Nigerian energy-industry leaders have been reminiscing lately about the country’s earliest efforts to develop marginal oil and gas fields. That’s because after nearly two decades, Nigeria recently stepped up its marginal-field development efforts, a wise move that I hope other countries will follow.

Marginal oil and gas fields are sites with reported reserves and production potential that have been left unattended for at least 10 years from the date of their discovery. In most cases, these fields are sites where international oil companies (IOCs) discovered oil or gas deposits and received the rights to move forward with production–but then, for any number of reasons, decided against further activity.

In the 1990s, Nigeria began wondering if the IOCs’ losses in these cases could be turned around to generate revenue for government coffers — and opportunities for local oil and gas companies. In 2003, after devoting significant time to relevant policy development, Nigeria launched bidding for the rights to develop 24 marginal fields. Marginal field licenses went to 31 indigenous companies.

Some will point to the fact that only 13 of the awarded fields are now producing and argue that the effort fell short of expectations. They’ll cite technological limitations that impeded indigenous companies’ effectiveness.

While those setbacks did occur, Nigeria’s decision to develop marginal fields produced plenty of benefits, too. As I wrote in my book, “Billions at Play: The Future of African Energy and Doing Deals,” the bidding round gave more than 30 local companies an opportunity to establish themselves and develop their capacities as upstream operators. And, it allowed them to do so without assuming the risks (or the costs) of exploration, since all of the fields designated as marginal were confirmed discoveries.

What’s more, the producing fields have been generating revenue, about 2% of total daily production in Nigeria. And as more marginal fields are developed, they will increase Nigeria’s domestic production capacity even more.

That’s why I was pleased to see Nigeria launch another marginal field bidding round in 2020. In some ways, this latest bidding round is even more important than the first. African oil- and gas-producing countries are still reeling from COVID-19 and dealing with mounting global pressure to transition away from fossil fuels. And they’re facing these obstacles at a time when they still need their oil and gas industries to generate revenue, to help ease energy poverty, and to help stimulate economic growth and diversification.

The challenges facing our energy sector, and the vital importance of fighting to keep it alive and well, are addressed in depth in the African Energy Chamber’s recently released report, The State of African Energy 2022, now available on energychamber.org. The report also explores the opportunities available to African oil- and gas-producing states — including marginal oil and gas field development.

While there are no easy fixes for Africa’s energy industry challenges, developing marginal fields is a valuable strategy that can yield tangible benefits for the countries that embrace it. And the time to embrace it is now.

COVID-19’s Lingering Symptoms

Around the globe, the COVID-19 pandemic has spread its nasty tentacles into nearly every aspect of our existence. Not only has it been wiping out lives, but the pandemic has also been crushing economies and exacerbating poverty in developing countries. The pandemic’s economic devastation has been particularly acute in sub-Saharan Africa: The region’s economy is projected to grow by only 3.7% this year. This is the slowest pace of growth in the world, according to the International Monetary Fund (IMF), which attributes sub-Saharan Africa’s lagging growth to slow vaccine rollouts and policy differences.

For Africa, where so many countries rely on oil and gas exports for revenue, COVID-19’s impact on our energy sector remains a major concern. In 2020, lockdowns set off a chain reaction of reduced demand for oil, plunging prices, and a long list of canceled and postponed oil and gas projects. As of late 2021, IOCs’ capital expenditures in Africa have yet to reach pre-pandemic levels.

Now add to the equation climate concerns and the immense pressure IOCs are facing to stop investing in African oil and gas projects.

“COVID-19 and the subsequent disruption to global markets is estimated to have wiped out close to US150 billion of exploration and development expenditure from Africa between 2020 to 2025,” the Chamber’s energy outlook states. “Over the last 12 – 15 months, more companies and especially majors have announced strategic revisions with increased focus on the energy transition, cutting down their carbon emissions and in doing so, reduce respective upstream expenditure going forward. While 2021 is expected to see marginally higher upstream investment totaling just over US33 billion in Africa, the estimated drop in African upstream expenditure over the years 2022 – 2025 is close to US34 billion when compared to the estimates from year-end 2020.”

What does that mean? African states must do everything within their power to breathe life into their oil and gas industries — immediately.

Marginal Fields Have Proven Benefits

That brings us back to Nigeria — and the promise marginal fields hold for the African continent.

As I’ve said, I’m convinced earlier bidding rounds have already produced significant benefits for Nigeria. Look at the infrastructure that local marginal players were able to build, like the 48-kilometer pipeline from Egbeoma to Kwale owned by Platform Petroleum Limited and Newcross Petroleum.

Marginal field development has also allowed indigenous companies to step out from oil majors’ shadow and thrive. Strong Nigerian operators like AMNI Petroleum, Shoreline Energy, Aiteo, Neconde Energy, Waltersmith Petroman, Yinka Folawiyo Petroleum Company, Eroton, Amni International, Seplat Petroleum, Atlas Petroleum, FIRST E&P, Sahara, Belema Oil and many others can attribute their successes, at least in part, to their marginal field experiences.

It’s also worth mentioning that several Nigerian marginal fields were recognized under the UN Clean Development Mechanism for successfully reducing gas flaring and valorization of natural gas.

During Nigeria’s latest marginal field bidding round, 591 companies applied to develop 57 oil fields, according to Sarki Auwalu, Head of the Department of Petroleum Resources. Ultimately, Nigeria awarded oilfield development rights to 50% of the 161 companies that were shortlisted after demonstrating that they met all conditions for approval. As of March 2021, Nigeria expected the awards to provide $600 million in income. In today’s challenging environment, that’s a notable accomplishment.

Also working in Nigeria’s favor is the recently passed Petroleum Industry Act (PIA) a legislation designed to bolster the country’s energy industry. The market-driven PIA incentivizes global investments in Nigerian oil and gas projects by promoting greater government transparency, eliminating red tape, and revamping tax and royalty requirements. It also specifically addresses marginal field development: For example, the PIA makes provisions for marginal fields operators to receive a specific type of license, and it closes gaps in existing law regarding the legal status of marginal fields.

Together, the PIB and marginal-field development represent a real chance for Nigeria’s energy industry to get back on its feet and better meet pressing domestic needs, from providing more Nigerians with reliable electricity to generating the revenue necessary to grow and diversify the economy.

And, marginal field development is not limited to Nigeria. Successes there have led additional African-producing states, including Angola, Congo-Brazzaville, South Sudan, and Gabon, to follow suit. I encourage others to do the same. If you’re an African leader today, every decision, every move you make with the potential to impact your energy industry, has to count. It only makes sense to embrace tactics with proven benefits — and marginal field development definitely falls into that category.

Ayuk is Chairman, African Energy Chamber

Given the seriousness of the issue raised by the Daily Trust today, the Office of the President would like to issue a response.

The growing instability and violence in the North of Nigeria and elsewhere is unacceptable. No one, not least the Presidency underestimates the seriousness of the situation. Everyday, the President holds the victims and their families in his thoughts and prayers. Above all, he wishes to reassure them – and all Nigerians – that tackling the scourge of banditry and terrorism remains this government’s first priority.

Sadly, in this respect, Nigeria is not unique. Violence and terror have risen steadily across the entire African continent over the last decade. The Economist magazine in a recent publication wrote about “The Next Afghanistan,” warning the global community of the horrifying security in our neighborhood, citing specifically the states of Mali, Burkina Faso and Niger. So we understand the frustrations of the Daily Trust and Nigeria’s northern communities about the ongoing challenges of security and the Buhari administration is no less worried. But it is only fair to say that Nigeria’s persistent and continued efforts to suppress that instability have seen results, with the terror group Boko Haram among others reduced to a shell of its former self.

Yet, now we Nigerians face a new threat: the worst global health crisis in living memory. Even Nigeria that proudly holds the mantle of Africa’s largest economy is not immune from the debilitating economic impact of COVID-19. The economic instability that the pandemic has wreaked has proven an effective recruitment tool for bandits and terrorists across the continent.

Indeed, the Daily Trust has correctly identified the source of the violence as “an amalgam of many complex issues” such as poverty and unemployment. It is equally right to note that, in tackling the violence, “force alone will not be enough.” It is quite wrong, however, to suggest the problem of insecurity is intractable, and more wrong still to claim apathy on the part of the government.

So what is the government doing?

First, our military efforts have not let up. It is true that in the face of today’s growing number of threats from Boko Haram, kidnappers and IPOB to your run-of-the-mill bandits, our forces are stretched increasingly thin. But our dedicated soldiers are working around the clock to keep Nigerians safe.

Second, alongside military force, this government is seeking to address the violence at its economic source. Massive infrastructure projects like the coastal rail and new train from the southern coast through the north-east to our neighbour Niger, aim to expand employment and opportunity across the country, bringing hope to our more remote and poorer regions where bandits and terrorists thrive.

Third, even as the West continues to extricate itself from Africa militarily, we are lobbying our Western allies aggressively for partnership, investment and support in other areas, such as proscribing Boko Haram, bandits and IPOB as terrorist groups, which would severely dent their funding; for investment in trade and infrastructure, to help lessen economic instability; and to help with technical assistance, advanced weaponry, intelligence and ordinance.

This will likely be small comfort to the families and loved ones of those already lost. But make no mistake: this is a battle we are fighting without let up. The Daily Trust’s suggestion that the President exchanges violence for the support he got electorally is beneath a publication that claims any kind of political neutrality or integrity.

Now is not the time for this sort of lurid political journalism. Now our focus as Nigerians must be on coming together and ending the violence. As President Buhari wrote recently of the terrorists in the UK paper, The Financial Times: “We will defeat them, one highway, one rail link – and one job – at a time.”

Shehu is Senior Special Assistant to President Buhari on Media & Publicity

How The Issue Started?

It was in just few days a saga between Kaduna Polytechnic and the National Board for Technical Education (NBTE) emerged on an irregularity of administrative service following the elongation of Kaduna Polytechnic Acting Rector tenureship whirled the air of Mass Media. A lot of people see the story from different angles and up to now a fog of propaganda has diffused the truth about who is at fault from the story that leaked on Blueprint Newspaper. For Professor Idris M. Bugaje, who is much known by many and any person that works with him or has affairs with him is a man of truth and principles.

Who Is Professor Idris Muhammad Bugaje?

Professor Idris Bugaje is a principled administrator and a non corrupted personnel whose good conduct of service has been elevating him to various stages of service in Nigeria and beyond. Professor Idris M. Bugaje started working with the Nigerian Paper Mills, Jebba from 1981-1983, Energy Research Centre, Usmanu Danfodio University, Sokoto from 1983-1988 and Kaduna Polytechnic as Lecturer I and rose to the rank of Senior Lecturer and Head, Department of Chemical Engineering between 1988-1995. He joined the services of Ahmadu Bello University in 1995 and two years later left for the University of Malaya, Kuala Lumpur, Malaysia (1997-1999). He returned to ABU Zaria in 1999 as Reader (Associate Professor) from where he was appointed Rector of the Federal Polytechnic, Nasarawa in 2000.

And, upon the successful completion of his tenure at NARICT in 2016, he went for a one year Sabbatical leave with- the Umaru Musa Yar’adua University, Katsina and towards the tail end of the sabbatical; he was appointed Rector of the famous Kaduna Polytechnic in October 2017 while before the end of his tenure, in April 2021 he was appointed the Executive Secretary of the NBTE, and upon all these few to mentioned services Bugaje has no case to answer because he is a man of integrity with uncorrupted record.

Does NBTE Has The Right To Interfere In Polytechnic Matters?

As the NBTE E.S Professor Idris Bugaje is saddled with the responsibilities to oversee the works and academic progress of all Nigerian polytechnics and Bugaje did not only exposed the skeleton in the cupboard of Kaduna Polytechnic for violating the Polytechnics Act alone but also of Auchi and Mubi Polytechnics and their cried was not lauder like Kaduna Polytechnic or was it before he was once their immediate rector?

When Dr. Sulaiman Umar Became Acting Rector of Kaduna Polytechnic?

On the matter of the Acting Rector; Dr. Suleiman Umar, he became the Acting Rector of Kaduna Polytechnic on 14th April, 2021 when Professor Idris M. Bugaje was appointed by the President of Nigeria to serve as the Executive Secretary of the NBTE and the appointment of the Acting Rector was rectified in May.

What Are The Responsibilities Of Polytechnics’ Councils?

Professor Bugaje did the right work under his capacity by writing a petition as the NBTE Executive Secretary because the Council of Kaduna Polytechnic faulted the Act of the Polytechnics Acts that said, the Rector of any polytechnic shall be appointed by the President in accordance with the provisions of the Polytechnics Acts and NBTE as a stakeholder and a great pillar of Technical Education is responsible to:

“Consolidated to develop the nation’s system of higher education in response to the economy’s manpower needs; To streamline and strengthen the machinery for educational development in the country; and. To rationalize the financing of education with a view to making the educational system more adequate and efficient” and when anarchy exist systems collapse and Kaduna Polytechnic is a volatile Institution that is characterized with many strikes in the past and Bugaje as the immediate Rector of the Institution set a good pace for the Polytechnic and because he knew much about how to guide and control the Institution to cordon its problems he must blow the whistle to call for order.

The Polytechnics Act has spelt that the Council of Polytechnics has no right to appoint acting rector or constitute appointment for rector because the Polytechnic Act stated that only the President of Nigeria has the power to appoint any rector of polytechnics.

The Polytechnics Act says; (2) Where a vacancy occurs in the post of Rector, the Council shall only do the following:

(a) Advertise the vacancy in a reputable journal or widely read newspaper in Nigeria,  specifying- (i) The qualities of the person who may apply for the post; and (ii) The terms and conditions of service applicable to the post, and thereafter, draw up a short list of suitable candidates for consideration;

(b) Constitute a Search Team consisting of- (i) a member of the Council, not being a member of the Academic Board, as Chairman; (ii) two members of the Academic Board, not below the rank of Chief Lecturer; (iii) two members of the Academic Community of the college not below the rank of Chief Lecturer, to be selected by Council, to identify and draw up a short list of persons who are not likely to apply on their own volition  because they feel that it is not proper to do so.

[1993 No.5.] (4) The President shall appoint, as Rector, one of the candidates recommended to him the provisions of subsection.

While the polytechnic Act has explained that for anything that happened within the jurisdiction of any polytechnic, a communiqué shall be written to the president through the Minister of Education and copied to all relative bodies (including NBTE) and the action of Mubi and Auchi polytechnics counterfeit the Polytechnics Acts because they wrongly extend the tenure of their acting rectors and the Polytechnics Acts stated that any acting rector shall not exceed six months in acting capacity.

Why The Truth Is Always Bitter?

The truth of the matter is; the hands of Professor Idris Bugaje are clean like always and have no harm on anyone but has great respect to his national assignment and the allegiance of power to his duty. The petition written to the Minister of the Federation was a good move for Bugaje to clear the air about his integrity because many could perceive that Bugaje supported and has hand in the tenure renewal of the Kaduna Polytechnic Acting Rector.

And what Bugaje did added credit to his personality at his side of truth and people should know that Bugaje has no friend in his official duties, even though he is sociable, understanding, and friendly to all but his nationalism is above all, though he has no enemy in all his social affairs but he may have many in his duty of doing good work for his country.

At this time of this turmoil between Kaduna Polytechnic, the whistle blower (Bugaje) and the truth, the truth has been exposed and it is left for the President of Nigeria and the Minister of Education to do their parts because Professor Idris Muhammad Bugaje has played his part as a good Nigerian and a lawful administrator that also hates corruption.

What The Ministry Of Education And The President Of Nigeria Should Do?

Bugaje’s effort is aimed in restoring the system of education which corruption always decay and it is suspected that many officials in the Ministry of Education collected money to carpet the issue raised by Bugaje because of interest, but as Bugaje said, he is awaiting for a final verdict from the Minister of Education on his petition and as a good Nigerian who hates corruption like President Muhammadu Buhari will soon act into action.

Ahmad is a national analyst from Katsina and can be reached via ahmadugamji@gmail.com