Connect with us

Economy

Few Interest Groups Lock Down Oil Sector – Kachikwu

Published

on

ibe-kachikwu
  • Few Interest Groups Lock Down Oil Sector

Nigeria’s oil and gas sector has been under the control of a few interest groups who have locked it down for so long, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said.

He, however, stated that the Federal Government, through his ministry, was working hard to unlock the sector by showing more interested persons the various layer of opportunities in the industry.

Kachikwu stated this on Thursday at the headquarters of the Federal Ministry of Petroleum Resources in Abuja, while receiving the ‘New Nigerian Oil and Gas Sector Governance Policy’ report that was put together by professional Nigerians in the Diaspora from the Aberdeen Contingent.

The minister said one of the ways of unlocking the sector was through the 7BigWins policy that was released recently by the ministry.

He stated, “The whole essence of this 7BigWins is to point people to opportunity layers lying in the system and also take a collaborative responsibility to help people who really want to play in the field. The oil sector has been too locked down by a few interest groups for so long, positively or negatively. But the time has come to open it up to Nigerians.

“We’ve devoted ourselves to a level of openness because the resource isn’t ours; we are just gatekeepers in the management of this resource, and so, it is our responsibility to help every Nigerian who has an idea, no matter how mundane, to see how that idea can come to fruition.”

Kachikwu added, “So, as many companies that we can bring into this sector and any other sector for that matter, as many people as we can bring in with respect to creating employment, we will do that.

“During the Offshore Technology Conference, I announced the concept of Project 100, which is trying to identify 100 Nigerians with skills, capacity and the energy required to make in-roads into certain sectors. And I’ve told the ministry to identify their handicaps and how we can help them to get to the finish line. That’s something that I’m going to be working on very seriously.”

The minister observed that Nigeria had limitless human and material resources of international repute, adding, “When you have those resources, you really will not understand why this country should not do far better than what it has done.”

A member of the Aberdeen Contingent and Chairman, Nigerians in Diaspora Organisation, Dr. Paul Eke, told the minister that over 70 Nigerian oil and gas professionals convened a conference before coming out with the report that was presented to the ministry.

He stated that if recommendations contained in the report were implemented, there would be significant improvement in the oil and gas sector in the short term, adding that the government should be willing to collaborate with professionals within and outside Nigeria in order to move the sector forward.

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

Once Again The National Grid Collapsed

Published

on

power project

Nigeria’s electricity transmission system, also known as the National grid, has suffered another system collapse, plunging Lagos, the country’s commercial capital, Kano and other major cities into a blackout.

The collapse, which occurred about 11.00 am on Tuesday, was confirmed by two of the country’s electricity distribution companies in separate messages to their customers.

“We regret to inform you that the power outage being experienced across our franchise – Kaduna, Sokoto, Kebbi and Zamfara states – is as a result of the collapse of the national grid,” Kaduna Electric said on Twitter.

Eko Electricity Distribution Company Plc, in a text message to its customers, said: “Dear customer, there is a partial system collapse on the national grid. Our TCN partners are working to restore supply immediately. Please bear with us.”

The grid, which is being managed by the government-owned Transmission Company of Nigeria, has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences.

Spinning reserve is the generation capacity that is online but unloaded and that can respond within 10 minutes to compensate for generation or transmission outages.

Continue Reading

Economy

FG Consider Diversification To Generate Revenue

Published

on

Naira

As revenue from oil nosedives following incessant global price fluctuations, the Federal Government is now channeling efforts to the development of minerals in the mines and steel industry to shore up foreign exchange earnings.

Officials of the Federal Ministry of Mines and Steel Development said on Wednesday that while there had been concerted efforts to develop various minerals in the sector, much emphasis had been placed recently on the development of bitumen, barite and gold.

They told our correspondent in Abuja that the government through the mines and steel ministry was striving to diversify the Nigerian economy away from oil as the major foreign exchange earner for Nigeria.

They also confirmed that large quantities of gold had been discovered in various locations in Zamfara and Osun states.

Asked if the government had initiated programmes to explore the minerals and boost revenues now that the country’s income had plunged, the Special Assistant on Media to the Minister of Mines and Steel Development, Ayodeji Adeyemi, replied in the affirmative.

He said, “Indeed, the ministry has the mandate to generate revenue and diversify the economy through the mines sector.

“And bitumen is one of the key resources which the nation is abundantly endowed with, that has been identified for strategic development.”

To buttress his position, Adeyemi shared some recent presentations of the Minister of Mines and Steel Development, Olamilekan Adegbite, where the minister said his ministry was gathering data on some bitumen fields across the country to attract investors.

“A lot of people are interested in bitumen, which is coming from both local and foreign investors. However, we are still acquiring data in some of the fields,” the minister stated.

On barite, the minister said the mines and steel ministry was working on raising the quality of barite produced in Nigeria to an internationally acceptable standard, as certified by the American Petroleum Institute.

Adegbite said his ministry had contracted a consultant to help raise the standard in the local production of barite to ensure that oil industry players make use of barite produced in Nigeria as against importing the commodity from other countries.

He said, “Barite is a critical weighting material in drilling fluids used in the oil industry. We have a lot of barites but the issue is that it is not produced to API standards. However, we are putting a system in place which would be ready to launch in about July.

“We have got the millers who can produce barite to API standard. Hence we will be able to compete with foreigners and it would save Nigeria a lot of foreign exchange in import substitution.”

On the development of gold, officials at the ministry further stated that the commodity had been aggregated for the production of bullion bars and that this was the first time that such aggregation was happening in Nigeria.

They stated that the gold was sourced from artisanal miners, while the final refining to bullion was done in Turkey.

The sources stated that the ministry had registered two refineries that would now refine to LBMA standard when they come on stream. LBMA is the de facto standard, trusted around the world.

Continue Reading

Economy

Nigeria Sovereign Investment Authority Generates N160.06 Billion in 2020

Published

on

Naira Exchange Rates - Investors King

The Nigeria Sovereign Investment Authority (NSIA) generated revenue of N160.06 billion in 2020, according to the latest audited financial reports announced by the Managing Director of NSIA Mr. Uche Orji.

The NSIA income came from devaluation gain of N51 billion, and core income of N109 billion compared to N33.07 billion in 2019.

But Orji lamented: “Covid-19 adversely affected logistics around infrastructure projects, especially the toll road projects and the presidential fertiliser initiative.

Despite the pandemic, the Authority achieved 33 percent growth in Net Assets to N772.75 billion compared to the previous year’s performance of N579.54 billion.

Orji said the NSIA “received additional contribution of $250 million; and provided first stabilisation support to the Federal Government of $150 million withdrawn from Stabilisation Fund last year.”

The same year, the NSIA received $311 million from funds recovered from the late General Abacha from the United States Department of Justice and Island of Jersey for deployment towards the Presidential Infrastructure Development Fund (PIDF) projects of Abuja-Kaduna-Kano Highway, Lagos Ibadan Expressway and Second Niger Bridge.

In response to COVID-19, Orji said: “NSIA partnered the global Citizen, a not-for profit group, to form the Nigeria Solidarity Support Fund. Separately NSIA acquired and distributed oxygen concentrators to the 21-teaching hospital as part of corporate social responsibility; in addition to staffing support to the Presidential taskforce on COVID-19.”

In 2020, the NSIA “invested additional capital into NG Clearing, the first derivative clearing house in Nigeria to maintain NSIA’s shareholding at 16.5 per cent following the company’s rights issue of 2020″ Orji said.

Continue Reading

Trending