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FG Woos Investors on Oil Finds in Frontier Basins

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Investors

FG Woos Investors on Oil Finds in Frontier Basins

The federal government has said that it will provide incentives to investors who are willing to invest in oil and gas exploration in Nigeria’s frontier basins.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr. Maikanti Baru disclosed this recently when he hosted members of the Nigerian Association of Petroleum Explorationists (NAPE) in his Abuja office.

Baru urged NAPE to play a key role in promoting a public private partnership structure in the exploration of some of the green frontier basins. He noted though without clearly specifying what the government would offer, that it would be willing to make provisions for incentives for such prospective investors.

NAPE was led by its National President, Mr. Nosa Omorodion to the NNPC Towers where Baru explained that the government decided to explore the hydrocarbon potentials of the country’s green frontier basins in order to increase her depleting reserves.

The country’s frontier basin both the Chad basin and extensively into other sedimentary basins which includes the Anambra, Bida, Dahomey, Gongola/Yola and the Sokota basins, as well as the Middle/Lower Benue Trough.

Recently, Baru said when he hosted the Governor of Bauchi State, Mohammed Abubakar, that President Muhamadu Buhari had instructed the NNPC to intensify its exploration for oil in the Chad basin towards theand Kolmani River.

He told Abubakar when he hosted him that president asked the corporation to further explore the reported indicative discovery of hydrocarbons by Royal Dutch oil company, Shell in the Chad Basin and Kolmani River, with a view to making the most of it.

He also said the presidential directive has been heeded to and the corporation’s Frontier Exploration Services retooled to commence this with the Northern Nigeria Development Company (NNDC) which he noted was already prospecting for oil within the basin.

Baru equally explained then that the Department of Petroleum Resources (DPR) has been intimated on the need to assign blocks in the basin for prospective investors to take up.

He however described NAPE as a very important part of the country’s oil and gas industry, especially in promoting policy formulations that have led to the growth of exploration of hydrocarbon resources in the country.

Similarly, Omorodion said the primary objective of the association has always being to promote excellent ideas in the exploration of hydrocarbon which has contributed to the passage of landmark legislations in the country like the local content law.

He said the association was happy with Baru’s appointment as NNPC’s head, and will in November confer on him a honourary membership award which is its highest award, due to his outstanding track records in the country’s oil sector.

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.

Investment

Check Your Financial Plans Are You ‘Negative Interest Rate Ready’: deVere CEO

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Interbank rate

Negative Interest Rate is Coming, Review Your Financial Plans, Warns Green

Personal financial strategies should be reviewed to ensure they are ‘negative interest rate ready’, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The comments from Nigel Green, the founder and chief executive of deVere Group, come as the Bank of England voted unanimously on Thursday to leave UK interest rates at their current record lows, at 0.1% – but keep negative interest rates in its “toolbox” of possible measures.

The U.S. Federal Reserve said on Wednesday that it will likely keep its key interest rate near zero until the economy reaches full employment and inflation runs “moderately” above its 2% goal for “some time,” a pledge that is likely to keep rates ultra-low for at least five years.

Mr Green says: “Struggling to ease the economic pain of the pandemic, central banks have ushered us into an era of almost zero interest rates – with some experts saying that the U.S. Federal Reserve and the UK’s Bank of England, amongst others, could be on the brink of implementing negative interest rates as other central banks have already done across the eurozone and in Japan.

“This would have been unimaginable even a few months ago. But the shifts have been seismic this year.”

This is why he believes that more than ever “serious, joined-up financial planning strategies” are essential for those who are committed to growing and protecting their wealth.

He continues: “In an almost zero interest rate era – or perhaps a wide negative interest rate era looming – it’s not enough to think that you can rely on the strategies of before.

“For instance, so-called low-risk bonds, such as U.S. Treasuries, once the bedrock of investment portfolios are not providing the returns they once did. Indeed, yields have been at historic lows, prompting many experts to openly question their value.”

The deVere CEO goes on to add: “Cash is certainly ‘not king’ at the moment either. Cash sitting in accounts is most likely earning you almost nothing. It will definitely not be generating decent income.

“Meanwhile, investing in stocks offers its own complexities.

“Global stock markets have, in general terms, been on an impressive rally in recent months. But delve into the picture and all is not what it seems. A handful of firms in a handful of sectors are bringing up entire indexes.”

He concludes: “Personal financial strategies should be assessed to make sure they are suited to a new era of likely permanently ultra-low or even negative interest rates.”

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Despite COVID-19 Pandemic, Africa Still a Prime Investment Destination

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Africa Still a Prime Investment Destination, Says Participants at African Development Bank (AfDB) webinar for Asian Audiences

Participants at a webinar to present the African Development Bank’s African Economic Outlook Supplement to Asian audiences on Monday have endorsed the report as critical for post-COVID-19 Africa.

The supplement revises the growth projections and outlook for Africa for 2020 and 2021 and highlights the impact of COVID–19 on Africa’s socio-economic landscape. It recommends policy responses to safely reopen economies and accelerate growth recovery.

“Despite the COVID-19 pandemic, investment opportunities still abound in Africa,” said Tetsushi Sonobe, the Dean of the Asian Development Bank Institute (ADBI). “Global markets are shifting to South Asia and Africa. In a sense, Africa is not very far for Asian investors who might be interested in the investment opportunities on the continent.”

Around 350 participants attended the virtual event, which was co-hosted by the Asia External Representation Office of the African Development Bank. The audience included government officials, representatives from the African diplomatic corps in Asia, development professionals, representatives of civil society, academics and think tanks, students, journalists, and the general public

Sonobe observed that Africa’s GDP growth is projected to quickly rebound in 2021 following steady growth before COVID-19.

Sonobe identified some of the potential opportunities highlighted in the African Economic Outlook Supplement: “A large market with a very talented youthful population; a three-trillion-dollar market opportunity through the African Continental Free Trade Area (AfCFTA) agreements; greater manufacturing potential as low-cost manufacturing opportunities continue to move to Africa; improved business environment; and improving macroeconomic governance.”

Khaled Sherif, the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery said despite the pandemic affecting all African economies, its magnitude will vary considerably from country to country, depending on the economic characteristics and initial conditions of the countries.

“This urges us to avoid the one-size-fits-all solution to address the effects of COVID-19 in Africa. For that, the AEO Supplement notes that the continent will need the support and expertise of all. This is an opportunity to enrich the debate on what appropriate measures are needed to support African countries to recover from the pandemic, drawing particularly from Asian experience,” Sherif said.

The webinar noted that the policy recommendations of the African Economic Outlook Supplement could be regarded as important opportunities for investments. Participants also observed that although Africa is human-resource-rich, Africa will need to work on closing its infrastructure gap – an issue the African Development Bank has made one of its top priorities.

The African Economic Outlook Supplement underlines the urgency to build the resilience of Africa’s healthcare systems and economies to improve countries’ preparedness for future shocks. This means that African countries will need to rethink their current development strategies and priorities, which have clearly shown their limitations.

“Policymakers must seize the new and real opportunities for participation in global value chains, particularly with Asia and within Africa and build the infrastructure needed to encourage large-scale teleworking, e-health, and distance learning architectures for a rapid, resilient, and sustainable recovery in a post-COVID-19 digital world,” said Chuku Chuku, Officer in Charge of the Bank’s Macroeconomic Policy, Debt Sustainability and Forecasting Division.

“The pandemic notwithstanding, Africa is open to business and we look forward to working with our Asian partners.”

Released annually since 2003, the African Economic Outlook provides compelling up-to-date evidence and analytics to inform and support African decision-makers.

 

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Consortium of Western Investors Plan to Invest Over $5bn in Power Sector

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Western Investors to Invest Over $5 Billion in Renewable Energy

The Federal Government has said a consortium of Western investors have presented their plan to invest over $5 billion in the power sector.

According to the Office of the Minister of Power, the investors plan to focus mainly on the renewable energy subsector of the power sector.

Also, it was revealed that the consortium plans to deliver 1,000 megawatts capacity of hybrid solar power within 24 months.

Aaron Artimas, the Special Assistant to the Minister of Power on Media and Communications, who confirmed this to our correspondent in Abuja on Sunday, said the investors presented their plans Mr. Sale Mamman, the Minister of Power.

He said, “A consortium of Western investors interested in investing upwards of $5bn in the Nigerian power sector, with a major focus on the renewable energy sector, pitched their proposal to the Minister of Power @EngrSMamman at the Power House.”

“They made the presentation to the minister of power and it is something that is still fresh. The process is still ongoing and you’ll get updates as we proceed.”

The minister’s aide said Ron Verraneault, the main partner of the consortium led the presentation while other partners joined via zoom.

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