Nigeria’s Qua Iboe crude exports resume as ExxonMobil lifts force majeure
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Business News
FG commissions Made-in-Nigeria vehicles worth N364 billion
The Federal Government has commissioned N364 billion locally-assembled vehicles through collaboration with the NADDC.
The Federal Government has commissioned $1 billion (N364 billion) locally-assembled vehicles through collaboration with the National Automotive Design and Development Council (NADDC).
The disclosure was made by the Minister of Industry, Trade and Investment, Mr Adeniyi Adebayo.
According to Adebayo, the vehicles, which were produced by 17 firms, include pioneers of made-in-Nigeria vehicles such as Coscharis, Nissan, Innoson, Ford and Elizade Motors.
Adebayo made known that the locally-assembled vehicles would be used at the Argungu Motor Rally which is an integral part of the popular festival held in Kebbi annually, the Argungu Annual International Fishing and Cultural Festival. This Argungu Motor Rally is slated to be kicked off by the President Muhammadu Buhari in Abuja.
READ ALSO: Nigerians react as Anambra lawmakers reject Prado SUVs for Innoson SUVs
More details: While revealing the plan of the NADDC to turn the rally into an annual event for the auto industry, the minister acknowledged the growth of the auto industry. He said Nigeria was moving forward in the area of automotive assembly, adding that from zero production level in 2012, the industry had recorded tens of thousands of newly assembled vehicles.
According to him, with the inauguration of the 10-year Nigerian Automotive Industry Development Plan (NAIDP 2013-2023) in 2013, about 62 companies have been registered to assemble vehicles.
“The vehicles and brands for unveiling are a testament to the zeal and commitment of the automotive industrial subsector to the present government’s efforts towards diversification of the non-oil sector of the economy. The role of the NADDC in reviving and sustaining the automotive sector has greatly helped in stimulating growth and development in the Nigerian automotive industry.’’
Also commenting on the commissioning was Minister of State for Industry, Trade and investment, Amb. Mariam Katagum, who charged the auto companies to do more in the area of local content and have faith in the Federal Government’s commitment to economic diversification.
READ ALSO: FG receives N185m from Islamic Bank to support textile, agric sectors
Katagum, who was represented by the ministry’s Permanent Secretary, Dr Nasir Gwarzo, said that the unveiling of the vehicles that were also slated to take part in the Argungu Motor Rally showed what the Nigerian automotive industry could offer.
Energy
Nigeria’s Qua Iboe crude exports resume as ExxonMobil lifts force majeure
ExxonMobil has lifted a force majeure on Nigeria’s Qua Iboe crude oil exports as production resumes.
ExxonMobil has lifted a force majeure on Nigeria’s Qua Iboe crude oil export terminal, as crude exports resume for the first time in almost six weeks after a fire at the terminal halted operations.
This is according to a company spokesman yesterday, who confirmed the company had lifted force majeure on Qua Iboe crude loadings.
Qua Iboe production started to ramp up to normal levels of 200,000 b/d in the past week, according to sources, with the release of both the February and March loading programs.
The VLCC Dalia was also in the process of loading a 1-million-barrel stem at the Qua terminal since January 21, 2021, according to data intelligence firm Kpler. This will be the first export of Qua Iboe since December 15, 2020, after a fire hit the facility and injured two workers.
The company has been under pressure since the closure and prices have taken a hit as a result of the disruption. S&P Global Platts last assessed the grade at a discount to Dated Brent of 50 cents/b, down from a premium against the benchmark in December.
Bonny Light, a mainstay Nigerian crude which typically trades at roughly the same level as Qua Iboe, was last assessed 30 cents/b higher.
What they are saying
One trader said: “If you get a cargo of Qua now it could be 50 cents to a dollar below Bonny even – a January cargo is completely out of cycle and the reliability issues mean people won’t touch it.”
Another trader stated that: “[The return of Qua Iboe] is not what West African crude assessments (WAF) differentials needed.”
What you should know
- Qua Iboe is one of Nigeria’s largest export grades, and is very popular among global refiners, with India, the US, Canada, Italy, Spain, Indonesia, and the Netherlands being key buyers.
- Qua Iboe is light sweet crude, which has a gravity of 36 API and sulfur content of 0.13%. The crude, produced from fields 20-40 miles off the coast of southeast Nigeria, is brought to shore at the Qua Iboe terminal via a seabed pipeline system.
- Indian demand has steadied following a buying spree late last year, and European demand has been hit by renewed coronavirus lockdowns in the region.
- Prices for Nigerian crude have suffered in recent weeks, even with lower supply due to the outage.
- February and March loading programs have been issued for Qua Iboe averaging 169,643 b/d and 153,226 b/d respectively.
- Production of this key grade ranged between 180,000-220,000 b/d in 2020, according to S&P Global Platts estimates.
Financial Services
CBN says revised new cheque book to become fully operational from April 1, 2021
The CN has announced plans to discontinue the use of old cheque books with effect from March 31, 2021.
The Central Bank of Nigeria (CBN) has in a circular to all Deposit Money Banks (DMBs), accredited Cheque Printers/Personalisers, and the Nigeria Interbank Settlement System (NIBSS), stated that the revised cheque book will become fully operational from April 1, 2021.
The apex bank has directed all DMBs to enlighten their customers on the revised cheque book, introduced across all banks as full enforcement of its usage will commence on the stated date.
READ: CBN reviews minimum interest rates on savings deposit to 1.25%
The disclosure is contained in a circular that was issued by the CBN and signed by its Director Banking Services, Mr Sam Okojere.
The CBN in the circular noted that the clarification became necessary as some stakeholders had been interpreting the circular differently from the intended purpose.
READ: CBN moves to ring-fence Disco collections
The CBN in the circular stated, ‘’Please refer to our circular dated 9th December, 2020, referenced BKS/DIR/CIR/GEN/02/042 on the above subject.
It has come to our notice that some stakeholders interpret the circular differently from the intended purpose. Consequently, it has become imperative for the CBN to issue the following clarifications;
- The parallel run, in which old and new cheques are allowed to co-exist, will end on 31st March 2021, and thus only new cheques would be allowed in the clearing system from 1st April 2021.
- Full enforcement of the second edition of the Nigeria Cheque Standard (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) Version 2.0 will commence April 1, 2021 and the NCS/NICPAS 2.0. Sanction grid will be fully operational on April 1, 2021.
- All deposit money banks are (therefore) directed to actively enlighten their customers and ensure necessary provisions are put in place for a smooth migration to the New standard.
- The extension of full implementation date from Jan. 1 to April 1, 2021 is due to outbreak of the Covid-19 pandemic and the impact it had on the Nigeria Cheque Standard (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) Version. 2.
READ: CBN grants approval for banks to debit accounts of loan defaulters
What you should know
- It can be recalled that in an earlier circular issued on the revised cheque book, the CBN had put the cut-off date for the parallel run of the old and new cheques at August 31, 2020.
- This was further extended to December 31, 2020, with only new cheques intended to be allowed in the clearing system from January 1, 2021, due to the outbreak of the coronavirus pandemic and the impact it had on the project.
- This further adjustment of the deadline gives room for more sensitization by the deposit money banks to their customers, taking into consideration the disruptions that have happened in the economy.
READ: CBN temporarily suspends cheque clearing during Coronavirus lockdown
Spotlight Stories
Elon Musk to offer $100 million prize for best carbon capture technology
Elon Musk has announced a donation of $100 million prize money for the best technology that can capture carbon dioxide.
Tesla Inc CEO Elon Musk on Thursday took to Twitter to promise a $100 million prize for the development of the “best” carbon capture technology.
Elon Musk wrote in a tweet, “Am donating $100M towards a prize for best carbon capture technology,” details next week.
Carbon capture technology is designed to prevent the release of CO2 generated through conventional power generation and industrial production processes by injecting the CO2 into suitable underground storage reservoirs.
According to Reuters, “Capturing planet-warming emissions is becoming a critical part of many plans to keep climate change in check, but very little progress has been made on the technology to date, with efforts focused on cutting emissions rather than taking carbon out of the air.”
Since the tweet was shared, it has garnered thousands of responses from people because of the jaw-dropping cash prize. A lot of people have started sharing their carbon capture ideas.
The International Energy Agency said late last year that a sharp rise in the deployment of carbon capture technology was needed if countries are to meet net-zero emissions targets.
Newly-sworn-in U.S. President, Joe Biden has pledged to accelerate the development of carbon capture technology as part of his sweeping plan to tackle climate change. On Thursday, he named Jennifer Wilcox, an expert in carbon removal technologies, as the principal deputy assistant secretary for fossil energy at the U.S. Department of Energy.
Besides Tesla, Elon also heads rocket company SpaceX and Neuralink, a startup that is developing ultra-high bandwidth brain-machine interfaces to connect the human brain to computers.
Anonymous
March 10, 2020 at 12:51 pm
We should be commissioning electric vehicle lines!
Mr.Auto
March 11, 2020 at 6:28 am
As an Automotive engineer, i can inform you guys though this seems like great news for Nigeria, in actual fact it isn’t, I’ll explain below.
1. In advanced high tech industries say Germany a finished car is made by 1000 to 2000 suppliers . OEM->1st tier->2nd tier->3rd tier and in some cases even 4th tier suppliers this create a supply chain of various parts and component manufacturers, thereby creating a viable strong manufacturing economy with a very good know how. This is not the case in Nigeria most of the components used by INNOSON and others are imported from China.
2. Secondly, my explanation of 1 above also shows how the government is digging a hole in it’s foreign reserves. Production and quality of these vehicles aren’t trusted by the Nigerians therefor the average Nigerian won’t invest in made in Nigerian cars at least not yet. Parts to make those vehicles are imported in USD or RMB exerting more pressure on the Naira leading to devaluation. Devaluation leads to an upset public. I could go on for days on how a lack of clear oversight continues to kill the Nigerian economy even more than corruption does, but i won’t instead i will propose a realistic solution as item 3 below.
3. Such monetary support should be invested in proper educational institutions of which we don’t have 1 and developing SMEs let them grow organically. The government can focus on sector by sector: take the automotive sector(Industry) as an example, Simple mechanical components like gear manufacturing should be developed by SMEs with serious backing of the government. Actuators are also a good parts that should be produced locally. This is the route to follow if we are to ever realistically produced made in Nigeria cars that people will actually buy. Plus all my time in Nigeria i never saw or heard an advert for INNOSON vehicles this is very worrying and implies the company strategy is flawed or it dependency on governmental aid is appalling.
Y D
July 1, 2020 at 11:23 pm
Well said Mr. Auto
However, as much as I can relate to your argument, I also believe that the collective effort of the auto companies involved and the FG support is a right move in achieving the growth we both earnestly desire for the industry.