NIGERIA, ‘FLARING AWAY’ THE MAINSTAY OF HER ECONOMY

NIGERIA, ‘FLARING AWAY’ THE MAINSTAY OF HER ECONOMY

Good morning your Excellencies, Ladies and Gentlemen of Great Entrepreneurial minds.

Today, we shall be looking at the various investment opportunities in Africa starting with Nigeria as we all have agreed that for Africa to be fixed we must first fix Nigeria.

We shall be looking at the opportunities therein in the length and breath of the Country, called Nigeria with our first focus on the mainstay of the economy, Oil and Gas, though this sub-sector is projected to cease its economic value and reliability in thirty (30) years time as the world is geared towards developing green energy that will drive the future economy. Fossil fuel is fast loosing its significance in the energy world.

One area that will not loose its grip on the world economy is the Petrochemical sub-sector which derivatives are likely to stand the test of time.

Here in Nigeria, this area has not been fully harnessed as the country’s three Petrochemical plants can only boast of few derivatives namely, Polypropene, Polyethylene(High Density Polyethylene, Low Density Polyethylene, Linear Low Density Polyethylene), Carbon Black, Nitrogen and Bitumen in a country where manufacturers rely on import of same raw materials that could have been produced here in Nigeria using the abundant Liquified Petroleum Gases and Natural Gas Liquids which we flare daily in our production fields and refineries.

Nigeria is one country that it’s Natural Gases and Petroleum Gases that worth trillions of dollars are flared in the name of excess gases or what we call non-condensable gases in attempt to justify our inefficiency.

While the National Iranian Oil Company (NIOC) of Iran could boast of over one hundred Petrochemical products our own NNPC can only boast of running our Petrochemical plants into epileptic state except for Indian owned Indorama Eleme Petrochemical company that have monopolized the few Polymers market in Nigeria and Africa.

The Gas sector of the Nigerian economy is one area that if properly harnessed could launch the Nigerian GDP to an enviable height . The Olefins we flare could be captured, condensed cracked and polymerized to produce polymers that are not produced in Nigeria despite the huge demand by Manufacturers Internationally and locally. Products such as Synthetic Rubber which are further classified basically into SB Rubber( Sterene + Butadiene) and EP Rubber (Ethylene + Propylene) are products of our Olefins and Aromatics derived from the cracking of Natural Gas Liquids.

While the SB Rubber are further blended to various grades which are used for the Manufacture of Tires, Hoses, Belts, Footwear, Ship Fenders, Rubber Rollers Latex foams, Aircraft Tires etc, the EP Rubber are used for Auto parts, Pressure hoses etc.

Other derivatives include liquified gases such as Propylene, Ethylene, Benzene, Xylene, Toluene etc which uses and applications are so numerous. Besides polymerization of Propylene and Ethylene to produce Plastic raw materials (Polymer resins), Propylene and Ethylene are also used for the production of Propylene-Glycol and Ethylene-Glycol. Propylene-glycol because of its safe nature is widely use in food and drug manufacturing and administration while Ethylene-glycol is used as antifreeze during winter in homes, cars runways, de-icer for aircrafts and coolant in vehicles to avoid over heating.

Nigeria Government must therefore come up with a strong policy to stop Gas flaring as no nation with these huge potentials in Gas would sit and watch her trillions of dollar resources waste away while the citizenry die in abject poverty. No Nation on this planet earth is so Naturally endowed like Nigeria.
Government of Nigeria must encourage investments in this aspect. Nigerian and African Entrepreneurs should see this sector as very lucrative and begin to erect Petrochemical plants like you have in other Oil and Gas producing nations to take advantage of the huge potentials therein in Nigeria. If Oil producing countries like China could have over 20 functional Petrochemical plants, Nigeria and Africa must take a cue to be counted in the Petrochemical sector. These things are not rocket science that we should shy away from. The PIB law should take its full effect if its purpose is truly to encourage investment in this sector.

Let me not forget to mention that here in ESGADIA we have representatives of foreign funders that are willing to throw their weight behind projects with interest elements as low as 3% per annum for Eco-humanitarian projects and can do as much as 80% and above of the project cost depending on the size of the project. Others who can fund infrastructures are also here with us while we have some A+ rated world class investment bankers and Financial consultants. For more inquiries feel free to send us a message through our contact page.