- NNPC, JV Partners to Grow Domestic Gas Supply to 5bcf/d in Three Years
The Nigerian National Petroleum Corporation (NNPC) has said that it would collaborate with its joint venture partners to increase the amount of gas available to Nigeria’s domestic economy in 2020 to about five billion standard cubic feet per day (5bscf/d).
The corporation said in a recent statement from its Group General Manager Public Affairs, Mr. Ndu Ughamadu, in Abuja that the development would help the federal government’s plan to have more gas sent to Nigeria’s industries to stimulate economic growth in the country.
It noted that NNPC and its partners have evolved a scheme to achieve this, adding supply will grow by 285per cent from 1.3bscf/d to 5bscf/d by 2020.
According to the statement, a meeting where this was agreed on was held in Abuja, and seven critical gas development projects were identified.
The stakeholders, NNPC said, included companies that could fast-track execution of the plan to meet the domestic gas supply growth projection.
It explained that these companies were involved in Assa North-Ohaji South Field Development (ANOH); Oil Mining Lease (OML) 24 and OML 18 joint development; as well as Shell Petroleum Development Company Joint Venture/Nigeria Agip Oil Company Joint Venture unitised gas fields.
Others are the Nigerian Petroleum Development Company’s (NPDC) OML 26, 30, 42 and Chevron Nigeria Limited’s OML 49 Makaraba cluster development; SPDC JV gas supply to Brass Fertilizer Company; OML 13 cluster development and cluster development of Okpokunou/Tuomo West (OML 35/62).
The statement quoted NNPC’s Group Managing Director, Dr. Maikanti Baru, to have said that the federal government has directed the corporation to aggressively pursue gas development to jump-start the nation’s economic growth.
Baru outlined the strategic focus for achieving the government’s mandate to include growing capacity to supply enough gas to generate 15 gigawatts (15,000 megawatts) of electricity to the power sector by 2020; stimulating gas-based industrialisation by positioning Nigeria as the African regional hub for gas-based industries such as fertiliser; petrochemicals; methanol and developing gas for export by selectively expanding export footprint in high value and strategic foreign markets.
He said appropriate funding for the seven critical gas projects would be a priority and a key success factor, adding that alternative funding through third party financing option would be adopted to facilitate their execution.
Baru equally urged the partners to work together to ensure that the critical gas projects were executed expeditiously for the benefit of the country, adding that the NNPC would be available to work with all stakeholders to ensure timely delivery of the projects.
The statement said the Managing Director of Shell Petroleum Development Company (SPDC), Mr. Osagie Okunbor, in his response, applauded Baru for his focus on optimal production and delivery of gas to power, industry and for export.
He reportedly assured that with proper alignment of the key parties, the projects would be delivered as scheduled.
The meeting, the NNPC added, was attended by SPDC; Nigerian Agip Oil Company (NAOC); NPDC; Chevron Nigeria Limited (CNL); Seplat Petroleum Development Company PLc; Newcross Exploration and Production Limited and Eroton Exploration and Production.
CBN Predicts 2 Percent Growth for Nigeria in 2021
Despite the economic recession and numerous uncertainties encompassing Nigeria in recent months, the Central Bank of Nigeria (CBN) has said the nation will grow by 2 percent in 2021.
Speaking at the 2020 bankers’ dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN), Godwin Emefiele, the Governor, CBN, said implemented government intervention programmes will aid the nation’s recovery by next year.
Emefiele further stated that the intervention efforts represent around 3.5 percent of Nigeria’s current Gross Domestic Product (GDP).
He said, “Our actions in 2021 would be guided by the considerations that emerged from the Monetary Policy Committee meeting of November 23 & 24, 2020, which sought to address the major headwinds exerting downward pressure on output growth and upward pressure on domestic prices.”
On fast declining foreign reserves, the Governor said the institution has adopted a demand management framework designed to boost the production of items that can be produced locally and aid conservation of external reserves.
“Due to the unprecedented nature of the shock, we continued to favour a gradual liberalisation of the foreign exchange market in order to smoothen exchange rate volatility and mitigate the impact which rapid changes in the exchange rate could have on key macro-economic variables,” Emefiele stated.
The CBN projection came few weeks after the National Bureau of Statistics (NBS)’s report showed Africa’s largest economy contracted by 3.62 percent in the third quarter following a 6.10 percent decline posted in the second quarter. Nigeria officially slid into the worse economic recession in almost 30 years and the second economic recession under the current administration.
While, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has projected that Nigeria would rebound from the recession in this final quarter or the very first quarter of 2021, falling revenue generation, rising capital flight amid weak demand due to the negative impact of coronavirus on earnings, household incomes and lack of jobs remain a concern.
COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday
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.
Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021
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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