By Adeniyi Onifade
Immediate past Managing Director, National Engineering and Technical Company (NETCO), Engr. Johnson Awoyomi has put forward innovative solutions to the fuel scarcity challenge bedeviling the country.
Engr. Awoyomi’s recommendations are contained in one of his three books launched over the weekend in Lagos-The Cost of Fuel Scarcity in Nigeria, in an event that also marked his birthday and retirement from NETCO, an NNPC subsidiary.
The other books he authored are Maximising Government Net Revenue in the Oil, Gas and Energy Sector- Cost Engineering Perspectives; Cost Engineering and Cost Control of Medium to Large Capital Projects.
Described as a veteran of the “NNPC Fuel War Room” having served the nation on numerous occasions in addressing fuel scarcity and eliminating queues at the retail outlets, Awoyomi recommended the creation of a national war room for the revamp of the refineries as well as phased deregulation of the downstream subsector among others as fixes for the recurring fuel scarcity in the country.
The book presents an expose of what the government and the NNPC do to ensure availability of fuel at retail stations at an affordable price as well as adequately capture the cost of fuel supply and distribution disruptions otherwise termed fuel scarcity.
The consequence of scarcity according to him is that a conservative rate of N330 million per week computed as man hour cost, is lost from staying in fuel queues.
The 134-page book reviewed by NNPC’s Group Executive Director, Downstream Engr. Adeyemi Adetunji provides insight to the direct and indirect cost associated with fuel scarcity and uncovers a large number of the cost which are not readily visible.
According to the author, “Up to ten labour cost ranging from man hour cost of field personnel, security, war room staff, queue, logistics are listed.”
Based on these estimations, he said it was clear that the cost of ‘fuel scarcity is huge and unsustainable.
In the second book launched at the weekend, Maintaining Government Net Revenue in the Nigerian Oil, Gas & Energy Sector-Cost Engineering Perspective, reviewed by Supply Chain Commercial Manager of Royal Dutch Shell, Nigeria Greg Akhibi, the author provides a step-by-step guidance on how organizations, operators, joint venture partners and governments can maximize their net revenue.
Recommending the book as a standard text for mid to senior level managers of oil and gas assets, Akhibi said that post graduate students in related fields like petroleum economics and project management will find the book invaluable.
The last of the three, the 304-page book titled ‘Cost Engineering and Cost Control of Medium to Large Capital Projects’ reviewed by the Principal Consultant, Lonadek Nigeria Limited, Dr. Ibilola Amao, makes a case for the renaming of Cost Engineering departments into three parts rather than just project control departments that a lot of companies establish: Cost Control, Cost Estimating, Planing and Scehdulimg.
According to her, Engr. Johnson should be acknowledged as the father of Cost Engineering in the Nigeria Oil and Gas industry because of his enormous contribution to cost engineering in the industry.
Also, Sir. Billy Okoye, Group Executive Director, Ventures, NNPC Ltd said the book on cost optimisation was a practitioners manual in managing project cost, cost control, investment appraisal as well as risk analysis.
On his part, Awoyomi who joined NNPC in 1992 said the books were based on his over 30 years’ experience in the oil and gas sector.
“It is important to put our experiences into perspective for generations unborn to learn. It is a priviAAhave served this nation and I thank God for His mercies on my life,” he said.