All Posts in "Day: January 12, 2024"

Afreximbank Disburses US$2.25bn Crude Oil Prepayment Facility

Mohammed Shosanya

African Export-Import Bank (Afreximbank) has successfully arranged a syndicated US$3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).

An initial disbursement of US$2.25 billion has been made. A second tranche of US$1.05 billion is expected to be disbursed subsequently.

This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023. Investors were keen to consider ticket sizes of US$250 million and US$500 million amidst current headwinds and year-end pressures in the loan markets. The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR).

The transaction structure has an embedded price balance mechanism where 90% of all excess cash from the sale of the committed barrels (after debt service) will be released while the balance of 10% will be used to prepay the facility, effectively shortening the final maturity of the facility and freeing cashflow from future pledged cargoes for use by Nigeria.

The initial participating lenders are Afreximbank, Africa’s multilateral trade finance institution, Gunvor International BV, a Geneva-based multinational energy and commodities trading company and Sahara Energy Resources Limited, an African-owned, leading international energy and infrastructure conglomerate.

Afreximbank’s extensive structuring and technical experience in arranging similar complex oil & gas financing facilities in Angola, Republic of Congo, South Sudan, Chad Egypt, Cote d’Ivoire. Ghana, etc. was brought to bear in the successful closure of the facility, notwithstanding a very challenging market environment.

The Bank acted as Sole Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent, while United Bank for Africa Plc (“UBA”) acted as the Local Arranger and Onshore Account Bank.

Commending the successful financial close, Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, explained that “this facility further demonstrates the Bank’s commitment to supporting African economies when such assistance is most needed. Afreximbank stands by its member countries in good and in difficult times. The disbursement of the initial US$ 2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support Industrialization and trade development efforts. We are pleased that despite the typical year-end encumbrances, our partners and investors rallied and raised the funds required in record time. We thank them for their support”.

The NNPCL Group Chief Executive Officer, Mr. Mele Kolo Kyari, commented on this landmark transaction, noting that “the proceeds of the facility have been made available to the Federal Republic of Nigeria as one of several efforts towards improving macro-economic stability. The participation of global, international and regional syndication firms is a further testament to the lending market’s appetite for financing sponsored by NNPCL and signifies solid market confidence in Nigeria.”

The Group Managing Director/CEO, United Bank for Africa (UBA), Oliver Alawuba said that “UBA is delighted to participate in this transaction which accentuates its commitment to providing necessary interventions and solutions towards addressing economic issues in Nigeria”.

admin by — January 12, 2024 in Oil&Gas 0
Police Arrest One Chance Couple In Abuja

Mohammed Shosanya

Police Operatives from Utako Police Divisional Headquarters, Abuja have arrested the trio of Chukwudi Okorie aged 51 years, Chibuzor Okorie 43 years both husband and wife and one Esther Gabriel aged 38 years in connection with series of robbery, specifically one chance activities within the FCT and its environs.

The suspects,who all resided at Akaraka Gwagwa, FCT, were arrested between between 9/1/2024- 10/1/2024, according to a statement signed by the Command Spokesperson, SP Josephine Adeh, on Thursday.

She said, “During interrogation, suspects confessed to have carried out series of one chance related activities in the FCT before their apprehension.

“A blue Mazda car with Reg No. FCT 590 EV, an operational vehicle used by the syndicate to perpetrate their heinous acts was recovered from one of the suspects.

“While investigation is still ongoing to apprehend other accomplices, the Commissioner of Police FCT, CP Haruna G. Garba psc, wishes to reiterate his unflinching commitment to ensuring FCT remain a safe and peaceful place for residents to stay without fair from any quarters of the Territory.

“He equally urges the populace to keep up rendition of distress call and report suspicious activities through the following emergency lines: 08032003913, 08061581938, 07057337653, and 08028940883. PCB: 090222223527.”

admin by — January 12, 2024 in Crime/Metro 0
Scandal: Tinubu Suspends National Social Investment Programme

Mohammed Shosanya

President Bola Ahmed Tinubu has suspended all administered programmes by the National Social Investment Programme Agency (NSIPA).

According to Segun Imohiosen,Director Information, Office of the Secretary to the Government of the Federation,the suspension was to allow for ongoing investigation of alleged malfeasance in the management of the agency and its programmes.

The Presidency said all four (4) Programmes administered by NSIPA, viz; N- Power Programme, Conditional Cash Transfer Programme, Government Enterprise and Empowerment Programme and Home Grown School Feeding Programme (the “Programs”) have been suspended for a period of six (6) weeks in the first instance.

Imohiosen also confirmed that President Tinubu has raised significant concerns regarding operational lapses and improprieties surrounding payments to the Programs’ beneficiaries.

The President has constituted a ministerial panel to conduct a thorough review of the Agency’s operations with a view to recommending necessary reforms of the NSIPA.

He said during the period of this suspension, all NSIPA-related activities, including but not limited to all distributions, events, payments, collaborations and registrations are now frozen.

The President wishes to assure the stakeholders and all Nigerians that his administration remains committed to a swift and unbiased process that will ensure that, going forward, social intervention programmes will work exactly as intended, to the benefit of the most vulnerable Nigerians,” Imohiosen noted in the statement sent to reporters on Friday.

admin by — January 12, 2024 in News 0
NUPRC,Police To Upscale War Against Oil Theft

Mohammed Shosanya

The Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission, Engr Gbenga Komolafe has sought an enhanced collaboration with the Nigerian Police in its efforts towards curbing the illicit activities that have plagued the nation’s oil and gas industry.

He advocated urgent need for a united front against the escalating challenges posed by menace when he visited the Inspector General of the Nigerian Police Force, kayode Egbetokun in his office at the Force Headquarters Abuja, on Thursday.

Mrs Victoria Okefe,the Manager, Corporate Communications,quoted Komolafe as conveying this in a statement on Friday.

The NUPRC boss underscored the importance of joint efforts to safeguarding Nigeria’s commonwealth.

After briefing the Inspector General on the efforts made so far by the Commission, in collaboration with other security agencies and relevant agencies of government, the CCE said that arresting the menace requires a joint approach and strategic coordination which is why he is seeking partnership with the Nigerian Police to leverage its expertise in law enforcement, particularly in apprehending and prosecuting perpetrators,the statement said.

The Inspector General acknowledged the severe impact of oil theft on both the financial landscape and the reputation of the country and agreed on the need for urgent action to deal with the situation for the sake of the growth and stability of the country’s national.

admin by — January 12, 2024 in Oil&Gas 0
Police Set For 14th Biennial Games In Ibadan

Mohammed Shosanya

The Nigeria Police Force has commenced intensive plans towards its 14th Biennial Games, scheduled to hold from 25th February to 2nd March 2024, in the beautiful city of Ibadan, Oyo State.

The Force Sports Officer, CP Patrick Atayero, and heads of various committees are expected to converge in Ibadan from Friday 12th January to Sunday 14th January 2024 for meetings and assessments of facilities, in conjunction with the Oyo State Government’s team to perfect the arrangement for a successful sports festival in Oyo State,a statement said.

The last edition, 13th Biennial Police Games, was held in uyo, Akwa Ibom State from 23rd to 30th of November, 2022.

admin by — January 12, 2024 in Sports 0
FG Commissions 300KWp Power Project In Kainji

Mohammed Shosanya

The Federal Government has commissioned a 300KWp Solar PV pilot project in Kainji ,Niger State.

The development is in furtherance of President Bola Tinubu’s Renewed Hope Agenda to provide adequate , reliable and quality electricity to businesses and households in the country,

Commissioning the project, the Minister of Power, Chief Adebayo Adelabu said the project will primarily increase power generation capacity, lower electricity costs,while also fostering enhanced collaboration between the main concessionaire, Mainstream Energy Solution and its Chinese partner, HEDC in the renewable energy field.

Bolaji Tunji, Special Adviser, Strategic Communication and Media Relations to the Minister,who conveyed this in a statement,said that the power project comes with 675KWh Battery Energy Storage System (BESS), which is an integral part of the extension of 1G3 and 1G4 under the rehabilitation of the 1G9 in Kainji HPP project.

The Minister,who said efforts were progressing in achieving President Tinubu’s turnaround agenda on supply of reliable and quality power said the Power Ministry’s objective is to meet power demand by ensuring improved distribution and transmission infrastructure to minimize technical and commercial losses, closing the metering gap and resolving the liquidity, power theft and vandalism challenges.

He was quoted in the statement as saying that the destruction of some power towers around the country has been reported to the National Security Adviser (NSA) in order to strengthen security around the power infrastructure.

He added:“It is of no use to expend so much energy in providing power facilities if the delivery channel is weak, that is why the Ministry is concentrating on improvement of the transmission and distribution capacity.”

Speaking on power theft and destruction of power infrastructure, Adelabu emphasized the need for Nigerians and the different Communities where the facilities are located to protect them.

He said:“What is the essence of government and private companies expending resources on these power facilities while some elements within the society will deliberately move to destroy the facilities which are national assets. What we witnessed towards the end of 2023 was disheartening. Some of the power towers were brought down with loss of lives, in some cases, this is quite unfortunate. We should take it as a personal and collective responsibility to protect the infrastructure”.

He added that plans are also underway to wield the big stick on power theft through adequate legislation in order to serve as deterrent to others.

The Minister also revealed that efforts have begun to bridge metering gaps in the country.

“Presently, we have about 12 million electricity users, but only about five million are metered.As we are all aware, the President set up the Presidential Mass Metering Initiative of which I am the chairman, we are working assiduously on this initiative to bridge the metering gap.”

Adelabu said the government will continue to provide enabling environment for the private sector to leverage on opportunities inherent in government policies, incentives and regulations for sustainable power supply for economic development and improvement of the standard of living of Nigerians, especially rural dwellers adding that government had also come up with relevant policies and programmes in order to provide direction in ensuring power availability to the people.

Speaking earlier, Managing Director of Mainstream Energy Solution, Engineer Lamu Audu said the project is in line with the National Renewable Energy and Energy Efficiency policy of the Federal government which sets out the blueprint to increasing the country’s renewable energy development by 2030.

He said the pilot project is the beginning of Mainstream’s integration of Variable Renewable Energy into its core business, adding that plan is at an advanced stage to build a 450MWp and 150MWp Solar PV at Kainji and Jebba Hydro Power Plants (HPPs).

He implored the government to continue to provide the enabling environment that would attract more funding from private investors.

admin by — January 12, 2024 in Power 0
Supreme Court Returns Abba Yusuf Kabir As Kano Governor

Mohammed Shosanya

The Supreme Court on Friday, declared Yusuf Abba Kabir of the New Nigeria Peoples Party (NNPP) as the validly elected governor of Kano state.

Justice Inyang Okoro gave the judgement in an appeal by Governor Yusuf Kabir, challenging the decision of the Court of Appeal Abuja, which had on November 17, sacked him from office.

The Appeal Court had disqualified Governor Yusuf Kabir him from the Kano governorship race, and went ahead to declare Nasiru Gawuna of the All Progressives Congress (APC), winner of the 18 March governorship election in Kano State.

However,in a lead judgement delivered by Justice John Inyang Okoro, the Supreme Court unanimously held that the tribunal never found that Yusuf Kabir was not qualified to contest the election.

Justice Inyang Okoro held that issue of sponsorship and nomination of candidate falls under the domestic affairs of a political party.

He insisted that the tribunal lacked the jurisdiction to entertain a matter that bordered on the internal affairs of a political party.

He advised Judges on election panels to be more meticulous in their adjudicatory functions to avoid the mess and ugly situation witnessed in the Court of Appeal, Kano.

“There is merit in this appeal and it is hereby allowed. I shall make no orders as to cost.As agreed, all the other appeals in this case abide by this decision.

“The judgement of the lower court is hereby set aside” Justice Inyang Okoro held.

admin by — January 12, 2024 in Politics 0
Why Nigerian Upstream Sector Is Challenged-NUPRC

Mohammed Shosanya

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe,has said that the Nigerian upstream sector is facing severe pressures because of the low crude oil production and lack of investment in recent years.

Komolafe,who said this when the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe visited him recently,
said that the energy map of the world had changed considerably with the emergence of several new oil-producing countries.

This situation he said, had induced a high level of competitiveness for investment capital, stressing that strategic actions must be taken to make the Nigerian environment investor-friendly.

According to him, “we must vacate entry barriers for investment. This is common logic when there is high competition. We need to work together to lower barriers and do everything possible to motivate investment.”

He assured that the NUPRC would partner closely with the NCDMB to achieve some of the programmes it had planned for 2024.

He congratulated the Executive Secretary on his appointment, noting that the industry was pleased to have a person of his pedigree as the new helmsman of the NCDMB.

He highlighted the important role of the NCDMB in the operations of the upstream sector of the petroleum industry and commended the new Executive Secretary for seeking closer cooperation among the agencies.

He described the move as expedient, especially at a time when every hand is on the deck towards increasing Nigeria’s crude oil production, earning higher revenue for the nation, and reviving the economy.

He reiterated the need for teamwork and partnership amongst various agencies under the Ministry of Petroleum Resources, to sustain the growth of the Nigerian oil and gas industry.

He hinted that collaboration would create an enabling environment that would attract investments and new projects into the sector, helping to create employment opportunities for youths and address insecurity in the polity.

While noting that Local Content development would be stunted if projects and investments in the oil and gas sector do not flourish, the Executive Secretary suggested that NCDMB and NUPRC should organize workshops to examine and resolve concerns identified by investors as obstacles to investments and new projects.

He hinted that investment decisions by international oil and gas companies are often affected by their assessment of their Return on Investments (ROI).

The Executive Secretary,who also visited the Commissioner for Insurance of the National Insurance Commission (NAICOM),Mr. Sunday Olorundare Thomas,conveyed the willingness of the NCDMB to deepen its partnership with key agencies of the Federal Government to achieve the economic aspirations of President Bola Tinubu administration’s Renewed Hope Agenda, adding that cooperation and teamwork were key to accomplishing any noble objective.

He promised that NCDMB would work closely with NAICOM to review and operationalize the insurance services regulations jointly issued by both agencies in June 2022, to get Nigerian oil and gas companies to patronize local insurance firms and retain spend in the economy.

The Commissioner for Insurance of the National Insurance Commission (NAICOM), congratulated the Executive Secretary on his appointment, noting that he would be building on the solid foundation laid by his predecessors.

He described NCDMB as a formidable institution and commended the founding fathers of the Board for their foresight in creating such an important agency.

He also lauded the former Executive Secretaries of the NCDMB for their innovative projects and achievements while in office that added value to the economy.

He expressed concern that the insurance services regulations that were signed by the commission and NCDMB were yet to be implemented.

He requested the Executive Secretary to address the challenges, hinting that implementing the regulations would bring the needed changes in the insurance subsector of the oil and gas industry before being extended to other key sectors of the economy.

admin by — January 12, 2024 in Oil&Gas 0
Nigeria Okays Commercial Release Of GM Maize Varieties

Mohammed Shosanya

The Federal Government,has approved the commercial release of transgenic insect resistant and drought tolerant maize varieties, known as TELA maize.

The approval was granted by the National Committee on Naming, Registration and Release of Crop Varieties, Livestock breeds/Fisheries (NCNRRCVLF) headed by Prof Olusoji Olufajo at its 37th meeting at the National Centre for Genetic Resources and Biotechnology (NACGRAB), Ibadan on Thursday.

A statement on Friday explained that the four varieties approved by the NVRC are, SAMMAZ 72T, SAMMAZ 73T, SAMMAZ 74T, and SAMMAZ 75T.

The new maize varieties are drought tolerant and are resistant to stem-borer and fall armyworm resulting in yield advantage of up to 10 tonnes per hectare under good agronomic practices.

The national average for similar hybrids is 6 tonnes per hectare. The varieties are suitable for Rain Forest, Guinea, and Sudan Savannas.

Stem-borer reduces maize production in several countries in Africa, while fall armyworm can destroy up to 20 million metric tons of maize in Africa each year, enough to feed 100 million people.

The release and registration of the four varieties followed environmental release approval in October 2021 granted by the National Biosafety Management Agency (NBMA).

Development of the improved varieties was led by the Institute for Agricultural
Research (IAR) Samaru, Ahmadu Bello University Zaria through the TELA Maize Public-Private Partnership coordinated by AATF.

The TELA Maize Project is currently being implemented in 5 countries – Ethiopia, Kenya, Mozambique, Nigeria, and South Africa.

Prof Ado Yusuf, Executive Director, IAR expressed satisfaction with the release of the new four maize varieties saying, “IAR is very proud of our scientists who are addressing the maize productivity challenges in the country and beyond.

“These varieties have undergone thorough research and have been developed using the tools of biotechnology over several years of continuous testing and revalidation.”

Dr Canisius Kanangire,Executive Director of African Agricultural Technology Foundation(AATF) said, “the release of TELA Maize in Nigeria will contribute to food and nutrition security in line with the Federal Government’s Agricultural Transformation agenda.

“AATF reaffirms unwavering commitment to addressing challenges faced by farmers across the continent.”

Professor Garba Sharubutu, the Executive Secretary, Agricultural Research Council of Nigeria (ARCN), said the approval of the TELA Maize variety in Nigeria is a critical milestone that confirms the potential of biotechnology in ensuring food and nutrition security, and improved livelihood of farming households in Africa.

Prof. Mustapha Abdullahi, Director-General, National Biotechnology Development Agency (NABDA) celebrated the release saying that, with the advent of TELA Maize, farmers will reduce the use of pesticides on maize to the bare minimum which is beneficial to humans, livestock, and environment.

Dr Sylvester Oikeh, the TELA Maize Project Manager celebrated the decision by Nigeria by calling on other countries in Africa to act for farmers.

“I am encouraged by this decision by the Federal Government of Nigeria that reflects their commitment to the needs of farmers.

“I congratulate the scientists for their hard work and dedication that has seen the product getting closer to farmers and look forward to other countries making similar decisions for the good of the farmer,” he said.

admin by — January 12, 2024 in Agriculture 0
TotalEnergies To Take FID On Ubeta Gas Project In 2024

Mohammed Shosanya

The Managing Director and Country Chair TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer reconfirmed on Thursday that the company would take the final investment decision (FID) on the Ubeta gas project in 2024, while some other big projects would follow shortly.

The Managing Director made the announcement when he led senior officials of the company to visit the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe at the Board’s Abuja liaison office.

The purpose of the visit was to congratulate the Executive Secretary on his appointment and reassure him of Total Energies’ commitment to continue developing oil and gas projects that would deliver value for the country, deepen Nigerian Content, and yield returns to the company’s shareholders.

He affirmed that the company has an outstanding track record in Nigeria and has developed key oil and gas projects in the last 10 years.

He explained that some of the projects were in deepwater as well as shallow water and they created Nigerian Content records, such as the fabrication of six modules of the Egina’s Floating Production Storage and Offloading (FPSO) vessel in Nigeria.

He also confirmed that the company was determined to unlock new projects in Nigeria and solicited the continued cooperation of the NCDMB for accelerated Nigerian Content reviews and approvals.

He noted that the Ubeta project, which is located at Oil Mining Lease (OML) 58 is an onshore project and is designed to contribute gas to the Nigeria Liquefied Natural Gas (NLNG) plant and meet other domestic gas supply needs.

According to Bouyer, other projects on the horizon include the Preowei deepwater project. The proposed project lies in (OML) 130, north of Egina field, with water depth of around 5,904 feet. He assured that the company would engage closely with the NCDMB to achieve speedy development of the project, increased crude oil production for the country and revenue.

Speaking,the Executive Secretary assured the TotalEnergies E&P team that the Board would fast-track the approvals needed by the company to deliver speedily on its oil and gas projects. While referring to the Service Level Agreement (SLA) instituted by the Board with industry’s key stakeholders for shortening the contracting cycle, the NCDMB helmsman promised that the Board would strive to improve the turnaround time for its approvals on projects.

He further conveyed the commitment of the NCDMB to create an enabling environment that would attract investments and new projects into the sector, thereby creating employment opportunities for youths and addressing insecurity in the polity, in line with President Bola Tinubu Administration’s Renewed Hope Agenda.

He charged the company to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, assuring that the Board would support all bankable oil and gas projects and grant accelerated approvals once they meet the specified Nigerian Content regulations.

Speaking further, the Executive Secretary proposed the constitution of a technical working group (TWG) with representatives of NCDMB and TotalEnergies E&P. He recommended that the TWG could meet quarterly to proactively address pertinent issues that relate to the company’s projects and the Board’s expected roles.

Another issue discussed at the meeting included the commitment of TotalEnergies E&P to aggregate the Human Capacity Development (HCD) Fund on its projects and use it for strategic HCD initiatives as stipulated under the Guideline for Nigerian Content Human Capital Development Implementation Strategy, introduced by the NCDMB in June 2020. The ongoing reconciliation of Total Energies E&P’s remittance of the Nigerian Content Development Fund (NCDF) was also deliberated upon.

admin by — January 12, 2024 in Oil&Gas 0