All Posts in "Day: June 17, 2022"

Why $60bn Tinapa Investment Failed – Stakeholders

Stakeholders in the free trade zone in Nigeria say inconsistent government policies and lack of infrastructure led to the death of Tinapa Resort in Cross River State.

At the ongoing maiden edition of the Federal Airports Authority of Nigeria (FAAN) National Aviation Conferences (FNAC) with the theme: ‘Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport,’ participants decried the sorry state of Tinapa, which they said would have boosted the Foreign Direct Investments (FDIs) into the country if the government had been consistent with its policies on the resort.

Speaking on the topic: ‘Special Economic Zones at the Airports and Trade Facilitation: Growing Revenue and the National GDP,’ speakers said that there was the need for policy harmonization by government agencies in order to ensure smooth growth.

Commenting,Mr. Obinna Emeazo, the General Manager, Vicven Integrated Services and one of the panelists lamented the massive rots in Tinapa, which he said was simply due to government summersaults and lack of infrastructure at the resort.

He said Tinapa was designed to flourish with the approval of $5,000 worth of goods for local consumers, but was later brought down to $330, thereby discouraging investors.

Emeazo decried that the change in policy by the government had negatively impacted on the country’s Gross Domestic Product (GDP), especially in the area of exports.

He said: “Tinapa Resort started well and so many investors were attracted by the benefits, but along the line, it was brought down to $330, which led to the dwindling of the growth of the resort.

“Everyone especially tourists go to Tinapa for shopping and enjoy their holidays. So, it is inconsistency on the part of the government. You brought out policies that attracted investors and in mid-way, you change such policy. If they have to focus on the special economic zones, we have to make it right. NEPZA must stand its feet and make it strong. The regulations must be strong.

“If you cannot manufacture, you cannot export. How much are you able to attract? When last did you hear about Tinapa? It is still at the elementary stage and one would have expected that it would have gone beyond that.”

Emeazo further lamented multiple regulations between FAAN and NEPZA as one of the major factors slowing down the growth of free trade zones in the country, stressing that both agencies had to harmonise their policies for the progress of the country.

“NEPZA has to show strong leadership and must be able to show strong collaboration with other agencies. You have the Federal Inland Revenue Service (FIRS), which is tax; there is still an argument on the tax investors enjoy. Some states still come to tell the investors to pay tax. They should be able to bring all the states together.

“In their board of directors, you see all the government agencies like customs, finance ministry, FIRS and others, yet you do not see a strong stakeholder like FAAN. At the level of implementation, FAAN will tell you it is against its own approval,” he said.

admin by — June 17, 2022 in News 0
Nigeria Needs New Law To Regulate Energy Demand -Olawuyi

Prof. Damilola Olawuyi, an Energy law expert and global Vice Chair of the International Law Association (ILA),says new legal guidelines are needed to meet the projected exponential growth in demand for natural gas in the emerging trend in energy transition.

According to him, failure to understand and comply with such emerging standards could pose significant legal, business and transition risks for clients, and their lawyers alike, and may result in complex litigation.

Olawuyi stated this while virtually unveiling his new book titled: “The Palgrave Handbook of Natural Gas and Global Energy Transitions”.

He said: “Like Nigeria, many natural gas-rich countries across the world are introducing new legal requirements, contractual mechanisms, and industry guidelines in order to meet the projected exponential growth in demand for natural gas in light of the energy transition, in a safe, reliable, and environmentally responsible manner.

He disclosed that the new book outlines “the risk mitigation strategies and contractual techniques, focusing on resilience planning, low-carbon business models, green procurement, climate-smart infrastructure development, transparent climate disclosures and reporting, gender justice, and other sustainability safeguards – that are required to maximize the full value of natural gas as a catalyst for a just and equitable energy transition and for energy security across the world.”

He explained that the book was written out of the need to provide in-depth knowledge of the transformative implications of the ongoing global energy transitions for natural gas markets across the world.

He said the book highlights the important roles of natural gas in the global energy transition, and how gas rich countries such as Nigeria can leverage their comparative advantages as safe, reliable, and environmentally sustainable suppliers of this transition fuel.

Published by Palgrave Macmillan, United Kingdom, the 619-page book, apart from Prof Olawuyi, is co-edited by Eduardo Pereira, a Brazilian energy law expert with case studies from Africa, Asia, Europe, North America, Latin America, South America, Australia, and the Middle East, the book introduces worldwide readers to the latest legal, policy, technological, fiscal, contractual and sustainability innovations in natural gas markets in response to ongoing global energy transitions.

The Executive Chairman of the African Energy Chamber and Chief Executive Officer of Centurion Law Group, N. J. Ayuk, said the book makes a powerful case on the role of natural gas in pursuing just energy transitions.

He commended the authors for providing such “a thorough look at the regulatory, financial, and business measures necessary for gas-producing nations to capitalize on their natural resources.They give us success stories to consider and rightly challenge us to consider the part women play in our evolving energy industry. The result is a compelling read that, I believe, makes a powerful case for pursuing just energy transitions.”

Prof. Kim Talus, who is the McCulloch Chair in Energy Law and Director of Tulane Center for Energy Law and Professor of European Energy Law at the University of Helsinki, Finland, noted that this book could not come at a better time.

He noted that “In-depth studies on the gas sector transition in various parts of the world will provide guidance for market actors, governments, and experts.
Clearly, this book is what can be called must read.”

admin by — June 17, 2022 in Power 0
N700bn Suit: Shell Challenges Court’s Jurisdiction

The Shell Petroleum Development Company (SPDC) has challenged the jurisdiction of a Federal High Court in Yenagoa to hear a N700 billion oil spill compensation suit filed by members of Aghoro I Community in Bayelsa.

The people of Aghoro I in Ekeremor Local Government Area (LGA) in Bayelsa dragged the SPDC to Federal High Court Yenagoa over a May 17, 2018 oil leak from the oil firm’s Trans Ramos Pipeline.

Counsel to SPDC, Mr Michael Amadi told the court that the oil firm is challenging the jurisdiction to hear the case and appeal at the Court of Appeal.

He prayed the court to hand off the case pending the determination of the interlocutory appeal as demanded by the hierarchy of courts since the Court of Appeal was already adjudicating into SPDC’s appeal.

Justice Isa Dashen noted that although the records as claimed by the defendant’s counsel was before the court, he is yet to go through them.

He said that he was entitled to go through the court processes and records of the Court of Appeal before staying proceedings on the matter.

He adjourned until Oct. 19 to enable and go through the processes filed before the court, adding that he would await the decision of the appellate court as the rules demand.

The plaintiffs are Mr Victor Akamu, Pastor Erebimienkumor Goddey, Mrs Jane Alex, Miss Edith George, Mr Israel Tomonye and FASF Associates Ltd on behalf of Aghoro I community at Ekeremor LGA, Bayelsa.

They are seeking redress for the damages caused by the oil spill and are claiming that the N33.49 million offered by SPDC was a far cry from the N700 billion claim based on impacted area damage assessment.

admin by — June 17, 2022 in Law/Human Rights 0
World Bank Predicts Drop In Nigeria’s FX Reserves

Nigeria’s foreign exchange reserve will fall in 2022 as the Central Bank of Nigeria plans to clear about $1.7bn in FX backlog to foreigners and FX forward contracts, the World Bank has said.

It stated that the nation’s reserves rose to $41.3bn at the end of 2021, which offered it an opportunity for exchange rate adjustment.

In its ‘Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual,’ the global bank said, “Boosted by higher oil exports, International Monetary Fund’s Special Drawing Rights allocation in August 2021, and a Eurobond issuance in September 2021, gross official reserves rose to $41.3bn (7.4 months of imports) at the end of 2021; offering an opportunity for exchange rate adjustment.

“Nigeria issued additional Eurobonds for $1.25bn in March 2022. However, gross FX reserves are projected to decline during 2022, as the CBN is expected to clear the FX backlog to foreigners (estimated at $1.7bn as of end-October) and FX forward contracts.”

The bank said direct investments in Nigeria have been low in 2022 because the nation’s fluctuating exchange rate has been discouraging investors.

It added that foreign direct inflows into the nation were less than one per cent of Gross Domestic Product in 2021 despite higher oil prices which should have driven portfolio investments into the nation. It added that Nigeria’s current account is expected to strengthen in 2022.

The World Bank said the nation’s current account improved in 2021 as a result of its economic recovery from COVID-19 and further improvement is expected in 2022 due to increases in oil prices, remittance inflows, and non-oil exports.

It said, “In 2021, the current account deficit narrowed from 3.8 per cent of GDP in 2020 to 0.4 per cent in 2021, driven by an increase in exports stemming from the rebound in oil prices.

“In contrast, imports remained subdued and declined by 4 per cent year-on-year. This was partly due to FX scarcity, as the private sector reported shortages of FX even for “allowed” imports.8 Remittance flows also recovered to pre-pandemic levels in 2021.

“In 2022, higher oil prices are expected to push the current account to a surplus for the first time since 2018, amounting to a projected 2.8 per cent of GDP. Direct investments have been persistently low in 2022, as exchange rate management issues deter investors. Net foreign direct investment inflows in 2021 remained at less than 1 per cent of GDP, despite higher oil prices which have historically driven higher portfolio investment flows into the country.”

The bank said even though the CBN was making progress in harmonising the two main exchange rates, its reform remained incomplete, as the persistence of multiple rates continued to discourage private investment.

It added that rising interest rates in the United States and other advanced economies would likely lead to an outflow of net portfolio investments from the nation as investors move their investments to certain environments.

It further said that pre-election is likely to add to the hesitance of portfolio investors, keeping net inflows low.

According to the bank, exchange rate policy clarity and transparency in the Nigerian government’s management are necessary to attract more significant capital inflows, including FDI into the nation.

admin by — June 17, 2022 in News 0
Odogbolu Council, Mogaji Foundation, Take Children On Tour To Hubert Ogunde Museum

Over 50 children Wednesday took a field trip to the Hubert Ogunde Museum, Ososa to participate in a programme called “I Know My Odogbolu”

It aims to teach children about historic moments and cultural export of the local government, which will develop their emotional and social skills.

The excursion was hosted by the Hon. Ladejobi Shuaib-led administration of Odogbolu Local Government in partnership with Detola Abike Mogaji Memorial Foundation (DAMMF), a community social support driven organization with focus on children, women, youth and vulnerable in society.

The initiative was designed for children desirous of familiarizing themselves with historic sites and scenes in the local government so they could become integrated, confident and happy about their community.

According to Shuaib, who was represented by Onabanjo Ayodele Abimbola, Supervisor for Information, Education, Youth and Sport in the local government, “Just as our administration has demonstrated willingness in promoting our values and notable icons of Odogbolu LG with the artistic design of Odogbolu Local Government secretariat fence, “I Know My Odogbolu” initiative is also one of the ways in which we can bring the younger generation closer to the history, culture and tourism sites of Odogbolu Local Government and by extension Ogun State and also key into the efforts of Ogun State Governor, Prince Dapo Abiodun, in the bid to revive, market and sustain our cultural sites, heritage of our dear state to the international world.”

Commissioner for Special Duties, Barr. Femi Ogunbanwo, implored the parents and teachers to embrace the initiative to further educate and enrich the knowledge of their wards and also allow pupils to have practical contact with some very important places in Odogbolu Local Government and Ogun State at large.

Speaking,the promoter of DAMMF and convener of “I Know My Odogbolu” initiative, Mr. Mogaji Olatunde, said,” This is not just an excursion or tourism experience but an avenue of increasing the knowledge base of the children and it is expected to ignite the passion for service, dignity and hard work in the children as exemplified in the life of the legendary Herbert Ogunde.

“The platform provides an opportunity for the children to have fun and also learn at the same time in a relaxed atmosphere while also enjoying the serenity of the environment and city.”

Also speaking, the coordinator of the initiative, Hon. Olajide Dada, said Hubert Ogunde was a legend while he was alive and in death he still lived up to the legendary status and surpassed every thespian’s dream.

He added:”So, it is expedient we go back in time and nurture our kids in the way of the legend and help them live their dreams.”

One of the children, who took part in the excursion, Miss Ogunniyi Jesuferanmi, said:“We thank the Executive Chairman of Odogbolu Local Government, Hon Ladejobi Shuaib, and the Detola Abike Mogaji Memorial Foundation (DAMMF) for the great opportunity. We enjoyed the narratives given to us by our tour guide, who explained to us the life and times Hubert Ogunde on how he projected the image Odogbolu and Ogun State to world.”

admin by — June 17, 2022 in Travel & Tourism 0
Wema Bank Takes Energy Efficiency Campaign To SMEs

Wema Bank Plc is organising a webinar for small and medium enterprises on how they can reduce their energy expenditure and increase profit margin.

The SME webinar with the theme “Managing Rising Energy Costs in Nigeria through Renewable Energy: Strategies for SMEs”, will hold on Friday, June 17, 2022.

According to a statement issued by the bank and signed by the Head, Marketing Communications and Investors’ Relations, Mrs Funmi Falola, the webinar will explore alternate renewable and economical energy sources other than petrol-powered and diesel-powered generators that businesses can use with flexible payment plans.

Besides, she said the webinar will explore business opportunities in the fast-growing renewable energy sector and how Nigerian entrepreneurs can tap into them.

She urged SME owners to register for the webinar using the link https://bit.ly/3lSArBs.

Among the guests who will be on the programme, according to the statement, are Dr. Wiebe Boer, MD/CEO of All On; Mrs. Omobola Omofaiye, Chief Commercial Officer at Arnergy; Mr. Ilan Wolkov, Consultant at the Frankfurt School of Finance and Management; and Mrs. Abimbola Agbejule, Wema Bank’s Head of Corporate Sustainability and Responsibility.

admin by — June 17, 2022 in Power 0
WAPCo Marks Decade Of Commercial Operations

The West African Gas Pipeline Company Limited (WAPCo) will hold a major event in Nigeria to mark the 10th anniversary of the commencement of its commercial operations.

The event is also aimed at appreciating our diverse stakeholders in Nigeria who have supported us through the years to make this ECOWAS vision a reality.

WAPCo started commercial operation in March 2011 and has overcome a challenging decade to become an efficient and dependable transporter of natural gas to customers in Togo, Benin, and Ghana, promoting safe, clean, long-term, and secure power generation from gas supply sources, in both Nigeria and Ghana.

WAPCo’s Managing Director, Greg Germani,said:“WAPCo will be the first to admit as we celebrate 10 years of commercial operations that the first decade was not easy. Thanks to the determination of our talented workforce and collaborative efforts of our key stakeholders, we see marked improvement in the new decade and a clear path to being a world-class pipeline company in a unique region of the world,” says WAPCo’s Managing Director, Greg Germani,

We congratulate our OneWAPCo family members in Nigeria, for their dedication and hard work in the achievement of this milestone. Without the dedication and diligence of a world class workforce that works together as a team across four countries, this feat would not have been attainable.

WAPCo is extremely grateful to the Federal Government of Nigeria, the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation, its shareholders, customers, partners, regulators, the traditional leaders, and community stakeholders for their invaluable support over the period.

“The strong collaborative support we get from governments across the four countries and our customers is setting us on a path to achieve success in the first phase of the ECOWAS vision for cleaner and more efficient energy across the West Africa region,” says Greg Germani.

This support resulted in some major achievements that have placed WAPCo in an excellent position to fulfill the company’s mission to transport natural gas from producers in Nigeria and Ghana to consumers in Benin, Togo, and Ghana in a safe, responsible, and reliable manner.

Notable among these achievements are the significant improvement in reliable gas supply from Nigeria, the implementation of an Operational Excellence Management System, the completion of the Takoradi to Tema Interconnection Project in Ghana that allowed the addition of gas supply from oil & gas fields in Western Ghana to the WAGP in 2019.

WAPCo’s key business partner, the Nigerian Gas Company Limited (NGC), was able to mitigate issues on their Escravos to Lagos Pipeline System (ELPS) allowing them to lift a prolonged force majeure on the ELPS, which had been affecting gas supply to the WAGP from the east. Due to this development, WAGP is now in a better position to transport record volumes of gas to customers.

With the improvement in gas supply from Nigeria, the completion of Takoradi to Tema Interconnection Project in Ghana and the growing demand for use of gas in power supply in Ghana, Togo and Benin, the WAGP was able to set a new record on monthly average gas deliveries to customers across the pipeline of over 215 MMscfd in March 2022.

WAPCo’s continued focus on Operational Excellence and a strong safety culture allowed it to achieve zero recordable incidents for the past 8 years and 9 million workforce hours without a recordable incident, helping to protect our workforce and the communities we operate in.

As the company enters another decade of Commercial Operations, we look forward to greater achievements and impact in the sub-region, fulfilling our mission as an international company transporting natural gas in a safe, responsible, and reliable manner.

admin by — June 17, 2022 in Oil&Gas 0
Oil Marketers Threaten To Hike Fuel Price As Queues Return To Ibadan

The South West zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has threatened to direct its members to increase petrol pump price to N180 per litre.

The development follows inability of its members to buy petroleum products from any of the government depots, prompting them to resorted to getting supplies from private depot owners, who had capitalised on the situation to exploit them.

IPMAN zonal chairman, Alhaji Dele Tajudeen, who disclosed these in Ibadan lamented that all the depots in the zone had refused to load trucks belonging to its members since January 2022, said that the private depot owners’ loading price is between N157 and N158, which is above the price that government depots would sell to the petroleum marketers.

He added:“So, by the time we add the cost of transportation to the purchasing amount, we will be arriving at a sum above N165, which is the government-approved pump dispensing price.But sad enough, the regulatory agency appeared incapacitated to control and compel these private depot owners to sell at the government’s approved price for us.

“As of today, the purchasing price of diesel has increased by 400%. Again, I want members of the general public to know that cost of transporting the product ranges between N6 to N8 and N10 depending on where the products are being transported to from the Lagos private depot where we make purchases.

“I wish to equally intimate you that making purchases from these private depot owners is not the ultimate end, we also have some overhead costs to bear like running an electricity generator to power our filling stations; paying the staff salaries, as well as servicing the bank loans among other costs.

“So, by the time we have to add the cost of transportation with the purchasing amount, this situation clearly implied that we as independent marketers will be left with no other option than to dispense the products for nothing lesser than N175 to N180 for customers in the Lagos to Ibadan axis, while those within the Ogbomoso and Ilorin axis may have to buy at a dispensing pump price of N200 per litre”.

Meanwhile, long queues have resurfaced in Ibadan, the Oyo state capital causing anxiety and hardship for residents .

Private cars, commercial vehicles and others were seen joining long queues in all the fuel stations visited.

Some of the areas in Ibadan included Bodija, Mokola, Sabo, Agodi Gate, Secretariat Road and Total Garden.

Others are Sango, Dugbe, Iyaganku and Queen Elizabeth Road, Apete, Awotan, Ijokodo, Polytechnic Road and Adamasingba.

Most filling stations within the metropolis that dispensed petrol on Wednesday and in the early hours of Thursday were greeted with long queues.

admin by — June 17, 2022 in Oil&Gas 0
Court Orders Arbitration In Akinyanmi, Lekoil Cayman Suit

The New Jersey court hearing the application challenging the hostile ouster of Lekan Akinyanmi as the Chief Executive Officer of Lekoil Cayman Limited, on June 14, 2022, has ordered a stay of all proceedings in the matter pending the arbitration the court has ordered.

Akinyanmi, Chief Executive Officer of Lekoil Nigeria Limited, filed an action in the Superior Court of New Jersey on September 24, 2021, with case number MER-L-001733-21, claiming breach of contract in the termination of his employment contract through a process fraught with irregularities and for which he insists Lekoil Cayman Limited is owing him.

In response to the suit, Lekoil Cayman Limited challenged the jurisdiction of the New Jersey court to adjudicate the matter and prayed the court to grant arbitration.

In the event that the arbitrator decides that Lekoil Cayman waives its right to arbitration, then it is expected that the parties will return to the New Jersey court for a decision on the matter of its jurisdiction, as well as the original suit brought by Lekan Akinyanmi against Lekoil Cayman.

A statement said:”This is in contrast with the blatantly misleading release by Lekoil Limited (“Lekoil Cayman”) via the Regulatory News Service of the London Stock Exchange (RNS 86980) on June 14, 2022, claiming to have won the case.In the light of this deliberate misrepresentation, Lekoil Nigeria Limited has advised the Board of Lekoil Cayman to endeavour to stick to the facts and truth in future releases”

admin by — June 17, 2022 in Law/Human Rights 0
Tinubu Takes Over Buhari’s Campaign Office

Asiwaju Bola Ahmed Tinubu, Presidential candidate of the All Progressives Congress (APC) has inherited the presidential campaign office used by President Muhammadu Buhari in 2019.

The office in Abuja Central Area, was donated to the APC flagbearer days after he was elected at the convention in Abuja.
It is the second campaign facility the Asiwaju has attracted since winning the party’s ticket a week ago.

Governor Yahaya Bello had earlier donated his presidential campaign office to Asiwaju Bola Tinubu soon after the latter emerged

According to a statement by Bayo Onanuga Director, Media & Communication of Tinubu Campaign Organisation , House of Representatives member and leader of the Tinubu Support Group, Hon. James Faleke,the donated office will become the Tinubu Campaign Headquarters, while other offices currently in existence will become annexes.

The office in the Central Area of Abuja is equipped with ICT data base, call centre and furnishings.

admin by — June 17, 2022 in Politics 0