The Nation Newspaper

Tag: months

  • ‘Govt eyes six months contracting cycle’

    The Federal Government is set to cut the contracting cycle in the oil and gas industry from its current two to four years to six months as done in other countries, the Minister of State for Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has said.

    Kachikwu stated this at the stakeholders interactive workshop on the Nigerian Content Policy organised by the Senate Committee on Petroleum Resources (Upstream) in Calabar, Cross Rivers State.

    He identified the long contracting cycle as a major contributor to the high cost of production per barrel of crude oil in Nigeria compared to other member countries of the Organisation of Petroleum Exporting Countries (OPEC). He listed other challenges to include multiplicity of bidders, application of manual tools in bid evaluation and divergent tender requirements by approving entities such as the Nigerian Content Development and Monitoring Board (NCDMB), National Petroleum Investment Management Services (NAPIMS) and the International Oil Companies (IOCs).

    The minister, who was represented by the Group General Manager, (NAPIMS), Mr. Sajebor Dafe Stephen, stated that the contract approving entities were already implementing his charge to strategise and develop a single contracting procedure, which will soon be issued to the industry.

    He also confirmed plans to categorise companies that have invested heavily in the economy and become local content champions for specific work scopes in a way that will facilitate contract opportunities. These measures, he said, will enhance transparency and further boost investor confidence.

    He stated that a good number of  Nigerians had been motivated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to acquire high cost marine vessels and oil rigs, and assured the Act’s provision of first consideration for Nigerian owned assets shall always apply in tenders related to utilisation of rigs or marine vessels.

    With the emergence of a new crop of indigenous owners of marine vessels, he said the new focus was on the local construction of vessels, adding that an assessment of shipyards was ongoing and government will provide incentives and enablers that will enable local yards to construct vessels at competitive cost.

    While expressing gladness that some firms, including the Lagos Deep Offshore Logistics Base (LADOL) had accessed the Nigerian Content Development Fund (NCDF) for its ongoing fabrication and integration yard expansion, the minister regretted the challenges faced by some other companies in accessing the NCDF.

    He stated that government was currently reviewing the operating model for NCDF, adding “it is my hope that the revised model will see more Nigerian firms access NCDF for commercial and developmental interventions.”

    Kachikwu charged Nigerians to keep faith with the Local Content policy as an instrument for the industrialisation of the economy, noting that other prosperous jurisdictions succeeded because they adopted their preferred development policies and sustained the programmmes for long periods.

    He challenged the National Assembly to consider the possibility of expanding the provisions of the Nigerian Content Act to other sectors of the economy especially information and communication, automobile, construction and power for maximum socio-economic gains.

    He solicited the support of the private sector and the international community for Nigerian Content implementation and assured that the Act is not intended to drive foreigners out of the industry but to encourage domiciliation of industry activities in-country through genuine partnerships.

     

  • NNPC paid N790.75b into govt coffers in 9 months

    The Nigerian National Petroleum Corporation (NNPC) yesterday said it paid N790.75 billion into the Federation Account between January and September.

    It also realised N38.67 billion from the sale of petroleum products in September. The figure for August was N44.24 billion.

    These were contained in NNPC’s Monthly Financial and Operation Report for September. The corporation started issuing the report in August in line with its Group Managing Director (GMD), Dr. Emmanuel Ibe Kachikwu’s promise to throw its books open monthly for public scrutiny.

    The practice was never in place in all the years – 38 – of NNPC’s existence until Kachikwu became its helmsman in August.

    According to the report, the revenue was from “white products” sold by the Pipelines and Products Marketing Company (PPMC).

    “White products” include Automotive Gas Oil (AGO) popularly known as diesel; Household Kerosine (HHK) and Premium Motor Spirit (PMS) commonly known as petrol.

    The report said the dollar payments to Joint Venture (JV) Cash Call and Federation Account from January to September was $3.69billion.

    “Of the total receipts, $0.61billion was remitted to the Federation Account, the balance of $3.09 billion was used to fund the JV Cash Call for the period,” NNPC said, adding:

    “The dwindling oil price has negatively affected the NNPC dollar contribution to the Federation Account”.

    The continued decline in oil price, it said, led to insufficient cash available to meet JV Cash Calls obligations of about $615.8 million monthly as appropriated by the National Assembly.

    To mitigate this effect, the report said: “NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero remittance to Federation Account since April 2015 .”

    On refinery operations, NNPC said the “Total Crude processed by three refineries, for September was 261,371.14 bbls (35,648 MT) which translates to a combined capacity utilisation of 1.96%.”

    The country has four refineries – one each in Warri (Delta State) and Kaduna and two in Port Harcourt (Rivers).

    During the period under review, according to NNPC, only Port Harcourt Refinery Corporation (PHRC) produced 31,008million MT of petroleum products out of 35,648 MT (261,371.14 bbls) of crude processed at an average capacity utilisation of 5.77%.

    In terms of crude processed and production for September, it said the combined value of output by the three refineries (at import parity price) for September amounted to N9.91billion; the associated crude plus freight cost was N6.35 billion, giving a loss of N8.84 billion after considering overhead of N12.40 billion.

    On Refinery Financial Performance from January to September, NNPC said it was derived from its proceeds from Petroleum Product Supply & Distribution and Petroleum Product Supply from Off-shore Processing Agreements (OPA).

    It said: “In September 2015, 763.90 million litres of white products were supplied into the country through the OPA compared with a volume of 701.29 million litres achieved in August. DPK receipt in September was 196.30 million litres compared with zero litres imported in August.”

    NNPC maintained that production by the refineries in September amounted to 75.78 million litres compared to 200.25 million litres in August.

    On downstream petroleum products distribution, the corporation said 507.90 million litres of white products were distributed and sold by PPMC in September compared with 606.84 million litres in August.

    This, said the report, comprised 456.81 million litres of petrol, 31.41 million litres of kerosene and 19.68 million litres of diesel.

    Total sale of white products by the NNPC/PPMC between January and September, it said, stood at 6.41billion litres, with petrol (5.08 billion litres) accounting for 79%.

    Total sales revenues for white products sold for the period stands at N461.19 billion petrol contributed about 86% of the revenues collected with a value of N395.689 billion.

    In the period under review, the sector’s domestic gas supply to power was an average of 773mmscfd that was delivered to the gas fired power plants in September “to generate an average power of about 3,141 MW compared with a 2015 YTD average gas supply 656mmscfd and power generation of 2,843MW.”

  • Diamond Bank grosses N156.5b in 9 months

    Diamond Bank Plc grew its top-line by 3.2 per cent to N156.5 billion in the first nine months of this year, according to earnings report released at the Nigerian Stock Exchange (NSE).

    The nine-month report for the period ended September 30, 2015 showed that gross earnings rose from N151.6 billion recorded in third quarter 2014 to N156.5 billion in third quarter 2015, representing an increase of 3.2 per cent. Net interest income increased to N85.2 billion against N82.6 billion in comparable period of 2014. Profit before tax however dropped from N23.7 billion to N18.6 billion while profit after tax also declined from N20.19 billion to N18 billion.

    Chief executive officer, Diamond Bank Plc, Mr Uzoma Dozie, said the bank has gone through extensive transformation noting that innovation, technology and lifestyle priorities will drive banking in the future and Diamond Bank has been well positioned to take advantage of this.

    He expressed optimism about the growth and value to shareholders and restated his commitment to overseeing full implementation of the bank’s digital led retail strategy.

    According to him, the decline in total assets of the bank by 8.5 per cent from December 2014 was due to the continued rebuilding and strengthening of the bank’s balance sheet with focus on a more efficient structure that will deliver better returns to shareholders in the long term.

    “Our customer friendly products and services are showing positive results. By taking this approach we stand to benefit from further innovation, technology and lifestyle changes that will drive banking in the future. Our business has remained resilient despite challenges in the operating environment, and as the fastest growing retail bank in Nigeria, we have the resources and governance structures to enable us ride the current headwinds and take advantage of opportunities that may arise in the future,” Dozie said.

    According to him, in spite of regulatory headwinds that impacted business operations in third quarter, Diamond Bank stayed focused on strategy implementation showing strong resilience against the tide. The bank cleaned its books of additional toxic assets and recorded strong growth in revenue, while setting forth a clear and realisable business roadmap that would promote stronger and sustainable growth in the fourth quarter and the years ahead.

    Although industry watchers and analysts had predicted a decline in, or flat revenue at best, due to unfavourable macro environment and challenging regulation, Diamond Bank maintained its status as the fastest growing retail bank as well as displayed resilience in earnings..

     

     

  • FRSC to increase surveillance in ember-months

    FRSC to increase surveillance in ember-months

    The Kubwa Unit Command of the Federal Road Safety Corps (FRSC) in Abuja has worked out a special plan to control end-of-year road crashes.

    The command said that the ember-months season has always been a challenging period characterised by peculiar traffic offenses in Kubwa and on the expressway.

    Assistant Corps Commander, Yusuf Abdullahi said the unit will deploy its men and logistics early to identified areas around Kubwa and environs to ensure an improved presence of FRSC operatives.

    Abdullahi condemned the way drivers overload their vehicles, violate speed limits, commit lane indiscipline and disregard traffic rules and regulations.

    He said that part of the units strategies towards a safer road during the festive season includes stronger collaboration with relevant stakeholders such as the National Union of Road Transport Owners, the Nigerian Police (NURTO) and fleet operators in addition to the National Emergency Management Agency (NEMA)ý and other sister agencies.

    He also added that the strategies will be complemented with 23 Emergency Ambulance Service Centres code named ZEBRAS, a toll free line 122 to enable the unit respond promptly to traffic emergencies and embark on robust public enlightenment campaigns and the strict enforcement of traffic rules and regulations in Kubwa.

    He also said, “It was in the effort to deal with this challenge that the Corps came up with the initiative of the Special Ember Months Patrol which involve massive deployment of staff and logistics to the road as build up towards effective management of traffic and to contain the peýrennial obstructions, gridlock and other accompanying hazards that have been witnessed within this period over the years.

    “The tendency for drivers to overload their vehicles, violate speed limit, commit lane indiscipline and disregard other traffic rules and regulations is always higher in this period and these violations heighten the spate and fatalities of road traffic crashes within the period. Tackling the challenges, therefore, has always been the task before the FRSC, as the lead agency for road traffic management and Administration in the country, over the years.

    “This year presents yet another challenge that we have to tackle head-on and we are committed to tackling them to save road users especially within Kubwa and its environs from dreadful experiences, and I want to assure you that the Corps has drawn a robust road map towards addressing these challenges.

    “In line with our pro-active drive, we have embarked on early deployment of men and logistics to the identified areas to ensure improved presence of FRSC operatives at designated blocks.”

     

  • Govt earns $3.420b from oil in eight months

    Govt earns $3.420b from oil in eight months

    The Federal Government has earned $3.420billion in eight months (January-August) from sale of oil and gas, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has said.

    A breakdown of the oil and gas proceeds showed that $0.61billion was remitted to the Federation Account as dollar proceeds while the balance of $2.815billion was used to fund the NNPC Joint Venture (JV) cash call (counterpart funding) within the period.

    NNPC spokesman Ohi Alegbe said Kachikwu broke the news in his report on the Corporation’s operations for the year — in line with his promise to keep the books of NNPC and transactions in the oil gas industry open to Nigerians. Kachikwu at the weekend began the monthly publication of its provisional financial and operational reports, which detail the activities of the Corporation for Nigerians to read.

    The report also noted that oil and gas receipts witnessed a sharp decline of more than 67 per cent between July, 2015 and September, 2014, when the receipt was at its peak. The decline has dire consequences for the Federation, it added.

    The NNPC chief stated that the continued decline in oil price led to insufficient cash available to meet monthly JV cash calls obligations of about $615.8million as appropriated by the National Assembly. To mitigate this effect, the Corporation was compelled to sweep all the export receipts to JV cash call funding implying a zero dollar proceed remittance to the Federation Account since April.

    About N723.82billion for domestic crude oil and gas sales proceeds has been paid to the Federation Account from January to August 2015 as Naira proceeds, he added, while $607.8 million has been paid to the Federation Accounts Allocation Committee (FAAC) in 2015 from sales of oil and gas as dollar proceeds.

    Kachikwu recently promised to begin a monthly publication that will contain NNPC’s financial and operational reports. The publication, he said, will be available on the Corporation’s website and will report on the oil and gas value chain (upstream, midstream & downstream) as well as NNPC’s agency function on behalf of the Federal Government.

    According to Alegbe, the report provides detailed and unprecedented statistical insight into crucial aspects of the Corporation’s activities ranging from national crude oil & natural gas production, lifting and utilization; refineries’ plants operations; and petroleum product supply & distribution to NNPC budget performance report and federation crude oil & gas revenue.

    He said the report Illustrated with tables, graphs and charts, and vividly throws light into aspects of NNPC’s operations that were once described as opaque. Issues like the status of the misunderstand JP Morgan foreign account, management and custody of revenue from crude oil sales, actual production capacity of the refineries, dollar accruals to NNPC/Federal Government from export crude oil and gas, as well as receipts and  payments laid bare.

  • Foreign portfolio flow hits N778b in eight months

    Foreign portfolio transactions totalled N777.59 billion in the first eight months of this year as foreign investors continued to dominate transactions at the Nigerian capital market.

    The latest report on foreign portfolio investment (FPI) in Nigeria also showed that speculative foreign portfolio transactions might have contributed significantly to the sustained recession at the Nigerian stock market.

    The eight-month report for the period ended August 31, 2015, released yesterday, indicated that foreign investors accounted for 54.36 per cent of total transaction value during the period but the larger proportion of foreign portfolio transactions were outflows rather than inflows. The preponderance of sale transactions to buy transactions by the foreign investors left Nigeria with a deficit FPI position of N43.39 billion during the eight-month period.

    Total foreign portfolio outflow stood at N410.49 billion over the eight-month period, representing 52.8 per cent of the total foreign portfolio transactions of N777.59 billion. Total foreign inflow totalled N367.10 billion, 47.2 per cent of total foreign flow. Domestic investors accounted for N652.92 billion, 45.64 per cent of the market’s total transaction of N1.43 trillion during the eight-month period.

    The FPI report, coordinated by the Nigerian Stock Exchange (NSE), uses two key indicators-inflows and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy.

    Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active and major investment bankers, stockbrokers, custodians and other capital market operators.

    In what appeared to underline the steep decline in the stock market over the months, month-on-month analysis showed continuous trend of deficit FPI position. Total foreign inflow in August stood at N33.06 billion as against outflow of N48.07 billion, bringing total foreign transactions to N81.13 billion. Domestic investors contributed N64.56 billion, representing 44.31 per cent of the total transactions of N145.69 billion.

    Total transactions in July stood at N170.83 billion, consisting of N107.47 billion from foreign investors’ transactions and N63.36 billion from domestic investors, a ratio of 62.91 per cent to 37.09 per cent. Foreign transactions however included N58.83 billion outflow and N48.64 billion inflow, indicating a deficit of N10.19 billion.

    The eight-month FPI report is broadly in line with the half-year report, which had shown that about 52 per cent of total foreign transaction value were divestments. Foreign investors, who dominated the Nigerian capital market, had taken out more funds than they invested in the first half as investors waited for the political transition and clear macroeconomic and monetary policy direction of the new government.

    Total foreign portfolio investment outflow in the first half stood at N303.59 billion as against inflow of N285.40 billion, representing a deficit of N18.2 billion. The half-year deficit represents a relatively larger value given the significant undervaluation of the Nigerian equities and the extended deficit Nigeria had suffered since 2013.

     

     

    Nigeria had recorded a net foreign portfolio deficit of N154.14 billion in 2014, overriding a modest positive net flow of N20.48 billion recorded in 2013. The 12-month foreign portfolio investment report for 2014 had shown that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014. In 2013, total foreign inflow stood at N531.26 billion compared with outflow of N510.78 billion.

    The six-month report for the period ended June 30, 2015 showed that foreign portfolio investors accounted for about 53 per cent of total transaction value during the period while domestic investors accounted for 47 per cent. Total transactions stood at N1.114 trillion, with domestic investors accounting for N525 billion.

    The report however showed a month-on-month recovery in June. Total foreign inflow stood at N42.67 billion as against outflow of N26.98 billion in June, totaling N69.65 billion. Total transactions stood at N203.45 billion, with domestic investors contributing N133.80 billion. The foreign-domestic ratio stood at 34.24 per cent/65.76 per cent in June.

    In May, total foreign inflow had stood at N38 billion as against outflow of N41.77 billion, totaling N79.77 billion. Total transactions thus stood at N145.45 billion, with domestic investors accounting for N65.68 billion. Foreign investors accounted for 54.84 per cent while domestic investors accounted for 45.16 per cent.

    The market had recorded its first positive flow in April, after successive declines throughout the first quarter. Total foreign inflow rose to N54.20 billion in April as against outflow of N49.75 billion, representing a modest positive net inflow of about N4.45 billion. Total foreign transactions thus stood at N103.95 billion as against total domestic transactions of N102.91 billion during the month.

    In March, foreign portfolio outflows of N52.41 billion outpaced inflows of N50.15 billion. The first quarter had seen steady foreign portfolio deficits as investors weighed macroeconomic and political risks. Foreign outflows totaled N81.60 billion in February 2015 as against inflow of N52.35 billion, indicating a significant increase on the downtrend that started the year when foreign portfolio outflow was N51.08 billion against inflow of N48.03 billion.

    The 12-month foreign portfolio investment report for 2014 had shown that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014, representing a net deficit of N154.14 billion. In 2013, total foreign inflow stood at N531.26 trillion compared with outflow of N510.78 trillion, leaving a positive balance of N20.48 billion.

     

  • ‘Boko Haram can end in three months if…’

    ‘Boko Haram can end in three months if…’

    Retired Archbishop of Lagos, Cardinal Olubunmi Okogie yesterday said an end to insurgency within three months was possible if the right equipment was available.

    He stated this at the Tamandu Barracks in Lagos, during the silver  jubilee to mark the Priestly ordination of an Army Chaplain, Colonel Charles Ireogbu.

    He however noted that there were factors to be considered if the service chiefs were expected to deliver on the insurgency deadline given by President Muhammadu Buhari.

    Okogie said that aside equipment, training of the soldiers as well as determination and prayers could also end terrorism in the country.

    “Three months will be possible provided the equipment is there and functioning, if the soldiers are well trained and ready to fight,’’ he said.

    At the event was the General Officer Commanding, (GOC), 81 Division, Major General Isidore Edet, as well as other senior officers and men of the division.

    In his remark, Iroegbu who said he was proud to be an army officer, said it was fulfilling for him to serve his country in that capacity.

  • US consumer prices up for five months

    UNITED States consumer prices rose for a fifth straight month in June, pushed higher by a rise in the cost of fuel and food.

    Prices rose 0.3per cent last month after increasing by 0.4per cent in May, according to the Labor Department’s Consumer Price Index.

    Continuing price rises are likely to strengthen the case for an increase in US interest rates.

    However, the year-on-year rate is still only 0.1per cent, although excluding food and fuel so-called core inflation was 1.8per cent.

    Federal Reserve chair Janet Yellen said this week that a rate rise this year was likely if the economy continued to grow.

    Prices at the pump rose 3.4per cent in June on top of a 10.4per cent increase in May. Egg prices surged 18.3per cent, the biggest gain since August 1973. Other US data on Friday also pointed to a strengthening of the US economy.

    The Commerce Department said house building jumped by 9.8per cent in June, while the number of building permits issued rose 7.4per cent to a near eight-year high.

    The Fed has kept its short-term interest rate near zero for more than six years, but many economists believe rising prices will trigger a rate rise later this year.

    Ms Yellen has said she wants to see more improvements in the economy, particularly the jobs market, but expects rates to rise modestly by the end of the year.

    Employers have been adding a healthy 208,000 jobs a month so far this year, and the unemployment rate has fallen to a seven-year low of 5.3per cent.

    The dollar rose to a session high against a basket of currencies on the data.

  • Chibok girls: Nine months after

    SIR: Tomorrow January 9 marks 270 days, nine months since the abduction of school girls in Chibok town, Borno State. With about 37 days to election, it is becoming hopeless that Chibok girls will be released anytime soon. Campaigns and election matters will soon dominate the whole news in Nigeria and indeed the world. The much discussed election is undoubtedly going to be a great test on Nigeria and indeed for Africa’s democracy, and indeed security.

    The level of hopelessness among Nigerians is also increasing by the day. Nigerians must rise beyond the politics of tribe and religion. Uprightness, capacity to deliver on the yearnings and aspirations of Nigerians is one good reason why Nigerians must converge even if it is for the first time to rescue this land.

    Under normal circumstances, the Chibok girls ought to have graduated if that incident had not occurred. It is likely that some of them would have been in the university by now. Some of them could have been married with babies by now. Some of them could have started legitimate business by now. All of those dreams are gone at least for now.

    Nigerians must remain in prayers for a better Nigeria, put all their commitment into a free, fair and credible elections come February.

     

    •Comrade Abdulbaqi Jari Katsina

    Katsina State

  • Customs makes 1,608 seizures worth over N600m in six months

    The Federal Operations Unit, Zone ‘A’, Ikeja, Lagos of the Nigeria Customs Service has recorded a total of 1,608 seizures comprising assorted, prohibited goods from January till date.

    Making this disclosure was the outgoing Comptroller of the Unit, Comptroller Nuhu Isa Mamoud.

    Mamoud, who was lately re-deployed to Customs headquarters, while giving the mid-year report of the Unit, recalled that “the seizures were valued at N612,513,600.00 with a payable duty of N323,823,327.00 and a duty paid value of N936,336,927.00”, adding: “This figure represents over 50% positive differences when compared with the report of corresponding period of 2013.”

    He listed seized illicit items included: rice imported through unapproved routes, foreign frozen poultry products, vegetable oil, used tyres, fridges, compressors, used vehicles, spaghetti/noodles and a host of other general goods.

    Further commenting on the operations of Customs thus far, the Customs boss said: “The present regime of the Nigeria Customs ensured full automation of Customs procedures, noting that the direct effect is the Assycuda ++ (Automated System for Customs Data) which enables all Customs Commands to assess information online. This is targeted at trade facilitation. It is therefore instructive to state that the Federal Operations Unit Zone ‘A’ has keyed into the full automation with a robust Assycuda section in the Unit, which enables compliance in line with the CGC’s directives.”