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Nigerian Upstream Petroleum Regulatory Commission Activates Domestic Crude Supply Obligations Review

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) took decisive action on Tuesday by activating Section 109(2) of the Petroleum Industry Act (PIA), initiating the Industry Review of domestic crude oil supply obligations (DCSO).

During a meeting held at the NUPRC headquarters in Abuja, Chief Executive Gbenga Komolafe underscored the paramount importance of prioritizing crude supply to local refineries to achieve the government’s objective of transforming Nigeria into a net exporter of refined petroleum products.

Komolafe emphasized the need for producers to fulfill their domestic crude oil supply obligations, thereby strengthening the country’s domestic refining capacity and facilitating the transition away from the subsidy regime. He addressed concerns raised by industry stakeholders and expressed the Commission’s commitment to resolving issues within the next 48 hours.

Key concerns raised during the meeting included:

  • Inability to align contractual agreements with the provisions of the law.
  • Challenges related to vessel nomination changes and financial instrument requirements.
  • Delays in vessel arrivals impacting production targets.
  • Frequent changes in crude oil allocation to domestic refineries and loading terminal delays.

The federal government has underscored the criticality of meeting domestic crude obligations to local refineries, especially in light of concerns surrounding oil production’s failure to meet budgetary targets and the anticipated commissioning of new refineries in 2024.

Mr. Momoh Oyarekhua, Chairman of OPAC Refinery, highlighted the inadequate crude oil supply received by local refiners over the past three years. Despite having a refining capacity of 10,000 barrels per day, OPAC Refinery received only 1,500 barrels per day in 2022. Oyarekhua also emphasized the urgent need for clarity on payment currency for crude oil supplied to local refineries.

Oil producers in attendance echoed the necessity of additional investment to meet local refinery demands, citing existing supply contracts and operational constraints. Representatives of the Oil Producers Trade Section (OPTS) and Independent Petroleum Producers Group (IPPG) urged the government to address industry challenges promptly.

In response, the NUPRC directed a committee to develop a clear implementation template for domestic crude oil supply obligations within 48 hours, fostering seamless execution of the review process.

The meeting provided a platform for domestic crude oil refiners and stakeholders to collaborate on enhancing crude production and supply, underscoring the imperative of addressing industry challenges to facilitate sustainable growth and development.

Nigerian Oil and Gas Sector Set to Attract $5 Billion in Investments

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The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has unveiled ambitious plans for the Nigerian oil and gas sector, anticipating a significant influx of investments totaling $5 billion. This disclosure came during a three-day 2024 Oil and Gas Sector Retreat themed ‘Building Synergy for Enhanced Development in the Oil and Gas Sector,’ organized by the Ministry of Petroleum Resources in Abuja.

Senator Lokpobiri expressed optimism regarding the sector’s trajectory, foreseeing the surpassing of the 2024 production and revenue targets. He highlighted the government’s concerted efforts to restore confidence among global investors, facilitating an environment conducive to investment in Nigeria’s petroleum industry. The minister revealed that several modular refinery licenses had been granted, emphasizing a commitment to streamlining bureaucratic processes to foster investment without undue interference.

Addressing concerns surrounding insecurity and infrastructure, Senator Lokpobiri reassured stakeholders of the government’s resolve to address these challenges, ensuring a stable and investor-friendly environment conducive to sustained growth.

Additionally, the Minister of State for Petroleum Resources (Gas), Honorable Ekperikpe Ekpo, underscored the imperative of prioritizing infrastructure development to support gas exploration, production, processing, and distribution. He emphasized the pivotal role of gas infrastructure, including pipelines, LNG facilities, and processing plants, in facilitating efficient transportation and monetization of Nigeria’s abundant gas resources.

Highlighting the significance of gas as a transition fuel, Honorable Ekpo advocated for increased domestic production and utilization of gas across various sectors, including power generation, industrial processes, transportation, and household use. He endorsed initiatives such as the “Decade of Gas Initiative” aimed at driving gas utilization through targeted interventions and policy incentives.

In conclusion, Honorable Ekpo expressed confidence in the transformative potential of the discussions and deliberations at the retreat, calling for concerted action to reposition the Nigerian gas sector for optimal performance. He urged collective efforts to overcome challenges and foster resilience, thereby advancing Nigeria’s status as a beacon of progress and prosperity.

The retreat serves as a pivotal platform for stakeholders to align policies and strategies, driving the sector towards sustained growth and development in line with national objectives.

Central Bank of Nigeria Raises Interest Rates to Combat Inflation

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In a bid to tackle the persistent rise in inflation, the Central Bank of Nigeria (CBN) announced a significant increase in the benchmark interest rate during its Monetary Policy Committee (MPC) meeting on Tuesday.

The new Monetary Policy Rate (MPR) was adjusted to 24.75%, marking a notable uptick from the previous rate of 22.75%. CBN Governor Yemi Cardoso, addressing journalists after the meeting, underscored the committee’s unwavering commitment to reining in inflation and bolstering the purchasing power of Nigerians.

Key policy adjustments include:

  1. MPR Increase: The substantial hike in the MPR aims to make borrowing more expensive, thereby curbing spending and slowing economic growth to mitigate inflationary pressures.
  2. Cash Reserve Ratio (CRR) Adjustments: While maintaining the CRR for commercial banks at 45%, the CBN increased the CRR for merchant banks from 10% to 14%. These measures aim to tighten control over the money supply, reducing liquidity in the financial system.
  3. Unchanged Liquidity Ratio: The liquidity ratio remains steady at 13%, further contributing to the tightening of monetary conditions.

Cardoso emphasized the pivotal role of food security in combating inflation, urging the federal government to intensify efforts in implementing agricultural programs aimed at boosting domestic food production and reducing dependence on imported food items, which are susceptible to price fluctuations.

The ripple effects of the increased interest rates will be felt across the Nigerian economy. Borrowers, including businesses and individuals, are expected to face higher borrowing costs, potentially impacting investment and consumer spending.

However, the CBN’s decisive actions are geared towards achieving long-term benefits for Nigerians by stabilizing prices and safeguarding purchasing power.

The MPC’s aggressive stance in raising interest rates underscores the severity of Nigeria’s inflation challenge. The effectiveness of these measures will hinge on various factors, including the government’s success in enhancing food production and the economy’s response to tighter monetary policy.

FCT Minister Woos Indian Investors to Boost Abuja’s Development

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The Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, has extended a warm invitation to Indian investors, seeking substantial investments to expedite the development of the capital territory, Abuja.

During a visit by the Indian High Commissioner to Nigeria, Mr. Shri Balasubramanian, in Abuja on Tuesday, Wike emphasized the potential for mutually beneficial partnerships between India and Nigeria, particularly in Abuja’s burgeoning economic landscape.

Acknowledging the significant presence of Indian companies in Nigeria, particularly in sectors such as petrochemicals and fertilizers, Wike underscored the need for a similar collaborative relationship in Abuja.

“We would also like to have this kind of relationship in Abuja. You have seen improvement in security; you have seen improvement in infrastructure in Abuja. That is part of the ‘Renewed Hope’ agenda of President Bola Tinubu,” stated Wike, highlighting the progress made under the current administration’s development initiatives.

Wike further emphasized the FCT Administration’s commitment to fostering a conducive environment for diplomatic missions, ensuring they can effectively carry out their mandates within Nigeria.

In response, Balasubramanian highlighted the longstanding and robust relationship between India and Nigeria, dating back to India’s pre-independence era in 1958 when diplomatic ties were established. He noted the substantial presence of over 155 Indian companies in Nigeria, with investments exceeding $27 billion across various sectors, ranging from plastics to steel, oil, pharmaceuticals, and beyond.

Furthermore, Balasubramanian underscored the significant role played by Indian companies in Nigeria’s employment landscape, emphasizing their position as the second-largest employers of labor after the Nigerian government.

Expressing satisfaction with the existing cooperation between Nigeria and India, particularly in cultural and diplomatic spheres, Balasubramanian reiterated India’s commitment to strengthening bilateral relations and expanding economic engagements.

“We are very happy with all the facilities that are being extended to our Embassy. We are more than happy about it and would like to continue the relationship,” affirmed Balasubramanian, underscoring India’s eagerness to further deepen ties with Nigeria.

The meeting between Wike and Balasubramanian signals a promising avenue for enhanced economic collaboration, poised to drive growth and development in Abuja while reinforcing the longstanding friendship between India and Nigeria.

PDP Holds Crucial Meeting to Address State Chapter Tenure , Crisis

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The Peoples Democratic Party (PDP) convened a pivotal gathering on Tuesday, bringing together the Chairmen of state chapters to assess the tenure situation in 26 states and address ongoing crises within the party.

Led by the National Working Committee (NWC), the meeting aimed to address the expiration of tenures in various states and prevent potential crises arising from leadership vacuums. Umar Bature, the National Organizing Secretary, emphasized the necessity of the meeting in light of the lingering challenges faced by several state chapters.

Bature outlined the primary agenda, stating, “We are here to review the tenure of about 26 states, in terms of ward, local government, and state. If you recall, most of the current executives in the states were elected four years ago, with congresses conducted on a staggered basis due to COVID-19 concerns.”

Highlighting specific states with expired tenures such as Edo, Bayelsa, Gombe, and Rivers, Bature emphasized the importance of preventing crises and maintaining stability within the party. He cautioned against hasty replacements in vacant positions, urging adherence to caretaker arrangements until formal decisions are made by the National Executive Committee (NEC).

“Submit the list to us as it is,” Bature instructed, “If there are vacancies due to death and resignation, please don’t replace any name. Don’t fix another person for issues that will come up later.”

Moreover, Bature underscored the need for state chapters to submit post-2023 election reports promptly, a requirement essential for NEC deliberations. He urged transparency and accountability among state executives in addressing party grievances and disciplinary matters.

Addressing rising concerns and agitations within state chapters, Bature called upon party leaders to provide comprehensive reports on internal issues and refrain from arbitrary suspensions without due process. He emphasized the importance of factual documentation to guide NEC decisions effectively.

In closing remarks, Bature urged the Acting Chairman to seek clarity on the situation in Cross River State, emphasizing the need for accurate information to address emerging challenges.

The meeting signifies the party’s commitment to internal cohesion and effective governance, as it navigates complex issues to sustain its organizational integrity and political relevance.

House of Representatives Committee Investigates Railway Track Vandalization

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The Federal House of Representatives Committee on Land Transport has initiated an investigation into the frequent vandalization of railway tracks and other assets belonging to the Nigerian Railway Corporation (NRC) nationwide.

During the investigative hearing, the Committee’s Chairman, Hon. Blessing Onuh, stated that the probe was prompted by reports of alleged theft of NRC assets across the country. The recent incident involving the movement of coaches from Maiduguri to Jos, which raised suspicions, served as a catalyst for the inquiry.

Concerns have been raised by Nigerians regarding the condition of NRC assets, particularly the safety of railway tracks amidst reports of vandalism of track sleepers in various parts of the country.

Reports surfaced last October when train coaches, loaded on special trucks, were intercepted by the Nigeria Security and Civil Defence Corps (NSCDC) while being transported out of Maiduguri.

Addressing the Committee, the Managing Director of NRC, Freeborn Okhiria, clarified that the Maiduguri incident resulted from a communication gap, leading to allegations and the temporary detention of NRC officials by security agencies. However, the issue was later resolved.

Okhiria explained that the movement of coaches is a routine procedure to relocate them to areas where they are needed. The coaches in Maiduguri were en route to NRC’s workshop in Jos when intercepted.

The NRC chief informed lawmakers that, besides the three trucks apprehended, there are additional trucks located at various points awaiting transfer to NRC custody once investigations by NSCDC and other security agencies are concluded.

Furthermore, Okhiria revealed that the Minister of Transport, Saidu Alkali, has constituted a committee tasked with assessing the volume and value of NRC assets nationwide.

In response, the Committee Chairman directed the Corporation to furnish the panel with all relevant documents pertaining to its activities, ensuring a comprehensive investigation

Kebbi State Government Stabilizes Thousands with Mental Health Disorders

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The Kebbi State Government, through the Ministry for Religious Affairs and its Hisbah unit, has confirmed the stabilization of no fewer than 23,542 individuals with mental retardation and other brain anomalies.

Commissioner for Religious Affairs, Arch Muhammad Sani Aliyu, made this revelation during the weekly press briefing organized by the Ministry of Information and Culture in Birnin Kebbi.

Aliyu emphasized that the treatment provided is inclusive and continuous, with patients from other states and neighboring countries also benefiting from the health outreach program. The services, which are offered free of charge, encompass conditions such as leprosy, epilepsy, and various mental disorders.

In a concerted effort to address the challenge of street begging and underage almajiri syndrome, the state government is conducting a demographic survey of almajiri schools. This initiative aims to identify the ages, origins, and living conditions of the almajiris’ parents to facilitate strict measures against defaulters. Such measures may include seeking legislation to ban underage begging and holding parents accountable for sending almajiris to local malams without providing for their basic needs.

Highlighting the multifaceted approach of the ministry, Commissioner Sani noted that Hisbah also played a role in facilitating a detribalized mass wedding. This event saw 600 couples, including divorcées, widows, and spinsters from both Christian and Muslim backgrounds, join in matrimony. Notably, some Christian couples from Zuru emirate were among the beneficiaries of this initiative.

The efforts of the Kebbi State Government underscore its commitment to holistic healthcare provision and social welfare, ensuring that vulnerable populations receive the support they need to lead dignified and fulfilling lives.

FG Reiterates No Ransom Policy as 287 Kuriga School Children Regain Freedom

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The federal government has reaffirmed its stance on not paying ransom to secure the release of abducted individuals, including the recent case of the 287 school children kidnapped from Kuriga, Chikun Local Government Area of Kaduna State.

Speaking after the Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja, Minister of Information and National Orientation, Mohammed Idris, reiterated the government’s policy of non-payment of ransom. He emphasized that this principle was upheld in the case of the Kuriga school children.

Idris expressed appreciation for the efforts of the security services in safely reuniting the abducted children with their families. He assured the public that the government is committed to bringing all perpetrators of such criminal acts to justice.

The release of the school children followed a combined effort of security personnel, prompting President Bola Tinubu to renew his commitment to protecting educational facilities from such incidents. He commended the diligence of the National Security Adviser, service chiefs, and all security agents involved in the rescue operation.

Furthermore, Minister Idris provided insight into President Tinubu’s upcoming birthday celebration, revealing that the President has opted for a private affair without any formal ceremony. He emphasized the President’s directive to channel resources away from congratulatory gestures towards charity and social security programs for the benefit of Nigerians.

In addressing Nigeria’s infrastructure challenges, Minister Idris highlighted the establishment of the Renewed Hope Infrastructure Development Fund, approved by the Federal Executive Council. This fund, to be domiciled in the Presidency, aims to bridge the infrastructure deficit in the country, which requires substantial investment totaling $878 billion between 2016 and 2040.

The government, under President Tinubu’s leadership, remains committed to addressing Nigeria’s developmental needs and ensuring the safety and well-being of its citizens.

Ondo State APC Lawmakers Rally Behind Governor Aiyedatiwa for Second Term

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In anticipation of the April 2024 All Progressives Congress (APC) party primaries in Ondo State, APC lawmakers in the state have thrown their support behind incumbent Governor Lucky Aiyedatiwa to continue leading the party.

Led by Speaker Olamide Oladiji and Deputy Speaker Abayomi Akinruntan, the lawmakers converged at the party’s national headquarters in Abuja on Monday to express their endorsement of Governor Aiyedatiwa for a second term. They emphasized the importance of continuity and lauded the governor’s efforts in restoring peace and advancing development in the state.

The lawmakers cited the intervention of President Nolan Ahmed Tinubu and APC National Chairman Alhaji Abdullah Umar Ganduje in resolving internal party conflicts. They expressed confidence in Governor Aiyedatiwa’s leadership, highlighting his commitment to completing ongoing projects initiated by the late Governor Akeredolu.

Furthermore, Speaker Oladiji revealed that Governor Aiyedatiwa has created employment opportunities for over 2000 individuals, particularly in the education sector, demonstrating his dedication to improving the state’s public service. He emphasized the collaborative efforts of all three arms of government in delivering the dividends of democracy to the people of Ondo State.

Responding to recent criticisms of the governor by the Ondo State APC Caucus in the National Assembly, the lawmakers dismissed the allegations as unfounded, noting that those making the accusations lack firsthand knowledge of the state’s affairs.

Regarding potential contenders for the APC ticket, such as Jimoh Ibrahim and Olusola Oke, the lawmakers refrained from engaging in divisive discourse and emphasized the need for a peaceful campaign process. They stressed the importance of maintaining stability within the party to ensure victory in the upcoming elections.

The lawmakers expressed gratitude to the APC leadership for their intervention in resolving the internal crisis within the party in Ondo State. They pledged their full support to the APC National Working Committee (NWC) in their efforts to secure Governor Aiyedatiwa’s re-election and maintain the party’s hold on power in the state.

EKSU to Confer Honorary Doctoral Degrees on Eminent Nigerians at 28th Convocation

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The Vice Chancellor of Ekiti State University (EKSU), Prof. Edward Olanipekun, has announced that several eminent Nigerians will be conferred with honorary doctoral degrees at the institution’s 28th Convocation ceremonies.

Addressing journalists at the Convocation Press Conference, Prof. Olanipekun listed the awardees as Pastor E.A Adeboye, General Overseer of the Redeemed Christian Church of God; Otunba Adeniyi Adebayo, the first civilian governor of Ekiti State; former secretary of health, Prince Julius Adeluyi; and Princess Folorunsho Alakija.

He also revealed that the university will graduate 91 First Class graduates and numerous other second class graduates, highlighting the institution’s commitment to academic excellence. Notably, five Law graduates achieved First Class honors at the 2024 call to bar.

In addition to academic achievements, Prof. Olanipekun announced disciplinary actions against staff and students involved in misconduct. Nine staff members were dismissed, ten appointments were terminated, and five individuals were warned and pardoned. Furthermore, three staff members were suspended. Regarding students, twelve were expelled, thirty were suspended, six were warned, and seven were exonerated.

Highlighting the academic accomplishments of EKSU, Prof. Olanipekun stated that out of 10,894 graduates, 91 attained First Class degrees, including 73 Ph.D. graduates, 81 Masters graduates, and 1 Postgraduate Diploma recipient. Additionally, 58 new medical doctors were inducted into the profession by the Medical and Dental Council of Nigeria on February 8th.

Reflecting on his tenure, Prof. Olanipekun listed achievements such as the approval of 16 new academic programs, including BSc Mass Communication and BSc International Relations. He also expressed gratitude to the Federal Government for intervention funds from agencies like TETFund and NEEDS Assessment, which facilitated the completion of numerous projects on campus.

The Vice Chancellor commended the university’s ambassadors and educators for their contributions to EKSU’s success.

The Convocation ceremony is scheduled to take place on the 3rd and 4th of April 2024, marking a significant milestone for the institution.