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Each N’Delta State to Have two Modular Refineries – Presidency

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yemi osinbajo
  • Each N’Delta State to Have two Modular Refineries

The Presidency on Thursday said each of the Niger Delta states would host two modular refineries under the Federal Government’s programme aimed at replacing illegal refineries in the region with modular ones.

It said the groundbreaking ceremony for the first set of such refineries would hold in the fourth quarter of the year.

The Senior Special Assistant to the Acting President on Media and Publicity, Mr. Laolu Akande, disclosed this in an update on the government’s new vision for the region which he made available to journalists in Abuja just as the Acting President, Yemi Osinbajo, was meeting members of the Edwin Clark-led Pan Niger Delta Forum at the Presidential Villa, Abuja.

Akande said, “The Federal Government has started the process of replacing illegal refineries in the region with modular ones, including options on how to involve the communities as shareholders in the proposed modular refineries.

“Groundbreaking ceremony for the first set of such refineries is expected in the fourth quarter of the year.

“In its operations, the Federal Government will supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby illegal refiners vandalise and steal the crude. Each Niger Delta State is expected to host two modular refineries each.”

The presidential spokesman said the government had also commenced the process for the opening of the Maritime University at Okerenkoko in Gbaramatu Kingdom, Delta State.

Already, he said a five-man inter-agency committee headed by the Minister of Education, Adamu Adamu, was in the final stages for the official opening of the university in the 2017/2018 academic session.

Akande added that the government had released additional N35bn to step up the Amnesty Programme in the Niger Delta region, which he claimed, was a specific and significant increment when compared with the 2016 budgetary allocation to the office.

He said the increase was already reflected in the 2017 budget with N70bn allocation.

“The Amnesty Office has since paid up all ex-militants backlog of stipends up to April 2017. School fees for ex-militants studying abroad have been paid up to 80 per cent this July while school fees in Nigeria have been paid up to 90 per cent this July.

“Under the President Muhammadu Buhari administration, the Presidential Amnesty Programme has deployed 1,294 beneficiaries in different programmes in different universities across the world. 1,230 have graduated; 196 are maritime engineers, 59 pilots, and 120 automobile engineers.

“It has established partnership with the Presidential Committee on Small Arms and Light Weapons, UNDP, EU and UNREC to curb the proliferation of small arms and light weapons in the hands of unauthorised persons and groups.

“To enhance a speedy development and restore peace in the Niger Delta region, Federal Government has revamped the Niger Delta Development Commission to drive the creation of development and infrastructure projects in the region,” Akande added.

He said an initial fund of $1bn had been set aside for the clean-up and environmental remediation of Ogoniland.

He explained that $200m would be disbursed yearly for the first five years and work on the project would be conducted in line with international best practices.

According to him, soil and water tests have already been done in preparation for the clean-up and 15 technical assistants hired to be part of the work from Ogoniland.

Akande added, “To drive infrastructure, the Federal Government has released funds for the continuation of various sections of the East-West Road. As of March 2017, the overall project completion is substantial ( Section I – 99.98%, Section II – I – 78.33%, Section II -II – 67.95%, Section III – 99.22%, Section IV – 97.7%) with Sections I and III completed and due for inauguration.

“The Federal Government plans to construct health centres in the states and communities of the region. On completion, they will be fully equipped to address some of the health needs of rural dwellers.

“This project will place the region as one of the most advanced places in Africa for high speed internet access and reliable communication systems.

“To further encourage infrastructure development, Federal Government, through the Petroleum Ministry is also exploring with the International Oil Companies operating in the Delta region on how to relocate their operational headquarters to their states of operations as different from administrative headquarters which often has only about 5% of the members of staff.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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