Kune Igoni is the director of events, West African Exhibitions and Conference (WAEC), a wholly indigenous company, organising the forthcoming 4th Upstream and Downstream Oil and Gas Exhibition and Conference. In this interview with FEMI ASU, he speaks on the power sector reforms, the menace of crude oil theft and pipeline vandalism, the steel industry, among others. Excerpts:
Looking at the power sector, do you think the implementation of the reforms can be successfully actualised?
The power sector has undergone drastic reforms in recent times. No doubt, we are all aware that the distribution and generation companies have been sold and handed over to private hands. The transmission company of Nigeria (TCN) is still being held by the government, but managed by a consultant called Manitoba Hydro International (MHI) at the behest of the government.
As part of effort to ensure the successful implementation of the reforms, the government is setting aside $300 million partial risk guarantee warehoused in the central bank to protect investors from potential risks and shock and to ensure a good return on investment.
The government is not stopping at that. It is also providing tax relief and waiver for importers of power equipment to serve as incentive for driving the growth of the generation, transmission and distribution sub-sectors.
I am also aware of the intention of the government to train engineers for the power sector through National Power Training Institute of Nigeria (NAPTIN). The power sector, we are told, will require about 17,500 technical manpower including linesmen, cable jointers, fitters and so on to aid the addition of megawatts to the grid. Besides, about 8,244 engineers and technologists are expected to be needed to support our generation drive.
All these actionable efforts by the government I am convinced are designed to aid in the realisation of the objectives of the power sector reform in the first place. So I think the reform is right on course.
What do you make of the potential threat to the reform process, particularly the constraint of gas shortage to fire the power plants?
I think the issue of post-privatisation challenges is totally not peculiar to us as a country undergoing reform. It is always going to be as long as we want to change the status quo. For any reform, there are bound to be some teething problems at the inception. The issue of gas shortage to the power plant for instance is a serious threat but I believe we will get over it with time.
The government is doing its best to make gas price attractive for gas producers to invest in our vast gas potentials. A new price regime I believe tends to incentivise them to produce the gas for power producers to fire their power plants. So I think with this, the problem of gas shortage would soon be a thing of the past. But then, a lot of this disruption in supply too is caused by some unscrupulous individuals. When gas pipelines are tampered with it is certainly not the government that is responsible for this dastardly act. It is obviously an individual that will go and vandalise gas pipelines due to ignorance and cruelty. So, a lot depend on our attitude to taking care of government assets. It is only when we are responsible and ready to protect our assets that we can reap the full benefits of the reform and ultimately enjoy adequate and stable power supply in the country.
Steel is critical to the power sector. What is your take on the state of the steel industry in the country? How can we get things right with the industry?
The steel industry all around the world is an agent of industrialisation. There is no how a country can get industrialised if it doesn’t develop its steel sector. So, the sector deserves to be given priority attention. As it stands, nothing appears to be working in the sector, no thanks to obvious lopsidedness in policy and inactivity. Although we might have made so many mistakes in the past, but I think there is now a fresh opportunity to correct all these lapses. We must be able to get the privatisation of the sector right if we are to take the sector to the next level.
The recent news that the government was making effort to revamp the Ajaokuta Steel Complex to boost the economy of Kogi State and that of the country is indeed a cheering one. I commend the government for taking this decision, but I want to implore the government to go the extra mile to ensure that the steel and solid minerals sector was repositioned for growth.
With the increasing spate of crude oil theft in the country, what do you think is responsible for the festering of the menace and how do you think it can be curbed?
The menace of crude oil theft and pipeline vandalism is really a debilitating one, I must confess. If you ask me, I think it has taken a new dimension. Just recently, the Minister of Petroleum, Diezani Alison-Madueke was quoted to have said that between 100,000 to 300,000 barrels of crude oil is being stolen every day in Nigeria in the past three years, claiming that theft and piracy require regional, continental and global coordination to track illegal money from crude oil theft. I would like to corroborate her by saying that the menace has festered for too long because of the international link.
As for the way out, I think she got it spot on when she said one of the ways to stem the tide of the menace was for the country to work with other countries to dry up the market for stolen crude oil.
I also agree with her position that to curb pipeline vandalism and crude oil theft, pipelines would have to be buried further underground through Horizontal Direct Drilling (HDD) technology.
As a matter of fact, this year’s event intends to take a look at this new technology vis-a-vis its application and adoption in the industry.
Aside from the oil and gas conference, two other conferences on power, steel and housing and agriculture will be held that day. The conferences will be held in Abuja from August 26 – 28, 2014.
Why are the three events being held simultaneously, and what informed the themes that you chose for the conferences?
The theme for the power, steel and housing conference is ‘The New Face of Power, Steel and Housing Infrastructure in Nigeria,’ while the theme for the oil and gas expo is ‘Opportunities in the Nigeria’s Oil And Gas Industry.’
These themes are apt as they were carefully chosen. The theme for the power, steel and housing conference aims at challenging stakeholders in these sectors to collaborate on issues and technologies in relation to policies and development as well as presenting an opportunity for our great country to showcase its strength and opportunities in achieving growth.
As for the oil and gas expo, the theme is designed to encourage the opportunity to build alliances with potential investors in the West African sub-region, with the anticipated inflows of foreign direct investment into the regional economy.
Besides, the theme also intends to focus on the evolution of modern technology and equipment in this highly dynamic industry as well as wide range of industry activities cutting across offshore, onshore and midstream operational activities.
On why we decided to hold the events on the same day, we believe doing so enables us to manage the events effectively and efficiently. Besides, participants including exhibitors, delegates and visitors are able to get a wider and broader platform for networking opportunities to aid conclusion of business contracts and deals at the events. We are also able to handle the issue of security as we are making adequate preparation to ensure maximum security for the participants. So, we can proudly say everything is under control to ensure that this year’s events are hitch-free like the previous ones.
Do these events enjoy government support and what is your target audience?
Of course, we have numerous endorsements for our events, including both international and local endorsements. The Federal Government, Federal Ministry of Industry, Trade and Investment, the Nigerian Investment Promotion Commission, the Electric Power Foundation and the Niger Delta Power Holding Company of Nigeria all give their approvals for our power, steel and housing expo. For our oil and gas expo, endorsements are from the National Petroleum Investment Management (NAPIMS) Organisation of Petroleum Exporting Countries (OPEC) and the Petroleum Technology Development Fund (PTDF). In fact, the Department of Petroleum Resources (DPR) is the latest to give its backing for our upstream and downstream expo. Hauwes Technologies and other major players in the industry have agreed to sponsor our event while the Nigerian National Petroleum Corporation (NNPC) is also in full support. These endorsements are indications that our events are being recognised and regarded by the industry stakeholders and regulators.
On the issue of our targeted audience, we are expecting an audience of over 1500 international exhibitors, delegates, speakers, businessmen and visitors for our power, steel and housing expo while our upstream and downstream expo is expected to attract more than 1000 international exhibitors, conference delegates and visitors. So, without doubt it promises to be an eventful time during our events.
