Business News
Shell, NNPC lament over Nigeria’s electricity deficit
Gas producers, Shell and NNPC have lamented the poor electricity supply in Nigeria despite the abundant energy resources the country has.
Gas producers, Shell and the Nigerian National Petroleum Corporation (NNPC) have lamented over the poor electricity supply in Nigeria despite the abundant energy resources the country has. According to the stakeholders, the huge liquidity crisis in the power sector was hampering investments in gas development.
The Group Managing Director of NNPC, Mele Kyari, and the Managing Director, Shell Petroleum Development, Osagie Okunbor raised their concerns over the electricity deficit during their panel session at the Nigeria International Petroleum Summit in Abuja on Tuesday.
Lamenting that most businesses in the country rely on generators for electricity, Kyari said that at this age or time when there is a transition globally from use of fossil fuels (such as petrol and diesel) to renewable energy, solving the issue of electricity supply was crucial.
“For this country and very many of us in sub-Saharan Africa, what we worry about today is actually the meals of today. There are many who can’t afford a meal a day. And of course, electricity is largely a luxury; it’s only for the elite like all of us here.
“It is the dream of very many to have I-pass-my-neighbour in their homes. When you say, ‘Do not use fossil fuel,’ you are saying that ‘park this.’ You have not provided alternatives. The world has not looked at their situation. The world has not recognised that there is abject poverty in the communities,” Kyari said.
[READ MORE: Importing petroleum products must stop, NNPC has over $20bn assets – Kyari)
According to Okunbor, oil and gas production, which reportedly accounted for 90% of the country’s export revenues, only contributed 10% of the Gross Domestic Product.
“What that essentially says is that the multiplier effect of having these important resources simply doesn’t exist. I was staggered to see a sheer number of people in this country across all geopolitical zones who rely on firewood as a primary source of energy.”
Shell-MD-Osagie-Okunbor
He also emphasized the need to de-risk the entire value chain for issues like gas supply to power plants.
What you should know: During the petroleum summit, the U.S. Trade and Development Agency (USTDA) disclosed that Nigeria would be receiving a $1 million grant from the U.S. government for technical and financial work on a power plant project in Abuja.
Kyari said that the money would be used for work at the 1,350 megawatts NNPC-Abuja Independent Power Project plant.
Economy & Politics
BREAKING: Buhari sacks Service Chiefs, appoints new
President Buhari has appointed new Service Chiefs to replace the former with immediate effect.
President Muhammadu Buhari has appointed new Military Service Chiefs, and congratulates the outgoing Service Chiefs for efforts of “enduring peace to the country.”
This was disclosed by Presidential media aide, Femi Adesina in a social media post on Tuesday. President Buhari has been urged by the National Assembly to sack Service Chiefs over rising insecurity in the county.
Adesina said: “PMB appoints new Service Chiefs. Maj Gen LEO Irabor, CDS, Maj Gen I Attahiru, Army, Rear Adm AZ Gambo, Navy, AVM IO Amao, Air Force. He congratulates outgoing Service Chiefs on efforts to bring enduring peace to the country.”
“I have accepted the immediate resignation of the Service Chiefs, and their retirement from service. I thank them all for their overwhelming achievements in our efforts at bringing enduring peace to Nigeria, and wish them well in their future endeavours,” Buhari disclosed in a separate statement.
I have also appointed new Service Chiefs, to replace the retired officers:
Major-General Leo Irabor, Chief of Defence Staff
Major-General I. Attahiru, Chief of Army Staff
Rear Admiral A.Z Gambo, Chief of Naval Staff
Air-Vice Marshal I.O Amao, Chief of Air Staff.
— Muhammadu Buhari (@MBuhari) January 26, 2021
What you should know: President Buhari had come under heavy criticism in the last couple of years over his failure to sack the Service Chiefs for failing to tackle insecurity in the country.
Macro-Economic News
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…
Coronavirus
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.
