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Economy

FG Approves New National Oil Policy

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yemi osinbajo

The Federal Executive Council presided over by Acting President Yemi Osinbajo, on Wednesday, approved the Nigerian Petroleum Policy, which is aimed at improving efficiency in the oil industry.

The Minister of State for Petroleum Resources, Ibe Kachikwu, disclosed this to State House correspondents at the end of the council’s meeting inside the Presidential Villa, Abuja.

The approval of the policy, he said, was coming about three weeks after the National Gas Policy was considered and approved.

The minister said if well executed, the document would fundamentally take the change process in the oil and gas industry that started in 2015 to its logical conclusion in the next couple of years.

Kachikwu stated, “Today’s policy focused on oil and the imperative needed to change the policy in the oil sector. It dealt with certain fundamentals; we are already pursuing some of the policy. We are working assiduously to exit the importation of fuel in 2019 and capture the cash call change we have done, which enables the sector to fund itself through incremental volumes.

“It captures the reorganisation in the NNPC for efficiency and enables accountability. It captures the issues in the Niger Delta and what we need to do as a government to focus on stability and consistency in the sector.

“It is a very comprehensive 100-page document that deals with all aspects in the industry. The last time this was done was in 2007 and it has been 10 years and you are aware that the dynamics of the oil industry has changed dramatically.”

The minister added, “Apart from the fact of fluidity in pricing and uncertainty in terms of the price regime in crude, we are pushing for a refining processing environment and move away from exporting as it were to refining petroleum products. That is one change you will see.

“Secondly, how we sell our crude is going to be looked at. There is a lot of geographical market we need to look at long-term contracting and sales as opposed to the systemic contracting we have been doing.”

According to him, as part of efforts to end fuel importation by 2019, he currently chairs a steering committee, while there is a technical committee team already set up and headed by the Chief Operating Officer of the Nigerian National Petroleum Corporation.

The minister explained that series of meetings had been held with individuals who were willing to invest in the refineries.

He added, “I need to state this clearly that this is not a sale, this is not a concession, this is a financing scheme and there are over 30 people who have indicated interest in that financing. They are going to go through the usual due process mechanism to see who qualifies for that financing.

“What we have resolved, however, which we have at least an understanding, is that each of the refineries will be repaired by the individual companies that built the refineries.”

The Minister of Labour and Employment, Chris Ngige, said the council received the National Employment Policy to replace the one that had been in use since 2002.

He said the policy was reviewed in 2013 with technical assistance from the International Labour Organisation and major stakeholders like employers and workers’ unions.

On the issue of the new minimum wage, the minister said the government had approved a secretariat domiciled at the National Council for Salaries and Wages Commission.

He said, “We have the Minister of Labour and Employment as the deputy chairman, the Minister of Finance, and Minister of Budget and National Planning as members. The only appointee, which is being awaited now, is the chairman; and we have concluded the process for the nomination. We are waiting for the requisite approval.

“The labour centres, that is the NLC and TUC, have yet to bring their nominations. That is on the workers’ side. On the employers’ side, you know we have like sub-units. We have the Nigeria Employers’ Consultative Assembly, Nigeria Employers’ Consultative Association, Manufacturers Association of Nigeria, Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture, and the Small and Medium-scale Industry Association.

“These groups will give us nominations. So, we are waiting. Once these nominations are in place, the President will now inaugurate the committee.”

The Minister of State for Budget and National Planning, Zainab Ahmed, said the ministry presented the National Social Protection Policy to the council.

According to her, the policy is a framework that seeks to provide social justice, equity and inclusive growth, using a transformative mechanism for mitigating poverty and unemployment in Nigeria.

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

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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