Dangote Refineries to boost foreign reserves

The 650,000 bpd production capacity would aid Nigeria with about $7.5 billion dollars forex savings on importation when it becomes operational. Nigeria currently imports large amount of its petroleum products due to the inability of the country’s refineries to utilise their full capacity. reports from the downstream of the Nigerian oil and gas sector shows that about N812 bn of premium motor spirit (PMS) was imported during the first quarter of 2018.

NLNG Task NLNG to expand beyond Train 7

 The new Train 7 will lift the country’s Liquefied Natural Gas Production output by 35% from 22 Million Tonnes Per annum to 30MTPA. The NLNG is expected to completed FID on the project by December 2018, however, the Minister for state for Petroleum encouraged expansion beyond train 7 to enable Nigeria gas production catch up with the global practice and to help improve domestic supply of LNG in Nigeria.

SNEPCO plans to relocation of its logistic base

 The youths of the oil region staged a protest in the first week of August to stop the possible plan of SNEPCO. If eventually the logistics supply base is relocated out of the region port; it is believed to lead to loss of more than 5,000 direct and indirect jobs to the indigenes.

Nigeria to launch downstream infrastructure rebirth plan

 The new plan is expected to revive operational infrastructural projects in the downstream of the petroleum sector which will help maximize NNPC assets utilization that have been idle.

Shell advise to respond to recent oil spill

 Shell has been a major stakeholder in Nigeria’s Niger Delta region since the discovery of oil in Nigeria. However, the affected community experienced this significant oil spill due to a mechanical failure in shell’s Trans-Ramos Pipeline in the region which is caused by laxity of shell to maintain the pipeline channel over the year. The indigenes have urged the Federal government to revoke shell’s OML 11 license due to social irresponsibility of the oil firm in the region.

Nigeria seeks amendment of deep offshore and Inland sharing contract

 According to the deepwater offshore sharing contract Act of Nigeria; royalty on crude oil production in water depths exceeding 1,000 metres is zero over a period of time while 4-14% royalty will be paid to the government when crude is explored at water depth below 1,000 metres. This is an unfortunate situation for Nigeria as the oil blocks awarded to IOCs in 1993 all produce from water depth above 1,000 meters. This is presently in discussion for review.

Nigeria to Commence petroleum products transportation by rail

The project is expected to commence operation in 2019. Inspection was done on the rail network to ascertain movement of petroleum products, what quantity of product would be moved on the selected rail routes. The success of this milestone will reduce the cost of transporting products within Nigeria by road.

PPMC earns $15.722m in 3 months

 Pipeline and Products Marketing Company is a downstream subsidiary of the NNPC, the earnings recorded is for the January to March 2018 sales. PMS accounted for 82% of the entire earnings.

NNPC explains different prices of gas

 This is part of the gas master plan to make the domestic gas market viable and reduce entry barriers. Investors in various sectors of the economy are encouraged to take advantage of these differentials, the prices of gas for Power sector is different so they can have cheaper energy while the goal is for Nigerian companies to compete favourably with companies that produce similar products around the world.

Nigeria power grid lost generation in June & July

 This happened as a result of shortage of gas supply and led to the collapse on the national grid which dropped  the country’s total power from a high of 3,659.5 megawatts on June 7 to as low as 41.4MW on June 8 and another power collapse occurred on July 8 which the system dropped from 4,089.1MW on July 7 to a low of 92.3MW, so far no grid collapse has been recorded in August 2018, the country’s power generation hovered between 3,000MW and 4,800MW in the first week of August.

Nigeria rely on Egina Project to spur oil output

 The Total Exploration and Production Company’s project is expected to boost Nigeria’s production by 10% when it comes on stream in Q4 this year with 200,000 bpd production.  The Egina FPSO has a storage capacity of 2.3mb of processed oil in its hull.

Nigeria power sector recorded loss in 2018

 This is attributed to the insufficient supply of gas, distribution and transmission infrastructure. This has cost the country not less than N300bn in 7 months of 2018. the peak average power till date, stands at 4,557 megawatts hour per hour (MWH/H), which was achieved on the second of February 2016, while the peak generation to date, obtained 18 December, 2017, is 5,222mw.

CBN intervenes in FX market with $210m

 This approach of the Central Bank of Nigeria has been sustainable to flow of forex trading in Nigeria in ensuring the availability of forex and also meet customers’ requests in various segments of the market. The authorized dealers in the wholesale segment of the market got $100m, SMEs segment got $55m while the invisible segment which includes travellers allowance, tuition etc got $55m respectively. This frequent injection has helped maintained dollar exchange at N360/US$ for over 3 months.

Forecast – Inflation in exchange rate

 Delloite a finance and auditing firm has predicted that the local currency will experience inflation in the next four years. Considering the frequent interventions by the CBN which has helped stabilize the market, the forthcoming election is seen as a threat to the forest inflation.

Nigeria External reserve drops

 The reserve was seen $47.119bn as end of July but dropped to $46.868bn on 6th of August. According the Central Bank of Nigeria, the decline is due to the increase in demand at the foreign exchange market which the CBN as reassure to increase its weekly intervention to ensure smooth flow of forex trading in the country.

Nigeria oil exports increase to 1.64mbpd in July

 This increase represents a growth of 1.90% from 1.61mbpd in June. The increase is significantly attributed to the resumption of operation on the bonny light export terminal.

 Nigeria imports PMS and other products

16 vessels arrived at the Lagos seaport which contained petrol, base oil and aviation fuel is expected to berth in few days. Nigeria PMS consumption stands at 65 million per day, though this is an assumption based on findings from NNPC reports.

Nigeria exports N310.3bn liquefied gas in 2 months

  As global demand continues to rise for gas, Nigeria exported about 983,000 tons of liquefied natural gas valued at N310.3billion ($862.09million) between June and July 2018. The ex-plant LNG price has reached $877 per ton in the global market. For Nigeria to sustain it gas business, the new LNG train would need about 1.15billion standard cubic feet per day (mmscfd) of natural gas, which would be supplied to it as feedstock from oil fields in the Niger Delta.

FG approves private refinery in North Nigeria

 The approved refinery project would have a producing capacity of 150,000 bpd after completion and It is scheduled to be completed in 3 years. This refinery will be linked to the government owned refinery in North Nigeria which is expected to compliment it production. The cost of the project is about US$2bn which an indigenous company ‘Blak Oil Energy Refinery’ is willing to spearhead the project by sourcing funds from oversea nations. The first phase will be 50,000bpd refinery then capacity will be scaled up with the Nigerien crude.

World Bank to disburse additional $4.5bn to Nigeria

The funding will be through 2021 to help Nigeria with power, health sector and governance projects. In total Nigeria has received an estimated amount of $10bn from the bank towards developmental projects.

Nigeria invites bidders for biomass plant

Bidders are invited to tender for the development of power generation using biomass waste plant. Qualified and interested companies should obtain tender documents from the Centre for Energy and Environment Treasury Single Account (TSA) through Remita (a government digital collection platform). Offer is valid till 31st of August 2018.

Nigeria seek Investors partnership in it refineries

 NNPC is considering plans to establish a 100,000 barrel per day brownfield refinery at its Port Harcourt and Warri sites in collaboration with private sector investors so that they can share facilities. This strategy is expected to reduce Nigeria’s dependence on importation of petroleum products.

Diamond bank to sell UK subsidiary

 The Nigerian bank is set to conclude sales agreement on it bank in Britain. This development arises as the bank plans to focus on it home investment. Although, the bank suffered loss in i 2017 annual report, as the economy begins to appreciate in Nigeria, the bank envisages to record from turnaround loan to Fast Moving Consumers Goods (FMCGs), and other corporate investments within Nigeria.

MTN secures $555.5mn from 12 banks

The loan agreement is a 7 years medium-term loan in consortium with 12 local banks namely Citibank, Diamond Bank, Ecobank, FSDH, Rand Merchant Bank, SCB, FCMB, Fidelity, Stanbic, First Bank, UBA and Union Bank. The loan facility will allow MTN fund its capital expenditure on network expansion, along with evolving business opportunities in Nigeria. MTN is taking this bold step in reliance of it confidence in Nigeria telecommunication business and the economy at large. MTN holds 40.96% of the market share with 66.48 million subscribers.

Nigeria deposit money banks invests in software

7 banks have recently invested about N8.58bn into software development to improve delivery of innovative banking products to drive efficient financial transactions and guard against cyberattacks. The banks are Access Bank Plc, FCMB, GTB, Sterling Bank, Zenith Bank, Ecobank Transnational Incorporated (the parent company of Ecobank Nigeria) and Jaiz Bank Plc.

Nigeria’s economy attracts $27.9bn investments in 3 years

 This is based on foreign direct investment inflow of the country from July 2015 to March 2018. The investment is made up of equity and other capital; portfolio investment comprising equity, bond and money market instruments; and other investments which are made up of trade credit, loans, currency deposit and other claims. This statistic proves Nigeria as an improved economy from previous economic crisis.

NNPC JV funding model empowers local banks

The alternative funding has deepened the relationship with Nigeria banks and increase FDI inflow. This model is strategic in order to meet government expenditure and strategic focus, the NNPC had to explore alternative financing, which he described as important to the sustenance of the industry. The model has been sustainable funding for deep-water production sharing which currently accounts for 41% of daily national production.

Nigeria political environment unhealthy

 Upon deflection of the senate president and other notable politicians to the opposition party, there have been series of talk around the economic interest of the nation. The VP mentioned that election is a 4-year turnover time more so, Nigeria should vote wisely for the continuity of improve economy and healthy environment for investors.

PIB passage delay hinders Nigeria oil and gas independence

Stakeholders in the Nigerian petroleum industry have stated that the delay in passing the Petroleum Industry Bill, PIB, into law has resulted in a lot of leakages, theft and sabotage in the industry. The upcoming general election will provide Nigeria with the power to vote in a government that will actualise this for the industry.

More Political parties emerge

The Independent National Electoral Commission (INEC) announced that 23 new parties have been newly registered to sum a total of 91 political parties have for the 2019 general election. This is the highest in the history of the country and it possess logistic challenge to the electoral body. However, facts have it that many of these parties will not produce a presidential candidate but run at the state election.

Senate President announce Presidential ambition

The Senate President has made his intention public to compete with for the office of the President of the country come 2019. By mid-October through November, all parties must have selected their candidates through primary election to contest in the coming election. Nigerians are further urge to obtain their voters card by its closure.

Total suggest way out on PIB passage

 The management of Total Nigeria is pushing for dialogue and public hearing at the legislatives quarters to address the worries surrounded by the bill. The PIGB was passed in July by the legislative and it awaits the presidential assent. other oil industry bills pending at the senate includes; Petroleum Host Communities Bill, petroleum Industry Administrative Bill, Petroleum Industry Fiscal Bill.