Can you introduce Falcon Corporation?

We have over 30 years of history operating in Nigeria. The company was founded in 1994. Before founding Falcon Corporation, it took us ten years to receive our first license to distribute natural gas, but we persevered. We began in Port Harcourt, but in 2000, we moved to Lagos, recognizing the opportunities in this market to distribute natural gas. We delivered our first gas shipments within seven months of our license being awarded, and we have grown ever since. We were the third private company awarded a franchise corridor to distribute natural gas in the country.

We constructed 40 km of pipelines to distribute our gas and have developed expertise in this area. Our competitive advantage was our cost; while larger companies would subcontract their construction projects, we kept everything in-house. We have always focused on cutting red tape. During the construction of the initial pipeline project, I lived on-site, ensuring that any equipment that needed replacement or maintenance would be pre-approved and not have to be delayed by office bureaucracy. Making decisions on-site was a great advantage. 

Currently, we are constructing West Africa's largest LPG storage facility in Port Harcourt, with a capacity of 15,000 mt, which is due to be completed by November 2024. We have identified some inefficiencies in the Port Harcourt-Lagos LPG supply chain that we believe this facility will address.  

Could you discuss the challenges that Nigeria's economy faces?

Nigeria's per capita gas consumption is lower than that of Senegal. West Africa is generally starved of LPG and desperately needs more capacity. In our country, there is still a rampant use of firewood for domestic use. Our LPG storage facility is part of a national effort to transition Nigeria's energy consumption towards gas. Nevertheless, because of current foreign exchange instability there have been challenges. We were fortunate to have the foresight to secure the financing and purchase the necessary dollars for the project before the value of the naira plummeted because we saw this decline coming. 

You have to think ahead and be adaptable to survive as a business in Nigeria. We have diversified into LPG, and today, we have a franchise to take natural gas to the Lagos Free Zone. Our expertise is gas distribution, and as a downstream operator, we have partnered with a gas producer to create a joint venture called Optimera, which will deliver gas to the free zone. We are currently constructing and developing this project. 

Could you give an overview of Nigeria's gas industry and its potential for Nigeria?

Natural gas is the future of this country. Unfortunately, government initiatives to promote the gas industry have not had the proper impact. The biggest obstacle to Nigeria's development is the lack of on-site production. Despite the push to encourage local content, Nigeria's approach could have been more successful. We still source the necessary equipment from abroad, but the contracts are awarded to Nigerians who procure these items. There is still no value added inside the country. We are a country of importers, and this needs to change. Indigenous production is critical to developing our country. We need to promote iron and steel production in the country as the basis for industrialization and fabrication for a multitude of industries, including our own.

Additionally, corrupt practices are an added cost. Nigeria has a great pool of talent. If you look abroad, talented Nigerians are making a mark in many industries. If we can change the way of doing business here, we will surely unlock the country's potential. 

What are the priorities for Falcon Corporation in the coming years?

Our priority is to maintain the company's culture of discipline and ethical practice. We have very low turnover, which speaks to our commitment to strict principles. We do not condone or do business with anyone who does not follow the law in the strictest sense and have built a great reputation this way. Everything must be ethical, fair, and right. Unfortunately, in our country, there is a lot of rule-bending and breaking, but we follow the rules to the letter, which makes us stand out.