Last weekend’s attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos in Delta State is costing the economy a daily loss of N470m and has also resulted in the shutdown of two of the country’s refineries.
According to the Federal Ministry of Power, Works and Housing, the vandalism of the gas pipeline would impact negatively on the Olorunsogo National Integrated Power Project plant, which has capacity for 600 megawatts of electricity, and other power plants across the country.
The Special Adviser on Media to the Minister of Power, Works and Housing, Mr. Hakeem Bello, said in a statement on Wednesday that although security agencies had intensified the search for those behind the attack on the pipeline, their action would slow down the country’s power supply system.
Explaining the financial and economic implications of the action on the Nigerian economy, he said, “The sabotaged gas pipeline, which contributes to the Escravos-Lagos Pipeline System, has led to a loss of 160mmsfcd of gas daily. At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78.8m) in gas volume.
“This is in addition to losses to be incurred daily from power generation ($1,988,223 or N391,680,000 daily). The total daily loss to the country is, therefore, estimated at N470,479,931. Repairs of the damaged pipeline are estimated to cost $609,137 or N120,000,000.”
According to the ministry, the real sector of the economy has also been counting its losses as some cement companies around Olorunsogo like Ewekoro and Ibese are also affected.
It stated that the latest incident occurred when the Federal Government through the Ministry of Power, Works and Housing and the Ministry of Petroleum Resources along with allied agencies had been making concerted efforts to improve gas supplies to the power plants.
“Such efforts led to previously offline plants like Ihovbor and Sapele coming back online and the subsequent output making up for the loss in power. The pipelines are being actively monitored for further attacks or other unforeseen impacts,” the statement noted.
The ministry added that available records showed that six incidents of vandalism from December 2014 to February 2015, which affected the Trans Forcados Pipeline at Oben, Sapele and Oredo, and the Escravos Lagos Pipeline System CNL led to a loss of 1,100mmscfd.
Industry experts explain that a loss of 200mmscfd is equivalent to a power reduction of 700MW.
Similarly, the Nigerian National Petroleum Corporation on Wednesday announced the operational shutdown of the Port Harcourt and Kaduna refineries owing to crude supply challenges arising from the recent attacks on vital crude oil pipelines.
The NNPC, in a statement issued by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the plants were shut simultaneously on Sunday after the Bonny-Okrika crude supply line to the Port Harcourt refinery, and the Escravos-Warri crude supply line to the Kaduna refinery suffered breaches.
The NNPC stated that before the closure, the Port Harcourt refinery was recording a daily petrol yield of over 4.1 million litres, while the Kaduna refinery was posting a daily petrol production of about 1.3 million litres.
The national oil firm also stated that the Warri Refining and Petrochemical Company was on stream and was producing a little above 1.4 million litres of petrol per day.
The NNPC, however, gave an assurance that it had put in place strategies to guarantee unimpeded countrywide availability of petroleum products.
“In response to the unexpected setback, we have activated comprehensive remedial measures to sustain the prevailing stability in the supply and distribution of petroleum products across the country,” it said.
FG Puts School Resumption Plan on Hold as COVID-19 Cases Hit 30,000
FG Drops School Resumption Plan as COVID-19 Cases Cross 30,000
The Federal Government has dropped plans for certain students to return to school following the surge in COVID-19 cases.
The Nigeria Centre for Disease Control (NCDC) on Wednesday reported that the number of confirmed COVID-19 cases rose to 30,249 on Wednesday.
“Till date, 30249 cases have been confirmed, 12373 cases have been discharged and 684 deaths have been recorded in 36 states and the Federal Capital Territory,” the NCDC stated.
The report forced the Federal Government to drop plans for certain students to return to school.
The Minister of Education, Adamu Adamu, told reporters in Abuja on Wednesday.
“We will not open soon for examinations, or for any reason, unless it is safe for our children,” Adamu after a cabinet meeting.
“Our schools will only open when we believe it’s safe for our children and that is when the situation is right, not when the incidence of the infection is going up in the nation.”
Complete Confirmed COVID-19 Cases by State
|States Affected||No. of Cases (Lab Confirmed)||No. of Cases (on admission)||No. Discharged||No. of Deaths|
FG Approves N109bn Contracts for Four Roads, Hostel
FG to Spend N109bn On Four Roads, Hostel
The Federal Government on Wednesday approved different contracts on roads and others totalling N109.187bn.
The approvals for the contracts were parts of the decision reached at a virtual meeting of the Federal Executive Council presided over by the President, Major General Muhammadu Buhari (retd.).
The contracts were approved based on the requests of the Ministry of Works and Housing as well as the Ministry of Education.
The Minister of Works and Housing, Babatunde Fashola, told State House correspondents at the end of the meeting that his ministry submitted two memoranda for projects estimated to cost a total of N108.44bn.
He disclosed that the council approved an augmentation of existing contract by N25bn for the completion of the Enugu – Lokponta section of the Enugu – Port Harcourt Expressway.
He said, “The Ministry of Works and Housing presented two memoranda. The first one was to aid the completion of the Enugu – Lokponta section of the Enugu – Port Harcourt highway. It was an augmentation of existing contract by N25bn; the council approved that augmentation.
“The second memorandum was the award of three different roads. The first is Dikwa-Marte-Mungunu road for N60. 273bn and the Numan Road linking Borno and Adamawa for N15.527bn and the third is for Gombi-Biu linking Adamawa and Borno also for N7.643 bn.”
The Minister of Education, Adamu Adamu, said the FEC approved an agreement between the Kaduna Polytechnic and an investor to renovate 18 blocks of student hostels.
The contract, which is a 15-year concession at the cost of N744.26m is under a Renovate Operate, Maintain and Transfer arrangement.
He said, “It will take one year to construct the hostels, after which the contractor will run it for 15 years within which they will recover what they have sunk into the project.
“There are 18 blocks of hostels and each room in a block will house four students. The total number of students to be housed will be 4,032.”
COVID-19: EU Restricts Nigerians From Entering Europe After Infecting them
European Union Excludes Nigerian from 54 Nations that Can Enter the Region
The European Union (EU) has excluded Nigeria from the list of 54 nations that will be allowed to enter the region when it eventually opens its external borders in July.
In a statement published on schengenvisainfo.com, the union listed the 54 countries as Albania, Algeria, Andorra, Angola, Australia, Bahamas, Bhutan, Bosnia and Herzegovina, Canada, China, Costa Rica, Cuba, Democratic People’s Republic of Korea, Dominica, Egypt, Ethiopia, Georgia, Guyana and India.
Others are Indonesia, Jamaica, Japan, Kazakhstan, Kosovo, Lebanon, Mauritius, Monaco, Mongolia, Montenegro, Morocco Mozambique, Myanmar, Namibia, New Zealand, Nicaragua, Palau, Paraguay, Rwanda, Saint Lucia, Serbia, South Korea, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uruguay, Uzbekistan, Vatican City, Venezuela, Vietnam and Zambia.
While China, the outbreak nation, South Korea and Japan, two of the most affected nations in the world, will be allowed to enter the Euro-area when external borders reopen in July, Nigeria with fewer cases of COVID-19 has been excluded from the list despite an Italian businessman been the index case.
The Italian businessman had traveled to Nigeria in February 2020 and tested positive to COVID-19 on February 27 after interacting with Nigerians that came in contact with him.
The Nigerian government had allowed citizens of Euro-area to travel into the country despite the rising number of new cases in the region, especially in Italy, France and Germany. However, the revise is the case now, even with Nigeria addressing the situation started by the European Union.
Eric Mamer, the spokesman for the commission, said “The European Union has an internal process to determine from which countries it would be safe to accept travellers.”
News7 days ago
Fire Guts Central Bank of Nigeria Office in Gombe
Finance3 days ago
DSS Arrests EFCC, Acting Chairman, Magu
Forex4 days ago
CBN Starts Using N380/$ Official Rate, Expects to Make it Official Soon
Stock Market4 days ago
Flour Mills, Dangote Cement, Vitafoam Disclose Insider Dealings
Economy7 days ago
Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months
Technology7 days ago
Jeff Bezos Sets a New Record as Net Worth Hits $172bn
Finance3 days ago
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
Stock Market4 days ago
Stock Investors Lose N257bn as Nigerian Stock Exchange Closed in the Red Last Week