- Stakeholders Agitate For Downstream Deregulation To Curb Subsidy
As private oil marketers continue to stay on the sidelines in terms of petroleum products importation, stakeholders in the industry have emphasized the need for the Federal Government to fully deregulate the downstream sub-sector of the petroleum industry.
Stakeholders which includes; Major Oil Marketers Association of Nigeria, MOMAN, Independent Petroleum Marketers Association of Nigeria, IPMAN, and Depot and Petroleum Products Marketers Association, DAPPMA, made the call, reiterating that the liberalization would pave way for a huge and more attractive investments in the sector.
Oil Marketers in Nigeria have continually emphasized the need for the government to have a re-think on the downstream oil sector deregulation, adding that without the full liberalization of the sector, the huge spectral subsidy on the importation of petroleum products will continue to haunt Nigeria’s petroleum industry.
The Chief Executive Officer/Executive Secretary, MOMAN, Mr Clement Isong, speaking on this, said there is need to tailor the downstream sector of the oil and gas industry in line with international best practices.
“As the market players grow their businesses, they will increasingly become exposed to risk management challenges and will move their capital to areas where return matches the risks.
“We recommend that government should deregulate pump prices and focus on enforcing compliance with adequate regulations on health, safety, environment and quality.” he said.
Speaking further on how the proposed deregulation will impact other aspects of the Nigerian economy, Mr Clement Isong said, “Deregulation will also enable the Nigeria Railway Corporation to lift more products from the South to other parts of the country to reduce transportation.”
The National President, IPMAN, Mr Chinedu Okoronkwo, speaking on this, said the total liberalization of the sector would attract more investment, create more jobs and reduce the pressure on foreign reserves.
Also, the Executive Secretary, DAPPMAN, Mr Olufemi Adewole, called for a full deregulation of the downstream sector of the oil and gas industry, especially with the current increase in the landing of petroleum products. Adding that, the NNPC has been the sole importer of petrol into the country for over a year.
However, in an interview with news reporters on the sidelines of the 16th Nigeria Oil and Gas conference in Abuja, Senator Garba Marafa, Chairman, Senate Committee on Petroleum Downstream, said total liberalization of the downstream sector of the petroleum industry remains the best option to salvage the Nigerian economy.
IATA Says Nigerian Airlines Loses $2.09bn in April and June
Airlines in Nigeria Loses $2.09 Billion in April and June
The International Air Transport Association (IATA) has estimated that Nigerian airlines lost about $2.09 billion in the month of April and June due to COVID-19 lockdown.
In its report titled ‘Quarantine measures threaten aviation restart in Africa and the Middle East,’ IATA stated that the aviation sector in Africa and the Middle East was the worst-hit.
According to the report, the aviation sector in the two regions provides over 8.6 million direct and indirect jobs.
While the report did not provide data for the month of May, it stated that the number of Nigerian passengers declined by 4.7 million in April and 5.32 million in June when compared with the same period of 2019.
Similarly, the report said 125,400 jobs were at risk in April and 139,500 jobs were at risk in the month of June.
Muhammad Albakri, the Regional Vice President for Africa and the Middle East, IATA, said governments in Africa and the Middle East must devise alternative methods to the current quarantine measures in place, saying the two regions have the highest number of government-imposed quarantine measures on arriving passengers.
He said, “It is critical that AME governments implement alternatives to quarantine measures. AME has the highest number of countries in the world with government-imposed quarantine measures on arriving passengers.
“The region is effectively in complete lockdown with the travel and tourism sector shuttered. This is detrimental in a region where 8.6 million people depend on aviation for their livelihoods.”
Oando Partners Oilserv to Build Ajaokuta-Kaduna Portion of AKK Project
Oando, Oilserv to Construct Ajaokuta-Kaduna Portion of AKK Project
Oando Plc has partnered Oilserve Limited to construct a 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the $2.8 billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project, the AKK Pipeline.
According to a statement released by Oando through the Nigerian Stock Exchange, the construction of the AKK Pipeline Project approved in 2018 has commenced on Tuesday, June 30, 2020.
The statement reads “Oando PLC (referred to as “Oando” or the “the Company”), is pleased to announce to the Company’s attendance as a consortium partner at the flag-off ceremony for the construction of the $2.8billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project (the “AKK Pipeline”), by the President of the Federal Republic of Nigeria, Muhammadu Buhari GCFR on Tuesday, June 30, 2020.
“The AKK Pipeline Project, championed by two consortia comprising select indigenous and international companies commenced in 2013 with the announcement for tenders by the Nigerian National Petroleum Corporation (NNPC). In April 2018, the Company announced that following an extensive due diligence and bid process, the Oilserv-Oando PLC consortium was awarded the Engineering, Procurement, and Construction (EPC) mandate for segment 1, accounting for 40” by 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the AKK Pipeline Project by the NNPC.”
Speaking on the project, Jubril Adewale Tinubu, the Group Chief Executive, Oando PLC, said: “As a proudly Nigerian company, focused on driving indigenous participation we have always been proponents of public private partnership in accelerating the actualization of the nation’s goals.
“We have aspired to play an integral role in the building out of the National Gas Infrastructure and Pipeline Grid, as evidenced by our efforts in 2009, post the Nigerian Gas Masterplan when we participated in the unrealized Calabar- Ajaokuta- Abuja-Kano (CAAK) line.
“We have developed strategic partnerships with both private sector players and the NNPC in bringing sustainable solutions to spur the development of the country via our numerous gas development and distribution projects. We commend the NNPC for spearheading projects that will soften the headwinds occasioned by the global COVID-19 pandemic.
“We are proud to be active participants in driving the country’s industrialization and actualization of the Gas Master Plan which will undoubtedly create employment opportunities and ultimately generate as well as enhance value for the nation.”
Ethiopian Airlines Sustain Profitability Despite COVID-19
Despite COVID-19, Ethiopian Airlines Stay Afloat
Africa’s largest airline, Ethiopian Airlines, manages to stay afloat during the peak of COVID-19 pandemic, Tewolde Gebre-Mariam, the airline CEO, stated.
The Chief Executive Officer said “We may not be as profitable as we expected but we registered some profit. The first half of the year was good and the cargo business has also done very well.”
While the airline is expected to be down by almost $1 billion in ticket sales in the current year ending July 7, it generated enough revenue from the transportation of goods to finance monthly fixed payments between $120 million to $150 million for loans, aircraft leases, salaries and rentals.
According to Gebre-Mariam, the airline is still flying about 40 charter repatriations per week despite other flights completely grounded.
News3 days ago
Fire Guts Central Bank of Nigeria Office in Gombe
Economy3 days ago
Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months
Technology3 days ago
Jeff Bezos Sets a New Record as Net Worth Hits $172bn
Technology4 days ago
Facebook, Google Earn 80% of Annual Digital Ads Spend – Report
Finance3 days ago
Debt Market: Dangote Cement Raises N250 Billion in H1, 2020
Economy3 days ago
Oil Sustains $42 Price Level as OPEC Output Drops to Over Two-Decade Low
Forex3 days ago
Naira Records Marginal Gain Against the US Dollar on Thursday
Economy4 days ago
FG to Open Abuja, Lagos Airports on July 8, PH, Others on July 11th