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Global Energy Demand to Increase by 40% -OPEC

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  • Global Energy Demand to Increase by 40%

The Organisation of Petroleum Exporting Countries, OPEC, has said that the total global primary energy demand will rise by 40 percent or 108.2 million barrel of oil equivalent per day (mboe/d), by 2040. The sharpest rise would be recorded in developing countries.

In its world output report for 2016, OPEC stated: “Developing countries’ energy demand will increase by more than 100 mboe/d from 2014 to 2040 compared to energy demand growth of 3.3 mboe/d in the OECD regions and 4.3 mboe/d in Eurasia.

“By 2040, almost 63 percent of global energy demand will stem from Developing countries, compared to the current share of 51 percent.”

The report also said that oil is expected to remain the fuel with the largest share for most of the forecast period, but it is anticipated that it will be overtaken by gas at some point close to 2040.

According to the report, oil is also estimated to be the second largest contributor to additional energy needs between 2014 and 2040. Although overall, coal consumption is forecast to increase in the long term, its share in the total global energy mix is expected to decline by 4.4 percentage points.

Global gas demand increment

The report projected global gas demand increment on average by 2.1percent per annum, from around 60 mboe/d in 2014 to 102 mboe/d in 2040. This represents the largest increase among all energy sources.

Also, nuclear power is expected to increase significantly over the forecast period, driven by energy security and the need to limit CO2 emissions.

Other renewables which include wind, Photo voltaic, PV, solar thermal and geothermal is expected to increase from 3 mboe/d as at 2014 to 18 mboe/d in 2040 bringing its share in the global energy mix to almost 5 percent.

OPEC said, globally, energy intensity, measured as the amount of energy required to produce one unit of GDP, is falling and this trend is expected to continue over the long-term.

“Energy consumption per capita in OECD regions peaked around 2005 and is now on a steady downward trend. This reflects a service-oriented economy and technology-induced energy efficiency gains.

“In emerging and developing economies, energy consumption per capita is increasing, reflecting greater electrification, urbanization, expansion of the middle class, overall economic development and strong economic growth.

Despite this positive trend, energy poverty and access to affordable, reliable and modern energy for all will remain a major challenge in developing countries,” the report stated.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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Economy

FG to Partly Fund Six Rail Projects Connecting All Regions

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FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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Economy

FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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