Nigeria Liquified Natural Gas Limited (NLNG) has signed a sale and purchase agreement with an Italian oil major, Eni for some of the remarketed volumes of Liquefied Natural Gas from NLNG’s Trains 1, 2 and 3.
The agreement, which will reportedly be effective for 10 years, would help the company take up position among the top LNG companies with plans to grow its market share. The duo also signed the agreement in order to continue to deliver the LNG globally.
According to the statement released by the company and signed by its General Manager, External Relations, Eyono Fatayi-Williams, 1.5 million tonnes will be supplied per annum for the duration of the contract.
The detail of the deal showed that the product would be supplied on a delivered ex-ship and free-on-board basis. The NLNG also stated that the agreement signifies customers’ confidence in NLNG as a trusted, safe and reliable LNG supplier in the world.
What you need to know: The Nigeria Liquified Natural Gas Limited is a company co-owned by the Nigerian National Petroleum Corporation (NNPC), representing the Federal government. which holds a 49% stake, while the other stakeholders, Shell has 25.6%, Total holds 15% and Eni accounts for 10.4%.
Recall that Nairametrics reported when the Nigeria Liquified Natural Gas Limited and Total Gas and Power, (TGP) sealed a Sale and Purchase Agreement (SPA) for some of the remarketed volumes of Liquefied Natural Gas from NLNG’s Trains 1, 2 and 3. The agreement, which was slated to be effective for 10 years, was signed by Managing Director and Chief Executive Officer, NLNG, Tony Attah, and the Senior Vice President at the LNG, Thomas Maurisse, on behalf of the TGP.
Also, an agreement on SPA was signed by NLNG and Vitol SA last month. The deal was also for some of the remarketed volumes from its Trains 1, 2 and 3, which approved the supply of 0.5mtpa of the LNG for a 10-year-term on a delivered ex-ship basis. The delivery will start in October 2021.
BREAKING: CBN retains MPR at 11.5%, holds other parameters constant
The CBN voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5% and other parameters constant.
The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted unanimously to retain the Monetary Policy Rate (MPR) at 11.5%
This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday 26th January 2021.
Other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor remain unchanged.
Highlights of the Committee’s decision
- MPR retained at 11.50%
- The asymmetric corridor of +100/-700 basis points around the MPR
- CRR was retained at 27.5%
- While Liquidity Ratio was also kept at 30%
More details shortly…
FG says N10 billion disbursed funds not only for Covid-19 vaccines
FG has clarified that the N10 billion it earlier disbursed was not only for the development of Covid-19 vaccines.
The Ministry of Finance, Budget and National Planning has said that the N10 billion it released for vaccine development is not only for the production of Covid-19 vaccines.
This was disclosed by the Director-General of the Budget Office, Mr. Ben Akabueze, representing the Finance Minister during a meeting with the National Assembly Joint Committee on Health on Monday, reported by NTA.
Following the announcement of the disbursement of the sum of N10 billion to the Ministry of Health for the development of Covid-19 vaccine, the Joint Committee scheduled a meeting with the Ministers of Finance and Health for clarifications on the funds.
“The joint committee is invited to note that N10 billion has been released, to the Federal Ministry of Health under the budgetary vote referenced in above,” Akabueze said.
Ibrahim Oloriegbe, Chairman, Senate Committee on health, said the Committee wanted to know what the use of the funds was for and urged against the implementation of a lockdown.
“We got to see that what was released was in line with what was already there, for preparing the country for all other vaccines arrangements
“So our economy, we only need to live with covid, we cannot with due respect, contaminate Nigeria with a lockdown, it will badly affect our economy,” Oloriegbe said.
The committee also said the total aim is to see how Nigeria can develop its capacity towards the development of vaccines,
The Joint Committee, therefore, resolved that the Minister of Health who was absent at the meeting should appear before it on Tuesday for a breakdown on the proposed use of the funds.
What you should know: Nairametrics reported last week that the Federal Government, through the Ministry of Finance, announced the sum of N10billion for the production of vaccines in Nigeria, to fight the coronavirus.
Investing in digital economy, infrasture crucial to mitigate impact of COVID-19 pandemic – World Bank
Investing in digital economy will be crucial to mitigate the impact of COVID-19 and foster a sustained recovery in Sub-Saharan Africa.
The World Bank has asserted that investing in the digital economy and infrastructure will be crucial to mitigate the impact of the COVID-19 pandemic and foster a sustained recovery and foster a sustained recovery in Sub-Saharan Africa.
This is according to the World Bank In Africa report – #AFRICAN CAN.
The report noted that in a time of Covid-19, dominated by lockdowns and social distancing, investing in the digital economy and infrastructure will be crucial to mitigate the impact of the COVID-19 pandemic and foster a sustained recovery.
It argued that the adoption of digital technologies by governments, households and firms in Sub-Saharan Africa still lags behind that of other regions in the world.
The report, therefore, maintains that government intervenes to reduce the cost of devices and services, avoid disconnections for lack of payment, and increase bandwidth will be key, considering that the road to economic recovery is projected to be long and arduous.
What they are saying
The report states that:
“The road to recovery will be long and arduous and will require policies and investments that focus on connecting people to job opportunities, which can help end extreme poverty, particularly post-COVID-19.”
What you should know
Even though the World Bank did not suggest the form that the policies and investments would take in the report, the Bank, in a separate report — flagship report – Global Economic Prospects – as reported by Nairametrics on the 19th of January, 2021, has argued that productivity-enhancing structural reforms are required for quick economic recovery.
The Bank suggests these productivity-enhancing reforms encompass promoting education, effective public investment, sectoral reallocation, and improved governance. Investment in green infrastructure projects can provide further support to sustainable long-run growth while also contributing to climate change mitigation.
According to the report:
- Sub-Saharan Africa is home to more than 1 billion people, half of whom will be under 25 years old by 2050.
- It is a diverse continent offering human and natural resources that have the potential to yield inclusive growth and wipe out poverty in the region, enabling Africans across the continent to live healthier and more prosperous lives.
- With the world’s largest free trade area and a 1.2 billion-person market, the continent is creating an entirely new development path, harnessing the potential of its resources and people.
- Knowledge is essential for governments to make better policies and institutions to make more effective decisions, thus, governments should pay attention to research and analysis.
According to World Bank’s Flagship report – Global Economic Prospects.
- Investment is projected to shrink again this year in more than a quarter of economies – primarily in Sub-Saharan Africa (SSA), where investment gaps were already large prior to the pandemic.
- Growth in Sub-Saharan Africa is expected to rebound only moderately to 2.7% in 2021 – 0.4% point weaker than previously projected, before firming to 3.3% in 2022.