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Paris Club Refund: Strike, Protests Loom in States Over Unpaid Salary Arrears

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  • Paris Club Refund: Strike, Protests Loom in States Over Unpaid Salary Arrears

There are indications that workers in some states in the country will soon embark on demonstrations or strike action over unpaid salary arrears in their respective states.

A trustee of the Nigeria Union of Local Government Employees, Mr. Fatai Ibrahim, on Friday said NULGE would engage in demonstrations, work to rule and even strike action in states where the governors failed to remit to the local governments their share of the expected last tranche of the Paris Club refund.

Speaking in Ilorin, the Kwara State capital, during a media briefing by the state branch of NULGE, Ibrahim added that the union would engage governors of the states that fail to remit the funds to the local government, adding that where the engagements, negotiations and dialogue fail, the union would embark on strike action to get the governors accede to the workers’ demands.

Also, the state Chairman of NULGE, Alhaji Salihu Yusuf, has urged Governor Abdulfatah Ahmed to ensure that the share of the local governments was paid to them when the state gets the final tranche of the Paris Club refund. He also stressed that the payment of some of the arrears being owed them would greatly alleviate their plight.

He said, “The Kwara State Governor has been saying that local governments will not benefit from the expected Paris Club refund and that we should not be expecting that arrears of salaries being owed workers in various local governments across the state would be paid from the Paris Club refunds.

“Other states are declaring certain percentages in favour of their local governments, why should Kwara State be an exception?”

He also urged the state House of Assembly to vote in favour of local government autonomy to create genuine development at the grass roots, adding that the governor should not wait until all LG workers were dead due to poverty and hardship before he came to their aid.

He also said the payment of junior secondary school teachers’ salaries from the local government allocation through the Joint Account Allocation Committee was responsible for the about 10 months’ arrears of salaries in local governments, adding that the local governments should be freed from that burden.

But the governor, while responding, said the state had accessed 50 per cent of the refund, adding that arrangement was on to end salary crisis in the 16 local government areas of the state.

He said he had met with the local government chairmen with the aim of identifying their problems and finding possible solutions to them.

He said, “What we are doing is to find a permanent solution to the problem. Giving them funds to clear the backlog of salaries is not the solution, but to find the means of improving their revenue base because of the continued drop in federal allocation.”

Meanwhile, the Nigeria Union of Teachers in Kwara State has given the state government an ultimatum to address some lingering labour issues in the state before December 31, 2017, or else the union would not guarantee the resumption of teachers when schools resume on January 8, 2018.

The teachers, in a communiqué after the meeting of the state executive council, on Friday, stated that the labour issues bordered mainly on the payment of salary arrears, the position of the state government not to use the Paris Club refund to offset the salary arrears of its members as earlier pledged, allegedly, at different forums and refusal to implement promotion arrears with its attendant financial backing from 2015 till date.

The communiqué, signed by the state NUT Chairman, Alhaji Musa Abubakar, and the state NUT Secretary, Mr. Ola Idris, partly read, “In view of these, the House resolved that these issues must immediately be addressed before the end of 2017, otherwise, the union cannot guarantee resumption of our members on January 8, 2018.

But the state government has urged the teachers to embrace dialogue, adding that strike was never a good way to address industrial issues.

The Commissioner for Information, Mr. Babatunde Ajeigbe, in an interview with journalists, stated that the governor, Alhaji Abdulfatah Ahmed, was deeply concerned and committed to the welfare of the residents of the state, including teachers, saying the outstanding payment due to the drop in federal allocation.

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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Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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Dangote Refinery

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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