The Nation Newspaper

Tag: production

  • ‘Poor fiscal regimes disincentive to deepwater gas production ’

    Poor fiscal terms are hindering deepwater blocks owned by international oil companies (IOCs) from optimising gas production, the Chief Operating officer, First Exploration and Production Company Limited, Dr Saka Matemilola, has said.

    According to him, the gas terms are more favourable to those producing onshore than those in the deepwater where oil firms, such as Shell, ExxonMobil, and Chevron, operate.

    He said IOCs moved to deepwater offshore because they thought it would be more profitable to do so, adding that  the IOCs were not finding things easy.

    Matemilola said the issue was making stakeholders in the value chain to ask for more government participation in the sector.

    He said: “For some time, the industry has been clamouring for the provision of better gas terms, especially in the deepwater to ease the burdens of operation on the oil majors.

    “Beyond the issue of provision of better gas terms, is the issue of economics, which stakeholders including the government, must take into consideration to achieve the desired results in the sector.”

    Matemilola, also the Chairman, Society of Petroleum Engineers (SPE) Nigerian Council, urged the government and other stakeholders to adopt a private model when it comes to pricing and sale of gas.

    He said: “A willing buyer and a willing seller agreement must be in place to meet the needs of operators in the nation’s gas industry.”

    According to him, when a gas company is forced by the Federal Government to sell at a particular rate, the firm would not achieve its economic goal, noting that bigger and smaller companies are in the industry and that it would not augur well if all the firms were forced to buy gas at a uniform price.

    He urged the government to handle the agreement on associated gas with caution to avoid  crisis in the industry.

    According to him, the government is planning to jettison the agreement, advising that the government think about it well before taking decision on the issue.

    He said the government needed to consider a likely replacement for the agreement, which is being presented to the stakeholders for discussions.

    The government, he said, must think of the implications of jettisoning the agreement since it would not pay all the stakeholders.

    He added:“I understand that the Federal Government is saying that associated gas agreement would favour companies that have oil and gas but how about the companies that have only gas, which implies that they do not have oil to net off?”

  • ‘How to tackle deficiency in fish production’

    ‘How to tackle deficiency in fish production’

    An expert in aquaculture, Mrs. Mojisola Funmilayo Siyanbola, has urged the Federal Government to provide effective and efficient proactive security measures to tackle the deficiency in fish production and preservation.

    Mrs Siyanbola, a  senior lecturer, Department of Biology, The Polytechnic, Ibadan, while delivering the 11th Inaugural Lecture of the institution titled, “Nigeria’s fish supply deficit: Bridging the gap through sustainable aquaculture,” stressed the  need to transform aquaculture from subsistence to commercial level to address inadequate supply of fish in the country.

    She said: “From all indications, fish production in the country has been deficient for many years in meeting the projected domestic demand. This trend seems to be unrelenting due to the ever widening gap between demand and supply”.

    “The activities of the artisans and industrial fisheries have been the backbone of fish production in Nigeria, but over the years, their contributions have been unable to meet up with the annual demand.”The problem of insecurity which is a serious problem to our aquatic resources especially the marine resources should be tackled. There must be an effective and efficient proactive security measures to protect our aquatic resources.”

    While advocating for provision of soft loans and grants to young Nigerians to enable them embark on commercial fish production, Siyanbola urged the government to shift from its cosmetic and elitist policies and  go back to the drawing board to work out strategies to attract prospective young farmers to involve in fishing business. “The Federal Government should make it a policy for financial institution to provide soft loans and grants to young Nigerians to enable them embark on commercial fish production.

    “The Nigerian government approach to fish culture is at best cosmetic and elitist. The Federal Government must go to the drawing board to work out strategies to attract young Nigerians into the fish farming subsector as one pragmatic panacea to the disturbing menace of youth unemployment which constitutes grave threat to our national security which can be seen from the involvement of younger citizens in crimes of kidnapping for ransom payment, terrorism, pipelines vandalism and other organised crimes.”

    Mrs Siyanbola also recommends among others the need to checkmate piracy so as to make fish culture subsector beneficial to the national economy, regular capacity building and training/workshops for extension officers in aquaculture at both Federal, state and local levels, and introduction of aqua-entreprenureship as one of the vocations in entrepreneurship education curriculum.

  • N4m budgeted for indigenous fruit trees production

    Enugu State government earmarked N4 million for the production of 300,000 forest trees and indigenous fruits in its 2017 budget, Finance Commissioner Mrs. Eucharia Offor has said.

    She spoke at the 2017 budget breakdown in Enugu.

    Offor said the N4 million was part of the N46 million allocated to the Forestry Commission.

    She added that it was under the seeding production the government aimed at raising more than 150,000 fast growing forest tree seedlings of teak and eucalyptus.

    The commissioner said another 150,000 indigenous fruit trees, such as mahogany and others used in the production of local delicacies would be raised.

    She explained that N5 million was budgeted for retracement of boundaries of some encroached forest reserves, while N2 million would be for the maintenance of newly established 80 hectare forest plantations.

    Offor said N5million was for the enlightenment and sensitisation of communities that host forest reserves on climate change benefits accruable from forest preservation and reservation.

  • 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.

  • Fed Govt mulls fertiliser price slash to boost agric production

    The Federal Government plans to slash the price of Nitrogen, Phosphorus and Potassium (NPK) fertiliser to N5, 000 per bag to encourage farmers to boost agricultural production in the country.

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who made this known to newsmen in Abuja, said the plan is to make food production easier and enhance profit for farmers in the country.

    The minister said the government would take delivery of the first shipment of 800, 000 tonnes of NPK fertiliser from Morocco by January 27.

    According to him, government wants the blending to take place everywhere in the country so that farmers can have access to fertiliser at the lowest possible cost.

    A bag of NPK  costs between N7, 500 and N9, 000 in the open market. But with the first shipment of phosphate from Morocco expected to arrive today in Lagos and then the blending done here, Ogbe said: “We are bringing the price of fertiliser to N5, 000 per bag.”

    He explained that the government wants to ensure that every blender in the country who has the capacity will blend.  “If we can bring the prices of fertiliser to N5, 000 per bag, food production will become easier and farmers will enhance their profit,” the Minister said.

    He said this was why the King of Morocco (Mohammed VI) came to Nigeria and the reason  why President Muhammadu Buhari visited Morocco. “The target we have is about 800,000 tonnes of fertiliser per annum from Morocco, but the problem we have is that we do not only satisfy Nigerians, our neighbours always come in and take a bit,” Ogbe said.

    While noting that Nigeria cannot deny her neighbours entirely, he said “we have to satisfy ourselves first.’’

    It would be recalled that indigenous conglomerate Dangote Group and the OCP Group of Morocco had in December 2016 signed an agreement to import more than two million tonnes of customised fertiliser into Nigeria.

    The agreement was meant to boost fertiliser production and businesses in the country within the next three years.

    The OCP Group is said to be a global leader in the phosphate and phosphate derivatives market.

  • Kano’s rice production up by 95 per cent, says Ganduje

    Rice produced by farmers in Kano State rose from 692, 481 tonnes to 1, 551, 720 tonnes last year, representing an increase of about 95.2 percent, Governor Abdullahi Umar Ganduje, has said.

    The governor dropped the hint  during an interactive session on loan recovery, with farmers on the Central Bank of Nigeria/Bank of Agriculture/Kano State Rice Anchor – Borrowers Programme, at Kano Seed Processing Centre, Kadawa, Garun Malam Local Government area, last Saturday.

    He said: “Wheat production in the state increased from 9, 495, 024 tonnes in 2015 to 17, 717, 000 tonnes in 2016, showing a swell of 84 percent.”

    Also,Ganduje said the bumper harvest recorded last year in Kano showed a significant increase in the production of other commodities, such as maize, millet, groundnut and cow peas, adding that with the government’s commitment, barring unanticipated developments, the output would be multiplied this year.

    On impediments to the farmers’ productivity, the governor said: “I have noticed that there are two major issues in Anchor-Borrower Programme.’’

    According to him, farmers were complaining that they are not getting the assistance when they needed it,  and that this was constituting a major problem and secondly, ‘’those who are involved in the scheme (CBN and BOA) are complaining that farmers are not paying back what has been given to them”.

    He promised that these issues, as well as that of availability of input would be addressed, between the government and the banks involved, so as to ensure that farmers get appropriate assistance and other required intervention duly.

    The governor directed the supplier providing the government with fertiliser to provide the commodity to the farmers from yesterday  (Sunday), assuring that anything the farmers need would be provided to them to ensure a hitch-free productivity.

    However, Ganduje urged beneficiaries of the CBN/BOA/Kano state Rice Anchor-Borrowers Programme to ensure that they repay the loan given them accordingly, since it is a revolving facility that will pave way for other farmers to benefit, pointing out  that the state is poised to increase its rice production to about half of the country’s rice requirement this year.

    He maintained that his administration would concentrate more on agriculture this year to ensure multiplication of farmers output, pointing out that the administration recognises the fact that it must work hard to improve capacity of farmers and address the many factors that contribute to their minimal productivity.

    “Economic realities have shown that Nigeria’s future prosperity depends on investment in our farmers, to enable them become well prepared to revamp food productivity, as oil money is no longer coming in as usual”, the governor added.

  • Nigeria’s oil production disruptions dip OPEC’s output

    Nigeria’s oil production disruptions dip OPEC’s output

    Crude oil production of the Organisation of Petroleum Exporting Countries (OPEC)  dipped by 310,000 barrels per day (bpd) in December, as unplanned disruptions in Nigeria reduced the group’s supply before deliberate cuts take effect this month.

    Nigeria’s daily output dropped by 200,000 bpd to 1.45 million in December, ending three months of gains as the nation struggled to restore capacity after a year of militant attacks on oil infrastructure. Saudi Arabia’s production fell by 50,000 bpd while Venezuela declined by 40,000.

    “Crude production in Nigeria in December was once again severely impacted, mostly due to a field maintenance as well as a strike of port workers,”  Chief oil analyst at London-based consultant Energy Aspects Ltd., Amrita Sen, explained by e-mail.

    The decline in December comes as OPEC, which controls around 40 per cent of global supply, is planning to curb output in a bid to boost oil prices. The organisation reached a historic deal last month with Russia and other non-members to cut global production by almost 1.8 million bpd starting this month.

    Brent crude, the global benchmark, advanced 52 per cent last year, the biggest annual gain since 2009. Prices were down 0.3 per cent at $56.31 a barrel as of 6:39 a.m. London.

    Overall, OPEC-excluding Indonesia which suspended its membership on Nov. 30-pumped 33.1 million bpd in December, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. That compares with a November total of 33.41 million bpd for the 13 continuing members of the group, or 34.14 million including Indonesia’s daily output of 730,000 barrels.

    Under the terms of last month’s agreement, OPEC’s total output including Indonesia would fall to 32.5 million bpd. Compliance with that target will be judged against independent estimates compiled by OPEC, which can vary from the Bloomberg News survey.

    In Nigeria, which along with Libya is exempt from making cuts because of conflict,  maintenance on the Erha field and strike action by workers at Exxon Mobil Corp.’s operations in the country disrupted both exports and production, Sen said. A year ago, the country was pumping almost 2 million bpd.

    No cargoes of the Agbami crude grade were shipped in first half of December, while three out of the four Erha cargoes originally scheduled to load were deferred, with two of those moved into January, according to loading programs obtained by Bloomberg.

    Iran, Kuwait and Angola each reduced output by 20,000 barrels a day while Algeria and Iraq dropped by 10,000, the survey showed.

    Libya pumped an extra 50,000 barrels a day last month as the Northern African nation reopened two of its biggest oil fields and loaded the first cargo in two years from its largest export terminal.

  • ‘Poultry farmers struggling with high production cost’

    Poultry farmers are facing high production costs, the President, Poultry Association of Nigeria (PAN), Dr. Ayoola Oduntan, has said.

    Oduntan, who spoke in Lagos, said the industry was facing shortages of products required for proper husbandry, adding that some farmers have been forced to pull out of the business.

    He said rising feed prices have affected the cost of egg production.

    Oduntan said the price of maize per tonne has risen to N120,000, while soyabeans cost N145,000. The prices were N60,000 and N80,000 two years ago. Feed supplements, such as fish and bone meals, have also risen.

    As a result of the increase, feed ingredient prices and production cost per dozen for egg producers have also risen, he said,

    Given that projected demand for corn is likely to increase and continued naira depreciation inevitable, he said poultry producers’ costs and profitability would be negatuvely affected. Oduntan noted that Nigeria loses about N700 billion annually to smuggled poultry products.

    According to him, the smuggled products, which are majorly frozen chicken and turkey, have negative impact on Nigerians.

    He regretted that the government was yet to compensate farmers who suffered losses as a result of cooperating with the government to destroy the affected birds.

    Oduntan noted that the association would not relent in its efforts and would continue to focus on policy, advocacy and institutional linkages that would put poultry production on the path of excellence.

    He said the association’s National Poultry Show has been scheduled for between November 29 and 30, at Abeokuta, the Ogun State capital.

    Industry leaders, researchers, scientists and entrepreneurs are expected at the event billed to help create a sustainable poultry industry.

  • Don endows N.5m for FUTMinna’s best in Animal Production

    Emerging as the best graduating student in Animal Science at the Department of Animal Production of the University of Technology, Minna (FUTMinna), will henceforth become more competitive. Reason: one of the teachers in the department, Prof Abdulmojeed Tunji Ijaiya, has pledged a N500,000 endowment for whoever clinches the trophy.

    The award, which was pledged in honor of Ijaiya’s late mother, Alhaja Amunat Ajala, would take effect from the 2017/2018 academic session.

    Ijaiya, a professor of Animal Production, announced the goody while delivering the 46th inaugural lecture of the university at the Caverton lecture theatre in Gidan Kwano.

    He described the gesture as part of his contribution towards encouraging the best student in the department for his or her hardwork, while challenging others to aspire higher.

    In his lecture entitled: ‘Waste to Wealth: Micro livestock production as a catalyst for food (protein) security,’ Ijaiya stressed the need to have livestock approach to livestock production and involve small livestock producers and expose them to up to date research findings and extension services to enhance micro-livestocks production.

    Ijaiya also explained how various cheaper diets can be used in exchanging feeds for livestock without any effect on their performance.

  • Minister seeks increased vaccines production for animal diseases

    Minister seeks increased vaccines production for animal diseases

    The Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri, has called on the Nigerian Veterinary Medical Association to intensify vaccines production to curb Avian Influenza and other animal diseases in the country.

    He made the call when the association’s executives visited him in his office in Abuja.

    Lokpobiri said for the government to achieve a sustainable food security, more funding was required to support commercial vaccine production.

    He said: “For us to achieve the objective, we need more funding. If the Veterinary Council of Nigeria and your association intensify efforts in vaccines production, we will be able to control or combat the spread of Avian Influenza and other deadly diseases.”

    The minister commended the collaboration between the Veterinary Council and the Veterinary Medical Association, assuring that the ministry would complement their efforts by providing standard abattoirs,cattle grazing and other problems.

    He promised to direct the Director, Legal Department in the ministry to work with the association in reviewing relevant laws that would enhance their operations.

    Nigerian Veterinary Medical Association President, Dr. Edgar Amos Sunday, who led the delegation, noted that the group had contributed to the development of the agricultural sector, especially in the containment of livestock and zoonotic diseases, curbing of cattle rustling and herdsmen/farmers clashes.

    He highlighted the need to review laws hindering veterinary service delivery and livestock development.

    “This should aim to repeal obsolete sections and insert new ones to suit contemporary realities,” he added.