The Federal Government of Nigeria has finally bowed to long-standing pressure to restructure the downstream segment of the Nigerian oil industry through the removal of fuel subsidy.
This comes as the global oil industry continues to grapple with the low demand and subsequent price slump that have been caused by the Coronavirus pandemic.
According to the GMD of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, Nigeria would no longer be paying for under-recovery or subsidy on petrol, especially due to the current development in the global oil sector.
Kyari disclosed this yesterday in Abuja, during an interview session on a monitored television programme. He said:
“There is no subsidy and it is zero forever, going forward there will be no resort to either subsidy or under-recovery of any nature.
“NNPC will play in the marketplace, it will just be another marketer in the space. But we will be there for the country to sustain the security of supply at market price.”
Kyari believes that the liberalization of the sector and the removal of subsidy will eliminate the incentive to smuggle petrol across the various borders. This is because the arbitrage which the smugglers used to enjoy will no longer exist.
The NNPC boss went further to disclose that the removal of fuel subsidy would help the Federal Government and the Corporation to monitor and determine Nigeria’s actual consumption pattern of the product.
On transparency, Kyari said that the state-owned oil firm is probably the only company in the world that publishes its monthly financial and operational reports. He said the corporation is proud of the initiative, and then assured Nigerians of NNPC’s commitment to transparency and accountability in all its transactions.
He then disclosed that Nigeria is currently producing 2.3 million barrels of crude oil per day, including condensates. This is in tandem with the country’s plan to increase its production output to 3 million barrels per day in the nearest future.
While commenting further, Kyari stated that Nigeria’s export terminals are still operational. This is despite the COVID-19 pandemic which had affected demand and supply fundamentals.
The NNPC boss also assured Nigerians of adequate supply and distribution of petroleum products. He explained that in spite of the Coronavirus pandemic, the corporation had in stock about 2.6 billion litres of petroleum products that could serve the country’s energy needs for the next two months.
You may watch the full interview session by following the link below.
Lake Chad: FG proposes 3 areas to support development
The FG has restated its commitment to support Project Lake Chad (PROLAC) with a focus on 3 different areas.
The Federal Government disclosed that it will focus on 3 areas aimed at supporting Project Lake Chad (PROLAC) including Regional and National Coordination Platform and Local Capacity Building aimed at reinforcing regional dialogue and data collection and dissemination, institutional capacity building and others.
This was stated by the Minister of Humanitarian Affairs, Disaster Management and Social DevelopmentSadiya Farouq at a virtual Ministerial World Bank Group Roundtable on the Lake Chad Region held on Monday.
The Minister added that all the focus areas would be:
- Regional and National Coordination Platform and Local Capacity Building aimed at reinforcing regional dialogue and data collection and dissemination.
- Institutional capacity building and knowledge sharing, as well as Agriculture Investments and Value-Chain Development, aimed at promoting public productive investments.
- Value-chain development, citizen engagement and community participation activities in project areas.
Umar Farouq added that the Ministry will also support the World Bank through the provision of a coordination structure for the targeted management of vulnerabilities through the agencies and programmes under its supervision.
“The Lake Chad Region faces a combination of multidimensional risk factors which deepen vulnerabilities. From 2014, Boko Haram’s violent activities took on a transnational approach, spreading its terrorist attacks from Nigeria to Cameroon, Chad, and Niger. This has created a humanitarian crisis, increasing the number of internally displaced persons and refugees within the Lake Chad Region,” she said.
While the drivers of fragility and obstacles to growth existed before the insurgency, the ongoing conflict has compounded the region’s difficulties. The Boko Haram regional conflict has triggered an acute humanitarian situation with devastating social and economic impact on the population.
Direct efforts of the Ministry through the National Humanitarian Coordination Committee (amongst other structures and critical interventions) is the provision of an enabling environment to support peace enforcement.
What you should know
Recall that Nairametrics reported last month that President Muhammadu Buhari stated that Nigeria is engaging with relevant stakeholders on recharging Lake Chad as it is important that there be water transfer to the Lake from the Congo Basin.
Nigerian economy to be boosted by $5 billion investment by Qatar
The FG has disclosed that Middle-East nation of Qatar is set to invest in the Nigerian economy the sum of $5 billion.
The Federal Government has said that the oil-rich state of Qatar plans to invest $5 billion in the Nigerian economy.
According to a statement by the Deputy Director of Information, State House, Mr Abiodun Oladunjoye, this disclosure was made by the Minister of Foreign Affairs, Geoffrey Onyema, while speaking at a farewell dinner in honour of Nigeria’s Ambassador-designate to the state of Qatar, Ambassador Yakubu Ahmed, who is also the outgoing Director of Protocol at State House.
Onyeama said that there had been discussions with Qatar on partnership with Nigeria’s Sovereign Wealth Fund, for significant investments in the region of $5 billion in the Nigerian economy.
He said, “Qatar is a weighty and strategic country and very strategic in that part of the world and we are putting our best feet forward to advance the interest of our country economically and in other areas.”
The Foreign Affairs Minister had recalled that President Buhari visited the State of Qatar in 2016 and the Emir of Qatar, His Highness Tamim Bin Hammad Al-Thani reciprocated with a State visit in 2019.
Onyeama said that only trusted hands with a track record of diligence, experience and professionalism in the Foreign Service will be appointed into positions of career ambassadors.
The Minister said that the appointment of Ahmed and other career ambassadors were based on posting dedicated and keen Foreign Service practitioners to serve as image-makers of the country.
He said, ‘‘Amb. Yakubu Ahmed is a dedicated professional with a penchant for rigour and detail. He is very capable and one of the best in the Ministry of Foreign Affairs. He is personable, affable, extremely friendly, dispassionate and objective.
He is going to head a very important mission, a very important country, reckoned to be one of the richest countries in the world, per capita, and there’s a lot we will be doing with the State of Qatar.’’
In his response, Ahmed expressed gratitude to President Muhammadu Buhari for the great honour and privilege of appointing him as the country’s main representative in Doha, Qatar.
He pledged to deplore his energy and skill to the promotion of the existing cordial relationship between Nigeria and Qatar, particularly in the areas of economic, political, cultural and consular affairs as well as other key areas.
What this means
- This is going to be a huge boost to Nigeria’s drive for foreign investment and help significantly in the country’s push for economic development.
- Qatar which has a very high Human Development Index (HDI) is regarded as the world’s third-largest natural gas and oil reserves with a population of about 2.8 million people as of 2019.
- The investment by the wealthy Middle East country will add to the country’s diversification efforts as such investments are expected in the area of oil and gas, manufacturing, power/utilities and so on.
Nairametrics | Company Earnings
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