- OPEC Agrees to 9 Months Oil Cut Extension
The Organization of the Petroleum Exporting Countries (OPEC) on Thursday agreed to extend oil production cuts for 9 months following the surge in the U.S. production level.
The accord is expected to be shared by non-OPEC producers later on Thursday, a move that will see the 1.8 million barrel per day supply cut last until the first quarter of 2018.
Speaking before the meeting in Vienna, Nigeria’s Minister for State Oil, Emmanuel Ibe Kachikwu said: “If we stick to rules, we should look to a $50 floor.” However, he said oil price of $60 seems optimistic.
On production volume, the minister said Nigeria’s output level is still 1.5 million barrel per day on the average and below the 1.8 million barrel category as there are still a lot of maintenance to be done on disrupted pipelines in the Southern region of the country.
Responding to question on if Nigeria would join production cut, Saudi Arabia’s Energy Minister Khalid Al Falih said the Opec has taken into consideration Nigeria and Libya security situation and will continue to support the nations.
“We have said we will do whatever is necessary,” Mr. Falih said, adding that existing production curbs would, given time, prove “more than sufficient”.
This put to rest Iraq’s suggestion that Nigeria should also cut production if the organization is looking to extend production cut.
Brent, the global oil marker, was down 58 cents at $53.37 a barrel, partly on disappointment the cuts were extended for 9 months rather than a full year.
However, Emmanuel Kachikwu said, “There may be an option to roll over for 3 months.”
“This would further boost business confidence in the Nigerian market as it guarantees the sustainability of the ongoing CBN’s forex intervention, ” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd. Therefore, I would be expecting a surge in the foreign direct investment in the second quarter and an improvement in the Naira outlook going forward.”
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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