Ced magazine november 2016 edition sundaycdr

SPECIAL OIL AND GAS REPORT: OIL OUTPUT SURGE PILES PRESSURE ON OPEC AS IEA WARNS NOVEMBER 2016

SPECIAL FOCUS

BREAKING NEW GROUNDS

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MITSULIFT NIGERIA’s “ Mitsubishi Elevators has been termed the fastest elevators in theworld with superior quality

Incorporating OIL AND GAS REPORT

R E V I V I N G N I G E R I A

S E C O N O M Y Nigeria’ No. 1 Development Professional Journal

Engineers and Engineering could make the big difference in getting Nigeria out of recession - Engr. Otis Anyaeji, President NSE

PERFORMANCE REWARDED

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Powered by It isn’t surprising. Some of the World’s finest, innovative performers and contributors to the growth of Nigeria’s infrastructure sector have been rewarded graciously.

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Nominate the Integrity Driven Performer. Log on to www.cedmagazineng.com; E-mail:cedmagazine@gmail.com

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E VENT

REWARDING EXCELLENCE All Is Now Set For Heal The Land/Bridge Builders Award

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he Chief Executive Officer of the Love to the world initiative, Ms Josephine Abraham, also known as “Anumbor’’ has said plans have been concluded in organising one of the biggest events of the year that would be talk of town for a very long time.

She said that the purpose of the award was to portray the benefits of living together as one Nigeria.

Abraham said the award was also aimed at celebrating patriotic and detribalised Nigerians and states aimed at building one big peaceful Nigerian society with people of great future and happy people who were self-confident and live together in harmony.

‘Its vision is to break barriers and to make Nigerians realise that they need one another, no matter the class. It aims to build an unconditionally loving society by utilising dramas, music, talk shows, motivational engagement and counselling.

Earlier, the National Orientation Agency (NOA) also commended “Love to the World Initiative’’ on its preparations to honour some distinguished personalities in the country.

Mr Musa Chantu, the director of Orientation and Behavioural Modification of the Agency made the

Ms Josephine Abraham

commendation at a news conference on Thursday in Abuja.

Chantu said NOA, which is in collaboration with Love to the World Initiative, supports the group’s move to award some Nigerians with the “Heal the Land/Bridge Builders Award”, adding that it was a step in the right direction which could help in moving the country forward.

He said “we are in support of the objectives of the Heal the Land award because it is an initiative to honour Nigerians who have distinguished themselves in their different endeavours to the nation and humanity.

“We want to take away our attention from the negative scenario and stories about our country to something that is positive, thus the reward to the good among us a good step.

“With such moves, we can truly get the change that we desire; you are all aware that the president recently launched the “Change Begins With Me’’ campaign; change is no longer a slogan of a political party but a government programme for attitudinal change for us to change as a nation from where we are to where we want to be.

“No one is perfect but you can see the good in a person and bring it out in order to encourage him or her.”

The event seeks to remedy the undeniable feeling of insecurity, discontent and hopelessness that has resulted in violence, destruction of lives, property and infrastructure as well as lack of religious and ethnic tolerance.

The programme also aims to appeal to the conscience of every Nigerian irrespective of tribe, religion, political affiliations and status to change from selfishness to selflessness, and contribute from their different spheres of influence to the progress of Nigeria.

The event is put together by the National Orientation Agency (NOA) in collaboration with, Love to the World Initiative and focuses on fighting against violent acts in Nigeria and environs especially as the country continues to boil with ethno-religious sentiments. It has promised to be one of a kind.

REVIVING NIGERIA’S ECONOMY Engineers and Engineering could make the big difference in getting Nigeria out of recession - Engr. Otis Anyaeji, President NSE

12 TRANSPORTATION BOOSTING RAIL SYSTEM The socio-economic development of any country is usually measured by the effectiveness of its transportation system.

WATER TIMES ADDRESSING WATER ISSUES Nigerian government launches PEWASH to tackle water issues

HOSPITALITY

Stehlik adds that they have rolled out the upgrades with minimum fuss - the hotels are operating as usual with all staff and g eneral manag ers remaining in place. The group is also committed to training and empowerment of local Nigerians and significant social investment with their BONangels platform that is focused on supporting local communities through charity drives and events.

Industry stalwart and familiar face to the African hospitality industry, Bernard Cassar, Director of BON Hotels International West Africa,

says, "With many larger groups exiting their business interests in Nigeria, we believe that now is the time to support

Dignitaries at the launch

46 | www.cedmagazineng.com Novemeber 2016

the country that has given us decades of success and we will continue to add value to the local hospitality industry, our guests, our staff, suppliers, the communities in which we serve, and of course our owners."

With nine hotels across five cities in Nigeria, and the potential of 36 states with their own cities and t ow n s, N i g e r i a h a s e n d l e s s opportunities. Together with new acquisitions in East Africa - in Uganda and Ethiopia - and continued g rowth prospects throughout the continent to add to their South African and Namibian portfolio, the African sky is the limit!

7 BREAKING NEW GROUNDS MITSULIFT NIGERIA’s “ Mitsubishi Elevators has been termed the fastest elevators in the world; with speed of 18m/s recorded in China; they are of very high quality and also has the edge of prices over competitors in Nigeria market” TonyRahi says proudly

5 THE ROLE OF PRIVATE MORTGAGE INSTITUTIONS IN CREDIT PROVISION

9 THE HOUSING CHALLENGE Former federal minister, Dubem Onyia question Nigeria’s housing policy www.cedmagazineng.com November 2016 | 3

HOSPITALITY

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ACCESS DAKOTA Trump win revives Keystone hopes, boosts Dakota Access outlook OIL PRESSURE Oil output surge piles pressure on OPEC as IEA warns on price POWERING AFRICA Amid policy angst, US energy diplomat points to bipartisan support for powering Africa MINING BANKING ON MINING

BON Hotels International West Africa Directors and Management Bernard Cassar, Grant Gillis, Guy Stehlik, Paul Umoh, Pieter Bekker and Otto Stehlik at BON Hotel Stratton Asokoro.

Nigerian mining industry and Asian tigers

HOSPITALITY BON Hotels hosts official launch in Nigeria, showcasing nine hotels across five cities

38 MINING INVESTMENT NIGERIA Mining: Nigeria woos foreign investors with three years tax holiday, others

34 INNOVATION LEADERS NEED TO SLOW DOWN TO SPEED UP 46 ORGANISATION AND PEOPLE A LEADER IS THE CAPACITY KEEPER Do your people need to humblebrag about how busy they are in order to get attention?

41 INFRASTRUCTURE FIXING THE DEFICIT Nigeria requires $93bn to fix infrastructure deficit ROADMAP TO POWER Power Sector Roadmap Is On Course - Fashola

4 | www.cedmagazineng.com November 2016

BON Hotels hosts official launch in Nigeria, showcasing nine hotels across five cities

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7 ESVARBON INDUCTS NEW MEMBERS Elder Esv. William Odudu tasks new board on professionalism

BOND MAKES A BOLD ENTRY ON Hotels, a hospitality company that owns, manages and markets hotels throughout Africa, hosted their official launch in Nigeria, at BON Hotel Stratton Asokoro in Abuja, on 27 October, attended by VIP guests, members of the press, dignitaries, politicians, airline executives, hotel owners, stakeholders and government representatives. BON Hotels has seen phenomenal growth since its inception in 2012 with hotels across Africa including South Africa, Nigeria, Namibia, Ethiopia and Uganda, and is primed for significant expansion throughout the continent.

The West African arm of the group, BON Hotels International West Africa, which oversees operations in Nigeria, is spearheaded by a formidable team.

Founder of Protea Hotels and the doyen of African hospitality, Executive Chairman Otto Stehlik, Bernard Cassar, ex Africa Director for Protea Hotels who pioneered the expansion of Protea Hotels in Nigeria over the past 18 years, as well as Pieter Bekker, ex Protea Regional Director in Nigeria, and Director responsible for operations, who has lived and worked in Nigeria for

over 10 years fostering relationships with hotel staff and owners.

The final board member is BON Hotels' founder and CEO, Guy Stehlik, whose entrepreneurial nature and perceptive commercial ability has been the firm foundation of his success and for the strategic development of BON Hotels and its continued expansion throughout all of Africa.

BON Hotels is a strong contender in the African hotel management space.

"With Nigeria being more than ready for tourism and economically viable the powerhouse of Africa, she offers huge potential in the hospitality landscape," Guy Stehlik explains. The company offers expertise of an international standard in their approach to hotel management, property openings, new builds or the upgrade of existing properties, with the specific needs of hotel owners front of mind.

BON Hotels has been embraced for its fresh perspective in the African hospitality sector.

Gregory Ozegbe, Chairman of Africa Alliance Group, who is engaged in a joint venture agreement with BON Hotels on new projects, shares the

vision for Africa. "It is our primary focus and we are positioned with the support of our shareholders and strategic partners across the world to embark on the most ambitious expansion in the history of any country in Africa, to build first class 4 and 5 star international standard hotels in thirtyseven (37) locations in Nigeria, and in at least thirty (30) locations in countries in Africa over the next 10 years."

Over the past year, BON Hotels has undertaken an aggressive rebranding and refurbishment campaign of their hotels in Nigeria, with creative input from Delta Design Studio, a specialist hospitality interior design and procurement company. The hotels will be positioned as international 4-star, boutique-style, full-service hotels, at affordable prices, offering personal, friendly and efficient service that is synonymous with BON Hotels' operating standards.

The properties include: 1.

BON Hotel Grand Towers 2.

BON Hotel Stratton Asokoro, refurbished & rebranded 3.

BON Hotel Abuja, refurbished & rebranded 4.

BON Hotel Delta 5.

Protea Hotel Ikeja, refurbished & operated by BON Hotels 6.

Protea Hotel Victoria Island, refurbished & operated by BON Hotels Three hotels under construction and due for completion in 2018, are 7.

BON Hotel Apo 8.

BON Hotel Ekiti 9.

BON Hotel Owerri Commenting on the refurbishment plan, Guy Stehlik says, "Our strategy is to be competitive in our offering, service delivery and price - to create a four-star standard international Nigerian hotel chain, a tourism circuit if you will that caters to all markets - the inter-regional businessman, the international and Nigerian local traveller, tourists and the leisure sector, with alternatives, designed to meet their requirements."

? www.cedmagazineng.com November 2016 | 45

ORGANISATION AND PEOPLE

In association with Strategy + Buisness

A LEADER IS THE CAPACITY KEEPER Do your people need to humblebrag about how busy they are in order to get attention?

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hen you think of an effective leader, several characteristics likely come to mind: confident, capable, adaptable. And if you read my last three blog posts, you will likely also think of someone who can recognize his or her own demand-to-capacity gaps, is selective about the projects he or she agrees to take on, and is able to tune into the subtle hunches that can reveal the elusive and important challenges that we're often too busy to notice.

But as an effective leader, it's also imperative to act as your team's capacity keeper, or the shepherd of the time, energy, resources, and focus that your employees have to devote to their essential work. We do this to avoid what I call the manager's dilemma, the phenomenon that occurs when the gap between the demands you face and the resources you have available to meet them widens to the breaking point.

When an organization's culture is shaped by unreasonably high demands that aren't materially supported with adequate resources - and there are no vigilant capacity keepers - prolonged capacity gaps cascade throughout an organization and hurt individuals, teams, and, ultimately, the bottom line.

Chronic capacity gaps increase stress and reduce well-being for individuals who must perfor m against unreasonable expectations in work environments marked by fast-changing, unclear, often conflicting priorities.

There are also extremes of activity that produce work-family imbalances and the conditions for disengagement and burnout.

The second-tier effect of these capacity g aps is a protracted disengagement in which your people are less likely to innovate and seek creative solutions, invest time in developing others, and meet more challenging goals. They become more likely to blame others for problems and 44 | www.cedmagazineng.com November 2016

Jesse Sostrin stay in the job even after mentally quitting. Think this is an issue you don't need to address? Not likely. According to a Gallup study, about 70 percent of U.S. workers are "not engaged" or "actively disengaged" from their work, meaning they are emotionally disconnected from their workplaces and are less likely to be productive.

Further, when your team checks out, the bottom line takes a hit. Employee disengagement costs the U.S. economy as much as US$350 billion annually, according to Gallup.

But how can you as an effective leader keep your team energized and wellfueled, and prevent them from checking out? Here are several tactics: 1. Take a real-time pulse check. At any time you can take a moment to assess your, your team's, or even your organization's margin movement, or how much capacity remains for the work at hand, by asking yourself three simple questions. If your answers are yes, the downward tilt toward the zero margin effect has begun. " Have the demands on your people increased over the past several days (weeks/months/quarters)? " Are demands likely to stay elevated or continue to increase?

" Do you lack the time, energy, and other resources to adequately address the demands on your people?

2. Look for evidence of capacity gaps in your culture. Do your people need to humblebrag about how busy they are in order to get attention? Are you rewarding people for doing more with less, rather than doing better with fewer yet more important things? Are there unwritten rules that make it all but impossible for people to say no without career-limiting implications?

If you're unsure, go deeper and ask questions of your team, and then listen to the way people talk about their work.

Specifically, talk to them in ways that elevate their own awareness of selfdefeating habits that take over when they're overworked.

When you ask simple, honest questions - How have your demands shifted lately? How have you been challenged to meet demand with your existing resources? What patterns emerge when you work in a capacity gap for a prolonged period? - you'll get honest, often powerful responses.

With healthy routines to cope with the normal pressures of work, stressful periods are manageable. But when stress goes from the good kind (a jolt of urgency to make it happen when the pressure is on) to the bad kind (unending stress without a means to successfully cope), it can sap your already limited margin and lead you deeper into the dilemma, triggering burnout and then checkout.

3. Stop trying to solve the problem manage the response better. There will never be enough time, energy, resources, and capacity. Structural forces in the economy have combined to squeeze more productivity while providing fewer resources. Because capacity-to-resource gaps are baked into the role of leaders, the wise response is to manage the edges of the dilemma. These are the small choices that we're often too busy to pay attention to that actually compound the issues.

Jesse Sostrin is a director at PwC’s U.S. Leadership Coaching Center of Excellence. He is the author of The Manager’s Dilemma (Palgrave Macmillan, 2015). He writes and speaks at the intersection of individual and organizational success.

ROAD TO RECOVERY

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Too many potential physicists and engineers spend their careers shifting money around in the financial sector, instead of applying their talents to innovating in the real economy, NSE President Engr. Otis implied at the briefing.

herever we look these days, on the street and in our homes, people speak the same subject – recession: what is happening to the economy? How has a country that has benefited – perhaps more than any other African countries from economic boom, technological innovation, vibrant human capital suddenly a strain of economic difficulties that even the greatest economists are finding it hard to understand what went wrong. Why the political class will blame one another for the state of the nation today and forget that the majority of Nigerians never existed at all.

It is true that a certain anxiety over the forces oil prices and globalisation and free trade, but these are scenarios that should help the nation move forward, but instead, we are at a crossroad as to where our economy is headed, at least under the present regime of government Muhammadu Buhari. Nigerians are truly not happy with government.

Much of this discontent is driven by fears that are not only fundamentally about politics. It is about the economy.

It is against the backdrop of the current anxiety and discontent that mad the Nigerian Society of Engineers, probably the largest technically recognised body in Nigeria to break its silent and, at a world press conference in Abuja recently led by its president Engr. Otis Oliver Anyaeji enumerated various strategic initiatives the federal government could implement to ensure the country come out of the recession, if implemented.

No doubt, some of the discontent about the state of the nation is rooted in legitimate concerns about long-term economic forces. Decades of declining productivity growth and rising inequality have resulted in slower income growth for low- and middle-income families. Globalisation and automation have weakened the position of workers and their ability to secure a decent wage. Too many potential physicists and engineers spend their careers shifting money around in the financial sector, instead of applying their talents to innovating in the real economy, NSE President Engr. Otis implied at the briefing.

In a recent article by President Barack Obama of the United States of America; l quote: “A force for good The profit motive can be a powerful force for the common good, driving businesses to create products that consumers rave about or motivating banks to lend to growing businesses. But, by itself, this will not lead to broadly shared prosperity and growth. Economists have long recognised that markets, left to their own devices, can fail. This can happen through the tendency towards monopoly and rent-seeking that this newspaper has documented, the failure of businesses to take into account the impact of their decisions on others through pollution, the ways in which disparities of information can leave consumers vulnerable to dangerous products or overly expensive health insurance.

More fundamentally, a capitalism shaped by the few and unaccountable to the many is a threat to all.

Economies are more successful when we close the gap between rich and poor and growth is broadly based. A world in which 1% of humanity controls as much wealth as the other 99% will never be stable.

Gaps between rich and poor are not new but just as the child in a slum can see the skyscraper nearby, technology allows anyone with a smartphone to see how the most privileged live. Expectations rise faster than governments can deliver and a pervasive sense of injustice undermines peoples' faith in the system. Without trust, capitalism and markets cannot continue to deliver the gains they have delivered in the past centuries.”

According to Engr. Otis Anyaeji, government need to rejig its cabinet and invest in infrastructure; make some key appointment that will drive infrastructure growth and create jobs for the people.

That for us at CED Magazine, we believe will help the economy and get us out of the recession In this special November 2016 edition we also present a specila focus on Mitsulift Nigeria, the representative of Mitsubishi Elevators in Nigeria with their unique offerings in terms of quality, durability, affordability and value addition.

This is a must read edition, as always. www.cedmagazineng.com November 2016 | 5

INNOVATION

NEWS NOTES REAL ESTATE

now" catalyzes action; "build the right thing. Then build it the right way" helps leaders focus on discovery rather than over-refining a nascent concept; and "create feedback loops with our customers" encourages executives to get out of their corporate bubble to engage with customers.

4. Create psychological safety.

Leaders at all levels need to embrace risk. To do that, they must feel safe among their colleagues when they share ideas. Further, there needs to be an understanding of people's strengths, weaknesses, fears, and aspirations in order to get them working productively.

O'Reilly explained that while four weeks seems like a long time, it really is not in terms of building a highly functioning team engaged in new creative activities. As Google validated,

a high-performance team needs to be comfortable taking risks and even failing in front of each other.

5. Introduce design thinking.

Coaching in the principles of design thinking is also essential - this humancentered approach to innovation draws from designers' toolkits. The method focuses on the people whose problem you are trying to solve, then the technology you'll use to solve it, and finally the business model that will make it profitable. In legacy businesses, one of the last two steps often comes first, which can drastically narrow the possibilities for creation.

6. Commit to keep it going. No matter how successful the off-site experience, enthusiasm can quickly dissipate after reentry into day-to-day

business activities. To maintain momentum, O'Reilly asks participants to commit to a certain amount of time each week to continue to develop the new innovations. "You have to have a cadence to meet and work on it," he said. Otherwise, even the best new ideas will die.

Reinvention is never easy. It requires a willingness to look beyond current success - sometimes contemplating the demise of highly profitable products and services. Leaders must have the courage to ask hard questions and open their minds to imagine new possibilities.

The alternative? Ask the many companies that have fallen off the Fortune 500…or worse.

Eric J. McNulty is the director of research at the National Preparedness Leadership Initiative and writes frequently about leadership and resilience

INVESTMENT

OPPORTUNITY AFRICA Electrolux to acquire South Africa’s Kwikot Group

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wedish appliance manufacturer Electrolux has announced that it will acquire South African water heater producer Kwikot from RMB Corvest and other parties.

The price tag for the deal is not known.

Electrolux says the acquisition broadens its home comfort product range, while also offering further growth opportunities in Africa.

The privately owned Kwikot Group, with its 800 employees, is based in Johannesburg, which is also the location for its production facilities and main warehouse.

Kwikot products, which include large capacity electric and solar water heaters, heat pumps, kitchen sinks, consumables and accessories, are sold primarily in South Africa and neighbouring countries.

Electrolux currently supplies small and medium capacity water heaters in Northern Africa.

“Acquiring Kwikot Group will provide a step change for Electrolux in Southern Africa, through the complementary product offering, access to important customer segments and by adding a strong distribution and service network in the 6 | www.cedmagazineng.com November 2016

region relevant for our other product categories,” says head of Electrolux Major Appliances Europe, Middle East and Africa Dan Arler.

“The acquisition fits perfectly with our strategy to drive profitable growth. It broadens the Electrolux offering and expertise for home comfort in areas such as indoor air quality and water treatment.

We will now have a full range of water heating products supporting our continued growth and profitability.”

Electrolux currently operates in South Africa mainly by selling small and major appliances under brands such as Kelvinator, AEG and Electrolux.

Beyond supporting Electrolux’s strategy for growth in Africa, the acquisition of

Keith McLoughlin

Kwikot also enables the company to develop South Africa as a regional manufacturing hub, notes the company.

Electrolux says it is “planning to build on Kwikot’s already excellent existing manufacturing facilities. This will directly contribute to enhancing South Africa’s industrial competitiveness and export potential”.

It also notes that Kwikot’s current management will remain with the business, adding that the proposed merger is expected to result in zero net job losses.

“We look forward to investing in Kwikot’s existing operations and introducing our world-class Electrolux manufacturing system here,” said Electrolux Major Appliances Europe, Middle East and Africa senior VP Ian Banes.

“We are excited about a next chapter in Kwikot’s growth story,” adds Kwikot CEO Pieter Malan.

“We have had an excellent, supportive relationship with current shareholders and we relish the opportunity to cooperate with Electrolux given their excellent track record of investing for growth. Together, I am convinced we will make good on the opportunities ahead of us to the benefit of our customers, employees and suppliers.”

The acquisition is subject to regulatory approvals being obtained before June 30, 2017. www.cedmagazineng.com November 2016 | 43

INNOVATION

LEADERS NEED TO SLOW DOWN TO SPEED UP

resources - and they are also the most likely to squelch new ideas if they haven't been involved in discovery and development.

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O'Reilly identified six principles of effective self-disruption.

1. Allot enough time. O'Reilly takes teams of senior executives out of their offices for full-time innovation immersion experiences. They create tangible, and sometimes radical, new business models or product and service offerings for four weeks at a time. Yes, that's right - a month. I am constantly pressured to make my seminars shorter, so I was astounded to hear someone insisting on prolonged, focused executive attention. "A one-day workshop or a short education course has two fatal drawbacks," O'Reilly said.

"Participants learn theories but don't have time to exercise them, and people tend to come in in love with pre-baked ideas rather than exploring completely new terrain. The problem with transformation is never a lack of ideas.

It's lack of behavior change. That simply takes time, deliberate practice, and multiple iterations of learning and reflection."

t has never been more important for leaders to learn from and respond quickly to economic, political, and competitive changes. In a world where change is constant, that response must be rapid and inspiring.

Some of the changes business leaders face, such as demographic trends, can be predicted reasonably well. Others technology, for example - are much more difficult to anticipate. In a 2015 Fortune survey of CEOs, almost three quarters responded that the "rapid pace of technological innovation" was the greatest challenge to their companies.

It's not a matter of if but when your assumptions about your market will be upended. How can leaders learn to adapt quickly to new knowledge and trends - to disrupt themselves before others do? Speed and agility in learning are critical. How fast is fast enough?

According to Barry O'Reilly, coauthor of Lean Enterprise: How High Performance Organizations I n n ova t e a t S c a l e, yo u r t r u e competition is moving like lightning "three-to-five iterations ahead" of what you are aware of.

That may be a traditional rival or an upstart that's just a faint blip on your radar. And it's as true if you're operating in tech or manufacturing as it is if you're battling global terrorism. Development cycle times are shortening, as are customer adoption trends and windows of competitive advantage, O'Reilly told me.

This fits with what I increasingly hear and experience in my work: Executives and government officials are now speaking in terms of an infectiousdisease evolution model - learning through constant and rapid iteration rather than linear approaches to innovation.

Yet most organizations are still built to create and preserve stability through their hierarchies, approval processes, and even hiring practices that emphasize "cultural fit." Existing 42 | www.cedmagazineng.com November 2016

DEVELOPING STORY

In association with Strategy + Buisness

Eric J. McNulty

"The problem with transformation is never a lack of ideas. It's lack of behavior change.” products and business units have powerful constituencies that can swat down new ideas they see as threatening.

Clayton Christensen's famous theory of disruptive innovation has been illustrated numerous times by incumbents slain by competitors initially dismissed as not good enough.

In fact, legacy companies sometimes welcomed that competition because it allowed them to off-load low-margin customer segments and concentrate their energies on more lucrative opportunities. That is, until they were fully displaced by insurgents.

I asked O'Reilly what he's learned about what fuels and what confounds large organizations that try to disrupt themselves. He told me that the biggest issue is that while C-level teams often espouse the need to transform, they generally mean everyone but them.

"The problem is," he said, "those are the very people who need to transform the most." They are the people who determine strategy and allocate

2. Go to a different physical space.

Familiar surroundings reinforce traditional thinking, according to O'Reilly. And the office is full of distractions: chats with colleagues in the hallway, the temptation to duck into one's office to catch up on email, and the like. While O'Reilly has taken some teams halfway around the world, more often he uses a local entrepreneurial coworking space where executives will experience more vibrant energy and attitudes while still being able to go home for the night.

3. Define the principles of working together. Senior executives are often more attuned to analyzing and approving than to doing. That mind-set has to change for transformation to gain momentum. O'Reilly says that executives need to embrace these principles: "Think big, learn fast, start

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Oando Wings - Ozumba Mbadiwe Avenue - Lagos

BREAKING NEW GROUNDS MITSULIFT NIGERIA’s “ Mitsubishi Elevators has been termed the fastest elevators in the world; with speed of 18m/s recorded in China; they are of very high quality and also has the edge of prices over competitors in Nigeria market” TonyRahi says proudly

E

levator Engineering Services in Nigeria is consistently treading the ropes of success with the emergence of healthy competition, excellent installation and maintenance service delivery of the equipments by suitable players within the industry. In recent times, variants of these upward transport equipments have flooded the Nigerian construction market; thereby boosting the general standard outlook of our buildings.

Mitsulift Nigeria, one of the prominent elevator engineering services providers, and the sole brand representing Mitsubishi building movement brands in Nigeria, is known for excellence in supply, installation, engineering and maintenance of these transport systems.

With the Headquarters in Lebanon, Mitsulift operates in five other countries including Syria, Cyprus, Jordan, Greece and Ghana. It was established in Nigeria in 2010, and has

been at the forefront since 2014.

According to Mr. Tony Rahi, the General Manager for Mitsulift Nigeria, the company is extending its services to other major metropolis of Nigeria – Abuja and Port Harcourt. He commented that excellence in service delivery is their priority, even as a top

Tony Rahi, General Manager, Mitsulift Nigeria

notch elevator brand. “We are not here to sell elevators or to do trading, we are service providers and we seek a long term relationship with our customers by meeting and exceeding their requirements and deliver to them a memorable experience”. Mitsulift also deals in the supply and installation of escalators, revolving doors and window cleaning systems.

In terms of manpower, Mitsulift is constantly on the increase to improve upon its installation and maintenance relationship with clients. The company which started with ten employees and two expatriates now boost of almost ninety employees and fifteen expatriates. Its installation services are top notch because the company ensures that field officers get constant and adequate training at the headquarters from time to time to ensure better service delivery at all times.

“Mitsubishi Elevators has been termed the fastest elevators in the world; with a speed of 18m/s recorded in China; they are of very high quality and also has the edge of prices over competitors in the Nigerian market.”

Tony Rahi says proudly.

For high rise buildings, the elevators are the best option, as the escalators are mainly effective for large expanse buildings on low levels, such as large malls. This is because the escalators can take more people traffic at once than the elevators.

Though presently, Nigeria is not an environment filled with high rise buildings, but Tony Rahi believes that there is a great potential for vertical building transport services companies as the construction environment is accommodating more international building standards by the day, especially with the conception of the new Eko Atlantic city. He describes Mitsulift Nigeria as an organization building for the future.

Apart from high rise buildings, he expressed that even few floors buildings are market potential sources for Mitsulift, as the common lifts can

? www.cedmagazineng.com November 2016| 7

DEVELOPING SPECIAL FOCUS: STORY MITSULIFT NIGERIA

TRANSPORTATION

Eko Atlantic City

also be installed. “Mitsulift Nigeria has a joint venture with Mitsubishi Electric Japan which focuses mainly on end service delivery. “The maintenance of our installations is quite important for us; that is probably the reason for our edge over competitors, because we do 24 year-round preventive visits of maintenance as soon as we sign maintenance contract with the clients instead of the usual 12 visits done by other elevator companies. This way, we reduce the possibility of having a breakdown of our equipments. Our products last longer because of the constant check up services we render as preventive maintenance”.

Tony Rahi raises his hopes high in making Mitsulift Nigeria a bigger branch than the current headquarters in Lebanon which has been in existence for more than 32 years. He believes that Nigeria has the greatest economic power in Africa, and the impact of Mitsulift Nigeria should be felt on other branches.

Mitsulift Nigeria's commitment to elevating standard of service excellence extends beyond the engineering and installation of the building moving systems. It is a long term experience that continues after the building moving systems are delivered.

8 | www.cedmagazineng.com November 2016

Millennium :Tower, Lagos

Eko Tower 2 - Lagos

England in 1825. The Americans took up the challenge and the Baltimore and Ohio railroad in the United States of America started operations in 1930.” The idea and plan to establish railways in Nigeria first came up in 1879. Eventually in 1895, Mr. Chamberlans, the British Secretary of State, for Colonies, sanctioned the construction of a 1067mm gauge railway from Iddo (Lagos) to Otta (Ogun State).

The track covered a distance of 32 k i l o m e t r e s. H owe ve r, t h e a c t u a l construction work could not commence until 1898. From then on, the rail line has been extended to major cities in the south and the northern parts of the country including lbadan, llorin, Jebba, Kano, Zaria, Bauchi, Port Harcourt, Enugu, Makurdi, Minna, among others.

When compared with other modes of transportation, rail transportation is of great importance and advantageous to the Nigerian society and the world as a whole.

The most prominent of this importance are as follows: Its high haulage capacity.

The single trip haulage capacity of trains is very high and can be higher than that of any road vehicle, aeroplane or ship. This makes rail transportation to be the best means of mass transit. In terms of safety, rail transportation is safer than road transportation and less risky than water and air transportation. This is because trains are not known to be involved in frequent high rates of accident. An effective railway system can stimulate cash crop production and manufacture of goods for export especially in the West African sub-region.

Above all, rail transportation will aid speedy movement of bulky cargoes on long distances. This is because trains do not

have to stop in transit as often as motor vehicles. A single train can also carry, in one trip, the cargo which 10 trucks may require as many as 10 trips to carry.

Rail transport provides cheap transportation because it is cheaper than trucks and aeroplanes for transporting passengers and cargoes. That is why railways are generally preferred by companies and individuals who are transporting bulky items most especially when such items have to be moved frequently.

It is for the above reasons that the federal government needs to increase the allocation to the Nigerian Railway Corporation in order to make it possible to embark on capital projects that would enhance its services and revenue. In budgetary allocation for transport development, rail transportation should be able to get as much as road transportation.

If rail transportation is to be brought out of its present stagnation, it has to be given more or at least equal attention with other modes.

In addition, for the organisation to move

forward the present narrow gauge should be phased out and a broader one installed.

The narrowness of the railway gauge constitutes a great draw back to the modern development of rail transportation in Nigeria. Fast and safer locomotives cannot operate on railway with narrow gauge; therefore if real development is to take place in the Nigerian railway industry, the gauge of the railway network must be expanded. This should be followed by the construction of new railway to serve the country. This is because since the completion of the last rail line in Nigeria in 1964, there has been a lull.

Today, the Nigerian Railway Corporation is suffering from the lack of political will by the nation’s politicians.

What we need to understand is that transport improvement is indispensable to an acceleration of a country’s economic development. As far back as 1967, a United Nations study regarded transport as the formulative power of economic growth.

Therefore, Nigerian politicians should not lose sight of the role which a welldeveloped transport system, particularly the rail system, can play in the socioe c o n o m i c development of the country. That is the way to go in this era of diversification of e c o n o m i c dependence on oil.

MMA2 - Lagos www.cedmagazineng.com November 2016 | 41

NEWS EXTRA

HOUSING FINANCE

Infrastructure: Continued from page 36 in these PPP schemes is touted as the future of a healthy mortgage culture as the regulation from the government and access to bulk funding from diverse private sources are key ingredients for price and interest rate stability.

Most housing funds disburse funds to buyers through primary mortgage institutions, so it is important that there are adequate regulations and supervision from the CBN and the FMBN to ensure there are no bottlenecks. The goal is effective operations that link potential home owners to the funding that best suits their needs. This is an on-going process which has already started and requires continued strategic planning to overcome the years of mismanagement that have led to Nigeria's current dismal property ownership figures.

The last global financial recession showed the world how key financial institutions almost entirely funded the boom in the housing market, and the co-dependence between the two sectors. The Nigerian financial sector must learn from the successes (and the mistakes) of Wall Street, to build a society where every family has access to the credit needed to facilitate home ownership. This is a key first step to wealth creation for working and middle class families; the best way to lift any country out of poverty.

issue of ballot Proposition 53, or the “no blank cheques initiative”, at which the outcome is yet to be confirmed, placing a strain on any future construction or infrastructure work in the pipeline. The proposition will affect any future or current projects over $2 billion, including the high-speed rail if such a change in the state’s constitution is passed.

A yes outcome to such change would provide increased transparency from politicians with regards to project costs and provide increased engagement with local communities on future projects, yet will create significant problems for the construction and building industry.

Governor Brown has said to the WSJ that such changes would create “utter economic catastrophe for California”, and “more lawsuits and delays that California doesn’t need.”

With such measures in place, planned construction works would undergo significant delays. Construction firms, political and business corporations aim for future works to go ahead, and have therefore placed significant investment to oppose the initiative to prevent delays for future construction and infrastructure projects. However, parties which are currently backing the initiative have also placed investment, at which it is unclear what the end result will be.

ENERGY EFFICIENCY

France boosts African renewable energy initiative

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he France Government and the African Development Bank have signed a US6M contract for the realization of the Africa Renewable Energy Initiative.

The funds will facilitate the set up of the Delivery Unit of the Initiative to be hosted at the African Development Bank which has been working with the African Union and its associates to wholly establish it.

The agreement was signed by Ségolène Royal, French Minister for Energy Environment, and Marine Affairs, and Frannie Léautier, Senior Vice-President of the AfDB. "I truly welcome France's contribution to the AREI. I trust that this binder will be a significant catalyst for others in assisting us to arrive at our financial target as we endeavor to meet Africa's future energy needs," Léautier said.

France's input will assist in planning existing initiatives and programs for renewable energy development; make out new renewable energy development

projects; and keep an eye on priority projects of renewable energy development in Africa amongst others.

The African Renewable Energy Initiative aspires to attain 10 gig watts of new renewables by 2020 and rally the potential to produce 300 gig watts by 2030.

The Initiative will assist African states to put in place low-carbon development policies while generating jobs, perking up energy security and bringing clean, safe and cost efficient energy to the 640 million Africans who at the moment have no access to it.

It was announced during the COP21 Conference in Paris last year.

The AfDB has partnered with the African Union and its associates to fully establish the Delivery Unit.

Afar from project funding, the Initiative will assist African countries to initiate and administer policies that will give way for swift and sustainable rollout of renewables technologies, and erect institutions and systems for supporting these investments.

ENHANCING LOCAL CAPACITY Zambia to construct $175M Moto Vehicle Assembling Plant

2HP 40 | www.cedmagazineng.com November 2016

3HP

5HP

Century 21 Systems Limited 14, Shofidiya Close, Off Ilesanmi Street, Masha, Surulere, Lagos, NIGERIA Tel: 234 1 774 3404; Mobile: 234 805 5243 516; 803 305 0267 E-mail: davidcastleng@yahoo.com; www.century21systems.com.ng

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he construction of a US$175m motor vehicle assembling plant is set to commence soon in Zambia following approval by the Zambia Environmental Management Agency (ZEMA) in

assessment to ZEMA for review in regards to the proposed development of a motor vehicle-assembling plant at Lusaka South, Zambia multi-facility economic zone (LS-MFEZ).

Gonow Zambia Limited Director, Mr. Gerald Makungu confirmed the reports and said that the plant will sit on 2.5 hectares of land and is expected to open up many opportunities including business, partnership prospects, job creation and will further improve the livelihood of the citizens.

He added that the construction of the assembly plant will also help spearhead industrialization in Zambia and further enhance competition and wealth creation.

"We are very happy that we will soon start the construction of the assembly plant soon after the ground-breaking ceremony which will be conducted anytime from now. Our partners, Forland from China are currently in the country to witness the ground-breaking ceremony," Mr. Makungu said.

"We are confident that the creation of the plant will help steer the economic growth in the country. We have already engaged a contractor, Wah Kong Enterprises Limited, which is expected to employ about 70 locals in the construction phase and building will take approximately six month," he pointed out.

According to the projections, the new plant is expected to assemble 20 vehicles a day for distribution within the Southern African Development Community (SADC).

Establishment of the plant is a milestone in the development of the motor industry in Zambia, and in the Common Market for Eastern and Southern Africa, SADC and the East African Community.

Gonow Zambia Ltd boasts a flexible business mechanism of a private enterprise. At the company's plant facilities imported Semi-Knock- Down (SKD1) Vehicles will be assembled into finished vehicle units by a compliment of Zambian personnel.

September.

Gonow Zambia Limited which is a firm in Zambia is projected to start on the construction works soon. It recently submitted an environmental impact www.cedmagazineng.com November 2016 | 9

NEWS EXTRA

HOUSING FINANCE

THE HOUSING CHALLENGE Former federal minister, Dubem Onyia question Nigeria’s housing policy

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former State for External Affairs Minister, Mr. Dubem Onyia has punched holes in the federal and state governments housing policies in Nigeria saying they were designed to favour and benefit the elite.

Onyia who was speaking in Enugu at the 2016 first Enugu Housing/ Real Estate Development Forum that was organized by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), attributed the slow growth in Nigeria's housing sector on the big number of untrained and incompetent people in the sector instead of having professionals run the sector.

He added that housing is likely to remain a big challenge in Nigeria if the current policies were not changed; adding that efforts and resources should be made to take care of the needs of the poor majority that constitute over 75per cent of the population.

Onyia regretted that every time government talks about constructing a real estate, it is mainly meant for the elite and not for the low-income earners who are the majority.

"Housing projects by the Federal and State governments are meant for the 10 | www.cedmagazineng.com November 2016

elite. You don't build for the lower class people. I am happy that the Commissioner for Housing in Enugu State is here.

I want to see that by the end of this programme, the common man in Nigeria will have hope for affordable housing", he said.

Ugo Chime, the President of ECCIMA, said they partnered with Real Estate Development Association of Nigeria (REDAN) and decided to invite all stakeholders and player in the industry not only in improving housing but creating employment opportunities in the country.

Chime added that they were offering training to artisans with the support of UKAID because they are of belief that unskilled work force were major stakeholders in the housing industry.

Noting the experience of United States and South-Africa where the real estate sector contributes 65 per cent and 60 per cent respectively to their Gross Domestic Product (GDP), the President expressed optimism that housing development could save the country from recession and put her back to the path of economic growth and sustainable development.

In a related development, affordable housing in Nigeria has received a major boost with plans to launch mass housing underway.Nigeria's Minister of finance , Kemi Adeosun, has said that the new housing fund worthy N500 billion approved by the National Executive Council recently would stir economic activities and redirect the economy to the path of growth.

Mrs. Adeosun, who was responding to questions from the media in her office recently, said a mass housing plan that would make Nigerians own homes under a mortgage arrangement, would start soon in the next three to four weeks.

The minister said under the new initiative known as the "Family Home Fund", N500 billion had been set aside to create mortgages for affordable houses for Nigerians that will start with the construction of 100,000 houses every year from next year.

According to the minister, the housing fund will increase from N500 billion to N1 trillion to make it possible for the Nigerian government, through the private sector, to deliver about 400,000 houses every year through mortgages.

The mortgage, according to the minister, will be set up at a single digit interest rate of 9.99 per cent with a repayment period of 20 years, with homeowners making an initial deposit of 10 per cent.

The minister added that the low and middle-income earners would highly benefit from the housing scheme as around 70 per cent of the houses would be given out for between N2.5 million and N4.5 million depending on the type.

Mrs. Adeosun said, "We have done a lot of work around how we can bring down the cost. The tag is N2.5 million and it is a house you can move into. So, we are bringing down the cost.

"These are affordable houses in Nigerian; the scheme is going to be linked with the BVN. One house per person; so, you cannot buy the house and rent it to somebody else."

THE ROLE OF PRIVATE MORTGAGE INSTITUTIONS IN CREDIT PROVISION Vincent Okechukwu writes on the need for private mortgage institutions to provide credit for financing housing schemes in Nigeria

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ost Nigerians pay at least 80 per cent up front for major purchases, even houses and brand new cars.

With this lack of a credit culture, it is not surprising that Nigeria has one of the lowest mortgage loan rates in Africa as a percentage of gross domestic product (GDP). According to The Economist, mortgage loan rate in Nigeria was less than two per cent in 2014, compared to about 25 per cent in South Africa and four per cent in Rwanda. This has extremely negative effects on the retail market; lack of access to credit continues to stunt the purchasing power of the Nigerian consumer which inhibits growth in local production and the economy as a whole.

However, recent changes in the financial sector are aimed at enabling a larger proportion of Nigerians with an easier path to building wealth. The strengthening of primary mortgage banks (PMIs) is a key example and has been supported by other sound credit policies, including the recently launched Vehicle Credit Purchase Scheme. The new trend of providing access to credit instruments for property ownership when they are actually needed (such as

at the point of starting a family), rather than waiting until later in life, is slowly becoming the norm and is the right path to lasting prosperity for responsible, working class Nigerians.

The Central Bank of Nigeria (CBN)'s PMI recapitalisation exercise in 2014 resulted in the licensing of 32 private mortgage institutions to operate at a federal or state level, with at least N5 billion and N2.5 billion capitalisation respectively. Since then, the number of PMIs has increased to 36 and the

Babatunde Fashola, Minister of Power

policies of the CBN have expanded from liquidity ratios to increased focus on provision of funding for residential housing. These policies include the exclusion of certain financial activities from the mandate of PMIs, which formerly led to over-development of the commercial real estate to the detriment of residential developments.

The tendency of such institutions to favour trading activities that have little to do with mortgage financing, in a bid to make higher profits, have been curbed and this is a step in the right direction for widespread access to affordable mortgages.

PMIs increase private ownership of property through demand and supply side strategies. Individuals gain access to financing through tailored mortgage related accounts, such as savings accounts specifically set up to finance loans. In addition, real estate developers receive access to the mobilized capital, which is regulated by the institutions who determine the percentage of residential development in accordance with current housing needs. As these PMIs are strategically located to provide access to all six geopolitical zones, they are in an ideal position to react appropriately to the needs within their specific zones.

Private and public mortgage funds, such as the National Housing Fund (NHF), are also becoming more popular and are an important way for Nigerians to tap into funding for home ownership. The NHF is operated by the Federal Mortgage Bank of Nigeria (FMBN) and is structured in the form of contribution savings, which is the preferred format for most public and private funding schemes. Salary earners contribute a percentage of earnings on a monthly basis and are then eligible for up to a N15 million loan.

Public-private partnerships (PPPs) also fund similar schemes with low interest rates and longer repayment periods compared to commercial banks. They also tend to provide access to more funds for a broader spectrum of people as investment is sourced from different private sector funds. Growth

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WATER TIMES

TRANSPORTATION REAL ESTATE

BOOSTING NIGERIA’S RAIL SYSTEM The socio-economic development of any country is usually measured by the effectiveness of its transportation system.

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n the history of budget making in Nigeria, the 2016 Budget appears to be the most controversial. It all began with claims and counter-claims that the document had grown wings and disappeared from where it was kept. As the controversy gained momentum, two versions of the same document surfaced.

At the end of the day, the truth was known to the public – some smart government officials had tampered with the original document and completely bastardised it.

The President was enraged. An enquiry was set up which eventually led to the removal and repositioning of some top directors in the budget office.

If Nigerians thought that was the end of the story, they were mistaken. Some few weeks back, the document finally got back to the President for his assent. Many discrepancies were noticed in the document. It was discovered that the National Assembly had removed funds earmarked as counterpart fund for the coastal railway project running from Calabar to Lagos as well as tampered with several other provisions made by the executive. There was bedlam. This raised a fresh crisis between the legislature and the executive.

For the construction of the coastal railway project from Calabar to Lagos, the agreement reached between the federal government and the Chinese government which had agreed to finance the project, 38 | www.cedmagazineng.com November 2016

was that the federal government would provide a counterpart funding of N60 billion. This fund was incorporated into the 2016 budget. But the assembly members had, in their own dubious wisdom, cleverly removed this fund from the 2016 budget that was passed to the President for assent. According to the budget estimates submitted by the President to the National Assembly, there were two major rail arteries, among other rail projects, that were designed to ease transportation of commuters and goods in the eastern and northern parts of the country. They are, the Calabar-Lagos line and the Lagos-Kano line. Surprisingly, while the provision for the Lagos-Kano

Rotimit Amaechi, Minster of Transportation

rail line was left untouched, the CalabarLagos was completely removed and obliterated. Similarly, the fund proposed for the Idu-Kaduna rail project which has reached advanced stage, was reduced by N8.7 billion, a development that will certainly make it extremely difficult for the project to be completed on schedule.

Other provisions either removed or reduced drastically included that of roads, health facilities and others.

But by far, it is the issue of the N60 billion Calabar-Lagos rail line project which the lawmakers removed from the 2016 budget that has put the National Assembly members on the spot as it has portrayed them as a bunch of unpatriotic Nigerians who are merely using their exalted offices to stall an important project meant to alleviate the suffering of the people. Since the latest controversy broke out, there have been fireworks between the Senate and Rotimi Amaechi, the minister of transportation under whose ministry the rail project falls. The controversy borders on whether the Calabar-Lagos rail line was actually included in the budget before it was expunged or that a supplementary provision should be made if it was not initially included. This is a needless muscle-flexing.

The development of an effective and efficient transportation system is often regarded as very crucial to the process of the economic development of a country and Nigeria is no exception. This is so because transport in any form is essential to the execution of daily economic and social activities in any given society. The socio-economic development of any country is usually measured by the effectiveness of its transportation system.

This is because most economic policies always consider transport as an integral part of the development process of a country. That is why any problem confronting transportation should be taken seriously. This is where the railway system comes in as one of the best system of transpor tation for economic development. This is the reason why there is a lot of concern when this system is not functioning as it should be.

According to Umeh Christain Ikechukwu, PhD, Head of Department of Marketing, Imo State University, Owerri, Imo State, Nigeria, “rail transportation began much before road and air modes of transportation came into being. The first railway line in the world was built in

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PEWASH is a multi-sector collaborative platform that brings together government agencies and international institutions to improve access to water supply, sanitation and hygiene in rural areas in Nigeria.

ADDRESSING WATER ISSUES Nigerian government launches PEWASH to tackle water issues

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n its bid to achieve the Sustainable Development Goal (SDG) 6 and to keep on with the present administration's development policy, the Federal Government has launched the Partnership for Expanded Water Supply, Sanitation and Hygiene (PEWASH) and also unveiled the National Water Resources and National Irrigation Policies.

The Vice President of Nigeria, Professor Yemi Osinbajo who launched the programme also did the unveiling of the two National policies of the ministry on Monday November 7, 2016 in Abuja.

Professor Osinbajo said that the programme and the policies would address the challenges being faced in the water supply and sanitation subsector, adding that it was a good foundation towards achieving Goal 6 of the Sustainable Development Goals of ensuring availability and sustainable management of water and sanitation for all.

He called on all stakeholders, especially states and local governments to key into the PEWASH initiative and commit to its success so that the common developmental goals can be

Vice President, Yemi Osinbajo

Engr. Sueliman Adamu

achieved.

He said, "It is now my pleasure and singular honour to launch the partnership for expanded water supply, sanitation and hygiene, for smooth implementation to the glory of God and benefit of our people and to also unveil the national water resources policy and national irrigation policy that are very important and strategic for the development of the water sector."

Earlier, the Minister of Water Resources, Engr Suleiman Adamu, said that with the launch of the PEWASH programme, it is expected that there would be a purposeful synergy of all activities aimed at achieving access to potable water and increase in irrigation for all Nigerians, stressing that the primary goal of the programme is to contribute to improvement in public health and eradication of poverty in Nigeria through the achievement of SDG targets.

He also said that PEWASH is a multisector collaborative platform that brings together government agencies and international institutions to improve access to water supply, sanitation and hygiene in rural areas in Nigeria.

In her welcome address, the Permanent Secretary of the Ministry, Mrs Rabi Jimeta, said that in the absence of adequate water supply, sanitation and hygiene practices, life will be devoid of the needed pleasure and dignity.

She stated that in its bid to meeting its core mandate of ensuring access to adequate water services to Nigerians, the Ministry came up with the PEWASH programme and also developed the National Water Resources Policies which were recently approved by the Federal Executive Council. www.cedmagazineng.com November 2016 | 11

URBAN PLANNING

COVER REPORT - NSE

KEY TO SUSTAINABLE FUTURE People-focused urban planning is key to sustainable future, Pritzker Prize winning architect says at UN

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NSE EXECUTIVES WITH THE PRESIDENT, ENGR OTIS ANYAEJI (MIDDLE)

REVIVING THE NIGERIAN ECONOMY Engineers and Engineering could make the big difference in getting Nigeria out of recession

Against the backdrop of the recession in Nigeria The President of The Nigerian Society of Engineers, Engr. Otis Anyaeji at the World Press Conference recently, spoke on the opportunities the engineers and engineering could offer for growth.

Afam Odusola-Stevenson reports 12 | www.cedmagazineng.com November 2016

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n recognition of the critical state of the Nigerian economy the Nigerian society of Engineers th on the 20 of October 2016 held her inaugural world press conference tagged: engineering and economic prosperity highlighting strategies and programs tailored to re-engineer the economic climate in order to navigate the Nigerian society toward a stronger sustainable economic state.

Chaired by the president of the NSE Engineer Otis Anyaeji, the NSE proposed a multi-sector approach to resolving the current economic issues, highlighting the need to readdress

sectors ranging from education and industrial reform to housing and policy making citing the importance of leadership as the key driver of the redevelopment process as such the presidency is encouraged to adopt strategic planning as the key principle that will bolster economic performance in the country Government & Governance Addressing the presidency, the NSE recommends the president personally leads assessment of the nations Mission. Highlighting the importance of building a competent team around him, Engineer Otis suggest appointing

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he role that architecture can play in creating cities that are more sustainable and liveable – a vital element of the United Nations 2030 Agenda, in which economic inclusion, social development and environmental protection converge in a universal roadmap for global action – was in the spotlight at UN Headquarters today as this year’s Pritzker Architecture Prize laureate discussed his work and the road to a more inclusive future.

“We are living in an urban age – which is in principle great news, because cities hold the prospect of greater opportunity, education and jobs – but the problem of the scale and speed with which the urbanization process is taking place, has no precedent in human history,” Chilean architect Alejandro Aravena told reporters at a briefing co-organized by the Sustainable Development Goals Fund (SDGF) as part of a collaboration with the Pritzker Prize.

“To give you an idea, out of three billion people living in cities today, one billion are living under the poverty line.

By 2030, we will have more than five billion people living in cities and two billion of them are going to be under the poverty line,” he explained.

Describing the breadth of the challenge as the “3S” menace – the scale, speed, and scarcity of means – he said that to cope with the current influx into urban areas, “every week, we would have to build one new city for a population of one million people, with $10,000 per family. And if we don’t solve this equation, it is not that people will stop coming to cities – they are going to keep coming – but they will live in awful conditions.”

So how does the international community respond to such a phenomenon? Mr. Aravena offered a key clue; one that he has put to use in his work: “We [must] use peoples' own capacity, ideas and resources to provide a better environment. The scarcest

Alejandro Aravena

resource in cities today is not money, but coordination. So we need to create open systems that can include people’s own capacity to add value to their living conditions and opportunities.”

This notion is at the heart of Mr. Aravena’s work, which the Pritzker Foundation noted in its selection ‘gives economic opportunity to the less privileged, mitigates the effects of natural disasters, reduces energy consumption, and provides welcoming public space. Innovative and inspiring, he shows how architecture at its best can improve people’s lives.’

The press briefing, which also featured Martha Thorne, Executive Director of the Pritzker Architecture Prize and Paloma Durán, Director of the Sustainable Development Goals

Fund, UN Development Programme (UNDP) came ahead of and open dialogue on ‘Challenges ahead for the built environment,’ to be held this evening at Headquarters.

At that event, Mr. Aravena will be joined by previous Pritzker laureates Glenn Murcutt, Renzo Piano, Richard Rogers, Wang Shu, Thom Mayne, Richard Meier, Jean Nouvel and Christian de Portzamparc, for an in depth conversation about how architecture can be an engine of sustainable development.

For her part, Ms. Durán told reporters that Goal 11 of the Sustainable Development Goals (SDGs) promotes inclusive, resilient and sustainable cities human settlements urban policy as an asset tool for reducing poverty and inequality.

“Almost 60 per cent of the world’s population will live in urban areas by 2030, and we need to work with people coming from the architecture sector, among others, to deal with the challenge of the speed of the urbanization process,” she said.

The Sustainable Development Goals Fund (SDG-F) is a multi-agency and multi-donor development cooperation mechanism created in 2014 by UNDP, on behalf of the UN system, with an initial contribution of the Government of Spain to support sustainable development activities through integrated and multidimensional joint programmes.

In April this year, for the very first time, the Pritzker award ceremony took place at Headquarters, coinciding with the very special occasion of a new sustainable development Agenda.

The Pritzker, known as the ‘Nobel prize for architecture,’ is the highest honour in the field, with winners selected by a distinguished jury from around the world. Each award ceremony is held annually at a culturally significant venue and in this case the UN has particular significance as one of its lead designers was the 1988 Pritzker Prize Laureate, Oscar Niemeyer.

Source: UN News www.cedmagazineng.com November 2016 | 37

INFRASTRUCTURE

COVER REPORT - NSE

RAIL TO WHERE? Uncertainty surrounds California’s high speed rail project

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ince 2014, the construction of California’s high speed rail project has been underway, in order to connect Los Angeles and San Francisco. However, there have been several setbacks, especially with regards to funding, where the $64 billion project is still in need of $44 billion in order to progress and complete by 2029.

However, the recent election of US President Donald Trump could prove advantageous for the US economy and future transport rail networks - Trump has pledged increased investment and financial support to develop the country’s infrastructures and create long-term benefits and boost economic growth.

The California High-Speed Rail Authority aim for the sophisticated high-speed rail to reach speeds of over 200 miles per hour, competing with China’s world-class rail networks in order to accommodate for the increasing population and need for sufficient transportation links.

The rail network would ensure commuters can reach their destination in under three hours, but will also connect with Sacramento and San Diego through the implementation of over 20 new stations.

Trump has pledged to develop existing infrastructures through his Presidential speech, “We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none, and we will put millions of our people to work as we rebuild it” and has estimated that Hillary Clinton’s approximate $275 billion figure would have to double in order to meet these needs.

On the other hand, however, is the Continued on page 40 36 | www.cedmagazineng.com November 2016

Temperature recorders

termometro per forno expansion thermometer

manometro tutto inox elettrico

Calibration certificates

bimetal thermometers

digital and infrared thermometers

Weather instruments

Calibration certificates

steel stand weather station shelter

Represented in Nigeria by

TERMAF V. Ca' Treviglio 1/3Pontirolo Quess Muraina Aderemi K. FNIQS, MRICS, RQS Nuovo (bg), 24040 Italia Principal Partner info@termaf.it

a cabinet comprising 60% technocrats and 40% politicians. He elaborated the importance of selecting capable individuals as ministers noting that the prudent approach to ministerial selection and ministry running would be to merge ministries through bundling of allied sectors of government business into one ministry.

Illustrating this point, with a sample template featuring; a Minerals & Energy Ministry can be created from Petroleum, Gas, Power, and Water & Solid Minerals. Such a Ministry would require about six Minister and Ministers of State.

A Transportation Ministry should be created to manage all the modes of Transportation viz, Highways, Rail, Aviation, Maritime. Five Minister and Ministers of State would be required here.

In the Social sectors, a Ministry of Human and Social Services to manage Women Affairs, Youths, Social Welfare, and Sports can be operated with five Ministers and Ministers of State.

Public Finance Following recent discussions regarding the sale of national assets, the NSE believes the nation is not ripe enough to sell her performing oil and gas assets.

However the non-performing assets such as petroleum refiners and their captive petrochemical plants can be put forward for sales after sound professional reevaluation The invitation to explore national resources should be contracted \to investors encouraging interest from investors and encouraging a contractor based relationship between the country (Nigeria and interested foreign investors.

Furthermore, the NSE encourages the government's adoption of a policy abased finance system to fund the rapid economic development of Nigeria to all sectors Citing the Japanese framework utilized in expediting economic growth after the second world war public funds were channeled to the promote sector through their fiscal investment and loan

NSE team led by the President, Engr. Otis Anyaeji

NSE believes it is extremely important that the National Assembly as soon as practicable pass the Petroleum Industry Bill (PIB). Furthermore, rather than go for direct financing, the government should employ project financing, employing a carefully engineered financing mix on large scale projects like pipelines refining, electric power plants, hydroelectric projects, highways, rail projects, water supply projects programme (FILP) and the Japan Development Bank to realize set national objectives, the federal government should operate.

He should operate the federation account in aid of development in such a way that capital expenditure attracts no less than 60%. From this provision money can be ring-fenced for the strategic national development programmes which should include R&D for local technologies Power, Oil and Gas: Energy Addressing the petroleum industry, the NSE believes it is extremely important that the National Assembly as soon as practicable pass the Petroleum Industry Bill (PIB). Furthermore, rather than go for direct financing, the government should employ project financing,

employing a carefully engineered financing mix on large scale projects like pipelines refining, electric power plants, hydroelectric projects, highways, rail projects, water supply projects amongst others.

Regarding the unrest in the Niger Delta region, the NSE suggests that Nigerian content development be stretched to include host communities as stakeholders with equity holding making the stakeholders and thus protectors of the national assets.

Acknowledging the president's appointment of Engineers as the head of the Nigerian Electricity Regulatory Commission (NERC), the NSE advises that the presidency adopts the Nigerian content development within the power sector. Competent companies owned and operated by Nigerian technical professionals should always be given first refusal in all respects to encourage local capacity building consistent with the Nigerian Content policy of the government.

Engr. Otis Oliver said one of the urgent tasks the president should embark upon is to set a time frame for active diversification of energy sources for power generation i.e. hydro, oil and gas, coal, wind, biomass, solar, tidal etc. he urged the government to implement a hydropower scheme that will realize the Nambilla, Lokoja and Onitsha dams among others. He said engineers are of the view that a super grid can be

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COVER - NSE OIL ANDREPORT GAS REPORT

planned as a long term project to be installed at the west coast area, essentially for future continental systems for evacuation and transmission of power from the Inga hydroelectric power plant when that is done. He also urged Mr. President to support and get Nigeria invest in this 40,000mw Inga Dam project. In view of the nation's present situation, it is h i g h l y r e c o m m e n d e d t h a t we strengthen and maintain the national bulk transmission system at 330kw.

He also urged the National Energy Development Master Plan to be reviewed. The reviewed energy document should be passed on to the National Assembly for enactment into energy law, which will make it mandatory for every successive administration to implement.

Transportation Expressing the need for the dispersal of m a n \ o r n a t i o n a l g o ve r n m e n t parastatals across the country in order to encourage cross country movement and balance the demand for air travel across the country, the NSE president identifies centralization of federal parastatals at Abuja and Lagos as one of the leading causes of national infrastructure deficit. By spreading out these key parastatals across various states, there will be higher demand for flights increasing the income generating power of the aviation industry within the country and building a stronger

NSE president identifies centralization of federal parastatals at Abuja and Lagos as one of the leading causes of national infrastructure deficit. By spreading out these key parastatals across various states, there will be higher demand for flights increasing the income generating power of the aviation industry within the country and building a stronger aviation industry. aviation industry.

He emphasized the need to urgently separate operational matters on roads from the policy aspects, and expedite the creation of Federal Highways Authority, and a Federal Road Fund in line with international best practices.

The bills pending at the National Assembly on these proposed agencies, and also Rail Transport, and National Transportation Commission should be expedited to passage into laws as soon as practicable.

Revitalization and modernization of the railway system should be carried to a logical conclusion including the establishment of light rail and metro for our cities.

Industry & Infrastructure The NSE advocates the development of technological infrastructure, emphasizing the unprecedented gains in productivity available when the

Engr. Otis Anyaeji and the Deputy President with the Executive Secretary, Engr. Obadimu.

14 | www.cedmagazineng.com November 2016

countr y fully uncovers the technological potential available to her.

Emphasizing the need for the country to harness the hydrocarbon resources available which can double as industrial feedstock's for fine organic acids and bases and conventional energy source for their transformation to other forms for the countries requirements, the NSE acknowledges the opportunities of transforming these resources merged with the infusion of experienced engineers into the national policy planning space will ensure the right sequence of establishments of mixes of industry and appropriate application of technology.

Highlighting the economic oppor tunities available in the automotive industry he stated; the most frequently cited number-one problem for the firms is physical infrastructure, followed by access to credit, insufficient demand, and cost of imported components, raw materials and lack of skilled labour. In recent times, access to foreign exchange for procurement of vital raw materials, parts and equipment has joined this list.

To succeed in revamping the Nigerian automotive sector it would do the country a lot of good if the Nig erian Automotive Industr y Development Plan (NAIDP) receives legislative endorsement and be fully implemented. The NAIDP will liberalize the Nigerian automotive sector and this liberalization will increase FDI and induce competition, leading to significant productivity gains. Local supply capacity will be enhanced with strategic deployment of industrial parks across the country; creation of conducive ambience that will attract OEMs to set up vehicle assembly operations in Nigeria as well as improved ease of buying cars in Nigeria through provision of appropriate vehicle acquisition schemes.

Engineer Otis also criticized the collapse of the iron and steel industry and the continued neglect and abandonment of the Delta Steel

AFFORDABLE POWER ‘Investment In Renewable Energy Can Reduce Electricity Tariffs

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n expert in power, Mr George Alabo has disclosed that investment in Renewable Energy Power Plants would reduce consumer electricity tariffs and boost the nation’s electricity generation capacity thereby providing sufficient power to the manufacturing sector.

To this end, he called on the federal government to urgently commence the incremental inclusion of Renewable Energy Power Plants in the national budget, especially the utility-scale solar PV and wind power generation plants.

He stated this in Abuja yesterday at a Seminar/Award Ceremony organized by the Women Association Of Quantity Surveyors of Nigeria with the theme, “Cost-Effective Renewable Energy Provision in Nigeria: Issues, Challenges and Way Forward”.

In his presentation titled, ‘Approaches to Renewable Energy Provision in

Nigeria’, he enjoined governments to commence the use of renewable in powering all government buildings, infrastructure and assets adding that the federal government should target the generation of a minimum of 20% of its energy requirements from Renewable Energy.

“This is in line with the country’s target as contained in the Nigerian Renewable Energy and Energy Efficiency Policy (NREEEP) document which targets to attain 20% RE in Nigeria’s energy mix by 2020 but this is not achievable as concrete steps are yet to be taken by federal government to ensure its realization.

While harping on the construction of three Technology /Industrial Parks in the country, he said that the focus should be renewable energy plant manufacturing, assembly and training.

“They will be located in areas where the RE potentials are great, like Solar Energy

Technology Park in the North where we have higher sun hours, Wind Energy Technology Park in the coastal areas of Southern Nigeria and a Biomass Energy Technology Park in a State central to the North and the West, where we have more agricultural activities”.

He pleaded with federal government to partner international organizations such as the World Bank, African Development Bank and UNIDO to help finance renewable energy projects in Nigeria.

According to him, “Federal government should partner with Foreign RE manufacturers and investors in conjunction with local power generation companies (GENCOs) to construct Solar, Wind, Hydro and Biomass power generation plants in Nigeria.

On her part, the President of Chartered Institute Of Taxation Of Nigeria, Dr Olateju Somorin suggested that the fiscal energy policy necessary to give impetus to the actions by State actors and operators in the industry should result in utilisation of renewable energy sources in a way that engenders inclusive and sustainable growth in the Country

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MINING

INVESTMENT NIGERIA Mining: Nigeria woos foreign investors with three years tax holiday, others

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he Minister of Mines and Steel mining equipment.

Other incentives available to the Development, Kayode Fayemi, on recently offered prospective foreign investors is that companies investors in the Nigerian mining sector could be wholly owned by such three years tax holidays, as part of investors.

Mr. Fayemi also identified security as federal government’s incentives to another major area the government was serious investors. investing in, in order to ensure security The tax holiday, according to the of investment as well as life and Minister, would commence from the properties. date the investor commences mining “Our government has a renewed operations in the country. commitment to the improvement of Speaking at the opening session of security across mine site, logistic related the ongoing Africa Down Under Conference in Perth, Australia, Mr. Fayemi said the country was determined to return stronger to the global ore and mineral market and would drive the growth and development of the sector through the private sector.

The minister listed other incentives approved by the Federal Government for investors in the mineral and mining sector to include exemption from custom and import duties on Dr. Fayemi with some investors at the event

security and general terrorism.”

The Minister who presented g raphical details of incentives obtainable in several other major mining countries, including Australia, USA, South Africa and Chile, told the audience, which comprised investors, operators and other allied professionals that Nigeria was offering more g enerous incentives, including favourable tax regime and royalties.

He said Nigeria was determined to build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and metals. He added that part of the vision of the ministry is to contribute to job creation which.

“We are focusing on rebuilding our minerals and mining sector in three phases: Phase 1, in the immediate term, we are achieving import substitution by winning over domestic users of industrial minerals.

“Phase 2, our focus is on further expanding our domestic ore and mineral asset processing capacity. Phase 3, we will return stronger to the global ore and minerals markets at a market competitive price point,” Mr. Fayemi added.

The African Down Under Conference is renowned as one of the leading fora for facilitating discussions on how to grow investments and participation in the African mining space. It attracts significant interests from organisations prospecting for business opportunities in the mining sector in Africa.

Nigeria is attracting a huge attention at the conference in view of the recent discovery of nickel in some parts of Kaduna State by an Australian mining company and the planned presentation of the country’s mining roadmap at the conference.

Keep yourself abreast of development in the built environment 4 | CED Magazine June 2014

Century 21 Systems Comm. Ltd.

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Company, Ajaokuta, Itakpe and the captive rolling mills as well as the machine tools industry of Osogbo.

Citing their depletion as a major blow to the industrialization of the country, he emphasized that the iron and steel industry can be revitalized and adequately supply the raw materials and quality needed for the machine tool sector in Nigeria.

By encouraging local production, through Improved and adequate power supply and Enabling laws put in place to protect and promote activities in this sector there will be a strong upsurge in the manufacturing and steel industry Housing In the same vein, the association's president addressed the issue of housing in Nigeria. He said that it has been established in developed countries that a nation cannot be or remain in recession if the housing sector remains strong. This is because the housing industry has a powerful multiplier effect on the rest of the economy like steel, wood, cement, paint, aluminum, glass, plastic, cable, piping, sand, quarry stone, roofing sheet, electricity, water etc and the gains are best maximized if these products are manufactured locally.

He also urged the government that it should therefore reject the option of developing housing by continuing to import these materials, rather it should insist on manufacturing them in Nigeria. He said the importance of housing as a sector recommends it as an independent full ministry rather than as always an appendage to highways. He encouraged the government to support getting soil investigation done on every engineered land improvement project and ensure that standards are adhered to strictly across all facets of construction activities.

Engr. Otis Anyaeji said that the trends in developed countries have buttressed the argument that a nation cannot remain in recession if the housing sector remains strong. This he explained, is because the housing industry has a powerful multiplier effect

Engr. Otis Anyaeji said that the trends in developed countries have buttressed the argument that a nation cannot remain in recession if the housing sector remains strong. This he explained, is because the housing industry has a powerful multiplier effect on the rest of the economy like steel, wood, cement, paint, glass, aluminum, on the rest of the economy like steel, wood, cement, paint, glass, aluminum, cables, plastics, piping, sand, quarry stones, roofing sheets, electricity, water

etc. and the gains are best maximized if these products are manufactured locally.

Engineering Education Engr. Otis Oliver emphasized the importance restructuring of Engineering Education in Nigeria. He stated that, “the Nigeria's current system of education is very poor and should be reformed at all levels, otherwise how can one explain that a major oil company interviewed 2000 engineers but found none fit for employment”. He said that a typical direct entry requirement for engineering in a Nigerian University is

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two (2) A-level passes which includes Mathematics and Physics plus the basic O-level entry requirements of which no good University in the industrialized world would admit such a person to read engineering. The NSE President noted that Nigeria needs to go back to basics, humble itself and emulate the system of education and practices of those countries whose codes and standards Nigeria uses and copies. He also stated that this is the sine qua non for pre-eminence in engineering, safety and prosperity, even after minimizing corruption, nepotism, theft, self interest and square-pegs-in-roundholes.

Environment Enumerating the key sources of environmental pollution in the country, the NSE suggests the nation develops endearing management tools to ensure a strong balance between development and environmental sanity.

Analyzing the procurement policy in relation to national development that engineers observe that procurement laws in other developing countries or even those that have developed, do no leave their doors open for liaises fair to foreigners. The protective measure put

Our procurement laws should be revised to position Nigerians at the fore in the key areas in the economy.

Enumerating the key sources of environmental pollution in the country, the NSE suggests the nation develops endearing management tools to ensure a strong balance between development and environmental sanity.

CONFIDENCE BUILDING Confidence in South Africa's consulting engineering sector under pressure

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Senate to deal with govt agencies violating procurement laws, says Saraki

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PRACTICE

onfidence among South Africa's consulting engineering firms has come under renewed pressure in recent months having recovered earlier in the year from the 16-year low recorded during 2015.

Consulting Engineers South Africa's (Cesa's) Bi-annual Economic and Capacity Survey shows that, while confidence levels are above 2015 levels, they remain subdued and below the average of the last five years.

The survey, which covers the period from January to June 2016, also highlights that growth in gross fixed capital formation is lagging gross domestic product growth, a trend that is expected to continue for the next three years.

Weak confidence levels in the sector are a

WORKING WITH STANDARD

Cesa CEO Chris Campbell

reflection of low levels of business confidence more generally.

"Business confidence is negatively impacted by poor economic growth,

in place by China, Malaysia, India, South Korea, Singapore, Dubai are what made them become technological powers and exporters of expertise even to Nigeria. He also said that the Nigeria's open door policy is undermining the engagement of our indigenous engineering firms, young engineers and technologists as of their right in their own country. Our procurement laws should be revised to position Nigerians at the fore in the key areas in the economy. threatened by a looming recession, increase in political instability and tightening of monetary policy alongside a sharper than expected increase in inflation," Cesa CEO Chris Campbell said in a statement.

"Confidence levels amongst firms have deteriorated over the last few years, alongside modest increases in fee earnings," he added.

Cesa has 537 member firms, which employ just over 24 315 people and earn yearly fee income of R25-billion.

Fee earnings in the first six months of 2016 fell marginally by 0.2% compared to the last six months of 2015, following the increase of 6% in the previous period.

Larger firms reported a stronger decline of 5.3%, while medium- and smaller-size firms improved earnings by 15.1% and 10.6% respectively.

Respondents expect earnings to increase by 6% in nominal terms during the last six months of 2016, compared with the first six months of the year

enate President, Dr. Abubakar Bukola Saraki has threatened that the Senate will take up the case against any ministry, department or agency of government which is violating the Public Procurement law which compels them to give preference to locally produced goods in Nigeria.

He also charged Senate Committee Chairmen to ensure that in the course of their oversight duties that MDAs comply with the provision of the law on patronage of local manufacturers as he also urged all military and paramilitary agencies to emulate the Army by procuring items like boots and other needs locally.

Saraki made the threat last Thursday in Abuja when members of the Leather and Allied Products Manufacturers Association of Abia State (LEAPMAAS) visited him to express appreciation for the constant support he and the Senate have given to

Senator Bukola Saraki

the Buy Made in Nigeria campaign.

While responding to the welcome address by the co-ordinator of the Association, Chief Ben Hart, Saraki said the government spends more than

N2 Trillion annually in the purchase of goods, and that the aim of the Senate is to ensure that a large chunk of the funds go into the pocket of Nigerian manufacturers. He advised local manufacturers to petition the Senate where they feel a government agency is deliberating denying them the opportunity to sell their goods as he said the law making institution was ready to take up such cases.

The Senate committee chairmen here are to ensure that all the other agencies whether it is the Air Force, Navy, Customs, even the Road Safety, Civil Defence, NYSC must follow suit. We should include that as part of the conditions when they come to defend their 2017 budget. They must show evidence that they patronise and purchase locally made goods’’, he declared.

Earlier, the leader of the delegation, Chief Ben Hart said they were at the NationalAssembly to commend the Senate President, the Senator representing Abia South, Enyinnaya Abaribe and other Senators for their support in promoting the Made in Nigeria and Made In Aba goods.

December 2, 2016 Lagos, NG

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COVER INTERVIEW

WORLD LEADERS AT PARIS CLIMATE CONFERENCE

PARIS CLIMATE COUNTS Marrakech climate conference focuses on cities, towns implementing Paris Agreement

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he United Nations Climate Change Conference (COP 22) in Marrakech, Morocco, has put its spotlight on cities, towns and regions around the world that are making efforts to reduce their carbon emissions.

These cities and towns are striving to play a key role in implementing the Paris Agreement, which entered into force on 4 November.

"Climate action in and by cities, towns and regions will be instrumental in ensuring that we stay on a 2 degrees Celsius pathway, aiming for 1.5 degree Celsius," said the Secretary General of ICLEI - Local Governments for Sustainability, Gino Van Begin.

He made his remarks on Thursday at a press briefing on the Conference's "action day" for cities and human settlements.

ICLEI is the global network of over 1,500 cities, towns and regions committed to building a sustainable future.

The Paris Agreement, so-named after the French capital where it was approved in December 2015 at the previous Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC), known by the shorthand COP 21, aims to 32 | www.cedmagazineng.com November 2016

strengthen the global response to the threat of climate change.

It aims to do so by keeping the global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit it to 1.5 degrees Celsius.

As an example of cities being active on climate issues, Van Begin pointed out the establishment of the Global Covenant of Mayors for Climate and Energy from a merger between the European Covenant of Mayors and the Global Compact of Mayors.

"Cities can help reduce emissions," said the Chief Scientist at the UN Environment Programme (UNEP),

City of Marrakech, Morocco

Jacqueline McGlade, at the same press briefing. "The leverage is enormous."

The Global Climate Action day on Cities and Human Settlements at COP 22 showcased the potential of local action, focusing on resilience and building efficiency.

A new tool was launched to help cities assess their adaptation commitments.

Urban areas are at the centre of converging global frameworks, not only the Paris Agreement on climate change, but also the Sustainable Development Goals (SDGs), adopted in September 2015, and the New Urban Agenda, adopted last month in Quito, Ecuador, at the UN Conference on Housing and Sustainable Urban Development - or Habitat III. Urban areas represent an estimated 70 per cent of energy-related global emissions. Many actions to adapt urban areas to climate change also have positive mitigation impacts, including renovation of old and construction of new low-energy and energy-efficient buildings.

"It is important to see development in cities in a totally different manner," said 'Climate Champion' Laurence Tubiana, at the press conference.

"We have to cut the building energy consumption by 50 percent by 2050. It's a big challenge.

"Cities can help government implement their NDC (nationally determined contribution) much better and really aim much higher," she added.

Tubiana, the F r e n c h Ambassador on climate change, and Hakima El HaitĂŠ, the Moroccan Minister in charge of Environment, w e r e appointed C l i m a t e Champions by COP

POWERING AFRICA Amid policy angst, US energy diplomat points to bipartisan support for powering Africa

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merica's Principal Deputy Assistant Secretary of State for Energy Resources would not be drawn this week on how the administration of President-elect Donald Trump could approach energy policy and the Africa Power Initiative in particular. However, Ambassador Mary Burce Warlick highlighted during a briefing of African journalists that the Electrify Africa Act, which supported the aims of the initiative, had received bipartisan support earlier in the year.

Speaking from Washington DC on developments in US energy diplomacy in Africa, Warlick provided an update on the various initiatives being pursued across the continent, which she said were designed primarily to enable African countries to adapt to a "rapidly changing" energy market and take advantage of indigenous energy resources.

The briefing followed the surprise election of Trump as America's fortyfifth President, a development that has raised uncertainty about the country's stance on various African programmes, including Power Africa and the Africa Growth and Opportunity Act. Warlick said she could not

"speculate" on the approach that would be taken by the new administration, but highlighted that Republicans and Democrats had worked together in February 2016 to pass the Electrify Africa Act. The Act is said to provide a f r a m e wo r k f o r p u b l i c - p r iva t e partnership between the US and subSaharan African countries to ensure greater energy access on the continent.

Currently, more than 600-million Africans do not have access to affordable and reliable electricity.

President-elect Donald Trump

"I think there is a strong recognition, in a bipartisan way, of the importance of this particular initiative and the goals of continuing to support energy access in Africa," the ambassador said.

The Power Africa programme was launched by President Barack Obama in 2013 with the aspiration to add more than 30 000 MW of generation capacity and connecting 60-million new home and businesses.

Warlick, who recently participated in Africa Oil Week, held in Cape Town, also expressed enthusiasm for South Africa's renewable-energy and gas-topower plans, notwithstanding the recent reluctance of power utility Eskom to sign new power purchase agreements with renewable-energy independent power producers.

She highlighted that the introduction of indigenous and imported gas into the African energy mix could help diversify sources of supply and support the introduction of higher levels of renewable-energy sources.

A surge in shale gas mining activity in the US, together with technological advances in the transportation of gas, through liquefied natural gas (LNG), would transform America from a net importer of gas to a net exporter by 2019.

The US produces one-fifth of global gas supply, or more than 750-billion cubic metres a year, and began exporting LNG in February this year.

"By exporting LNG, the US is infusing global energy markets with unprecedented supply options," Warlick enthused.

She indicated that the country was "eng aging" with g as-to-power programmes globally and she noted the participation of American firms at recent energy conferences in South Africa.

"We think gas could be an important solution for many countries in addressing their electricity needs," Warlick said, adding that US exports of LNG could be beneficial to many markets, as it increased the options that countries had to address security of supply and support energy diversification. www.cedmagazineng.com November 2016 | 17

MINING

CONSTRUCTION OIL AND GAS REPORT

CONSTRUCTING AFRICA South Africa has most construction projects on continent – report

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outh Africa continues to account for the most infrastructure and capital project activity in Southern Africa, at 48.2%, followed by Angola at 12.9% and Mozambique and Zambia at 10.6% each.

South Africa also has the most projects, by country, in Africa, at 41 p r o j e c t s , D e l o i t t e ’s ' A f r i c a Construction Trends' report revealed on recently.

With 85 projects, Southern Africa – which includes Angola, Botswana, Lesotho, Madag ascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe – represents 29.7% of all projects in Africa, and 28.9% in value, at $93.4-billion.

However, this is 24 projects less than the 109 recorded in last year’s report. In East Africa, only 43 projects are recorded from 61 previously, with the overall value dropping from $58-billion to $27-billion.

In total, Africa’s large construction projects are currently worth a collective $324-billion, slightly down on last year’s $375-billion, the report finds.

“Construction projects are continuing in Africa, despite slower economic growth and the commodities price slump which has an impact both 18 | www.cedmagazineng.com November 2016

on the financing available and project viability. At the same time, it is imperative that African governments and companies invest in water infrastructure, especially given the drought conditions facing much of the continent,” said Deloitte associate director JP Labuschagne.

SOUTHERN AFRICA SCOPE Across the region, the real estate sector accounts for 30.6% of activity, seeing the largest increase in the number of featured projects, followed by energy and power which account for 24.7%.

Transport projects recorded the thirdlargest share with 20%. This is followed by mining and shipping & ports projects making up 7.1% of projects each.

However, in terms of value, energy and power projects dominate, valued at $33.3-billion, while oil and gas, the second-largest sector, is valued at $25.5billion.

Projects in transport and mining declined by seven percentage points each, in terms of the number of projects, along with projects in the water sector, which also saw a decrease in the number of projects, from nine to six.

This overall decrease can be

attributed to lower-for-long er commodity prices and regulatory uncertainty in a number of countries in the region.

Government-owned projects account for 60% of the market share, followed by private domestic-owned projects with 25.9%. Single countries owning projects make up the smallest share in the region, with 14.1% combined.

In a change from 2015, Southern African governments account for the greatest financial investment by funding 31.8% of all projects. Private domestic entities account for funding 24.7% of projects with various other countries funding 20% of projects in Southern Africa.

International development finance institutes (DFIs) and African DFIs are funding 10.6% and 4.7% of projects throughout Southern Africa respectively, with China funding 8.2% of projects.

Meanwhile, of sub-Saharan Africa’s (SSA’s) big four economies – Nigeria, South Africa, Angola and Kenya – Nigeria is rapidly contracting, while Angola and South Africa are static. It is only Kenya which is bucking this trend and growing at a decent emerging market rate of close to 6%.

Uncertain global macroeconomic conditions and domestic challenges have led to lower growth projections for this region as a whole. Growth in subSaharan Africa fell to 3.5% in 2015, significantly below the 5% to 7% average experienced by the region over the last decade.

Sub-Saharan Africa’s 2016 growth forecast is even lower at only 1.4%, the first time that the region’s growth has been lower than the world average since 2000.

WATER WOES The current drought has highlighted shortcomings in water infrastructure.

Water resources have come under increasing pressure, through urbanisation, population growth, climate change and water-intensive industry. Since 1990 sub-Saharan

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Coal mining in Enugu

GETTING THE ECONOMY MOVING Miners Set To Reposition The Economy

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he administration of President Muhammadu Buhari, since inception, has not hidden its desire to diversify the nation’s economy that had hitherto, perilously, hinged on a mono product- oil.

The implementation of the policy became even more urgent with the crisis in the international market that has seen the price of the commodity plummet to record levels.

Two areas are currently receiving attention as possible ways through which a buffer can be provided for the economy – agriculture and solid minerals. The mining of solid minerals, though regulated by the government, had been p e r c e i v e d n e g a t i v e l y. L a c k o f appreciation of its positive contributions had also, undeservedly, denied it the opportunity to play its role in the nation’s economic life. Its potentials, which are all too glaring, attracted not as much recognition as oil.

The Miners Association of Nigeria (MAN), the umbrella body of all other trade associations in the industry, which has been in existence since 1944 as Association of African Miners, and acquired its present name in 1993, is set to change all that. As a body, its membership includes entities and individuals that are directly involved in mineral resources exploration and exploitation in Nigeria.

We share its enthusiasm as stated in its mission which portrays a willingness to move mining activities to greater height in which operators will be empowered to

mine with ease for the development of the industry, create wealth and generate employment. Even more importantly, its vision to positively engage the government to provide enabling environment for mining activities to thrive, gives industry watchers reasons to be optimistic.

To achieve these and to attain other objectives, the association is organising, curiously, its first Nigeria Mining Week which is going to be a customised stakeholders’ engagement forum, aimed at mobilising, sensitising and buying-in, not only for change in mind set and current ways of doing things, but also for kick-starting the mining transformation roadmap implementation targeted at both local and global stakeholders.

The Minister of Solid Minerals Development, Dr. Kayode Fayemi, specifically articulated the intentions of government in his letter of endorsement for the Mining Week. Throughout the period, the activities of the miners will be g e a r e d t owa r d s c a t a l y s i n g a n d

Two areas are currently receiving attention as possible ways through which a buffer can be provided for the economy – agriculture and solid minerals. The mining of solid minerals, though regulated by the government, had been perceived negatively.

repositioning the sector. The participants will use the event as a platform to demonstrate their support for the government’s commitment to providing an enabling environment to attract investors and financial partners in the sector as well as work with the government in order to encourage local, regional and international role-players across the value chain to come and participate in the Nigerian mining space.

Being the first of its kind in the country and as the first phase of the change trajectory it will, hopefully, address the reality of investing in Nigeria’s mining sector, the challenges, the misconceptions and, most importantly, the opportunities.

There will be solutions-based sessions on project financing, and corporate social responsibility with a networking cocktail reception.

Its structures, as the only association in the mining industry, captures all categories of miners – Gem Stones Entrepreneurs Association of Nigeria, Dimension Stones Association of Nigeria, and Association of Miners and Processors of Barite. It also embraces association of mine owners which include Artisanal and Small Scale Miners, Quarry operators and Traders of Mining products.

We are encouraged by the association’s determination to collaborate with the Ministry of Solid Minerals Development and its agencies to achieve every success in the ongoing reform initiative of the government. Furthermore, it is heartwarming, in our view, that its evidently robust synergy with other government agencies and international community through their embassies and the partnership with indigenous operators, is positioning the miners through the association, to harness the solid minerals’ potential of the country.

However, it is not good enough, in our opinion, that such an important association is making its first public appearance of this kind in 72 years. All this time, its members have been attending such meetings elsewhere outside the country. Now that it has decided to reverse the trend, we expect the association to prove that it has all it takes to sustain the tempo so as to showcase to the global community the investment benefits derivable from this sector of the nation’s economy. www.cedmagazineng.com November 2016 | 31

ENERGY MINING

of earning foreign exchange from raw materials exports. There are Nigerians with the financial muscle to help us develop ourselves but most of them are more interested in owning private jets without having a clear and verifiable means of income. Our educated young men and women are being used as servants and drivers by these invaders.

Some of them are abused and insulted and even called names and they have no option than to bear the insults, as there are no alternative jobs out there.

Could our raw materials have been for export to other countries for their development? Why is it so difficult for us to see that we can add value to our raw materials and use locally besides exporting finished or value-added products to the world and earning even much more foreign exchange? There must be a deliberate effort to protect, project and support our own. We ridicule ourselves when we believe that it is the export of raw materials that will solve our foreign exchange problems. What manner of raw materials export does

CONSTRUCTION ENERGY

America make that makes the dollar such a strong currency?

We should not allow foreigners in these very primary activities that Nigerians can successfully carry out. We must create jobs; we must develop our land and create an industrial revolution.

We can start by insisting that raw materials must be converted before export or local usage. Nigeria has no business importing iron rods and such other iron products, not with the large deposits of iron ore and manganese that litter our country. We must also note that the technologies of smelting metals and converting agro produce are not in the realm of rocket science that would make them difficult to achieve. When we convert these materials locally and use them locally, we will no longer need to reimport them as we are doing today, thereby conserving foreign exchange and strengthening our currency.

It is funny that while we allow foreigners to export our casseterite (the ore of tin), we turnaround to import tin plate for our food industries at a cost that

is more than 10 times the value of what was exported. We must act fast so that the situation we have in the oil sector, where we export crude and import refined products, does not extend to other commodities. This is an advocacy for the development of deliberate policies that will protect and stimulate our local industries, give us opportunities to benefit from our resources and redirect our focus from seeking foreign investment to creating a healthy environment for self-development.

Thereafter the foreign investors would be hungry to be part of the Nigerian industrial revolution.

China was developed by intentional policies that encouraged local production, even at the smallest scale.

We are on the path to re-colonisation and if nothing is done our children shall be slaves in our own land. The urgency of the situation cannot be overstated.

Africa’s population has almost doubled, and water infrastructure has lagged demand.

“Water provision is a critical component for agriculture and agroprocessing, energy generation and industrial development. To diversify their economies, African governments need to invest in water access and related infrastructure projects,” said Labuschagne.

However, supplying water is often politically charged, and financial returns are the lowest of all the infrastructure asset classes. Deloitte’s research found that water accounted for 3.8% of total projects and only 1.3% of projects by value.

There are only 15 water projects in Africa for the period under review, with a total value of $4.8-billion. Southern Africa has the largest number of projects, with dams in Angola, Namibia

• Udo wrote in from Abuja.

ENERGY

President Zuma of South Africa

President Buharia of Nigeria

and Mauritius and water infrastructure and distribution projects in Mozambique, South Africa, Zambia and Zimbabwe.

South Africa, with three projects at a combined value of $1.3-billion, is the leader both in terms of the number and the value of water projects on the

continent.

“Investment in water infrastructure will be crucial for African countries that need to ensure adequate water access for the public, while developing their economies. It will be critical to look for innovative ways to finance these water projects,” said Labuschagne.

DEALING IN ENERGY Sweden signs US$153M energy deal for SMES in Ugandan

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weden, via the bilateral strategy for Uganda, has signed US$ 153M energy deal for SMEs in Uganda with the United Nations Capital Development Fund (UNCDF) and the ministry of Energy for the Renewable Energy Challenge Fund executed by UNCDF in Uganda.

Mr. Alhaji Jallow, the UN resident coordinator in Uganda, said the joint venture intends to support Small and 30 | www.cedmagazineng.com November 2016

Medium Enterprises (SMEs) in Uganda to introduce product and service delivery in markets served insufficiently around the nation, particularly in countryside regions.

In Uganda, the UNCDF Clean Start Programme (CSP) initiated in 2015, is coinvesting US $1.8m in the initial phase of business ideas related to funding distributed energy services, enabling five energy and fiscal service suppliers to

maintain innovation resolutely on their agenda while structuring their business for potential growth.

"In the course of this joint venture, more energy SME's in Uganda can profit from initial stage investments and make changes in serving customers," said Jallow.

Speaking prior to the signing of the accord last week at the Swedish Embassy in Kampala, the Swedish ambassador to Uganda, H.E Per Lindgarde, said the contribution will enable at least 15 extra enterprises to develop and increase access to cost-effective energy for more than 150,000 homes by the year 2020.

The initiative will also see to decrease in green house gas release of almost 150,000 tones ever y year while creating employment opportunities for women and youth.

Energy access is still a big challenge for Uganda with only 20 per cent of the inhabitants having electricity and more than 90 per cent of the homes relying on biomass for cooking.

Mr. James Banaabe, the commissioner for energy efficiency and conservation, at the Energy ministry, said the CSP is extremely useful in assisting to connect the citizens in rural areas who are yet to be connected to the national power grid. www.cedmagazineng.comNovember 2016 | 19

MINING

INFRASTRUCTURE OIL AND GAS REPORT

FIXING THE DEFICIT

Nigeria requires $93bn to fix infrastructure deficit

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Professor of Ag ricultural Economics, Ahmed Ala, has said that Nigeria will need about $93 billion to fix infrastructure across all sectors of the economy.

Speaking at a workshop organised by Association of Agricultural Journalists (NAAJ) with the theme, "Sustainable Agriculture Under Economic Recession," Ala said that government could only boost economy and achieve its infrastructure development through Public Private Partnership (PPP).

Ala, who represented the Commissioner for Agriculture, Sokoto S t a t e, A l h a j i U m a r u N a g wa r i Tambuwal, at the workshop recently, said that government could only boost the economy and achieve its infrastructure development through Public Private Partnership (PPP).

According to him, in PPP collaboration, the private sector is found to play a key role in the success of government in providing infrastructure and other social services to the people.

He added that the private sector has resources, human capital and problemsolving capabilities that government needs in solving its socio-economic problems as well as improving its operation and services.

However, he said that the aim was to

Babatunde Fashola SAN, Minister of Works

create economic g rowth and development through market-oriented investment and thus contribute to employment generation, poverty reduction and revenue generation by the government, among others.

Speaking on other advantages of PPP, he explained that it utilises private sector skills and technology to deliver projects in a more efficient manner, resulting in either lower costs or a superior product for the same investment and managing and m i n i m i s i n g g o ve r n m e n t r i s k s associated with long term projects.

Ala stated that PPP allows projects to be accomplished more quickly and on schedule than those attributed to public sector provision as bureaucratic tendencies/bottlenecks are reduced to the barest minimum.

On the problems facing PPP, he said the partnerships are faced with challenges such as failure to honour agreement signed, insecurity, low political will and wrong selection of private sector (poor expertise and resources on the part of the private sector to implement the project).

He said the way forward for achieving a successful PPP project includes honouring of agreements/MoUs signed between parties and ensuring strong legal and institutional bodies to protect PPP, so that when there is a problem with the arrangement(s) the private sector or investors are not left to bear the burden alone.

Said he, "tackling insecurity in the country, as no investor will invest his resources in a country/state that is not safe, especially during period of crisis, is very paramount."

Good political will from the leadership: strengthening the regulatory institutions/framework for proper implementation of PPP projects as well

Keep yourself abreast of development in the built environment 4 | CED Magazine June 2014

Century 21 Systems Comm. Ltd. 20 | www.cedmagazineng.com November 2016

www.cedmagazineng.com

BANKING ON MINING

Nigerian mining industry and Asian tigers

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ven as the world has become a global village, nations still defend their territorial integrity. It is not likely that God blessed Nigeria with ample natural resources so that the resources of the country would be used to enrich citizens of other nations and to develop those other nations.

While no nation can be an island in today’s world, certain assets and chattels of each nation must be respected and protected. No doubt, there is a need for international trade and collaborations, but there must be limits to which the citizens of a nation are exploited and denied.

Nigeria belatedly came up with the Local Content Act when the cream of the oil industry had been taken wholly by foreigners. We are having challenges passing the Petroleum Industry Bill because foreigners have seized our oil industry. As the oil assets of Nigeria have been taken by foreigners, these foreigners are the majors in the oil industry while we belatedly introduced the concept of “marginal players” to accommodate Nigerians; the owners of the oil.

Oil is now history and Nigeria lost the opportunity of developing itself and its people with proceeds from it. The Nigeria Extractive Industries and

Transparency Initiative (NEITI) is supposed to get our people into the mainstream, but it amounted to doing too little too late. Even the NEITI stated clearly: “A country’s natural resources, such as oil, gas, metals and minerals belong to its citizens. Extraction of these resources can lead to economic growth and social development.”

Today that our nation is focusing on mining and agriculture, again Chinese have more or less taken over our mining sector while the Indians are the major exporters of our agro produce. There is hardly any mineral bearing community that you will not find the Chinese, even in the most remote hamlets. They are in our bushes, hewing down our trees for

Dr. Kayode Fayemi, Minister of Mines

transportation to their country.

Nigerians cannot compete in the export of our minerals and agro produce because we lack the financial muscle to do so. The few who obtain small-scale mining leases are compelled to sell them to the Chinese because of the lack of resources to operate such mines. To make matters worse, our financial institutions are more inclined to lend to foreigners than support Nigerian businesses. Even when the Central Bank of Nigeria comes up with some financial intervention packages, such funds usually are inaccessible because of the kinds of conditions attached to them. The funds end up lying idle in bank vaults while our economy continues to lie prostrate.

Foreigners come in with cheap financial support from their home countries to create a competitive environment that throws out the locals.

Nigerians are intelligent and hardworking people, but they lack support. As the necessary encouragement is absent, so is the environment hostile. These conditions give impetus to the foreigners, supported by their home countries, to straddle our land, taking away our resources for almost nothing, all for the purpose of developing their own industrial bases.

The singsong in government circles is the attraction of foreign investment, as if any foreign country would be interested in our development. If we built our industries, they would lose our market, if we kept our money at home, they would lose the billions of dollars that Nigerians stash away in their banks; if we built our schools, they would lose the school fees that we remit to their schools for the education of our children. Essentially if we develop ourselves, we would diminish their growth. Why then would they want to help develop us, when it would be to their own detriment? Some foreigners have boldly come out to call us fools.

They are mining engineers, geologists, metallurgists, agricultural engineers, agronomists and, in fact, all manner of professionals. Yet the Chinese and the Indians are controlling our mining and agro sectors. It has to be noted that most of the earnings from these exports by foreigners are never repatriated to Nigeria, thereby frustrating the initiative

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DEVELOPING STORY

OIL AND GAS REPORT ENVIRONMENT

Arc. Musa Sada, Minister of Mines & Steel

Rachel Notley.

TRUMP OR NO TRUMP!

Trum victory does not change Alberta or Canada commitment to Carbon pricing: Notley, Trudeau

T

he likelihood of United States government inaction on climate change over the next four years under President-elect Donald Trump should not affect the competitiveness of the Canadian energy industry, says Alberta Premier Rachel Notley.

“There are strong, strong compelling reasons for moving forward on our climate leadership plan and the decisions of the voters south of the border are not things that should appropriately factor into that,” she said this week.

Dive deeper into industry analysis and i d e n t i f y o p p o r t u n i t i e s, i m p r ove productivity and empower your strategic decision making with the Daily Oil Bulletin Energy Intelligence Essentials bundle.

The Exploration and Producers Association of Canada (EPAC) called on the Alberta government to “hit the pause button” on its carbon reduction plans until the implications of the Trump victory are clearer while Peter Tertzakian, managing director of ARC Financial Corp., suggested that U.S. energy policy under Trump would focus more on energy than on the environment.

However, according to Notley, the Alberta government never factored into its

climate change plan the likelihood of the U.S., even under the Barack Obama administration, moving forward on significant climate change initiatives, particularly around pricing carbon.

“Our climate change leadership plan was designed and modelled on the basis of Alberta acting alone with amendments and considerations built into the plan for our more trade exposed industries and I think that remains the case now,” she said.

“It also makes sense — in Canada and all around the world — to act on climate change, to phase out coal pollution, and to phase in clean renewable energy.”

Alberta has significant momentum on the file, she said.

“We are actually ahead of the game here in Alberta relative to where we were a year ago when we first announced the climate leadership plan because the federal government is talking within three or four years to bringing other jurisdictions in Canada to where Alberta is so it would actually improve the whole competitiveness issue.”

Trudeau Meanwhile, Prime Minister Justin Trudeau says it's full steam ahead for his

government's environmental plan-including a national carbon price--despite a Donald Trump presidency that will likely recast America's climate-change priorities.

The Liberals have made the fight against climate change one of the motifs of their government since coming to power a year ago, and had a highly sympathetic Democratic partner in Washington under the administration of President Barack Obama.

The new American president-elect, by contrast, has suggested climate change is a hoax, wants the United States out of the Paris climate accord and plans to promote the exploration and development of fossil fuels, including coal.

Trudeau announced last month that he'd impose a national floor price on carbon dioxide emissions starting in 2018, rising to $50 per tonne by 2022.

Canada won't be altering course, the prime minister told a news conference Thursday in Sydney, N.S., when asked about Trump's potential impact.

"One of the things people in Canada and indeed around the world understand is that there is tremendous economic disadvantage from not acting in the fight against climate change; for not pushing towards cleaner jobs and reducing emissions; towards not showing leadership at time where the world is looking for leadership," Trudeau said.

"We know that putting a price on carbon pollution is a way to improve our response to economic challenges, to create good jobs going forward and to show leadership that quite frankly the entire world is looking for, along with the solutions that go with it."

It's clear, however, that a Trump presidency is going to complicate the Liberal government's plans.

"A carbon tax makes no sense anymore," Conser vative interim leader Rona Ambrose said in Edmonton, calling it "complete insanity" for Canada to continue pricing carbon emissions given the new American political reality.

"What we've got now is a situation where we could be put at a huge competitive disadvantage compared to the United States."

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Century 21 Systems Comm. Ltd.

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"Clearly the time is ripe or even overdue for similar revolution in the government/public sector."

They said presently, the Nigerian citizenry has become alert enough to expect high quality service from government, business, and non-profit sectors. "Nigerian engineers thus sense the President has to adopt strategies that would ensure that, from the now in performing government responsibilities, both the public servant working in government agencies and the agency as a whole must perform optimally, and to the satisfaction of the citizenry.

"The key word here is PERFORM, since elected public servants are expected to perform not to learn."

WE CAN DO BETTER Engineers Advise Buhari to Believe in Capacity of Nigerians

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he Nigerian Society of Engineers (NSE) has advised President Muhammadu Buhari to believe in the capacity of Nigerians in his quest to grow the nation's economy.

The nation's engineers stated this in their presentation 'NSE Prescription For Prosperity And Progress', stating that President Buhari "has to believe in, and tap into the capacity of Nigerians and Nigeria for rebirth and renewal as already witnessed in the entertainment, communications, banking and other industries.

"The Nigerian Society of Engineers recognizes that the task facing the nation at this critical period beset with economic decline revolves around the following leadership responsibilities: Creating an inspiring and consistent vision; Re-assessing governments' and nation's core missions in the light of Mr. President's clear picture of the future; Selecting, recruiting, retaining, using and developing appointees and employees; Managing change within the state house, the public service; and providing enabling development for change in the private sector and preparing for global change; Leveraging technology to improve public sector

operations and delivery of services therefrom to citizens; and using local talents, local technologies, and local goods and services as inputs to infrastructural and economic development projects."

President as Executive-in-Chief…

The engineers said, "Nigerian citizens, public and media appreciate and glorify the glamour attendant upon the President's role as "Commander-inChief" (fondly called C-in-C). On the other hand, Mr. President's role as "Executive-in-Chief" attracts very little attention, whereas it is performance in this latter role that can make or mar the polity/economy environment."

The challenge ahead…

In the opinion of Nigerian Engineers, "Mr. President has to recognize that the next two and half years have to be a revolutionary period in government and also businesses.

"He has to believe in, and tap into the capacity of Nigerians and Nigeria for rebirth and renewal as already witnessed in the entertainment, communications, banking and other industries.

The president's vision & philosophy…

They said due to accelerated rate of change in all sectors, Mr. President must now define a dynamic vision to inspire and mobilize the public and private sector, and usher in an organizational change process that will rapidly see Nigeria renounce and discard its old self as a consumer, and become a new entity that produces what it needs and consumes. He should very soon provide a clear picture of all the sectors in the next two and half years, and in the distant future, and not just a few sectors.

"It is noteworthy that the first Republic, even up to the second Republic, pursued the development of all the sectors, leaving the legacy of the stock of infrastructural, agricultural, industrial and social properties we now have as a country.

"The philosophy that should inform our lifestyle is that we must produce for our needs and wants or continue to be economically enslaved. Our motto must be if we must use it, we must make it here. This implies that production must form the core of Nigeria's economic policy."

Re-assessing government's and nation's core missions…

As the leader of the Nigerian

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21

CED PROPERTY INTERVIEW EVENT

CED PROPERTY INTERVIEW OIL AND GAS REPORT DEVELOPING STORY

organization, they said "Mr. President should personally lead the assessment of Nigeria's mission, to determine if we as a nation are in the right businesses, what the accumulated or missed missions and the extent of house cleaning to be done.

"The President is advised to carefully and professionally determine the right changes and the right ways to go about them. Once these are settled he must courageously go for the bold broad initiatives that are guaranteed to move the government and the country forward sustainably."

Selecting appointees and employees‌ Engineers are of the view that the success of Mr. President in his role as Executive-in-Chief would hinge on his success in attracting and selecting talent for both political appointees and employees in public service, they said.

"Thus it is expected that the President will be personally involved in the interviewing process, and not abdicate this responsibility to state governors and political party chieftains.

Such persons are nominated for specific ministerial portfolios, and if a nominee is screened for a particular ministry and is deemed competent for that position, he (or she) is appointed to go and perform. If such a person fails, he is dropped as there is no room for 22 | www.cedmagazineng.comNovember 2016

"For the sake of performance, and quality executive service to the citizenry, Nigerian Engineers on behalf of Nigerian professionals demand that the President constitutes his cabinet with 60% technocrats, and 40% politicians. cabinet reshuffle in the Presidential systems."

The Engineers noted that "politicians have enough latitude to be-stride the landscape like Colossus, having in the National Assembly 469 positions, over 700 seats in State Assemblies, and over 7000 places in local government councils. Ministerial positions are competence-based and sensitive to performance.

"For the sake of performance, and quality executive service to the citizenry, Nigerian Engineers on behalf of Nigerian professionals demand that the President constitutes his cabinet with 60% technocrats, and 40% politicians.

In making this demand, Engineers strongly recommend to Mr. President to depoliticize the selection process and demystify the senate screening exercise by attaching portfolios to those nominated for ministerial appointments.

"For engineering-based Ministries the President is advised to appoint Engineers as Ministers, or Ministers of State to lead them.�

Leverage on the best Business and Financial News Programme on Television

ESV. ELDER WILLIAM ODUDU

ESVARBON INDUCTS NEW MEMBERS Elder WilliamOdudu tasks new board on professionalism

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state Sur veyors and Valuers Registration Board of Nigeria (ESVARNON) recently inducted 90 members at a ceremony held in Abuja.

Speaking during the 39th edition of the induction ceremony, ESVARBON chairman, William O. Odudu, said that with the addition of the new inductees,

?

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New members at the induction ceremony

it brings to 4,143 registered Estate Surveyors in the country.

"It is worthy to note that 1021 persons have been registered since I became Chairman of the Board. Let me advise those who are being inducted today to know that the seal and certificates to be given to them later today are the properties of the Board, and the Board reserves the right to withdraw these items at any time, if the seals are recklessly used.''

He said the rules and regulations of the Board should be the guide of any

registered Estate Surveyors and Valuers and the violation of the Rules, Regulations and the Code of Conduct will not be tolerated.

In a related development, the outgoing chairman of ESVARBON, Elder WilliamOdudu tasks new ESVARBON board on professionalism President of Council for Regulations of Engineering in Nigeria (COREN) Engr. Kashim A. Ali, (fourth right) in a group photograph, with by the Royal Academy of Engineering, London led by the President of Federation of African Engineering Organisation (FAEO), Engr. Mustapha B. Shehu (third right) recently in Abuja.

Chairman of Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) William Odudu has called on the incoming board to remain focused and committed to the ideals of the board.

Speaking during the inauguration ceremony of the new board in Abuja, Odudu said that ESVARBON, in the recent years, has embarked on several innovative programmes that would promote international best practices and enhance ethical and professional standards of practices among the practitioners.

He also said the board has published vital documents such as: Code of Professional Conduct for Estate Surveyors and Valuers and Explanatory Notes, Valuation Reporting Template and Competence Framework for Estate Surveyors and Valuers in Nigeria.

Odudu further said that the board has acquired parcels of lands in Abuja to build its permanent secretariat as well as vigorously pursuing land allocation in Lagos, Kano, Port Harcourt, Enugu, Ibadan and Yola for the same purpose.

He added, "The Board has launched the hard copies of the 2014 edition of the customized register of members and also officially uploaded the soft copy of the register on the Board`s website in 2015.'' He charged the new members to sustain the tempo of the past board and be an agent of positive change.

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ENERGY

ROADMAP TO POWER Power Sector Roadmap Is On Course - Fashola

T

he Minister of Power Works and Housing, Babatunde Raji Fashola (SAN) has disclosed that the 3 phase Roadmap embarked upon by the present administration in the sector is on course, adding that the Government is committed to the implementation of time lines and targets set in the document.

The Minister stated this when the House of Representative Committee on Power led by its Chairman, Hon. Daniel Asuquo paid an oversight visit to the Ministry in Abuja.

According to the Minister, the Ministry has set itself on the path of achieving incremental, stable and uninterr upted power supply to Nigerians. To achieve this, there was need to look into the expansion of transmission lines across the country and to complete some on-going generation projects. It has the possibility of energizing and stabilizing the grid, thereby increasing power supply.

He said Government is equally worried about lack of maintenance culture, which led to non - optimal performance from these plants. The position is relevant to the state of affairs in the 3 key nation's hydro plants of Jebba, Kainji and Shiroro. Through the assurance from donor agencies and multilateral organizations like the 26 | www.cedmagazineng.com November 2016

Japanese International Co-operation Agency (JICA), assistance where rendered for rehabilitation works which led to the recovery of substantial Megawatts of electricity on the grid.

The Government is conscious of the importance of transmission in the electricity value - chain. Unfortunately, what was inherited was a weak line, hence government is poised on strengthening the wheeling capacity, so as to ensure that more power is transported.

To this end, the Minister reeled out some critical transmission projects across the country as in Gusau, Kaduna, Enugu, Katsina and Alaoji He assured his audience that

significant progress have been recorded since the administration came onboard. With the realization of these critical projects, stability of the network would be guaranteed hence we would be able to sustain un- interrupted power supply.

The Minister observed that on assumption of duty, there was a number of lingering legal disputes that needed to be resolved mostly out of court. For instance, the disagreement between Enugu Electricity Distribution Company and Geometric Electric Company over Ariaria area of Abia state has been successfully tackled. Hence, it is expected that soon, additional 200MW of power would be made available to the national grid.

Also, it is to the credit of this administration that all disputes that have stalled the realization of the Mambilla Hydro project for over 3 decade have been resolved. Soon work will commence on the 3, 050MW project.

Reacting to the call for the reversal of the privatization of power assets, the Minister said that it will be impossible to reverse the sale as the exercise is just three years old, and needs time to mature.

On the other challenges facing the exercise like the payment of the remaining former PHCN staff, the minister assured the Legislators that government would verify and pay all outstanding staff. He also promised that government will assist Distribution Companies to recover their debts arising from unpaid bills from all customers including government agencies. He told the House Committee members that his job schedule does not include fixing of tariff. On the insinuation that he is in support of the increase, the Minister dismissed this, insisting that the fixing of tariff is a collective efforts of all stakeholders under the supervision of the Nigerian Electricity Commission (NERC) and not his ministry.

Earlier, Chairman, House Committee on Power, Hon Daniel Asuquo stated that the legislative arm of government is desirous of partnering with the Ministry in other that that the sector achieves success under Fashola's watch.

A

MagazIne PublIcatIon

GAS ON THE CARD Scottish Government reports show economic case for unconventional gas

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ACCESS DAKOTA

Trump win revives Keystone hopes, boosts Dakota Access outlook

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onald Trump's U.S. presidential election victory came as a positive surprise for pipeline proponents.

Energ y Transfer Partners' controversial Dakota Access Pipeline is likely to be the immediate beneficiary.

TransCanada Corp.'s Keystone XL project, rejected by the Obama administration a year ago, could be resurrected. A Republican-controlled government would likely expedite project approvals and permitting by regulators.

Trump has said he would reduce the federal government's role in energy and environmental policy, while encouraging more infrastructure projects including pipelines to better connect production with markets and consumers. Shares of Energy Transfer and TransCanada rallied on Wednesday.

"Obama killed the deal. Hillary wasn't warm to it at all," Bart Melek, the head of commodity strategy at TD Securities in Toronto, said of Keystone XL. "This is something that's accretive."

A year after President Barack Obama's refusal to approve the $8-billion Keystone XL project'>project to connect the Canadian oil sands with refineries on the Gulf of Mexico, the $3.8-billion

Dakota Access line to ship crude from the Bakken shale hasn't fared very well either.

The project is facing escalating opposition from environmental groups and has been stalled by the administration's pending review.

Profit Share Trump has said he'd approve Keystone XL-for a share of the profits.

TransCanada said it remains fully committed to building the line and is looking at ways to engage a Trump administration on the project's benefits, including a $3-billion boost to the U.S. economy, a total of 42,000 jobs and tens of millions of dollars in property taxes, according to an emailed statement. The Calgary-based pipeline giant's shares rose 3% in Toronto on Wednesday, the most since Jan. 22.

As for Dakota Access, if it hasn't received the go-ahead by the time Trump is sworn in, the new administration would be expected to grant it, said Christine Tezak, managing director of research at ClearView Energy Partners LLC in Washington.

The U.S. Army Corps of Engineers is unlikely to keep holding up the last leg of the project, said Ethan Bellamy, an analyst at Robert W. Baird & Co., in a note.

tudies into unconventional oil and gas by the Scottish Government clearly demonstrate the economic case for promoting exploration in Scotland while showing a pathway for other risks to be mitigated. The industry will participate fully in the consultation announced by the Scottish Government and believes that the case for lifting the moratorium on unconventional oil and gas development has been made.

Ken Cronin, chief executive of United Kingdom Onshore Oil and Gas (UKOOG) trade body, said, "The studies by experts including Health Protection Scotland, KPMG and the British Geological Survey, clearly demonstrate the case for lifting the moratorium on unconventional oil and gas development in Scotland.

"The experts show that the Scottish economy could benefit by over £11billion including up to £6.5-billion of spending in Scotland, creating over 3,000 much needed jobs from unconventional oil and gas development and meeting up to 18 years of current Scottish gas consumption. This excludes the additional and important economic benefits to the chemical industry in Scotland including Grangemouth. In addition, local communities could be expected to receive up to £1-billion in community benefits. The risks for issues like seismicity are said to be low, there is "inadequate evidence" of any detrimental health impacts and in all cases the risks can be mitigated by good industry practice - much of which is already in

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OIL AND GAS REPORT

OIL AND GAS REPORT

Starting Soon "We remain focused on completing construction of this important energy infrastr ucture project with the expectation it will be in service in the first quarter of 2017," Vicki Granado, a spokeswoman for Energy Transfer, said in an emailed statement.

The Army Corps hasn't made any changes to its review process and won't speculate on the effect of the election, Kamil Sztalkoper, a spokesman, said in a statement.

A revival of Keystone XL may help ease the pressure on Prime Minister Justin Trudeau's government to approve controversial pipelines projects to link the landlocked oil sands to the coast, such as TransCanada's proposed $13-billion Energy East line that has faced mounting opposition in Quebec. The Canadian Association of Petroleum Producers said it wouldn't comment on the politics of another country, but noted the U.S. is the industry's largest customer.

"Our challenge is getting that energy to the world and the only way we can do that is through more energy infrastructure, such as pipelines, which will enable us to deliver oil and natural gas to more

GAS ON THE CARD place - with industry guidance already published - and the strong regulation.

"We hope that the publication of these studies can lead to a reasoned debate across a wider audience about the future of the onshore oil and gas industry in Scotland. "Gas plays an important role in Scotland's domestic economy, with 79% of domestic heating provided by gas. In addition, industrial and commercial gas consumption makes up 43% of all gas consumed in Scotland. Scotland has the highest mean domestic consumption and also one of the highest commercial consumptions in the UK reflecting the industrial position of Scotland. In fact, in 2013 88% of all Scotland's energy came from either oil or gas.

"As an industry based on over 50 years of experience both onshore and offshore, we are confident that hydraulic fracturing can be done safely and 24

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SCHLUMBERGER INVESTMENT

MUTED DEMAND

Energy Transfer shares surged 11%, the most since Feb. 16.

America's natural gas supply rises to a record amid muted demand

Schlumberger, Ophir, Golar to develop $2-billion Fortuna FLNG project

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customers at home and abroad," Tim McMillan, the association's president and CEO, said in a statement.

Broadly speaking, a Trump administration will encourage oil and gas infrastructure, said Erika Coombs, an analyst at BTU Analytics LLC. The projects will continue to encounter obstacles and delays on the state and local levels, she said, but it'll be harder for opposition to get on the national stage.

"It's a step in the direction of more infrastructure getting built," Coombs said. "The opposition doesn't still have the same support from the government at the executive level." environmentally sensitively within the regulatory environment in Scotland. "We have had a well regulated industry in Scotland for many decades. We have drilled over 30 wells in the last 20 years.

One of the first hydraulic fractures in the UK took place in Airdrie nearly 50 years ago and fracking also took place inside the Glasgow city boundary in 1989 at Easterhouse.

"The oil and gas industry has made a huge contribution to the economy of Scotland. Onshore gas and oil will benefit the Scottish economy, not only directly, with jobs created through oil and gas extraction, but also indirectly, as oil and gas is a critical raw material for the chemicals industry at facilities such as Grangemouth. "The onshore oil and gas industry has also committed to a multimillion pound sterling program of benefits for local communities and stakeholders as well as boosting contributions to local councils.”

.S. natural gas stockpiles climbed to a record last week as warm weather curtailed demand for the heating fuel, according to a U.S. government report.

Natural gas inventories rose by 54 Bcf in the week ended Nov. 4 to 4.017 Tcf, U.S. Energ y Infor mation Administration data showed Thursday.

That topples the high reached last November and breaks a seven-month streak of below-average storage gains.

Gas expanded above historical levels for the first time since the spring on the back of unseasonably warm weather and an up tick in drilling in the nation's prolific shale reserves. The warmerthan-normal start to the heating season, when consumption typically ramps up, has allowed inventories to close the gap to the five-year average, dampening prices.

"We snapped it, blew right through it," Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. "We will probably extend this all time record, it's not a good situation."

Gas futures fell 7.3 cents, or 2.7%, to $2.617/MMbtu at 10:57 a.m. in New York. Prices are down about 13% this month.

The storage gain beat analysts' estimates that called for an increase of 51 billion for the week and the five-year average increase of 38 billion.

"This will be a headwind moving forward," Yawger said. "I don't have any weather in my forecast; I don't see any place in a deep freeze.”

O

OIL PRESSURE

Oil output surge piles pressure on OPEC as IEA warns on price

T

he cost of failing to reach a deal this month is rising for OPEC as rival producers are set to revive production in 2017, the International Energy Agency predicted.

Crude prices may retreat again amid "relentless global supply growth" unless the Organization of Petroleum Exporting Countries enacts "significant" output cuts, the IEA said in its monthly report on Thursday. Non-members such as Brazil, Canada, Kazakhstan and Russia will raise output by 500,000 bpd in 2017, after enduring their biggest slump in more than two decades, the agency said.

OPEC will meet on Nov. 30 to finalize the details of a production cut members agreed in Algiers in late September. While the accord initially helped revive crude prices to more than $50/bbl, oil has since retreated on doubts the agreement will be fulfilled as key members Iran and Iraq argue that they should be exempt from output restraints. Russia has said it would be willing to freeze production if OPEC can agree to cuts.

"If no agreement is reached and some individual members continue to expand their production then the market will remain in surplus throughout the year," said the Paris-based agency, which advises consuming nations on energy policy. "If the supply surplus persists in 2017, there must be some risk of prices falling back."

Non-OPEC Supply Oil futures climbed about 16% in the two weeks after OPEC's Sept. 28 decision in Algiers to reduce output, a move that ended the organization's two-year policy of pumping without limits to pressure its

competitors. Prices reached $51.93/bbl in New York on Oct. 19, though have since slipped to near $45 on growing skepticism about the deal.

The IEA boosted estimates for supplies from outside OPEC in 2017 by 110,000 bpd due to an improved outlook for Russia, which is set to add 190,000 bpd next year. Non-OPEC supply will total 57.2 MMbpd next year, according to the report.

While the oil market would "move from surplus to deficit very quickly in 2017" if OPEC implements its Algiers accord, this would take "significant cuts," the agency said.

OPEC decided in the Algerian capital to reduce output to a range of 32.5 MMbpd to 33 MMbpd. Reaching that target would require a reduction of 800,000 bpd to 1.3 MMbpd from the levels pumped in October, the IEA report indicates. Even if they perform such a cutback, inventories that accumulated during the years of oversupply "will take time to deplete."

The group's 14 members raised production by 230,000 bpd to 33.83 MMbpd in October as Iraqi output reached a record and Nigeria and Libya restored halted supplies, according to the report.

Global oil demand growth will remains on track to ease this year, to 1.2 MMbpd from the five-year peak of 1.8 MMbpd in 2015. There is "currently little evidence to suggest that economic activity is sufficiently robust to deliver higher oil demand growth" in 2017, the IEA said.

phir Energy and OneLNGSM, a joint venture between subsidiaries of Golar LNG and Schlumberger, have signed a binding agreement to establish a joint operating company (JOC) to develop the Fortuna project'>project, in Block R, offshore Equatorial Guinea.

OneLNG and Ophir will have 66.2% and 33.8% ownership of the JOC, respectively. The JOC will facilitate the financing, construction, development and operation of the integrated Fortuna project and, from final investment decision, will own Ophir's share of the Block R licence and the Gandria FLNG vessel. This structure aligns investment across the value chain and provides a framework to promptly deliver a fully financed project.

The final investment decision is now expected to take place in first-half 2017, with first gas anticipated in first-half 2020. Initial offtake is expected to be 2.22.5 mtpa for a duration of between 15 and 20 years, which will monetize around 2.6 Tcf of the discovered resource.

The total capital expenditure expected for the integrated project to reach first gas is approximately $2 billion.

Nick Cooper, chief executive of Ophir, said, "Formation of the Fortuna JOC provides the framework for FID and clear line of sight to first gas. This progress is due to the innovative partnering between OneLNG and Ophir, the quality of the resource base, the excellent project'>project economics and support from the government of Equatorial Guinea.”

www.cedmagazineng.com November 2016 | 25