Emmanuel Addeh in Abuja

After striking a deal with the new Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPC) has begun mobilising trucks to the 650,000 barrels per day facility located in Lagos in preparation for the loading of petrol from the plant.

The Chairman of the Federal Inland Revenue (FIRS) Zacch Adedeji, had earlier told journalists in Abuja that the NNPC will begin loading from the $20 billion refinery on Sunday (tomorrow).

A video seen by THISDAY showed that the national oil company had mobilised hundreds of trucks to the facility, which is expected to refine at least 25 million litres per day of petrol to the local market in the first instance.

A separate media report indicated that about 500 had been sent to the Dangote refinery to enable the NNPC, which is the sole off-taker for now under a naira-for-crude sale deal, begin lifting of the fuel.

The move would enable the product to be distributed to oil marketers at a price that is competitive for the Nigerian market.

Watch video

Emmanuel Addeh in Abuja

The federal government is expected to pay about N180.8 billion as electricity subsidy for power consumers from Bands ‘B’ to ‘E’ that have had their tariffs frozen since December 2022, THISDAY learnt yesterday.

Besides, the Nigerian Electricity Regulatory Commission (NERC) has fined the 11 Distribution Companies (Discos) roughly N8.3 billion for overbilling their customers in recent times, with an instruction for them to compensate the impacted electricity consumers.
These were made known in the September 2024 Supplementary Order of the Multi Year Tariff Order of 2024 released by the Sanusi Garba-led power sector regulator yesterday in Abuja.

A THISDAY review of the orders indicated that Abuja Disco had the highest fine with N1.69 billion, followed by Eko Disco with N1.41 billion, while Ikeja Disco was instructed by NERC to pay N1.41 billion for the infraction.

The other Discos that were impacted by the order were: Jos Disco with N1.338 billion; Port Harcourt Disco was fined N1.16 billion; Benin Disco was fined N804 million;  Enugu Disco will pay N310m; Ibadan Disco will shed N15 million while Kaduna Disco has  N115 million to pay.
Besides,  Yola Disco was fined N54 million and Kano Disco will pay N20 million for the same offence.

The order  which also saw tariffs unchanged for the month of September, was signed by NERC’s Vice Chairman, Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.

According to the sector regulator, the penalty was  a response to the Discos’ non-compliance with previous directives aimed at capping estimated billing for electricity consumers.

The power distributors are also expected to publish explanations on their websites within 24 hours if they fail to provide a committed level of service on Band ‘A’ feeders for two consecutive days.

NERC stated that the Discos shall be held accountable for service deliveries per commitments under its Service Based Tariff (SBT) proposals that seek to align end-user tariffs in proportion to the service level enjoyed by customer clusters as measured in average hours of supply per day over one month.
The commission said it shall continue to leverage technology to directly obtain data on the hours of supply on each Band A feeder from the head-end system for the Discos for near real-time monitoring of service.
Besides, NERC in the order affirmed that Discos shall maintain a rapid response team to ensure effective service delivery on the committed minimum hours of supply to each service Band commencing with Band ‘A’ feeders.
The team, it said, shall continue to ensure timely response to customers’ complaints, fault clearing and alignment with the Transmission Company of Nigeria (TCN) regional teams for effective load management and optimised dispatch to respective feeders.

It further stated that the companies shall maintain the dedicated email and contact numbers of the service rapid response team for each customer cluster/business unit on its website and continue to circulate the same to the customers vide bulk SMS and social media handles.

 They also will be obligated to publish a rolling seven-day average daily hours of supply on each Band A feeder daily on its website no later than 09:00 am of the next day.

Where they fail to deliver on the committed level of service on a Band A feeder for consecutive two days, the Discos shall on the next day by 10.00 am publish on its website an explanation of the reasons for the failure and update the affected customers on the timeline for restoration of service to the committed service level.

In addition, where they fail to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply pursuant to provisions of Section 6 of Order No. NERC/334/2022.

According to NERC, the Discos are also obligated by the order to procure a minimum of 10 per cent of their 2024 load allocation, to improve the reliability of supply and sustain delivery of a minimum service level under the SBT.

On the subsidy issue, NERC approved the payment of N26.4 billion for Abuja customers; N23.76 billion for Ikeja Disco; N22.21 billion for Ibadan Disco; N19.92 billion for Eko Disco and N14.87 billion for Benin Disco this month.

In addition, Enugu Disco will receive N14.61 billion; Port Harcourt will get N13.45 billion; Kaduna gets N13.14 billion; Kano has N12.96 billion; Jos Disco is entitled to a subsidy of N11.68 billion while Yola Disco will get N8.06 billion this September subsidy circle.

“In line with the policy direction of the federal government on electricity subsidy, the allowed tariffs for Bands B-E customer categories shall remain frozen at the rates payable since December 2022 subject to further policy direction by the government,” NERC stated.

*Aliko Dangote agrees to sell fuel in local currency as negotiation progresses*44% of 650,000bpd can satisfy Nigeria’s total fuels’ demand, says DIL VP

*Discloses 98% of petroleum product importers in Nigeria not patronising refinery

*57 shiploads of crude imported so far, NNPC’s supply still hobbled

*Narrates how marketers wrote Tinubu to complain about reduction in diesel price

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

Indications emerged yesterday that the Nigerian National Petroleum Company  Limited (NNPC) and the leadership of the Dangote Refinery may be making progress in their three-week negotiations on in-country fuel supply, with the national oil company now requesting to deploy its permanent monitoring team at the facility as part of the deal between the two entities.

Also, it was learnt that the President of Dangote Group, Aliko Dangote, has now accepted to sell the refined petrol from his 650,000 barrels per day refinery in  Nigeria’s local currency, the Naira, as part of the agreements reached with the NNPC.

Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, disclosed this during an X Space event hosted by ‘Nairametrics’ and monitored by THISDAY.

Edwin, at the session, discussed the progress made by the refinery in the production of Premium Motor Spirit (PMS) commonly known as petrol, stressing that the NNPC had informed the management of Dangote Group of its intention to station a team of six to 10 people permanently at the $20 billion refinery.

Edwin said NNPC told the management of the refinery that the team would be overseeing the production and buying back the products in Naira since the national oil company would be supplying the crude.

He added that the request aligns with the NNPC’s aim to closely monitor the entire process, ensuring consistent crude  supply and efficient processing while securing a steady flow of PMS for the country.

“NNPC has informed us that they intend to station a team of six to 10 people permanently at our refinery. They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.

“This request aligns with the NNPC’s aim to closely monitor the entire process, ensuring that crude is supplied and processed efficiently while securing a steady flow of PMS for the country,” Edwin stated.

Providing further information on the production and commercial arrangements at the refinery, Edwin noted that the discussions with the NNPC revolved around a new model for crude supply where the refinery will buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars.

He noted that the negotiations were ongoing, with critical aspects like crude pricing and the Naira exchange rate yet to be finalised.

“We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalised yet. Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira,” he said.
But Edwin explained that Aliko Dangote had agreed to the federal government’s proposal to sell products from the NNPC to the government in Naira, despite the likelihood of financial losses.

According to Edwin, Dangote highlighted the critical need for foreign exchange and the deteriorating value of the Naira as key factors in his decision to proceed with the deal.

“Dangote intervened and said: ‘’We are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss – because, by the time we sell the product and convert it to dollars, the exchange rate may have worsened.”

Edwin also expressed frustration over the seeming boycott of Dangote Refinery’s products by local marketers, revealing that despite the refinery’s efforts to supply affordable petroleum products, many traders in Nigeria have refused to purchase from the facility, preferring to continue importing refined products from abroad.

He said: “The whole purpose of doing this refinery in Nigeria was to utilise our local crude instead of exporting raw materials and importing finished products. We should be able to refine and use the finished products within Nigeria and produce more to export the surplus.”
But the Dangote Industries Limited (DIL) vice president stated that despite the refinery’s large production capacity, local marketers were only purchasing about 3 per cent of the output.

According to him, the remaining 97 per cent of the refinery’s production, including diesel and jet fuel, was being exported due to a boycott by local traders who refuse to buy at the refinery’s lower prices.

“I’m selling 2 to 3 per cent to small traders who are willing to buy, while the rest 95 to 97 per cent I’m forced to export,” suggesting that some marketers prefer to import for reasons he did not state.

In a bizarre twist to the entire story, Edwin disclosed that oil marketers wrote to President Bola Tinubu, complaining about the refinery’s pricing strategies, especially for reducing the rate Nigerians buy diesel.

He explained: “They wrote to His Excellency, the president, claiming that we are disturbing the market by dropping our prices,” expressing concern over the continuing resistance by the marketers.

According to him, the refinery can produce up to 54 million litres of refined petroleum products per day, depending on crude oil supply, but lamented that local crude supplies had been inconsistent, forcing the refinery to rely on imported crude from countries like the US and Brazil.

Edwin added that the situation was further worsened by International Oil Companies (IOCs) which prefer to prioritise foreign markets and selling crude oil at prices above the market rate.

He disclosed that just 44 per cent production of the refinery was enough to meet Nigeria’s petroleum needs, while the rest could be exported.
“We have invested a lot on training and capacity of the production with the refinery capacity. As I said, 44 per cent of the refinery production can meet 100 per cent of the requirement of the country.

“So the balance 56 per cent of the refinery’s production will have to be exported, whether it is jet fuel, whether it is diesel, whether it is PMS, we have to export 56 per cent of our production because 44 per cent will meet all the requirements of the country.

“So we are not only going to save a lot of foreign exchange by import substitution, but we are also going to generate a lot of foreign exchange by exports. Now, you talked about the transparent mechanism of the pricing. So as I said, NNPC is giving us the crude and they are going to have people sit here to monitor all the production processes, the stocks which are coming out, everything.

“And they are going to agree on the price at which they will sell the crude in Naira and then they are going to collect all the products. So they are going to work through to see how the prices will be. So it is not something where we are trying to exploit somebody,” he maintained.

 According to him, while 2,900 tankers can load every day, he explained that the refinery was currently not even loading 29 tankers per day.

“So, it is very strange that after putting the refinery to supply the products locally, every diesel I am producing, I have to export. Every jet fuel I am producing, I have to export because they do not want to buy from us. So, we are in a very strange situation,” Edwin stressed.

With investment of about $3 billion in fertiliser and $20 billion in the refinery, he explained that unless the business makes some money, it will not be able to invest in upstream.

He disclosed that  he has been an employee of Aliko Dangote for as far back as 33 years, noting that all the money that Africa’s richest man makes goes into further investment to ensure the employment of Nigeria’s teeming population.

“He has not built any other palace or any other house. He is living in the same 35-year-old house. The only thing he can sit is an aluminium sheet shed. Nothing else he has built. And 33 years ago when I joined, he had a house in Atlanta. He was a neighbour to Ted Turner, the then owner of CNN.
“He sold it. He had a house in London. He has sold it. When we were doing the sugar refinery in 1997 to 1999, he sold all those houses and put the money in the sugar refinery.

“All the money we made from our textiles and salt he put it in sugar refining, flour milling, pasta and noodles. Then all the money which we made from that, he started investing in cement.

“Now the money which he has made in cement, he has been investing in oil and gas, fertiliser and refinery. All our businesses are listed companies. So how much profit we are making as a company, how much dividend he is getting,  are all published figures. So you can see all the money where it is going,” he added.

*With bilateral contracting regime, regulator says parties to bear own risks

Emmanuel Addeh in Abuja

The Nigerian Bulk Electricity Trading Plc (NBET) yesterday attended a public hearing organised for it by the Nigerian Electricity Regulatory Commission (NERC), where it sought to convince the power sector regulator on why it deserved to be given a renewal of its operating licence which expires November 21 this year.

At the event which held at the NERC headquarters in Abuja, the organisation told the NERC commissioners that over the years it had achieved the milestone of trading in excess of $2 billion every year.

NBET was set up by the federal government to act as a link between the Generation Companies (Gencos) and Distribution Companies (Discos) through Power Purchase Agreement (PPA) and Vesting Contracts.

To this extent, NBET ensures that Gencos are paid through the prime source of revenue which is the payment receipts from the Discos for energy sales through vesting contracts. Essentially, it is the manager and administrator of the power pool.

Managing Director and Chief Executive of NBET, Johnson Akinnawo, who was grilled by the NERC officials at the event attended by representatives of Gencos, Discos, Transmission Company of Nigeria (TCN), experts, consumers, among others, stressed that in addition, NBET incentivised greenfield power generation investment of close to $1 billion in the industry.

“The Bureau of Public Enterprises and Ministry of Finance Incorporated are NBET’s shareholders with 80 per cent and 20 per cent stakes respectively. NBET was incorporated on July 29, 2010 and it commenced trading in the Nigerian Electricity Supply Industry (NESI) in February 2015, which marked the start of the Transitional Electricity Market (TEM).

“It has transparently administered a contracts portfolio with an annual trading volume in excess of $2 billion. It has made considerable progress in the quest to achieve its mission of being an effective and efficient catalyst for private sector investment into the electricity industry in Nigeria’,  the NBET chief executive stated.

Akinnawo stressed that the execution of power purchase agreements and vesting contracts paved the way for the privatisation involving about $2.5 billion  investment in Gencos and DisCos respectively.

According to him, the vision of the organisation is the attainment of a self-sustaining electricity market driven by market forces, where public funding will no longer be a key driver of investments and transactions.

But before that level is attained, Akinnawo argued that the NBET still has a critical role to play and therefore requested that the current operating licence should be renewed for another half a decade.

While acknowledging the recent order on bilateral contracting in the sector, NBET stated that it would require a payment plan and commitments from all Discos prior to the operationalisation and commencement of the new contracting order by NERC.

“NBET requires this firm payment commitment on the invoices issued to Discos for it to honour its contractual payments to Gencos. Discos will be required to settle the historic non-tariff shortfall portion of the market obligations while the FGN will be taking responsibility for the tariff shortfall portion.
“Within the five-year trading licence period, NBET will transform into an energy exchange with the following key objectives.

“To promote bilateral trading between Gencos/Independent Power Producers (IPPs) and commercial/industrial customers through an automated energy trading platform/exchange developed and deployed for the sale of electricity, with multiple energy brokers playing a key role in linking energy suppliers and customers registered on the platform.

“It will enhance the rapid growth of the market, create a diversified trading environment, play a key role in closing the supply-demand gap for electricity in the country and catalyse a self-sustaining electricity market where public funding and guarantees will cease to be the key drivers of investments and transactions,” the MD said.

Earlier, NERC’s Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, who headed the panel, supported by Nathan Shatti, NERC’s Commissioner, Finance and Management Services as well as Chidi Ike, Commissioner, Engineering, Performance and Monitoring, noted that the meeting was called to discuss NBET’s application for the renewal of its licence.

He stated that NBET was established further to the old legislation that governed the power sector as a special trader and as a traditional institution to balance the sector at that point.

Akpeneye pointed out that NBET had an initial run of 10 years which expired in 2021, wherein they were issued another renewal that expires in November of this year.

“The commission doesn’t believe that we know it all, we are not seven wise men, and we think that in view of how the industry is changing and evolving, it’s important that we get critical stakeholders’ input into the consideration of the NBET’s request for the renewal of their licence,” he explained.

However, he argued that a lot of things that NBET was designed to do, could not be done through no fault of theirs,  admitting that since the last renewal that was issued to NBET, the sector had changed.

“I don’t think there’s been more changes in our sector than has happened in the past one year or so. The legal framework has changed. The constitution has been amended to fully allow sub-nationals unfettered access to be full players and regulators in the sector.

“The legal framework upon which we regulate the sector has also changed. We now have the Electricity Act. Certain regulatory initiatives taken by the commission, in view of current economic situations, also changed as well.

“We are moving to financial contracting. We now have cost-reflective tariffs for a certain band of customers. And with that as well, we can see that there’s been vast improvement in supply.

“The next move now is to move to bilateral contracting, whereby the excuse of government is not standing in our way, or government will no longer be there. If mainstream enters into a contract with a utility, those are two private parties, and they will bear the full consequences of the terms of their commercial transactions”

“No one is going to run to the House Committee on Power or the Senate Committee on Power or to the Villa and say, ‘put pressure or intervene’. It’s a transaction between two private parties, and their performance will be held by the terms of the contract,” he stressed.

Emmanuel Addeh in Abuja

The United States would support two permanent seats for African states on the UN Security Council, Linda Thomas-Greenfield, the American ambassador to the United Nations, said yesterday.

The announcement, which echoes a similar call from the UN Secretary General António Guterres to overhaul the Council so it would reflect the world powers of 21st century, comes ahead of the UN General Assembly later this month, the New York Times reported.

The Security Council has 15 members, five of which have permanent seats with veto power: the United States, Russia, China, Britain and France. The other 10 members of the Council rotate every two years.

Adding any new permanent members would require the approval of all five permanent members and changing the UN charter, a dim prospect given the divisions among the permanent members, the report said.

Adding only African countries as permanent members would likely get pushback from other countries, including Japan, Brazil, India, Germany and Italy. For years, those nations have also lobbied for seats, arguing that the world had evolved since the aftermath of World War II when the world body was founded.

For several years, Nigeria has been asking to be considered for  a permanent seat at the UN, flaunting its several contributions to global peace, especially to the UN peace keeping mission across the globe as well as  to peace and security in Africa.

Thomas-Greenfield’s announcement could be viewed as a geopolitical gesture toward repairing US relations with Africa, which have been frayed by the conflicts in Ukraine and the Gaza Strip, and toward matching Chinese and Russian influence there.
The two US rivals, which have been keen on expanding their influence on the continent, have already backed permanent seats for Africa on the Security Council.

Ms. Thomas-Greenfield may also be considering her legacy at the United Nations as her term possibly draws to an end, with the American election looming in November and the likelihood that a new administration would appoint a new ambassador. During her tenure, she has made Africa a priority of her diplomacy, frequently traveling to the continent.

“The problem is, these non-permanent seats don’t enable African countries to deliver the full benefit of their knowledge and voices to the work of the Council,” Ms. Thomas-Greenfield said during a meeting at the Council on Foreign Relations, a think-tank in New York City.
The Council is tasked with maintaining peace and stability, preventing and mediating conflicts and approving UN peacekeeping missions, and it has the power to impose sanctions.

African countries have long pushed for permanent seats on the Council, arguing that the size of the population living on the continent, as well as its economy and its pressing issues, should be represented permanently at the world body. Nations from Asia, Europe and Latin America have made similar campaigns.

Africa is one of the largest voting blocs in the UN, with 53 member states. The majority of UN peacekeeping missions are in Africa, and thousands of Africans serve in these missions.

But Thomas-Greenfield said the US would support the expansion of the Security Council’s permanent membership to include not only African members, but also a rotating seat for small island states.

Her announcement, however, came with a significant catch: The White House did not back providing new permanent members with the same veto power to block resolutions that the current five permanent members have.

The issue of veto has been a thorny one because diplomats have argued that without veto power, the Council would be creating a two-tier system, with new members only symbolically present but lacking the impact or power of other five members. At the same time, adding new veto powers would make the work of the Council even more difficult, analysts say.

The United States has also previously expressed support for adding permanent seats for Japan and Germany, two close allies.

Her announcement follows a Council debate last month initiated by Sierra Leone, an African country which has hosted one of the longest-running U.N. missions but has not had a voice on the Council in decades.

“Nearly 80 years after its creation, the Council has been stuck in time,” President Julius Maada Bio of Sierra Leone told its members.

Emmanuel Addeh in Abuja

Donnington Nigeria Ltd and its foreign partners have given notice to the federal government of their intention to drag the country into international arbitration over issues surrounding Cargo and Crude Oil Tracking and Notification (ACD/CTN) scheme.

Recall that the government had recently been engaged in a legal debacle that led to a Chinese firm seizing properties belonging to Nigeria abroad in pursuit of a court judgement, including presidential jets and real estate properties in Liverpool, United Kingdom.

In the current case, Gary Summers of Gray’s Inn, London-based solicitor to Donnington Nigeria Limited (DNL), Donnington International AG, Vortexra UK, and DP World UAE, has written to the Attorney-General and Minister of Justice, Chief Lateef Fagbemi (SAN) over what he described as “the recent publicised appointment of a new consultant by the federal government for the ACD/CTN scheme, which we believe disregards ongoing legal proceedings and raises serious issues of transparency and due process.”

The award, the firm argued, was made while Donnington and the  government are in court over the same matter.

Donnington and its international partner and specialists insist it has suffered substantial financial harm after some top officials in the former President Muhammadu Buhari administration allegedly used proxies to divert the CTN scheme to themselves.

It stated that this was despite a presidential executive order that had snapped on a greenlight to Donnington Ltd which said it went through a stringent procurement process in accordance with the Public Procurement Act 2007 with numerous government ministries.

According to the company, it was successfully endorsed by the Ministries, the Customs service and the Minister of Justice, to implement the scheme that would have generated billions of Naira for Nigeria.

This alleged abuse of office and breach of fiduciary position, it said, left the country bleeding because, according to a report, over $4.9 billion had been lost annually due to the inability of the scheme to be implemented as planned – because of the legal battle the CTN contract had elicited.
In suits FHC/ABJ/CS/1483/2022 and FHC/ABJ/CS/2351/2022 against the federal government and others, Donnington is seeking declaratory reliefs and an order of injunction to halt the alleged unlawful re-award of the ACD/CTN Scheme.

In pursuance of the successful procurement process and appointment, it stated that it had committed both financial and human resources to the realisation of the CTN scheme.

According to the Donnington solicitor with a “historical unfinished procurement process” awarding the ACD/CTN scheme to a new consultant, P-LYNE Nigeria Limited, despite subsisting court orders and cases, apart from not being standard practice is also null and void, and against the rule of law.

Donnington said the appointment of P-LYNE as the new consultant, raises “concerns about conflicts of interest, the lack of due diligence, due process, transparency, and the appointments not being in the best interests of the people of Nigeria”.

The company said in the letter to the AGF: “It has come to our attention that despite the ongoing high court case involving Donnington Nigeria Limited (DNL), the Petroleum Upstream department within the Federal Ministry of Petroleum Resources (FMoPR) has moved forward with approval for the FGN appointing P-LYNE Nigeria Ltd, a subsidiary of the Sahara Energy Group, as the consultant for the ACD/CTN scheme, in total disregard for the court order of the ongoing cases at the High Court referenced earlier in this document.”

Donnington further stated: “This decision, made in the absence of thorough due diligence and amidst legal actions, not only undermines the judicial process but also poses a significant risk to the integrity of the ACD/CTN scheme itself.

 “It is extremely concerning that this appointment was made in such a hurried way, disregarding the ongoing procurement procedure and the legal issues raised by Donnington Nigeria Limited and being heard within the High Court of Nigeria.”

“The award of the ACD/CTN contract to P-LYNE Nigeria Ltd, a company with clear ties to Sahara Energy Group—a major player in crude oil trading—raises significant concerns about conflicts of interest.

It argued that the it is like a case of putting a goat in charge of a warehouse full of yams.

“A company involved in crude oil trading nationally and internationally, should not be entrusted with the responsibility of tracking crude oil, as this could compromise the objectivity and effectiveness of the ACD/CTN scheme,”  it noted.

It said that it therefore should be concerning to the Nigerian people that awarding the ACD/CTN contract to an oil trading, shipping, and processing organisation may pose a risk of overlooking or failing to report discrepancies in crude oil transactions, especially if they are self-serving.

Donnington said it was concerned by the “speed and lack of transparency in the processes that led to the recent announcement of the appointment of P-LYNE Nig Ltd and P-Lyne Energy Ltd to execute a part of an already awarded contract which is being contested in the High Courts of Nigeria.

It stated that more worrisome to the company was the fact that the government awarded a payment of $21million (which is understood to be a mobilisation fee) to P-LYNE when its arrangement with the government and approved by the Ministry of Finance was at no cost to the federal government.

 “It was expected that Donnington Nigeria Limited would implement the International Cargo Tracking Scheme (ICTN), including crude oil exports in Nigeria for the contracted period on a ‘No cure, No Pay Basis’, with an agreed revenue sharing ratio accruable to the federal government.

The company advised the AGF in the letter that the $21 million being paid to the P-LYNE Nigeria Ltd when they are on a revenue sharing ratio, “is not in the favour of the Nigerian people.”

 Summers warned that the company was in the final process of filing the Request for Arbitration proceedings against the Nigeria in accordance with The Convention on the Settlement of Investment Disputes Between States and Nationals of Other States and Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings.

“The claims relate to breaches of the bilateral investment treaties (BITS), with its investors and partner, under the jurisdictions of the United Kingdom and Switzerland, to which the FRN is a party,”  he said.

He also informed Fagbemi that the company and its technical partners had appointed a highly reputed international specialist investigatory team which continue a review into the  contract award of the cargo and crude oil tracking note scheme.

“The investigatory team is being led by Tarique Ghaffur, a former Assistant Commissioner of London’s Metropolitan Police, head of Scotland Yard’s Specialist Crime Directorate.

“As the head of an international security consultancy, together with his team of public corruption and economic crime experts, which includes investigatory support by Kroll Inc. based in the United Kingdom, Summer noted “the intent is to further widen the pre-investigation to cover the new appointment of P-LYNE Nigeria Ltd..”

Summers urged the AGF to intervene in the matter and promptly act so as to safeguard “the integrity of the ACD/CTN scheme and protect the interests of the Nigerian people.”

Emmanuel Addeh in Abuja

The federal government has constructed the section recently cut off by flood in the Sabon-Gari axis of Section 2 of the Kano-Maiduguri road, Bauchi State, the ministry of works said yesterday.

“Not long ago, the federal ministry of works received an alarming report on the heavy flooding that damaged the Sabon Gari axis of Section 2 Kano-Maiduguri road of Bauchi State.

“The Honourable Minister of Works swung into action to bring relief to the people whose livelihood was adversely affected by the devastating flood,” a statement by Uchenna Orji, the spokesman to the Minister of Works, David Umahi, said.
This flood disaster which it said was occasioned by climate change, it said,  was going to cause monumental hardship to the people of the affected area and indeed all the users of the road.
But Umahi said President Bola Tinubu, brought immediate and prompt intervention and directed him, with the minister visiting the area on  August 15, 2024.
The statement stressed that Umahi initiated emergency response processes and permanent solution measures towards sorting out the critical situation of the road.
“Today, the life-threatening problems faced by the people on account of the destroyed road has been solved as the federal ministry of works has fixed the road.

“It has further opened it for use on emergency basis pending when final and permanent construction work is completely executed. The road was on September 12, 2024 opened for use,” the statement added. 

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said that a news report indicating that it had given the nod to the divestment deal between Shell and the Renaissance Consortium was baseless.

In a statement signed by the Head, Public Affairs and Corporate Communication of the NUPRC, Mrs Olaide Shonola, the upstream regulator urged stakeholders and the general public to ignore the report by the newspaper.

According to the report titled: “Boon for Nigeria as Shell’s $1.3bn Assets Sale Gets Regulatory Nod”, the NUPRC had endorsed the deal and is now awaiting the final ministerial consent by President Bola Tinubu, who doubles as the Minister of Petroleum.

“The attention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been drawn to a publication in the Businessday of September 11, 2024, purporting that the commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

“It must be firmly stated that the information contained in the publication did not emanate from the commission. As part of the commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time,” the statement stressed.

THISDAY reports that by purchasing all the shares in SPDC, Renaissance will on completion of the deal, control SPDC’s 30 per cent stake in the SPDC Joint Venture (JV), which consists of 15 oil mining leases for petroleum operations onshore and three leases for petroleum operations in shallow water in Nigeria.

“Industry stakeholders and the general public are advised to disregard the publication as it is baseless,” the statement by the NUPRC added.

On January 16, 2024, Shell announced an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance – a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group. 

The divestment of SPDC, the company said, aligned with Shell’s previously announced intent to exit onshore oil production in the Niger Delta and to focus future investment in Nigeria on our Deepwater and Integrated Gas positions.

Shell said it intends to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy and where Shell has differentiated capability.

Renaissance is a consortium of five companies comprising four exploration and production companies based in Nigeria – ND Western, Aradel Energy, First E&P, Waltersmith – and the international energy group Petrolin.

The consortium, Shell said, brings significant experience in oil and gas exploration and production operations in Africa, including in the specific context of the Niger Delta where the four Nigeria-based partners all currently operate fields and associated assets and infrastructure.

•Dangiwa says more than 90% of land in Nigeria unregistered

Emmanuel Addeh in Abuja

The Ministry of Housing and Urban Development and the World Bank Group yesterday resolved to work together towards addressing the 90 per cent of land in Nigeria that is unregistered and untitled.

The move, the ministry said, is aimed at making the nation’s vast land assets more economically viable and unlocking the over $300 billion in dead capital tied up in such undocumented land.

This was the outcome of a visit on the Minister of Housing and Urban Development,  Ahmed Dangiwa by a delegation of the World Bank led by its Vice President (Infrastructure), Guangzhe Chen in Abuja.

One of the areas of the collaboration agreed on during the meeting, according to a statement, was  the National Land Registration and Titling Programme in partnership with the state governments.

“This is very important to our government as over 90 per cent of land in our country is unregistered and untitled. Experts estimate a dead capital of over $300 billion.

“Through this initiative that we plan to implement with the World Bank, we aim to, amongst other objectives, register, document and title all land parcels within five years; develop and launch a National Digital Land Information System (NDLIS) and define a framework that makes it accessible to all stakeholders.

“We will further increase the formalisation of land transactions from less than 10 per cent to over 50 per cent in the next 10 years and train and deploy technically competent land registration officers nationwide,” he said.

The minister added that land registration and titling will open up sources of revenue for the states which can boost their income through ground rent, Certificates of Occupancy, and taxes accruing from increased investments in real estate.

He further said that such funds can be used to provide urban services in the states which can help minimise the effect of climate change across cities in Nigeria.

He added: “We have examples from states which have implemented proper land registration systems using Geographic Information Systems (GIS). Kaduna and Nasarawa are two good examples. These states have not only been able to significantly improve land registrations, but have also generated huge revenues in the process,”

Addressing the issue of Urban Liveability, which he said is another area of common interest, Dangiwa noted that implementation of the approved National Urban Development Policy was a key priority of the administration of President Bola Tinubu.

“We have to create the necessary frameworks towards an effective, impactful and sustainable implementation towards improving the management of our urban areas and improving service delivery, saying that the World Bank’s Technical Capacity in the area will be highly needed.

“The third focus area is the development of a framework towards addressing the systemic barriers along the housing value chain. Doing this will help us to enhance private, affordable housing investments,” he added.

Citing the recent flooding in Maiduguri which left more than 200,000 people displaced, the minister said the need to invest in urban resilience had become more evident in recent times following rapid climate change and the susceptibility of many Nigerian urban centres to its impact.

Speaking earlier, the World Bank Vice President of Infrastructure,  Chen, said the purpose of the visit was to identify areas of common interests which they can prioritise in their collaboration with the ministry.

He disclosed that the Bank was open to supporting Nigeria on land administration, affordable housing, sustainable financing mechanisms, addressing the impact of climate change on the urban sector, and engaging in urban land management towards the attainment of liveable cities, digitisation, among others

“We have developed some models and worked with some countries in West and Central Africa on urban liveability and resilience, and these models can be reviewed and replicated in Nigeria,” he said.

 He added that the World Bank was open to providing financing and technical support to the ministry to help the government achieve its housing and urban agenda.

Also on the delegation was the Country Director of the World Bank, Ndiame Diop, who gave the assurance that the priorities outlined will be looked at by both teams, fine-tuned, and developed into comprehensive programmes.

In his closing remarks, the Permanent Secretary of the Ministry, Dr. Marcus Ogunbiyi, solicited for support from the World Bank in the area of capacity building.

Emmanuel Addeh in Abuja

The Institute of Appraisers and Cost Engineers (IACE) has held its National Technical Conference in Abuja, with a directive to members to uphold the ethics of the critical segment of the engineering profession.

Speaking at the event, Chairman of the organisation, Ike Iwenofu, stated that the institute has the mandate to promote the practice of engineering valuation, cost engineering and engineering economy in Nigeria.

Over the years, he stated that quackery, professional misconduct and unethical practices, among others, had been the bane of the group’s activities as professionals.

The theme of the Conference: “Sustainability and Ethical Practices in Appraisal, Cost Engineering and Engineering Economy,” he said, was therefore apt as the organisation seeks to address the challenging issues of professional integrity and conduct, responsibility and accountability.

According to Iwenofu, ethical practices, quality assurance, collaboration and communication with stakeholders among members of the profession must be assured by the IACE.

“We shall explore all avenues to promote ethical, professional conduct, competence and dignity in our operations.

“ As an institute, we have continued to engage our members through capacity building, networking opportunities, strategic partnerships to foster collaboration with international and local organisations aimed at expanding our reach and impact in strict compliance with relevant laws, regulations and standards, leveraging emerging technologies to enhance our efficiency and capacity to remain relevant and competitive in a dynamic environment,” he said.

He requested members to conform to ethical standards and professional conduct expected of the group, as erring members shall be disciplined accordingly.

“In furtherance to this development, we have forwarded memoranda to Nigerian Society of Engineers (NSE) and Council for the Regulation of Engineering in Nigeria (COREN) on the need to harness the potentials of engineers in valuation practice.

“The institute shall soon embark on massive advocacy, seminars, partnerships and collaborations, awareness and sensitisation etc. to actualise this promising career path for engineers,” the IACE added.

The Chairman of the occasion was NSE President, Margaret Oguntala, while the guest speaker was  Dr. Wilson Alli.

In a separate communiqué, the conference reaffirmed that valuation is a multi-disciplinary activity and recognised the three main classes of assets usually encountered in valuation.

He named them as: Real estate, property, plant and equipment and business and emphasised that property, plant and equipment remains the main thrust of engineering valuation.

Engineering valuation, it said, entails knowledge of fundamental principles of valuation, costs, service lives and operating characteristics of the components that make up industrial and infrastructural properties.

The conference stressed that the goal of engineering valuation is to deliver a well supported opinion of value that shows that the appraiser has considered all factors materially affecting the assets being appraised.

“The conference emphasised that sustainability and ethical practices are crucial in appraisal, cost engineering, and the engineering economy in Nigeria. These principles ensure that projects are executed with integrity, social responsibility, and environmental stewardship,” the institute stated.

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Wednesday said that a news report indicating that it had given the nod to the divestment deal between Shell and the Renaissance Consortium was baseless.

In a statement signed by the Head, Public Affairs and Corporate Communication of the NUPRC, Mrs Olaide Shonola, the upstream regulator urged stakeholders and the general public to ignore the report by the newspaper.

According to the report titled: “Re-Boon for Nigeria as Shell’s $1.3bn Assets Sale Gets Regulatory Nod”, the NUPRC had endorsed the deal and is now awaiting the final ministerial consent by President Bola Tinubu, who doubles as the Minister of Petroleum.

“The attention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been drawn to a publication in the Businessday of September 11, 2024, purporting that the commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

“It must be firmly stated that the information contained in the publication did not emanate from the commission. As part of the commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.

“Industry stakeholders and the general public are advised to disregard the publication as it is baseless,” the statement added.

Emmanuel Addeh in Abuja

Sparring on politics and personality, US Vice President Kamala Harris and ex-President Donald Trump showcased their starkly different visions for the country as they met for the first time last night .

It was perhaps their only debate before November’s presidential election, a high-pressure opportunity for the candidates after a tumultuous campaign summer, Associated Press reported.

The matchup offered Americans their most detailed look at a campaign that’s dramatically changed since the last debate in June which forced President Joe Biden from the race.

The Democratic vice president immediately moved to press the case against the former Republican president and his bombastic rhetoric, linking him to the conservative Project 2025 blueprint for a Republican administration and GOP efforts to restrict abortion access.

Trump in turn tried to link Harris to Biden, questioning why she hadn’t acted on her proposed ideas while serving as vice president, and focused his attacks on Harris over her assignment by Biden to deal with the root causes of illegal migration.

As the former president made a series of false claims about migrants, Harris seemed to smirk as he said that migrants are “taking jobs that are occupied right now by African Americans and Hispanics.”

“Talk about extreme,” Harris responded, when Trump repeated unsubstantiated claims that immigrants in Ohio are eating their neighbours’ dogs and cats.

The candidates met in a small, blue-lit amphitheatre converted into a television studio, with no live audience, meaning there was no rowdy applause, cheers or jeers. The intimate setting — with the candidates’ lecterns positioned less than 10 feet from each other — belied the contentious debate to follow.

Harris repeatedly shook her head derisively as Trump spoke, occasionally staring at him with a hand on her chin, while Trump seemed to avoid looking toward the Democrat. Trump hewed closely to his rally talking points and familiar attacks.

As Harris seemed to try to interject during one of his responses, Trump replied, “I’m talking now, sound familiar?” harkening back to a moment when shut down an interruption from then-Vice President Mike Pence.

Harris sharply criticised Trump for the state of the economy and democracy when he left office, as the COVID-19 pandemic ravaged the nation and after his supporters stormed the Capitol on January 6, 2021, in a bid to overturn the 2020 presidential election.

“What we have done is clean up Donald Trump’s mess,” Harris said. She opened her answer by saying she expects voters to hear “a bunch of lies, grievances and name calling” from her GOP opponent during their 90-minute debate.

Trump, meanwhile, quickly went after Harris for abandoning some of her past liberal positions and said: “She’s going to my philosophy now. In fact, I was going to send her a MAGA hat.” Harris smiled broadly and laughed.

Harris has sought to defend her shifts away from liberal causes to more moderate stances on fracking, expanding Medicare for all and mandatory gun buyback programs — and even backing away from her position that plastic straws should be banned — as pragmatism, insisting that her “values remain the same.”

As the debate opened, Harris walked up to Trump’s lectern to introduce herself, marking the first time the two had ever met. “Kamala Harris,” she said, extending her hand to Trump, who received it in a handshake — the first presidential debate handshake since the 2016 campaign.

Harris, in zeroing in on one of Trump’s biggest electoral vulnerabilities, laid the end of national abortion rights at Trump’s feet for his role in appointing three US Supreme Court justices who overturned Roe v. Wade, leaving more than 20 states in the country with what she called “Trump abortion bans.”

Harris gave one of her most impassioned answers as she described the ways women have been denied abortion care and other emergency care and said Trump would assign a national abortion ban if he wins.

Trump declared it “a lie,” and said, “I’m not signing a ban and there’s no reason to sign a ban.” The Republican has said he wants the issue left to the states.

Harris used a question about her plans to improve the economy by saying she would extend the tax cut for families with children and a tax deduction for small businesses while attacking Trump’s plans to impose broad tariffs as a “sales tax” on goods that the American people will ultimately pay.

Trump was stone-faced during her answer but retorted: “I have no sales tax. That’s an incorrect statement. She knows that.”

Trump continued to call Harris a “Marxist,” and said “Everyone knows she’s a Marxist.” Harris’ eyebrows shot up and she made an amused face, cupping her hand on her chin and stared at him.

Trump, in turn, tried to paint the vice president as an out-of-touch liberal while trying to win over voters sceptical he should return to the White House.

Trump, 78, struggled to adapt to Harris, 59, who is the first woman, Black person and person of South Asian descent to serve as vice president. The Republican former president  at times resorted to invoking racial and gender stereotypes, frustrating allies who want Trump to focus instead on policy differences with Harris.

Harris hit Trump on one of his biggest sources of pride, his freewheeling campaign rallies. Harris noted how at the events, Trump, as he meanders through subjects, will sometimes muse on “fictional characters like Hannibal Lecter” and whether “windmills cause cancer,” and then said that if you watch his events “you will also notice that people start leaving his rallies early out of exhaustion and boredom.”

“The one thing you will not hear him talk about is you. Your needs, your dreams and your desires.”

Trump tried to use his next question to respond by accusing Harris of having no one attending her rallies except the people that he claimed, without evidence, that she has bused in and paid to be there.

“She can’t talk about that. People don’t leave my rallies. We have the biggest rallies, the most incredible rallies in the history of politics,” he said.

In rapid fashion after the June 27 debate between Trump and Biden, the incumbent bowed out of the race after his disastrous performance, Trump survived an assassination attempt and both sides chose their running mates.

The debate subjected Harris, who has sat for only a single formal interview in the past six weeks, to a rare moment of sustained questioning.

The first early ballots of the presidential race will go out just hours after the debate, hosted by ABC News. Absentee ballots are set to be sent out beginning Wednesday in Alabama.

Emmanuel Addeh in Abuja

The federal government yesterday announced that the take-off of the Brass Fertiliser Petrochemical Company Limited (BFPCL) was at its final stages, stressing that a $3.3 billion deal for an industrial park on the facility located in Bayelsa, had been reached.

Describing it as a significant breakthrough for the company, a statement by Louis Ibah, spokesman to the Minister of State (Gas), Ekperikpe Ekpo, said the long-awaited Gas Sales and Purchase Agreement (GSPA) with its gas supplier, the NNPC/SPDC Joint Venture (JV) was nearing conclusion.

According to the release, this has now paved the way for the project’s financial close and commencement of the execution phase.

After years of delays, the GSPA, the government said, is expected to be finalised before September 30, 2024, marking a major milestone in the project’s journey and setting the stage for a significant boost to Nigeria’s petrochemical industry.

This is as BFPCL and China Road and Bridge Corporation (CRBC) have executed Project Agreements for the $3.3billion Brass Industrial Park, methanol plant and gas gathering pipelines with associated facilities.

 It also signed a Shipping Vessels Acquisition and Joint Venture Agreement for 16 new 50,000MT methanol powered shipping vessels with COSCO Shipping Lines Co Ltd.

The framework agreement with COSCO, the statement from the ministry said, will see the construction of 16 vessels, valued at about $900 million, dedicated for the evacuation and transportation of methanol and other products from the Brass methanol plant to various global destinations.

It noted that COSCO is one of the largest shipping companies in the world.

Ekpo was quoted by the statement as having disclosed this on Tuesday while further announcing that Bohai Chemical Industries Group (BCIG) and China Africa Development Fund (CADFund) in collaboration with their Joint Venture (JV) partners have expressed their commitment to jointly invest in the Brass Methanol Project and facilitate immediately commencement of construction works.

Ekpo said thee significant gains were courtesy of BFPCL’s strategic engagements with Chinese investors during the recent state visit of President Bola Ahmed Tinubu to China, which he participated in.

“During the visit, I held fruitful discussions with key stakeholders, including BCIG and CADFund, which have now expressed commitment to invest in the $3.3 billion Brass Methanol Project in Bayelsa State,” said Ekpo.

“On this same project, I also want to state that we have expedited the completion of the GSPA between BFPCL and Shell Petroleum Development Company (SPDC) Limited Joint Venture, a major breakthrough that paves the way for the project’s financial close and execution phase,” he added.

With the GSPA expected to be finalised before September 30, 2024, and financial close achieved before December 31, 2024, the minister’s visit to China, the statement said, has set the stage for a significant boost to Nigeria’s petrochemical industry, demonstrating the government’s commitment to attracting investments and driving economic growth.

Ekpo also provided assurances to the Chinese investors regarding the protection and security of their investments, while also appealing to Nigerians to remain patient and confident in the government’s strategic initiatives aimed at revitalizing the economy, driving job creation, and unlocking long-term prosperity.

According to him, President Bola Tinubu has made it clear that investors’ interests are paramount, ensuring that their investments are safeguarded and guaranteed.

“Investors can enter and exit the market with confidence, knowing that their investments are protected and their rights respected. This commitment underscores our administration’s focus on job creation, economic growth, and sustainable development,” Ekpo said.

Yhe statement added that BCIG is a leading petrochemicals in the zero-carbon era, committed to building a new generation of neutral, open, and inclusive global information technology infrastructure platforms.

CADFund, on the other hand, is China’s first equity fund focusing on investment in Africa, aiming at boosting Africa’s industrialisation process and enhancing the continent’s sustainable development capacity through investment.

•Dangiwa advocates adoption of green, climate-smart housing

Emmanuel Addeh in Abuja

Minister of Housing and Urban Development, Ahmed Dangiwa, decried the recent building collapse in Noman’s Land Quarters in Kano and ordered a full scale investigation into the incident.

A two-storey building in Fagge Local Government Area of Kano State was reported to have collapsed and trapped many people inside.

A report by the National Emergency Management Agency (NEMA) revealed that two bodies were recovered from the rubbles, while two persons were taken to the hospital for treatment.

Dangiwa, in a statement in Abuja, directed the relevant officials to quickly investigate the Kano collapse, stressing that the government will take decisive action after the submission of the findings.

The minister, who lamented the recurrence of building collapses in the country, emphasised the need for an overhaul of the system and full implementation of building codes and regulations.

He described the Kano collapse incident as another sad development exposing the rot in the building industry over the years, which, if unchecked, will remain catastrophic to the industry and society.

Dangiwa called on state governments to rise to the challenge and the relevant agencies to swing into action to pre-empt anything capable of causing a building collapse.

The minister recalled the last Jos school building collapse and stated that the federal government was committed to getting to the root of the matter and prosecuting anyone found culpable.

He stated, “I have received the report of the Jos collapse investigation and a checklist of all professionals involved in the construction is being compiled for us to take action.”

Dangiwa assured that government will do what was needed to deter others from putting Nigerians at risk with their reckless and unprofessional activities. He stated that the ministry was working on a robust regulation mechanism with relevant stakeholders in the industry to enforce building codes across the country, in close collaboration with the states.

“I implore the state governments, who are closer to the people and directly supervising the land, to wake up and be more effective in checking the excesses of quacks in the building construction industry,” the minister stated.

He explained that relevant agencies should ensure due diligence was observed in the issuance of building permit and find out if all approvals were given for all categories of building.

Dangiwa also made a case for the adoption of green, sustainable, and climate smart housing designs and technologies in the country’s housing industry, and charged professionals in the sector to be innovative and ingenious.

Speaking at the 2024 Archibuilt Exposition organised by the Nigerian Institute of Architects (NIA), yesterday in Abuja, the minister urged the institute and other professionals to find alternative and sustainable solutions to the housing needs in Nigeria.

He stated, “We have seen transformative ideas presented at previous expositions, from using sustainable building materials to energy-efficient designs, water conservation techniques, and zero-emission construction technologies.

“The ongoing conversations will shape the future of construction in Nigeria and resonate globally. Innovation, built on technology and equitable resource utilisation models, is what we need.”

The minister highlighted the critical role of architects in achieving the SDG -11, which calls for sustainable cities and communities, stating that architects hold the power to design urban spaces that are inclusive, resilient, and adaptive to the needs of the future.

He urged architects to rise to the occasion on the issues of rapid rural-urban migration and astronomic population growth, which put strain on infrastructure.

Dangiwa stated that African countries had struggled to respond to the challenges of rapid rural-urban migration and the surging population estimated to hit 2.5 billion by 2050, with Nigeria alone said to account for over 400 million, ranking third largest country globally.

•Nigeria raises crude production to 1.44 million bpd in August, highest since January

•Glencore’s ex-head of oil appears in UK court for bribing Nigerian officials

Emmanuel Addeh in Abuja

Oil prices have plummeted to their lowest point in about  three years, with Brent Crude, Nigeria’s benchmark, falling to less than $70 per barrel and US West Texas Intermediate (WTI) dipping below $66.04 yesterday.

Brent crude futures settled at their lowest since December 2021, after the Organisation of Petroleum Exporting Countries (OPEC) revised down its demand forecast for this year and 2025.

Brent crude futures settled down $2.65, or 3.69 per cent, at $69.19 a barrel. US West Texas Intermediate (WTI) crude settled down $2.96, or 4.31 per cent, to $65.75 a barrel.

Both benchmarks dropped by more than $3 during the session, after each rose by about 1 per cent on Monday. WTI crude futures fell more than 5 per cent on Tuesday, hitting their lowest levels since May 2023.

On Tuesday, OPEC in a monthly report said world oil demand would rise by 2.03 million barrels per day (bpd) in 2024, down from last month’s forecast for growth of 2.11 million bpd.

Until last month, OPEC had kept the forecast unchanged since it was first made in July 2023. OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. Prices slid on the weakening global demand prospects and expectations of oil oversupply.

This means that crude oil prices are down by over 26 per cent from their multi-year highs of $98 per bbl and the downtrend will support, it was learnt.

The situation is double edged sword for Nigeria. While it may get petrol imports for lower prices in the coming months, however, its expectation of an $77 per barrel oil in this year’s budget could be a mirage.

This means that for the first time since December 2021, Brent crude oil futures dipped below $70 per barrel, signalling a significant slump driven by rising supply, waning demand, and a wave of speculative selling.

The drop in oil prices also poses a significant challenge for the federal government, which based the 2024 budget on a crude price benchmark of $77 per barrel.

Worse still , Nigeria has consistently failed to meet its oil production targets for the 2024 budget set at 1.7 million barrels per day (bpd), as well as the Organisation of Petroleum Exporting Countries (OPEC) quota of 1.58 million bpd. In July OPEC data showed that Nigeria’s production averaged just 1.35 million bpd.

But in a major breakthrough, Nigeria produced its highest oil production since January in august , according to data from OPEC released yesterday, with output hitting 1.44 million bpd as against the previously highest output of 1.42 million bpd in January 2024.

OPEC data released indicated that the new production figure was about 57,000 bpd higher for the month under consideration, according to secondary sources.

Meanwhile, Glencore’s former head of oil Alex Beard appeared in a London court yesterday to face bribery charges relating to the Swiss commodity trader’s operations in Africa, Reuters reported.

Beard will plead not guilty, his lawyer said at London’s Westminster Magistrates’ Court.

The 57-year-old is charged with two counts of conspiracy to make corrupt payments to government officials and officials of state-owned oil companies in Nigeria between 2010 and 2014, and in Cameroon between 2007 and 2014.

Beard, who is the most high-profile commodity trader to have been charged in Britain for alleged corruption, joined Glencore in 1995 from BP, the biggest trading desk at that time, and was head of oil from 2007 until 2019, when he retired.

He helped Glencore become one of the top three oil trading firms, trading as much as 7 per cent of the world’s oil in its heyday.

Four other ex-Glencore employees – Andrew Gibson, Paul Hopkirk, Ramon Labiaga and Martin Wakefield – were also charged with making corrupt payments relating to Glencore’s operations in Nigeria, Cameroon and Ivory Coast.

Gibson and Hopkirk indicated not guilty pleas through their lawyers. Labiaga and Wakefield did not indicate any pleas and were not required to do so.

Gibson and Wakefield are further charged with conspiracy to falsify documents between 2007 and 2011.

Another ex-Glencore employee, David Perez, has been charged with making corrupt payments and conspiracy to falsify documents. Perez did not indicate any pleas.

Prosecutor Alexandra Healy said the alleged offences related to the West Africa desk of Glencore’s London office. All six defendants’ cases were sent to Southwark Crown Court for a hearing on October 8.

•Taps Falana, Osahor, 25 others as ADRC members  

•Komolafe laments Nigeria’s low capex to oil reserve ratio

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday set up an alternative dispute resolution mechanism to handle cases of disagreements involving upstream operators.

The Chief Executive Officer of the commission, Mr. Gbenga Komolafe, who spoke at the event in Lagos, disclosed that the commission also facilitated and attracted funds totalling about N200 billion for the development of oil and gas host communities in the country.

He further swore in 27 members of the ‘Body of Neutrals’ for the NUPRC’s Alternative Dispute Resolution Centre (ADRC), including human rights lawyer, Mr. Femi Falana and a former Director of the defunct Department of Petroleum Resources (DPR)/Chairman of Energia Nigeria Limited, Mr. George Osahor.

Other members of the ADRC body sworn in by Komolafe were:  Mr. Osten Olorunsola, Mr. Dozie Inechukwu, Dr Edefe Ojomo, Mrs Olayinka Kolade, Mr. Omoniyi Opeyemi, Adeyemi Akinsanya, Dapo Akinosun, Dr Nike Esan, and Achere Cole.

Also sworn in were: Adeyinka Ololade, Ojukwu Chiakaasolu,  Daere Akobo, Justice Andrew Alaba, Chinenye Onyemaizu, Isaiah Bozimo, Dr David Agbu, Abdullah Omaki, Olajumoke Adio,  Owoeye Ibukun,  Shola Oshodi-John, Chidi Martins, Babatunde Fagbohunlu, Oghogho Makinde, Justice Babatunde Adejumo and Deji Morakinyo.

On the host oil community funding, Komolafe explained that it comprised N60 billion and another $100 million, adding that it amounted to N200 billion when calculated against the prevailing foreign exchange rate.

He also lamented Nigeria’s low reserve to capital expenditure (Capex) ratio despite the country’s over 37 billion barrels oil and 209 trillion cubic feet (TCF) deposits.

Komolafe explained that the N200 billion already attracted for host community development was achieved through the implementation of the Petroleum Industry Act (PIA).

He stated: We all are aware that as a nation that is well endowed with huge hydrocarbon resources of over 37 billion barrels of oil and 209tcf of gas, that we suffer at a very low reserve to capex ratio in the country.

“And one of the reasons that have led to that is the menace of crude oil theft aside very hostile operating environment. Of course, the PIA under Section 235 provides robustly the dealing with the challenges of hostile communal environment and of course, that provision speaks about inclusiveness.

“Now, for us as a commission, we’ve made efforts in achieving effective implementation of the robust provisions of the PIA which is a very laudable provision. As at today, we have facilitated about N60 billion.

“We’ve created over $100 million. And these funds are meant to add value to the host communities, to facilitate conducive operating environment for the operators so that we can achieve the intended optimisation of our hydrocarbon endowment in the nation”.

He said the intent of the commission’s ADRC was to look for a much peaceful, faster and cheaper way of resolving disputes in the oil and gas industry, particularly issues relating to host communities, to engender a conducive operating environment for operators.

The commission chief executive said the idea was to help to improve Nigeria’s oil and gas production and ultimately lead to increased revenue to the federation’s account.

Komolafe said however that while the funds had been facilitated and available for host communities’ development, litigations arising from host community cases being fuelled by litigious actors in the communities had contributed in delaying the disbursement and utilisation of the funds to add value to the communities as intended by the PIA.

He noted that by going the routes of the mainstream judicial process with its high cost and long trial process, some host community actors often secure court injunctions to stall the utilisation of funds.

“As I speak, you find out that these funds are there but oftentimes, because of the litigious actors in these host communities, there are delays in disbursing them.

“Because of the crisis, some of them will go to court, place injunction and we have a barrage of all these issues. And we know that going through the mainstream judicial process takes time apart from cost.

“So in effect, the intended value addition or inclusiveness that we seek to drive in the commission are not impacting as intended. So that becomes an issue,” he explained.

Notwithstanding the challenges, he said NUPRC was doing everything to add value to the communities through the PIA provisions.

He said the commission would continue  to facilitate inclusiveness and peaceful operating environment to enable operators operate in a way that leads to achieving the targeted optimal oil and gas production and impact positively on the federation’s revenue.

He restated that the unwarranted crisis among the host community actors often limits the laudable initiative of the PIA.

Speaking further, Komolafe said the inauguration of the alternative dispute resolution body marked a significant milestone in the commission’s role as the regulator of the Nigerian upstream petroleum sector.

He maintained that the establishment of the body was not only the culmination of extensive planning and dedication but also the commencement of a transformative chapter in the realm of dispute resolution.

“In an increasingly complex and interconnected world, the demand for effective and efficient dispute resolution has never been more critical.

“While traditional litigation remains necessary and important, it is often accompanied by inherent delays, high costs, and adversarial postures that can exacerbate conflicts and strain relationships, as seen in numerous protracted legal battles between producers and host communities.

“These challenges underscore the inefficiencies of traditional litigation and the immense financial burdens and prolonged suffering it imposes on the individuals and communities involved,” he said.

He explained that the intent of the commission’s ADRC was to look for a much peaceful, faster and cheaper way of resolving disputes in the oil and gas industry, particularly issues relating to host communities, to engender a conducive operating environment for operators.

Besides, Komolafe described the members of the new group as esteemed persons who are  professionals and embody the core values of impartiality, expertise, professionalism, and dedication.

He stated that the body comprises eminent professionals with expert knowledge and/or technical experience in the oil and gas industry, including lawyers, retired judges, oil and gas industry experts, and other subject matter experts.

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Company Limited (NNPC) yesterday announced that its Joint Venture (JV) with Chevron Nigeria Ltd (CNL) had concluded the conversion of five of its assets as dictated by the Petroleum Industry Act (PIA).

According to a statement by the Chief Corporate Communications Officer of the NNPC, Olufemi Soneye, the move was in accordance with the provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms as dictated by the new law.

Under the new PIA regime, the NNPC stated that all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) are expected to be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration.

Nonetheless, it said that an option of voluntary conversion was provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime.

The PIA terms, the national oil company said, are generally perceived as more investor-friendly, compared to the erstwhile PPT terms.

During a brief ceremony held at the NNPC Towers, the two partners signed documents on the conversion of the five OMLs into four PPLs and 26 PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

Speaking on the occasion, Group Chief Executive Officer of the NNPC, Mr. Mele Kyari, described Chevron as one of the most reliable partners for the company.

“Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting oil production in the shallow water and we are proud of them,” he added.

Kyari assured CNL that NNPC would sustain its partnership with the JV partner so as to create more value for both parties and expand Nigeria’s footprints in the domestic and export gas markets.

He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its exemplary role in midwifing the conversion.

Also speaking, the Director, Deepwater and Production Sharing Contract (PSC) of CNL, Mrs. Michelle Pflueger who stressed the significance of the conversion for both companies, affirmed CNL’s long-standing commitment to the assets.

In her remarks, NNPC Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms over the previous PPT terms, noting that the conversion was a strategic move towards the successful implementation of the PIA.

In the same vein, NNPC Chief Upstream Investment Officer, Mr. Bala Wunti, noted that the assets conversion was expected to significantly boost crude oil production, with the two partners focusing on attaining the 165,000 barrels of oil per day (bpd) production target by year-end 2024.

He emphasized the continued importance of CNL’s operational philosophy in maintaining network stability and facilitating gas supply especially to the domestic market.

•Declares company has largest generation capacity in power sector

Emmanuel Addeh in Abuja

The new Managing Director and Chief Executive of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, yesterday visited the Nigerian Electricity Regulatory Commission (NERC), in what she described as a bid to foster a harmonious working relationship with the body.

Speaking at the event, Adighije who was at NERC in Abuja, along with the management team, highlighted the plan of the power company under her leadership to ensure that debts owed the organisation were recovered.

During her maiden visit since her appointment by President Bola Tinubu, she told the NERC Chairman, Sanusi Garba, that the NDPHC has a team of forward-thinkers that was set to deploy all its energies to ensure that the NDPHC under the leadership of Vice President Kashim Shettima delivers on its mandate.

“And so we look forward to having and fostering a harmonious working relationship with the NERC. This is the first official working visit that we’ll be embarking on as a new management.

“And therefore, that demonstrates the priority and importance that we place on this relationship with the NERC, particularly for the role that you play in growing and fostering the Nigerian Electricity Supply Industry (NESI).

“As a new management, this is to familiarise and to have a handshake with the NERC. We’re a young team, very dynamic, forward thinkers, ready to deploy all our energy and expertise to push new frontiers in line with the guidelines and the directives of the NERC,” she stated.

With the deep knowledge of the industry, the NDPHC boss stated that the NERC leaderships  was in a good position to be able to work with the company to ensure that the Nigerian people are better served.

“You have a deep understanding, not only do you understand, you have a deep understanding of the peculiarity and the prevalence of issues within the NDPHC and in the industry at large.

“You do know that we have the largest generational capacity in the industry, but we’re made to bear some of the greatest burden in the industry, which has given our shareholders costs to worry.

“On Thursday last week, we held our inaugural board meeting, which was chaired by our chairman, His Excellency, the Vice President, Senator Kashim Shetima. Our rising debt exposure, amongst other issues, were very key subjects of discussion.

“This compelled the chairman to give us a directive to begin to pursue debt recovery, amongst other issues, very aggressively, and report back on the progress made within two weeks. We do know that the success of our exercise, and generally the existence of the company, is subject to how we can cooperate and partner with the NERC.

“Therefore we appeal to you to use your kind office to expedite your internal processes to ensure that we deliver positive results back to the chairman of the board,” Adighije added.

She also requested that a technical working committee could be set up  to start to look at the issues that would come up with expedite the company’s reconciliations as soon as possible.

On his part, NERC Chairman, Garba, noted that although the NERC will not bend the rules for any of the organisations it regulates, it will support whatever will ensure that government’s investment in the NDPHC is well deployed.

“I want to assure you that the commission will always provide every possible support, without bending the rules to make sure that the significant investment made by the three tiers of government in the NDPHC is actually brought to bear for the benefits of Nigerians.

“We do understand that the challenges are quite significant. There is probably need for more focus on strategic direction for the organisation so that the little you have, it will  not spread too thin to a point where you do not deliver on anything,” Garba added.

Emmanuel Addeh in Abuja

The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday called for closer collaboration and partnerships among English and Lusophone member countries of the Extractive Industries Transparency Initiative (EITI) in Africa.

The goal, NEITI said, is to boost revenue generation, address budget deficits, and mitigate the debt burden that many sub-Saharan African countries face under the EITI framework on Domestic Resource Mobilisation (DRM).

The Special Peer Learning Regional Meeting of English/Portuguese Implementation Countries of EITI, which concluded in Lusaka, Zambia, brought together National Coordinators of EITI from West, East, Central, and Southern Africa.

It also witnessed the attendance of development partners, international organisations, and representatives from the oil, gas, and mining sectors.

Delegates from Tanzania, Uganda, Liberia, Ghana, Mozambique, Malawi, Angola Sierra Leone, Congo Democratic Republic, Nigeria and the host nation Zambia were among countries that participated in the weeklong meeting.

The discussions centred on advancing strategies for DRM to enhance revenue generation, support development goals, reduce poverty, and address budget deficits in EITI member countries.

Executive Secretary of NEITI, Dr. Ogbonnaya Orji, who is also the National Coordinator of EITI in Nigeria, emphasised that the recently concluded Lusaka meeting set the stage for enhanced collaboration among EITI implementing countries in Africa.

He explained that this was particularly in the areas of domestic resource mobilisation, climate change, and energy transition.

“The shared commitment to transparency, accountability, and innovative approaches will be crucial in driving economic development and addressing the challenges posed by the evolving global energy landscape,” Orji was quoted as saying in a statement signed by NEITI’s Deputy Director/Head Communications & Stakeholders Management, Obiageli Onuorah.

Orji maintained that the EITI implementation community in Nigeria remains open to peer learning and sharing opportunities for innovation.

He urged EITI member countries to fully embrace domestic resource mobilisation, develop strategic partnerships to enhance revenue generation, diversify their economies, and reduce budget deficits.

He highlighted the importance of investing in non-oil sectors and creative industries to ensure sustainable economic growth.

Representing Nigeria at the African Regional Meeting in Lusaka, Orji, alongside Dr. Erisa Danladi Sariki, the Civil Society Organisation (CSO) Representative on the NEITI board, played vital roles as guest speakers and resource persons.

Orji used the platform to outline Nigeria’s strategic plans to diversify its economy, with a particular focus on developing the solid minerals sector, advancing gas commercialisation, and liberalising the oil, gas, and mining sectors through the introduction of investor-friendly legislation.

He welcomed the ongoing synergy and collaboration between anti-corruption agencies in Nigeria, noting that the regular exchange of information and data among these agencies was already yielding positive results.

“This collaboration, he emphasised, is crucial for ensuring a more transparent and accountable extractive sector in Nigeria, rebuilding citizens’ trust, and boosting investor confidence.

He also underlined the importance of creating an attractive investment climate to stimulate economic growth. He noted that the opportunities presented by domestic resource mobilisation were better realised through regional partnerships with countries rich in oil, gas, and mining—a common factor within the EITI community.

The Director for the Africa Region at the International Secretariat of EITI, based in Oslo, Norway, who was present at the Lusaka meeting, stressed the importance of collaboration, innovation, and openness in managing the challenges faced by oil-dependent countries in the context of climate change and the ongoing global energy transition.

Emmanuel Addeh in Abuja

The Ministry of Art, Culture, and the Creative Economy has lauded  the Bankers’ Committee, stressing that the organisation’s donation has proven pivotal to the  renovation and revitalisation of the national theatre.

The ministry said the Public Private Partnership (PPP) exhibited between the governments and the bankers’ committee reflects its shared commitment to preserving Nigeria’s rich cultural heritage while fostering economic growth through the creative sector.

In a statement in Abuja yesterday, the minister overseeing the ministry, Hannatu Musawa, described the renovation as a gift to the nation and a source of national pride.

“The successful renovation of the national theatre marks a significant milestone in our collective effort to preserve essential cultural assets and create new opportunities within the creative industry,” she added.

The renovation, she said, not only breathes new life into a historic venue but also generates jobs, supports local artists, and enriches the community at large.

“The collaboration between the Ministry of Art, Culture, and the Creative Economy and the Bankers’ Committee serves as a solid example of the private-public partnerships championed by the President’s Renewed Hope Agenda, “she added.

She stressed the importance of such partnerships in government’s business, adding that it underscores the potential of such collaborations in driving national progress, particularly in the cultural sector.

“The ministry looks forward to deepening this partnership and replicating it with other private institutions to further advance Nigeria’s creative economy. As we look towards the future, the national theatre is poised to deliver even greater contributions to Nigeria’s cultural landscape.

“Our next steps include: Delivering a state-of-the-art multi-use venue, implementing new and dynamic programming, and launching training and community programmes.

Notably, the national theatre will offer a versatile space designed to accommodate a wide range of cultural and artistic events, providing a platform for both established and emerging talents.

According to the minister, the ministry is  committed to introducing innovative programming that reflects the diverse and dynamic nature of Nigeria’s creative sector will also continue strongly, as these programmes will be tailored to engage audiences of all ages and backgrounds, fostering a deeper connection to the arts.

“To further our mission of supporting the creative industry, we have already begun to, and will continue to launch new training initiatives and community programmes aimed at nurturing the next generation of artists and cultural leaders,” she added.

The newly renamed  Wole Soyinka Centre for Culture and the Creative Arts, in tribute to one of Nigeria’s literary giants, the statement said, not only honours the legacy of Wole Soyinka but also signifies the ministry’s commitment to promoting cultural excellence.

She applauded the  partners, stakeholders, and the broader community for their invaluable support, adding that the future of Nigeria’s creative sector remains very bright.

Emmanuel Addeh in Abuja

The US Department of State and the Nigerian Federal Ministry of Communications, Innovation and Digital Economy are set to convene more than 200 stakeholders for a “Global Inclusivity and AI: Africa” conference in Lagos.

Scheduled to hold  on September 10 and 11, the event, a statement from the US embassy, stated , will be attended by senior officials from the United States and Africa, private sector executives, civil society members, and the academia.

 The conference participants will discuss the opportunities and challenges in the responsible development, deployment and use of artificial intelligence (AI), the statement added.

The group will also seek to identify and harmonise AI governance strategies between the United States and African nations to enable AI deployments in Africa to be more safe, secure, transparent, and trustworthy.

“The conference builds on the positive momentum of the US Secretary of State’s trip to Nigeria, Cabo Verde, Côte d’Ivoire, and Angola in January 2024 and the landmark adoption and co-sponsorship of 18 countries in sub-Saharan Africa of the ‘Seizing the opportunities of safe, secure and trustworthy artificial intelligence systems for sustainable development’ resolution by the United Nations in March.

“It also expands on Deputy Secretary of State Kurt Campbell’s visit to Abuja for the sixth US-Nigeria Binational Commission (BNC) with Foreign Minister Yusuf Tuggar.

“ The conference will advance the Biden-Harris Administration’s Digital Transformation with Africa initiative, which invests in expanding digital access and literacy while strengthening the digital business enabling environment across the continent,” the statement added.

The US delegation will be led by Acting Special Envoy for Critical and Emerging Technology, Dr. Seth Center, Deputy Assistant Secretary of State for African Affairs Joy Basu, and will feature recorded remarks from Deputy Secretary of State, Campbell, the release noted.

Emmanuel Addeh in Abuja

Revenues earned by electricity Distribution Companies (Discos) in Nigeria in the second quarter of 2024, spanning April to June, rose almost 40 per cent to N433 billion during the period, on the back of the recent tariff increase for Band ‘A’ customers in the country.

This is coming amid rising complaints by electricity consumers, especially in Abuja, that they were being arbitrarily migrated to Band ‘A’ without the 20 hours power supply they are entitled to under the band.

But data sourced from the Nigerian Electricity Regulatory Commission (NERC) indicated that while for the whole of Q1, 2024, the 12 power distributors raked in N291.6 billion, the revenues continued to rise after the tariff hike on April 3, hitting N433 billion three months later.

After about two years of tariff freeze in the power sector, the federal government had in April increased the rate paid per kilowatt hour (kwh) of electricity from about N68 to N225 for Band ‘A’ customers, who it said consistently enjoyed 20 hours of supply daily.

Announcing the increment in Abuja, the power sector regulator stated that only about 15 per cent of the over 12 million registered power customers would be affected by the new decision.

According to NERC, the decision to raise tariff was meant to relieve the federal government of the burden of paying N240 billion per month and N2.9 trillion per year as electricity subsidy.

The latest THISDAY assessment of commercial performance by the Discos showed that in April, the power distributors raked in N142.92 billion, N139.23 billion in May and N150.86 billion in June.

This meant that Discos in Nigeria made an additional revenue of N42.4 billion in April after NERC’s decision on Band ‘A’ customers, that is, about 42.29 per cent increase compared to the previous month of March before the tariff increase was effected. 

The increment had seen a rise in tariff from less than N70 to N225 for kilowatt hour for the premium customers. That amount has now fallen to N209, after a further calculation of the dynamics in the cost of producing a kilowatt.

In April, NERC listed the top three revenue collectors as Ikeja Electric with N29.4 billion, Eko Disco with N24.93 billion and Abuja Disco with N22.92 billion.

The least performing Discos in terms of revenue aside the new Aba Disco, which had a collection efficiency of 73.12 per cent at (N1.41 billion), were Yola Disco (N1.10 billion), Kaduna (N5.01 billion) and Jos ( N6.05 billion).

In May, the NERC data indicated that N191.65 billion was billed, while N139.23 billion was collected, with collection efficiency at 72.65 and dipping by 7.32 per cent compared to the previous month.

During the month, the highest earner was Ikeja Disco with N26.92 billion, followed by Eko Disco with a revenue of 23.92 billion and Abuja Disco which raked in N22.97 billion in May.

In the same vein, in June, the last month of the quarter under consideration, while a total of N176.57 billion was billed, N150.86 billion was collected, with collection efficiency of 85.44 per cent during the month, rising by 12.80 per cent.

As usual, Ikeja Disco took the lead in terms of revenue collection with N30.06 billion, followed by Eko, which made N26.37 billion and Abuja distribution company which collected N24.29 billion.

This collection was out of the total N29.34 billion billed by Ikeja, raising its collection efficiency to 102.44 per cent; Eko Disco billed N27.16 billion, obtaining a collection efficiency of 97.07 per cent, while Abuja had a total billing of N27.94 billion, with a collection efficiency of 86.97 per cent.

Historical data from the National Bureau of Statistics (NBS), recently showed that in 2020, the total revenue made by the Discos was N526.77 billion, while in 2021, it rose to N761.17 billion.

Similarly, in 2022, the power distributors raked in about N828 billion, more than rounding the figure off in the 12 months of 2023, with N1.1 trillion as revenue.

With the current revenue collection pattern in the first half of 2024 which has hit N724.6, the Discos have already exceeded their revenue for the whole 2020 and are underway to breaking the records for 2021,2022 and 2023 by the end of 2024.

With this considerable rise in revenue, the Discos are expected to plough back part into building the much-needed investment in infrastructure.

The electricity distributors have in the past been accused of under-investing in infrastructure to boost power supply to over 200 million Nigerians, who currently depend more on self-generated power for their homes and businesses, instead of the national grid.

Some experts have opined that the Discos remain the weakest link in the electricity distribution value chain, with just a peak capacity to distribute 5,500mw at a time.

In the same vein, the Generation Companies (Gencos) can generate 13,000mw and the Transmission Company of Nigeria (TCN) has said it has the capacity to wheel 8,000mw at any point.

But the Discos have also complained that they are not allowed by the government to collect cost-reflective tariffs, a development that has strangled their ability to markedly raise investment in the sector.

Emmanuel Addeh in Abuja 

The Nigerian National Petroleum Company Limited (NNPCL) Saturday appeared to have countered a statement by the Dangote Refinery that the national oil company will be the sole off taker of its petrol.

Dangote Refinery had recently announced the commencement of production of petrol, positioning the NNPC as its first sole buyer.

The Vice-President at the Dangote Industries Limited (DIL), Devakumar Edwin, had mentioned during the week that the national oil company was prepared to purchase its products exclusively to meet local demand.

But there had been concerns that the NNPCL’s interest in becoming the refinery’s sole buyer carries potential risks that could undermine the principles of a free market, as well as competition and further stifle the market.

But in a statement signed by the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, the national oil company said that the insinuation runs contrary to its own position.

Specifically, it referenced public comments by the Muslim Rights Concern (MURIC) which it said claimed that the Dangote Refinery was being undermined by the actions of the NNPCL.

“To set the records straight, NNPC wishes to further state as follows: The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces.

“The recent changes in Premium Motor Spirit (PMS) prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market. 

“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market,” the statement stressed.

The NNPC said it will only fully offtake petrol from the Dangote Refinery if the market prices of the product are higher than the pump prices in Nigeria. 

“The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. 

“NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole off taker does not arise,” the oil company stated.

Details later…

Emmanuel Addeh, Folalumi Alaran and Aminat Hassan in Abuja

EFInA, a Financial Sector Deepening (FSD) organisation, yesterday moved to promote women’s access to financial services in the country as well as breaking the barriers to the gender’s financial inclusion.

In a panel hosted by the organisation at the ongoing Gender and Inclusion Summit 2024 sponsored by the Nigerian Economic Summit Group (NESG) and Policy Innovation Centre (PIC), EFInA stated that for the society to make progress there was the need to support women inclusion in the financial sector.

The session which was tagged: “Unpacking Access to Essential Tools and Services for Women’s Economic Empowerment -Collaborating for Sustainable Outcomes”, had World Bank’s Yetunde Fatogun, FSD’s Sophie Mills and Dr Chinonso Egemba as members.

Also on the panel were: Emezino Afiegbe from the Centre for Excellence, EFInA, Ifeanyi Nwokolo, Head, Business and Financial Inclusion at the FCMB as well as Aisha Hadejia, Partner , Sahel Consulting Agriculture and Nutrition Limited.

In her submission, Fatogun maintained that women needed to be given a voice when it comes to financial inclusion, stressing that when this is done, it will help address a number of other societal issues.

“When women are part of a group, they have more access to finance, they have access to markets, they have access to capital, they have access to even health insurance. And they also have access to social capital.

“They have where they feel they belong, where they can socialise, where they have voice and where they have agency. So I think it just further reinforces that it’s important that we do not neglect women, particularly women in the rural areas, that are in one group or the other.

“This is because that group serves as a platform to address other developmental challenges and other challenges that women face,” she stated.

Also speaking, Mills , who is the Gender Lead, FSD Network, argued that for a country’s financial system to work better, explicit attention must be paid to women.

“Our work is to make sure that the work that these organisations are doing includes being very intentional about gender. So, that means we can be working with the regulators, for example, to support them to understand how regulation impacts differently on men and women,” she stated.

She argued that things as basic as an identity card could be a huge problem for women, especially those who live in the rural areas, suggesting that there must be deliberate efforts to reduce these barriers.

“We know that women find it harder in some cases to get access to ID. There are still rural areas in many countries across the continent where it’s difficult for women to get ID,” she said.

Also speaking, EFInA’s Afiegbe , who leads the Gender Centre for Excellence in IFINA, said that to implement the women’s financial inclusion in Nigeria, stakeholders needed to agree on an actionable plan of action.

“So, what we’re trying to do is to get different actors, different experts, who are dealing with women issues. And see how they can work together,” he stressed .

Earlier, Egemba, popularly known as ‘Aproko doctor’ online, pointed out that for women to be able to make reasonable decisions about their bodies and career paths there was the need for massive enlightenment campaigns.

•Inaugurates gas expansion working group, others

Emmanuel Addeh in Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday announced the granting of an additional 5,000 barrels per day licence to Waltersmith located in Ibigwe, Imo State.

In a statement on its X handle, the midstream and downstream regulator stated that the approval was granted in the phase two of the plant’s development, but noted that the next phase will begin in 2025.

The modular refinery with a 5,000 barrels per day production capacity achieved under the Phase1 development, had been undergoing expansion to 10,000bpd with a target to further ramp up the capacity to 40,000bpd in the shortest possible time.

“Today, the Authority granted a License to Construct (LTC) of Phase 2 to Waltersmith Refining and Petrochemical Company Limited.

“Authority Chief Executive, Farouk Ahmed, stated that Waltersmith operates a topping plant refinery in Ibigwe, Imo State,-with a capacity of 5,000 barrels per stream day (BPSD). This plant produces AGO, DPK, HPFO, and Naphtha.

“The refinery is expected to be commissioned by Q3 2025, and that the refinery plans to expand to Phase 3 immediately after,” he stated.

It also quoted Waltersmith’s Managing Director, Muhammad Musa,as highlighting that the milestone will allow Waltersmith to double its current capacity.

Musa expressed gratitude to both the Waltersmith and NMDPRA teams for their support and noted that the achievement reflects the government’s confidence in their capabilities.

“ The company assures Nigerians of its dedication  to finding new ways to contribute value to the country,” the NMDPRA noted in the message.

Meanwhile, the federal government has inaugurated the Technical Working Group (TWG) for the National Gas Expansion Programme (NGEP), National Directorate of Employment (NDE), and Association of Local Governments of Nigeria (ALGON) power project to oversee the utilisation, implementation and establishment of Gas Power Projects in local government areas across the nation.

In his remarks at the inauguration ceremony in Abuja, Permanent Secretary in the Ministry, Nicholas Ella highlighted  NDE’s strong focus on vocational skills development programme, a core mandate that aligns with NGEP’s Gas-preneurship initiative

 He explained that the Gaspreneurship initiative, developed by NGEP, encompasses the art and science of all aspects of the gas value chain, including exploration, production, transmission, and distribution.

The TWG will drive the implementation of this initiative, fostering collaboration among NGEP, NDE, and ALGON to promote gas-based economic development and job creation in local communities.

“The comprehensive training component covers:- Entire gas streams and operating principles- audit of machinery and equipment types and capacity for suitable system installation and calibration,” he stated.

The gaspreneurship Initiative  would  conclude with the provision of starter packs, including diagnostic tools and equipment, and identification of appropriate workshops and business incubation centres in local government areas nationwide and this would  enable trainee gaspreneurs to become employers of labour upon graduation, he added.

The Terms of Reference (ToR) for the NGEP, ALGON and NDE TWG include: To identify clear areas of intervention along the gas value chains that can transform the socio-economics of the LGAs; design a simple energy (power and transportation) audit template for determining the energy requirements of the LGAs as well as design a selection criterion for LGAs to participate in the various phases of the implementation of these initiatives, among others.

Membership of the Technical Working Group (TWG)  which were drawn from the Ministry of Petroleum Resources, NDE and ALGON comprised : Chairman of NGEP, Prof. M. M. Ibrahim, Assistant Director (Information) Mr. Christopher Ugwuegbulam, among others.