MTN Loses Battle Against Monopoly Charges in Ghanaian Courts

MTN

The woes of Africa’s largest telecoms firm MTN continues with the Accra High Court dismissing the telcos case seeking the court to quash the decision by the National Communications Authority (NCA) to classify it as a significant market player (SMP) in the telecommunications industry in Ghana.

The court early this month dismissed MTN’s case and also awarded a cost of GH¢10,000 against the giant mobile network company. The decision means that the NCA can now take remedial measures against MTN in order to promote competition, protect other mobile network operators and consumers. The legal action by MTN, which challenged the processes that led to it being classified by the NCA as a significant market player (SMP) in the telecommunication industry, commenced at the Commercial Division of the Accra High Court. MTN had gone to court with a judicial review application urging the court to quash the NCA’s decision with an argument that the regulator failed to give it a hearing before classifying it as an SMP.

The NCA, however, insisted in its affidavit in opposition to the application that at all material times, MTN was aware and participated in the process that led to it being classified as an SMP.

Read also:Nigerians Have ‘Forced’ Ghana to Review Controversial Investment Law

Pursuant to Section 20 (10) of the Electronic Communications Act, 2008 (Act 775), on June 9, this year, the NCA classified MTN as an SMP after the regulator determined that the mobile network operator controlled more than 57 per cent of the voice market share, as well as more than 67 per cent of the data market share.

Act 775 allows the NCA to take “corrective measures” against an SMP in order to promote competition and protect other mobile network operators and consumers. In view of that, the NCA decided to “review and approve all charges by MTN”, set caps on what MTN can charge for its services, and also impose a 30 per cent interconnect rate for two years in favour of other “disadvantaged operators.”

Read also:Ghanaian Startup Nokwary Wins Ecobank’s 2020 Fintech Challenge

In an affidavit in support of the motion for judicial review deposed by Mr Serlom Adadevoh, the CEO of MTN Ghana, the company averred that the “failure of NCA” to give it hearing was a violation of the rules of natural justice, as well as Section 25 of the National Communications Act, 2008 (Act 769) which enjoins the NCA to “observe reasonable standards of procedural fairness.”

According to MTN, the “failure of the respondent (NCA)” to give it a hearing renders the SMP classification null and void. “The respondent (NCA) by not giving applicant (MTN) a hearing prevented respondent from making an informed decision, in that applicant was denied and prevented from making any submission before the decision to declare it a SMP was made,” it said.

The mobile network operator, therefore, wanted an order of certiorari from the court quashing the decision of the NCA to classify it as an SMP. Also, MTN sought an order of prohibition restraining the NCA from implementing the decision to classify it as an SMP and also circulating the decision.

In its affidavit in opposition, the NCA argued that the classification of MTN as an SMP was in compliance with Act 775.It was the contention of the NCA that it had fulfilled all the requirements under Section 20 (13) of Act 775 including the gazette notification dated June 9, this year.

Read also:ECOWAS to Mediate on Trade Dispute of Nigerians in Ghana

Also, the NCA said it had adequately engaged MTN on the implementation of its new status as an SMP. Again, the regulator argued that the process leading to MTN being classified as an SMP started in 2014 when the NCA held discussions with all mobile network operators (MNOs) on regulation of competition in the telecommunication sector.

According to the affidavit in opposition, pursuant to the engagement with the MNOs and in order to gather adequate information, the NCA, in November 2015, hired a global telecom consultancy firm known as Analyses Mason, to “undertake a study to determine whether any particular operator was a SMP.”

“The said study had the participation of the applicant Scancom PLC (MTN Ghana) at all material times. It is therefore untrue for the applicant to claim that it had not been heard in the process,” the affidavit in opposition contended. It was the case of the NCA that the study by the consultant identified MTN as an SMP with more than 46 per cent of the telecommunication market share as of 2014.

Armed with that information, the NCA said in October, 2019, it commenced another study by engaging the MNOs and using information supplied by them, which again confirmed MTN as an SMP.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

How Nigeria Lost N300bn to Gas Flaring in 2020

gas flaring

The efforts by the Nigerian government to curtail gas flaring across its oil producing communities has had a huge toll on the economy, as the country flared 225.1 billion standard cubic feet of gas, (bscf) between January and July 2020. The monetary value of the burnt gas in the international market is $787.7 million (about N299.33 billion). This comes against the backdrop of the huge revenue losses arising from the impact of the outbreak of Coronavirus, COVID-19, pandemic, which crashed both volume and price of crude oil sales.

In a study carried out by the National Environmental Economic and Development Study, NEEDS, the environmental cost of gas flaring in Nigeria is $94 million (about N35.7 billion) yearly. The volume of gas flared was an equivalent of 12.0 million tonnes of carbon dioxide emission. A report obtained by Energy Vanguard, last week, from the Federal Government’s Gas Flare Tracker, stated that the 225.1 bscf of gas flared by the oil and gas firms in the first seven months of 2020 was capable of generating 22,500 gigawatts/hour of electricity.

Read also:Africa’s Oil and Gas Experts Hold’s Webinar on Post Covid-19 Transition and Investment

The oil companies responsible for the gas flares are expected to pay fines totaling $450.1 million, an equivalent of N171.04 billion, but no information in the report indicates they have paid any fine for the previous gas flares amounting to several billions of U.S. dollars. Giving a breakdown of the volume of gas flared in the period under review, the report stated that 136.0 bscf of gas was flared onshore, while 89.1 bscf of gas was flared offshore.

On a month-on-month basis, the report stated that in January 2020, 40.03 bscf of gas was flared; 32.15 bscf in February; 37.61 bscf in March, while 38.84 bscf, 36.98 bscf, 37.21 bscf and 2.24 bscf of gas was flared in April, May, June and July 2020, respectively. Petroleum Nigeria Limited) flared 8.1 bscf from OML 56.

Read also:Equatorial Guinea: Salary difference, The Black Hole in the Pocket of Oil and Gas Companies

Famfa Oil flared 7.6 bscf of gas from Oil Prospecting Licence, OPL, 216; Shell Petroleum Development Company, SPDC, flared 6.9 bscf, 6.7 bscf and 5.4 bscf of gas from OML 11, OML 29 and OML 18 respectively; while Nigerian National Petroleum Corporation’s, NNPC, upstream subsidiary, Nigerian Petroleum Development Company, NPDC, flared 4.6 bscf of gas from OPL 091.

In its report – ‘‘Nigeria’s Flaring Reduction Target: 2020’’ the World Bank, stated: “With almost 8 billion cubic meters of gas flared annually according to satellite data, Nigeria is the seventh-largest gas flaring nation in the world. At the same time approximately 75 million Nigerians lack access to electricity.”

Read also:Cape Verdean Fintech Startup Makeba Raises $246k From Crowdfunding

Similarly, there are reports that show that Nigeria continues to flare commercial gas because of many issues and problems, including lack of adequate investments in gas and related sectors, especially power. Others include much-associated gas, which is produced along with crude oil, over-reliance of oil and delay in the passage of the Petroleum Industry Bill, comprehensive legislation, planned to restructure, encourage investments and bring about more transparency and accountability in the industry. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

America’s Kariya Energy to Acquire Oil and Gas Assets in Africa

Kariya Energy

North American based Kariya Energy is prospecting huge investment opportunities across different Africa countries. The company is putting its technical and financial strength in a position to bring Canadian and American ingenuity into the growing oil and natural gas market in Africa. Kariya Energy says that it will enter into various definitive agreements to acquire upstream and midstream oil and gas assets in African countries.

Kariya Energy’s technical and financial strength puts it in a position to bring Canadian and American ingenuity into the growing oil and natural gas market in Africa. Kariya Energy and its management team’s engagements and experience with various deep and shallow water projects in Mozambique, Nigeria, Senegal, Congo DRC, Congo Republic and Gabon makes these countries great investment possibilities. After spending 16 months reviewing data from various IOC’s, Kariya Energy will be pursuing acquisitions of various exploration and development plays either through Farm-in deals or operatorship through risk service contracts, or direct negotiations with sovereign governments.

Read also:Uncertainty in Oil and Gas Drags Algeria’s Economy Down

Kariya Energy will continue with its current and ongoing support by providing technical, financial, and operational support for oil and gas companies currently operating in Nigeria, Congo and Gabon. Kariya Energy’s strategy has focused on the innovation and evaluation of new opportunities for resource extraction with great technology that has produced results. Kariya Energy will pursue profitable small-scale LNG projects across Africa, a niche that its leadership has been skilful in building and making it profitable and scalable, boasting significant potential across the African market.

With its technology, Kariya can turn around African small-scale LNG and work with partners in addressing off-grid power generation for industrial and residential needs in remote locations and deal with issues around energy poverty.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Libya’s Oil Conflict has International Political Goals – NOC Chairman

The ongoing crisis in Libya which has brought the nation on its knees is the focus on a regional summit aimed at finding a lasting solution to it. Speaking on the crisis, Libya’s National Oil Corporation (NOC) chairman Eng. Mustafa Sanalla has warned that the ongoing conflict in the country’s oil sector is being engineered by international interests pursuing selfish goals. He made this known at the Middle East Mediterranean Summit where Mr Patrick Pouyanné Total Chief Executive Officer also participated in a panel discussion on the latest developments of the situation in Libya, following the escalation of tension and conflicts and the collapse of the oil.

Libya’s National Oil Corporation (NOC) chairman Eng. Mustafa Sanalla
Libya’s National Oil Corporation (NOC) chairman Eng. Mustafa Sanalla

During his speech, Mr Sanalla stressed that the ongoing conflict on oil facilities is an international political conflict rather than an internal Libyan dispute over the distribution of revenues. A number of countries benefit financially from the absence of the Libyan oil from the global market but it suits them to use Libyan puppets, supported by foreign mercenaries, to actually implement the blockade. The vast majority of Libyans themselves want to see a resumption of oil production, accompanied by genuine transparency on all sides on revenues and spending.

Read also:Africa’s Oil and Gas Experts Hold’s Webinar on Post Covid-19 Transition and Investment

He also stressed that the Libyan citizen was the most affected by the illegal blockades in the eastern and central region since January, and the biggest evidence of this is the deterioration of the service side, the continued lack of liquidity and many other problems that the Libyan citizen suffers from on a daily basis.

Read also:Equatorial Guinea: Salary difference, The Black Hole in the Pocket of Oil and Gas Companies

Mr Pouyanné praised NOC’s positive role and its efforts to ensure continued production and export of oil and gas despite the ongoing wars in Libya.He also expressed his concern about the military presence around oil facilities and ports, especially in the event that fighting erupts between the conflicting parties there, which could produce a major disaster with significant civilian loss of life. He stressed the need for all sides to abstain from fighting and to allow NOC to resume production as a first step towards launching a political dialogue.

 At the end, Eng. Mustafa Sanalla said: “We, at NOC, are doing everything we can within the limits of the law to lift the blockade and facilitate the resumption of oil exports. We will then have a lot of work to do to repair damaged facilities. We will need international help. Still, we have good partners, and if the appropriate security conditions are provided, there would be no reason to prevent us from increasing production to more than 2 million bpd within a few years.”

Read also:Obasanjo Urges Africa to Collaborate for a Strong Oil and Gas Future

The panel discussion was attended by Mr Giampiero Massolo, President of the Italian Institute for International Political Studies, Ms Claudia Sosai, civic activist and Mr. Luca Fasani, journalist. The summit brought together 100 leaders and influencers from North Africa, the Middle East and Europe to deal with the challenges the region is going through and discuss possible solutions to those challenges.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

IFC Launches “Edge” for Green Building Certification in Namibia

International Finance Corporation (IFC), the World Bank Group’s arm for private sector development is partnering with Bank Windhoek to launch Excellence in Design for Greater Efficiencies (Edge) software. This software will enable the certification of green buildings to facilitate their financing.

Ruan Bestbier, sales and sustainability analyst at Bank Windhoek
Ruan Bestbier, sales and sustainability analyst at Bank Windhoek

How to certify sustainable construction in Namibia? The International Finance Corporation (IFC), a subsidiary of the World Bank Group, seems to have found a local solution that can be adapted to other countries on the African continent. As part of a partnership with Bank Windhoek, the IFC is launching “Excellence in Design for Greater Efficiencies” (Edge). This software is designed to facilitate the certification of green buildings, an important step in the quest for bank financing.

Read also:Unprecedented Number Of Startups Apply For DIFC FinTech Hive’s Latest Pioneering Accelerator Programme

This initiative, which is revolutionizing the real estate sector, also aims to compensate for the lack of a local certification body. “Edge is a measurable way for builders to optimize their designs, leading to a more bankable and marketable product,” says Ruan Bestbier, sales and sustainability analyst at Bank Windhoek.

The Edge software allows you to evaluate the solutions implemented to make buildings green. These solutions can reduce the building’s electricity consumption by implementing an energy efficiency system or a clean energy production system to reduce the carbon footprint of the house.

Read also:Morocco’s Digitalization Reforms Gets World Bank’s $500 Million Nod

Edge also takes into account the thorny issue of water, through the installation of low-flow faucets to reduce the home’s water consumption, or the implementation of wastewater management systems. With the software, certified green real estate projects will have to achieve an expected 20% reduction in energy and water consumption compared to conventional buildings. It will also take into account the use of green building materials.

Most importantly, the system has been designed to provide opportunities for energy-efficient building design. These proposals will depend on the initial configuration of the building proposed by the project developer, as well as the geographical location of the future building. Edge is expected to primarily benefit clients and stakeholders in the construction industry.

Read also:Cape Verdean Fintech Startup Makeba Raises $246k From Crowdfunding

The implementation of this digital green certification solution is part of the on-going Green Obligation program in Namibia. Through this incentive mechanism for financing sustainable development initiatives, Bank Windhoek has mobilized more than $4 million to finance clean energy projects for the private sector.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

A first look at the E-Custom Concession By Chido Nwakanma

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed

After years of doodling on the prospect, Nigeria on September 2 voted for automation of processes at the ports as the Federal Executive Council approved a 20-year concession for the E-Custom project by a consortium of firms. The project attracts a headline figure of $3.1b, but the country would not need to spend a kobo. The concessionaire would invest the sum over the 20-year lifespan of the Public-Private Partnership project.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed

Instead of spending, the Federal Government says the project will generate revenues in multiples of the approved expenditure. Finance, Budget, and National Planning Minister Zainab Ahmed said FEC approved the project following a memo she presented to the Council. She said: “The purpose of the memo we presented to Council was for a project that will enable the complete automation of the Nigeria Custom Service processes and procedures using the application of information technology in all aspects of Customs administration.”

Read also:https://afrikanheroes.com/2020/09/03/nigerias-bua-group-partners-axens-of-france-for-mega-refinery-project/

Minister Zainab Ahmed added: “So, Council today ratified Mr President’s approval for the PPP concession for 20 years to Messrs E-Customs HC Project Limited as a concessionaire for the delivery of customs modernisation project.“This is a project that will not have a direct cost to the government. The investors are providing the financings, and this revenue will be deployed in three phases. They will look over the investment in the concessionary period of 20 years.”

Like most people, I prefer to take these huge figures in byte sizes. Renowned Japanese consultant Kenichi Ohmae advised in The Mind of The Strategist that we break down these things into their constituent units for clarity, then rearrange them.

Read also:https://afrikanheroes.com/2020/09/02/stakeholders-worry-over-delays-in-nigerias-petroleum-industry-bill-pib/

What then is the simple arithmetic of the E-Custom concession?

The Federal Government has approved a cost of $3.1b for the project. The breakdown is a capital investment of $1.2billion in three phases over three years or the average of $400million annually. On the cost side, the government approved for the concessionaire operational cost of $1.9b over 20 years. It translates to a handsome $95million annually.

What does Nigeria get in return?

The projection is that the concession will yield $176billion in 20 years. On paper, this is excellent. It translates to $8.8billion or N3.5trillion annually. In contrast, the Nigeria Customs Service projects revenue of N957billion for 2020. At the exchange rate of N400-$, it will fetch $2.39billion.

The Nigerian Customs Automation Scheme, led by Bionica Technologies, is a presidential initiative on customs modernisation, e-customs project, and the establishment of a digital/paperless customs administration. It will change the mode of administration and results from the running of Nigeria’s 82 border stations significantly. Yes, 82 customs points in Nigeria!

Read also:https://afrikanheroes.com/2020/09/05/nigerians-have-forced-ghana-to-review-controversial-investment-law/

The Customs Automation Scheme will deliver a single-window model of cargo clearance. Experts say the benefits include paperless customs administration, E-payment of customs duty, E-container loading, and electronic risk-board inspection. There is also a single platform link to all other government agencies and E-permit exchange among operators.

The scheme will reduce delays, bottlenecks and corruption within the ports. More crucially, it will increase productivity, national security and revenue generation by the Customs. Bionica Technologies W.A. Limited is the lead partner of the consortium to manage the concession. Other partners include Bergmans Security Consultant and Supplies Ltd, Paramount Group, Huawei Technology, Smiths Detection, Larsen & Toubro Group and Nuctech of China.

Read also:https://afrikanheroes.com/2020/08/30/why-world-bank-suspended-ease-of-doing-business-rankings/

President Muhammadu Buhari approved the concession in September. It follows the success of the consortium in a competitive bidding process conducted in 2016. Ninety-four (94) companies responded to the request for bids by the Nigeria Customs Service. The service pre-qualified 15 companies and invited them to make presentations on their solutions. Bionica Technologies W.A. Limited topped.The Nigeria Customs Service commenced a modernisation process in 2013.

 The goal remains to change the narrative of poor or under-performance associated with the service. The Customs Automation Programme will guarantee the evolution of an integrated border management module with a centralised and automated Customs Risk Management system. The system would run real-time scanning. It will also ensure full automation of all customs procedures and business. Integral to the system is the complete automation of Customs operations using the latest smart technologies supplied by Original Equipment Manufacturers. There would also be strategic capacity development for the personnel of the service. Stakeholders in the maritime sector agree on the imperative of leveraging technology to drive efficiency and productivity at the ports. They support the programme introduced in 2016 as part of the seaport reform plan adopted by the Federal Executive Council.

Dr Dakuku Peterside, Director-General of the Nigerian Maritime Administration and Safety Agency affirms that port automation and digital solutions are potential game-changers not only for cargo throughput but also profitability. Peterside cites a global benchmarking study conducted by SAP which found that ports that leverage technology to drive productivity improvements enjoy 36% higher operating margins than their peers. The result informs part of the resolve of the Federal Government to institute a single-window operation in Nigerian ports.

Read also:https://afrikanheroes.com/2019/08/02/president-buhari-farewell-audience-with-the-outgoing-zimbabwe-amb-aug-1-2019/

The NCS has been modernising since 2013 and has made some remarkable progress. For instance, it announced in 2019 increased revenue of N1.125trillion due to electronic payment of duties and taxes generated from January to October 2019. The Bionica Consortium asserts that a fully automated system would increase the revenue exponentially.

Job creation is another feature of the port automation programme of great interest to stakeholders. It will also minimise smuggling as well as build partnerships with investors. There is a guarantee of external finance having no direct cost to the NCS for all projects. It is pertinent to note that there is no linkage between the over N30 billion in the comprehensive import supervision scheme accruals which are in the custody of the Central Bank of Nigeria, CBN and the concession scheme.

The 20-year concession arrangement provides latitude for long-term planning. Various ports around the world have successfully run similar programmes. Success stories include Singapore, China, Qatar and Venezuela.

We could not ask for a better deal. Will Nigeria allow it to work? Is it optimal? Will it exist over the 20 years or will a new administration throw it out? Experts in that field will let us know in the days ahead, particularly given that it looks alluring ab initio. The E-Customs Concession comes at a time the government is considering various other concessions for airports and other infrastructure. Will it create jobs or eliminate them? The application of technology has worked both ways, but which will it be for Nigeria?

Chido Nwakamma is of The Lagos Business School.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Cameroon’s Rio Del Ray Basin Holds 5.3m Barrels of Oil

The Cameroonian National Hydrocarbons Corporation (SNH) has said that its Anglo-French partner Perenco estimates its oil reserves in the Rio Del Rey basin at about 5.3 million barrels. According to the Corporation, simultaneous drilling operations were launched in three development wells in the Tiko Marine field on February 28, 2020. The campaign ended with the completion of the well ‘SKM004’ and the reserves identified in the three wells were about 4.7 million barrels for an estimated daily production of 2,450 barrels.

In the Ekoundou Marine concession, Perenco Rio del Rey launched drillings in the well “EKM-061ST” on January 14, 2020, and completed the operations on February 8, 2020. The same day, it started drilling the well “EKM-53ST” from the rig-lug platform in the Ekoundou Marine concession and completed it on February 18. In that same concession, it drilled the well “EKM-055ST” at a soil depth of 1,679 meters. The additional reserves of the operations were 0.6 million barrels.

Read also:Uncertainty in Oil and Gas Drags Algeria’s Economy Down

However, because of the coronavirus pandemic, all the drilling campaigns were suspended in March 2020. The only operations it maintained are production activities performed by a reduced team.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Egypt, Cyprus intensify discussions over joint gas pipeline project

Egyptian and Cypriot officials have intensified discussions over preparations for a joint gas pipeline project aimed at transforming Egypt into a regional energy trade hub, a government source has revealed. This agreement, according to the source will be a joint scheme that would see natural gas from the offshore Aphrodite gas field in Cyprus piped to liquefaction plants (which convert gas into a liquid state) in Egypt for re-export to European countries and for use in local markets.

Egyptian Petroleum and Mineral Resources Minister Tariq Al-Mulla

Previous government statements have said that Egypt would start receiving Cypriot gas during 2022. Despite major disruptions to many global development projects due to the coronavirus disease (COVID-19) pandemic, the Egyptians and Cypriots have remained confident of implementing the initiative to schedule.

The negative impact of the COVID-19 outbreak on national economies around the world will force many countries to act quickly to compensate for losses, leading to an upswing in demand for energy to drive industrial growth, the source said.Egypt and Cyprus signed an agreement on Sept. 19, 2018 to establish a direct marine pipeline.

Read also:Egypt’s Food-tech Startup Ordera Secures Six-figure Seed Funding

During a virtual meeting, Egyptian Petroleum and Mineral Resources Minister Tariq Al-Mulla and Cypriot Minister of Energy Natasa Pilides discussed cooperation between the two countries in the field of oil and natural gas and ongoing collaboration under the regional EastMed Gas Forum platform.Egypt has two natural gas liquefaction plants, one east of Alexandria at Idku owned by Egyptian Liquefied Natural Gas, and the other in the port city of Damietta belonging to the Spanish-Italian Union Fenosa.

Cypriot Minister of Energy Natasa Pilides
Cypriot Minister of Energy Natasa Pilides

The government’s Ministry of Petroleum and Mineral Resources contributes to the Idku plant through the Egyptian Natural Gas Holding Co. (EGAS) by 12 percent, the Egyptian General Petroleum Corp. (EGPC) also by 12 percent, Shell by 35.5 percent, and Malaysia’s oil and gas company Petronas with 35.5 percent. French multinational Total now contributes about 5 percent to the plant.

Read also:Obasanjo Urges Africa to Collaborate for a Strong Oil and Gas Future

Spanish company, Union Fenosa, manages the Damietta site where 80 percent of the project is under joint ownership between Union Fossa and Eni with the EGPC and the EGAS owning the rest of the shares at 10 percent each.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Senegal’s First Major Gas Pipeline Gets US Government’s Funding

As part of the United States government’s efforts to support Africa’s economic growth through its Power Africa and Prosper Africa Initiatives, as well as USTDA’s U.S. Gas Infrastructure Exports Initiative. The United States Trade and Development Agency (USTDA) has taken interest in Senegal’s efforts to develop its petroleum industry, and to that effect, the Agency has announced a grant funding for a feasibility study to develop Senegal’s first major domestic onshore gas pipeline. This project will support cleaner and lower-cost power generation and enhance the country’s economic growth. USTDA’s engagement will help the developer – Fonds Souverain d’Investissements Stratégiques (FONSIS), Senegal’s sovereign wealth fund – attract financing to the project.

Senegalese Minister of Petroleum and Energy Mouhamadou Makhtar Cisse
Senegalese Minister of Petroleum and Energy Mouhamadou Makhtar Cisse

A grant agreement was signed in a virtual ceremony that included USTDA Chief Operating Officer, Head of Agency Todd Abrajano, Senegalese Minister of Petroleum and Energy Mouhamadou Makhtar Cisse, U.S. Ambassador to Senegal Tulinabo S. Mushingi, and CEO of FONSIS Papa Demba Diallo.

“This pipeline will become the backbone of Senegal’s domestic gas sector and help create the infrastructure to supply the country’s power plants and transform its energy sector,” said Todd Abrajano, USTDA Chief Operating Officer, Head of Agency. “U.S. companies are eager to partner with Senegal on this opportunity, and we intend to make a meaningful difference in the lives of millions of Senegalese by reducing power generation costs by up to 50 percent.”

CEO of FONSIS Papa Demba Diallo
CEO of FONSIS Papa Demba Diallo

The USTDA grant will help define the technical specifications and project economics of the onshore pipeline network. Specifically, the feasibility study will recommend a final pipeline route, finalize technical specifications for each segment of the pipeline and define the technical requirements for the front-end engineering and design phase of the project. The study will also verify the gas demand and provide updated economic and financial analysis.

Read also:Uncertainty in Oil and Gas Drags Algeria’s Economy Down

“Today, we highlight another example of U.S.-Senegal energy cooperation. The United States Trade Development Agency has approved a grant of nearly $1.3 million to support the development of Senegal’s natural gas pipeline system. This system will help Senegal transition its electricity generation to clean, inexpensive natural gas, using its own energy resources,” said U.S. Ambassador to Senegal Tulinabo S. Mushingi.

“This grant from USTDA will help us define the technical specifications and economic aspects of this very strategic project for our country and thus allow us to accelerate its implementation,” highlighted the Chief Executive Officer of FONSIS, Papa Demba Diallo. CEO Diallo continued “Working with PETROSEN and SENELEC and in agreement with the Ministry of Petroleum and Energy, this is a strategic project that will accelerate the use of gas, especially in electricity production, and contribute to lowering the cost of electricity. This will help spur Senegal’s industrial sector and make our companies more competitive.”

Read also:Africa’s Oil and Gas Experts Hold’s Webinar on Post Covid-19 Transition and Investment

“Power Africa applauds Senegal’s efforts to advance their gas capacity for export and domestic use. The U.S. government, through the Power Africa Initiative partnership between USTDA and USAID, supports Senegal’s continued progress towards self-reliance and its stated goal of increasing its generation capacity to 2.5 GW by 2030. The Power Africa-funded Senegal Gas Roadmap, completed in July 2019, proved instrumental in bringing this project to fruition. We look forward to working with our partners to support Senegal’s ongoing work towards energy independence,” said Mark Carrato, U.S. Power Africa Acting Coordinator. U.S. businesses interested in submitting proposals for the USTDA-funded feasibility study have been encouraged to do so.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigeria and Ghana: Big boys disturbing the peace By Owei Lakemfa

NIGERIA and Ghana, the two neo-colonial Anglophone ‘neigbours’ who are also two of the three largest economies in the Economic Community of West African States, ECOWAS, are at each other’s throats, fighting like kindergartens. Both countries, like sibling rivals, have squabbled for decades, the latest being last Friday, August 28, 2020 when Nigeria catalogued the sins of Ghana which include harassment of Nigerians in Ghana, the demolition of the Nigerian Mission’s property, deportation of 825 Nigerians between January 2018 and February 2019 and  unfair residency permit requirements. Other allegations by Nigeria include a media war against Nigerians in Ghana, a harsh and openly biased judicial trial of Nigerians, and the Ghana Investment Promotion Centre Act which imposes a crazy $1 million capital investment on Nigerians and other foreigners who want to engage in retail trade in Ghana. This led to the closure of over 300 Nigerian shops in 2018 and another 600 in 2019.

Ghana’s Minister of Foreign Affairs, Shirley Ayorkor Botchway
Ghana’s Minister of Foreign Affairs, Shirley Ayorkor Botchway

I am a Nigerian pan-Africanist who from the 1980s religiously followed Ghanaian politics, studied its history and capped these with a three-year residency in Accra as the chief executive officer of an African organisation with ambassadorial rank. So, I can easily speak to these allegations without bothering you much with the mainly evasive defence of the Ghanaian government and its counter-allegations against Nigeria, which are mainly true.

Read also:Four African Startups Secure $75k In Investments From Enygma Ventures

The harassment of Nigerians in Ghana are constant. After witnessing some, I asked a Ghanaian friend why this was so. He said Ghanaians, compared to Nigerians, are poor and that they hold Nigerians responsible for the skyrocketing price of property in Accra because Nigerians were ready to pay outrageous amounts to buy property.

In 2019, an informal meeting of Nigerians held in Accra, and Professor Augustine Nwagbara, then teaching at the University of Education, Winneba, highlighted the ordeals of Nigerians in Ghana and suggested that the Nigerian press should take this up. The video of the meeting leaked and an enraged Ghanaian government pounced on Professor Nwagbara, accusing him of incitement and being a threat to peace. He was detained and interrogated before being sacked from the university. He practically fled Ghana.

Read also:Gabon Launches A New $900k To Support Startups And Small Businesses

On demolition of structures of the Nigerian High Commission, no private citizen in any country would demolish the buildings of an embassy without official connivance, more so when the police headquarters nearby refused to intervene. Many Ghanaians believe all Nigerians are crooks. A senior Ghanaian lawyer once told me that in the eyes of the average Ghanaian judge, a Nigerian charged for crime is more or less guilty; he is like a cockroach pleading innocence before a hen.

I was privy to a visitation to the Nsawam Medium Security Prison on the Accra-Kumasi Highway by a church organisation in 2014. Many of the prisoners were Nigerians, mainly Igbos. Some wept, asking that their squalid conditions be brought to the notice of the Nigerian government, while many asked for judicial reviews, claiming to be victims of conspiracy between Ghanaians and their police. Nigeria said Ghana had deported 825 of her citizens; the Ghanaian government disputes this, saying only 700 Nigerians were deported. What is the issue? It is not necessarily the number, but the act of deporting citizens in a regional community with supposed free movement.

Under the ECOWAS protocols, citizens from member states can stay in any country for 90 days. Now, there were many Nigerian students in Ghanaian universities who, by the way, paid fees in foreign exchange over four-fold what Ghanaian students paid. I witnessed some of these Nigerian students being barred by Ghanaian Immigration from boarding flights from the Kotoka Airport back to Nigeria on the basis that they had spent a few days above the 90-day window. I had intervened on such occasions, and became marked. The officers had contempt for my Nigerian Diplomatic Passport, so I started pushing my African Union Diplomatic passport in their faces.

Read also:Cape Verdean Fintech Startup Makeba Raises $246k From Crowdfunding

Perhaps the most contentious issue is the forced closure of Nigerian shops, but not directly by the Ghanaian government that has become an expert in the act of throwing stones and hiding its hand. Rather, Ghanaian traders and thugs are used, which amounts to Ghanaians taking the law into their hands. The background to this is that in 1994, Ghana made a Ghana Investment Promotion Centre law which states that foreigners who want to carry out any retail trade must have a $300,000 capital. This is a way of barring all non-Ghanaians from trading in Ghana because a hawker with such huge capital will not leave his country to go hawk slippers on the streets of Ghana. This amount was by 2013, increased to $500,000, and is now $1 million! This violates ECOWAS protocols.

The Nigerian Minister of Foreign Affairs, Geoffrey Onyeama, wonders: “What is the point of having an economic community if at the end of the day each country will make laws and regulations in contradiction of that? Clearly, if it is contravening the ECOWAS protocol, then we would have to now look at ECOWAS solution, including the ECOWAS court as a final arbiter.” Brilliant, except that he turns a blind eye to Nigeria’s blatant violation of the same ECOWAS protocols of free movement of persons and goods. How does Nigeria hope to get justice at ECOWAS when it is going there with unclean hands?

 Ghana’s Minister of Foreign Affairs, Shirley Ayorkor Botchway, pointed out that Nigeria similarly hurt Ghanaian traders when without notice, it shut down its land borders in 2019 with other countries. Clearly, the Nigerian government’s excuses for the border closure are not tenable. For instance, it claims arms are smuggled across the borders. This may be true, but who says they go through the official borders and not the illegal routes that remain open? Those that came through the official borders were clearly due to connivance with Nigerian border security because they have scanners to detect arms.

A second excuse is the claim that the closure is meant to grow Nigeria’s economy. Nigeria has an overwhelming control of trade across West Africa; its products are in all West African markets I have been. Nigeria is clearly the economic giant in West Africa, accounting for 73.5 per-cents of ECOWAS exports, 52 per-cents of its general imports and 51 percent of its food imports. For a country to dominate a market and then shut itself against that market is nothing short of sabotage. The Nigerian and Ghanaian governments have no basis for the quixotic war of attrition they are engaged in. Both are undeserving of their peoples, endanger African unity and integration and are striving to be good boys of foreign financial institutions and their Western owners. They are bedwetting big boys who should find productive engagements.

Owei Lakemfa, Secretary General, Organisation of African Trade Union Unity (OATUU).

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry