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Home > Business > Page 11
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Business

National grid recovery almost complete, TCN assured Nigerians

by Folarin Kehinde October 16, 2024
written by Folarin Kehinde

Nigerians have been assured of a complete recovery of the national power grid which has collapsed twice in 24 hours.

The assurance was given to Nigerians by the Transmission Company of Nigeria (TCN).

According to TCN, efforts are being made to ensure the full recovery of the national grid.

The general manager of TCN, Ndidi Mbah in a statement said the recovery process commenced swiftly and has reached an advanced stage.

She said the process of recovery started with the Azura Power Station providing the necessary blackstart.

According to Mbah, as at 10.24 am on Tuesday, the recovery process was already in its advance level despite a short challenge which caused a minor setback.

Her words, “Notwithstanding the setback, TCN continued its recovery efforts, achieving significant progress.

“Bulk power availability has been restored to approximately 90 per cent of its substations nationwide, with supply reinstated to the Abuja axis and other major distribution load centres,” Mbah said.

She also noted that the brief disturbance, however, did not affect the Ibom Gas generating station.

Mbah noted that the station has continued to supply power to areas in the South Southern part of the country.

These areas, according to the TCN GM include Eket, Ekim, Uyo, and Itu 132 kilovolt transmission substations.

October 16, 2024 0 comments
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Business

Dangote Petrol: IPMAN, PETROAN hint on price reduction

by Folarin Kehinde October 15, 2024
written by Folarin Kehinde

Nigeria’s petroleum marketers are upbeat they will sell Premium Motor Spirit (Petrol) cheaper than that of Nigerian National Petroleum Company Limited if Dangote Refinery begins direct sale of petrol to them.

The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike disclosed this in an exclusive interview with daily post on Monday.

Ukadike gave this assurance while giving an update on petroleum marketers’ plans to directly purchase petrol from Dangote Refinery.

This comes days after the Federal Government through the Minister of Finance and Chairman of the Implementation Committee on Naira-for-crude sale to domestic refineries, Wale Edun confirmed that marketers have been cleared to purchase petrol directly from Dangote Refinery.

The development brought to an end the NNPC regime as the sole buyer of Dangote Refinery.

Recall that upon the inaugural distribution of Petrol at Dangote Refinery, NNPC was the sole-offtaker.

However, Edun last Friday, said that part of the implementation of the Naira-for-crude deal with Dangote Refinery was for marketers to lift petrol directly without NNPC as a middleman.

This comes at the back of the latest hike of petrol in NNPCL filling stations to N1,030 per litre in Abuja, while other petrol stations sell at between N1100 and N1,200.

Similarly, NNPCL fixed between N1040 and N1100 as ex-depot prices, that is the rate petrol marketers are expected to buy the product at depots.

Meanwhile, marketers had earlier rejected the ex-depot price by NNPCL.

Nigerian government’s permission to marketers to lift Dangote Petrol became a lifeline outside fuel import.

Reacting, Ukadike on Monday said IPMAN members, who control 70 percent of filling stations nationwide, are awaiting Dangote Refinery to kick off direct petrol sales.

October 15, 2024 0 comments
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Business

Concerns mount as Nigeria’s foreign debt set to hit $50billion

by Folarin Kehinde October 14, 2024
written by Folarin Kehinde

Nigeria’s external debt is projected to approach $50 billion by the end of the third quarter of 2024, as the Debt Management Office (DMO) prepares to release the latest public debt data.

As of March 31, 2024, Nigeria’s total public debt stock stood at N121.67 trillion ($91.46 billion), with domestic debt at N65.65 trillion ($46.29 billion) and external debt at N56.02 trillion ($42.12 billion).

The country’s external debt has grown significantly due to a series of loans from the World Bank and other international lenders.

Notably, Nigeria obtained a $2.25 billion loan in June under the Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) and the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) programs.

Additionally, the World Bank approved another $1.57 billion loan for key sectors, including education, healthcare, and water management, with $70 million being a grant.

The African Development Bank (AfDB) approved $500 million in July for the Economic Governance and Energy Transition Support Program (EGET-SP) to accelerate energy infrastructure transformation, while Nigeria also secured $925 million from Afreximbank in June under the crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).

Nigeria’s rising debt has also led to a significant increase in debt service costs. In the first seven months of 2024, debt service payments rose by 53.63%, from $971.47 million to $2.78 billion.

May saw the highest debt service payment at $854.36 million. Fitch Ratings has projected that Nigeria’s external debt service cost could reach $5.2 billion by 2025.

This growing debt burden risks Nigeria’s financial stability, especially with increasing global interest rates and economic challenges.

October 14, 2024 0 comments
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Business

Nigeria may experience gas supply crisis in 2030 – NUPRC

by Folarin Kehinde October 4, 2024
written by Folarin Kehinde

The Nigerian Upstream Petroleum Regulatory Commission has expressed fear that Nigeria may face a gas supply crisis in 2030.

NUPRC’s Chief Executive, Gbenga Komolafe, stated this during the ongoing energy conference in Lagos.

According to Komolafe, between 2020 and 2030, demand for gas is expected to grow at a compound annual growth rate of 16.6 per cent per annum.

“And Nigeria may face an impending gas supply crisis with a potential shortfall of 3.1 billion cubic feet per day by 2030 in the ‘Base Case Demand and Supply’ scenario,” he stated.

In his special industry address at the conference themed, ‘Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics’, Komolafe maintained that the post-Paris Agreement era had witnessed a growing recognition of the urgency to combat climate change.

Consequently, he noted that more countries and entities are establishing carbon neutrality targets, which in turn have resulted in a global shift towards a more sustainable and low-carbon energy landscape.

This, he said, has also brought about a decline in oil and gas investment as investors and financiers face mounting pressure from various fronts.

Komolafe maintained that the blueprint for various pathways to energy transition aligns perfectly with NUPRC’s national stance on “just transition”.

“The agenda for Nigeria and other resource-rich developing economies is that the evolving energy dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability.

“The new dynamics in the global energy arena necessitate that Nigeria, a country long dependent on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.

“The future we envisage for the petroleum industry should assure for the utilisation of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, affordability, sustainability, security as well as energy independence and energy sovereignty which are the cardinal pillars of the Nigeria Energy Transition Plan,” he stated.

Komolafe recalled that the government had declared natural gas as the immediate transition fuel because it provides a cleaner alternative to oil and coal, emitting significantly fewer greenhouse gases while maintaining the reliability needed to power industries and homes.

October 4, 2024 0 comments
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Business

We’ve Removed VAT On Diesel, Cooking Gas, Tinubu Assures

by Folarin Kehinde October 3, 2024
written by Folarin Kehinde

The Nigerian government has said that it has taken out Value Added Tax on cooking gas, diesel and some other products.

Wale Edun, Nigeria’s minister of finance and the coordinating minister of the economy said this in a statement on Wednesday.

The statement signed by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, said that the Federal Government is planning on incentives that are aimed at revitalising Nigeria’s oil and gas sector.

According to him, these incentives will include VAT modification order 2024 and notice of tax incentives for deep offshore oil and gas production.

He added that this decision is in line with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.

He said: “In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.

“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments,” he added.

October 3, 2024 0 comments
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Business

World Bank approves fresh $1.57bn loan for Nigeria, total dept to hit $17.16 bn

by Folarin Kehinde September 30, 2024
written by Folarin Kehinde

The World Bank says it has approved three new loan requests totalling $1.57bn for Nigeria to support the Federal Government in strengthening human capital through better health for women, children and adolescents.

The new loan will bring the country’s total dept to the Bretton Woods Institution to about $17.16 bn.

At least six loan projects have been approved. They include loans for power ($750m), women empowerment ($500m), girl’s education ($700m), renewable energy ($750m), economic stabilization reforms ($1.5bn) and resource mobilization reforms ($750m).

Data from the external debt stock report of the Debt Management Office shows that Nigeria owes the World Bank a total of $15.59 billion as of March 31, 2024

Meanwhile, a statement by the World Bank said on Monday that the projects for which the new loan was approved, would also help build resilience to the effects of climate change, such as floods and drought, by improving dam safety and irrigation.

“The World Bank has today approved three operations for a total of $1.57bn to support the Government of Nigeria in strengthening human capital through better health for women, children and adolescents and building resilience to the effects of climate change such as floods and droughts through improving dam safety and irrigation,” the statement said.

The international lender stated that this new financing includes $500m for addressing governance issues that constrain the delivery of education and health, $570m for the Primary Healthcare Provision Strengthening Programme and $500m for the Sustainable Power and Irrigation for Nigeria Project.

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support the improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.

The approval, made on September 26, 2024, highlights the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of climate threats.

It also indicates that Nigeria has secured a total of $6.52bn in loans from the World Bank under the administration of President Bola Tinubu amid concerns over the country’s rising external debt servicing costs.

Continuing, the World Bank explained that the HOPE-GOV Program will address underlying governance weaknesses in the systems and procedures of government to substantially reduce maternal and under-five mortality, benefiting 40 million people, especially vulnerable populations.

It said the project to be implemented by the Federal Ministry of Budget and Economic Planning, Federal Ministry of Budget and Economic Planning, Federal Ministry of Health and Social Welfare, and Federal Ministry of Education will receive $500m International Development Association credit and an additional $70m in grant financing from the Global Financing Facility for Women, Children and Adolescents.

“The HOPE-GOV Program will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors. It will particularly focus on critical cross-cutting challenges and enabling factors related to both financial and human resource management in basic education and primary healthcare sectors. The Program will increase the availability and effectiveness of financing for basic education and primary healthcare service delivery, enhance transparency and accountability of financing and improve recruitment, deployment and performance management of basic education teachers and primary healthcare workers by federal, state, and local governments.

“In support of the government’s newly launched reforms in the health sector, under the Health Sector Renewal Investment Initiative, the HOPE-PHC project will improve the quality and utilization of core reproductive, maternal, newborn, child, and adolescent health and nutrition services to substantially reduce maternal and under-five mortality and to improve the resilience of the health system— benefiting 40 million people, especially vulnerable populations.

The project is financed by a concessional $500 million International Development Association credit and an additional $70 million in grant financing from the Global Financing Facility for Women, Children and Adolescents. The GFF support includes $11 million from the UK Foreign, Commonwealth & Development Office and $12.5 million from the Children’s Investment Foundation Fund through joint financing with the GFF to help close the financing gap for primary and community healthcare and maternal newborn care at hospital-level, while also supporting government efforts to ensure sustainable financing for family planning commodities,” The statement explained.

September 30, 2024 0 comments
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Employment scam in MINT: Group petitions CBN, National Assembly, CCB, others: CBN Deputy Governor Emem Usoro; her aide Olakunle Abiola indicted Leading Reporters
Business

BREAKING: Nigeria’s hardship piles up as CBN introduce new policy

by Folarin Kehinde September 24, 2024
written by Folarin Kehinde

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 50 basis points, bringing it from 26.75% to 27.25%.

This decision was reached at the 297th Monetary Policy Committee (MPC) meeting held in Abuja. The move signifies continued tightening of monetary policies as inflationary pressures persist.

CBN Governor, Olayemi Cardoso, disclosed that 11 of the 12 committee members present unanimously supported the rate hike.

“The committee was unanimous in the need to further tighten monetary policy,” Cardoso stated during the briefing.

In addition to the interest rate hike, the MPC opted to retain the asymmetric corridor of +500 and -100 basis points around the MPR. The Cash Reserve Ratio (CRR) was also increased from 45% to 50%.

These measures reflect the CBN’s determination to combat inflation and stabilise Nigeria’s economy, with Cardoso emphasising the importance of remaining vigilant in the face of global economic challenges.

September 24, 2024 0 comments
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Business

Dangote Refinery, Marketers to meet over petrol price reduction

by Folarin Kehinde September 23, 2024
written by Folarin Kehinde

The Independent Petroleum Marketers Association of Nigeria has revealed that its members will be meeting with Dangote Refinery this week over the direct lifting of Premium Motor Spirit(Petrol) and its price reduction.

The Spokesperson of IPMAN, Chief Chinedu Ukadike disclosed this in a recent statement explaining that the members are optimistic about commencing the direct lifting of Dangote Petrol soon.

According to him, adequate distribution of petrol has remained an enigma in the country’s oil and gas sector even after the commencement of Dangote Petrol distribution.

“There is a meeting scheduled for this week between Dangote and IPMAN. We are happy that Dangote has set on a new course in terms of looking to other stakeholders to distribute its products.

”It is now distributing to major marketers and we are hopeful that with time it will start distributing to independent marketers”, he said.

His comment comes as the Nigerian National Petroleum Company Limited retail outlets and other independent filling stations sell Petrol between N950 and N1,100 depending on the location across the country after the lifting of Dangote Fuel.

This comes as the Crude Oil Refiners Association of Nigeria, CORAN urged the Nigerian Government to peg foreign exchange at N1000 per dollar to crash the price of Dangote Refinery’s petrol to below N600 per litre.

September 23, 2024 0 comments
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Business

Fresh electricity tariff hike looms as Nigeria’s monthly power subsidy hits N181.63bn

by Folarin Kehinde September 23, 2024
written by Folarin Kehinde

Another electricity tariff hike may be introduced in October 2024 by the Nigerian Government as the country’s monthly power subsidy rose to N181,63 billion in September.

This comes as the electricity subsidy by the Federal Government rose to N181,63 billion in September from N102.30 billion in May.

In the last three months, the government paid N163.87 billion in July, N173.88bn in August, and N181.63bn in September 2024.

This comes after the Nigerian Electricity Regulatory Commission announced the removal of subsidies in areas categorized as Band A feeders on April 3, 2024.

NERC had revealed that the monthly electricity subsidy at that time stood at N140.7 billion.

Consequently, NERC approved an electricity tariff hike for electricity consumers enjoying at least 20 hours of electricity daily, raising their tariff to N225 per kilowatt-hour.

However, the decision generated serious outcries among Nigerians, including labour unions, educational and health institutions, whose electricity bills tripled following the removal of the subsidy.

In May when the subsidy figure dropped to N102.30 billion, the government slashed the Band A tariff to N206.80/kWh.

NERC said the reason for the reduction was due to a fall in the exchange rate of the Dollar to the Naira.

However, the tariff was jerked to N209/kWh in early July as the subsidy rose again to N158 billion in June.

Accordingly, in the period under review, the NERC put the dollar exchange rate at N1,494.1 in July; 1,564.3 in August; and N1601.5 in September.

As of September, the NERC maintains the benchmark gas-to-power price of $2.42/Million British Thermal Units based on the established benchmark price of gas-to-power by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in line with Section 167 of the Petroleum Industry Act 2021.

This indicates the rising cost of power generation in Nigeria.

The development coupled with the country’s inflation rate which stood at 32.15 percent in August 2024 had fueled speculations that there may be another tariff increase in the October Multi-Year Tariff Order unless the cost of power generation drops.

September 23, 2024 0 comments
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Business

NNPCL announces pump prices nationwide after lifting Dangote Refinery petrol

by Folarin Kehinde September 16, 2024
written by Folarin Kehinde

The Nigerian National Petroleum Company has released a breakdown of estimated prices of Premium Motor Spirit (Petrol) from Dangote Refinery in retail stations across the country based on September 2024 pricing.

The Spokesperson of NNPCL, Olufemi Soneye disclosed this in a statement on Monday.

The company confirmed that it is paying Dangote Refinery in United States Dollars for the September 2024 PMS offtake.

The state-owned company stressed that the Dangote Refinery Petrol gantry was bought at N898.78 per liter.

Consequently, the estimated cost price of petrol in Lagos, plus logistics, will stand at N950.22 per litre.

In other locations like Federal Capital Territory (Abuja), Sokoto, and Kano states, petrol will be sold at estimated prices of N999.22 per litre.

Rivers, Bayelsa, Akwa Ibom, Imo, and other states stood at N980, while Oyo State stood at N960.22.

Lastly, the highest pump price will be in Borno State which stood at N1,019.22 per liter.

“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by the Government, but negotiated directly between parties at an arm’s length.

“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 percent to the general public.

“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing”, he stated.

September 16, 2024 0 comments
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