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FG May Stepdown N120bn Bodo-Bonny Road Project Over Compensation Troubles

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  • FG May Stepdown N120bn Bodo-Bonny Road Project Over Compensation Troubles

The federal government thursday said it might be forced to step down the 34-kilometre long Bodo-Bonny road project over lack of cooperation from its communities in the Niger Delta.

Speaking at a meeting with prominent traditional rulers of the region, Julius Berger, Nigeria Liquefied Natural Gas (NLNG), as well as the Council of Elders from Ataba, and Gokana, among others, at the ministry, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, issued such warning to the communities and asked them to get their houses in order within a week or risk having the project suspended.

The road project which has been hampered from going on for a long time on account of funding constraints, is expected to help address the twin challenges of poverty and unemployment, as well as improve the lives of people of the region, especially those from Bonny, Ogoni, Okrika, Eleme, Andoni, and other communities in the Niger Delta when completed.

The NLNG opted to fund its construction by picking up about 50 per cent of its construction cost. However, compensation rows have reportedly cropped up to stop it from going ahead as planned.

But Fashola, stated in the meeting which had leaders of the communities such as HRM Festus Bagia who was represented by the Chairman of Gokana Council of Chief, Mene Michael Tekure, Chairman Jumbo Group of Houses, Prof. Jasper Jumbo and Clan Head of Ataba, Sir. Benson Egwemre, among others that the communities would have to unit to see the project sail through.

He said otherwise, he might be forced to petition President Muhammadu Buhari, over the issue and withdraw the government’s N60 billion share of the contracting sum for other federal projects in another part of the country.

The minister explained that the Bonny-Bodo road project enjoyed a good funding, with the NLNG providing N60 billion, and the government another N60 billion. He noted that the contractor had also received mobilisation fee for the project, yet it is being stalled by the communities’ lack of cooperation.

Fashola who was worried over unwavering position of the elders that the project will not be implemented except they were carried along and an additional route constructed in Ataba, stated: “We might tell NLNG to take its money back.”

He added: “You must work this peace. Today is Thursday, since you said you know the permanent secretary, I will leave you with him. All I want is a peace accord and an invitation to Julius Berger, not later than Wednesday 28 otherwise I will write a report to Mr. President that it doesn’t seem that this project is ready to go but we can move the money to another project.

“Whether it is Ataba, Ogoni or Gokana own this project. The people you call militants are not spirit. They take their cue from how you react. You are leaders there. If you go back home today and say it is over, the militants too will calm down. They don’t do anything without alerting the leaders.

“For us, we can’t keep the money down. The contractor has received his money but now he can’t work. There are projects where contractors are waiting for money, they don’t have it. That is a contradiction that will not last long,” he explained.

The minister continued: “So, I will leave you. You know where we stand. We have an idea of where you stand. For me, it is a compromise that owes the project. NLNG will not be there forever. It took time to even beg them to release this money. So, if you don’t take ownership of the project and put it to use, we might as well tell them, take your money back the project is not ready.

“When there is peace, we will come back but we need to have a position before the end of this week. There must be an MoU of compromise, assuring us that there will be peace in that place, agreed to by you, give it to us and invite the contractor to come back.

“Suggest to the contractor anything you want him to do. You can’t take-over how they organise their business. They are not bringing imported labour into your land. If your people want to supply diesel and sand, make the case for them, let them chose but don’t impose on them. They must be able to screen those they will admit to work with them and those who don’t meet that standard must seat,” he added.

Notwithstanding, the community leaders in their response agreed to meet with the contractor but requested for an extra week away from the one week given by Fashola to re-converge.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Middle East Conflict, US Election Push Oil Prices Further

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The ongoing conflict in the Middle East and the election in the United States bolstered crude oil prices on Friday.

Brent crude settled up $1.67, or 2.25 percent to trade at $76.05 a barrel while the US West Texas Intermediate (WTI) crude settled up $1.59, or 2.27 percent to $71.78.

In the week ended Friday, Brent crude oil gained 4 percent while WTI appreciated by 3.7 percent higher.

Market analysts note that the tensions on the geopolitical front especially in the Middle East with Israel against Hamas and Hezbollah, backed by Iran, have supported largely decided prices in the last month.

According to the US Secretary of State, Mr Antony Blinken said there was a sense of urgency in getting to a diplomatic resolution to end the conflict in Lebanon between Israel and Hezbollah, while calling for the protection of civilians.

Officials from the US and Israel are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days.

Investors continue to await Israel’s response to an Iranian missile attack on October 1 especially after it said it would not strike the country’s nuclear or oil targets and instead opt for military targets. If it had attacked the oil targets, it would have triggered some increase in oil prices.

Now, investors globally are piling into the Dollar and betting on rising volatility ahead of these next crucial two weeks leading up to the November 5 election in the US between Donald Trump and Kamala Harris.

Also, the market is watching an election in Japan and looking forward to plans by three major central banks on interest rates and the UK government presenting its new budget.

Traders are also seeking more clarity on China’s stimulus policies, though analysts do not expect such measures to provide a major boost to oil demand.

Goldman Sachs on Thursday left its oil price forecasts unchanged at between $70 and $85 a barrel for Brent in 2025, expecting the impact from any Chinese stimulus to be modest relative to bigger drivers such as Middle East oil supply.

Bank of America is forecasting Brent crude to average $75 a barrel in 2025 without any rolling back of production cuts by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ into next year, it said in a note on Friday.

 

 

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Crude Oil

Middle East Ceasefire Talks Weaken Oil Prices

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Oil prices eased on Thursday on reports the US and Israel will try to restart talks on a possible ceasefire in Gaza.

Brent oil settled 58 cents, or 0.8 percent lower at $74.38 a barrel while the US West Texas Intermediate (WTI) crude slipped 58 cents, or 0.8 percent to end at $70.19.

The oil market has been gripped by concerns about the ongoing conflict in the Middle East and the possibility that it could result in oil supply disruptions.

Negotiators will gather in Doha, the capital of Qatar, in the coming days to try to restart talks toward a deal for a ceasefire and the release of hostages in Gaza.

Iran fired close to 200 missiles at Israel on October 1 and this led the international crude benchmark, Brent crude to surge about 8 percent during the week ended October 4 on worries Israel would attack Iran’s oil infrastructure.

It fell about 8 percent in the week ended October 18 on reports Israel would not hit energy infrastructure, easing fears of supply disruptions.

Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), produces about 4 million barrels per day and backs several groups fighting Israel, including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen. An attack by Israel will send prices up.

Analysts believe that other Middle Eastern producers Saudi Arabia and the United Arab Emirates (UAE), have enough spare capacity to offset potential losses of supply from Iran.

However, in case the conflict escalates to Iranian proxies targeting oil infrastructure in Iran’s Middle Eastern neighbours, or if Iran moves to block or restrict oil cargo traffic in the Strait of Hormuz, oil prices could spike to triple digits and record highs.

In a related development, Saudi Arabia’s oil export revenues fell to the lowest level in more than three years in August caused by underwhelming oil demand and continued supply constraints from the world’s top crude exporter.

Traders also weighed uncertainty ahead of the US presidential election on November 5 between former president Donald Trump and current Vice President Kamala Harris.

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Energy

Tinubu’s Government to Convert Fuel Stations to CNG Outlets for Cheaper, Cleaner Energy

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The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has revealed President Bola Tinubu’s plans to convert fuel stations into Compressed Natural Gas (CNG) outlets to provide Nigerians with an affordable alternative to petrol.

In a statement on Wednesday, while addressing State House correspondents after the Federal Executive Council (FEC) meeting, Ekpo confirmed that the President intends to expand the use of CNG across the country.

The minister emphasized that CNG is here to stay and urged Nigerians to embrace the initiative, adding that it is safe, cheaper, and environmentally friendly.

He said, “We are well aware that the President set up a Presidential Committee on the CNG to drive the CNG project. It is left for us to inform the general public that CNG has come to stay, and we have to follow that route because CNG is safe, cheaper, and protects the environment.

“It is important to note that when you are using CNG, you save a lot of money, a litre of fuel can go for N1000, but you get CNG at N200 per litre, which saves you N800.

“With the passion of Mr President, the push that he has given to us, we’ll try to drive the CNG programme to reach the nooks and crannies of this country.

“We have to take advantage of the natural resources, gas, that God has endowed us with.

“What we produce in our country is more than enough for us to use for CNG; and of course, you know, we are exporting to so many other countries.”

This development follows a recent CNG vehicle explosion at the NIPCO CNG station on Eyean, Auchi Road, Edo State, which resulted in multiple injuries and damage to vehicles in the vicinity.

Fortunately, no deaths were recorded.

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