Economy

African Leaders Won’t Apologise for Developing More Oil Fields

Published

4 years ago

November 9, 2019

African Leaders Won’t Apologise for Developing More Oil Fields

African leaders are not buying into climate change campaign yet as they insisted their need for oil money outweighed climate concerns.

This was in response to a group of protesters that stormed the Cape Town International Convention Centre in South Africa during Africa Oil Week to demand an end to fossil fuel in accordance with the Paris Agreement.

Gabriel Obiang Lima, energy minister of Equatorial Guinea, said it is unfair to tell Africa not to develop oil fields at a period like this.

“Anybody out of the continent saying we should not develop those fields, that is criminal. It is very unfair.”

“Under no circumstances are we going to be apologising,” said Gabriel Obiang Lima.

While the tension felt at the three-day oil conference was minimal, in Europe, most oil conferences were plagued with protesters demanding environmentally friendly fuel.

Despite nations and organisations calling for the world to end fossil fuel, over 600 million people in Africa still don’t have access to electricity. A situation most experts blame for the continent sluggish growth.

“Energy is the catalyst for growth,” said Gwede Mantashe, South Africa’s energy minister and national chair of the ruling African National Congress.

“They even want to tell us to switch off all the coal-generated power stations,” he said. “Until you tell them, ‘you know we can do that, but you’ll breathe fresh air in the darkness’.”

Developed economies with huge manufacturing plants contributed the most to global warming.

In fact, recent data from Carbonbrief revealed that since the 18th century all African countries combined emitted seven times less carbon dioxide than China, 13 times less than the United States and 18 times less than the combined countries of Europe.

This explains why more efforts are put on developed economies to cut emissions than developing economies.

Noel Mboumba, Gabon’s minister for hydrocarbons, said oil is one of the key drivers of development.

“We will do all in our power to develop it.”

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Samed Olukoya

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

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Economy

Federal Government to Earn Over $500 Million in INTELS Deal

Published

5 hours ago

December 4, 2023

Investors King

The Nigerian Ports Authority (NPA) has unveiled an agreement with INTELS Nigeria Limited that is set to bring substantial financial gains to the federal government.

The comprehensive deal, negotiated over weeks, not only resolves a contentious pilotage contract but also promises to bolster Nigeria’s coffers by over $500 million.

The accord encompasses a multifaceted approach to financial benefits, including an interest waiver of $193,317,556 and a significant reduction in the interest rate on outstanding debt.

The debt, originally at a six-month London Interbank Offer Rate (LIBOR) + 6.5%, has been revised to a more favorable six months Secured Overnight Financing Rate (SOFR) + 3%.

Such financial restructuring is anticipated to save the government a staggering $326.8 million over the next 15 years.

NPA, in a detailed breakdown, elucidated that the agreement further involves spreading the debt repayment over 15 years, with the initial two years being interest-free.

Additionally, there is a commendable reduction in the commission percentage, dropping from 28% to 24.5%, a move that aligns with the government’s commitment to optimizing financial resources.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, received accolades for his tireless efforts in steering the negotiations to a successful conclusion. NPA expressed gratitude for his commitment to putting Nigeria first, emphasizing the critical role played by the minister in resolving the long-standing INTELS dispute.

Former Vice President Atiku Abubakar, however, denied benefiting from the reinstatement of INTELS contracts.

He clarified that his divestment from the company remains unchanged, emphasizing that he cannot be a beneficiary of the restored pilotage monitoring business.

NPA’s move to ensure a resolution with INTELS is not only seen as a financial triumph but also as a strategic step towards fostering economic stability.

The agreement is poised to have a positive ripple effect on revenue generation and underscores the government’s commitment to diplomatic and economically viable solutions.

Economy

Nigeria’s Refinery Output Plummets by 92% in a Decade

Published

8 hours ago

December 4, 2023

Investors King

Nigeria’s local refineries recorded a 92% decline in output over the past decade, according to the Statistical Review of the World Energy 2023 report.

The data unveils a drastic drop in refining capacity, plummeting from 92,000 barrels per day (bpd) in 2012 to a mere 6,000 bpd in 2022.

This disconcerting revelation is echoed in the Organisation of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023, which underscores an 81% reduction in Nigeria’s crude oil refining capacity, falling from 33,000 bpd in 2018 to 6,000 bpd in 2022.

Despite owning four government-owned refineries, located in Port Harcourt, Warri, and Kaduna, with a collective capacity of around 4.45 million bpd, Nigeria continues to heavily rely on importing refined petroleum products.

This dependency raises questions about the nation’s resilience and self-sufficiency in the energy sector.

Minister of State for Petroleum, Heineken Lokpobiri, had previously announced plans for the Port Harcourt refinery to commence operations by the end of the current year, with the Warri and Kaduna refineries expected to follow suit in early 2024.

This revelation comes amid rising concerns over Nigeria’s continued reliance on importing refined petroleum products, even with substantial investments in refinery infrastructure.

The decline in local refining exacerbates the challenge, leading to soaring petrol prices and a strain on the nation’s economic landscape.

Industry experts stress the urgency of revitalizing local refineries, emphasizing that dependence on imports is neither sustainable nor conducive to the country’s economic well-being.

As Nigeria grapples with the complexities of its energy dynamics, the impending revival of local refineries stands out as a crucial solution to navigate these challenging times.

Economy

FIRS Grants Taxpayers Reprieve: Offers Waiver on Penalties and Interests for Overdue Taxes

Published

9 hours ago

December 4, 2023

Investors King

In a move to alleviate the challenges faced by taxpayers in meeting their obligations, the Federal Inland Revenue Service (FIRS) has announced a significant concession.

The Chairman, Zacch Adedeji, revealed that the agency would be granting a full waiver on penalties and interests for overdue taxes, emphasizing its commitment to supporting businesses amid economic challenges.

“In recognition of the challenges that many taxpayers have faced in settling their outstanding tax liabilities,” said Adedeji, “the Federal Inland Revenue Service has approved the following tax concessions for taxpayers with outstanding tax liabilities.”

This rare concession, in accordance with the Federal Inland Revenue Service (Establishment) Act, LFN 2004, as amended, entails a complete waiver of penalties and interests on outstanding tax liabilities.

Taxpayers are encouraged to take advantage of this opportunity, provided they fulfill the condition of settling the full outstanding principal before December 31, 2023.

Adedeji further cautioned that after the concession window closes, the full penalty and interest would be reinstated if the outstanding undisputed liability remains unpaid, reinforcing the urgency for taxpayers to act within the stipulated timeframe.