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Gas supply: IOCs call for FG’s intervention in payment of $1bn debt

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…We are determined to resolve all issues – Presidency

…FG to roll-out new gas price soon — NMDPRA

…NUPRC targets $100m from sale of flared gas

Following Nigeria’s ambitious goals to harness the country’s vast gas reserves to drive economic growth and development, International Oil Companies (IOCs) have called on the Federal Government to meddle in on debts owed by power generation companies totalling over $1 billion legacy debts.

The IOCs made the demand at the official opening of the Decade of Gas secretariat at the Nigerian Midstream and Downstream Petroleum Regulatory (NMPDRA).

The companies which made the demand through Chevron Nigeria Limited said the payment for gas supplied to the power sector and commercial pricing of the product are necessary for the companies to produce more gas.

The Chairman/MD of CNL, Mr. Richard Kennedy represented by Chevron’s Joint Venture Director, Mr. Cosmas Iwueze said: “The decade of gas is to ensure that we re-establish investors’ confidence in the industry. You do this by ensuring that all the legacy debts owed to the industry operators are paid and also ensuring that we have a cost reflective gas pricing.”

Kennedy went on further to state that the IOCs would support the decade of gas plan being pushed by the Federal Government.

We are determined to resolve all issues — Presidency

The Special Adviser to the President on Energy, Olu Verheijen has reiterated the commitment of the President Bola Tinubu administration to resolve all the legacy issues that would attract investment into the gas sector.

She identified that the development of gas was a priority programme for the current administration.

According to her, “It has been a long journey with gas in this country. We have gone from being a major exporter of LNG to looking into our future when gas is going to play a big role in the industrialisation of our country.”

FG to roll-out new gas price soon — NMDPRA

The Chief Executive of the NMDPRA, Engr. Farouk Ahmed however revealed that a new gas price regime would be announced soon.

These, according to him, are part of efforts to make the gas supply to power sector attractive.

According to Farouk, “The decade of gas declaration by the Federal Government was a deliberate effort to ensure that in the next 10 years (2021-2030) gas would become the main source of energy in the country.

“The new price of gas will be revealed after further consultations and approval from the President. We need a price that gas is sold to power and to industry at a level that incentives the producers to invest in the sector and so that they can produce more gas.”

…NUPRC targets $100m from sale of flared gas

The Nigerian Upstream Regulatory Authority (NUPRC) is however targeting a revenue between $80m – $100m from sale of flared gas.

In a press statement, the Commission Chief executive, Mr Gbenga Komolafe said, “In line with the Flare Gas (Prevention of Waste and Pollution) Regulations, 2018, Flare Gas Buyers will emerge with the execution of the Suite of Commercial Agreements by the Preferred Bidders with the Commission and the respective producers as the case may be. Execution of the aforesaid agreements enables the bankability of the Programme.

“The multiplier effects of the NGFCP on the economy are many, including job creation, direct and indirect, creation of cottage industry and other economic activities around flaring communities, improved health, and social economic well-being in producing areas, and enhanced social license to operate. When considered holistically, the total Gross Domestic Product, GDP impact of implementing the NGFCP could be over one billion US dollars.

“We expect additional sources of revenue for the government from taxes collected from new ventures created and modest revenues from the fees charged during the auction process. It is, however, anticipated that the commission will generate between $80 million and $100 million per annum from sales of flared gas, in addition to tax revenues. Following its inauguration in August 2022, the NGFCP team indeed hit the ground running and we are confident that an accelerated implementation will be realised as intended.”

Komolafe speaking at the ongoing Nigeria Oil and Gas (NOG) conference in Abuja alao revealed that the Federal Government has concluded work on the competitive bidding round for the award of licenses to investors interested in developing the nation’s 50 gas clusters under the National Gas Flare Commercialisation Programme (NGFCP).

Komolafe noted the winners would soon be announced, adding that the Federal Government remains committed to developing Nigeria’s abundant gas for domestic utilisation and export in line with the Petroleum Industry Act, PIA.

He also urged local and foreign investors to have trust in the nation’s economy, especially with the signing of the PIA into law and the commitment of President Bola Tinubu to boost investment in energy and other sectors.

The NGFCP aims at harnessing the nation’s flared gas for economic utilisation, thus reducing massive flaring while generating additional revenue for the government.

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Digital Economy: FG unveils SPV to improve internet penetration, GDP growth

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…To build 3rd longest terrestrial fibre optic backbone in Africa

…Targets 1.5% GDP growth, 70% broadband penetration

By Blessing Emmanuel, Abuja

The Federal Government has unveiled the launch of a Special Purpose Vehicle (SPV) that will boost the country’s digitisation drive to increase the contribution of the digital economy to GDP growth.

Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani made this known on Tuesday.

Noting that it was an outcome of the Federal Executive Council meeting (FEC) presided over by President Bola Ahmed Tinubu, the minister said that the FEC also approved the establishment of the Nigeria Startup House in San Francisco.

He said the two projects would attract the attention of local tech ecosystem players and investors as key indicators of the government’s commitment to addressing the country’s connectivity and startup funding objectives.

He averred that the project, upon delivery, will become Africa’s 3rd longest terrestrial fibre optic backbone, after Egypt and South Africa.

According to him, “This extensive coverage will enable us to optimise the unique benefit of having eight submarine cables already landed in Nigeria and therefore drive uptake of the data capacity that the cables offer beyond the current usage level of 10 percent.”

“Building on our existing work with the Broadband Alliance, this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare, and social institutions across Nigeria, ensuring that a larger section of our society can enjoy the benefits of internet connectivity.”

The Minister also added that the SPV will support the delivery of an additional 90,000km of fibre optic cable to complement our existing connectivity infrastructure and deliver a stronger national backbone for universal access to the internet across Nigeria.

“Over the last few months, we have  put in extensive groundwork to set up this SPV which will be modelled in governance and operations similarly to some of the best Public-Private Partnership setups in Nigeria, such as NIBSS and NLNG.

“Working with partners and stakeholders from the government and private sector, this SPV will build the additional fibre optic coverage required to take Nigeria’s connectivity backbone to a minimum of 125,000km, from the current coverage of about 35,000km. Upon delivery, this will become Africa’s 3rd longest terrestrial fibre optic backbone, after Egypt and South Africa.

“This extensive coverage will enable us to optimise the unique benefit of having 8 submarine cables already landed in Nigeria and therefore drive an uptake of the data capacity that the cables offer, beyond the current usage level of 10 percent,” He explained.

Enumerating some of the immediate benefits, Tijani said it will increase internet penetration in Nigeria to over 70 percent, reduce potentially the cost of access to the internet by over 60 percent, inclusion of at least 50 percent of the 33 million Nigerians currently excluded from access to the internet.

He also added that the SPV will aid in delivering up to 1.5 percent of GDP growth per capita raising GDP from $472.6 billion (2022) to $502 billion over the next 4 year.

The Minister also applauded the President’s directives compelling MDAs to procure Compressed Natural Gas (CNG) powered vehicles.

Tijani noted that the directive offers a number of opportunities in the value chain that, if properly harnessed by the tech startup ecosystem, will provide a boost to the economy.

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Removal of APC logo, Tinubu portrait from Aregbesola’s office fuels mixed reactions

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By Jeleel Olawale

The removal of all paraphernalia of the All Progressives Congress (APC) from the campaign office of former Osun State Governor, Rauf Aregbesola has sent shivers across political gladiators in the state.

Political analysts anticipate the former Governor’s next move noting that this may be a sequence to many surprising events that may unfold in the build up to the Osun 2026 gubernatorial elections.

The campaign office which is domiciled inside the four-storey building at Ayinke Towers, rechristened Oranmiyan House is located along the Gbongan-Ibadan road in Osogbo, the state capital.

The highrise building served as Aregbesola’s campaign office and later the office of The Osun Progressives, TOP, before its dissolution in 2022.

The white-coloured building which hitherto wore the colours of APC and with several poles bearing flags of the party and the National flags adorning its frontage, has been given a distinctly new look.

This development is coming as preparations are being set in motion for the 2026 gubernatorial election in the state.

The insignia and identity of APC and the gigantic photos of Asiwaju Bola Ahmed Tinubu, former governor and later APC National Chairman, Bisi Akande and the ex-President Muhammadu Buhari which formerly adorned the building have been removed.

It was observed that they have been replaced with equally large size images of the late sage, Chief Obafemi Awolowo, the late Chief Bola Ige and with the former Minister of Interior, Raid Aregbesola’s picture inserted in the middle.

Also, the huge inscription of the APC logo has finally been replaced with that of the Omoluabi Progressive Caucus.

It was gathered that the same remodelling was carried out at Aregbesola’s campaign office in his Ilesa hometown.

Reacting to the development, a member of the Omoluabi Progressive Caucus in Ilesa, Kazeem Olanrewaju said, they are trying to return to the progressive ideas that led to the creation of the APC.

Olanrewaju posited that, “Tinubu and Akande have both derailed from the progressive ideas, saying the progressive politics which started with Awolowo and Bola Ige, is not about power, but about about impacting lives.”

He condemned Tinubu’s government for having “no achievement in a year of running Nigeria. What is progressive about running Nigeria for a year without achievement.”

Olanrewaju, however, assured that the APC logos and banners would be brought back later.

In his words: “We will bring back banners later.”

Aregbesola fell out with Tinubu following his outburst against the president in January 2022.

He was also observed to be visibly absent during all the APC rallies across the country before the 2023 presidential election.

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Nigeria gains additional 16,300sqkm maritime territory

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The Federal Government of Nigeria has gained an additional 16,300sqkm maritime territory.

This was revealed when President Bola Tinubu received the report of the High Powered Presidential Committee (HPPC) on Nigeria’s Extended Continental Shelf Project.

The President receiving the committee commended the team of experts who worked hard over the years to advance the project, which aims to extend Nigeria’s maritime boundaries in accordance with the United Nations Convention on the Law of the Sea (UNCLOS), 1982.

The President expressed his appreciation on Tuesday in Abuja after listening to technical presentations by Professor Larry Awosika, a marine scientist and member of the Committee, and Surveyor Aliyu Omar, Secretary of the HPPC.

The experts have been involved in the project since Nigeria’s initial submission to extend its continental shelf to the United Nations Commission on the Limits of the Continental Shelf (CLCS) in 2009.

They informed the President that the UN has approved Nigeria’s submission, granting sovereignty over additional square kilometres of maritime territory.

‘’When the HPPC briefed former President Muhammadu Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf (CLCS) was still considering Nigeria’s submission and having technical interactions with the HPPC.

‘’These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

‘’As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State,” Surveyor Omar told the President.

He added that the official notification of the decision was conveyed to Nigeria by the UN Nations Commission on the Limits of the Continental Shelf (CLCS) in August 2023, shortly after President Tinubu assumed office.

Omar outlined the available options for Nigeria following the approval:

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