GRBusiness
Entrepreneurship: An Engine for Job Creation And Inclusive Growth in Nigeria
By: Adeniyi Ogunfowoke
Entrepreneurship simply put is taking the risk of running your own business. In the case of Nigeria, young Nigerians have to brave quite a myriad of challenges before they can actually float their businesses.
This has, however, discouraged, aspiring Nigerians to shelf their entrepreneurship dreams.
Unknown to them, being an entrepreneur does not mean you must have a brick and mortar store. You can run your entire business online – thanks to internet penetration.
Jumia and other e-commmerce platforms have proven that direct and indirect jobs can be created via ecommerce. Using Jumia as example, it has empowered thousands of Nigerians to run their businesses through various initiatives like the Jumia J Force Sales Consultancy, Jumia Vendor Hub, Jumia University and many others.
So, when it comes to job creation, you do not need to wait for the government. The government only needs to create an enabling environment while the private sector and entrepreneurs will provide the much-required employment. And being an entrepreneur is a reliable tool for closing the unemployment gap.
Entrepreneurs: Engines of Job Creation and Inclusive Growth
As developing countries continue to struggle with the limited capacity to create jobs and absorb new entrants into the labour market, the attractiveness of including entrepreneurship in job creation toolkits has grown.
Presently, entrepreneurs and small- and medium-sized enterprises (SMEs) are widely considered to be vital to national economies, particularly because they create a higher share of total jobs than other employers.
While entrepreneurial activities create some new jobs in the short term, more interestingly, the competition created by new firms can replace inefficient companies. The loss of jobs from those companies and from failing startups is offset by job creation in the first year of a firm’s life, providing a net increase in jobs for the overall economy in the long term.
Challenges Facing Entrepreneurs in Nigeria
Promoting an ecosystem that nurtures entrepreneurs should be an important policy priority for governments looking to further develop their economies. However, despite an increased policy focus on the value of entrepreneurship and SMEs, there are still many challenges facing entrepreneurship in a country like Nigeria. They include but not limited to (1.) lack of capital ( 2) difficulty in securing loans (3) lack of infrastructure (4) poor entrepreneurship knowledge.
Despite these challenges, there are countless companies in the country that are performing and still employing Nigerians. In fact, capital is no longer an excuse when it comes to floating a business. There are a good number of fintechs out there that are willing and ready to grant business loans within 24 hours as long as you meet their requirements. On Jumia’s part, it offers business loans to vendors who have met the terms and conditions. This has boosted their businesses and helped them employ more hands. The reason why this types of loans are attractive to would-be entrepreneurs is that of their flexible repayment plans.
Improving the Ecosystem for Entrepreneurship
The entrepreneurship ecosystem in Nigeria is growing at a geometric pace. Today, there are incubation hubs, accelerators and innovation centres training and grooming the next set entrepreneurs. They will not only get training, but they will also get funding which cam sometimes be equity free. However, there is more to be done to ensure that the efforts are not just window dressing.
There must be a strong and solid collaboration between government and SMEs, ecommerce companies and innovation centres. These will help ensure that the efforts are well-coordinated.
Some of the other ways to improve the entrepreneurship ecosystem include regulatory reform, socio-cultural change and education and access to credit and financing.
Clearly, entrepreneurs across the country would benefit significantly from having easy access to neighbouring markets for finance, consumers, and input goods and services. Harmonizing supply chains for entrepreneurs would go a long way in improving their market position.
The economic urgency of providing jobs has become clear following the high unemployment rates. While surely not a panacea for all of Nigeria’s unemployment woes, programs that spur entrepreneurship and support SMEs can help Nigeria provide jobs and promote inclusive growth.
…OML 13 Asset Eyes 80,000 bpd by End of 2025
In a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.
It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain.
During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.
He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.
Energy
NNPC Ltd Set to Supply 100mmscf/d Gas to Dangote Refinery
…10-year Deal to Boost Local Production, Revamp Industrial Growth, reports Ikenna Oluka
The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
This development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The agreement represents a milestone for both NNPC Ltd and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country.
Women in Maritime Africa (WIMAfrica), in a significant step forward for female representation in the Maritime field, held a strategic meeting with SIFAX Group at the SIFAX headquarters on November 12th, 2023.
The two organizations aim to foster mentorship, sponsorship, and skills development programs that will empower women to pursue and excel in maritime careers, where female representation remains below 1%. Key figures from WIMAfrica, including Continental Vice President Mrs. Carolyn Ufere and Nigeria’s President Mrs. Rollens Macfoy, emphasized the need for corporate partnerships to expand access to training and professional networks for women. SIFAX’s Coordinating Director, Mrs. Wunmi Eniola-Jegede, expressed the Group’s commitment to gender inclusivity and highlighted the presence of women in leadership roles across its various sectors.
In closing, WIMAfrica extended an invitation for SIFAX Group to support its upcoming conference in Lagos, themed “New Economy and Moving Forward for the Next Generation,” which seeks to inspire young women to explore maritime career paths like engineering and marine security. The collaboration between WIMAfrica and SIFAX Group marks a crucial move toward an inclusive future in Africa’s maritime industry.
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