The Federal Government is in talks to partner with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF) to transform critical power infrastructure and projects.

FG intends seeking technical support from the facility, focusing on power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.

This was disclosed by the Ministry of Power, after the Minister, Engr Salem Mamman, met with members of UKNIAF led by Program Lead for Power, Mr. Frank Edozie on Monday via its Twitter handle.

The Ministry of Power tweeted, “The Hon. Minister of Power @EngrSMamman held a meeting with members of the United Kingdom Nigeria Infrastructure Advisory Facility @ukniaf led by Program Lead for Power, Mr. Frank Edozie to discuss partnering to transform critical power infrastructure and projects.

“They discussed how the facility can be of help with providing technical support to @NERCNG, @TCN_NIGERIA, @realREANigeria & @nbetnigeria by focusing on, Power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.”

What it means

Aside from offering technical support to sector’s regulators and other agencies, the partnership, if it works, would help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’ which involves increased generation competition and limited retail competition.

What you should know

The Hon. Minister was joined by the Director, renewable energy resources Engr. Faruk Yusuf Yabo, his Special Adviser on Policy @abbaaliyu_, his Technical Adviser on Strategic Coordination Dr. Nurain Hassan @inhassan and his Technical Assistant on ICT & Digital Communications.

The President of the Senate, Ahmad Lawan, has said that the Petroleum Industry Bill (PIB) which is presently before the National Assembly for consideration and passage will ensure that Nigerians benefit optimally from crude oil production and sale of fossil fuel reserves.

According to a statement that was issued by the Special Assistant, Press to the Senate President, Tabiowo Ezrel, this disclosure was made by Lawan, while declaring open a 2-day public hearing on the bill by the National Assembly on Monday, January 25, 2021.

The Senate President pointed out that the National Assembly in its consideration of the piece of legislation would ensure that the bill when passed into law, guarantees improved revenue earnings for the country.

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What the Senate President is saying

Lawan in his statement said, ‘’Let me say this, we (National Assembly) will pass this bill not without ensuring that it is a bill that satisfies certain conditions. Nigeria is blessed with these resources, we want Nigeria to benefit optimally from them. In fact, we are in a hurry because we have lost so many years of benefits that we could have had.’’

He, however, noted that the non-passage of the PIB had been a major drag on the industry over the years, significantly limiting its ability to attract both local and foreign capital at a time when many other countries are scrambling to exploit their oil and gas resources.

READ: FG to begin online registration, monitoring of petrol stations, depots

Going further, Lawan said, ‘’The mere knowledge that the nation’s oil industry is still being governed by laws enacted more than 50 years ago is ludicrous and extremely disappointing.

‘’As legislators, we will strive to deliver a Bill that will enhance the growth of our oil and gas industry, modernize our fiscal system and enhance competitiveness, while creating harmony for all stakeholders. This is a promise we have made and that we shall achieve.’’

READ: FG assures oil companies of lower taxes in new PIB

‘’Nigeria must have an oil and gas industry that benefits its people. Equally, our oil and gas industry must be competitive. We must create a sustainable investment climate, where business in the sector will flourish,’’ he said.

He also added that the determination by the legislature to pass the Bill is driven by the need to overhaul a system that has refused to operate optimally in line with global standards, resulting in loss of continental competitiveness, transparency, accountability, good governance and economic loss for the petroleum industry and the country.

The Different chapters of the PIB

The Senate President revealed that the PIB comprises of 4 chapters that outline;

• How to create efficient and effective governing institutions with clear and separate roles for the petroleum industry,
• Establish a framework for the creation of a commercially oriented and profit-driven National Petroleum Company,
• Promote transparency, good governance and accountability in the administration of the petroleum resources of Nigeria among others.

READ: Buhari directs FIRS, others to ensure strict compliance of tax payment by foreign firms

Other benefits of the PIB

He also noted that the PIB upon passage and assent into law by the President;

• Would foster sustainable prosperity within host communities, provide direct social and economic benefits from petroleum operations to host communities,
• Create a framework to support the development of host communities among others
• Establish a progressive fiscal framework that encourages investment in the Nigerian Petroleum Industry,
• Balancing rewards with risk and enhancing revenues to the Federal Government of Nigeria,
• Provide a forward-looking fiscal framework that is based on core principles of clarity, dynamism and fiscal rules of general applications,
• Establish a fiscal framework that expands the revenue base of the Federal Government while ensuring a fair return to investors.

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Lawan assured that the National Assembly during the public hearing would deal with all issues relating to the oil and gas industry with thoroughness and effectiveness so as to avert colossal losses to the nation’s economy.

Lawan: PIB will ensure Nigerians benefit optimally from resources

***As Senate begins public hearing on bill pic.twitter.com/nSycKWW4lH

— President of the Senate (@SPNigeria) January 25, 2021

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.

READ: Shell declares force majeure, to stop Bonny Light crude oil export 

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.

READ: Nigeria’s crude oil export suffers due to force majeure declared by Shell, others

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.”

READ: Nigeria faces breaking point as India’s global crude oil demand drops by 70%

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.

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