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Market access, packaging, finance, key to export competitiveness – experts

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LAGOS-Diversifying the Nigerian economy away from oil would require paying more attention to making agriculture and value-adding manufacturing export more competitive.

Good market penetration and effective packaging on the part of the exporter, as well as adequate financing from  banks and government would be key to achieving this, stakeholders at the BusinessDay-organised seminar entitled, ‘Agric Transformation Agenda: The Role of Non-oil Export in Economic Diversification,’ have said.

Fidel Anyanna, programme director, Dalehan Limited, who also doubles as CEO, Horeb Safety & Security Services Limited, said export financing needs could be met through advance payment for overseas buyers, internally generated funds, credit from banks to other financial institutions, as well as  credit provided by the government in the buyer country.

Anyanna added that Nigerian banks’ risk-averse behaviour often resulted in small scale firms being burdened with high requirements that constrained their access to loans and financial services.

He observed that exporters needed to know that banks often looked for collateral or security for proposed lending, as well as credit worthiness and capacity of the buyer to execute the orders within the stipulated delivery schedules.

He listed financial viability of the export contract, status of the buyer’s country, along with political and economic conditions in the buyer’s contract and compliance with export trade control and exchange control regulations in force, among prospect indicators.

He said while there should be adequate infrastructure and institutional support (incentives) from the government, intending exporters should increase their access to market information and garner good export training to develop capacity to cope with the strenuous demands of the international market.

“There is the need for exporters to train on packaging and standards. The international market is based on standards, not sentiment.  When you package a product so well, even someone who does not want to buy can be forced to. Again, most farmers produce without a focus as to where the products are going,” he stressed.

Joseph Idiong, director-general, Association of Nigerian Exporters, said his group had thought it wise to propagate export financing, adding that farmers must be conscious of the fact that producing for export required different levels of technology, raw materials and training.

Ivana Osagie, managing director/ CEO, Notore Seeds, pointed out that the problems facing the agric export sector could be mitigated by clustering small-scale farmers and linking them up with large-scale players, to bring them to an understanding of key processes and procedures.

According to her, agriculture must be understood as a science, rather than an art, as people from research institutions or academic backgrounds needed to be instructed on practical agricultural processes, while more should be done to mechanise agriculture, encourage internal effectiveness and economies of scale.

She further observed that Nigerian banks must think of innovative ways of encouraging financing as it is done in other climes such as the United Kingdom and other countries in Europe.

“By using the right fertilizer, applying the best practices and approaches, one metric ton can be increased to the value of 10 metric tons,” she said.

Frank Aigbogun, publisher/CEO, BusinessDay,said though people often got frustrated with the way things were done in the country, they must begin to realise that things were gradually changing, even though some might consider the changes slow and halting.

He added that the likes of Notore and the Bank of Agriculture, which were doing a lot to diversify the Nigerian economy and increase non-oil exports should be emulated by other institutions.

BUSINESSDAY-

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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