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Nigeria’s Oil Output Drops 150,000 as Aiteo Shut Pipeline Again

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  • Nigeria’s Oil Output Drops 150,000 as Aiteo Shut Pipeline Again

Nigeria’s total crude oil production to drop by 150,000 as Aiteo Eastern Exploration and Development Company Limited shut down the Nembe Creek Trunk Line (NCTL) amid attacks on the 100km pipeline.

In a statement issued by the company, the continuous attack on the key national oil infrastructure is hurting the nation’s revenue generation, especially in a period when the country is trying to up revenue generation.

The 100km NCTL pipeline has a capacity of 150,000 barrels per day and delivers crude oil to the Bonny Crude Oil Terminal.

Aiteo said, “Despite significant investments in security, technology and civic engagements, the destructive pattern of pipeline vandalism still persists.

“These attacks are persistent, sophisticated, and appear timed to inflict debilitating and disruptive effect, all indisputably calculated to decimate Aiteo’s production output in the short if not medium term.

“Regrettably, these vicious and malicious exertions by individuals and faceless entities are having that unavoidable effect.”

“The disruptions that these attacks have brought about have led to direct, irretrievable and significant losses in production and, consequently, have created revenue deficits that directly impact all the stakeholders across the relevant value chain. The consequences say nothing of the significant negative and inherently damaging effect that these malicious infractions have on the environment.”

According to the company, the NCTL has been shut down for 61 days in 2019 alone and over 200 days in the last for years.

“The number of barrels lost to these incidents, almost compare in volume to the country’s total daily production. By this level of sabotage, the NCTL has been shut down for 61 days this year alone, constituting 83 per cent cause of downtime in this year only. Over the last four years, more than 200 shut down days have been recorded on the asset,” the statement read.

Experts said by just fixing damaged pipelines, the country could attain 2.5 million barrels per day by the second half of 2020. Further highlighting the size of attacks on Nigeria’s oil pipeline.

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.

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Economy

Oil Prices Decline on Rising COVID-19 Cases

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Global Oil Prices Dipped on Friday as New COVID-19 Cases Jump Globally

Global oil prices decline on Friday as the number of confirmed COVID-19 cases surged across the world.

Brent crude oil, against which Nigerian oil is priced, declined from $43.47 per barrel it traded on Thursday during the Asian trading session to $41.60 per barrel on Friday at around 11:39 am Nigerian time.

global Oil prices While the price of US West Texas Intermediate (WTI) crude oil dipped from $40.97 per barrel it traded on Thursday to $38.78 on Friday.

Oil traders and investors are worried that the rising number of COVID-19 new cases would disrupt demand for the commodity and force refineries to shut down once again.

“I do not suspect many oil traders will be looking to place significant bids in the market today, suggesting prices may continue to wallow into the weekend,” said Stephen Innes, chief global markets strategist at AxiCorp.

Despite efforts by both OPEC plus and other top oil producers to halt falling oil prices and reduce global oil glut, the lack of a cure for COVID-19 remained global concerns.

As previously stated on this platform, until a cure is found the world would have to find a way to either work through COVID-19 or shut down activities completely.

This is coming a day after the Federal Government of Nigeria announced that it was putting school resumption plan on hold following the latest COVID-19 report that shows Nigeria’s confirmed cases crossed 30,000 on Wednesday.

In the United States, more than 60,000 new COVID-19 cases were reported on Thursday, forcing lawmakers to start contemplating the second phase of COVID-19 lockdown.

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Economy

We Are Losing N13.9bn Monthly Because FG Caps Tariff – Discos

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Discos Says it is Losing N14bn Monthly Because of NERC Capped Tariff

The Nigerian power Distribution Companies (Discos) have said they a losing N13.9 billion in revenue every month because the Nigerian Electricity Regulatory Commission, limited how much they can charge for consumption.

Ernest Mupwaya, the Managing Director, Abuja Electricity Distribution Company, made the statement during a presentation on behalf of the Discos to the House of Representatives Committee on Power.

The statement was after the Discos demanded realistic indices before the implementation of the proposed service reflective tariff, which was supposed to be implemented on July 1.

Mupwaya said there were some outstanding requirements before the service reflective tariff could be implemented.

“One of them is the removal of estimated billing caps. The financial impact of the Capping Order is an average loss of N13.9bn monthly, thereby, undermining or jeopardising the minimum remittance requirement,” Mupwaya stated.

The July 1 service tariff implementation was halted by members of the National Assembly, who prevailed on the Discos to shelve the date to the first quarter of 2021 due to the current economic challenges in Nigeria.

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Gbajabiamila Says Nigeria Can’t Compete in AfCFTA With Weak Industries

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Nigeria Must Ramp up Industrialisation to Prevent Dumping by Other Nations

The Speaker of the House of Representatives, Femi Gbajabiamila, has said the nation can not compete effectively in the African Continental Free Trade Area (AfCFTA) with weak industrialisation and manufacturing activities.

Gbajabiamila disclosed this while receiving Adesoji Adesugba, the newly appointed Managing Director of the Nigeria Export Processing Zones Authority.

The details of the visit were made public on Thursday in a statement titled, “AFCFTA: House Speaker tasks Nigeria on industrialisation through free trade zones.”

Gbajabiamila was quoted as saying “We must act proactively so that we don’t become a dumping ground for other African nations.

“Our best option in this circumstance is to immediately set machinery in motion to ensure the effective functioning and flourishing of our export processing zones.

“We must remove all bottlenecks and perfect all stumbling blocks. We will then be fully prepared for AfCFTA and also generate massive jobs for our unemployed youths and enhance our foreign earnings.”

He added that the nation must as a matter of national emergency ramp up industrialisation through free trade zones and other effective means to compete with South Africa, Africa’s most industrialised economy and other African nations.

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