EnterpriseNGR State Of The Enterprise Report Launched In Lagos
The EnterpriseNGR launched the maiden edition of its annual publication titled ‘The State of Enterprise (SOE) Report, 2022: Analysing Nigeria’s Financial and Professional Services Sector’ as part of the activities to mark its first year anniversary. 

The EnterpriseNGR, yesterday, said that the SOE report would be a first-of-its-kind annual industry publication that would analyse the Financial and Professional Services (FPS) sector holistically and individually spotlighting the key sub-sectors of the FPS universe by highlighting the significant achievements of the FPS sector and its contributions to Nigeria’s economy.

EnterpriseNGR State Of The Enterprise Report Launched
Left-Right: Mr. Oscar N. Onyema, OON, Group Managing Director/Chief Executive Officer, Nigerian Exchange Group; Mr. Kayode Akinkugbe, Managing Director/CEO, FBNQuest Merchant Bank Limited; Gbenga Oyebode, MFR, Of Counsel, Aluko & Oyebode; Mr. Aigboje Aig-Imoukhuede, CON, Chairman, Enterprise NGR; Obi Ibekwe, Chief Executive Officer, EnterpriseNGR; Mr. Banjo Adegbohungbe, Managing Director/CEO, Coronation Merchant Bank Limited at the EnterpriseNGR state of enterprise report launch in Lagos.

According to the EnterpriseNGR, the SOE report, which has been scheduled to be launched on Wednesday, October 12, will present “accurate and up-to-date insights into the (FPS) sector’s impact as a growth catalyst for the economy, while identifying the challenges facing the sector.”

The launch of the SOE report kicked off with a welcome address by the Chairman of the Board of EnterpriseNGR, Mr. Aigboje Aig-Imoukhuede, and followed by an insightful keynote address to be delivered by a Professor of Economic Policy at the University of Oxford, Director, Center for the Study of African Economies, Oxford, Professor Stefan Dercon, who is also the author of the bestselling book: ‘Gambling on Development: Why Some Countries Win and Others Lose’.

It added that a major highlight of the launch event would be an interactive panel discussion on the findings of the SOE Report 2022 by prominent experts from different sub-sectors of the FPS.

“The panelists will include the CEO of FBNQuest Merchant Bank Limited, Mr. Kayode Akinkugbe; the Partner, Templars, Mr. Olumide Akpata; the Group Managing Director of Investment-One, Mr. Nicholas Nyamali; the Deputy Managing Director of Access Bank Plc, Mrs. Chizoma Okoli; the Chairman of Tangerine Africa, Mr. Eric Idiahi, and Partner, PWC Nigeria, Mr. Obioma Ubah,” the press release said.

In 2019, the Southern Swamp Associated Gas Solutions project was commissioned, and the SPDC JV is planning to reduce associated gas flaring further through its Forcados Yokri gas-gathering project, of which large parts are set to be completed in 2022. Despite such efforts to reduce continuous flaring, unfortunately flaring intensity (the amount of gas flared for every tonne of oil and gas produced) at both SPDC- and SNEPCo-operated facilities increased in 2021 owing to short-term operational issues. Flaring from SPDC-operated facilities increased by around 5% in 2021 compared with 2020. The increase was primarily because of the extended outage of the gas compression system in SPDC’s shallow-water operations. The system was restored and became operational from January 2022. Flaring at SNEPCo-operated facilities rose by around 160% in 2021 compared with 2020. This was mainly because of an increase in flaring on the Bonga floating production, storage and offloading (FPSO) vessel. Repairs to a flex-joint on the Bonga FPSO’s gas export riser in the second quarter took longer than expected, in part because of weather conditions. While repairs were under way, the FPSO continued to produce oil and therefore flaring was necessary for safety reasons. The repairs were safely concluded in July 2021. Although flaring intensity levels rose in 2021, SPDC and SNEPCo over the last 10 years have almost halved the combined amount of hydrocarbons they flare from 1.5 million tonnes in 2012 to 0.8 million tonnes in 2021. This reduction is the result of a strict flaring reduction management process and both SPDC and SNEPCo will continue to work in close collaboration with joint-venture partners and the government to make progress towards ending routine flaring of associated gas. NIGERIA LNG EXPANSION UNDERWAY Global demand for LNG continues to grow as the world increasingly seeks reliable supplies of lowercarbon energy. Shell’s investment in Nigeria’s gas infrastructure for export is expected to help 6 This is according to a data provided by global research and consultancy business Wood Mackenzie. the country benefit further from revenues. Shell Gas B.V. and its partners took a final investment decision in 2020 on a new LNG processing unit – known as Train 7 -- at NLNG. The expansion is expected to create around 12,000 jobs for Nigerians during construction and stimulate growth of the local oil and gas service sector, with 55% of engineering and procurement of goods and services being sourced in-country. Train 7 is expected to ensure Nigeria’s continued place as a global player in a lower-carbon energy source. Once operational, Train 7 will add around 8 million tonnes per annum of capacity to the Bonny Island LNG facility, taking the total production to around 30 million tonnes per annum. In 2021, NLNG began awarding procurement and construction contracts. Early works started at the site. The first phase of the worker village is expected to be ready for occupancy in 2022 and the new material offloading facility ready for use by the end of 2022. NLNG’s Train 7 is expected to come onstream in the middle of the 2020s. KEY LICENCE RENEWED FOR DEEP-WATER SNEPCo has interests in four deep-water blocks in the Gulf of Guinea, two of which it operates. Today, nearly one-third of Nigeria’s deep-water oil and gas production comes from the Bonga and the nonoperated Erha fields.6 Since production began in 2005, Bonga alone has produced more than 950 million barrels of oil with the 2021 average oil production per day at 105,000 barrels. The Bonga FPSO vessel has a total production capacity of 225,000 barrels of oil per day and 150 standard cubic feet of gas export per day. In 2021, the availability of the FPSO vessel increased to 80% from 70% in 2020. In addition to Bonga, SNEPCo’s exploration activities have led to several significant discoveries of oil and gas over the last two decades, including the Bolia and Doro fields (Shell interest 55%). Nigeria Briefing Notes Helping to power Nigeria’s economy 13 In the right investment climate, SNEPCo believes that there are opportunities to expand. In 2021 the OML 118 (Bonga) production sharing contract was renewed and the lease extended for 20 years. Bonga North and Bonga South West Aparo (BSWA) oil fields are two such potential opportunities. Bonga North is a proposed tie-back project to the existing Bonga FPSO with Phase 1 comprising 14 wells. BSWA is a development of a new FPSO with Phase 1 comprising 23 wells. SUPPORTING RENEWABLE ENERGY STARTUPS Millions of Nigerians are excluded from the country’s power grid and Shell Companies in Nigeria have established and provided substantial funding for a not-for-profit, impact-investing company called All On. Operating as an independent company, All On works to bring reliable electricity – often from renewable energy sources -- to off-grid urban and rural customers. This support aims to build a solid pipeline of viable businesses that can create the scale required to address Nigeria’s access to energy gap. In December 2019, SPDC and SNEPCo made a significant additional 10-year financing commitment of $160 million in All On, bringing the total commitment to $200 million. By the end of 2021, All On had provided investment capital to over 40 renewable energy start-ups in its portfolio – an increase of more than 30% from 2020. One such company is Infibranches Technologies Limited, to which All On has committed $2 million, which is expected to enable the indigenous technology company to expand sales of solar home systems via its more than 13,000 agent banking partners across Nigeria. With the support of the Rockefeller Foundation, the All On Hub was established in 2020 to provide nonfinancial support and build the capabilities of off-grid energy entrepreneurs. In 2021, the hub supported 81 ventures – nearly double the 41 supported in 2020. Also in 2021, All On, Odyssey Energy Solutions and the Global Energy Alliance for People and Planet launched a $10 million equipment financing facility as part of the DART pilot programme in Nigeria. 7 Hydraulic flying leads support the delivery of hydraulic fluid and/or chemicals between subsea equipment. 8 Subsea trees are an assembly of valves and other components used to monitor and control the production of a subsea well. DART will combine demand pooling, aggregated purchasing of solar equipment, and access to affordable finance to unlock economies of scale for solar companies, achieve cost savings for end-users, and accelerate the growth of the renewable energy sector in Nigeria and beyond. DEVELOPING LOCAL CONTENT AND SKILLS Shell Companies in Nigeria contribute to the growth of Nigerian businesses that can provide technical and support services to the industry. This includes the manufacture of tools and technical kits, the operation of helicopter flights in the Niger Delta, and strategic partnerships between foreign and local companies to stimulate technology transfer and capacity development. While there are government-required programmes in some areas, such as the Nigerian and Community Content Strategy embedded in the Assa North/Ohaji South gas development project, Shell Companies in Nigeria deliberately seek to contract local businesses wherever possible. In 2021, Shell Companies in Nigeria awarded $800 million worth of contracts to Nigerian-registered companies. Of these, 92% were companies with at least 51% Nigerian ownership. SNEPCo has awarded major engineering and construction contracts to companies that are indigenous, have local staff, or possess domestic capabilities in the country. At present, the manufacture and rebuild of hydraulic flying leads7 (HFLs) is being carried out in-country by wholly indigenous companies. Pressure Controls Systems Nigeria Limited, another Nigerian company, continues to refurbish old subsea trees.8 Sometimes, a lack of access to capital hinders Nigerian companies from competing for and executing contracts effectively. Shell Companies in Nigeria have provided access to nearly $1.6 billion in loans to 901 Nigerian vendors under the Shell Contractor Support Fund since 2012. These loans help improve their tendering opportunities.

It added that EnterpriseNGR has developed strategic programs and initiatives in line with its mission to champion the development and transformation of Nigeria’s economy.

These initiatives included “the Youth of Enterprise (YOE) Internship Programme focused on training Nigerian youth on employability skills and facilitating their smooth transition to the workplace.”

It also added that EnterpriseNGR has a strong membership network of reputable organisations that are committed to leveraging their resources and influence to achieve its vision.

They include Tengen Family Office (represented by Mr. Aigboje Aig-Imoukhuede, CON), Nigerian Exchange Group, Aluko & Oyebode, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FMDQ Group, Chapel Hill Denham, Central Securities Clearing System Plc (CSCS), PwC Nigeria, Templars, Access Bank Plc, DLM Capital Group, Investment One Financial Services Limited, Custodian Investments Plc, Tangerine Financial Limited, Meristem Securities Limited, Bank of Industry, First Ally Capital Limited and Imperial Asset Managers Limited.

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