Business

Covid-19 Pandemic And The Future Of Nigeria’s Oil Industry

Published

4 years ago

June 8, 2021

By Chukwunonso Nwobi

There are three issues to consider when looking at the situation of Nigeria’s oil and gas industry ;Production slumps, COVID-19 pandemic and the non passage of PIB in 2021.

Based on this, it may be safe to conclude that, Nigeria’s oil industry is facing difficult 2021 occasioned by the delay or otherwise failure to implement certain important reforms as well as the impact of the COVID-19 global crisis.

Based on recent forecast, The Nigerian oil and gas market is expected to register a CAGR of more than 2% during the forecast period of 2021 – 2026.

However, the country-wide economic impact of COVID-19 global pandemic, crude producers are faced with a decline in both price and demand for crude, resulting in an oil slump.

General Sani Abacha : The Only Nigeria’s Head Of State Who Attained The Rank Of General Without Skipping A Single Promotion

In its industry circular of 2020, the Department of Petroleum Resources (DPR) considers the situation occasioned by the COVID-19 pandemic a serious threat and further instructed all operators to limit the number of personnel at project sites. This has the potential of leading to a breach of specific contract terms.

As we all know, Nigeria is an important oil supplier to the United States who import at between 9-11 percent of its crude oil from Nigeria. According to the International Energy Agency, in 2011, approximately 33 percent of Nigeria’s crude exports were sent to the United States, making Nigeria its fourth largest foreign oil supplier.

Today, total crude imports into the United States are falling, imports from Nigeria have declined at a steeper rate as the United States import data for the first half of 2012 show that Nigerian crude is down to a 5 percent share of total United States crude imports.

I most appreciate the fact that Nigeria’s cessation of the gasoline subsidy is likely to save the country a lot of money, the deregulation of the country’s downstream oil sector was a much-needed change for a country that depends almost entirely on imports for its gasoline, increasing investments in the upstream sector and the development of large-scale and modular refineries in the country.

Meanwhile, Nigeria’s offshore oil and gas industry continues to expand, even though not very fast, but opening more market opportunities. The growth of Nigeria’s offshore exploration and production activities may likely be attributed to the Government’s efforts of improving the nation’s hydrocarbon industry.

Unfortunately, Oil and gas production in Nigeria had been hampered by the increasing attack on oil and gas facilities by militants, oil theft has been one of the major issues and resulted in huge losses to operating companies in the country, these and many other factors are likely have a negative impact on the market growth during the forecast period.

I find it difficult to say this,but it is the simple truth that the Lack of infrastructure, uncertainties in regulations, security concerns and more recently, the COVID-19 have led Nigeria to underutilize its refining capacities, thereby pushing the country to become a net importer of refined petroleum products.

Presently, Dangote Refinery is in near completion which many expect to become the refining center in Africa ; but given Nigeria’s position of being among the world’s largest oil producing state, is one refinery going to serve the purpose?

Nigeria’s crude and condensate production slumped to around 1.79 million b/d last year from 2.04 million b/d in 2019, according to S&P Global Platts estimates.

This was the lowest output since 2016 when Niger Delta militants repeatedly attacked key oil infrastructure pushing the country’s production to as low as 1.4 million-1.5 million b/d at points that year.

President Muhammadu Buhari recently admitted that the country has been suffering heavily following a sharp drop in output and depressed global oil prices.
“We are being squeezed to produce at 1.5 million b/d against a capacity to produce 2.3 million b/d… now the oil industry is in turmoil,”

Unfortunately, Oil and gas production in Nigeria had been hampered by the increasing attack on oil and gas facilities by militants, oil theft has been one of the major issues and resulted in huge losses to operating companies in the country. These and many other factors are likely have a negative impact on the market growth during the forecast period.

I find it difficult to say this but it is the simple truth that the Lack of infrastructure, uncertainties in regulations, security concerns and more recently, the COVID-19 have led Nigeria to underutilize its refining capacities, thereby pushing the country to become a net importer of refined petroleum products.

It is in my opinion that, Nigeria needs more than just one refinery, and that we dont have to build new ones. We already have refineries, let us revive them again so that together with privately owned like that of Dangote we can become the refining hub in Africa.

Despite the COVID-19 threats, despite the militancy and oil theft, as well as other challenges, I can see both a bright and difficult future for the Nigeria’s oil and gas industry, depending on how we handle the problems.

Meanwhile it is also a time for Nigeria to stop over reliance on oil because it’s obvious that proceeds of oil will soon stop funding our numerous needs. For decades we have been living on billions of dollars without knowing; Gold in almost all Northern states, cocoa and timber in almost all southern states vis a vis agricultural opportunity in many parts of the country.

Alternatively, we need to go back to where we were before the discovery of oil. We have abundant natural resources in various states of the Federation

However, Nigeria is on the edge of altering refined products’ supply dynamics in the region with the help of the upcoming Dangote Refinery, and it is expected to become the regional refining hub in the coming years.

Once completed, the country is planning to become the refinery hub in Africa. This, in turn, is expected to attract foreign players to tap into the country’s downstream market in the near future.

CHUKWUNONSO NWOBI IS A NIGERIAN BUSINESS MAN BASED IN LAGOS.

Business

HOS Commends GBB’s Digital Infrastructure

Published

5 months ago

July 17, 2025

Nigerian Tracker

In a significant move towards accelerating the Federal Government’s digital transformation agenda, the Head of the Civil Service of the Federation (HCSF), Mrs. Didi Esther Walson-Jack, paid a strategic working visit to Galaxy Backbone (GBB) Limited, Nigeria’s foremost ICT infrastructure and shared services provider.

The visit, which took place at GBB’s National Shared Services Centre (NSSC) and Corporate Headquarters in Abuja, forms part of the HCSF’s efforts to deepen collaboration and assess the technological infrastructure supporting the government’s ongoing digitalisation reforms across Ministries, Departments, and Agencies (MDAs).

Accompanied by the Permanent Secretary of the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE), Mr. Adeladan Rafi’u Olarinre, and a delegation of Permanent Secretaries and Directors from the Office of the Head of the Civil Service, the visit featured an extensive tour of GBB’s cutting-edge Digital Infrastructure facilities. These included its Network Operations Centre (NOC), Security Operations Centre (SOC), and Uptime Institute Certified Tier III Data Centre; all built to ensure a secure, scalable, and sovereign digital infrastructure for Nigeria’s public sector.

In his welcome address, Mr. Adeladan Rafi’u Olarinre described Galaxy Backbone as a critical institution under the supervision of FMCIDE, tasked with providing the nation’s core digital infrastructure and shared ICT services. “Today’s visit is an important opportunity to showcase the significant progress GBB has made in building the infrastructure necessary for a truly digital government,” he said. “I believe this engagement will foster stronger alignment and collaboration between MDAs and GBB as we move towards a more connected and efficient public service.”

The Managing Director/CEO of Galaxy Backbone, Professor Ibrahim A. Adeyanju, expressed appreciation for the visit, noting its alignment with GBB’s mandate to support Nigeria’s digital transformation goals.

“A visit of this nature by the Head of the Civil Service is highly symbolic,” he remarked. “It reinforces the central role that the Civil Service plays in national development and highlights the importance of strategic ICT infrastructure in driving effective governance.”
He went on to emphasize that GBB’s mission to design, build, and manage Nigeria’s digital infrastructure aligns seamlessly with the Civil Service’s digital reform agenda. “Our platforms; including the 1Government Cloud, GovMail, and our extensive fibre optic network present in 28 states, are designed to support a digitally enabled, secure, and efficient government,” Prof. Adeyanju added.

He also called for greater collaboration with the Office of the Head of Service to drive the adoption of GBB’s infrastructure, particularly the fibre optic connectivity already terminated at Federal Secretariat buildings across 28 states of the country. He further appealed for support in expanding Local Area Networks (LANs) in the Federal Capital Territory (FCT) secretariat buildings to integrate more MDAs into the digital ecosystem.
In her remarks, Mrs. Walson-Jack commended the world-class infrastructure and strategic digital solutions developed by Galaxy Backbone, stating that her perception of the agency had been greatly enhanced following the tour.

“This visit has opened my eyes to the enormous potential and capacity that Galaxy Backbone brings to Nigeria’s digital journey,” she said. “I now see GBB not just as an ICT agency, but as a strategic partner in the realisation of our dream to build a modern, agile, and paperless civil service.”

She specifically praised GBB’s support for the “War Room” initiative, the widespread deployment of GovMail — currently serving over 34,000 civil servants, and the agency’s high-speed fibre connectivity provided during the 2025 International Civil Service Week hosted by her office.

Reaffirming her office’s commitment to achieving a fully paperless civil service by December 31, 2025, the Head of Service expressed optimism that this goal is attainable with stronger collaboration and technical support from GBB.

She also highlighted several strategic areas where partnership with GBB is critical, including:
Full implementation of the 1Government Cloud to host and manage MDA operations.

Adoption of an Enterprise Content Management System (ECMS) to streamline records and workflow automation across MDAs.
Synergy between the 1Government Cloud Academy and the Civil Service Academy to enhance capacity development.
Training and onboarding of civil servants on innovative tools such as Service-Wise GPT – Nigeria’s AI-powered platform designed to transform public service delivery.

In his vote of thanks, Mr. Mohammed Ibrahim Sani, Executive Director of Finance and Corporate Services at GBB, expressed deep gratitude to the Head of Service and her delegation for taking the time to visit and engage with the team. He reiterated GBB’s unwavering commitment to partnering with all stakeholders to deliver inclusive, resilient, and forward-looking digital solutions for the Federal Government.

About Galaxy Backbone
Galaxy Backbone is a wholly owned enterprise of the Federal Government of Nigeria under the Federal Ministry of Communications, Innovation and Digital Economy. It provides secure digital infrastructure, cloud services, connectivity, and platforms that power public institutions and enable the delivery of citizen-centric services. Through innovation, capacity development, and strategic partnerships, GBB is championing Nigeria’s transition to e-Government and digital sovereignty.

Business

Galaxy Backbone Unveils Ambitious 4-Year Digital Transformation Roadmap for Nigeria

Published

9 months ago

March 18, 2025

Nigerian Tracker

Galaxy Backbone Limited (GBB), Nigeria’s foremost digital infrastructure and services provider, has unveiled a bold and comprehensive four-year strategic plan (2025-2028) aimed at accelerating the integrated digital transformation Strategy (|DTS) plan for government and businesses in Nigeria.

This strategy is designed to enhance digital service delivery, strengthen connectivity, and support
Nigeria’s vision of a fully integrated digital economy.

Developed in collaboration with key stakeholders, the strategy focuses on five core pillars that will drive efficiency innovation, and sustainability in Nigeria’s digital landscape.

Mr. Chidi Okpala Head, Corporate Communications in a statement said the first focuses on building a Resilient Digital Infrastructure; ensuring that govemment and businesses have access to secure, high-speed, and scalable digital platforms.

He said by building and maintaining a robust digital backbone, GBB aims to support the nation’s growing demand for seamless connectivity and data security.

He also said the second pillar, Integrated Digital Ecosystems; fosters coll aboration between
government, businesses, and local communities, creating a more connected Nigeria.

He however said, through this initiative, GBB seeks to break silos and establish a unified digital
experience that enhances communication, innovation, and service delivery.

He added that to meet the evolving demands of governance and business, the strate gy prioritizes Innovative Service Delivery; ensuring that digital solutions are tailored to address economic, social, and administrative needs.

“By leveraging cutting-edge technologies, GBB is committed to driving efficiency, economic growth, and improved public service delivery.”

“Now, recognizing the critical role of trust in the digital era, the fourth pillar of the strategy places a strong emphasis on Digital Leadership & Trust.

“GBB is dedicated to fostering a culture of cybersecurity transparency, and accountability, ensuring that Nigerias digital infrastructure is not only efficient but also secure and reliable.”

“To sustain long-term impact, the fifth pillar, Financial Sustainability; remains a key priority.”

According to him, by investing in innovative technologies and expanding its digital services, GBB aims to drive revenue growth while ensuring affordability and accessibility for all users.

He also maintained that at its core, this strategic roadmap is designed to enhance government efficiency, boost economic development, and improve the overall digital experience for Nigerians.

” So, as part of its commitment to achieving these goals, GBB is actively engaging with government agencies, private sector players, and international and local partners to foster collaboration and accelerate implementation.”

He pointed out that through strategic partnerships, the organization is poised to lead Nigeria into a new era of digital excellence, ensuring that businesses and government institutions alike are equipped for the future.

Galaxy Backbone, through its IDTS plan, remains steadfast in its mission to drive Nigeria’s digital transformation through world-class infrastructure, secure connectivity, and innovative solutions that power progress.

Business

GBB to Train Over 300 Civil Servants on Govmail

Published

9 months ago

March 11, 2025

Nigerian Tracker

Abuja, Nigeria – Galaxy Backbone (GBB), the nation’s foremost digital infrastructure and services provider, is set to train over 300 civil servants, including Email Administrators and Heads of ICT, on the adoption, management, and administration of Govmail—the secure official email platform for Nigeria’s public sector. The training, which will be conducted in batches throughout the month of March 2025, aims to ensure maximum impact and effective knowledge transfer.

This initiative is in alignment with the Federal Government’s digitalisation agenda, which prioritizes secure, efficient, and technology-driven governance. By equipping civil servants with the necessary expertise to optimize Govmail, the government is ensuring seamless communication across Ministries, Departments, and Agencies (MDAs) while strengthening data security and operational efficiency.

Prof. Ibrahim Adeyanju, the Managing Director/CEO of Galaxy Backbone, reaffirmed the organisation’s commitment to driving Nigeria’s digital transformation through innovative and secure technology solutions. “As the nation’s leading provider of digital infrastructure, GBB is playing a pivotal role in ensuring that government communications are secured, professional, and aligned with global best practices. This training will enhance civil servants’ ability to effectively utilize Govmail in carrying out their official responsibilities,” he stated.

The training is being conducted in collaboration with the Office of the Head of the Civil Service of the Federation (OHCSF), who has sent out a Circular to all MDAs informing them of this specialized training aimed at providing hands on experience with GOVMAIl features and ensure uniform adoption of and compliance with government approved digital communications standards. This further reinforces the government’s commitment to a digitally-driven public service. It would be recalled that the Head of the Civil Service of the Federation recently described Govmail as a ‘game changer’ for government communication. This underscores the significance of the platform in enhancing inter-agency collaboration, data sovereignty, and information security across all MDAs.
Through this capacity-building initiative, GBB is reinforcing its role as a key enabler of Nigeria’s digital transformation journey, ensuring that public sector professionals are well-equipped to harness the full potential of digital tools in their daily operations.

About Galaxy Backbone
Galaxy Backbone Ltd is a digital infrastructure and services company committed to providing secure and efficient digital solutions to support governance, service delivery, and national development for public and private sector organisatuons. GBB plays a critical role in the digitalisation of government processes, ensuring efficiency, security, seamless collaboration across MDAs and providing a platform for enabling digital services across corporate and public organisations.

Signed:
Chidi Okpala
Head, Corporate Communications