Markets

FG Urged to Align Fiscal, Monetary Policies to Grow Foreign Investments

Published

8 years ago

September 30, 2016

National President of the Unilag Alumni and co-founder of Eko Hospital, Dr. Sonny Kuku has called for clarity and consistency in government’s policies as well as alignment between monetary and fiscal regimes in order to build confidence and grow foreign direct investment (FDI).

He made this remark during a courtesy visit by members of the National Executive Committee of the Association to Vice President Yemi Osinbajo in Abuja.

Declaring that doing business in Nigeria is still very tough in spite of the government’s best efforts, he called on the government to streamline the work of the ministries for co-ordination and effectiveness.

As part of its contribution to national development, the association offered to make available to the federal government the abundant skills and talents in its various sectoral alumni groups.

Kuku said the federal government can draw from the association’s various sectoral groups as resources and think-tanks.

Welcoming the visitors to the Villa, Osinbajo said the task of nation building is highly demanding and the federal government needs all the help it can get from every Nigerian.

He assured members of the association that he would continue to do his best in the discharge of his duties as Vice President of the Federal Republic of Nigeria and make the university and its alumni association proud.

Kuku noted that the association is keen to support the federal government in Nigeria’s trying times and to provide its perspective on the way forward for the nation and its economy as well as the university system.

He gave the Alumni’s perspectives on social development especially relating to human capital development, security and the provision of quality social services.

He emphasised the challenges of infrastructure improvement, diversifying the economy through agriculture and manufacturing, resolving foreign exchange issues and providing a more business-friendly environment. He also presented the Alumni’s perspectives on improving the university system in terms of funding and autonomy.

He urged the government to seek ways of engaging the youth, particularly on Information and Communication Technology (ICT), as a way of ensuring that the contribution of this vital segment of the population is efficiently exploited.
He added that the government needs to accelerate and sustain its interventions in power and transport sectors.

Highlighting the need for the government to make agriculture a top priority, Kuku said the government should focus on policies and programmes that would lead to significant improvements in agricultural yields and products quality.

“There must be proper administration, void of corruption and misappropriation of funds. It is time for a change. It is time for a revolution.”

The association recommended a three-point solution to the perennial problem of funding in the nation’s university system.

“We want the federal government to pay the universities per student instead of the current arrangement where subventions are doled out. Also, the Association wants our universities to place less emphasis on the tedious task of driving internally generated revenue because this distracts them from offering resourceful solutions to the nation’s challenges by way of inventions and breakthrough research, among others.

“Lastly, the students must be encouraged to pay reasonable fees and all levels of government (local, state and federal) give scholarships and student loans, just as individuals, communities and well-meaning organisations should also come to the party,” he said.

Giving the association’s perspective on university autonomy, Kuku said, “We believe that universities should become autonomous and governed independently, rather than through the Federal Ministry of Education, which could remain a regulato. We also believe that the structure of appointments to university councils should be reviewed.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

Published

3 days ago

May 16, 2024

Samed Olukoya

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

Crude Oil

Oil Prices Hold Steady as U.S. Demand Signals Strengthening

Published

4 days ago

May 16, 2024

Samed Olukoya

Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

Crude Oil

Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

Published

4 days ago

May 16, 2024

Samed Olukoya

Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.