- NPA: 25 Years Ports Devt Master Plan Underway
In a bid to ensure a healthy competition among existing ports and the ongoing Lekki Deep Sea Port and Badagry Deep Sea Ports, the Nigerian Ports Authority (NPA) is developing a ports master plan to be unveiled in the next six months.
Managing Director of NPA, Ms. Hadiza Bala Usman disclosed this in her speech at the World Maritime Day Celebration held in Lagos.
Bala Usman noted that the existing model where port development was not well thought out will see the ports compete each other out of business; a situation she said would be bad for the industry.
She said: “One of the important things that I have felt the need to institute is the port development master plan, a 25 years master plan, which will guide the development of ports I the country. We have commenced that activity at the NPA. I met on ground a development master plan for individual port in the NPA but I felt the need to have a holistic master plan which guides all such port development. That way we will not have over laps and have ports that will be competing with each other and compete each other out of business.
She added: “We need to have a clear plan and structure with which port development plan s are approved. We have the Lekki Deep Sea Port approval currently going on in Lagos state, we have the Badagry Deep Sea Port and we have Tincan and Apapa ports. We need to have the respective scope with which these ports will operate to ensure that capacity utilisation in terms of capacity is addressed as we approve such port development. So having a master plan, a clear vision of port development is critical and the NPA is leading that. Within the next six months we will come out with a port development master plan which we will unveil to stakeholders before we get the necessary approval.”
On port capacity utilisation and its current capacity, she said: “I think what we need to understand is that as we approve and as we present respective port development, we need to understand and assess what we have now on capacity utilisation. Has it been utilised fully? We need to look at clusters of port development to determine the competition as we approve them. We have to determine if indeed what we have would be able to accommodate the need for expansion and traffic to come into the country.
“We have noted the period were the deployment has been made and we have identified need to build on the existing infrastructure. Right now we have commissioned our staff to go around all of our ports to determine the level of decay of our infrastructure. Primarily, I have given the clear directive that all our budgetary provisions will be tied to infrastructure that will add revenue to the Nigerian Ports Authority. Indeed our focus is to see that our degenerated infrastructure is built upon and expanded to take on need for the Nigerian port to have expansive capacity to take on additional traffic.”
Speaking on the plan to review port concession agreement, she said as someone who worked at the Bureau of Public Enterprise (BPE), she understands the need for private sector to lead in the investment and development of the ports in the country.
“I met on ground concessions that have been 10 years in operation and I believe that it is time for us to have a review. The concessionnaires themselves believe that it is time to look at some of its terms. The economic situation in which some of the concession agreements were entered into are not the same today. There are clear assumptions that were made within those initial concessions that are different now. There are also respective obligation across both parties that have not been met within the 10 years has not been met. I think it’s time for both parties to seat around the tale and review those terms to determine what obtains today.
“We have noted the operators have development plans that they have not adhere to during the concession period, we have noted that the authority itself has not committed to some of the obligations that were stipulated in the concession. As we go through the review of the concession, both parties need to confirm and commit to their part of the agreements. We will ensure sanctions and penalties for not compliance across the board, both the authorities and the operators, going forward we will ensure that there is a level playing field for all operators.
“Within the concession agreement, everyone can confirm that there was need for a review within two years but we have waited 10 years for a holistic review of the concession agreement. We have also noted the few review in view of tenor elongations without a commensurate review of the financing model, which are tied to each other. Whatever timelines you have for the revision period is tied to the financing model and a tariff regime which is contained within the concession agreement, “he said.
OPEC Expects Increase In Global Oil Demand Raises Members’ Forecast on Crude Supply
The Organisation of Petroleum Exporting Countries (OPEC) yesterday lifted its forecast on its members’ crude this year by over 200,000 bpd and now expects demand for its own crude to average 27.65mn bpd in 2021.
This is almost 5.2mn bpd higher than last year and around 2.7mn b/d higher than an earlier estimate of the group’s April production.
According to the highlights of the organisation’s latest Monthly Oil Market Report (MOMR), OPEC crude is projected to rise from 26.48 million bpd in the second quarter to 28.7 million bpd in the third and 29.54 million bpd in the fourth quarter of the year.
The report also indicated a fall in Nigeria’s crude production from 1.477 bpd in February to 1.473, a difference of just about 4,000 bpd before rising again in April to 1.548 million bpd, to add 75,000 bpd last month.
OPEC stated that its upward revision of members’ crude was underpinned by a downgrade in the group’s forecast for non-OPEC supply, which it now expects to grow by 700,000 bpd to 63.6mn b/d against last month’s report’s projection of a 930,000 bpd rise to 63.83mn bpd.
The oil cartel projected that US crude output would drop by 280,000 bpd this year, compared with its previous forecast for a 70,000 bpd decline.
On the demand side, OPEC kept its overall forecast unchanged from last month’s MOMR, stressing that it expects global oil demand to grow by 5.95 million bpd to 96.46 million bpd this year, partly reversing last year’s 9.48mn bpd drop.
Spot crude prices fell in April for the first time in six months, with North Sea Dated and WTI easing month-on-month by 1.7 percent and 1 percent, respectively.
On the global economic projections, the cartel said stimulus measures in the US and accelerating recovery in Asian economies might continue supporting the global economic growth forecast for 2021, now revised up by 0.1 percent to reach 5.5 percent year-on-year.
This comes after a 3.5 percent year-on-year contraction estimated for the global economy in 2020.
However, global economic growth for 2021 remains clouded by uncertainties including, but not limited to the spread of COVID-19 variants and the speed of the global vaccine rollout, OPEC stated.
“World oil demand is assumed to have dropped by 9.5 mb/d in 2020, unchanged from last month’s assessment, now estimated to have reached 90.5 mb/d for the year. For 2021, world oil demand is expected to increase by 6.0 mb/d, unchanged from last month’s estimate, to average 96.5 mb/d,” it said.
The report listed the main drivers for supply growth in 2021 to be Canada, Brazil, China, and Norway, while US liquid supply is expected to decline by 0.1 mb/d year-on-year.
Oil Rises Over Concerns of Fuel Shortages
Oil prices rose on Tuesday, as lingering fears of gasoline shortages due to the outage at the largest U.S. fuel pipeline system after a cyber attack brought futures back from an early drop of more than 1%.
Benchmark gasoline futures prices rose 1 cent to $2.14 a gallon.
On Monday, Colonial Pipeline, which transports more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel, said it was working to restore much of its operations by the end of the week.
“Right now there’s a generalized anxiety premium being built into prices because of Colonial and it’s keeping a floor under the market,” said John Kilduff, partner at Again Capital LLC in New York.
Fuel supply disruption has driven gasoline prices at the pump to multi-year highs and demand has spiked in some areas served by the pipeline as motorists fill their tanks.
Traders booked at least four tankers to store refined oil products off the U.S. Gulf Coast refining hub after a cyber attack that knocked out the pipeline, shipping data showed on Tuesday.
North Carolina, the U.S. Environmental Protection Agency and Department of Transportation issued waivers allowing fuel distributors and truck drivers to take steps to try to prevent gasoline shortages.
OPEC on Tuesday raised its forecast for demand for its crude by 200,000 bpd and stuck to its prediction of a strong recovery in global oil demand this year as growth in China and the United States counters the coronavirus crisis in India.
Meanwhile, the rapid spread of infections in India has increased calls to lock down the world’s second-most populous country and the third-largest oil importer and consumer.
India’s top state oil refiners have already started reducing runs and crude imports as the new coronavirus cuts fuel consumption, company officials told Reuters on Tuesday.
On the bullish side for crude, analysts are expecting data to show U.S. inventories fell by about 2.3 million barrels in the week to May 7 after a drop of 8 million barrels the previous week, a Reuters poll showed.
Gasoline stocks are expected to have fallen by about 400,000 barrels, analysts estimated ahead of reports from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday.
SEC To Ban Unregistered CMOs From Operating By Month End
The Securities and Exchange Commission (SEC) says it will stop operations of Capital Market Operators (CMOs) that are yet to renew their registration on May 31, 2021.
This was contained in a circular signed by the management of SEC in Abuja on Monday.
On March 23, SEC had informed the general public and CMOs on the reintroduction of the periodic renewal of registration by operators.
The commission noted that the reintroduction of the registration renewal was due to the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.
“To provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public, to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission,” SEC explained.
According to the circular, the commission said CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.
It explained that CMOs were required to have completed the renewal process on or before April 30, however, the commission said late filing for renewal of registration would only be entertained from May 1 to May 31.
SEC also said that asides from barring the CMOs who failed to comply accordingly, their names would be published on its website and national dailies.
It added that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.
Ethereum Market Cap Surpasses JPMorgan As It Hits A New ATH
International Breweries To Train 500 Young Entrepreneurs Through Kickstart Initiative
Chinese Smartphone Giant Xiaomi Shares Gains Over 6 Percent After U.S. Agrees to Remove it From Blacklist
News4 weeks ago
COVID-19: Nirsal Microfinance Bank (NMFB) Loan – Covid19.nmfb.com.ng
Social Media4 weeks ago
Lack of Basic Amenities, Unclear Growth Policy Force Twitter to Ghana, Builds Headquarters in Ghana
Billionaire Watch1 week ago
Ethereum Co-Founder Becomes The Youngest Crypto Billionaire As ETH Hits $3K
Bitcoin4 weeks ago
Bitcoin Sets a New Record High at $63,000 on Tuesday
News4 weeks ago
Covid19.nmfb.com.ng: How to Check Nirsal COVID-19 Loan Status
Cryptocurrency4 weeks ago
Rap Icon Nas Could Net $100M When Coinbase Lists on Nasdaq
Crude Oil4 weeks ago
Oil Rises on Drawdown in U.S. Oil Stocks, OPEC Demand Outlook
Cryptocurrency3 weeks ago
Electronics Retailer Newegg now Accepts Dogecoin As Payment