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Rivers Backs Plan to Move oil Firms to Niger Delta

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Heritage Oil
  • Rivers Backs Plan to Move oil Firms to Niger Delta

Nigeria’s southern oil-rich Rivers state on Saturday backed a government call for major oil companies to move their offices to the Niger delta region, as part of measures to stem unrest in the oil-rich area.

Attacks by rebels seeking a fairer share of Nigeria’s multi-billion-dollar oil wealth for local residents have slashed output and hammered revenue at a time of falling global crude prices.

Last week, Nigeria’s Vice-President Yemi Osinbajo ordered major oil companies including Anglo-Dutch Shell as well as US groups Mobil and Chevron to relocate their main offices to the troubled Niger delta region, where most people remain impoverished despite decades of oil extraction.

“We are in full support of the acting president,” Rivers state information commissioner Austin Tam-George said in a statement Saturday, referring to Osinbajo.

The vice president has been in charge while President Muhammadu Buhari has been on medical leave in Britain.

“If the oil companies move their headquarters to the Niger delta, they will be more responsive to the grievances of the people with a view to addressing them,” he added.

Tam-George called it “improper and unacceptable” for the companies to keep their main offices in Lagos and Abuja, well away from their oil operations.

“The Niger delta is where the oil companies carry out their exploration activities, with the resultant effects of spills and damage to the ecosystem. They need to have their administrative base there,” he insisted.

The country depends on oil for 70 percent of government revenue and 90 percent of its foreign exchange earnings.

“I can say for sure that once the companies comply, the militancy and violence will end, because the people will see themselves as stakeholders in the business,” Tam-George said.

A recent lull in oil attacks is due to peace efforts of the federal and Rivers state governments, with more than 22,000 ex-militants surrendering their weapons, he added.

“But unlike the federal government, we don’t offer cash in exchange for weapons. We empower the youths through jobs, training and vocational skill, especially in ICT (information and communication technology, which is the oil of the future”.

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

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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Gas-Pipeline

The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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