or more - the conversation has been dominated by Asia. After all, there are just three megacities in Africa - Cairo, Kinshasa and Lagos - with a few more expected to join their ranks in the coming decade.

But megacities are not the whole story:

like urbanization globally, the fastest and most problematic growth in Africa's urban revolution is occurring in smaller and medium-sized cities. A new fragile cities data visualization identifies 528 African cities with populations over 250,000. The regional urban growth rate is averaging 3.9% a year. But it's not the size so much as the speed of their growth that matters.

Eye-wateringly fast population growth The speed and unregulated character of urban growth plays a critical role in predicting the prosperity and stability of cities.

Take the case of Antananarivo, capital of Madagascar, which ranks as one of one of Africa's most fragile cities and whose urban population is growing at 5.1% a year. Abuja and Port Harcourt in Nigeria, cities with high fragility scores, are ticking along at 6.2% and 5.1% respectively.

Meanwhile Ouagadougo, capital of Burkina Faso, is experiencing eyewatering population growth of 7.2% while Mbouda in Cameroon is the continent's fastest growing city at 7.8% annually. Keep in mind that the average global urban population growth rate is currently 1.84% a year.

The driving forces Africa's turbocharged urbanization is ? www.cedmagazineng.com April 2017 | 39

ENERGY COVER FEATURE

PROFESSIONAL INTERVIEW

of that process, when it is completed, they take the plan as thesis and they can work the plan themselves and in that manner you are encouraging bottom up approaches to planning and people are getting better informed, knowledgeable and properly counseled about what use goes into where and of course with that it is allowed for decentralization of the state and people are getting to do their business in a more compact manner.

For instance in Ikeja now, you buy all the wears in dozen, if you come to Shoprite almost everything is there before you know what is happening Lagos State government is trying to improve the tourism attraction of Alausa, you might not need to travel to Island, if we make those subject part of the cities; doing businesses, trading, commerce and administration will be easier within the state.

Urban planning for sustainable urbanization a panacea for economic growth?

The moment you allocate uses and resources in a manner that is efficient, out rightly what you are bound to achieve is; you achieve economic prosperity, you will achieve relative convenience and off course the city will be secured because there will be less crime and ultimately you would have created employment. So with those four issues, there is no way you will want to do resources allocation that you won't do circulation which is transport (mobility). And again I will still want to continue to make reference to successful government of Lagos State, in their bid to decongest the metropolitan Lagos State, they begin to re-invent mobility and that brings to bear, the bus rapid transport (BRT) and now they are thinking about multimodal transport option and that is where they will integrate water transport, railway, bus rapid transport (BRT), then to cab operating system and the issue of ensuring change of attitude of drivers, which of course brought about the drivers institute.

In all these coming together, one aspect is very key and that is funding, if you don't make adequate fund available for plan preparation, there is no way most of this things can come into being, as long as we make funding adequate and we are able to dispense it on doing planning, the next thing you have to do is encourage capacity 38 | www.cedmagazineng.com April 2017

I will still want to continue to make reference to successful government of Lagos State, in their bid to decongest the metropolitan Lagos State, they begin to reinvent mobility and that brings to bear, the bus rapid transport (BRT) and now they are thinking about multimodal transport option and that is where they will integrate water transport, railway, bus rapid transport (BRT), then to cab operating system and the issue of ensuring change of attitude of drivers, which of course brought about the drivers institute. to implement the plan, if you do plan like this and you don't create efficiency round the way it will automatically bound to fail.

So those that are going to implement the plan must equally have the capacity to work the plan. That is the area we begin to talk about the issue of paradigm shift, the way we organize our environment before is not the way an advance economist organize their environment and that is why people have started to import smart city concept.

Smart city concept is not all about allocation of resources in its entire ramification; it's about sufficient energy and power, when we begin to think about public good, our orientation and attitude will begin to change. The government still need to do a lot of work, then to do publicity, they need to empower people by creating jobs whether it's going to be through farming, we have lost out in industrialization, we have to engage our people in employment, so that the little they are able to do will get funds back into the system to improve infrastructure and to improve unit of informal settlements.

Some of these settlements fail because they cannot afford to live in a better environment and all of these people are coming from areas, what do you say of an Ilaje man or an Egun man that lives all his life in the water habitat and you want him to come and live in a big luxurious flat, you have to further encourage them if they want to live close to the water where they get their source of income you should also plan for them because they are an integral part of the plan system.

So we should begin to look at planning as a complete pole of organization of the city and what we tend to achieve basically are four. We have spoken about prosperity, convenience, relative comfort, and security. By and large, why we are not yet there is that we don't have the basis for

doing most of these jobs.

The demographic statistics has been a major issue in national population in Nigeria. Today they will tell you Lagos is 40 million, tomorrow they will say 25 million people, essentially when you don't know the figure of who you are planning for the plan is either under plan or it does not meet the need.

We should begin again to have correct data, correct statistics to make more of these things work but practically I am convinced that with the way Lagos is going, Lagos is almost there but they still need to do more about ensuring that power and energy supply is stable.

They need to do more by ensuring cordial inter-relationship among MDAs in service, so that people will not be working in dependently. It won't be convenient to now say physical planning and environment should be separated, because there are some key ministries that are interwoven that need to work together. And in togetherness in unity we can achieve lot more than every bit taken its spike and believe he is the champion.

Everybody should work through a template of development and that template must address infrastructure, security, health and welfare of the people, mobility and job creation.

What can you say about your predecessor is a year older?

Prior to his appointment as honourable commissioner he was in the public service, we met and have worked together, without missing words Tpl. Anifowoshe has been a very seasoned administrator, ver y objective professional, he has been an accomplished town planner, he has not failed any of his chosen assignment. I confidently want to say Lagos has not seen anything yet with the reservoir of energy desecrated on him when he was chairman of power institute, I was his vice then and I have tapped a lot from his wealth of experience and knowledge. We as institute wish him good health, wisdom and ask God to give him grace and opportunity to deliver well, so by the time he looks back he will have legacies to point to and say I surpassed this and I was able to achieve this. By and large he is a complete gentleman.

depend on it. The environmental burden of disease- the biggest childhood killers- pandemics such as cholera, diarrheal diseases and malaria are due to preventable environmental causes."

Proposed New Face of Oshodi

with the adept capabilities will be able to make significant impact on Lagos's waste problem and establish a viable business.

It therefore recommended that sustainable long-term funding is needed at both the state and local levels to support the efforts needed to reach the state's goals. Therefore, "systematic planning is critical to the long-term success of this comprehensive plan we have for Lagos State. We have worked to improve safety and security by boosting the security forces, the emergency response capabilities and by improving lighting," it stated On the likelihood of pressing ahead with reforms in the waste management system, the Ambode's administration says "We are now turning our focus to sanitation and the environment- there is no denial that the system is flawed. This administration has chosen to take the bull by the horns and address the challenges within waste management that are affecting our health, our economy and the very livelihoods of future generations to come in a phased, strategic and successful manner."

According to the administration, the new policy will help address the current ar rang ement with LAWMA/PSP operators which it said was not working because collection service levels are low and lack of effective waste management practices. For instance, it pointed at improper disposal of medical waste instead of incineration, sporadic collection; causing accumulation of

refuse dumps in public areas which are a health hazard.

It disclosed that the state's Ministry of Environment spends a large proportion of operational budget on the collection, transportation and disposal of waste; yet it floods when it rains due to disposal of plastic bags and bottles in canals and drainage system; it also accounts for major traffic gridlock especially during rainy season. Environmental problems such as air and water pollution, diseases, and deterioration of the environment because of poor practices have adverse socio-economic consequences.

Going forward, the administration said its new policy would establish strict, secure regulatory framework which will designate LAWMA to acts as policymaking and regulatory arm and KAI will be rebranded as THE Lagos State Environmental Corps Agency and will act as an enforcement unit.

In appealing for understanding and for the citizenry to embrace the new reforms, the administration rationalised that "Lagos State is at critical levels of pollution and we must change course because our children's lives and future

The state's Ministry of Environment spends a large proportion of operational budget on the collection, transportation and disposal of waste; yet it floods when it rains due to disposal of plastic bags and bottles in canals and drainage system; it also accounts for major traffic gridlock especially during rainy season.

The Win-win Scenario It said when fully implemented, the new policy will create 27,500 new jobs for Community Sanitation Workers (CSWs) who will be responsible for street cleaning and sweeping, drainage management; adding that salaries are already fixed at N18,500 per month which are above the federally approve minimum wage.

Other benefits that have been lined up for the CSWs are tax relief which will ensure that the CSWs' salaries are tax free in addition to the provision of insurance benefits with cover for health and life, accident and injury for all sanitation workers as well as pension scheme for all sanitation workers who will only be allowed to work in their immediate communities hereby eliminating transportation costs.

Clean Lagos Initiative Goals With the new reforms, the goals of the CLI will be to improve the quality of water, address treatment of waste water and sewage which are currently being dumped into the waterways without treatment first and to engage in environmental remediation projects to address degradation due to poor environmental practices; it is also expected to reduce the accumulation of solid waste by promoting reduce, reuse, recycle; improve air quality by reducing greenhouse emissions and air pollutants by enacting legislation so vehicles, machinery and generators meet safe emission standards.

Other goals are to ensure that in public areas, that people stop littering and engage in improper disposal of waste in drainage systems; clean up markets and ensure food vendors maintain health standards and lower crime rate with the job creation scheme

By Our Correspondent with Agency report and ThisDay

www.cedmagazineng.com April 2017 | 15

INNOVATION OIL AND GAS REPORT

PROFESSIONAL INTERVIEW

BREAKING NEW GROUNDS Nigerian Building and Road Research Institute (NBRRI) launches nationwide engineering subgrade soils atlas of Nigeria. By Festus Oseji

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he programme started with an opening remark by Mrs. Belena Wakama, the Permanent Secretary, Federal Ministry of Science and Technology, welcoming all dignitaries and participants to the event. In her remark, she stated that the judicious use of the atlas would result in the reduction in the cost of design and construction of highways and other engineering infrastructure as the bedrock of the nation's developmental aspirations. She also commended the efforts of Professor D.S. Matawal, the Director General/CEO of the Nigerian Building and Roads Research Institute (NBRRI) and his team for the determination with which they have consistently displayed excellence in articulating the Institute's mandates through novel technologies and R&D products that will reposition Nigeria globally.

Professor Danladi S. Matawal, the Director General/CEO of Nigerian Building and Roads Research Institute (NBRRI), in his speech gave a brief history of how the federal government of Nigeria embarked on a huge borehole scheme to supply water to the country between 1999 - 2007, but failed due to poor coordination and lost of data without collation and compilation.

He stated that the opportunity became so glaring and appealing when he assumed the duty as the Director General/CEO of the Institute in 2011.

After scr utinizing the details, elaborateness and scope of the works being conducted in NBRRI, remote locations in the country were explored and sampled.

The Director General also mentioned that the aim of this was to produce a technical report for each state of the federation, with respect to the details of the soils explored. He said the significance of the work might be better appreciated if everyone was to know that every manmade project, except rocket in space, have their foundation 16 | www.cedmagazine.com April 2017

Dr. Ogbonnay Onu, Minister of Science & Tech

inside the soil. Therefore, a general knowledge of the soil type and their engineering classifications is of paramount significance to the development aspirations of the country.

The NBRRI CEO further said that the implication of the availability of a soils Atlas is that decision making for planning, design and construction can be expedited through prior knowledge of the nature and types of soils to be encountered in a chosen location in the country right from conception stage.

Knowing the classification of the soil easily reveals to the experienced practitioner the particle size characteristics and the consistency of the soil. He mentioned that the work has been registered with the relevant authorities for protection of

Engr. Slim Matawal, DG, NBRRI

copyrights, and also the digitized format of the maps is being protected, because with the software, Arc. Gisloo.4, it is possible to query the soil and generate the quantitative values of measured soil properties applicable for preliminary decision making.

Furthermore, it was acknowledged that soil is of great significance to engineering and every stakeholder as it gives general guide for preliminary decisions, but does not obviate the need for specific detailed spot exploration works for projects.

Professor Matawal thank God Almighty, the Federal Ministry of Science and Technology and National Assembly Committee on Science and Technology, for sustaining the budget line without probably convinced about what the programme is all about. He also commended the staff of NBRRI, e s p e c i a l l y t h e Ro a d Re s e a r ch department who have persevered and labored to produce all the results in a programme spanning about 30 years.

Senator Professor Robert Ajayi Boroffice, the Chairman, Senate Committee on Science and Technology, in his goodwill message expressed his gratitude to be present in the launching of the Engineering Subgrade Soils Atlas of Nigeria. He said that the Senate of the Federal Republic of Nigeria is delighted to be associated with the initiative by NBRRI. For providing an opportunity to strengthen the capacity of research/sustained lear ning experience and opportunity for a practical application of the Engineering Subgrade Atlas.

He said, there is no doubt that the Engineering Subgrade Soils Atlas being launched is an indispensable resource that gives prior information to project custodians and other relevant professionals on the basic geotechnical characteristics of a proposed project location even before its commencement. He also assured that the Senate Committee on Science and Technology will continue to support the Institute towards achieving its vision, mission and mandates which were designed to make it a research center of global repute and standard.

we don't want them to withdraw from our properties because we have more space and we need to think big and begin to work so that at least people can begin to appreciate our effort in ensuring a more aesthetic and appealing environment. A building that will project good image for the chapter.

As part of our program, we visit tertiary institution within the state to do career talk and we have equally put in plan to visit at least two of the education district before the end of the year so that we can catch them young to talk with the young ones from the tenants, principles and benefits of good living, working and business environment. Those are part of the work we are bound to do.

Monthly, we equally engage ourselves in capacity building, through lecture series I which we invite professionals from outside to speak to our members and sensitize them on issues that have both direct and indirect relationship to physical planning. By and large, physical planning touched almost every sector of life be it health, be it transport, economics, budgeting speak anything whatever little thing you put on ground has a lot of multiplying effect on several other thing around you and that is the more reason while we continue to evangelize the prospect of ensuring that physical planning is given the rightful place so that in togetherness we can begin to shape our cities to become a befitting and livable African city.

With the number of year NITP has been in existence do you think it has really benefitted our cities?

To be objective we are yet to get there, principally, in the national content there are several state that have not been planning in there successive government; because if you don't have plans there is no basis for orderliness. Planning breeds orderliness, planning breeds aesthetics, planning breeds comfortability, planning breeds maximum utilization, planning apart from the creation and distribution of land uses, equally will tell you what you are not suppose to do, what you are suppose to do and where, and if by chance people or state or government have not actually appreciated this over the years. Then we have been very unfortunate to have gone through

military regime for couple of years and in military rule it is step down, instruction from above you don't do it, you get kicked out. And planning is about public welfare.

Town planning is not like you putting this money here you are expecting immediate return in short time. Planning is futuristic, when you plan you will be looking at germination period, you will be looking at the time of 5 to 10 years, this is how it will look like, this is the model, but we have been unfortunate most of our governments prefer to put money where public can begin to praise them, not taking caution that if you plan well all those things will come within the plan.

Over the years apart from the fact that there are many graduates, walking on the street unemployed but there are a lot of manpower, we don't have adequate manpower to manage or cope with the emerging intricacies of physical growth if you look at the rate of urbanization in most part of the world, the number of people that move into Lagos daily, there are no statistics to determine how many number that comes in, how do you know what to do. So determining the amount to put into medical, housing, sector will very difficult. So, some of these things has a lot of issues that surrounds them, if we don't begin to use our multi- visionary expertise to situate them and begin to work with plan adequately, we may not get there.

And that was why I said that by my assessment we are yet to get there, and not until we as a group begin to appreciate that we need to do it well and we have to start it now.

If we begin to do it the way they have been doing it in the past we will still be complaining about same problem and that is where we have to give kudos to government of Lagos since Asiwaju Bola Ahmed Tinubu, they already have a development template, successive government pursue those programs

Planning breeds orderliness, planning breeds aesthetics, planning breeds comfortability, planning breeds maximum utilization, planning apart from the creation and distribution of land uses, equally will tell you what you are not suppose to do, what you are suppose to do and where, and if by chance people or state or government have not actually appreciated this over the years.

where the last government stops and it becomes easier nobody is too much interested in I want this things to be attached to my name, people now are beginning to appreciate what they are using tax payers money for, more diligently to achieve the overriding public interest goal. So essentially, planning is a public welfare project and if we don't plan we are going to fail, and that is why we have to encourage Lag os State government at least they have done master plans.

Go back to Abuja, Abuja has a master plan that even before they commence the implementation people have already begin to fragment the land into series of plots to corner them into their private use not minding what uses the plan has for those allocation.

So these are the problems and when you do master plan, you are expected to do other lower hierarchy plan that will be more detailed to take care of those details that are not taken care of in the master plan.

Master plan is just a frame work of development, it does not describe the details of what will be in what place, so if you look at that scope, there is a need after the Abuja master plan have been done, there will be need for Gwagwalada master plan for Suleja, master plan and Garki master plan also for Wuse, so all those place have to have local plan, district plan, neighbourhood plan, from where one couch to graduate into one another and if they are properly integrated it becomes whole but if you now do one and you fail to do the rest you won't get anywhere.

Luckily, though Lagos have invented instead of calling it local plan or subject plan they have called it Modern City Plan, so they subdivide the entire cities into sections and they begin to pick them one after the other for even development.

What we expected and of course we are collaborating with them, at the completion of those processes we now sit down together and integrate the plan to a whole so that if a surveyor speaks about a plan in Lekki, the man in Iyana-Ipaja too will know what it contains in the ledger so you have to be objective to make your plan open, to make it available for public to per-take and that is why we evangelize that there must be inclusive planning, the people you are planning for must be part Continued on page 28 ? www.cedmagazine.com April 2017 | 36

ENERGY DEVELOPING STORY

HOUSING REPORT

TAMING THE SLUMS Two million houses needed in Kenya to tame slum explosion

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he World Bank has said that Kenya needs to build two million affordable city homes to meet its housing deficit.The World Bank also said this will help stem slum explosion.

WB noted that investment in housing would also create jobs, improve

economic growth and strengthen the east African country's financial sector.

In its latest report the World Bank observes that a lot of Kenyans are unnecessarily living in slum dwellings due to limited supply coupled with lack of affordability.

The World Bank cautions that the

Happy Cheers

@

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Hon. (Tpl.) Wasiu Abiola Anifowoshe, FNITP Honourable Commissioner Lagos State Ministry of Physical Planning & Urban Development

The Management of BISI ADEDIRE & PARTNERS congratulate our indefatigable leader and Hon. Commissioner, HON. (TPL.) WASIU ABIOLA ANIFOWOSHE, FNITP, RTP as he celebrate his birthday and as a recipient of CED Magazine Special Professional Recognition Award We identify with you and pray for more strength and wisdom.

Congratulations!

problem will only become worse over the next decades unless a serious focus on housing and the finance of housing for the average Kenyan is taken.

While only one in three of Kenya's 44 million people live in cities, its population growth is largely urban. The report also show that most Kenyans will live in cities by 2033.

Although Kenya needs to produce 244,000 homes a year to meet demand less than a quarter of this number are being constructed it said.With rapid urbanisation, the situation is worsening as Kenya's cities are growing by 500,000 people a year, it said.

Kenyan capital Nairobi is one of Africa's most expensive cities for housing, with 2013 prices almost triple those of 2000, it said.

Africa has the fastest growing cities in the world, with 40 percent of its one billion people in towns and cities, but most new homes target the middle and upper classes as it's easier to make a profit from high-end sales.

One of the main problems is a shortage of finance.

There are fewer than 25,000 mortgages in Kenya as banks have limited access to long-term funding, it said.

The World Bank observes that More Kenyans could own their own homes if the private sector set up a mortgage refinance company to provide cheap, longterm funding to mortgage lenders from the capital markets and other investors.

THE OPL OF SCANDAL Everything we know about the Malabu oil scandal

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n Monday, April 10, 2017, the Chairman of the House Committee on Justice and the leader of the adhoc committee investigating the $1.3 billion Malabu oil deal, Razak Atunwa disclosed that the committee would invite former president Goodluck Jonathan to testify on his role in the award of Oil Prospecting Licence, OPL 245, to Malabu Oil and Gas Ltd. According to Razak, recent developments from the committee's investigation demand that Jonathan testify. A Russian middleman who brokered the deal, Ednan Agaev told Italian prosecutors that Jonathan may have received a $200 million bribe from former petroleum minister, Dan Etete.

However, former president Jonathan described reports linking him to the oil scandal as the work of his detractors, who are threatened by his rising international profile. The former president has become the highest profile individual involved in the messy scandal.

What we know Malabu Oil and Gas Ltd, is co-owned by former Nigerian petroleum minister under the Abacha regime, Dan Etete. It was awarded the controversial OPL 245 in 1998 by the Abacha regime. Malabu appointed Shell as its technical adviser.

35 | www.cedmagazineng.com April 2017

After the death of Abacha, legal wrangling started between Malabu and Shell over the oil bloc.

In 2011 former Nigerian president Olusegun Obasanjo revoked the license and gave it to Shell. According to a letter written by former attorney general and Minister of Justice, Mohammed Adoke Bello, with excerpts in the Punch, this development forced Malabu Oil and Gas Ltd to take the matter to the House of Representatives' Committee on Petroleum. The committee frowned at the revocation as it found no basis for such and subsequently ordered that the license be returned to Malabu.

"Malabu also instituted Suit No. FHC/ABJ/CS/420/2003, before the Federal High Court (FHC), Abuja, to enforce its claim to OPL 245. Although the suit was struck out by the FHC, M a l a b u l o d g e d A p p e a l N o.

CA/A/99M/2006 before the Court Appeal, Abuja, Division," wrote Adoke Bello.

"During the pendency of the appeal, an amicable settlement was entered into between Malabu and the Federal Government and in compliance with the terms of settlement executed by the parties on the November 30, 2006, OPL 245 was fully and completely restored to Malabu in consideration for its

withdrawal of the appeal," he said.

Adoke, who denied brokering the deal, stated that Shell was not happy with the development and it took up the matter before the International Centre for the Settlement of Investment Disputes in Washington DC, demanding $2 billion from the Nigerian government for breach of contract. It also commenced a suit against the government before the Federal High Court, Abuja. An agreement was eventually reached for Shell to pay $1.2 billion dollars to the federal government who will in turn settle Malabu to relinquish its rights to the disputed tract. Adoke stated that he implemented the ter ms of the settlement as directed by Jonathan.

Meanwhile, the Economic and Financial Crimes Commission (EFCC), after investigations, considered the deal which was brokered by the federal government led by Adoke between Malabu and Shell as fraudulent and breach of Nigeria's money laundering laws. It is also seeking an arrest warrant for Adoke whom it accused of diverting the sum of $800 million paid into the federal government's escrow account at JP Morgan Chase Bank to Malabu. The EFCC also arraigned the owner of Malabu, Dan Etete, and other accomplices on charges of receiving the monies and transferring them to other accounts.

The EFCC also sought and obtained an order from a Federal High Court in Abuja, ordering the interim forfeiture of the lucrative oil block, Oil Prospecting License, OPL 245, to the Federal Government, pending investigation and prosecution of suspects in the $1.1 billion Malabu Oil scam.

According to reports from Buzzfeed, after emails between employees of Shell and the February 2016 call recording of the oil company's current chief executive, Ben van Beurden, were made public, Shell has eventually admitted that it knew that some of the monies that they paid to the government would be used to settle Malabu, Dan Etete and other Nigerian government officials as bribe, and it still went ahead with the deal.

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DEVELOPING CED LEGAL STORY

NSE FELLOWSHIP

NECESSARY ADJUSTMENT? Nigeria needs adjustment over oil price, says IMF

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he relative stability in the price of crude oil at the international market notwithstanding, the International Monetary Fund (IMF) has said Nigeria's economy remains in the zone of crisis, as returns from the commodity fall short of capacity to push the needed growth.

However, the global institution retained its 2017 Gross Domestic Product (GDP) forecast for the country at 0.8 per cent on the back of assessed recovery in oil production, expected sustainable growth in agriculture and higher public investment.

The Economic Counsellor and Director of Research, IMF, Maurice Obstfeld, who dropped the hint yesterday at the unveiling of the world economic outlook on the sidelines of the ongoing IMF/World Bank Spring meetings in the United States, said Nigeria was still reeling under the challenges of 1.5 per cent contraction in 2016 and as such, must make serious adjustments.

The contractions, he noted, were due to disruptions in the oil sector coupled with foreign exchange, power and fuel shortages, some of which still remained unresolved.

But the Chief of IMF's World Economic Studies, Mrs. Oya Celasun advised Nigeria and other commoditydependent nations to effectively diversify their revenue streams as a way out of the crisis.

18 | www.cedmagazineng.com April 2017

Dr. Ibe Kachukwu, Nigeria’s Petroleum Minister

Her words: "Many commodity exporters still need to adjust fully to structurally lower commodity revenues because commodity prices - the recent

Oya Celasun

rebound notwithstanding - remain low, restraining stronger growth in Nigeria and other oil exporters within the Economic Community of Central African States.

"Many of the largest non-resource intensive countries will find it increasingly hard to sustain growth through higher public capital spending, as they have done in the past, in the face of rising public debt and a slowing credit cycle."

Obstfeld pointed out that subSaharan Africa, over which Nigeria is a major influence, will witness a modest recovery this year, as its growth prospect has been projected to rise to 2.6 per cent in 2017 and 3.5 per cent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016.

The outlook for the region, however, remains subdued. Inflation in 2017 is expected to remain at double-digit levels in a few large economies like Nigeria, Angola and Ghana, reflecting, among other factors, the pass-through of large depreciations.

Obstfeld said that the economic upswing that has been expected for some time now could materialise in 2018, as the fund's study raised global projection for 2017 to 3.5 per cent, up from a recently forecast of 3.4 per cent.

But in 2018, all forecasts were held steady at 3.6 per cent, as growth remains tepid in many advanced economies, and commodity exporters continue to struggle.

"While there is a chance that growth will exceed expectations in the near term, significant downside risks continue to cloud the medium-term outlook, and indeed may have intensified since our last forecast.

"One salient threat is a turn toward protectionism, leading to trade warfare.

Mainly in advanced economies, several factors -lower growth since the 2010-11 recovery from the global financial crisis, even slower growth of median incomes and structural labour market disruptions - have generated political support for zero sum policy approaches that could under mine international trading relationships, along with multi-lateral cooperation more generally," he added.

governments of Lagos State and Ogun State have cooperated, what we experienced at the border settlement would have been a thing of the past, but I hope in no distant time this will yield good fruit and we begin to look more in the regional context about physical planning and development of our state.

There is nothing we can do in Lagos state that will not affect Ogun state and there is nothing Ogun State can do especially in areas that are within Ifo, Sango, Ogijo, Mowe, Arepo, Ibafo that does not either impact positively or negatively on the livability of the centre of excellence.

We are equally on the vanguard of ensuring collaboration with the state government from time to time in their various activities that bothers physical planning issues and matters on more mutual and harmonious manner. We are collaborating with our sister professional bodies all of us presently are under the umbrella of Association of Professional Bodies in Nigeria (APBN), Lagos State branch, together we have agreed to work more cordially and to ensure that all government programmes are properly situated in all the mandates of the individual professional body, but of course in a more collective manner so that we can have a result oriented tenure in our different branches.

So what all your predecessor have done has prompted you to via and contribute your own quota in another level?

Well, we thank God, mostly on all sphere of life now, the elders always have a way to groom their young ones and the moment they see you as capable what they tell you is take a shot and let's have a feel, so that we know if you are leaving people behind, you will know there are people who could take over from us.

Essentially because of that g enerational impetus to almost everybody, you always aspire to want to do new things and in doing new things of course you have history to go back to and that is why we vowed that God giving us opportunity we are going to improve on legacies already set by past administration and we have commenced that, we actually got voted-in in September and since then we have been working and we have encouraged capacity building.

Your predecessor has done so well from what you have said. What are you bringing that is new?

Prime, on that is mentoring of the young planners, those that are still in school and those that have graduated and yet to be employed and even those working, we have taken those challenges because we know we have to continue to increase their capability and through that they have form a group called young planners forum which we mentor regularly to assist them get their heart together on the profession.

Again, I have commenced processes constituting award in schools, so that we can begin to encourage best heads in schools and to further encourage others to want to do better.

We also meet with the government regularly and through this we encourage courtesy visit, we do media outreach, radio interviews, television talk show, we equally engage ourselves in stakeholders forum, though we have a plan to do a workshop not quite long were we will diagnose planning challenges and create a better template for achieving better service delivery and professional practice in the state. We have equally encouraged collaboration by forming regional forum, we call it south-west forum this is to engender a better relationship and further encourage some other chapters of some other state government who actually have not gotten to the state were Lagos is taking town planning to, and to the glory of God that is an influence to a large

extent.

The preparation for master plan for Ibadan, which of course since Ibadan have been created there have not been any solid master plan, but because they saw the experience of Lagos, they equally want to take a cue from Lagos, Osun State, Oyo State and Ekiti of late, all have come here as far as Anambra, Cross River, people come to Lagos to read our laws and begin to domesticate those laws to assist in their functions and performance of their visibilities in their various states and I want to summit here that if town planning profession as a body have not been forthcoming, there wouldn't have been an headway in this process.

We will from time to time encourage review of our laws, of our status, of all our rules and regulations, so as to continue to cope with the emerging challenges of physical development and planning in Lagos State.

We are equally ready to ensure the construction of an 18 floor building which was proposed but because of the economic reality we are beginning to review so that we can of course reduce the height of that building to probably between 7 and 8, and practically we will start soon so our secretariat will be wearing a new look and we hope to have a plan that will incorporate about 2 to 3 floors car park and of course offices and mixed use development within those floors.

If we have NIS, CIPM and others here Continued on page 28 ? www.cedmagazineng.com March 2017 | 34

ENERGY ENERGY HOSPITALITY

NSE FELLOWSHIP

65

RADISSON SPREADS IT WINGS

Radisson RED hotel set to open soon in Cape Town

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Hon. (Tpl.) Wasiu Abiola Anifowoshe, FNITP Honourable Commissioner, Lagos State Ministry of Physical Planning & Urban Development

The Management and Staff of MEPAS & PRODEL NIGERIA LTD congratulate a worthy professional and leader HON. (TPL.) WASIU ABIOLA ANIFOWOSHE, FNITP, RTP as he celebrates his birthday and as a recipient of CED Magazine Special Professional Recognition Award.

Happy Birthday!

Signed:

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adisson RED hotel which is going to be the first in Africa is set to open at the V&A Waterfront's newly revamped Silo District, Cape Town in the third quarter of 2017.

This is a spectacular initiative as RED hotels was successfully launched in Brussels, Belgium, and Minneapolis, in the US, and with RED hotels in Campinas, Brazil, and Glasgow, Scotland, soon to follow, plans to settle its 252-room hotel in Silo Six at the waterfront, next to the Zeitz Museum of Contemporary Art Africa, which will open on September 27 this year.

Cape Town Radisson RED Hotel V&A Waterfront curator Dale Simpson confirmed the news and said that Radisson RED is set to ignite the African hospitality experience with state-ofthe-art facilities.

"Radisson RED is set to ignite the African hospitality experience; it is going to be a revolution.

From keyless entry to multifunctional social spaces, we have reinvented everything. We have made new rules," said Mr. Dale Simpson.

The new development will boast a fully equipped gym and four events and games studios for up to 90 guests, as well as super-fast free Wi-Fi and 24/7 entertainment tech throughout the property. It will also allow pets under 8 kg and this will be a plus for pet lovers.

There will be a RED

Roof which will offer an "early to late hangout" space to customers with a pool and views of Table Mountain, while food and drinks will be offered at the OUIBar and Ktchn.

"The response to the launch of these properties has been overwhelming and we have no doubt that Cape Town RED will be embraced by locals and unshackled global travellers alike," Simpson concluded.

www.cedmagazineng.com April 2017 | 19

PROFESSIONAL INTERVIEW

GOOD PLANNING APPROACH In this Exclusive Interview with the Chairman Nigerian Institute of Town Planners (NITP) Lagos State Chapter, Tpl. Adekunle Salami, FNITP, he speaks passionately about the contributions of the past leaders of the institute and the need for the various governments in the country to embrace inclusive planning for even development. By Festus Oseji

T

ell us about yourself professionally?

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Lagos State has been the prime laboratory for physical planning issues and matters in Nigeria, this is the hot bed of planning challenges in all ramifications and I am very confident that the way we merge service of course we have done a couple of work that have given us the respect among colleagues and sister professional bodies in the country.

As town planners we are custodian of the environment and we are glad that God who happens to be the first planner for the universe have actually given us the opportunity to continue to lead, so that we can ensure better livable city for our citizenry.

I am Tpl. Kunle Salami, FNITP, the current Chairman, Lagos State Chapter of Nigeria Institute of Town Planners (NITP), I graduated 1st degree Urban and Regional Planning from Obafemi Awolowo University, Ile-Ife with 2nd Class Upper Honours and I am privileged to have two masters, one in Public Administration specialization in Human Resources from Lagos State University and masters of Science Urban and Regional Planning from University of Lagos (UNILAG).

Presently, I work with Lagos State government; I am an assistant director, What really prompted you to vile for my services professionally in this city span through 20 years now, right from my days in school as undergraduate the love I have for the profession, the seed was sowed then and I can boldly say that twice I was president Environmental Planning Student Association of my Alma Mata, Obafemi Awolowo University, and since then there have not been any looking back. I have grown from the young man of those years to become an accomplish professional.

I have served both at the state chapter as assistant secretary general, as general secretary and again of course, I was in the national council of the Nigerian Institute of Town Planners for 8 years. I was second assistant national secretary later graduated to the first national secretary and thereafter elected as national secretary for another two years and I served as exofficio for two years all coming up to 8 years in the national council.

Tpl. Adekunle Salami, FNITP

the position as Chairman of the NITP Lagos state chapter?

Thanks, first I want to salute the legacies of our forbearers. Our fathers in the profession had put in place through the reservoir of their energy and the love they have for the profession, they came together almost close to 30 years ago to form the Lagos State Chapter here in this capital city of Lagos Ikeja and since then till date, achievements and records speaks volume of what they have been able to put in place. I want to commend them for ensuring that we establish the rules, the regulations, the standard through which we can begin to conduct town planning services and practice, and till date I can confidently tell you that they have fared well in area of creation of building regulations, in area of creation of plans and maps for the state and of course, essentially they have equally assisted government to ensure release of land holding from evaders on acquired areas, though not within committed acquisition but global acquisition which we all have been enjoying the exaction policies and regularization policies and this have kept our mandate more open towards ensuring comfort, conscience and optimal land use and distribution of activities in the state.

Evidences abound here and there, through their effort we are able to secure this property we are in now; that is NITP Lagos state chapter secretariat and this edifice have been put up through the effort of those leaders and the followership of the institute. I equally want to s a y t h a t a l l s u c c e s s i ve government in Lagos at one time or the other have always been inviting us and they also continue to appreciate our robust criticism and of course our preposition towards ensuring a better livable Lagos city, and in our effort equally the chapter partnered with the government in the creation of Lagos mega city plan program.

And of course, if the two Continued on page 28

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SPECIAL INTERVIEW

SPECIAL OIL ANDINTERVIEW GAS REPORT

activities within Epe without stress.

Policy Issues: what are your views on the current policy in the housing environmental sector in Lagos State and possibly Nigeria?

You see, sometimes we say, housing for the poor people but our slogan in the state has changed, its now "housing that is affordable" not housing for the poor.

Because you can't use poor materials to build a good house. I used to have a slogan when I was doing my private practice, poor people don't come to my office, some that cannot afford to feed can't tell an architect to design a building for him, and it is people that are rich who can afford to pay for the architect service.

Because i design, i don't draw, i make your dream a reality. You tell me what you want and how you want the design to be and I translate your dream into reality. So there is nothing like 'housing for the poor', it is 'affordable housing'

The best way to keep in touch with Construction Industry

because where the rich men will buy their cement is where the 'poor' will buy their cement, the only difference is the location, if you build yours house in Banana Island and I build mine in IyanaIpaja, it is only the labour that will change, the price of cement is the same, the same with iron rod.

We thank God that when this administration came in, we did what is called 'rent to own'. This gives you the option, if you rent a two bedroom apartment you have the opportunity to own the house after some time based on the agreement.

At a larger scale I could say the various governments in the past have not been fair to the masse in the area of housing.

But with time the present administration will turn things around to ensure the citizenry enjoy the political promises of the government. The housing deficit presently been experienced in the sector is as a result of lack of proper planning of our cities.

APRIL 2017

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PROFESSIONAL INTERVIEW GOOD PLANNING APPROACH Tpl. Adekunle Salami, FNITP Chairman, Lagos State Chapter of NITP speaks on the institute and the contributions of paste leaders and the place of Lagos State in good planning practice in Nigeria

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CED Magazine

L-R: Commissioner for Physical Planning & Urban Development, Tpl. Wasiu Anifowose; Representative of Lagos State Governor & Deputy Governor, Dr. (Mrs.) Oluranti Adebule; Chairman, House Committee on Physical Planning, Hon. David Setonji during the 2016 World Habitat Day

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Day after day, week after week month upon month, Construction, engineering and allied sectors come alive in the Nigeria’s pioneer and influential development magazine, since 1992,

Arc. Musa Sada, Minister of Mines & Steel In 1983, I returned to Nigeria and I did my NYSC with Lagos State Government in the Ministry of Works and Transport. I was the Supervising Architect in-charge of NAN House, where the Deputy Governor's (Lagos State) office is presently, I was part of In this Exclusive Interview with the Hon. Commissioner, Lagos State Ministry of Physical Planning and Urban Development, Tpl. Wasiu Abiola Anifowoshe, the Design Architects that designed the Alausa Secretariat Mosque with other FNITP, he speaks passionately about the need for proper planning of all the Architects in the Ministry of Works. cities in the country, taking a cue from what Lagos state in currently doing.

After my service, I was looking for

By Festus Oseji employment in Lagos State, I waited for about 11 months. Eventually, I got peak briefly on your family a job in the Governor's office and background, academic, later to the Lagos State Lands and profession and practice?

Physical Planning as a Pupil Town Planner, and after many years My names are Anifowoshe valuable contribution as a town Abdulwasiu Abiola, I was born planner and several positions I into a noble family in Epe town, was later promoted as the General precisely March 30th, 1952. I Manager Lagos State Urban happened to be the first living child Renewal Authority (LASURA), In of the family; I am from a 2011, before I retired in 2012, polygamous home. My father when I clocked the retirement age being a wealthy person was the first of 60 and I had spent 27years in to start transport business in our service. town. So, I can say, I am a lucky When I entered service in 1985, child.

I registered a company of I started my primary school Architecture and Planning with education from Ibadan, before I two other colleagues, and it was proceeded to Ansar-Ud-Deen called Contemporary Consultant College, Isolo, where I had my Group. We worked together for O'levels and A'levels and finished about 3 to 4 years then we split, from there in 1972. that was when I got a job with the By 1974 I worked briefly with state and working with the Lagos State Government for Tpl. Wasiu Abiola Anifowoshe, FNITP, g overnment I had already six months as a Librarian at registered the company with the Onitolo College in Bode Thomas, looking for another profession that will Corporate Affairs Commission (CAC), Surulere, then in my quest to further my compliment Architecture, and I didn't Since I retired 2012, I just decided that education I travelled abroad, precisely want to go for a Doctorate degree I should set up my own company United States of America (USA) and because I didn't want to lecture. So I had practicing Architecture and Town which was solely sponsored by my interactions with some elders in America Planning together. Contemporary father. There I got an admission into the and someone advised me to study Consultant Group is Architecture and famous Howard University, in Planning to compliment Architecture To w n P l a n n i n g C o n s u l t a n c y Washington DC to study Architecture. I because they are like 'husband and wife', Organization and I have some had my first degree in Architecture in so I now decided to study Regional Architects that work for me.

1979, and my Masters Degree in Planning in Howard University, Architecture in 1980. although I gained an admission at the What led to your choice of career as a Before I left the shores of this country University of Houston, Texas but my young man growing up?

I gave myself a target that by the time I wife was not in support of that, she I was once an Architect before I became am 30 years old, I am going to study insisted I should stay in Washington. So I a town planner, when I was in secondary what it entails for someone to speak and decided to do my second Masters degree school as a young champ, what I people listen. in the Howard University, my second intended to do was to become an By the time I finished my Masters Masters was in City & Regional Planning Accountant but my father wanted me to degree in Architecture I was exactly 28 and by 1982 I completed my second read Medicine. Then, a gentleman came years, I was already married then and I Masters degree. I worked briefly with from Britain, Chief Bayo of blessed had one child who is my first born, and I Maryland Parks and Gardens in United memory, he happens to be my father's still had two more years left. I was state.

STRONG IN PRACTICE

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moved in. What caused it was that initially, there was no awareness on what planning is all about, so planning now chase development, and is not supposed to be so.

In a civilized society, you will never see a settlement that was not planned, it is only here, and what does this cause, opportunity to earn a living is opened to more people. Like Lagos State for example, we have five divisions, if each division can have what it entails, I won't have to leave my town, Epe to come and work in the Mainland. People that live in Badagry don't have to come Ikeja for b u s i n e s s. L o o k a t w h a t t h i s administration did for the Lagos State Funfair, which started in the last administration by the former governor, it was called 'Countdown Lagos' and initially it was only done in the Eko Atlantic Beach, and people who live in Badagry will want to come to that place and it as a ten-days event, other people living far from there will want to come there too. But when this gentleman came on board, His Excellency, Governor Akinwunmi Ambode, he decentralized it to divisions, that each division of Lagos State has a centre, Epe, Ikorodu, Badagry, Lagos Island, Lagos Central and Ikeja and it makes the event enjoyable and many people attended with stress.

For instance; I came from Epe and for the whole ten-days I was in my town; I made sure I attended the funfair every day. Where as if I have in my town, I won't waste fuel and the economic activity of that place will spring up. If the town is planned very well, a lot of people can come to carry out their commercial activities in Ikeja instead they will carry out all their business

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LAGOS RACING AGAINST TIME th

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As one of the fastest growing cities in the world, Lagos, due urbanisation issues is racing against time, from waste management to transportation and more

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Nigeria’ No. 1 Development Professional Journal

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CED PROPERTY SPECIALINTERVIEW INTERVIEW

OIL AND GAS REPORT SPECIAL INTERVIEW

My investiture was the first of its kind, in-law, he saw me as a young champ and that time I had finished from secondary when you will see the governor of the school, I didn't have direction on what to state and other dignitaries coming and it do next. He now said, 'Biola' Nigeria is was overwhelming, it was done in federal developing, you have the intention of palace hotel, we planned for 150 guests studying abroad, why don't you study Architecture, and initially I wanted to go and over 600 guests were there. So by the to the US to study Accountancy. time I became the Chairman I was Because he did Building in Britain and he already retired from the civil service said Nigeria will need Architects in the next 10 - 15 years. After his advice, I now decided to go to a place in Surulere to as the Vice Chairman, people wanted me undergo house-manship and from there to go in for the Chairman post, but I I developed interest in architecture. I looked at myself and I know myself to applied to my school in the United State be radical, I was the Vice and I was still in of America, I gained admission and I government and I can't be in went to the Embassy and my father was government and criticize the same ready to do everything possible, he has government; I wanted to become the the money. So they gave me the visa and Chairman when I am outside the in 1974 I left the shores of Nigeria to government, I told myself that when I America. So I could say my father's inlaw am outside the government I can speak was instrumental in my decision to my my mind and as if God knew what I was choice of career as a young man and I saying, I became the Chairman of the have no regret whatsoever. state chapter when it befitted me most.

You were once Chairman of NITP, My investiture was the first of its kind, Lagos State Chapter, tell us the when you will see the governor of the contribution of NITP, Lagos State state and other dignitaries coming and it Chapter has made over the years in was overwhelming, it was done in federal Lagos town planning programmes and palace hotel, we planned for 150 guests activities? and over 600 guests were there. So by the Well, you have said it; there is a slogan we time I became the Chairman I was say in Lagos, we call Lagos, 'the chapter', already retired, I spend two years before Lagos is the only chapter in a book, if handing over to my vice then Tpl. you take a book let's say it has 20 Adekunle Salami. We thank God for the chapters, it is Lagos and others. Lagos previous leaders, I was the 14th has always been the pace-setter in our Chairman, and the previous leaders have profession and not only in town done marvelously well. It is the planning, in other professions in Nigeria. We have the h i g h e s t nu m b e r o f registered Architects, E n g i n e e r s , To w n Planners, etc. you name it; it is Lagos and the State is blessed for that; that is why it is the "Centre for Excellence".

I was once the General Secretary of the state chapter, the Vice Chairman and by proxy if you are the Vice Chairman; automatically you are supposed to become the Chairman.

Lagos State Governor, Mr. Akinwunmi Ambode (2nd left), with Commissioner for Physical When I finished the term Planning & Urban Development, TPL. Wasiu Anifowoshe during inspection of projects 22 | www.cedmagazineng.com April 2017

foundation that they laid that we built upon during my tenure.

In Lagos State, we are the only chapter that has our land in the Alausa Central Business District (CBD), we have a small bungalow where we have our meetings.

Some of my achievement is that during my tenure, we designed an eighteen storey building that we want to build in CBD. We are almost concluding the arrangement with the developer that will be doing it for us. We were able to procure Certificate of Occupancy of land. Those are some of our accomplishments, and we collaborated with the state government in their policies as well.

We give them ideas and they listen to us, and we have also been partnering with the state government, when the state does not have Master Plan we make sure we press on the government until the immediate past administration and that of Senator Asiwaju Ahmed Tinubu starts to do some good job in the state.

I remember when I was in service we took the Master Plan to a past military governor of the state and what he said was that "how can ordinary paper cost N100m, I am not interested" and that Master Plan because it's on a paper forgetting that without plan you cannot have an orderly developed in a state.

Planning is the father of a city, if you see a city that is developed; it is because the planners there are working. So it is a continuous exercise for us in the state to ensure our state is well planned for the positive growth of even development.

What is your opinion on the standard of education in Nigeria in relation to town planning profession and practice compare to other countries development?

Well, in the past the planning profession is not recognized.

Nobody will get admission to the university and say he / she wants to study planning. If you apply for Architecture from Architecture you just go into Continued on page 30 ?

Congratulations!

The Management and Staff of

MOLAJ CONSULTANTS felicitate with HON. (TPL.) WASIU ABIOLA ANIFOWOSHE (FNITP) Honourable Commissioner, Lagos State Ministry of Physical Planning & Urban Development

on his 65th Birthday Celebrations We wish you more useful years in good health.

Hon. (Tpl.) Wasiu Abiola Anifowoshe, FNITP Honourable Commissioner Lagos State Ministry of Physical Planning & Urban Development

Congratulations!

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DEVELOPING STORY SPECIAL INTERVIEW planning. Now it has changed, in Canada, the highest paid professionals are planners, its unfortunate here.

In America, the highest paid professionals are medical doctors; each country has its own style. When we joined service in 1985, hardly can you see a single person practicing urban planning work in the government and that was what prompted me to work as Town Planner. When I got the employment in March 1985, I got employment with a practicing Architect outside, as at that time our take home salary was N250 and that Architectural firm wanted to pay me N1000 per month. At that time too I got employment with Ministry of Works where I did my NYSC as a level 10 officer, I got a job with Public Works Bureau, they gave me level 12 as an Architect and I also got a job in the Governor's office as a town planner level 9 and that was the smallest in terms of salary expectations.

I went to ask one of my aunties who happens to be a director in service, she was the one that advised me, 'Biola, take that level 9' at first I wasn't pleased because of the other options that were there. She now explained to me, you are an Architect and a Town Planner, if you do Architecture, the chances that you will forget planning that you have studies is very high because nobody practice planning except government as at then.

Then she said, if you practice your planning, Architecture is something that you can always do at the side since they are both "husband and wife" and I looked at her and I said to myself, "this

woman is saying the truth". After then I went for the job as a Town Planner in level 9 and I thank God that planning is what made me to rise to the pinnacle of my career because if I had gone for architecture, I couldn't have become a general manager in the ministry.

NITP celebrated 50 years last year 2016, in your opinion; do you think the institute has down well in terms of contribution to the development of urbanization and cities in Nigeria?

NITP celebrated 50 years as an association last year and we as the Lagos Chapter participated even more than the national body. We had novelty matches, we had the walking exercise and I participated also as the Chairman, we started the walk from our secretariat headquarters, going to Ikeja and back to Mobolaji Bank Anthony, to Toyin Street, came back to Allen Avenue. For the novelty match, I had the 5th position, we had press conference, inter-school debate as well. The state chapter did celebrate.

So in a true sense of it all Lagos has always been in forefront in town planning matters in Nigeria. Going memory lane when I joined service the school of planning were not much. But in Lagos alone we have four higher institutions practicing planning. So planning has come to stay because everybody has now realized that without it there is no development.

The immediate past governor of

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SYRIA CRISIS Oil spikes as U. S. strike against Syria roils global markets

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L a g o s State said no government project can commence without the approval of the planning ministry. Lagos State was the first state to have the ministry of physical and regional planning before it was the ministry of environment and planning but Asiwaju Bola Ahmed Tinubu with his wisdom and desire to change the face of Lagos divided ministry it into two by creating the ministry of Physical planning and urban development in 1999. Lagos always starts and other states follow.

What is your view on how the informal settlement across the country could be enhanced for better livability?

To start with, the situation we have in this country is unfortunate. We should have plans, before we move into settlements but unfortunately, planning comes after the people might have Continued on page 32 ?

steel stand weather station shelter

Temperature recorders

termometro per forno expansion thermometer

manometro tutto inox elettrico

digital and infrared thermometers

Weather instruments

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Continued on page 32 Quess Muraina Aderemi K. FNIQS, MRICS, RQS

TERMAF

V. Ca' Treviglio Principal Partner Calibration certificates

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bimetal thermometers

Calibration certificates

STAMP OF APPROVAL MRS Oil inaugurates Africa's largest oil jetty, a sign of approval for Nigeria’s strong and resilient economy

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RS Oil Nigeria Plc on Saturday inaugurated Dantata Jetty, a terminal, which has the capacity to berth vessels of 80,000 - 120,000 metric tonnes capacity, at the Tin Can Island Port in Lagos.

The facility said to be the first of its kind in Africa can monitor the loading of every drop of petroleum product in computers.

Ibe Kachikwu, minister of state for petroleum, said with the computerisation scheme in the facility, the company can monitor loading from anywhere in the world.

Kachikwu said he had a similar vision for the Nigerian National Petroleum Corporation (NNPC), and advised the nation's oil firm to adopt similar computerisation scheme to reduce losses in its operations.

"That is fantastic; it is important that we get the NNPC to align with this strategy to reduce losses," Kachikwu said.

"Sayyu (chairman of MRS Oil) heard this and took the decision on this facility."

Commending MRS, Kachikwu said

the acquisition of Chevron Oil had transformed the company from a small firm to a global one.

He said the federal government had the responsibility of improving the ease of doing business to ensure the success of businesses like MRS Oil. Babatunde Fashola, minister of power, works and housing, said MRS Oil deserved commendation "not only for the size, the capacity - the audacity really of what MRS has done but also because it was done by a Nigerian company."

Fashola said the current administration remained committed to supporting local investors such as MRS and others.

"Congratulations that this investment has come to maturity at a most auspicious time - barely a week after Mr President launched the economic recovery programme and one of the priority actions in that programme out of the 60 interventions is strengthening our capacity towards self-sufficiency in energy supply," Fashola said.

Fashola pledged to electrify the

il jumped as the U.S. cruise-missile attack against Syria roiled global financial markets.

Futures in New York and London surged more than 2% to the highest in a month. The strike early Friday morning targeted hangars, planes and depots at one Syrian military airfield, according to the Pentagon. Syria borders Iraq, O PE C 's seco n d-b ig g est cr ude producer. The news rippled across financial markets, with gold and government bonds advancing as stocks declined.

"It seems today's spike is just a kneejerk reaction to the missile strike," said T homas Pugh, a commodities economist at Capital Economics. "Syria produces little oil itself so the spike probably reflects the risk of increased tensions between the U.S. and Russia or Iran."

Oil had struggled to extend a rally beyond $51/bbl as concern over surging U.S. supplies countered optimism around a possible extension to production cuts led by the Organization of Petroleum Exporting Countries. The strike against Syria comes two days after Bashar al-Assad's regime used poison gas to kill scores of civilians, drawing international condemnation while President Donald Trump called it "an affront to humanity."

Russian President Vladimir Putin condemned the U.S. strike as an "act of aggression against a sovereign state" and suspended an accord that had prevented direct confrontation between the nuclear superpowers in Syrian airspace.

West Texas Intermediate for May delivery on the New York Mercantile Exchange rose as much as $1.24 to $52.94/bbl, the highest level since

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OIL AND GAS REPORT

OIL AND GAS REPORT

SENEGAL AT 57

Oil investment boom fuels growth hopes

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nternational investment in Senegal's oil and gas industry is picking up as the country celebrates the 57th anniversary of its independence from France on April 4.

BP has bought equity in Kosmos Energy's Tortue oil project, while Cairn Energy is drawing up detailed plans to develop the nearby SNE oil field. Most recently, between January and March, Scottish oil company Cairn drilled the SNE 5 appraisal well to a depth of 2,853m and the well uncovered further oil, confirming the company's expectations.

Cairn expects to submit its development timetable to the government next year with the final investment decision to follow within a year. Much will depend on the result of further appraisal wells, to be drilled later this year, which will help clarify the size and structure of the field.

The company is the operator of three blocks offshore Senegal: Sangomar Deep, Sangomar Offshore, Rufisque Offshore, with a 40% stake in each, alongside partners Far Ltd (15%) and Petrosen, which is the state oil company of Senegal 10%. Australia's Woodside Petroleum bought a 35% stake in the consortium from ConocoPhillips last year.

Probable oil reserves are already put at 473m and first oil is expected sometime in 2021-23. It is likely that a floating production storage and offloading (FPSO) vessel will be deployed on the deepwater 24

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field.

FPSOs are used on fields that lie in water that is too deep to allow production via an oil platform anchored to the seabed. Cairn described the SNE find as "the largest global oil discovery in 2014". The SNE 1 well was the first to be drilled in the country for more than 20 years and its first deepwater well.

BP farms in At the end of February, BP completed the purchase of equity in Kosmos Energy's Tortue project, which covers 33,000 square km of maritime territory offshore both Senegal and neighbouring Mauritania. It

Chief Executive OfficerAndrew G. (Andy) Inglis

has acquired a 32.49% stake in Kosmos' Senegalese blocks and 62% of those in Mauritania. First gas is expected in 2021.

The structure of the deal for the Senegal assets involved the purchase of a 49.99% stake in Kosmos BP Senegal Ltd, which holds a 65% share in the Saint Louis and Cayar deepwater fields. Timis Corporation (25%) and Petrosen (10%) are the remaining members of the Tortue consortium. The group aims to develop the gas reserves jointly but the big question is whether the two governments can be persuaded to pursue joint development.

BP also becomes operator of the project, although Kosmos will remain the technical operator while three more exploration wells are drilled, probably this year. The US firm will still hold a slightly larger - although much reduced - stake in the Senegal blocks, at 32.51%.

Kosmos CEO and chairman Andrew Inglis said: "With the transaction now complete, Kosmos looks forward to working with the government of Senegal and partners to move ahead with the next stage of our work program involving further exploration in the two blocks and seeking to produce first gas from the Tortue project by 2021."

Kosmos estimates gas reserves on the Tortue Field at more than 15 trillion cu ft and further exploration could push that figure higher. Up to 50 trillion cu ft has already been suggested. The most likely commercial outlet for the gas would be a liquefied natural gas (LNG) plant that would allow the gas to be exported around the world.

There are currently only three LNG exporters in Sub-Saharan Africa: Nigeria, Angola and Equatorial Guinea, although Mozambique and Tanzania are likely to join them in the next few years. Even a small plant would require billions of dollars in investment, representing the biggest single investment ever made in either Senegal or Mauritania.

The government of Senegal hopes that some of the gas can also be used in domestic power generation, as the lack of reliable power supplies is one of the biggest drags on economic development. In addition, oil and gas investment should help the country to build on its recent more rapid economic growth. GDP increased by 6.5% in 2016, the fastest rate for eleven years, and the IMF forecasts annual growth of 7% for this year and next.

African Business - Neil Ford

corridor and build transmission lines because the area is an important investment corridor and behind it is tourism.

Okechukwu Enelamah, minister of industry, trade and investment, said the federal government was committed to improving the country's global ranking in the ease of doing business to attract investors.

He said Nigeria should not think that her environment is unique in terms of doing business because investors, including local ones have other choices.

"We live in a world where we are part of the global community. Nigerians should not think that their environment is unique in attracting business because investors have other destinations. So, we must improve our global ranking," Enelamah said.

Earlier in his welcome address, Sayyu Dantata, chairman of the company, said the jetty would save the country the expenses incurred in ship-to-ship (STS) transfer, as well as demurrage, which he estimated at over $200 million yearly.

He said before the construction of the jetty, the company could only bring small vessels of 10,000 - 30,000 metric

SYRIA CRISIS March 7, and traded at $52.09 by 8:26 a.m. local time. Prices are up 3% this week, heading for a second weekly gain.

Total volume traded was about 137% higher than the 100-day average.

Temporary surge Brent for June settlement on the London-based ICE Futures Europe exchange surged as much as $1.19 to $56.08/bbl, also the highest level since March 7. Prices are up about 4.5% this week. The global benchmark crude traded at a premium of $2.67 to June WTI. The oil price spike may be temporary as long as the military action is contained and doesn't spread into Iraq, as Syria is no longer a significant producer, Nomura Holdings Inc. said in a note. Neighboring Iraq pumped 4.43 MMbpd last month, according to data compiled by Bloomberg.

Kachikwu, Fashola, Enelamah, Amaechi and Sayyu Dantata, CEO, MRS at the event

tonnes capacity to berth and discharge products at the depot.

Sayyu said with the completion of the jetty, a vessel of 60,000MT capacity is already at the facility, adding that the capacity is equivalent to six vessels of 10,000MT tones each.

"We have gone out to the sea 34 metres. We save costs for the country in terms of STS (ship-to-ship) transfer,"

he said.

"This vessel is equivalent to six vessels of 10,000MT each and it shows that Nigerians can do great things. For the first time in Africa, 60,000MT vessel berth today and it has never happened anywhere in Africa. What we normally use to do operations is between 10,000MT and 30,000MT."

Syrian output has slumped during the ongoing conflict. Production of petroleum and other liquids dropped to about 35,000 bpd in 2016, making it the 66th-biggest producer, according to the Energy Information Administration.

The nation pumped an average 400,000 bopd between 2008 and 2010.

A drop in oil prices is still possible in the next few weeks amid rising U.S. crude stockpiles, according to Capital Economics' Pugh. "However, taking a step back, economic growth in Europe and China is looking strong, which should support oil-demand growth," he said.

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SPECIAL INTERVIEW

DEVELOPING STORY OIL AND GAS REPORT be the least in almost three decades and compares with a peak of almost 3.5 million in the late 1990s.

Lack of investment and maintenance in the country’s refineries, in addition to fires and equipment failure, has diminished PDVSA’s ability to supply the domestic market, making an importer of a nation once awash with gasoline supplies. The units were running at less than 50% of capacity, Ivan Freites, an oil-union official, said last month.

The collapse of oil prices -- with a barrel of crude in New York worth less than half its $107 peak in mid-2014 -just made everything worse. West Texas Intermediate crude was down 13 cents at $52.95 at 8:52 a.m. in New York. The Venezuelan oil basket price stood at $43.57 last week.

Schlumberger Ltd. said in a federal filing in January that it faces a total outstanding balance of $1.2 billion from PDVSA. Schlumberger and Halliburton Co., the world’s No. 1 and No. 2 service providers, announced plans last year to cut back activity in the country to better deal with missed payments. Phone and email messages to Schlumberger press officials weren’t returned. Emily Mir, a Halliburton spokeswoman, had no comment when reached by phone.

Political gridlock Maduro has been in a bitter dispute with the National Assembly since opposition parties won a majority of seats in elections in late 2015. The institutional gridlock is taking place as the country, which has depended on loans from China and Russia in recent years for liquidity, is finding it harder and harder to obtain financing. As reserves shrink, debt service is becoming more burdensome. The economy fell into a depression, with runaway inflation and widespread consumer shortages.

"There’s a lot we don’t know," Chris Cote, an analyst at ESAI Energy in Wakefield, Massachusetts, said by telephone. "What we can see is that oil infrastructure is in a very poor state."

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THE COMING GAINS Oil set for longest gain since 2012 as Saudis seen extending cut

Nigeria’s Construction Industry Hall of Fame 2017 Date: Friday September 15, 2017 Venue: Sheraton Hotels, Ikeja, Lagos Theme: Local Content and the Economy: Building Capacity for Growth

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Nomination is Now Open Send your nomination to the following contact: E-mail: cedmagazine@gmail.com; info@cedmagazineng.com Mobile: 234 805 524 3516 Call: 234 805 976 4839 www.cedmagazineng.com

il advanced for an eighth day in London, the longest gain since 2012, on confidence Saudi Arabia will support an extension to OPEC-led output cuts just as stockpiles show signs of shrinking.

Brent futures rose 0.6 percent, after rising 6.4% in the previous seven sessions. Saudi Arabia is likely to back prolonging the curbs into the second half of 2017 in an effort to boost prices, according to a person familiar with the kingdom’s internal discussions. Several other countries, including Kuwait, have also expressed public support for an extension. Industry data was said to show U.S. crude supplies fell last week and O P E C ’s m o n t h l y r e p o r t s a i d international inventories dropped in February.

While speculation that the Organization of Petroleum Exporting Countries and its allies will extend their six-month pact aimed at eroding a global glut is helping boost prices, there’s also concern that rising U.S. output will counter the reductions. In its monthly report on Wednesday, OPEC also boosted estimates for rival supplies as shale drillers emerge from the industry’s two-year slump.

“OPEC just has to have patience because the markets are rebalancing,” Abhishek Deshpande, chief energy analyst at Natixis SA in London, said in a Bloomberg television interview.

Brent for June settlement was 32 cents

higher at $56.55/bbl on the Londonbased ICE Futures Europe exchange as of 12:06 p.m. local time. Prices increased 25 cents, or 0.5%, to $56.23 on Tuesday.

The global benchmark crude traded at a premium of $2.51 to June WTI. Saudi decision West Texas Intermediate for May delivery was at $53.65/bbl on the New York Mercantile Exchange, up 25 cents.

Total volume traded was about 18% below the 100-day average. Front-month prices rose 32 cents to $53.40 in second week in April, the highest close since March 1.

Saudi Arabia will decide on an extension depending on the stance of other OPEC nations such as Iraq and Iran, as well as Russia, which isn’t a member of the group but joined the

output cuts, the person familiar with the kingdom’s internal discussions said. The world’s biggest crude exporter hasn’t made a final decision yet.

The kingdom, OPEC’s largest producer, reduced supply below 10 MMbopd in March, more than pledged under the deal, according to the group’s monthly report. The group is scheduled to gather in Vienna on May 25.

U.S. crude supplies fell by 1.3 MMbbl last week, the American Petroleum Institute was said to report. Stockpiles probably dropped from a record high by 1.5 MMbbl, to 534 MMbbl in the week ended April 7, according to a Bloomberg survey before an Energy Information Administration report Wednesday.

Nationwide inventories have expanded by about 56 MMbbl since the start of this year.

Oil-market news: Compliance among the 11 OPEC members bound by the deal rose to 104% in March, as the United Arab Emirates moved closer to its ceiling, Venezuela delivered its full promised reduction, according to the group’s monthly report. Oil prices of $60/bbl over the next three years and $70-$80 next decade will be roughly enough to balance the market, Ibrahim al-Muhanna, a former senior adviser to Saudi oil minister and now an independent consultant, says in prepared speech remarks. Volume in WTI call options, which give the holder the right to buy crude in the future at a set price, surged on Tuesday to the highest since March.

More than 61,000 contracts of July WTI crude $57 call options traded as of 5:19 p.m. in New York, a record high for the contract.

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OIL AND GAS REPORT

OIL AND GAS REPORT

MOVING INTO THE FIELD Billionaire creates BHP-style Indian resources major

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nil Agarwal has sealed the merger chief executive officer of Vedanta, said of his mining and energ y in the statement. The firm will continue businesses in India, creating a BHP to focus on remaining a low-cost and B i l l i t o n L t d . - l i k e r e s o u r c e s low-debt operator, he said. conglomerate, even as a recent Agarwal’s fortune has been built on a investment in Anglo American Plc series of ambitious acquisitions: In raises questions about how far the 2001, he bought control of then billionaire’s ambitions stretch. government-owned Bharat Aluminium Vedanta Ltd. combined with unit Co. in one of the first tests of India’s Cairn India Ltd. on Tuesday and fixed efforts to offload state holdings. He April 27 as the record date for followed with another government determining the list of the latter’s entity, Hindustan Zinc Ltd., in a deal shareholders who will be allotted stock that drew the attention of the nation’s in the parent company, according to a t o p i nve s t i g a t i n g a g e n c y. H e joint statement. Vedanta will offer successfully bid for what was India’s minority shareholders of oil producer largest iron ore producer Sesa Goa Ltd. Cairn India one equity share and four in 2007 and for Cairn India in 2010, redeemable-preference shares with a despite having no oil and gas face value of 10 rupees each as part of experience. the deal agreement.

Last year, Anglo American was said The merger gives shareholders a to have rebuffed informal approaches company with a diverse portfolio from the billionaire to discuss ideas encompassing iron ore, bauxite, including a combination with aluminum, power, oil and gas that has the ability to ride out commodity cycles. Agarwal, a self-made billionaire, recently surprised the mining industry by becoming the second-biggest shareholder in Anglo American through an unusual deal that led analysts to speculate he might be planning to force a break up of or a merger with the century-old miner.

“This merger will increase the appeal of Vedanta Ltd. to global investors as it simplifies the structure and increases the size and free float of the company,” Tom Albanese, Anil Agarwal 26

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Hindustan Zinc Ltd. The Vedanta-Cairn combine was proposed by Agarwal in 2015, but delayed after Cairn shareholders held out for a better deal, which was offered last year.

It will allow India’s most-indebted metals company after Tata Steel Ltd. to access Cairn’s cash pile, which stood at 260 billion rupees ($4 billion) at the end of December. Vedanta’s debt at the time was 650 billion rupees, while Cairn is debt-free.

“They are under pressure because of the heavy debt and the merger is planned only because of this,” said Kishor Ostwal, managing director of CNI Research Ltd., an equity research provider in Mumbai. The strong commodity cycle has benefited the group and improving raw material prices will give them a further advantage, he added.

Vedanta shares have nearly tripled in the past year, leading gains among India’s 100 largest companies. It advanced in March after unit Hindustan Zinc announced a special dividend of about $2.2 billion, of which the parent will get about $1.4 billion. The dividend payout will cover 68% of Vedanta’s debt maturities in the fiscal year ending March 2018 and alleviate near-term refinancing risk, according to Moody’s Investors Service.

“The stock looks very interesting and our bias is positive,” Ashish Chaturmohta, head of derivatives and technicals at Sanctum Wealth Management Ltd., said by phone. "The dividend mostly is going to go for debt reduction and so will the cash with Cairn," he added, saying the stock can move up further.

Shares of Vedanta climbed 2.6% to 259.25 rupees in Mumbai on Wednesday. The merged company will have a market-capitalization of about $15.6 billion and a higher free float of shares of 49.9%, according to Tuesday’s statement.

Vedanta’s 6% 2019 dollar notes rallied 42% in the past year as the company reduced its leverage and strengthened prospects for repayments with dividends.

COUNTRY ON THE EDGE No easy fix for Venezuela oil as production declines

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turnaround for Venezuela’s oil industry, the lifeblood of the South A m e r i c a n c o u n t r y ’s a i l i n g economy, would take at least two years under the best of circumstances.

Under business as usual, it might be virtually impossible.

That’s the message from analysts who say that government intervention at the state-controlled oil company, Petroleos de Venezuela SA, has chased away much of the expertise needed to boost production that’s fallen 16% since President Nicolas Maduro took office four years ago.

While opposition to Maduro gains new momentum following a failed attempt to oust him last year, any hope of reversing Venezuela’s decline as an oil supplier would take more than his political opponents eventually getting their way. The country would have to settle debts with oil-service providers, fix fraying infrastr ucture and, potentially, get foreign companies to operate some fields.

"You first have to stabilize production, which could take at least 12 months in the best of circumstances," Luisa Palacios, senior managing director at Medley Global Advisors LLC, said by telephone from New York. "I think it will take another year before you will start to see an increase in production."

Venezuela faces a major test this

week, when the state-controlled oil company, known as PDVSA, is slated to repay more than $2 billion in debt obligations. While the oil producer has pledged to honor its debt, and said it’s already transferring coupon payments for other bonds that mature in 2027 and 2037, the country is undergoing a severe cash crunch.

PDVSA declined to comment and the oil ministry didn’t immediately reply to calls and an email seeking comment.

Growing unrest Maduro’s opponents have taken to the streets in recent days after the country’s top court tried to quash the oppositioncontrolled congress. They are calling for authorities to hold fresh elections and purge institutions of socialist party loyalists. A nationwide protest on April 19 “will be the mother of all

Venezuelan President Nicolas Maduro

mobilizations,” opposition leader Freddy Guevara said at a press conference.

One of the founding members of the Organization of Petroleum Exporting Countries, Venezuela nationalized its oil industry in 1976. Foreign companies were invited back to the country in the 1990s to help develop heavy crude deposits in the Orinoco Belt. But the government later increased PDVSA’s share of joint ventures and eventually seized the fields of companies including Exxon Mobil Corp. and ConocoPhillips.

Crude output, which provides about 95% of the country’s foreign currency earnings, has yet to fully recover from a general strike in 2002 and 2003 that was aimed at overthrowing late President Hugo Chavez. Chavez responded by firing more than half of the staff of PDVSA and ordered it to direct a greater share of its income to social programs.

Engineer exodus "The people with knowledge about the fields have left," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mass. "A big question if there were a change in government would be how many engineers will come back. Most have settled elsewhere, so probably just a sprinkling would return."

If the service providers and at least some of the former workers were to return, they could provide an increase of perhaps 500,000 bopd in as little as three months, according to Lynch.

For any further improvement, he said, “they will need to get people to invest in the oil industry, which will take changes to the energy law and the replacement of some people at both the company and ministry. Such an effort could take three to five years before you would see any impact in output."

Production decline Venezuelan oil production should drop below 2 MMbpd by the fourth quarter and average 1.9 MMbbl in 2018, according to Michael Cohen, head of energy commodities research at Barclays Plc in New York. Apart from the temporary collapse in production during the 2002-2003 strike, that would

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