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Tag: increase

  • Oil firm okays $4b to increase output

    Oil firm okays $4b to increase output

    Aiteo Eastern Exploration and Production Company (AEEPCo) Limited has set a medium term investment of $4 billion to increase oil and gas production, The Nation has learnt.

    Its Group Managing Director,  Chike Onyejekwe, who disclosed this, noted that the fund will be channeled to declining and brown fields to boost oil and gas outputs from the firm’s oil and gas fields.

    Onyejekwe said: “Aiteo is poised to grow oil production. We will arrest declining and brown fields. We will also focus on attaining a target of producing 300 million standard cubic feet of gas per day (mmscfd) by increasing associated gas (AG), develop non-associated gas (NAG) and diversify our market.

    “The $4 billion medium term investment will also be used for infrastructure asset integrity, reduce losses and create flexibility.”

    Onyejekwe said the firm was incorporated in 2014 to participate in the SPDC/Total/NAOC asset divestment in Eastern Niger Delta. It scaled the rigorous technical, financial, credit assessment and know your customer (KYC) by both the sellers and lenders syndicate. The firm syndicated medium term acquisition facility in two tranches – offshore and onshore, and was selected successful bidder for 45 per cent oil mining lease (OML) 29 and Nembe Creek Trunk line (NCTL), referred to as assets. It reached financial close in September 2014, he added.

    The onshore tranche, he noted, represented the single largest debt financing in local oil and gas sector by indigenous banks, which makes AEEPCo a strategically important borrower to the banking industry. He stated that the resource base of the firm include 2500 million barrels of oil and two trillion cubic feet of gas, six flow stations and six associated gas gathering facilities with a capacity of 50 mmscfd.

    The firm’s major fields include Nembe, S/Barbara, Okoroba, Oloibiri. Its 97km Nembe Creek Trunk Line has the capacity to evacuate 600million barrels per day and has six injectors.

    He said Aiteo operates in a highly challenging business environment with challenges of oil price collapse and debt  service. Other external and internal challenges, he said, include vandalism and theft, changing funding landscape, ageing assets, community management issues and facilities uptime.

    Onyejekwe said: “Our growth drivers remain strong: leadership, high commitment and motivation, technical and commercial excellence and superior asset base. In the next five years, our operations will continue to be guided by these qualities as we leverage our capabilities comparable to oil majors elsewhere in the world. Indeed, the future is Aiteo.”

    The Chief Executive Officer/Chairman, Aiteo Group, Benedict Peters also said the company grew production from 25,000 barrels per day (bpd) upon takeover of operations to a peak of 90,000 bpd in one year. He also highlighted several existing and developing projects that could potentially grow Aiteo’s asset production to over 150,000bpd and 200mmscf/d.

    Aiteo acquired OML 29 when Shell Petroleum Development Company (SPDC) fully exited the facility with Total and Nigerian Agip Oil Company (NAOC). At the time of the divestment, average production was 23,000bpd.

    Peter said: “Our outlook is bright with three producing oil fields and viable crude exports via Bonny terminal. We also have contingent resources to appraise and prospective ones to explore in the medium-to-long term, including full 3D coverage and 2P NNS reserves at 1.6 billion barrels. Put simply, we have a clear vision for the future with the experience and assets crucial to providing oil and gas consistently on a regional and global scale.

    “Aiteo’s ambitious five-year objectives include tackling the power challenges in Nigeria head-on through its legacy investments in the gas-to-power value chain.

    “This is a testament to our commitment to the transformation of the entire oil & gas value chain into a world-class landscape.”

  • Experts to govt: increase oil production

    With ongoing peace talks between the Federal Government and Niger Delta indigenes, experts have urged the Federal Government to increase oil production.

    The experts, including the President, International Institute of Energy and Law, Prof Wunmi Iledare, and the former Executive Director, National Integrated Power Project (NIPP), Dr Albert Okorogu, said  once government was able to substantially increase output, revenues accruing to the government would shoot up considerably.

    If government’s crude oil revenue  goes up by about 70 per cent, the foreign reserves will be expected to hit $35 billion in the next few years, they added.

    With increased revenue inflow, the government will be able to finance its budget, and meet other fiscal responsibilities, they noted.

    Speaking with The Nation on phone, against the backdrop of the rise in crude oil price to $56 per barrel, and ongoing peace moves of  Acting President Prof Yemi Osinbajo and his team in the region, they said growth in the oil industry, was dependent on the twin issues of peace in the Niger-Delta region and increased oil production.

    Iledare said the rise in the price of crude oil was a welcome development, urging inhabitants of the region to play a complementary role by allowing peace to reign. He said with this, the Federal Government would achieve its goal of having an improved and steady revenue from the sale of crude oil.

    He said: “No doubt, the industry is facing the twin problems of reduction in the production of crude oil and violence in the Niger-Delta region.  The issues have impacted negatively on the industry and the country, which relies on oil for sustenance. Now that the  price of crude oil is appreciating, residents of the Niger-Delta region must allow peace to reign in order to achieve optimal production of crude oil.”

    Iledare, who is the president, Association of International Energy Economists (AIEE), lamented that  breaking of oil pipelines, oil theft, departure of firms from onshore to offshore province, dwindling oil production and exploration activities, among others, had been hitting the industry.

    “For years now, the global price of crude oil has fallen steeply, resulting in the inability of the Federal Government to implement its fiscal policy. Now that the price of oil is rebounding, the problems that are associated with budget benchmark and implementation would become a thing of the past,” he added.

    Okorogu said the country was blessed with oil fields, which contained associated gas, adding that increase in production of oil would lead to a corresponding increase in production of gas.

    Okorogu said gas was the bane of the nation’s electricity industry, noting that the turbines would get gas for operation if activities in the petroleum industry improved.

    The six power generation companies (GenCos) and 10 power plants being managed by the Niger Delta Power Holding Company (NDPHC), under the National Integrated Power Project (NIPP) and others, would get gas and increase power generation. This means improvement in electricity supply and the economy, he said.

    They noted that Nigeria’s realisation of its 2.2 million bpd oil production budget benchmark was hinged on a peaceful Niger Delta and minimal or zero militancy. Therefore, government needed to improve ongoing dialogue with the region’s stakeholders to avoid the risk of being held to ransom due to delays.

  • NIMASA ready to increase GDP, says Peterside

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-GeneralDr. Dakuku Petersidehas said the agency was positioned to contribute substantially to the country’s Gross Domestic Product (GDP).

    Peterside told the News Agency of Nigeria (NAN) in Abuja that if the potentials of the sector were optimised, they would lead to the growth of the economy.

    “We are looking at the entire gamut of mix that is necessary to unleash our potential in the industry.

    “All I can say is that going forward, maritime is positioned to contribute substantially to our GDP and by extension the growth of our economy,’’ he said.

    Peterside said many countries had optimised advantages of their maritime sub-sector to grow their GDP and it had yielded results and urged Nigeria to replicate same.

    “If you look at the economy of the Philippians, seafarers contribute more than 11 per cent to their GDP.

    “If you look at Bangladesh, it is called the graveyard of ships, in terms of ship breaking, ship recycling; that small sector in the maritime industry contributes substantially to their economy.

    ”Now, if you  look at India, again seafarers contribute substantially to the economy of India. If you look at Korea, ship building contributes to the economy of Korea.

    ”‘If you look at China, the officer cadre that boards vessel or that ply vessels, or that mounts vessels everywhere in the world, most of them are Chinese.

    ”If you look at Singapore, by simply being a trans-shipment hub, it is the mainstay of the economy of Singapore.

    “So, if you look at all these countries, they have optimised advantage of one sub-sector or the other in the maritime sector. Why can’t we replicate same in Nigeria?”

  • DStv: Naira volatility may stir price increase

    DStv: Naira volatility may stir price increase

    The volatility in the foreign exchange (forex) market may induce increment in DStv subscription price if not tamed by the government, the General Manager, Sales and Marketing, Multichoice, Martin Maputo, has said.

    He spoke at a briefing in Lagos.

    Maputo said DStv was trying to avoid any price increase but rather concentrating on upgrading its contents across all bouquets.

    However, he said if the government failed to curtail the forex crisis which has made it more expensive for the company to buy foreign content, especially English premiership, among others, it might be forced to consider price increase.

    “Most of the content we buy, such as EPL, others from abroad is dominated in pounds, dollars. So, we are not only operating in the market, but also respond to the market. At this stage, we are trying as much as we can to avoid any price increase but if there is nothing done to curtail the forex issues, we might be forced to increase,” he said.

    Meanwhile, Maputo said DStv has launched new value propositions to subscribers of DStv Premium, Compact Plus, Compact, Family and Access bouquets.

    “Starting  November  1, 2016, DStv will add three new HD channels for DStv Premium; DStv Compact Plus gets a major revamp with additional premium-content channels. Subscribers will enjoy massive content upgrade on all DStv bouquets including varied and quality channels that the whole family can enjoy. This latest move is in line with the company’s promise of putting its customers at the heart of the business,” he said.

    According to Maputo, in the last nine months DStv has delivered the world’s best football leagues to DStv Compact customers (February) followed by the DStv price freeze in April.

    “DStv is combining more quality and variety to its bouquets to ensure everyone has access to the best family entertainment at a price they can afford,” he said.

    He said further that the price reductions in DStv state-of-the-art decoders – Explora and HD Zapper – would ensure that great family entertainment is available to everyone at the most affordable price.

  • Will workers still get wage increase?

    SIR: Nigerian workers were excited when the Federal Government announced that it had constituted a committee to come up with proposals on a new minimum wage and palliatives that would cushion the effects of the recent hike in the price of fuel. Unfortunately, the excitement appears to be waning by the day because not much has been heard of what the committee is doing, or has so far done.

    We recall that the Federal Government and the Nigeria Labour Congress set up a national committee to work out palliative measures and fashion out a new minimum wage that would ameliorate the impact of the increase in the pump price of the premium motor spirit (petrol). Not long after the committee was constituted, there were conflicting media reports on its activities. Initially, it was alleged that the committee had started sitting, but NLC denied that the committee had truly started meeting, saying the Federal Government was yet to constitute the committee.

    Both the NLC and the Trade Union Congress (TUC), the two central labour organisations in the nation had proposed N56,000 as the new national minimum wage as against the current N18,000, which had been in operation since 2011. There is every justification for an upward review of the minimum wage following the increase in the pump price because the adjustment has worsened the plight of workers such that their purchasing power has drastically reduced. Infact, for an average public servant of today, good life can be described as an unaffordable luxury.

    Those who are against the proposal had argued that the labour’s demand for a wage increase is unsustainable on account of the deplorable and prevailing economic situation in the country coupled with the sharp fall in the price of crude oil at the international market. This slide has culminated into the inability of most state governors to pay workers’ salaries and meet other official obligations. To date, many state governments still owe salary arrears up to seven months or more. The Federal Government recently declared 27 states bankrupt, stating that they were ‘incapable’ of paying salaries and maintaining ‘efficient’ and unhindered daily government operations, a position affirmed by the chairman of the Nigeria Governors’ Forum, AbdulazeezYari of Zamfara State.

    The questions to ask are: Is it really feasible to increase the minimum wage payable to Nigerian workers? Is this realistic for both the federal and state governments to implement? While the case of the Federal Government seems to be feasible, state governors could also achieve it by borrowing a leaf from the recent example shown by Governor Adams Oshiomhole of Edo State, who has increased the state’s minimum wage to N25,000. Similarly, despite the cash crunch being experienced, workers’ salaries are still regularly being paid by the Cross River State government. Governor Ben Ayade-led administration’s prudent fiscal management is worthy of emulation, despite the fact that the state’s earning has nosedived since the hitherto 13 per cent derivation from its oil wells had been ceded to Akwa Ibom State, following a Supreme Court judgment.

    Another governor that could be a reference point is Akinwunmi Ambode of Lagos State. It is remarkable to note that Lagos State has already surpassed its first quarter internally-generated revenue target with the over N100 billion gross earning, as many states remain beggarly by rushing to Abuja for the monthly dole and reliance on bail-out funds.

    The Federal Government should let Nigerians know how far the committee has gone in the provision on the blueprint on the palliatives and evolving of a living and sustainable minimum wage for workers. By that, the government would not only be sending the right signals that accountability is key to responsive governance; it is also shows clear commitment and sensitivity to workers’ agitation. This is the right way to go!

     

    Adewale Kupoluyi,

    Federal University of Agriculture, Abeokuta.

  • Unity Schools fees hike: Minister, Perm Sec disagree

    Unity Schools fees hike: Minister, Perm Sec disagree

    National Parent and Teacher Association of Federal Government Colleges (NAPTAFEGC) at the weekend kicked against increase in the fees of Unity schools.

    NAPTAFEGC, in a communiqué by its National President, Dr. Gabriel Nnaji, after its National Executive Council meeting in Abuja, said the increase from N20,000 to N75,000 was untimely and insensitive by the government.

    Nnaji told reporters that the fee was increased on June 1 by the government.

    The communiqué reads: “That the increase of school fees from about N20,000 to about N75,000 in Unity colleges is most untimely and insensitive. An average Nigerian worker, whose minimum wage is N18,000, and who has one or two children in the Unity colleges, will be unable to keep his or her child or children in the Unity colleges.

    “The increase is a negation of the policy or principle that established Unity colleges, which is to make basic and secondary education affordable and accessible to an average pupil.

    “The association appeals to President Muhammadu Buhari and members of the National Assembly to compel the Federal Ministry of Education to revert to the old bills as the education of children is a right, and not a privilege.

    “The new fees, if not reversed, will force parents to withdraw their children from the Unity colleges.

    “The association will continue to partner the ministry  by complementing its efforts  in the provision of basic facilities in the Unity colleges.

    “The association appreciates the ministry in making the payment of insurance levy in the Unity colleges not compulsory, but optional.

    “The association frowns at any attempt to commercialise or make the cost of training children in the Unity colleges beyond the rich of an average parent.

    “Enough budgetary provision should be made and timely released to the Unity colleges to enable pupils to continue to compete favourably with those of other sound private schools.

    “The issue of security in Unity colleges must be given attention and commitment.

    “Pupils who have paid for books should always receive them in time and not when no longer needed.”

  • Expert: Mechanisation key to increase food production

    Increased mechanisation of farms will enable Nigeria to build  a functional agriculture and food system capable of addressing  malnutrition and lifting  millions out of poverty, the Commercial Manager, Tractor & Implements, Dizengoff Nigeria, Damisa Enahoro, has said.

    At present, agricultural mechanisation in the country stands at less than 30 per cent, a position lower than that of most of the leading agricultural countries.

    Enahoro observed that there was significant disparity in relative productivity and performance across the farming sector. This, he attributed, to inconsistent levels of mechanisation.

    According to him, agricultural mechanisation can make a real difference and create opportunities for economic growth in rural areas.

    To this end, Dizengoff Nigeria is on a nationwide campaign to promote agricultural mechanisation to improve the country’s agricultural productivity.

    Accompanying this drive is intense personnel training on agricultural mechanisation.

    He said use of machines would increase agricultural productivity and enhance quality along the value chain, demanding that farmers will be trained on the use of equipment which would help modernise the agriculture sector.

    He said agribusiness companies have great potential to provide solutions through the adoption of technologies and practices and make better use of machines.

    As science and technology change the face of agriculture, he maintained that his organisation is in the vanguard of agricultural technologies, pioneering new approaches to food and farming systems.

    Enahoro said: “Dizengoff, through its Massey Ferguson brand of tractors, is committed to providing high-quality machinery and appropriate technology to suit all types of farming operations in Nigeria.”

    He  further assured farmers: ‘’Dizengoff is truly a full-line supplier of farm equipment, providing solutions to farmers no matter what their farm size or type of operation is.”

  • Marketers set to increase LPG price

    Marketers set to increase LPG price

    Liquefied Petroleum Gas (LPG) marketers yesterday in Lagos, agreed to increase the price of the domestic cooking gas by between 70 per cent and 100 per cent, following the scarcity of the product.

    The marketers lamented that problems, such as rising cost of buying LPG from terminal owners such as Pipelines and Product Marketing Company (PPMC), Algasco and others were taking toll on them. They also highlighted hitches in the supply chain, and monopoly as reasons behind the planned increase in the price of LPG.

    The Executive Secretary, Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, who spoke a stakeholders’ forum in Lagos, said the cost of obtaining LPG from terminal operators has increased in the past few days. He added that the development necessitated a corresponding increase in the price of the product.

    He said: ‘’Last week Tuesday, marketers bought 20 metric tonnes of LPG from terminal owners for N2.4million; the price rose to N2.6million on Thursday;  N3milliion on Friday; and  N3.5million  this Monday. “Based on this, marketers have agreed to increase the price, at which they are selling LPG to both the individual and industrial users.  “This is the only way marketers can recoup their investments and grow. By this, people would now be filling 12.7kilogramme cylinder with for between N3, 500 or N4, 000, as against N2, 800.’’

    Essien said NAFGAS and PPMC terminals are mostly used for distribution of LPG while other terminals are sparingly used.

    He said: ‘’As a result of this, most terminals are deliberately starved of gas. This means that marketers have no choice but to buy LPG from PPMC and NAFGAS terminals at a higher price.  In the light of this, the two firms are controlling the LPG market, by determining who to sell LPG to. Often times, few marketers have benefitted, while others have not. From all indications, a monopoly has been overtly or covertly created in the LPG market;  whenever a system is monopolistic in nature, few individuals or firms dominate business activities.”

     

  • SMEs fret over likely increase in VAT

    Small business owners are bracing for a tougher operating environment as they fear the Federal Government will increase Value Added Tax (VAT) to shore up dwindling revenue from crude oil.  Some of them have expressed concerns that the current tax system is costing much as they grapple with scarce foreign exchange (forex) to do business.

    The President, Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola  lamented the tax burden on the frail necks of small, medium enterprises (SMEs)  and wondered  what will happen to small businesses if the government decided to increase VAT from the present five per cent to a higher rate as is being speculated.

    He noted that with their limited resources, SMEs bear higher proportion of the burden in meeting tax compliance obligations.

    He and other small business owners feel that the additional effects of a complex tax system are a detrimental impact on micro businesses and a contribution to the growing existence of tax avoidance schemes seeking to exploit loopholes in existing legislation.

    Furthermore, he added that the tax compliance burden on SMEs is   affecting the nation’s economic growth.

    Making the tax system simpler, he argued, would help to lift this weight, diminishing the operating costs that SMEs face. This, according to him, would give SMEs the space they need to invest in growing their business and hiring more staff.

    It was learnt that some firms are facing challenges with limited availability of forex to buy raw materials.

    Some companies complained that where they have opportunities to procure forex, it was at a black rate which meant that everything it imported now would cost more along with VAT.

    The President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche said the challenge was that majority of the inputs into manufacturing were all imported items.

    He said with limited forex, companies were unable to procure raw materials and it placed a significant strain on the manufacturing end of the business.

  • Group condemns increase in petrol price

    The recent announcement by the Federal Government of the increase in price of petrol has been described as an insensitive act that will be resisted by the Nigerian people at the appropriate time.

    This was disclosed by a non-governmental organisation, Campaign Against Impunity and Domestic Violence (CAIDOV), in a press release signed by its Executive Director, Gbenga Soloki.

    The organization said:”From the increase, the government is insensitive to the plight of suffering Nigerians who are daily being subjected to more hardship by the ruling party.

    Since this government came on board last year, there has not been appreciable impact on the lives of the people.”

    It further said: “The increment is irresponsible, callous and condemnable. How can this government be so insensitive to the plight of the people when prices of products are on the increase. Any government that does not take into cognizance the interest of the people in its policies and programmes is anti-people and such policies should be rejected.”

    The CAIDOV urged the Federal Government to speedily consider the reversal of the price in the interest of the vast majority of the downtrodden masses of the country.