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Direct Crude Sale Saves Nigeria N102.6bn

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oil
  • Direct Crude Sale Saves Nigeria N102.6bn

By putting an end to the crude-for-products exchange arrangement, popularly known as crude swap, Nigeria was able to save N102.6bn between April and July this year.

In February, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, announced the replacement of the crude swap arrangement with what he described as the Direct-Sale Direct-Purchase framework, which commenced in April.

The DSDP was adopted to replace the crude swap initiative and the Offshore Processing Arrangement in a bid to ensure transparency in the crude oil for product transaction by the Nigerian National Petroleum Corporation.

Documents sighted by our correspondent at the headquarters of the NNPC in Abuja on Friday showed that by implementing the DSDP arrangement, Nigeria was able to save $336.4m (about N102.6bn at the official exchange rate of N305 to one dollar) in four months.

Under the old swap order, crude oil was exchanged for petroleum products through third party traders at a pre-determined yield pattern.

But the DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of the crude oil transaction with its partners.

The NNPC said, “Although it recorded another loss worth N24.18bn in the month of July 2016, it had some positive report from its management of the Direct-Sale, Direct-Purchase framework.”

It noted that the DSDP framework, which was adopted in April to ensure the supply of refined products in the country, earned an average of $53m monthly for Nigeria.

“These savings amount to $336,379,854.98 in four months – April to July 2016,” the national oil firm said.

Kachikwu had explained that the DSDP initiative would whittle down the influence of the minister in the selection of bid winners as it would allow all bidders to be assessed based on their record of performance.

“The policy is aimed at reducing the gaps inherent in OPA and the losses incurred by the NNPC in the past,” the minister had said.

Meanwhile, the NNPC said that disruption to the nation’s crude oil production reached 750,000 barrels per day in July 2016, the highest since January 2009.

This, it said, followed increased militant attacks on major oil and natural gas infrastructure across the country.

The country’s oil firm noted that recently, prevailing security situation in the oil producing communities in the Niger Delta had pushed down national oil production to less than a million barrels per day.

The value of oil and gas infrastructure vandalised and the associated repairs and replacement costs had been on the increase, it said.

It specifically said that about 1,447 incidences of pipeline vandalism were recorded from January to June 2016.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Government

The Governor of Lagos State Promise to Fulfil all Commitment Despite Covid-19 Pandemic

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Sanwo Olu

Sanwo-Olu expresses commitment to fulfilling promises to Lagosians, says COVID-19 won’t be an excuse

Lagos State Governor, Mr. Babajide Sanwo-Olu on Monday assured Lagosians that his administration is committed to fulfilling all his promises despite disruption occasioned by the COVID-19 pandemic and other challenges that were not envisaged.

The Governor said fulfilling the promises in line with the T.H.E.M.E.S development agenda for ‘Greater Lagos’ would be delivered by the incumbent administration, despite reduction in the budget as a result of the COVID-19 pandemic, knowing fully that no excuse will be tenable to the residents of the State.

Speaking during the opening ceremony of the first Lagos State two-day Ministerial Performance Review retreat being held at the Adeyemi Bero Auditorium, Alausa on Monday, Governor Sanwo-Olu said the State Government is determined to step up the tempo of governance through innovative and inclusive policies.

He said: “I want to assure you that despite disruption occasioned by COVID-19 and other challenges that we did not envisage, we are still committed as a government to fulfilling the promises we made to people knowing fully that no excuse will be tenable to our citizens.

“We must be determined to step forward, heighten the tempo of governance and continue to create opportunities through innovative policies that are not only inclusive but provide sustainable solutions for this present administration and lay foundation for future administrations coming behind us.”

Governor Sanwo-Olu also implored members of the state executive council and other public office holders to be committed to the incumbent administration’s effort to meet the yearnings and aspirations of Lagosians, especially the electorates who elected him to govern the affairs of the state.

He said: “Let me emphasise that our yardstick for performance assessment will not be based majorly on the amount of money expended or Budget but the outcome of our various interventions that we have had; what measures the impact that touched the lives of citizens that we swore to serve.

“One of the promises we made at the inception of our administration and in line with the principle of continuity was to ensure the completion of projects that were inherited from the last administration. A significant part of our efforts and resources was devoted towards fulfilling this promise and taking government to another level.”

The Deputy Governor, Dr. Obafemi Hamzat in his address enumerated all the government achievements in the last one year and four months in line with the T.H.E.M.E.S. agenda the Babajide Sanwo-Olu administration promised the people of Lagos State.

The THEMES development agenda are; Traffic Management and Transportation, Health and Environment, Education and Technology, Making Lagos a 21st Century Economic, Entertainment and Tourism, and Security and Governance.

Hamzat said: “We should understand that our focus should be Lagosians, Lagosians and Lagosians because ultimately, they will define what we do and they will grade us. So, we are like in an examination now and examiners don’t have deep knowledge into the operations of how we actually do things but they only measure it by perception and of course by what they see.

“And as such, our job is to make sure that we set that perception right and then we give quality things in dimension; that at the end of the day our integrity will be intact and then they can say the party has done very well and this government has done very well,” he advised the participants at the retreat.

Also speaking, the Secretary to the Lagos State Government, Mrs. Folashade Jaji, said the COVID -19 pandemic has adversely affected governments and institutions globally bringing in its wake, a new normal, adding that Lagos State, which is not left out, was the epicentre of cases in Nigeria for a long.

She therefore commended the State Incident Commander, Governor Sanwo-Olu and his deputy, the Commissioner for Health, Prof. Akin Abayomi, as well as the entire health sector family in Lagos State for the outstanding management of the pandemic, which was acknowledged statewide, nationally and internationally.

“The COVID-19 pandemic has affected not only the health sector, but also the economic sector and how we work. Therefore, our trajectory for implementation of the THEMES agenda to achieve ‘A Greater Lagos’ is going to change as we operate within the new-normal to deliver the dividends of democracy to the good people of Lagos State.

“I believe in the capability of the Executive Council members, to prolifically deliver as political heads in our various MDAs and of course with the support of all others present for this retreat. I also believe that when objective feedback is given and taken in good faith, it can only lead to improved performance,” she advised.

In his address, the Head of Service, Mr. Hakeem Muri-Okunola stressed the importance of a harmonious and effective working relationship between Permanent Secretaries who are Accounting Officers of Ministries and the Political Heads who are members of the State Executive Council.

He said: “While the Permanent Secretary has overall responsibility for the day to day administration of the Ministry as Accounting Officer and in addition to advising the Commissioner on public service processes and procedures, it is critically important that the responsibility of the political Head for the implementation of Government policies is duly recognised and the right balance and conducive atmosphere for a cordial and productive working relationship is established.”

The Head of Service also disclosed that “the core objective of this two-day retreat is to conduct a forensic review of the present administration’s scorecard along the five Pillars of our strategic development plans in the last one year. We are here to provide a honest and unemotional review of how have we fared sector by sector. Have we achieved our set targets in different sectors? If yes, what are the enabling factors that have been instrumental in the successes recorded? If we have failed to achieve set targets, what have been the factors that militated against attainment of set targets?”

He said the main thrust of the present administration is to make the Lagos economy a 21st-century economy, adding that “In this regard, the State Government has invested heavily in infrastructure renewal and roads rehabilitation across the five divisions of Lagos, not forgetting invitation for expression of interest in the 4th Mainland Bridge.”

 

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Obaseki Wins Edo State With a Landslide Victory

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Governor Godwin Obaseki has now won the remaining Local Government, Ovia South-West Local Government.

Here is a break down of Ovia South-West’s final result. APC recorded 10, 636 votes while PDP amassed 12, 659.

Total valid votes stood at 23,741 with 743 votes rejected and 24,484 votes cast.

Overall, Obaseki won a total of 13 local governments out of 18, while Ize-Iyamu wins 5. See the details below.

Local Government APC  PDP 
Igueben  5,199  7,870 
Esan North-East  6,556  13,579 
Esan Central  6,719  10,794 
Ikpoba-Okha  18,218  41,030 
Uhunmwonde  5,972  10,022 
Egor  10,202  27,621 
Owan East  19,295  14,762 
Owan West  11,193  11,485 
Esan South East  9,237  10,565 
Ovia North-West  9,907  16,987 
Etsako West  26,140  17,959 
Ovia South-West 10,636 12,659
Oredo  18,365  43,498 
Esan West  7,189  17,434 
 Akoko Edo 22,963 20,101
 Etsako East 17,011 10,668
 Etsako Central  8,359 7,478
Orhionmwon 10,458 13,445

 

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Obaseki Beats Ize-Iyamu in His Local Government to Extend Lead

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Godwin Obaseki Wins Ize-Iyamu Local Government to Extend Lead

Governor Godwin Obaseki has won Orhionmwon Local Government Area to extend his lead over Pastor Osagie Ize-Iyamu of the All Progressives Congress.

Pastor Ize-Iyamu, who hails from Orhionmwon, won his polling unit but failed to win the entire council area as Obaseki wins again.

Orhionmwon was one of the two remaining local governments. Therefore, it now remains one local government area, Ovia South-West, with Obaseki cruising to victory following 17 LG counts.

Obaseki now has 295,296 votes while Ize-Iyamu has 212,983.

Obaseki is no expected to win Saturday’s governorship election after amassing massive votes across each of the 17 local governments counted.

The remaining local government, Ovia South-West has 73,909 voters, below the over 80,000 lead of Godwin Obaseki.

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