Total’s Egina FPSO to commence Operation
It has a floating and storage capacity of 200,000bpd. The fabrication and integration works are complete and the FPSO arrived at Oil Mining Lease (OML) 130, the offshore field of Total Nigeria in the last week of August 2018. The FPSO cost $3.3bn and it was built by Samsung Heavy Industries of Korea (SHI). This development by Total indicates positive revenue outlook for Nigeria’s economy at a time oil producing nations are in a race to draw much more value from the commodity market after debilitating low price cycle.
NLNG seeks finance on NLNG Train 7 project
About $7bn is needed for the project. NLNG announced it seeking about $7 billion for the sustainability of its operations and expansion project, which will increase its production capacity from 22 Million Tonnes Per Annum (MTPA) to about 30 Million Tonnes Per Annum.
Experts calls for improved framework on ECA
The excess Crude Oil account is expected to be a savings for the government, but monies from the crude sold into the Nigeria ECA account is not transparent. The experts urged the Federal Government to make constitutional provision that will guarantee automatic savings of surplus from oil revenue in the excess crude account (ECA) which help cater for Nigeria’s economic development through infrastructure and many more.
NNPC/Chevron spends N20.6 billion on community development in 2-years
The Corporate Social Responsibility (CSR) with NNPC as JV partner has ran over $57.2m (N20.6bn) in about 600 community development projects across the Nigeria delta from 2006 till date. The intervention has been helpful to the oil region in providing scholarships, built new schools, medical facilities, housing, agriculture development and infrastructure improvements.
NNPC plans to go Public
The group managing director of NNPC, said at least 40% of the NNPC investment worth will be traded public on the Nigeria Stock Exchange market (NSE) which will enable investors and individuals become shareholders of the oil corporation. The realisation is dependent on the presidential assent to the PIGB. The bill is aims to separate the regulatory, policy and commercial roles of public sector agencies and allocate respective roles to each agency properly positioned to perform them.
Shell ask to expand scope of oil spill areas
The oil spill was earlier reported to have happened on 17th of May 2018 from Shell’s Trans Ramos pipeline in the Niger Delta. The affected communities claim that the spill had spread to wider areas and affected more places than the ones covered by the joint investigation team that inspected the spill. The report obtained is expected to unravel the cause of the spill and also the amount of oil spilled into the waterways to guide compensation process and clean up exercise. So far 166 acres have been declared as affected areas by The National Oil Spills Detection and Response Agency (NOSDRA).
Nigeria commence nationwide exploration projects for minerals
8 companies out of the 44 that participated in the bid round were successful. Fact proves that Nigeria is blessed with much more natural resources in abundant excluding oil. The present administration is seeking to explore opportunities in the mining sector of the country to enhance the economic growth and to relieve Nigeria of our sole independence on oil.
Total Nigeria tops NSE chart
Total Nigeria emerge the top list of the energy sector on the Nigeria stock exchange floor with 27 trades of 513,315 volume, valued at N93.2m in the 3rd week of August trading report.
CBN intervened FX market with $543m & CNY63m
The intervention indicates the apex bank’s commitment to maintain the country’s external reserves to safeguard the international value of the Naira in line with the Bank’s mandate. About CNY 63.21mn (Chinese Yuan) was sold in the spot and short-tenured forwards, arising from bids received from authorized dealers. This is expected to boost the trading relationship with China and to strengthen the Naira.
CBN considering legalizing Cryptocurrencies
The central Bank of Nigeria is proactively looking at regulating the use of cryptocurrencies for trade exchange in the FX market in Nigeria. The bank has setup a team of digital currency experts to brainstorm on the currencies regulations and possible impact on Nigeria’s economy, this will help determine if the nation will adopt it into the Nigeria financial and monetary system.
Naira gains marginally against US$
Naira gained 30 kobo to exchange at N359/US$ in the parallel market while pound sterling and Euro closed at N464 and N414 respectively. US$ traded at the investors window at N363 to a US$. The CBN however continued to boost liquidity at the FX market with additional $210m in the 4th week of August to ensure the smooth trading flow.
Nigeria import in Q2
According to the National Bureau of Statistic (NBS), 165.71m litres of LPG was imported into Nigeria from January to June 2018. April recorded the highest volumes of LPG imported into Nigeria at 59.89mn litres, 55.37mn litres was imported in May, while the lowest volume was imported in June at 50.45 million litres.
Oil consortium to deliver PMS
The consortium involves JIL Engineering and Oil services ltd and Amber Enerji Makina logistics. Both firms are set to deliver 1.89m litres of PMS as part of Nigeria’s move to stop fuel importation by 2019. The project would save the Federal Government over $1.7bn in foreign exchange yearly and it will also boost local production as a substantial part of procurement and site construction will be done locally within the country with a refining capacity of about 100,00bpd. It was owned by BP, but it has been sold off to the companies that would bring it over from Turkey to install in Nigeria.
Nigeria targets 20,000MW by 2021
The Transmission Company of Nigeria (TCN) is working to upscale power generation along the national grid to about 20,000mw by 2021. The aim is to provide operational flexibility and reliability in delivering bulk power to the distribution companies, international customers and other classes of customers that are connected directly to the national grid for the ease of doing business in the country.
Nigeria to consider methanol fuel
This is being presently considered by the Nigeria government to enhance electricity through methanol fuel technology. The adoption of methanol would revitalize our weak industrial base as many chemicals would be produced by industries through its exploitation.
NNPC to establish 200,000bpd condensate refineries
Two refineries will be setup with 100,000bpd capacity respectively at the western Forcados area. The condensate refineries would operate along the NLNG model, is expected to increase the nation’s revenue base, provide jobs for the people and save for the country a lot of foreign exchange. NNPC believes the strategic initiative would increase the energy security for Nigeria and grow NNPC refining capacity from 445,000 barrels per day to 645,000 barrels per day.
FG to Cocoa export investment
The presidency has signed the Instrument of Accession to the International Cocoa Agreement of 2010, this agreement is set to improve the income generation of Nigeria rather than full dependency on oil revenue. improved agriculture is seen as a future for Nigerian economy by improving its Forex market revenue.
Nigeria excited by non-oil sector growth
According to the National Bureau of statistics, Nigeria’s non-oil sector grew by 2.05% in the 2nd quarter of 2018. This is recorded as the strongest in the last 3 years. The growth ranges from telecommunications, Transportation, construction, electricity and agriculture. 2.05% growth is indeed significant for the non-oil and gas sector contribution to the economy.
SME’s operators to get loan at 9%
The apex bank in Nigeria has begun incentivizing deposit money banks to offer single digit loans of 9% to SME’s operators in the real sector. The loan will be disbursed by the CBN through the commercial banks and the banks are required to submit projects to the CBN, each project can get a minimum of N10bn to execute.
Nigeria banks accused of fund conspiracy in FX market
CBN reported that these banks help MTN a south African telco company move us $8.1bn from Nigeria in breach of foreign exchange regulations. The banks involved are to refund the money to CBN; Standard Chartered PLC was fined 2.4 billion naira ($7.86 million), Stanbic IBTC Bank PLC 1.8 billion naira, Citibank 1.2 billion naira and Diamond Bank PLC 250 million naira.
UBA’s half of the year result
The bank earnings grew by 16% y/y representing N258bn, compared to N223bn in corresponding period of 2017. The board of directors have declared it a healthy financial period for the bank as it has continued to be resilient over the years.
President Buhari confident to return to office
The President is confident that his party’s recent victory at local government poll shows that the party will retain and claim more states in the coming elections. The ruling party has not declared or announce any other presidential candidate for the office which makes the President the only candidate compared to the major opposition party (PDP) having over 4 aspirants for the same office.
NNPC alleged of Unremitted funds
The audit consultant, Price Waterhouse Cooper (PwC) to the federal government of Nigeria found out that about 4 Trillion was unremitted by NNPC and DPR in the year 2016. The report also revealed that the exact volume of product the Nigeria refineries under the review period. This report which was recently released will call the attention of the legislative when resumed back from recess in September.
Presidential Aspirant official declares campaign camps open
As the 2019 general election draws nearer, some politician has officially declared to run for the office of the President of Nigeria with the current president in the coming elections. Some of these politicians currently occupy offices as serving senators, lawmakers and even governors. Once primary elections are held between mid- September and October and a political party representative is elected, Nigerians will be further able to decide on their right candidate to lead the country’s economy for another 4 years.
Theresa May visits Nigerian President
The British Prime Minister arrived in Nigeria on 29th of August 2018. She was received by the President in the presidential villa and held a closed-door meeting where the President Buhari assured that British government that 2019 elections will be free and fair in the country. 3 agreement were signed with British government for support in Defence, Security and economic Development to further strengthen business relationship with its colonial nation.
Reason for PIGB pending presidential assent
The presidential spokesman confirms that the president turned down assent on the PIGB because there is a clause that allows 10% of revenue generated to the Petroleum Regulatory Commission which the president feels it at the detriment of the federal and state government, knowing fully well that the commission has an existing budget. This will be deliberated on the floor of the senate when they reconvene for the reconsideration for the benefit of the industry and the entire nation.