All Posts in "Day: July 21, 2022"

Nigeria To Spend N6.72tr On Subsidy Next Year

The Federal Government will earmark N6.72trillion for fuel subsidy in 2023 ,Mrs Zainab Ahmed, the Minister of Finance Budget and National Planning,has said.

The Minister ,who disclosed this in Abuja on Thursday during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation,stated the government has projected fiscal outcomes in the medium term under two scenarios based on the underlying budget parameters/assumptions.

She said under the first scenario, the subsidy on Premium Motors Spirit is estimated at N6.72 trillion for the full year 2023”,adding that this “will remain and be fully provided for by the NNPC on behalf of the federation”.

The second scenario the minister explained is that “petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2021, in which case only N3.36 trillion will be provided for”.

She cautioned that both scenarios have implications for net accretion to the Federation Account and projected deficit levels.

She noted: “There will be tighter enforcement of the performance management framework for Government Owned Enterprises (GOEs) that will significantly increase operating surplus/dividend remittances in 2023”.

She also announced that the Nigerian National Petroleum Company Limited which had funded the fuel subsidy until last month, would henceforth leave that responsibility to the federation.

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She added that this would even create a greater strain on the fiscal position of the federal government, describing fuel subsidy as unsustainable.

admin by — July 21, 2022 in Oil&Gas 0
Electricity: NERC,NOA Sign Pact On Improved Enlightenment Of Consumers

The Nigerian Electricity Regulatory Commission (NERC) has signed pact with the National Orientation Agency (NOA) as part of the measures to effectively sensitize electricity consumers across the country,

Engr. Sanusi Garba, the Chairman of NERC, said the Nigerian Electricity Supply Industry (NESI) requires more sensitization and Nigerians need knowledge on how they get electricity.

He noted that the NOA platform is for educating Nigerians on electricity theft, safety and other issues.

Represented at the event by Dafe Akpeneye, the Commissioner, Legal, Licencing and Compliance, NERC, the Chairman of NERC said: “We have a very large country a population of 200 million people across 774 Local Government Areas and we are just one agency.”

Dr Garba Abari, the Director General of NOA, said in spite of efforts the government has put in place to address electricity gaps, there are still issues and that citizens need to be educated on these efforts.

He said: “There is a huge amount of ignorance among our populace on how things are done especially in technical areas like electricity supply. To make citizens aware and participate in the conversation, they need to be sensitised so that there will be understanding from the government, the consumers and service providers to be on a common vision.”

Aisha Mahmud, the Commissioner, Consumers Affairs at NERC, said NERC had recently signed an MoU with the federal Competitions and Consumer Protection Commission (FCCPC) on resolving consumer complaints.

admin by — July 21, 2022 in Power 0
Lawmakers Urge BPE To Stop Sales of 5 Power Plants

The House of Representatives on Thursday urged the Bureau of Public Enterprises to halt planned sale of five power plants belonging to the Niger Delta Power Holding Company.

The power plants are located in Calabar (Cross River State), Ihorbor [Edo State], Olorunsogbo, Omotosho and Geregu.

The decision of the House to halt the sales was sequel to a motion of urgent public importance moved by the Chairman of the House Committee on Power, Magaji Da’u Aliyu (APC, Jigawa) .

Moving the motion, Rep. Aliyu said the power plants were constructed under the National Integrated Power Project (NIPP).

According to him, the National Council on Privatisation and Board of Directors of the Niger Delta Power Holding Company (NDPHC) in collaboration with the Bureau of Public Enterprises have advertised a request for expression of interest to purchase the power plants.

He said:”The assets belong to the three tiers of government, federal government 47% while states and local governments own 53% of the assets.

He added that the federal government is adamant on selling the assets to fund the deficit in the budget despite not getting the consent of other shareholders.

“Federal Government insists on proceeding with the sale of these assets despite the fact that the consent of other shareholders; States and Local governments have not been granted,” he said.

He further explained that the federal government made a similar attempt in 2013, however, the process failed to go through due to obstacles.

According to Aliyu, the timing of the privatization is not right in view of the economic situation around the world.

He said:“The current timing of the privatization even if it is approved by the prospective shareholders may not enable the greatest financial value due to current commercial and technical constraints in the industry associated with poor state of transmission and distribution capacity, underpayment /liquidity in the market aggravated by global economic recession which will make the assets to be sold at undervalue price and cause avoidable lost to the shareholders”

Speaking on the motion, Uzoma Abonta (PDP, Abia),urged the committees on power and privatization to investigate issues surrounding the assets.

The House cautioned the Director General BPE, Alex Okoh to desist from any act to facilitate the sale of the five power plants until duly authorised by the shareholders in a formal meeting in line with the companies and Allied Matters Act 2020.

admin by — July 21, 2022 in News 0
Extra Marital Affairs: Osun Police Declare Wife Wanted For Setting Husband Ablaze

Osun State Police Command has declared a middle age woman simply identified Ifeoluwa, wanted for setting her husband ablaze and culminated in the latter’s death.

The State Public Relations Officer, SP Yemisi Opalola disclosed this to newsmen in Osogbo,said Ifeoluwa was being declared wanted in connection with killing and setting her husband ablaze

The victim, Bolu Bamidele, died as a results of pains he suffered from severe burnt.

Bamidele, popularly known as Teebam, was said to have returned to Osogbo, the capital of Osun State from Cairo, Egypt, to give his wife a nice treat on her birthday.

The wife was said to habebdiscovered that Bamidele had cheated on her and even had a child outside their union.

Ifeoluwa was said to have gone through her husband’s telephone and discovered the messages the deceased allegedly exchanged with another woman on WhatsApp.

An argument ensued after confronting him with the information.

The lady was said to have angrily written on her WhatsApp stories that she would be taking drastic action.

She had said that her man has “pushed her to the edge” and that people would weep over the two of them before daybreak.

Bolu was reportedly set ablaze in his home at Koka village on Sunday, with all his belongings destroyed.

He was rushed to the hospital and died days later. The deceased was buried amid tears on Wednesday in Osogbo in the presence of family and loved ones.

admin by — July 21, 2022 in Crime/Metro 0
FG Inaugurates Committee To Raise $100bn For MSMEs Financing

The Federal Government on Thursday inaugurated Finance Committee for the Wholesaler Impact Investment Fund charged with the responsibility of raising $100billion to sustainably close the gaps in financing the Micro Small and Medium Enterprises in Nigeria through impact investing.

Prince Clem Agba, Minister of State for Budget and National Planning, who inaugurated the committee in Abuja, explained that the concept of Impact Investment has evolved in various climes, as a sound approach in leveraging private investments for jobs and wealth creation, balancing inequities and fostering long-term structural change through financing of Micro, Small and Medium Scale Enterprises(MSMEs).

He implored the committee to unlock local private investments using capital from public sources and to delve into strategies for attracting investments from Development Finance Institutions (DIFs) into the impact investing ecosystem.

He said: “In outlining strategies for achieving development aspirations, the National Development Plan 2021 – 2025 has clearly identified opportunities for mainstreaming the concept for productivity in various areas of the economy for improved activities through impact investing in upscaling renewable energy capacities, utilization of our natural resources for import substitution and enhanced foreign exchange earnings, building a circular economy, improving the bio-economy, as well as, strengthening preparedness and responsiveness to disaster management across the geo-political regions.

“It is worthy of note that the capital deployed for impact investing in Nigeria considerably increased by 147% from $1.9 billion in 2015 to $4.7 billion in 2019 before a decline to $2.7 billion in 2021.This decline is attributable to economic shocks related to the COVID-19 pandemic. Considering the potentials for returns and positive public benefits, the Government will continue to support the private sector and realign the current extant regime for robust impact investing in the country.

“As an aftermath of the recent launch of the Design for the Wholesale Impact Investment Fund, the Nigerian Advisory Board for Impact Investing and members of the Nigerian Competitiveness Support Programme (NICOP) have appointed me as the Official Champion of the viable Wholesale Impact Investment Fund in Nigeria.

“This is a challenge which calls for the Government collaborating with the private sector and international development partners for adequate implementation. In this regard, a Wholesale Impact Investment Fund is conceived to raise about $100 billion to sustainably cover the gaps in financing our MSMEs through impact investing.”

The minister further explained that the key mandate of the Finance Committee which is specifically to secure government’s commitment and contribution to the initial seed capital of the proposed Fund and provide guidance to the Nigerian Advisory Board for Impact Investing on engagements with the government.

He stated that the Committee was expected “to unlock local private investments using capital from public sources and to delve into strategies for attracting investments from Development Finance Institutions (DIFs) into the impact investing ecosystem.”

He pointed out that the Committee which has till December 2023 to complete its assignment has the following Terms of Reference which include to “Review the proposed framework and recommendations of the Wholesale Impact Investment Fund;Provide guidance and facilitate the Government’s consent/commitment to contribute up to 90% of the seed capital of the fund, i.e N100 billion;Identify other relevant MDAs to join the Committee and Lead Government engagement on the Fund.

He further stated that the membership of the Committee is drawn from relevant Ministries, Departments and Agencies as well as the Nigerian Advisory Board for Impact Investing under the Chairmanship of the Permanent Secretary, Federal Ministry of Finance, while the National Planning Arm of the Ministry will serve as the Secretariat.

Also speaking, Mrs. Toyin Sanni, Chairperson, National Advisory Board for Impact Investing, lauded the initiative.

Sanni said it is an important solution for closing gaps in financing MSMEs in Nigeria, as it would benefit those at the bottom of the pyramid in MSMEs sub-sector.

She expressed optimism that the partnership with government would make a big difference in the sector.

Responding, Chairman of the Finance Committee for the Wholesaler Impact Investment Fund, Aliyu Ahmed, pledged that the committee would work assiduously in realising the objectives for setting up the Committee.

admin by — July 21, 2022 in News 0
Danbatta Elected Into Council of Nigerian Academy of Engineering

The Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, has been elected to the Governing Council of the Nigerian Academy of Engineering (NAE).

The Council of NAE,which is the highest decision-making body of the Academy,oversees the country’s highest professional bodies in science, technology and engineering.

Notice of the election, conveyed by Honorary Secretary of the Academy, Engr. Christy Adelowo, indicated that Danbatta, and other council members will serve for two years,a statement from Reuben Muoka
Director, Public Affairs,NCC said.

Danbatta, a professor of telecommunications engineering with several decades of experience in academia and professional practice, was inducted a Fellow of NAE on June 21, 2018, during the Annual Lecture and Investiture of 10th President of the Academy.

He expressed appreciation to the Council for considering him worthy to serve the profession in another capacity.

“The Council can count on my intellectual and moral support towards the achievement of the overall objectives of the Academy”, Danbatta said.

His contributions to the engineering profession has been eloquently attested to, with a number of public lectures, including one at the Academy on November 9, 2016, titled “The National Broadband Plan as Catalyst for Social and Economic Transformation: The NCC Mandate”. On June 23, 2021, Danbatta received a special recognition from the NAE in appreciation of his contributions through remarkable implementation of various programmes of the Commission which has seen very purposeful collaborations with the academia and other professional institutions in science and technology towards the advancement of the socio-economic development of Nigeria.

Danbatta has played similar roles in the past, including his two terms as a Member of the Council for the Regulation of Engineering in Nigeria (COREN).

He is a Fellow of the Nigerian Society of Engineers (FNSE), Fellow of the Renewable and Alternative Energy Society (FRAES), and Fellow of the Nigerian Institute of Electrical and Electronics Engineers (NIEEE).

 

admin by — July 21, 2022 in Next Level 0
CBN Clears Air On Illicit Conversion Of Currency

The Central Bank of Nigeria (CBN) has clarified the statement made by the Governor, Godwin Emefiele, at the recent post-Monetary Policy Committee (MPC) meeting briefing, warning bank customers against converting the naira to foreign exchange, for electioneering purposes.

Its Director, Corporate Communications Department, Mr. Osita Nwanisobi, made the clarification in a chat with newsmen in Lagos, on Wednesday.

He explained that the clarification was necessary on account of attempts by persons to deliberately misrepresent the import of Mr. Emefiele’s caution on electioneering spending by the political class.

He said the warning by his boss was meant for those who sought to convert the Naira from their accounts into foreign exchange for election campaign and not those who seek to exchange the currency for legitimate purposes such as payment for tuition and other personal expenses.

He maintained that the apex bank also frowned at the conduct of unauthorized movement of funds within and outside the country and would use tools at its disposal to check the movement of illicit funds.

The bank had discretionary power to prevent persons from conducting unauthorized transactions, he said,adding that the CBN was within its statutory limits to mop up the excess liquidity in the vaults of the institutions its regulates, so they do not get involved in speculative activities.

He implored bank customers to shun unauthorized movement of funds for currency conversion in order not to fall foul of the extant laws of the land.

He also admonished Nigerians to be more patriotic as it relates to the Naira, noting that it is the duty of every citizen to support the CBN in preserving the intranational value of the Naira.

admin by — July 21, 2022 in Banking&Finance 0
Global Electricity Demand Growth Waning,Says Report

The International Energy Agency latest electricity market report has said world’s electricity demand growth is slowing sharply in 2022 from its strong recovery the previous year as economic growth weakens and energy prices soar following Russia’s invasion of Ukraine.

It also said global electricity demand is expected to grow by 2.4% in 2022 after last year’s 6% increase, bringing it in line with its average growth rate over the five years prior to the Covid-19 pandemic.

While electricity demand is currently expected to continue on a similar growth path into 2023, the outlook is clouded by economic turbulence and uncertainty over how fuel prices could impact the generation mix.

Strong capacity additions are set to push up global renewable power generation by more than 10% in 2022, displacing some fossil fuel generation. Despite nuclear’s 3% decline, low-carbon generation is set to rise by 7% overall, leading to a 1% drop in total fossil fuel-based generation.

As a result, carbon dioxide (CO2) emissions from the global electricity sector are set to decline in 2022 from the all-time high they reached in 2021, albeit by less than 1%.

According to the report,in the first half of 2022, average natural gas prices in Europe were four times as high as in the same period in 2021 while coal prices were more than three times as high, resulting in wholesale electricity prices more than tripling in many markets.

The IEA’s price index for major global electricity wholesale markets reached levels that were twice the first-half average of the 2016-2021 period.

Due to high gas prices and supply constraints, coal is replacing natural gas for power generation in markets with spare coal plant capacity, particularly in European countries seeking to end their reliance on Russian gas imports. To secure energy supplies following Russia’s invasion of Ukraine, some European countries have delayed coal phase-out plans and lifted previously imposed restrictions on coal.

Globally, coal use for power is expected to increase slightly in 2022 as growth in Europe is balanced by contractions in China, due to strong renewables’ growth and only a modest rise in electricity demand, and the United States, due to constraints on supply and coal power plant capacity. Gas power is expected to fall by 2.6% as declines in Europe and South America outweigh growth in North America and the Middle East.

“The world is in the midst of the first truly global energy crisis, triggered by Russia’s invasion of Ukraine, and the electricity sector is one of the most heavily affected,” said IEA Director of Energy Markets and Security Keisuke Sadamori.

He added:“This is especially evident in Europe, which is experiencing severe energy market turmoil, and in emerging and developing economies, where supply disruptions and soaring fuel prices are putting huge strains on fragile power systems and resulting in blackouts. Governments are having to resort to emergency measures to tackle the immediate challenges, but they also need to focus on accelerating investment in clean energy transitions as the most effective lasting response to the current crisis.”

 

admin by — July 21, 2022 in Power 0
Abiodun Deplores Proliferation Of Fake Monarchs

Ogun State Government has expressed worries over the proliferation of illegal traditional rulers in the state.

The government also expressed dissatisfaction against some people procuring fake appointment letters and parading themselves as monarchs without following laid-down procedures as stipulated by the laws governing Obaship institution in the state.

Governor, Dapo Abiodun,conveyed his feeling at the third quarter statutory meeting of the Ogun State Council of Obas, held at the Obas Complex in Oke-Mosan, Abeokuta.

Those involved in such illegal act do not mean well for the state and traditional institution,he said,adding that would not only bring confusion to the state but ridicule the traditional institutions.

Abiodun, who was represented at the event by Secretary to the State Government (SSG), Tokunbo Talabi, declared that the present administration would no longer condone such unscrupulous activities.

According to him, the traditional institution remains a veritable platform to entrench good governance, hence, any administration that desires sustainable development must collaborate with it.

He noted that his administration had continued to reverence the traditional rulers as strategic partners in its commitment for an inclusive, just, fair, equitable, transparent, accountable and obedience to the rule of law.

“We shall not fold our arms and allow a few unscrupulous elements, under our watch, to tarnish the image of our state, rubbish our traditional institutions, thereby bringing it to a state of ridicule,” he declared.

He assured the traditional rulers of the administration’s relentless commitment to their welfare and well-being as it did on the recent 50 per cent increment in the monthly subvention of the four traditional councils.

In his welcome address, Permanent Secretary, Ministry of Local Government and Chieftaincy Affairs, Mr. Kolawole Fagbohun said the ministry had been working assiduously in ensuring that the welfare of monarchs are guaranteed and vacant stools filled.

He said the ministry had successfully pushed through, in line with relevant laws and observance of customs, the installation of Orimolusi of Ijebu-Igbo and Negbuwa of Ibido who were also part of the meeting.

admin by — July 21, 2022 in News 0
FG To Indigenous Firms: Develop Nigerian Upstream Sector Through Acquisition Of IOC Assets

The Federal Government has implored Indigenous Petroleum Producers Group (IPPG) to take advantage of the ongoing divestments by International Oil Companies (IOCs) to significantly increase their investments in oil and gas assets in the country!

Minister of State Petroleum Resources Chief Timipre Sylva, disclosed this , at the Nigerian Association of Petroleum Explorationists (NAPE) divestment workshop with theme ‘The Big Sale:Opportunities In The Nigerian Oil and Gas Industry From Asset Divestments’

He emphasized the need for IPPG should see the divestments by IOC in oil and gas assets in Nigeria as opportunity to step in to fill the gaps in the sector.

According to a statement by Horatius Egua,
Senior Adviser, Media and Communications, the Minister of State said: “The Indigenous Petroleum Producers Group (IPPG) and other potential investors, should therefore perceive the IOCs’ divestments in some of the upstream assets as opportunities, rather than a threats, to become more involved in the development of the Nigerian upstream petroleum sector”.

He implored IPPG members to strive to move their present contribution “in production and reserves to at least 50%, from about 30% for crude oil and 20% for gas producton, as well as 40% and 32% for oil and gas reserves, respectively”.

Sylva, who spoke virtually stated that the Federal Government was desirous to create the enabling environment for IPPG and other interested parties to play big in the ongoing divestments in the sector.

“To facilitate this, the Ministry of Petroleum Resorces, in fulfilment of its mandate to “Promote an enabling environment for Investment in Nigerian Petroleum Industry” as enshrined in Section 3 (e) of the PIA, is setting up a one-stop Oil and Gas
Investment centre to create an enabling business environment for would-be investors,” he said.

He assured potential investors “that divestments will be adequately managed to ensure that Nigeria remains a prime destination for competitive oil and gas business. We will continue to listen to our stakeholders to ensure the right steer for our industry”.

He maintained that despite the worldwide clamor for transition to renewable energy sources, “it is certain that anticipated economic growth and rising global population, especially in Asia and Africa, will significantly push energy demand upward to a level that renewable energy sources only
cannot meet by 2050. As global energy consumption grows, it is apparent that Oil and Gas will remain significant components of future energy mix”.

“Therefore, there is ample opportunity for profitable investments into the Nigerian Petroleum Industry, with its enormous Oil and Gas reserves of over 37 billion barrels and about 209 trillion cubic feet (TCF) respectively,” he stated further.

Sylva said the passage and signing into law of the Petroleum Industry Act in 2021 (PIA) has cleared the path of every possible obstacles that would have hitherto hindered investment in the oil and gas sector adding that “the PIA is a supply-side enabler, crafted to provoke and trigger commercial interests and investments in the Nigerian Petroleum Industry”.

He stated further that “The Act also has generous incentives to enable development, distribution, penetration, and utilisation of oil and gas”.

The minister noted that the “discussion on the divestment in Nigeria’s oil and gas is highly crucial at this critical time in the Nigerian oil and gas industry”.

Sylva traced divestment in Nigeria’s upstream oil and gas sector by IOCs to 2006 adding that it increased in 2010 mainly due to the hostile environment arising from the menace of crude oil theft.

“This, without doubt, made some IOCs to re-balance their portfolios to take advantage of the incentives for offshore oil and gas development under the Deep Offshore and Inland Basin Production Sharing Contract Act and PIA, and to avoid host community issues related with onshore and shallow water leases and licenses,” he said.

admin by — July 21, 2022 in Oil&Gas 0