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NNPC Plans to Generate, Transmit Electricity

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  • NNPC Plans to Generate, Transmit Electricity

The Nigerian National Petroleum Corporation on Wednesday said its ongoing reform was geared towards transforming it from an oil and gas company into an integrated energy outfit with interest in power generation and transmission.

It also stated that the country’s power transmission capacity was inadequate, adding that this was the major reason for the poor supply of electricity nationwide.

The Group Managing Director, NNPC, Dr. Maikanti Baru, stated this at the 53rd International Conference and Exhibition of the Nigerian Mining and Geosciences Society in Abuja.

He said the corporation had identified opportunities in the power sector and was ready to take advantage of them to transform from being a gas supplier to the power sector into a major player in the industry.

In a statement by the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, the NNPC boss stated that the corporation was already working on a project to generate four megawatts of electricity, while also exploring the possibility of investing in the transmission segment of the power sector.

Baru explained that the corporation’s decision to diversify into the power sector was hinged on the need to bridge the huge energy gap in the Nigerian market.

He said that contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was insufficient transmission capacity.

The GMD said there was enough gas to generate 8,000MW of electricity but the transmission grid could not support such quantum of power without complications.

Baru also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region.

He argued that getting the youth to form consortia to set up 1,000 barrels per day modular refineries would get them off criminality and create jobs.

In the upstream sub-sector, he said his goal was to accelerate frontier exploration and grow the crude oil reserve to 40 billion barrels from the current 37 billion.

In another development, the corporation has raised the alarm about the existence of some dubious syndicates who specialise in extorting money from unsuspecting people under the pretext of a purported recruitment exercise and promise of phantom job placements in the oil firm.

According to Ughamadu, the NNPC currently does not conduct any recruitment exercise and the corporation will advertise vacant positions whenever it has need to embark on a recruitment.

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

COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday

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Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.

Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.

The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.

OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.

This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.

Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.

The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.

President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.

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Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

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The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

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World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

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The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

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