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Nigeria’s Airports Record 2.3% Increase in Domestic Passengers in 2yrs – NBS



  • Nigeria’s Airports Record 2.3% Increase in Domestic Passengers in 2yrs 

The National Bureau of Statistics (NBS) has disclosed that Nigeria’s airports recorded an increase of 2.3 per cent in domestic passengers in 2015 and 2016.

The NBS made this figure known in its Fourth Quarter 2016 and Full Year 2016 Air Transportation Data released in Abuja.

The report, however, stated that the first and second halves of the year differed substantially.

It stated that it differed substantially whereas year-on-year growth in domestic passenger, numbers of 9.7 per cent and 10.3 per cent were recorded in the first two quarters respectively.

“Declines of 1.3 per cent and 8.2 per cent were recorded in the third and fourth quarters respectively.

“The declines were due to their size, most of this decline was accounted for by Abuja, Lagos and Port Harcourt, and in both quarters, Abuja accounted for the largest fall.

“Murtala Muhammed Airport (MMA) in Lagos remained the busiest domestic airport in the third and final quarters of 2016.

“This airport accounted for 891,770 passengers in the third quarter and 909,851 passengers in the final quarter, which represented 33.3 per cent and 34.5 per cent respectively.’’

According to the report, the share of domestic passengers accounted for by MMA remained broadly stable throughout 2016.

“It remained stable in the year with the highest share recorded in the first quarter of 34.6 per cent, and the lowest recorded in the third quarter.

“As with the overall number of domestic passengers, the number to travel though MMA declined relative to the corresponding values in 2015.

“In the third quarter, MMA airport recorded a year-on-year decline of 7.3 per cent, compared to an overall decline in domestic passenger numbers of 1.3 per cent (when comparing same set of airports.

“In the fourth, this fell slightly to a decline of 7.5 per cent, although this was a smaller contraction than in the overall fall of 8.2per cent.’’

Similarly, it stated that the share of passengers accounted for by Abuja Airport, the second busiest airport in 2016, remained between 30 per cent and 31 per cent in each quarter of 2016.

According to the report, the third and fourth quarters, there were 822,702 and 810,410 domestic passengers to travel through Abuja respectively.

“In each quarter this was equivalent to 30.7 per cent of the total number, which is higher than the shares in the first and second quarter of 30.4 per cent and 30.2 per cent.

“Abuja was the airport to record the largest year on year reduction in domestic passengers in absolute terms in each of the third and fourth quarters.’’

In the third quarter of 2016, the report stated noted that there were 81,270 less domestic passengers to travel through than in the same quarter of 2015, a reduction of 9.0 per cent.

It stated that in the fourth quarter, the year on year drop fell to 110,005, equivalent to a 12.0 per cent fall.

“The third busiest domestic airport in 2016 was Port Harcourt, although the number of passengers fell throughout the year.

Meanwhile, under the domestic aircraft movement, the report stated the shares of domestic flights accounted for by each airport were similar to the shares of passengers accounted for by each airport, as would be expected.

However, it stated that aircraft departing from and flying to larger airports carried more people. Therefore, the share of aircraft accounted for airports such as Lagos and Abuja was smaller than their share of passengers.

“During 2016, Lagos airport accounted for 34.2 per cent of domestic passengers, but only 27.5 per cent of domestic aircraft.

“This is due to the average number of passengers on aircraft to and from Lagos being 61.1 per cent, more than 10 passengers higher than average.

“Similarly, Abuja accounted for 30.5 per cent of passengers, accounting for 24.4 per cent of aircraft.’’

In the third quarter of 2016, the report stated that Lagos recorded a fall in the number of aircraft.

“It recorded a fall in aircraft relative to the second quarter, of 13.8 per cent, to reach 14,097, before rebounding in the final quarter, growing by 9.9 per cent to reach 15,491.

Consequently, the report stated that its share fell to 26.5 per cent in the third quarter from 27.8 per cent in the second, before rebounding to 28.4 per cent in the final quarter.

“Abuja also recorded a decline in domestic aircraft movement in the third quarter; 12,593 aircraft moved through Abuja’s domestic airport compared to 13,682 in the second quarter, a drop of 9.2 per cent.

“However, growth in the amount of domestic aircraft movement in the final quarter was smaller than for Lagos, at 1.4 per cent, resulting in 12,764 domestic aircraft to leave and arrive in Abuja in the final quarter,’’ the report stated.

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

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Crude Oil

Oil and Gas Companies in Nigeria



Oil - Investors King

Nigeria is an oil reach nation with several oil and gas companies operating in Africa’s largest economy.  However, only ten oil and gas companies are listed on the Nigerian Exchange Limited (NGX).

Before we discuss in detail each of the listed oil and gas companies in Nigeria. A short background on Africa’s largest economy will help throw more light on the significance of the oil and gas companies or the entire oil sector to the Nigerian economy.

Nigeria is a petrol-dollar economy, which means Africa’s most populous nation, sells crude oil and use its proceed to service the economy. In fact, the Nigerian Naira is backed by crude oil like Canadian Dollar and other commodity-dependent economies.

But because the Central Bank of Nigeria (CBN) pegged the Naira against its global counterparts, the local currency does not reflect succinctly the fluctuation in global oil prices like other crude oil-dependent currencies.

Since global oil prices rebounded with the gradual reopening of economies, the oil and gas companies in Nigeria have also rebounded from the 2020 record low of $15 per barrel. The oil and gas sector has gained 62.76 percent from the year to date, according to the NGX Oil and Gas Index.

The index gauge price movements in 10 listed oil and gas companies in Nigeria.  However, there are several oil and gas companies in Nigeria not listed on the Nigerian Exchange Limited.

Oil and Gas Companies Listed on the Nigerian Exchange Limited (NGX)

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Crude Oil

Oil Prices Extend Gains on Friday After Saudis Dismiss Supply Concerns




Oil prices extended gains on Friday after Prince Abdulaziz bin Salman, Saudi Energy Minister dismissed calls for more crude oil supply on Thursday.

Brent crude oil, against which Nigerian oil is priced, rose to $84.92 per barrel at around 8:31 am Nigerian time. The U.S West Texas Intermediate crude oil also responded positively to the comment, rising to $81.56 per barrel on Friday.

Prince Abdulaziz had stated on Thursday that OPEC plus efforts were enough to protect the oil market from wild price volatility seen in coal and natural gas markets.

“What we see in the oil market today is an incremental (price) increase of 29%, vis-à-vis 500% increases in (natural) gas prices, 300% increases in coal prices, 200% increases in NGLs (natural gas liquids) ….”

He further stated that the Organization of the Petroleum Exporting Countries and allies led by Russia, have done a “remarkable” job acting as “so-called regulator of the oil market,” he said.

“Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC+ has done and what it has achieved.”

Prince Abdulaziz explained that OPEC plus will add 400,000 barrels per day in November and do the same in December and subsequent months. The increase will be gradual he said.

“We want to make sure that we reduce those excess capacities that we have developed as a result of COVID,” he said, adding that OPEC+ wanted to do it “in a gradual, phased-in approach”.

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Lack of Investment in Clean Energy Compromising Fight Against Climate Change and Poverty



Renewable Energy - Investors King

New research highlights a chronic lack of finance that will leave billions of people in Sub-Saharan Africa and Asia without electricity or clean cooking by 2030; Urgent action to accelerate investment in clean energy for developing countries is needed from global leaders assembling at COP26 to ensure a just energy transition.

This year’s Energizing Finance research series – developed by Sustainable Energy for All (SEforALL) in partnership with Climate Policy Initiative (CPI) and Dalberg Advisors – shows the world is falling perilously short of the investment required to achieve energy access for all by 2030 for the seventh consecutive year.

In fact, tracked finance for electricity in the 20 countries that make up 80 percent of the world’s population without electricity – the high-impact countries – declined by 27 percent in 2019, the year before the onset of the Covid-19 pandemic. The economic strain caused by Covid-19 is expected to have caused even further reductions in energy access investment in 2020 and 2021.

Energizing Finance: Understanding the Landscape 2021, one of two reports released under the series, finds committed finance for residential electricity access fell to USD 12.9 billion in 2019 (from USD 16.1 billion in 2018) in the 20 countries. This is less than one-third of the USD 41 billion estimated annual investment needed globally to attain universal electricity access from 2019 to 2030.

Meanwhile, there is an abysmal amount of finance for clean cooking. Despite polluting cooking fuels causing millions of premature deaths each year and being the second largest contributor to climate change after carbon dioxide, only USD 133.5 million in finance for clean cooking solutions was tracked in 2019. This is nowhere near the estimated USD 4.5 billion in annual investment required to achieve universal access to clean cooking (accounting only for clean cookstove costs).

These findings have been released just ahead of COP26 in Glasgow, where global leaders will focus on how to spark meaningful progress on fighting climate change. As part of this, they will need to consider how to reduce global emissions from the energy sector while also increasing energy access in developing countries to support their economic development.

“We are at a critical moment in the energy-climate conversation,” said Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy. “What is clear is that the path to net zero can only happen with a just and equitable energy transition that provides access to clean and affordable energy to the 759 million people who have no electricity access and 2.6 billion people who lack access to clean cooking solutions. This requires resources to mitigate climate change and create new opportunities to drive economic development and enable people everywhere to thrive. Energizing Finance provides an evidence base of current energy finance commitments and the finance countries require to meet SDG7 energy targets.”

In 2018, 50 percent of total electricity finance flowed to grid-connected fossil fuels in the high-impact countries compared to 25 percent in 2019. While this is a positive trend for the climate, tracked investment in off-grid and mini-grid technology also declined and represented only 0.9 percent of finance tracked to electricity.

Dr. Barbara Buchner, Global Managing Director at CPI, who partnered with SEforALL on Energizing Finance: Understanding the Landscape 2021, said: “Achieving both the Paris Agreement and universal energy access requires far greater investment in grid-connected renewables and off-grid and mini-grid solutions than what has been tracked in Energizing Finance. These solutions are essential to helping high-impact countries develop their economies without a reliance on fossil fuels.”

To better illuminate the challenges high-impact countries face, the second publication in the series, Energizing Finance: Taking the Pulse 2021, offers a detailed look at the estimated volume and type of finance needed by enterprises and customers to achieve universal energy access for both electricity and clean cooking by 2030 in Mozambique, Ghana and Vietnam. Importantly, it illustrates the energy affordability challenges people face in these countries and the need for financial support for consumers, such as subsidies.

The report finds that providing access to clean fuels and technologies, i.e. modern energy cooking solutions, in Ghana, Mozambique and Vietnam will cost a total of USD 37-48 billion by 2030; 70 percent of which will be for fuels (e.g., LPG, ethanol and electricity). A more achievable scenario would be for all three countries to deliver universal access to improved cookstoves at a total cost of USD 1.05 billion by 2030.

“Ghana, Mozambique and Vietnam each have unique challenges to achieving universal access to electricity and clean cooking,” said Aly-Khan Jamal, Partner at Dalberg Advisors, who partnered with SEforALL on Energizing Finance: Taking the Pulse 2021. “This research digs deep into these national contexts to identify solutions that can make Sustainable Development Goal 7 a reality.”

Providing results-based financing for energy project developers and exploring policies that facilitate demand-side subsidy support and reduce taxes on solar home systems are among several policy recommendations presented for Ghana, Mozambique and Vietnam.

Energizing Finance also advocates for increased innovation in financial instruments to reach the scale of finance needed for universal clean cooking access; for integration of electricity access, cooking access and climate change strategies; and for national governments, bilateral donors, philanthropies, and DFIs to all increase their efforts to mobilize commercial capital to Sub-Saharan African countries.

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