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Saudi Finance Minister Replaced by Royal Decree

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  • Saudi Finance Minister Replaced by Royal Decree

Saudi Arabia’s finance minister for two decades was replaced on Monday, capping a major overhaul that leaves key posts under the control of a new generation of bureaucrats close to Deputy Crown Prince Mohammed bin Salman.

A royal order published by the official Saudi Press Agency excused Ibrahim Al-Assaf from his post and replaced him with Mohammed Al-Jadaan, formerly head of the kingdom’s Capital Markets Authority. Al-Assaf was appointed minister of a state and will remain a member of the cabinet.

Since taking power early last year, King Salman replaced the ministers of oil, foreign affairs, trade and economy as the kingdom grapples with low oil prices. In a push led by Prince Mohammed, the government has also cut spending on projects and curtailed a generous system of energy and utility subsidies.

Al-Jadaan’s appointment reflects the reform direction that Saudi Arabia is moving toward with “wide support” for a “younger generation of bureaucrats,” said Fahad Nazer, who worked at the Saudi embassy in Washington and is now a political analyst at JTG Inc. in Virginia.

Younger Generation

“Most of these senior positions are going to younger, less experienced people, but people who are still very-well qualified and energetic,” he said in a phone interview.

Al-Jadaan, a lawyer appointed to the Capital Markets Authority in early 2015, oversaw the Saudi bourse opening to qualified foreign investors last year as well as several more recent changes intended to relax barriers to overseas investment. Saudi Arabia is on course to join MSCI Inc.’s emerging-markets index in 2018, he said in a television interview with Bloomberg Markets Middle East last month.

Al-Assaf was one of three senior officials who appeared on a popular Saudi talk show this month to defend recent austerity measures implemented by the government. The ministers’ performance was criticized by many Saudis who said they were unconvinced.

The set of royal orders issued Monday evening local time also replaced the public transport chief and the governor of the Saline Water Conversion Corporation, among other officials.

The orders did not say who would take Al-Jadaan’s job at the Capital Markets Authority. A spokesman there could not be reached for comment outside normal business hours in Riyadh.

The benchmark Tadawul All Share Index rose 0.6 percent at the close on Monday in Riyadh before the royal decrees were announced.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

FG Unveils N122 Billion Boost for Six Indigenous Gas Companies

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The Federal Government has unveiled six indigenous gas companies eligible for the N122 billion equity participation program under the Midstream Downstream Gas Infrastructure Fund (MDGIF).

According to the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, the six companies—Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—have undergone rigorous screening.

Ekpo made the announcement during the signing ceremony of the MDGIF and Promoters Agreement held in Abuja.

He revealed that the investment reflects the government’s commitment to energy security, economic growth, and the development of the country’s gas infrastructure.

Ekpo described the signing as a significant step in the country’s energy sector.

He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”

“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF.”

Ekpo assured that the N122 billion will not be the last as the MDGIF is screening another batch of beneficiaries.

He urged the benefiting investors, who are the first to sign agreements for the projects since the enactment of the Petroleum Industry Act (PIA), to live up to expectations.

He encouraged companies that did not make the first list not to lose hope.

The minister said, “For those who did not make the first six, we will have a second batch. Go home and put your records in order, and of course, this is the first since the passing of the PIA in 2021. This is the first signing, and we expect you to live up to expectations.”

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Oil Prices Rise Further on Middle East Tensions, Supply Fears

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Oil continued to rise on Wednesday over worries that the escalating conflict in the Middle East could threaten oil supplies.

Brent futures rose 34 cents, or 0.46%  to settle at $73.90 per barrel while the US West Texas Intermediate (WTI) crude climbed 27 cents, or 0.39%, to settle at $70.10 per barrel.

Meanwhile, Israel and its ally, the US vowed payback for the attack, a sign that conflict in the region is intensifying after Iran fired more than 180 missiles at Israel, its biggest-ever direct attack on the country on Tuesday.

Since the late Tuesday bombing, Israeli ground troops have fought with Hezbollah in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing vengeance and raising fears of a full-fledged conflict.

According to rumors, Israel’s reaction might include hitting Iranian oil production facilities and other critical targets.

On Wednesday, Iran said that its missile attack on Israel was stopped, barring further provocation.

It claimed that any Israeli retaliation to its attack would result in widespread destruction as Iran accounts for around 4% of world oil output.

Analysts say that an attack on Iran’s oil infrastructure could provoke it to respond with a strike on Saudi oil facilities, similar to one conducted in 2019 on crude processing facilities there.

Meanwhile, a meeting on Wednesday of the top ministers of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ kept oil output policy unchanged.

The group is set to raise output by 180,000 barrels per day each month from December.

Meanwhile, the US Energy Information Administration (EIA), the official US agency, reported an estimated inventory build of 3.9 million barrels for the week to September 27, driven by the latest escalation in the Middle East.

The inventory change compared with a draw of 4.5 million barrels for the previous week, which also saw declines in fuel inventories.

It also compared with the American Petroleum Institute’s estimate, which pegged crude oil inventory change for the final week of September at a negative 1.5 million barrels.

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Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

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The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

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