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Telecoms Operators Spend N638bn on Bandwidth Importation

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Digital mobile operators and telecommunications service providers spend about $2bn (about N638bn) annually on the importation of bandwidth and other related services, the National Space Research and Development Agency has said.

The Director-General of NASRDA, Prof. Seidu Mohammed, said this at the National Space Dialogue, which opened in Abuja on Monday.

At the forum, the Minister of Science and Technology, Dr. Ogbonnaya Onu, and a former Vice-Chancellor of the University of Lagos, Prof.Oyewusi Ibidapo Obe, said satellites and space technologies would offer the nation veritable routes to diversification of the economy.

The NASRDA boss said the nation’s economic woes as a result of dwindling fortunes from oil and gas could be squarely addressed if adequate investments were made in satellite technologies by both the private and public sectors.

He said, “The global telecoms market is about $200bn annually. Out of this amount, $2bn leaves the country as capital flight due to foreign telecom operators in Nigeria who import foreign bandwidth and related services annually.

“Nigeria currently has over 100 million mobile phone subscribers and it is still growing with an almost 106 per cent penetration rate. The West African market is estimated to be about 200 million subscribers.

“In South Africa, an estimated $500m is lost to capital flight from communication satellite products. Also, the earth observation satellite market is worth over $4bn. Earth observation satellite products are required for many applications such as commercial as well as smart agriculture, dam monitoring, disaster management, environmental change, climate change, national security and mobile Geographic Information System.”

Mohammed said the satellite market, especially in Africa, was waiting to be tapped, adding that Nigeria which had started a space programme was in the best position to exploit the opportunities if both public and private sector investments were channelled to the sector.

Also speaking at the event, Onu said Nigeria urgently needed to address its several challenges through investment in the right technologies.

He said, “Our space programme is targeted at the areas of greatest national needs. Using space science and technology, we can promote agriculture to ensure food security. Through land preparation and management, irrigation, pest monitoring and control, space science and technology can be of great importance to farming.

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.

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Oil Prices News: Oil Gains Following Drops in US Crude Inventories

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Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level

Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.

The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.

Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.

The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.

Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”

Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.

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Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies

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Oil Prices Rise Despite Expected Surge in Global Oil Supplies

Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.

Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.

While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.

The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.

This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.

However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.

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Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs

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Oil price

Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs

Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.

The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.

The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.

In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”

“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”

Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”

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