It was a moment of celebration for the successes achieved so far in the oil and gas sector as the Group Managing Director (GMD)/Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Malam Mele Kyari bagged two prestigious awards in one week.
The first award was the “2020 Zik Prize for Public Service Leadership”, while the second was the “CEO of the Year Award at the #AfricaEnergyWeek (#AEW2021), held in Cape Town, South Africa.
The Public Policy Research & Analysis Centre (PPRAC) at the conferment of the “2020 Zik Prize for Public Service Leadership” on the GMD, at the Eko Hotel, Lagos, commended Kyari for transforming the fortunes of the NNPC from a position of loss-making into a profit- making venture.
Speaking on behalf of the Centre, Chief Mac Wabara, said Kyari was recognised for his distinguished leadership and sterling achievements in the NNPC, which were evident in the reforms he had instituted at the Corporation through the deployment of the Transparency Accountability and Performance Excellence (TAPE) Agenda.
He said: “Mele Kyari continues to seamlessly transform the operations of NNPC, through the deepening of domestic gas utilisation, rehabilitation of the nation’s refineries and public disclosure of NNPC accounts, the first in NNPC’s 44 years of existence.”Kyari receiving the Zik Leadership Award
He added that the GMD/CEO’s greatest achievements had indeed turned around the fortunes of the NNPC from a loss of position, into a profit-making entity.
“Under Kyari’s watch at the NNPC, the company declared a profit after tax of N287 billion in 2020 after losses were reduced from N803 billion in 2018 to N1.7 billion in 2019. This is unprecedented in the history of the NNPC,” Wabara said.
He explained that Kyari played a pivotal role in the enactment of the Petroleum Industry Act (PIA), adding that with the emergence of the legislation, the NNPC had been positioned to operate effectively, like its global peers.
Kyari, while responding said that in the course of the last two years, the NNPC had automated its processes and systems; reduced its operating costs and was now focused on delivering value to Nigerians.
He added that the enactment of the PIA had placed a huge responsibility on the NNPC to become more creative in its business approach and to be accountable to its shareholders of over 200 million Nigerians.
Kyari noted that the Zik Leadership award would spur him and his Management team to work harder towards becoming an International National Oil Company at par with its global peers.
Other recipients of the prestigious Zik Leadership Award include the Lagos State Governor Babajide Sanwo-Olu; Nasarawa State Governor, Abdullahi Sule and former Secretary to the Government of the Federation, Chief Anyim Pius Anyim.
Minister of State for Health, Sen. Olorunimbe Mamora; Director-General and CEO of the Nigerian Maritime and Safety Agency (NIMASA), Dr Bashir Jamo and MD/CEO of the Nigeria Sovereign Investment Authority (NSIA), Mr Uche Orji were the other recipients.
The well-attended event was also witnessed of Kano, Alhaji Aminu Ado Bayero; Emir of Lafia, Justice Sidi Bage (rtd) and several other dignitaries.
Established in 1994 its 26th edition, the Zik Prize in Leadership is aimed at highlighting Dr Nnamdi Azikiwe’s legacy of patriotic fervor and nationalist vision.
In a related development, the GMD/CEO of NNPC Ltd, Malam Mele Kyari received the CEO of the Year Award at the #AfricaEnergyWeek (#AEW2021), held in Cape Town, South Africa.
NNPC’s Group Executive Director (GED) Upstream, Engr. Adokiye Tombomieye, received the award on behalf of Kyari from the Libyan Minister of Oil & Gas, HE Mohammed Oun.
The Africa Energy CEO of the Year Award is a high profile recognition covering the entire value-chain of the Energy industry, which includes power sector.
Also in the week, the Nigerian National Petroleum Company Limited, NNPC alerted the public that the information circulating, especially in the Social Media platforms, claiming that the Company was conducting a recruitment exercise was not true and that the public should disregard it in its entirety.
The Company’s General Manager, Human Resources, Malam Aminu Zaria, said NNPC’s recruitments were usually done in line with the federal character principles through a robust and well-organised process which cannot be compromised.
He said NNPC was not recruiting presently having just concluded the recruitment of 1,050 graduate trainees last year.
Zaria said that the Company usually advertised widely through authentic and credible public communication channels including the NNPC’s website (www.nnpcgroup.com) whenever it intends to recruit.
He noted that the essence of the advert was to ensure that every eligible person participated.
The GM noted that the NNPC as an employer of choice and one of the best places to work in the country was always a target of such fake adverts.
He therefore advised the public to always verify from credible sources whenever they receive such information.
Still in the week under review, the NNPC Limited made a giant stride towards achieving optimal gas penetration with the signing of the Engineering Procurement Construction (EPC) for the building of a 5million standard cubic feet of gas per day (mmscf/d) mini Liquefied Natural Gas (LNG) facility in Kogi State.
The EPC agreement which ushered in the 18-months projected duration of the construction phase of the project was among the Nigerian Gas Marketing Company (NGMC), a subsidiary of NNPC and Trans Gas Nigeria Limited as operator of the NGMC-Transit Unincorporated Joint Venture and Phoenix Development Limited.
With the agreement, the natural gas supplied through the existing Oben-Ajaokuta pipeline would be liquefied at the proposed LNG facility – an interconnecting pipeline of less than 150metres would be constructed to the facility from the adjacent NGC Geregu metering station, transported via oxygenic tanks and degasified at each customer location or cluster.
Speaking at the ceremony, the GMD/CEO of NNPC Kyari, who was represented Ajiya, Chief Ficial Officer of the NNPC, said the project was in tandem with the Federal Government’s desire to make gas the country’s transition fuel, available to all end users across the country.
Group Executive Director, Gas & Power, directorate of the NNPC, Mr Abdulkabir Mohammed spoke on the significance of the project to the national oil company.
Also, Mr Bolaji Osusanya, Managing Director of Transit Gas Nigeria Limited, the operators of the Unincorporated Joint Venture, Offered his perspective.
Furthermore, buoyed to harness its resources and consolidate the transition to an effective national oil company with diverse business interests, the NNPC Limited also in the week opened its doors to Amazon Web Services (AWS), a subsidiary of U.S. based Amazon Group.
The aim was to grow its Telecommunications business and increase its revenue base.
Speaking at a session with Amazon Web Services Business Leaders at the NNPC Towers in Abuja NNPC GMD, Kyari, via a virtual message, said the NNPC would learn from Amazon’s vast competence in this regard to enhance its competitive edge and sharpen its innovative quotient.
Mr Sanusi Yerima, Managing Director of National Petroleum Telecommunications Limited (NAPET), a wholly owned NNPC subsidiary said that the objective of commercialising NNPC IT and Telecommunications Infrastructure, Provided insight to the emerging synergy between the national oil company and Amazon Web Services.
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The Nigerian National Petroleum Corporation (NNPC) has advised the public not to engage in panic buying of Premium Motor Spirit, commonly known as petrol.
The NNPC said it was also not aware of any plan cause an increase in the pump price of petroleum.
A statement on Monday , Group General Manager, Group Public Affairs Division, NNPC, in Abuja, said that the NNPC had over 1.7 billion litres of petrol in stock.
According to Muhammad, more of the product is expected to arrive into the country daily over the coming weeks and months.
He said it was therefore unnecessary to entertain any fear of scarcity of petrol throughout the festive season and beyond.
“The NNPC is also not aware of any plan cause an increase in the pump price of petroleum. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has made that declaration last week.
“In view of these assurances therefore, the NNPC is advising motorists and other consumers of petrol to maintain their regular pattern of the purchase of petrol without getting into a panic situation that may send the wrong signals around the country,” he said.
According to him, the NNPC is also engaging all stakeholders to ensure smooth supply and distribution of products to every part of the country during the festive season and beyond.
Motorists in Kano State are experiencing fuel scarcity, as long queues have resurfaced at filling stations in the State, the News Agency of Nigeria reports.
An investigation conducted by NAN Correspondents indicated that majority of the filling stations visited within the metropolitan area were under lock and keys.
The investigation further reveals that only a few filling stations were selling at the control price of N165 per litre.
The situation was, however, characterised by long queues and filling stations selling only with one or two pumps to customers in spite of the long queues.
The situation outside Kano metropolitan area is not different as majority of the stations outside Kano city remained closed while the a few ones operating were selling at above Government-approved price.
In Tsanyawa, Bichi, Dawakin-Tofa and Gwarzo Local Governments, reports indicate that the marketers sell the PMS at N174 per litre which is above the approved price by the government.
A lot of motorists were left with no option than to purchase fuel from black marketers at higher price, ranging from N1,000 to N1,500 per four-litres gallon, depending on the location.
Alhaji Idris Abdullahi, a motorist, said he went round the town to buy fuel on Saturday evening but couldn’t get any and the situation forced him to buy from the black marketers.
According to Abdullahi, he bought a four-litre gallon of fuel at N1,100, against the former price of between N700 and N800.
Malam Muazu Kafar-Na’isa, a driver, also added that he bought four litres of fuel at N1,500 at Tsanyawa on Sunday evening.
He urged the Federal Government to hasten measures that would restore the normal pump price of fuel in order to lessen the burden on the masses.
NAN reports that the Independent Petroleum Marketers Association of Nigeria (IPMAN), Kano branch, had alerted the government over a plan by some private deport owners to increase fuel prices in the country.
Alhaji Bashir Danmallam, IPMAN branch Chairman, Kano state, was quoted as saying in a statement recently in Kano that the decision would cause fuel crises in the country.
He alleged that such private deport owners had already increased the price of the product from N148 to N153 and N155 per litre.
“The association found it necessary to alert the government in order not to blame our members in the event they increase the price of the commodity, as they will not sell at a loss.
“We are equally calling on the management of the Nigerian National Petroleum Corporation (NNPC) to investigate the issue with a view to proffering solutions,” he said.
The absence of lawyers for the Economic and Financial Crimes Commission, EFCC, and a former Minister of Petroleum Resources, Diezani Alison-Madueke, in court on Wednesday blocked the money laundering trial.
The Federal High Court in Abuja had set today, November 3, for the EFCC to report on its efforts to extradite Ms. Alison-Madueke to the country for trial, and for possible mention of the case.
NAN reports that although Judge Ijeoma Ojukwu was the presiding judge in the case, the case was reassigned to Judge Bolaji Olajuwon, following the transfer of Ojukwu to the Calabar division of the court.
Although the lawsuit, marked: FHC / ABJ / CR / 208/2018, was number 9 on Wednesday's case list, neither the EFCC lawyer nor Ms Alison-Madueke were in court.
When the case was called, the clerk of the court said: “No lawyer in court, Monsignor. "
NAN observes that this was the first time the case had been brought up before Olajuwon.
Judge Olajuwon then adjourned the case until January 24, 2022, for a referral report.
NAN also reports that the ex-minister's trial before the former judge was hampered on May 17 due to the strike by the Nigerian Judicial Staff Union (JUSUN).
The case has been set for the date following the absence of EFCC lawyer Farouk Abdullah in court on March 3.
On March 3, the case, which had been set earlier for the ex-minister's report or indictment, could not proceed because neither Abdullah nor Diezani were in court.
NAN reports that the court on December 3, 2020 adjourned the case until March 3 following the failure of the anti-corruption agency to fully comply with its orders in Diezani's trial.
Ojukwu set the date after EFCC lawyer Abdullah urged the court for more time to allow the anti-corruption agency to ensure full compliance with court orders.
The judge had, on October 28, 2020, refused to grant the EFCC's request for the court order on the issuance of an arrest warrant against Alison-Madueke.
Ojukwu held that an affidavit with evidence to support evidence that the previous subpoena granted to the agency had failed in Diezani's extradition had to be filed by the commission before another request could be made. done.
The judge noted that the EFCC informed the court that the Federation Attorney General's Office (AGF) had suggested that the arrest warrant was needed to give the international police (INTERPOL) more momentum to bring the accused to Nigeria to answer charges against her.
The judge, however, said he would give the anti-graft agency a room to tidy up his house during the ex-minister's trial because the court orders were not made in vain.
Abdullah had, in a petition, urged the court "to issue an arrest warrant for Alison-Madueke, who is believed to be in the UK to allow all law enforcement agencies and INTERPOL to arrest him. wherever she is seen and to be brought to court. court to answer the allegation against her in court.
He said that as the summons could not achieve the desired result, the need for an arrest warrant cannot be overstated.
NAN reports that the court on July 24, 2020, ordered the former minister to appear before her and answer the charges of money laundering filed against her by the EFCC.
The judge made his ruling in an ex parte motion titled FHC / ABJ / CR / 208/2018 brought by Abdullah.
The EFCC had accused the former minister of having fled the country for the United Kingdom in order to escape justice, among other things.
The attorney, in a document filed with the ex parte petition, said he sought to question Alison-Madueke, unsuccessfully, regarding numerous allegations against him, including "his role as Minister of Petroleum Resources and his role in the allocation of a Strategic Alliance Agreement (SAA) to Septa Energy Limited, Atlantic Energy Drilling Concept Limited and Atlantic Energy Brass Development Limited by the NNPC.
He said he also wanted Alison-Madueke to answer questions about "his role in the charter of private jets by the Nigerian National Petroleum Corporation (NNPC) and the Ministry of Petroleum Resources and his role in awarding contracts by the NNPC to Marine and Logistics Services Limited.
Abdallah said the agency is investigating Alison-Madueke's business relationship with Mr. Donald Amamgbo, Mr. Afam Nwokedi, Chief lkpea Leemon, Miss Olatimbo Bukola Ayinde, Mr. Benedict Peters, Christopher Aire, Harcourt Adukeh, Julian Osula , Dauda Lawal, Nnamdi Okonkwo, Mr. Leno Laithan, Sahara Energy Group and Midwestern Oil Limited, among others.
He added that Alison-Madueke was also required to clarify "her role in financing the 2015 general election, in particular the money that was stored at Fidelity Bank Plc in 2015 prior to the election".
He said he also wanted the ex-minister to talk about several items, documents and jewelry recovered from his home at No.10, Chiluba Close, near Jose Marti Street, Asokoro, Abuja, and some identified property that were linked to him in Nigeria. , United Kingdom, United States, United Arab Emirates and South Africa.
Recall that the president of the EFCC, Abdultasheed Bawa, in the April edition of the agency's internal magazine, revealed that the anti-corruption commission had recovered $ 153 million from Alison-Madueke.
Bawa said the agency also recovered the final confiscation of more than 80 properties in Nigeria worth around $ 80 million from the former minister, who has been living in the UK since he left. his duties a few years ago.
The EFCC boss said he would like the former minister to stand trial in Nigeria.
By Emmanuel Mayah and Esme Lowe (UK)
Foreign military aggression, gun-boat diplomacy, trade war and lately; exportation of strife in the form of insurgency and terrorism are not the only ways to attack the political fortune of a sovereign nation. Another, and perhaps the most insidious, is covert attack on the country’s currency. In this case the naira.
Barely one month after Godwin Emefiele assumed office on June 4, 2014 as Central Bank Governor, the first proxy attack – under his watch – on Nigeria’s Foreign Reserve happened. The United States, beginning July 2014, terminated importation of oil from Nigeria whose primary source of dollar inflows was crude export. Nigeria was not at war with the US but the naira was ultimately taking a beating.
Jeff Zients, at the time White House Director of the US National Economic Council, said the cessation of oil imports from Nigeria arose from a significant rise in US oil production.
The reduction of US oil importation to zero marked the first time since 1973 that the US did not import oil from Nigeria. Until the dramatic reversal Nigeria was still among US’s top 5 oil suppliers – a factor significant to its status as Africa’s largest economy. At the peak of their trade relationship, Nigeria was exporting 1.3 million barrels per day to the United States.
The Deutsche Bank, apparently snorting at America’s official excuse for the unforeseen, drastic and total freeze of oil imports from Nigeria, suggested a possible political connotation. Though Nigeria’s high quality crude – easily processed into higher octane gasoline – was always the preferred choice to American refiners, Middle East producers such as Saudi Arabia and Kuwait continue to pump crude oil of a lower quality that US Refiners continue to buy even in the wake of massive shale output.
The freeze suggested an agenda to strangulate Nigeria’s oil exports and to dry up its forex.
While the US’ foray into shale oil production may had on the surface justified the termination of oil transactions with Nigeria, it could not explain America’s continued importations from other oil producing nations, including OPEC members like Saudi Arabia and Kuwait and non-OPEC suppliers like Canada.
At the same time the US completely halted oil imports from Nigeria, it increased its crude oil importations from Saudi Arabia, Kuwait and Canada. Additional economic actions strangulating the naira followed in the succeeding years.
From zero oil import from Nigeria, the US went on to export its own oil to countries that had been traditional buyers of Nigerian crude. Using new technologies such as horizontal drilling and hydraulic fracturing or fracking, the surge in US’ shale output turned America into the world’s top crude producer who deliberately began to put the Nigerian oil under pressure in Europe and Asia.
Traders and shipping data showed how the US flooded the European market with what one energy trader described as “a sea of cheap U.S. oil.”
Data from Refinitiv Eikon show that after Washington lifted a 40-year ban on exports of U.S. oil in 2015, shipments to Europe hit an all-time high of 25 million barrels in March 2019 from just 2 million barrels in February 2016. This encouraged European refiners to driving a hard bargain, offering lesser prices for Nigerian crude.
Determined to offset the impact of the US actions, Nigeria began lifting exports towards Asia. According to Platts, a specialized information service for the oil industry, Nigerian oil sales to Asia’s four largest oil importers – China, Japan, India and South Korea – rose more than 40 per cent under the Muhammadu Buhari government. Steady demands for Nigeria oil from India whose economy has been growing and also from Indonesia helped to checkmate European refiners from dragging market price much lower.
But U.S. oil is also heading to India, where it is increasingly competing with Nigerian crude. Indian Oil Corp, the country’s top refiner, signed its first annual deal to buy U.S. oil in February 2019, paying about $1.5 billion for 60,000 barrels a day up to March 2020.
As Nigeria continued to lose its favourite oil export destinations to the United States, the Crude Oil Export Destination Report of the Nigerian National Petroleum Corporation (NNPC) in 2017 showed that China, Peru, and Japan have totally stopped importing crude oil from Nigeria.
Data from Energy Information Administration (EIA) showed that other countries like The Netherlands, United Kingdom (UK), Italy and Switzerland were also importing from the US. Though the Buhari administration was able to steer new imports to the US, Nigeria’s exports of crude and petroleum products to the United States plunged from 36.4 million barrels in July 2010 to just 5.6 million barrels in January 2019, according to the EIA.
In monetary terms, Nigeria’s forex pipelines from America, Europe and Asia were either completely turned off or coming in trickles.
Since the first quarter of 2020, Nigeria has faced an exchange rate crisis triggered by the drop in oil prices. With oil prices down, pressure on Nigeria’s exchange rate grew. So also did pressure on the CBN Governor.
Indeed, the job of the Central Bank Governor of Nigeria is no different from that of the weatherman who must constantly watch out for and device responses to hurricane, cyclone, monsoon rain, tsunami and even drought. It is a clock work.
Reserve Assets Management
Reserve assets also called foreign exchange reserves or external reserves are regarded as the health meter of a country. They are those external assets that are readily available to and controlled by a country’s monetary authorities to support and maintain confidence in the policies for monetary and exchange rate management including the capacity to intervene in support of the national currency.
Nigeria’s forex reserves are assets such as foreign currencies; old coin or bullion; treasury bills (with a maturity period not exceeding one year) issued by the government of any country outside Nigeria whose currency is freely convertible; securities of, or guarantees by, a government of any country outside Nigeria whose currency is freely convertible; securities of, or guarantees by international financial institutions; Nigeria’s Gold Tranche in the International Monetary Fund (IMF); allocation of Special Drawing Rights (SDR) made to Nigeria by the IMF; and investment by way of loans or debenture in an investment bank or development financial institutions within or outside Nigeria for a maximum period of five years.
The CBN maintains these reserves to balance the country’s payments, help influence the foreign exchange rate, and support confidence in financial markets. They are essentially the bank’s back-up funds that can be used in case of emergency. In essence, foreign reserves give the government the confidence and resilience to withstand shocks if a country’s currency crashes or devalues.
In the last six years of volatility in the global oil sector, Nigeria’s foreign reserves have made headline either by moving upwards or downwards. The CBN is the war room where the governor marshals responses to safeguard the international value of the naira.
Through interventions in the foreign exchange market, the CBN governor has severally deflected financial ill-winds and limiting external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing was curtailed. Clinical in approach, he has had at critical moment demonstrated confidence to the international community that Nigeria is always able to meet its external obligations.
Covid-19, China Slowdown and Rebalancing
The Corona virus proved to be an existential threat not only to the ordinary man but to big nations and the smaller ones tied to their economic apron strings. China’s slowdown in the wake of the pandemic had a telling effect on developing countries including Nigeria. In October this year third-quarter data revealed that the Chinese economy slowed to its lowest pace in a year.
Calculations based on UN COMTRADE show that Nigeria export 99.9 of its intermediate goods to China. For the CBN Governor, China’s slowing economy has delivered a sick child in need of a cure. Like the weatherman, season by season, it is one precarious weather conditions after another to be predicted and to be contained.
Naira defence measures under the Emefiele regime
In the past years various foreign exchange policies have been introduced by the Central Bank of Nigeria to strengthen the naira.
In a move to achieve exchange rate stability and preserve the country’s forex reserves, the CBN in 2015 reviewed downwards the spending limit on the usage of naira-denominated debit cards for transactions abroad. The apex bank said the limit had been reduced from $150,000 to $50,000 per person annually, while a daily cash withdrawal per person was pegged at $300.
In June 2015, the CBN announced that it was stopping the supply of forex to 41 items that could easily be produced in Nigeria, a development that brought about the forex exclusion policy.
The implication of the policy was that importers of items on the forex restriction list could no longer get forex directly from the windows created by the apex bank to bring the products into the country.
Nigeria’s food import receipt, for example, has always been a cause of concern. In 2020 alone, the country imported $534m worth of refined sugar from Spain, Brazil, France and India, and $2.5bn worth of dairy milk from the Netherlands, UK, US, Australia, and others, to power its value chain for everything from evaporated milk, pasteurized milk, to yoghurt, cheese, chocolate etcetera.
According to the CBN, “The implementation of this policy will conserve foreign reserves as well as facilitate the resurrection of domestic industries and improve employment generation.”
In July 2020 the CBN restricted access for the importation of maize through the official CBN forex window. It hinged its decision on the need ‘to increase local production, stimulate a rapid economic recovery, safeguard rural livelihoods and increase jobs which were lost as a result of the ongoing COVID-19 pandemic.’
In August of the same year Emefiele removed buying agents/companies or any third party from accessing its SMIS forex window through FORM M forex purchases. Authorized Dealers were directed to desist from the opening of Form M whose payment is routed through a buying company/agent or any other third parties, effectively eliminating third parties or middlemen from transacting in forex deals in CBN’s SMIS window.
In the same August 2020, Godwin Emefiele vowed to go tough on exporters who were guilty of forex non-repatriation. It was part of his efforts to resolve the prevalent forex crisis in the country by increasing forex liquidity. To that end, the CBN directed banks to submit the names, addresses, and Bank Verification Numbers (BVNs) of all the exporters who had failed to repatriate their export proceeds, for necessary ‘action’.
On November 20, 2020
the CBN announced the amendment of procedures for receipt of diaspora remittances in an attempt to improve liquidity in the forex market and reduce the disparity between the black market and official I&E window. In the new amended procedure, beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) would thenceforth receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.
In March 2021 the CBN introduced a ‘Naira 4 Dollar Scheme’ for diaspora remittances, which offers recipients of diaspora remittances through CBN’s IMTOs to be paid N5 for every $1 received as remittance inflow.
Perhaps one of the most far-reaching policy interventions by the CBN under Godwin Emefiele was in July 2021 when the apex bank took on the Bureau De Change (BDC) for illegal forex trading and thenceforth discontinued the sale of forex to BDC operators in Nigeria. The CBN equally announced it would no longer license new BDC operations in the country just as all current processes for new licenses were halted.
On August 17, 2021 a federal high court in Abuja granted the request of the Central Bank of Nigeria (CBN) to freeze accounts of six fintech companies.
The apex bank said it was investigating “illegal foreign exchange trading” by the fintech companies. It sought the court injunction to freeze their account details for 180 days pending the completion of investigations.
The accounts include Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.
The CBN alleged that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited were complicit in operating without license as asset management companies “and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”
The CBN Governor took a two-pronged action on September 17, 2021. He announced that
that the apex bank in partnership with commercial banks will go after Nigerians who bought dollars with the pretence of traveling abroad. According to him, the bank will find the people and ensure they refund the dollars (PTA/BTA) they bought only to cancel the tickets.
He also referred to one Mr Olumide Oniwinde, owner of AbokiFX as an illegal FX dealer who will be prosecuted for endangering the Nigerian economy.
AbokiFX is a website that publishes the parallel market exchange rate of the Naira against other currencies of the world on a daily basis.
According to the governor, Mr Olumide Oniwinde started AbokiFX operation in 2015 and has since milked the economy by taking a position, while manipulating the exchange rate.
He stated that, “The CBN act section 2, does make it clear that only the Central Bank can determine the value of the naira, and yet a single individual living in England continues to manipulate the exchange rate and make huge profit which he withdraws through an ATM in London.”
Whenever oil price crashed, Nigeria’s foreign reserve is battered. However, Nigeria’s foreign reserve recorded a further boost of $566.45 million on 18th October 2021 to close at $40.39 billion compared to $39.82 billion recorded in the previous week. The reserve position has now surpassed the $40 billion mark, largely driven by the fund raised by the federal government to the Eurobond and recent positive rally at the global crude oil market.
Nigeria raised $4 billion Eurobond in September 2021 which, oversubscribed by investors, was dubbed one of the biggest financial trades to come out of Africa in 2021. The positivity spurred the Naira to appreciate at both the parallel market and the official window.
NNPC Abuja Tours
The Nigerian National Petroleum Corporation (NNPC) Ltd urges the public not to engage in panic buying of petroleum products because there are sufficient stocks of the products.
The Nigerian National Petroleum Company (NNPC) Ltd has urged the public not to engage in panic buying of petroleum products because the company has sufficient stock of the products.
Garba Muhammad, group chief executive, group public affairs division, NNPC, said in a statement Tuesday that the stock of the products would last through the holiday season and beyond.
According to Muhammad, the NNPC is also engaging all stakeholders to ensure a smooth supply and distribution of commodities to all regions of the country.
Nigeria and Saudi Arabia agreed to boost trade, investment and economic cooperation for mutual benefits.
Malam Garba Shehu, the senior special assistant to the president in charge of media and publicity, confirmed this development on Thursday to the Nigeria News Agency in Mecca, Saudi Arabia.
According to him, the Nigerian delegation led, discussed with the Saudis on several issues, including the need for their countries to continue coordination in the fight against extremism and terrorism.
Shehu, who spoke about the takeaways from the president's visit to Saudi Arabia, said:
“For me, the most important is…. You that this summit itself was co-convened with over 5,200 participants and having chosen President Muhammadu Buhari of Nigeria to deliver the speech is in itself a major recognition for him and the Nigerian state.
“It was up to us to market Nigeria and make the most of these opportunities and I think the president did it so well - even the speech he read.
“Look at everything he said about Nigeria's attractiveness in terms of investment and what his administration is doing to overcome the challenges on the ground that have stood in the way of investment.
“So I think the story of Nigeria was well told at this event, and we hope the response will be just as impressive. "
On Umrah, Shehu expressed the hope that Nigeria would gain the favor of Almighty God by meeting its challenges.
Members of the President's delegation included the Ministers of Trade, Industry and Investment, Communications and the Digital Economy and the Ministers of State, Foreign Affairs and Petroleum.
The Managing Director of the Nigerian National Petroleum Corporation (NNPC) Group, Mele Kyari, the Managing Director of the National Intelligence Agency, Abubakar Rufa'i and the business leaders, Aliko Dangote, Abdulsamad Rabiu, Wale Tinubu and Alhaji Dahiru Mangal .
Also commenting on the Riyadh Investment Summit, Minister of Trade, Industry and Investment Niyi Adebayo said the forum provides Nigeria with the opportunity to educate the world on the many economic opportunities. and trade of the country.
He said: “It is always important for Nigeria to be in an international forum like this because it gives us the opportunity to tell our story.
“It gives us the opportunity to let the world know what we're doing and why we think Nigeria is the best investment destination in Africa.
“I was at a forum recently and pointed out that anyone wishing to do business in Africa must do business with Nigeria first because if you are not doing business in Nigeria, you are not doing business in Nigeria. business in Africa.
“So we think we should come here, it's an international forum; we should let the world know about Nigerian history.
"We are aware of the problems that we have and we are working to resolve these problems in order to create a favorable environment for investors," he said.
By Ismail Abdulaziz
The Gas Agregation Company of Nigeria (GACN) and the Nigerian National Petroleum Corporation (NNPC) coordinate the post-AKK forum with Ajaokuta-Kaduna-Kano (AKK) states to promote gas use and economic development before the completion of the AKK gas pipeline.
The 2021 Gas Stakeholders Forum, organized by the Gas Agregation Company of Nigeria (GACN) was successful, there is no doubt that the participants were welcomed in the former commercial capital of northern Nigeria; Kano, left with the firm belief that the $ 2.8 billion Ajaokuta - Kaduna - Kano (AKK) pipeline project is becoming a reality and that the federal government is on track to reorganize the economies of the Northern states and, indeed, Nigeria.
The two-day event entitled “Optimizing the Economic Development Capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project”, was kicked off by a colorful and energetic drama by famous Koroso dancers. Their performance was attended by dance troupes Egbira, Kalangu, Gbayi, Mada and Gaada, illustrating the rich and hospitable northern culture with rhythmic melodies sufficient to soothe and ease the guests after their trip to Kano.
The main deliverable of the event is raising awareness among the Nigerian population, especially the business community, of the enormous economic opportunities inherent in the AKK project once completed. Were present the Minister of State for Petroleum Resources, Chief Timipre Sylva, GMD NNPC, Mallam Mele Kyari, AKK State Governors and their representatives, key industry players, including more than 500 participants from stakeholders gas, joined together virtually and physically.
The main traditional players were not left out as the Emir of Kano and the Emir of Bichi competently led a host of other traditional representatives in attendance.
Indeed, the event was an illustration of the significant progress made in the Nigerian gas sector under the leadership of the government of President Muhammad Buhari.
There is a growing consensus that milestones such as the implementation of the Gas Transmission Network Code, the ongoing completion of the ELPS-2 and OB3 pipelines, etc. Resources and the GMD, NNPC.
Clearly, Nigeria is moving in the right direction with continued prioritization and use of gas to drive economic growth.
For the avoidance of doubt, the main takeaways from the AKK Gas Sector Forum on July 29, 2021 are highlighted below:
1. The AKK pipeline is a reality. This has been supported by solid economic projections, including recent progress in the AKK project completion schedule and.
2. There are short-term commercially competitive sourcing solutions through virtual pipelines to develop and mature the northern market, thereby enhancing the viability of the AKK pipeline prior to its completion.
3. The need to develop and deepen strategic partnerships within the community of gas companies to optimize the benefits of the project through a concise framework.
To this end, the GACN and the NNPC have embarked on the arduous steps to materialize the main results highlighted at the Forum and their efforts are already paying off. Two memoranda of understanding on the use and expansion of gas between NNPC, GACN, Kano and Kaduna states, respectively, have already been executed while discussions with Kogi and Nasarawa states are being finalized.
Indeed, GACN and NNPC are working with the Nasarawa State government to organize a roundtable on Nasarawa gas companies in Lafia on November 4, 2021. The Memorandum of Understanding on the use of Nasarawa gas NNPC - GACN - Nasarawa State would be executed during this event. .
The executed MoUs require a joint multi-stakeholder task force, comprised of gas suppliers, virtual pipeline solution providers and AKK state officials, to collaboratively deliver gas supply strategies and solutions. compatible with the identified priority projects of the private and public sectors of the AKK States.
The team has already started gas marketing discussions with various state government officials to determine gas requirements for their priority projects. Consultations with leading gas solution providers are underway to provide a short-term, competitive and robust end-to-end gas supply plan to meet the gas needs of the identified critical clusters of gas demand and demand. 'electricity, free zones, parks and industrial zones in the various states.
Going forward, GACN is committed to continually pursuing gas marketing and use projects through to completion. At the risk of stating the obvious, this will not be limited to AKK states alone, as indeed, plans are already underway to hold a practical follow-up event in the South East to bring together all stakeholders and participants from the gas sector to gas. use and expansion in the south-eastern region of the country.
This notable follow-up event is expected to take place on Tuesday, February 24, 2022 in the southeastern commercial center town of Nnewi in Anambra state.
The roadmap for achieving the FGN's aspiration in the gas sector is clear.
GACN, in collaboration with NNPC and other key gas players, is committed to providing economically sound and competitive solutions to expand and deepen gas penetration in the national gas market.
By Edith Ike-Eboh and Emmanuel Afonne
It has been a busy week for the Nigerian National Petroleum Company Limited (NNPC) as Group Managing Director (GMD) Malam Mele Kyari, addressed the 17th Nigerian Publishers Conference in Abuja, as a guest of special honor.
The conference was an opportunity for the NNPC to convey the message of the energy transition and its benefits for the country, particularly with regard to insecurity.
As the trend of energy transition to less carbon-intensive energy sources gains momentum across the world, Kyari called for taking into account what he described as "energy justice" in his implementation. implemented.
In a speech entitled “Insecurity as It Affect the Oil and Gas Sector” at the opening ceremony of the conference, Kyari argued that the wholesale execution of the energy transition without taking into account the particular socio-economic conditions of various countries would cause upheaval that could exacerbate security challenges in developing countries.
Speaking on the theme of the conference, “Media in times of crisis: resolving conflicts, reaching consensus,” the CEO of the NNPC clarified that his concept of energy justice was to enable each country, in particular developing countries, to progress at their own pace while leveraging their hydrocarbon resources for a smooth transition to Net Zero by 2050.NNPC GMD Malam Mele Kyari
“Speaking of energy transition, I think there must be energy justice, which means that countries must develop at their own pace while taking into account the realities they face.
“Individual nations should be allowed to transit on the basis of their contributions to carbon emissions to the point that ultimately there will be justice for all by 2050.
“Energy justice will ensure that while we are in transit, we are allowed to develop at the right pace and in the manner that is right,” Kyari said.
He urged the media industry and other stakeholders to champion the cause of energy justice in the global quest for cleaner energy, stressing that gas development remains the only option for Nigeria to achieve the energy transition. , without which the country could degenerate into poverty and insecurity.
He said the leadership of the NNPC, under his leadership, will change the narrative by leveraging the carte blanche given by President Muhammadu Buhari to reorganize the refineries.
“This is the first time in history that the NNPC and its affiliates have been allowed to do things right.
“Now I can confirm to you that we have taken our responsibilities and that we are going to fix the refineries.
"We have started the process, contractors have been mobilized for the Port Harcourt refinery and they will do it for both Warri and Kaduna before the end of this year," he added.
Regarding the threat of theft of crude oil and commodities, Kyari said much progress has been made through collaboration with military and security agencies.
He added that support from the Nigerian Publishers Guild (NGE) and other stakeholders was needed to reduce such incidents to 0.5%, which is the limit allowed in the industry.
Earlier in his welcoming speech, NGE President Mr. Mustapha Isah said the purpose of the conference was to find a solution to the various security challenges facing the country.
He called on all stakeholders to stand up and do their best to defend the nation.
Also during the week, the NNPC pledged to maintain its continued collaboration with the country's indigenous shipowners to meet all technical and commercial specifications that would allow them to participate in the transport of crude oil and petroleum products.
NNPC GMD, Kyari, said this Thursday during the House of Representatives Committee on Local Content Development and Monitoring Committee investigative hearing into an alleged violation of Nigerian content and cabotage laws.
The GMD said that with the right collaboration, indigenous shipowners would build their capacity and earn the right to benefit from the vast opportunities in the petroleum products transportation sector.
He noted that it was the lack of adequate capabilities and collaborations that had resulted in the use of foreign vessels.
Kyari also pointed out that in the new exemption under the Companies and Related Affairs Act (CAMA), NNPC Limited would only hire the most compliant companies in terms of efficiency and cost.
The Chairman of the Local Content Committee, Representative Legor Idagbo, commended the NNPC for providing clarification on the subject and called on the local shipowners to work closely with the NNPC in this regard.
Also during the week under review, the federal government inaugurated the new regulatory bodies for the petroleum industry as prescribed by the Petroleum Industry Act (PIA) 2021.
The agencies are the Nigerian Upstream Regulatory Commission (NURC) and the Nigerian Upstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Speaking at the event, the Minister of State for Petroleum Resources, Chief Timipre sylva, said the launch of the new PIA indicated that the Ministry of Petroleum Resources (DPR), the price regulatory agency Petroleum Products (PPPRA) and Petroleum Equalization Fund (PEF) officially ceased to exist.
“As a result, their managing directors (CEOs) are being removed from their posts,” he said.
Prior to the adoption of the PIA, the DPR was responsible for the oversight and regulation of the petroleum industry, while the PPPRA oversaw the oversight and regulation of petroleum product prices in the country.
On the other hand, the PEF was responsible for the fair pricing and distribution of petroleum products across the country.
The minister said the adoption of the PIA meant that the NPRA and NURC had taken over the functions of the DPR, PPPRA and PEF under the new exemption in the petroleum industry.
"The process of aligning the workers of the old agencies with the new regulatory bodies and their functions under the PIA regime had already started with the staff rationalization exercise," he added.Minister of State for Petroleum Resources, Chief Timipre Sylva
With the adoption of the PIA and his assent by the President following the approval by the National Assembly after more than 20 years of legislative process, the Minister said that the Nigerian oil industry is now fully ready for new investors.
He said that the CEOs of the various agencies were skilled professionals carefully selected to manage the business of the industry to achieve the aspirations of all Nigerians.
The CEOs of the agencies are Gbenga Komolafe, for NURC and Farouk Ahmed for NMDPRA.
NURC Director General Komolafe said the Commission would fulfill its mandate as set out in the new petroleum law, ensuring that the PIA has put an end to the regime of uncertainty in terms of governance of the industry.
He added that Nigerians should now expect massive deliverables.
Komolafe said the Commission will ensure the country meets its Organization of the Petroleum Exporting Countries (OPEC) quota in crude oil production, as NURC was set to announce and allow new investments.
Meanwhile, the federal government has ensured that no staff from the cut agencies will be made redundant.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, revealed this during meetings with employees of relevant organizations in Abuja.
Sylva, who announced his resignation from the presidency of the Nigerian National Petroleum Corporation, oversaw handover ceremonies at the agencies.
In an attempt to allay the fears and concerns of workers in the vanished organizations, Sylva visited the agencies and assured them that the federal government had no plans to fire the workers.
He clarified that the political leadership of the defunct agencies should give way to the newly appointed general managers of the successor agencies.
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