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FG Okays Independent Power to Abuja Airport

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  • FG Okays Independent Power Supply to Abuja Airport

The Federal Executive Council on Wednesday approved the contract for the provision of independent power supply (at N61 per kilowatt/hour) to the Nnamdi Azikwe International Airport, Abuja.

The Minister of State for Aviation, Hadi Sirika, disclosed this to State House correspondents at the end of the council’s first meeting of the year presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

Sirika said the contract was awarded following the structural challenges encountered in the construction of a new terminal at the airport being handled by a Chinese firm.

The minister stated, “The new terminal building at the Nnamdi Azikiwe Airport, which is called the Chinese Building, has challenges of power, water, sewage, apron etc., that we are putting up there. So, we have to find a way of dealing with those challenges; we are putting up an independent power system at the airport, which has been approved by FEC.

“Subsequently, we will also tend to the challenges of water, sewage, apron, connectivity between the old and new airports and all the fire stations that are blocking the usage of the airport and perhaps, also the control tower that is connecting the other side of the airport.

“All these will be attended to in phases in preparation for the full utilisation of the airport.”

The Minister of Power, Works and Housing, Babatunde Fashola, said the council also approved a N5.44bn contract for the rehabilitation of the 36km Ugbokolo section of the 9th Mile/Oturkpo Road that links Enugu State to Benue State.

According to him, the contract has been awarded to the firm already handling other sections of the highway and is expected to complete it in 24 months.

On the cattle colonies being proposed by the Federal Government, Sirika assured landowners of adequate compensation for their land that would be acquired.

He said the colonies would not be too different from the old practice of reserving certain areas for cattle grazing, for which the original land owners would be compensated.

He stated, “I am not speaking as an agricultural expert but growing up in the hinterlands, I know there used to be cattle routes; we call them ‘burtali’ in the local language. These were established by the Federal Government in 1914. They are designated routes where the cattle follow, feed, graze and drink water.

“When those ones were available, there was no farmer/herdsmen clash because the routes are specific, identified and mapped, and were paid for in compensation over time. But I think due to development and increase in population, these routes are either captured or converted to farms.

“The question of colony or grazing land or whatever name they are called is about the same thing really. I don’t think the government will do anything without recourse to owners of farm lands and laws of the land.”

The Minister of Information and Culture, Lai Mohammed, said the issue of killings allegedly by herdsmen was receiving attention at the highest level.

He added that deployment of troops was at the discretion of higher and appropriate authorities.

Responding to reports that Buhari’s son, Yusuf, who is recuperating from injuries sustained in a power bike accident in Abuja few days ago, might have been flown to a German hospital, Mohammed said the case was “purely a private matter.”

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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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Economy

Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months

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Citigroup Says Crude Oil Will Reach $60 Per Barrel in a year

Despite the current economic downturn and the projected second phase of COVID-19, Citigroup, a New-York based financial service company, has said oil price could hit $60 per barrel in the next 12 months.

Citigroup disclosed this on Thursday during a virtual EMEA Media Summit titled – ‘Navigating the Future: What’s Next in a Post-COVID-19 World’.

“After a substantial underperformance in the last six months relative to several other commodities, crude will eventually bounce back to around $60 per barrel over the next 12 months,” Max Layton, European Head of Commodities Strategy, Citigroup said while giving a presentation on the outlook for commodities in the second half of 2020, and into 2021.

This means Brent crude oil would rise by at least 50 percent from the current level of $42 per barrel in the next 12 months.

“It’s going to be a function of the demand and supply but recently we have been seeing a spike in the demand for some of the commodities,” said Atiq Rehman, Head of EMEA Emerging Markets, Citigroup.

“A lot of these economies are heavily commodity-dependent, and perhaps, in the past have been guilty of not diversifying when they come under pressure. I think perhaps, this recent moves will push them to diversify away from simply commodities,” Grant Carson, Head of TRUK And Non-Presence Countries, Citigroup, stated citing Russian as one of the countries that have recorded success in diversifying away from crude oil.

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Oil Sustains $42 Price Level as OPEC Output Drops to Over Two-Decade Low

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OPEC Oil Output Drops to Over Two-Decade Low in June

Crude oil sustained $42 per barrel price level following a recent survey conducted by Reuters that showed the Organisation for the Petroleum Exporting Countries (OPEC) managed to cut oil production to over two-decade low in the month of June.

According to the survey, OPEC’s 13 members pumped 22.62 million barrels per day in June, 1.92 million barrels per day below May’s revised figure. The lowest since May 1991.

OPEC and allies, together referred to as OPEC plus, had agreed to cut oil production by 9.7 million barrels per day in the month of April to rebalance the global oil market and prop up prices amid COVID-19 pandemic.

OPEC’s share of the 9.7 million barrels per day production cut was 6.084 million bpd but OPEC delivered 6.523 million bpd cut in the month of June despite the inconsistencies from Nigeria, Angola and Iraq.

In June, Saudi Arabia reduced production by 1.13 million barrels per day to 7.53 million bpd. While Kuwait and the United Arab Emirates met their quota but struggle to fulfill the extra cuts.

Nigeria, Iraq and Angola continue to struggle in the month of June. However, their performance improved compared to May as Nigeria attained 77 percent compliance level, up from 19 percent in May.

While Iraq and Angola achieved 70 percent and 80 percent compliance level, respectively. Nigeria and Iraq have pledged to cut more in July despite their economic challenges. Angola, however, said it would not be able to cut extra oil production until October.

Brent crude oil, against which Nigerian oil is measured, rose to $42.48 per barrel on Friday as at 2:58 pm Nigerian time.

UKOilDaily

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Nigeria Labour Congress Says No Fuel Increase Amid COVID-19 Pandemic

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No Fuel Increase During COVID-19 Pandemic, Says Nigeria Labour Congress

The Nigeria Labour Congress (NLC) on Thursday rejected the new fuel price announced by the Petroleum Products Price Regulatory Agency (PPPRA) on Wednesday.

In a statement issued by Ayuba Wabba, the President, NLC, the labour demanded instant reversal to the old price, saying the move will kill businesses and worsen the nation’s poverty level at a time when nations are looking to ease economic burden of their citizens and mitigate negative impacts of COVID-19.

The PPPRA had raised the value band of Premium Motor Spirit, commonly referred to as Petrol, to between N140.80 and N143.80 per litre on Wednesday because of the recent increase in crude oil prices.

Nigeria Labour Congress argued that “PPPRA contradicted itself when it said that the latest price increase described as an “advisory” was meant to regulate a product that government claims had been de-regulated.

“That this new hike in the pump price of petrol was announced without the approval of the board of the PPPRA and the oversight ministry speaks volume of the arbitrariness and public contempt in the operations of PPPRA. We find this deeply disturbing.

“It is also very embarrassing that the PPPRA boss, while trying to defend the indefensible, appeared to be out of sorts and ready to clutch at any available straws to sell his ice block merchandise to Eskimos.

“Apart from contradicting himself that PPPRA is still trying to regulate a deregulated product through ‘advisories’, the PPPRA went on to exert more nails on the coffin of his polemics when he argued that PPPRA was just like the Central Bank of Nigeria, CBN, and the National Insurance Commission, NAICOM, that would always act to protect the public interest.

“That was how far the niceties went. The rest of the statement by the PPPRA boss was about how PPPRA plans to protect investors and increase their profit.”

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