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Nigeria Made N374.8bn From Domestic, Export Gas Sale in 2021 – NNPC

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Gas-Pipeline

Nigeria raked in about $868.5m (N361.43bn at the official exchange rate of N416.15/$) from gas export and N13.36bn from domestic gas sale in 2021, an analysis of the latest gas revenue data and other monthly reports obtained from the Nigerian National Petroleum Company Limited showed.

Data from the oil firm showed that the Federal Government through NNPC garnered the funds from the sale of Natural Gas Liquids/Liquefied Petroleum Gas, as well as Nigeria Liquefied Natural Gas feedstock.

It was learnt that the joint venture partners of NNPC in the gas business during the review period include Chevron Nigeria Limited, Mobil Producing Nigeria, Shell Petroleum Development Company and Total Exploration and Production Nigeria.

Findings showed that in January 2021, the country earned $50.19m from the export of NLNG feedstock and made N1.05bn on domestic NGL/LPG, while in February it made $26.6m and $90.38m from NGL/LPG and NLNG feedstock exports respectively.

The country earned N1.24bn from domestic NGL/LPG in February last year.

For the month of March, the NNPC stated that gas sale earnings from NGL/LPG and NLNG feedstock were $15.89m and $68.29m respectively, as the country raked in $34.32m and N1.25bn from NLNG feedstock and domestic NGL/LPG respectively in April.

Data from NNPC showed that $36.01m was earned from NLNG feedstock in May 2021, while NGL/LPG domestic was put at N1.25bn.

In June, Nigeria made $19.95m and $44.01m from the export of NGL/LPG and NLNG feedstock respectively, while its earnings from NGL/LPG domestic was N1.63bn.

No amount was recorded as earning from NGL/LPG export and NGL/LPG domestic in the month of July last year, but the country made $54.396m from NLNG feedstock in the same month.

The August 2021 export gas receipt for NLNG feedstock was $52.78m, as NGL/LPG domestic was N1.74bn, while in September, the country made $32.234m and $84.8m from NGL/LPG and NLNG feedstock exports respectively.

Nigeria’s revenue from NGL/LPG domestic in September was put at N4.1bn.

The country’s gas earnings in October from NLNG feedstock and NGL/LPG were slipped into the next month, according to information from NNPC.

In November, earnings from the exports of NGL/LPG and NLNG feedstock were $40.14m and $149.95m respectively, while NGL/LPG domestic was N4.1bn.

In the final month of last year, December, the NNPC explained that the proceeds from NGL/LPG export had yet to be reflected in the Central Bank of Nigeria/Chevron Joint Venture account at the time, as CNL was the JV partner involved in the transaction.

It, however, stated that a total receipt of $68.53m was earned from the sale of NLNG feedstock in December 2021.

The Federal Government has been making efforts to deepen the country’s gas earnings, as Nigeria has abundant gas resources than crude oil.

Last month, for instance, the Minister of State for Petroleum Resources, Chief Timipre Sylva, called on the United States Government to support Nigeria with funds to develop Nigeria’s natural gas resources so as to serve as alternative source of energy for Europe.

He made the call on the heels of the war by Russia in Ukraine, which posed a threat and disruption of gas supplies from Russia to the entire Europe.

Sylva disclosed this while speaking at a meeting with the US Secretary of Energy, Jennifer Granholm, on the side-lines of the CERA Week, in Houston Texas.

He was quoted in a statement issued by his media aide, Horatius Egua, as saying, “It is in the interest of the global community that there is alternative supply of gas to Europe.

“The challenge for us to achieve this feat has been lack of infrastructure and we need funding to develop infrastructure for our gas and we believe that the US can provide that funding.”

The minister told Granholm that Nigeria had abundant natural gas resources that could meet European gas demands, but stressed that the problem had been access to funds.

He stated that as part of efforts to boost gas supplies across the African continent, Nigeria had embarked on the construction of a 600km Ajaokuta-Kaduna-Kano gas pipeline designed to take gas to Europe via North Africa.

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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Banking Sector

Buhari Expresses Confidence in Banking Institutions to Tackle Economic Challenges

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President Muhammadu Buhari

President Muhammadu Buhari has expressed his confidence in the West African Banking Association (WABA) to tackle economic challenges in the West African region.

The president expressed his trust while receiving a team from WABA, led by its President, Thierno Seydou Nourou Sy, at the State House in Abuja.

The president stated that the sub-region needs to come to an agreement on low access to financial services and recovery from the COVID-19 pandemic.

According to him, the association, founded in 1981, brings together over 250 commercial banks and 15 institutions from across West Africa, and for many centuries, African countries have traded with one another without a formalized and structured system. He, however, noted that over time, global trade had become more complex and organized.

The president expressed optimism that the launch of the African Continental Free Trade Area will mark a watershed moment in the way African countries do business.

“More importantly, we will turn the page in ensuring that we deepen and expand our industrial capabilities by making sure we export less of what we have been endowed with in the primary or raw form, and convert larger portions of these resources into finished materials.

“That will allow us to benefit from the revenue earned from the added value of exporting a finished product,” he said.

“Our ability to overcome the current phase of our development lies in our resolve to work jointly via our regional and sub-regional organizations where we can all reach a common understanding to fight against a common enemy.

“This is one of the reasons I am delighted with the strides ECOWAS has been making towards unanimity and forging alliances with a goal to resolve issues that confront the sub-region.

“I believe that this is also the approach that is being followed in the West African Bankers’ Association and the West African Monetary Union,’’ he added.

While commenting on WABA’s ongoing attempts to synchronize monetary and fiscal policy, the president pushed the organization to find common ground despite the particular macroeconomic challenges that each member-state faces.

He pledged that Nigeria would always be ready to support efforts that are geared towards improving the lives of all its citizens “as long as they do not place us at a disadvantage.”

The WABA President praised Nigeria’s leadership role in the African economy, while also praising President Buhari’s leadership.

“That’s why we are here for counsel and guidance for the financial sector in West Africa,” he said. He further urged the president to be an advocate for the greater inclusion of WABA in the ECOWAS structure.

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Finance

NGX Sheds 0.13% on Monday to Extend its Decline

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Stock - Investors King

The Nigerian Exchange Limited (NGX) extended its decline on Monday as investors exchanged 263,338,835 shares worth N3.549 billion in 4,549 billion.

The market value of all listed equities decreased by N37 billion from N28.562 trillion it closed on Friday to N25.525 trillion while NGX shed 0.13% to close at 52,911.51 index points on Monday.

Jaiz Bank led the most traded stocks with 114007816 shares worth N101,752,697.03. Followed by GTCO’s 12,872,851 shares valued N302,842,620.75. See other details below.

Top Gainers 

Symbols Last Close Current Change %Change
CONOIL N 31.15 N 34.25 3.10 9.95 %
MRS N 13.60 N 14.95 1.35 9.93 %
MCNICHOLS N 2.13 N 2.34 0.21 9.86 %
ACADEMY N 1.23 N 1.35 0.12 9.76 %
NPFMCRFBK N 1.87 N 2.02 0.15 8.02 %

Top Losers 

Symbols Last Close Current Change %Change
PRESCO N 200.00 N 180.00 -20.00 -10.00 %
GSPECPLC N 3.41 N 3.07 -0.34 -9.97 %
NEIMETH N 1.76 N 1.59 -0.17 -9.66 %
UACN N 14.40 N 13.20 -1.20 -8.33 %
NEM N 4.39 N 4.05 -0.34 -7.74 %

Top Trades

Symbols Volume Value
JAIZBANK 114007816.00 101752697.03
GTCO 12872851.00 302842620.75
TRANSCORP 12806324.00 16725610.46
ACCESSCORP 11657629.00 115657901.70
ZENITHBANK 8579430.00 207021363.25

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Finance

Nigeria Raises Interest Rate by 150 Basis Points to 13%

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Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) led Monetary Policy Committee on Tuesday unanimously agreed to raise interest rates by 150 basis points from 11.5% to 13% to rein in escalating consumer prices.

The apex Governor, Godwin Emefiele disclosed this while speaking to the media on Tuesday, May 24th, 2022.

In 2020, the committee cut interest by 50 basis points to 11.5% in September 2020 to encourage borrowing and deepen new investment to stir growth and halt the plunge in economic productivity during the peak of COVID-19.

The nine-member committee voted unanimously to keep Monetary Policy Rate (MPR) at 13% and others as follow:

  • The asymmetric corridor of +100/-700 basis points around the MPR was retained
  • CRR was retained at 27.5%
  • While Liquidity Ratio was also kept at 30%

The increase may not be unconnected to Nigeria’s high inflation rate of 16.82% in April. The committee is now projecting an aggressive increase in the inflation rate due to the forthcoming general election.

Emefiele said the MPC is suspicious “there might be an aggressive accretion of inflation”. Therefore, to prevent the looming inflation, he said the committee had to raise the interest rate by 150 basis points.

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