Introduction
President
Muhammadu Buhari on Tuesday, 17th October 2017, signed into law the Bill
establishing the Federal University of Petroleum Resources, Effurun, Delta
State.
The political rhetoric used to justify this development is that it
signifies the administration’s commitment to continue to support the socio-economic
development of the Niger-Delta region. It will be recalled that the Federal
Government in 2006, under the leadership of former President
Olusegun Obasanjo, approved the upgrading of the Petroleum Training Institute
(PTI) Effurun into a degree awarding institution. With this approval, it became
the first Nigerian Petroleum Engineering University with the former PTI, itself
established in 1973, operating as one of its faculties.
Muhammadu Buhari on Tuesday, 17th October 2017, signed into law the Bill
establishing the Federal University of Petroleum Resources, Effurun, Delta
State.
The political rhetoric used to justify this development is that it
signifies the administration’s commitment to continue to support the socio-economic
development of the Niger-Delta region. It will be recalled that the Federal
Government in 2006, under the leadership of former President
Olusegun Obasanjo, approved the upgrading of the Petroleum Training Institute
(PTI) Effurun into a degree awarding institution. With this approval, it became
the first Nigerian Petroleum Engineering University with the former PTI, itself
established in 1973, operating as one of its faculties.
The
FUPRE Bill – a failed venture?
FUPRE Bill – a failed venture?
However,
it is my opinion that the FUPRE Bill, turned law, is a failed venture for
several reasons.
it is my opinion that the FUPRE Bill, turned law, is a failed venture for
several reasons.
First,
the world’s use of petroleum is approaching a tipping point – soon enough it
will become USELESS. The danger is not an imminent
collapse in demand, but the start of a shift in investment
strategies away from finding new sources of oil to finding alternatives to it.
Electric cars may become commonplace in the future. Ten giant car makers,
including BMW and Volvo, have committed to
electric cars by 2019. The UK, China, India, France, Germany and many of the
developed countries have committed, or at least made plans to switch over to
electric powered vehicles by 2025 onwards. A fortiori, this will
eventually be doing a disservice to the socio-economic development promised to the
Niger-Delta region.
the world’s use of petroleum is approaching a tipping point – soon enough it
will become USELESS. The danger is not an imminent
collapse in demand, but the start of a shift in investment
strategies away from finding new sources of oil to finding alternatives to it.
Electric cars may become commonplace in the future. Ten giant car makers,
including BMW and Volvo, have committed to
electric cars by 2019. The UK, China, India, France, Germany and many of the
developed countries have committed, or at least made plans to switch over to
electric powered vehicles by 2025 onwards. A fortiori, this will
eventually be doing a disservice to the socio-economic development promised to the
Niger-Delta region.
Secondly,
this decision does not make economic sense. Oil prices have plummeted
in the space of three years. In the year 2014, a barrel of petroleum cost over
$100. By January 2016, and till date, the price of a barrel now cost less than
$55; although the recent cuts to output by OPEC have helped pushed the price to
over $60 in the past few days. Apart from the fact that petroleum is becoming
less profitable, renewable energy sources such as wind and solar are becoming
more economical and cheaper to produce. Nigeria has enormous solar
energy potential, with fairly distributed solar radiation averaging
19.8 MJm2/day and average sunshine hours of 6h/day. The assumed potential
for concentrated solar power and photovoltaic generation is around 427,000 MW.
According to estimates, the designation of only 5% of suitable land in central
and northern Nigeria for solar thermal would provide a theoretical generation
capacity of 42,700 MW: which dwarfs the meagre 5,000 MW currently shared by the
whole country at present.
this decision does not make economic sense. Oil prices have plummeted
in the space of three years. In the year 2014, a barrel of petroleum cost over
$100. By January 2016, and till date, the price of a barrel now cost less than
$55; although the recent cuts to output by OPEC have helped pushed the price to
over $60 in the past few days. Apart from the fact that petroleum is becoming
less profitable, renewable energy sources such as wind and solar are becoming
more economical and cheaper to produce. Nigeria has enormous solar
energy potential, with fairly distributed solar radiation averaging
19.8 MJm2/day and average sunshine hours of 6h/day. The assumed potential
for concentrated solar power and photovoltaic generation is around 427,000 MW.
According to estimates, the designation of only 5% of suitable land in central
and northern Nigeria for solar thermal would provide a theoretical generation
capacity of 42,700 MW: which dwarfs the meagre 5,000 MW currently shared by the
whole country at present.
In
the same vein, with annual average speeds of about 2.0 m/s at the coastal
region and 4.0 m/s at heights of 30m in the far northern region of the country,
the potentials of Wind,
if turbines are erected in strategic places, are more than negligible. Same
factors also apply to generating power from Biomass.
In other words, investing capital to fund a petroleum university is a waste of
tax payers’ money and should be considered a bad economic judgement.
the same vein, with annual average speeds of about 2.0 m/s at the coastal
region and 4.0 m/s at heights of 30m in the far northern region of the country,
the potentials of Wind,
if turbines are erected in strategic places, are more than negligible. Same
factors also apply to generating power from Biomass.
In other words, investing capital to fund a petroleum university is a waste of
tax payers’ money and should be considered a bad economic judgement.
Lastly,
legally, this decision should be seen as offending Nigeria’s commitment to the Paris Convention on climate
change. It will be recalled that Nigeria was one of the latest
countries to ratify the Paris Climate agreement, which aims to avoid
the most devastating effects of climate change by cutting carbon emissions. Under
the agreement, each country submitted an emissions reduction proposal known as
Intended Nationally Determined Contributions (INDCs). In its INDCs, Nigeria considered 30 per cent
energy efficiency in industries, homes, businesses and vehicles, and
increased use of natural gas in
generators and renewable energy. Other measures being considered include
stopping gas flaring, capture of gas, setting standard for appliances,
generators, buildings and climate smart agriculture, all is expected to lead to
$4.5 billion benefits to the country
legally, this decision should be seen as offending Nigeria’s commitment to the Paris Convention on climate
change. It will be recalled that Nigeria was one of the latest
countries to ratify the Paris Climate agreement, which aims to avoid
the most devastating effects of climate change by cutting carbon emissions. Under
the agreement, each country submitted an emissions reduction proposal known as
Intended Nationally Determined Contributions (INDCs). In its INDCs, Nigeria considered 30 per cent
energy efficiency in industries, homes, businesses and vehicles, and
increased use of natural gas in
generators and renewable energy. Other measures being considered include
stopping gas flaring, capture of gas, setting standard for appliances,
generators, buildings and climate smart agriculture, all is expected to lead to
$4.5 billion benefits to the country
Although
projects like the Mambilla
Hydro-power plant are commendable, the signing of the FUPRE Bill to
law could be seen as encouraging/fostering the continued use of fossil fuels,
which itself is causing a huge damage to our planet.
projects like the Mambilla
Hydro-power plant are commendable, the signing of the FUPRE Bill to
law could be seen as encouraging/fostering the continued use of fossil fuels,
which itself is causing a huge damage to our planet.
Concluding
thoughts
thoughts
It
is therefore worth reminding this government of the resulting economic and
social effects of the use of petroleum to the society, and its commitment under
the Paris Climate agreement. This government needs to face the reality of an
end to the oil era. Establishing a Renewable Energy Research Institute to
complement the PTI would have been a welcome development.
is therefore worth reminding this government of the resulting economic and
social effects of the use of petroleum to the society, and its commitment under
the Paris Climate agreement. This government needs to face the reality of an
end to the oil era. Establishing a Renewable Energy Research Institute to
complement the PTI would have been a welcome development.
The
benefits of this are numerous. Nigeria can begin to conduct world leading
research on how to generate, exploit and export its huge renewable energy; at
least in a specialized and government funded research institute. Successful
research and implementation of renewable energy projects will open up new
stream of revenue for the federal government in the future when oil becomes
inevitably less profitable. It will reinstate the country’s status as a
precursor to innovation and sustainable development in Africa. And lastly, it
will reiterate Nigeria’s commitment to the Paris Convention on climate change.
The question however, is whether this government has the political will to
forsake its taste for oil, implement its climate goals and foster technological
advancements which will change the face of the nation for generations to come.
benefits of this are numerous. Nigeria can begin to conduct world leading
research on how to generate, exploit and export its huge renewable energy; at
least in a specialized and government funded research institute. Successful
research and implementation of renewable energy projects will open up new
stream of revenue for the federal government in the future when oil becomes
inevitably less profitable. It will reinstate the country’s status as a
precursor to innovation and sustainable development in Africa. And lastly, it
will reiterate Nigeria’s commitment to the Paris Convention on climate change.
The question however, is whether this government has the political will to
forsake its taste for oil, implement its climate goals and foster technological
advancements which will change the face of the nation for generations to come.
BY: Akorede Omotayo
Akorede Samuel Omotayo is a First Class
LLB graduate of Bangor University, UK and a candidate of the Freshfields
Stephen Lawrence Scholarship Scheme. He has a special interest in International
Corporate and Commercial Law practice. He also holds a BA (Hons) in Philosophy,
Ekiti State University, and is presently preparing for his Bar I due to start
June 2018.
LLB graduate of Bangor University, UK and a candidate of the Freshfields
Stephen Lawrence Scholarship Scheme. He has a special interest in International
Corporate and Commercial Law practice. He also holds a BA (Hons) in Philosophy,
Ekiti State University, and is presently preparing for his Bar I due to start
June 2018.