Business News
Oil traders unwilling to buy Nigerian crude despite discounted at $10 per barrel
The crisis in the global oil market seems to be hitting Nigeria harder since the country’s economy is largely dependent on crude oil proceeds. and to make matters worse, it has become more difficult to sell the oil, even at ridiculously low rates.
There seems to be no respite for the global oil market crisis, as it keeps getting exacerbated by several factors, one of them being the global slump in crude oil prices which continues unabated.
The crisis in the global oil market seems to be hitting Nigeria harder since the country’s economy is largely dependent on crude oil proceeds. To make matters worse, it has become more difficult to sell the oil, even at ridiculously low rates.
Late on Monday, Nigeria released the prices for most of its crude oil grades for sale in May. These prices reflect an urgent need to offload cargoes in the midst of piled up inventory of unsold crude oil, in a highly competitive market right now.
However, even with the discounted prices of $10 a barrel or less, the oil traders are still pessimistic, as they believe that enough buyers might not be tempted to buy crude oil if the market situation does not improve due to the demand collapse triggered by the coronavirus disease.
READ ALSO: West Africa’s crude inventory is building up as demand slows due to Coronavirus
Nigeria, which mostly sells light crudes that are low in sulfur, lacks the space to store unsold crude. This situation is not helped by the high cost of hiring ships for supplies since many tankers are being used as floating storage.
According to Bloomberg, two Nigerian crude oil grades, Bonny Light and Qua Iboe, will be selling at discounts of $3.95 and $3.92 respectively to dated Brent crude in May.
It was even reported that in the thick of the market crisis in April, with the low demand and storage crisis, some of the Nigerian crude oil grades was sold at a discount of about $5 per barrel. Some of the analysts believe that the very low prices might still not be enough for the country to sell its excess cargoes, as about 30 out of the 65 May loading cargoes are still unsold.
READ ALSO: Nigeria seeks bank documents of former President, others over $9.6 billion P&ID case
The oil market has been so negatively impacted by the coronavirus pandemic, that about 35 million barrels a day of crude oil demand have been lost. Even the output cuts by OPEC+ and top oil-producing countries have not stopped the slide in the global oil market.
Coronavirus
COVID-19 Update in Nigeria
On the 29th of October 2020, 150 new confirmed cases and 2 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 62,521 confirmed cases.
On the 29th of October 2020, 150 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 3,008 samples across the country.
To date, 62,521 cases have been confirmed, 58,249 cases have been discharged and 1,141 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 620,758 tests have been carried out as of October 29th, 2020 compared to 617,750 tests a day earlier.
COVID-19 Case Updates- 29th October 2020,
- Total Number of Cases – 62,571
- Total Number Discharged – 58,249
- Total Deaths – 1,1141
- Total Tests Carried out – 620,758
According to the NCDC, the 150 new cases are reported from 9 states- Lagos (89), Rivers (19), Ogun (11), Bayelsa (9), Kaduna (8), Plateau (8), Taraba (3), Osun (2), Delta (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 21,106, followed by Abuja (6,028), Plateau (3,630), Oyo (3,433), Rivers (2,809), Edo (2,657), Kaduna (2,641), Ogun (2,027), Delta (1,814), Kano (1,746), Ondo (1,666), Enugu (1,314), Kwara (1,069), Ebonyi (1,049), Katsina (952), Osun (925), Abia (898), Gombe (883). Borno (745), and Bauchi (711).
Imo State has recorded 616 cases, Benue (491), Nasarawa (482), Bayelsa (412), Ekiti (332), Jigawa (325), Akwa Ibom (295), Anambra (277), Niger (274), Adamawa (257), Sokoto (165), Taraba (146), Kebbi (93), Cross River (87), Yobe (82), Zamfara (79), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Energy
Nigeria now generates 13,000mw of power – Minister of Power
Nigeria’s installed grid power generation capacity has increased from 8,000mw to 13,000mw under President Muhammadu Buhari.
Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has increased from 8,000mw to 13,000mw under the leadership of President Muhammadu Buhari.
This was stated by the Minister during the 2021 budget defence, before the House of Representatives Committee on Power in Abuja, as reported on the Twitter handle of the Office of the Minister of Power today.
READ: N2trillion Mambila project: FG starts disbursement of compensation funds
READ: DisCos seek CBN funding for massive roll-out of meters to consumers
Nigeria now generates 13,000mw of power, says Minister.
The Minister of Power, @EngrSMamman has said that the Nigeria’s installed grid power generation capacity has grown from 8,000mw to 13,000mw under the leadership of President @MBuhari pic.twitter.com/4CJhyS6DXs
— Office of the Minister of Power (@PowerMinNigeria) October 29, 2020
READ: FG targets $150 billion revenue from Zero-oil plan
However, members of the committee raised concerns about power supply to their various constituencies, urging the minister to ensure adequate supply.
The Minister explained that the distribution system had the capacity to evacuate 5,500mw of power, which is a significant improvement from 4,500mw in 2015, and that better performance should be expected in the near term.
READ: FG to spend N447.6 billion on Police in 2021
READ: FG set to provide interest-free loans and agricultural inputs to farmers
Engr. Aliyu Magaji (APC-Jigawa), the Chairman of the committee, asked the Minister to mete out stiffer sanctions to the Distribution Companies (DisCos), to make them to sit up and provide the desired services to Nigerian people.
Magaji said that if the minister ensured the sanction of the DisCos, he would become the darling of lawmakers and the entire Nigerians.
READ: FG to inject over N198 billion on capital projects in power sector in 2021
What they are saying
On the performance of the Ministry since 2015, Engineer Mamman said:
“During the period between 2015 to date, the sector has recorded successes and has faced challenges. In order to deliver this administration’s promise of providing stable and affordable power to Nigerians, a way forward was defined and supported by Mr. President’s political will.”
ENDSARS
Desmond Elliot apologises for addressing the youths as “Children”
Elliot apologised and allegedly broke down in tears on Live TV for addressing #EndSARS protesters as children.
Desmond Elliot, a member of the Lagos State House of Assembly, apologised and allegedly broke down in tears on live TV for addressing #EndSARS protesters as “Children.”
The lawmaker disclosed this in a statement he issued via his Twitter handle and on a live TV interview on Thursday.
Elliot explained that he was carried away by his emotions, which was the reason he used such a word to describe the protesters on the floor of the house.
He tweeted, “I have read your honest feedback& suggestions& [sic] I sincerely apologize for addressing the youths as ‘Children.’
“I did not mean to be insensitive with this, it was borne out of the magnitude of destruction&looting [sic] of businesses I witnessed when I went on a tour of my constituency.
“I saw women crying and my constituent members distraught as a result of the damages inflicted on their source of livelihood. I was moved by this while giving my submission on the floor of the House.
“I allowed my emotions get the better of me and for this I apologize to everyone my earlier statements may have hurt.”
1. I have read your honest feedback& suggestions& I sincerely apologize for addressing the youth as “Children”
I did not mean to be insensitive with this, it was borne out of the magnitude of destruction&looting of businesses I witnessed when I went on a tour of my constituency
— Desmond Elliot (@DesmondOElliot) October 29, 2020
What you should know
The lawmaker, who is also a film maker, in his submission at the House on Thursday, allegedly pushed for the passing of a social media regulation bill.
His controversial statement received lots of criticisms, as many Nigerian youths attacked him for referring to youths as “children” and for also pushing for the regulation of social media.
COVID-19 Update in Nigeria
Nigeria now generates 13,000mw of power – Minister of Power
Desmond Elliot apologises for addressing the youths as “Children”
Edlyft raises over $1.4 million venture capital during pandemic
FG upscales digital skills training, to train 500,000 youths
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦460/$1
CBN discloses eligible businesses, those ineligible to apply for N75 billion Youth Investment Fund
Post-#EndSARS: A time of reckoning for the Insurance companies in Nigeria
Lafarge, Nigerian Breweries, Stanbic IBTC, others top best performing stocks in Q3 2020
