Nigerian Government Reaches Agreement with Oil Producers to Supply Domestic Refiners at Market Prices
Posted on Jul 11, 2024 | By Shola Akinyele
Business
1 min read
The federal government of Nigeria, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), has reached an agreement with oil producers to supply crude oil to domestic refiners at market prices. This resolution, reported by Reuters, ends a longstanding supply dispute that has strained relations with international oil companies. NUPRC Chief Executive Gbenga Komolafe emphasized the importance of pricing fairness in promoting domestic refining. "We will never allow price strangulation to disincentivize our domestic refining capacity optimization," said Komolafe. Komolafe reiterated the commission's commitment to preventing "crude supply profiteering" while ensuring that oil production remains profitable. To maintain transparency, the NUPRC has requested monthly cargo price quotes on crude oil supply and delivery from both producers and refiners. The NUPRC aims to balance upstream...
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Fuel Prices Soar to ₦1,100 Per Litre in Kaduna Amid Severe Shortage
Posted on Jul 11, 2024 | By Shola Akinyele
Business
3 min read
Kaduna Faces Severe Fuel Shortage as Petrol Prices Surge to ₦1,100 Per LitreThe scarcity of Premium Motor Spirit (PMS), commonly known as petrol, has reached a critical level in Kaduna State, with pump prices soaring to as high as ₦1,100 per litre. Residents are urging the Nigerian National Petroleum Company Limited (NNPCL) to urgently address the supply issues causing the crisis.This new wave of scarcity also hit Lagos, Abuja, and other states over the weekend. Ex-depot prices have risen to ₦700 per litre, while pump prices have surged to ₦900 per litre as of Monday.Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, explained in a statement on Monday that adverse weather conditions have disrupted fuel supply logistics. “The fuel queues...
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NNPCL Attributes Petrol Scarcity to Disrupted Ship-to-Ship Transfers
Posted on Jul 09, 2024 | By Shola Akinyele
Business
1 min read
The Nigerian National Petroleum Company Limited (NNPCL) has attributed the current scarcity of Premium Motor Spirit (PMS), commonly known as petrol, to disruptions in ship-to-ship transfers.In a statement released on Monday in Abuja, NNPCL's Chief Corporate Communications Officer, Olufemi Soneye, explained the situation: "The fuel queues in the FCT are primarily due to the disruption of ship-to-ship (STS) transfer of PMS between Mother Vessels and Daughter Vessels resulting from recent thunderstorms, and the consequential flooding of trucking routes which constrained movement of PMS to Abuja from coastal corridors." Petrol has been scarce in the Federal Capital Territory (FCT) since last week, causing pump prices to soar between N720 and N820 per litre. While some independent marketers are selling petrol for N690...
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Oando Plc Acquires Nigerian Agip Oil Company; Nigeria's Oil Rigs Hit 34 in June
Posted on Jul 04, 2024 | By Shola Akinyele
Business
2 min read
In September 2023, The PUNCH reported that Oando Plc had reached an agreement with Italian firm Eni to acquire 100% of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited. Although the transaction value was not disclosed, analysts estimated it to be over $500 million. Ayotola Jagun, the Company Secretary of Oando Plc, stated that the completion of the transaction was subject to ministerial consent and other required regulatory approvals. This acquisition will increase Oando's current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.Additionally, in November 2023, it was reported that Norwegian energy firm Equinor had hired Standard Chartered to assist in the sale of its major stake in an offshore oilfield...
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Four Nigerian Electricity DisCos Announce Tariff Increase to N209.5/kWh for Premium Customers
Posted on Jul 04, 2024 | By Shola Akinyele
Business
2 min read
Four electricity distribution companies (DisCos) have announced a tariff increase from N206.80 to N209.5 per kilowatt-hour (kWh) for premium customers under the Band A category. In separate statements on Wednesday, the DisCos stated that the increase took effect on July 1 and applies to both prepaid and postpaid customers. Kaduna DisCo, in a notice posted on X, assured its Band A customers of continued 20-24 hours of daily electricity supply as stipulated in the service-based tariff regime. The firm also noted that tariffs for Bands B, C, D, and E remain unchanged. Similarly, Port Harcourt DisCo confirmed the guaranteed availability of a minimum of 20 hours of electricity per day for Band A customers, while maintaining that tariffs for Bands B, C, D,...
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WTI Crude Oil Eyes Steeper Rally Amid Bullish Indicators and Market Volatility
Posted on Jul 02, 2024 | By Shola Akinyele
Business
2 min read
WTI crude oil had been on an upward trajectory within an ascending channel since the third week of June, before breaking through the resistance to signal a potential steeper rally. Currently, WTI crude is forming a bullish flag pattern. A break above this short-term consolidation could confirm a rally matching the mast's height, spanning approximately $1.50 from $82 per barrel to $83.50 per barrel. The 100 SMA is positioned above the 200 SMA, indicating that the path of least resistance remains upward, suggesting further gains. However, the narrowing gap between these indicators hints at slowing bullish momentum or a potential retest of the former channel top at $83 per barrel. Technical indicators show mixed signals. Stochastic is in the overbought zone, reflecting potential...
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Nigerian Telecoms Report Q1 2024: Active Voice Subscribers Drop by 3.03%, Internet Subscribers Increase by 4.33%
Posted on Jul 02, 2024 | By Shola Akinyele
Business
1 min read
The Nigerian telecom sector witnessed a mixed performance in Q1 2024, with a decline in active voice subscribers and a growth in active internet subscribers. According to the latest report, the total number of active voice subscribers fell to 219,304,281 in Q1 2024, down from 226,161,713 in Q1 2023, representing a growth rate of -3.03%. On a quarter-on-quarter basis, active voice subscribers decreased by 2.41%. Conversely, the total number of active internet subscribers increased to 164,368,292 in Q1 2024 from 157,551,104 in Q1 2023, marking a 4.33% rise. The quarter-on-quarter growth for active internet subscribers was 0.32%. State-wise Analysis:- Highest Active Voice Subscribers: - Lagos: 25,956,074 - Ogun: 12,672,990 - Kano: 11,931,128- Lowest Active Voice Subscribers: - Bayelsa: 1,608,473 - Ebonyi: 1,885,657 - Ekiti: 1,969,568 - Highest Active Internet Subscribers: -...
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Naira Trades at N1,507.83 to Dollar Amidst $24 Billion Q1 Inflow Boost
Posted on Jun 27, 2024 | By Shola Akinyele
Business
2 min read
On Wednesday, the naira exchanged at N1,507.83 per dollar at the official foreign exchange (FX) market, reflecting improved liquidity as Nigeria recorded a significant $24 billion inflow in the first quarter of 2024. Despite the day's trading activities, the naira depreciated by 0.47 percent, with the dollar quoted at N1,507.83 compared to N1,500.79 on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange Limited. The dollar supply by willing buyers and sellers surged by 28.9 percent to $176.39 million on Wednesday, up from $136.75 million recorded on Tuesday. The intraday high closed at N1,523 per dollar, up from N1,507 the previous day, while the intraday low was quoted at N1,430.91, rising from N1,426 per...
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Nigeria Sees 210,000 Increase in Electricity Consumers in Q1 2024, NBS Reports
Posted on Jun 25, 2024 | By Shola Akinyele
Business
2 min read
The number of electricity consumers in Nigeria surged by 210,000, rising from 12.12 million in the fourth quarter of 2023 to 12.33 million in the first quarter of 2024, according to the National Bureau of Statistics (NBS). In its Electricity Report for Q1 2024, released on Tuesday in Abuja, the NBS highlighted a 1.78 percent increase in electricity customers. The report, as covered by the News Agency of Nigeria, examines energy billing, revenue generation, and customer data across the Distribution Companies (DISCOS) for the reviewed period. Year-on-year, electricity customers grew by 9.47 percent, from 11.27 million in Q1 2023 to 12.33 million in Q1 2024. Metered customers also saw a notable increase, reaching 5.91 million in Q1 2024, a 5.38 percent rise...
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Modular Refineries Seek Afreximbank's $18 Billion Fund Amidst Funding Discussions
Posted on Jun 20, 2024 | By Shola Akinyele
Business
3 min read
Investors in Nigeria’s modular refineries have initiated discussions with the African Export-Import Bank (Afreximbank) to access a portion of the bank's planned $18 billion fund earmarked for refinery development across Africa. This move follows Afreximbank's successful financial backing of the $19 billion Dangote Petroleum Refinery, which is now operational and contributing to domestic and international petroleum product markets. Operators in the modular refining sector, including Clairgold Refinery and Shinjin Petro Chemicals, have engaged with Afreximbank officials to secure funding for their respective refinery projects in Nigeria. Despite these discussions, concerns remain among modular refiners regarding the availability of feedstock, a crucial component that financial institutions often require as part of project guarantees.The Crude Oil Refinery Owners Association of Nigeria (CORAN), representing...
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Petrol Prices Surge by 223% to ₦770 per Litre in May 2024, Reports National Bureau of Statistics
Posted on Jun 20, 2024 | By Shola Akinyele
Business
2 min read
Abuja, June 20, 2024** – The average price of Premium Motor Spirit (PMS), commonly known as petrol, has skyrocketed by 223.21% to approximately ₦770 per litre in May 2024, compared to ₦238.11 per litre in May 2023, according to the National Bureau of Statistics (NBS). In its latest report, "Premium Motor Spirit (Petrol) Price Watch for May 2024," the NBS highlighted a month-on-month increase of 9.75%, up from ₦701.24 per litre in April 2024. Jigawa State recorded the highest petrol prices at ₦937.50 per litre, followed by Ondo and Benue States at ₦882.67 and ₦882.22 per litre, respectively. Conversely, Lagos, Niger, and Kwara States reported the lowest average prices at ₦636.80, ₦642.16, and ₦645.15 per litre, respectively. Regionally, the North West Zone had...
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Cooking Gas Prices Soar: 13.75% Increase in May 2024, Reports National Bureau of Statistics
Posted on Jun 20, 2024 | By Shola Akinyele
Business
2 min read
Abuja, June 20, 2024 – The National Bureau of Statistics (NBS) has reported a significant rise in the average price of 5kg cooking gas, which climbed from N6,521.58 in April 2024 to N7,418.45 in May 2024. This represents a 13.75% increase within a single month. According to the NBS's "Cooking Gas Price Watch" for May 2024, released on Wednesday, the price surge also reflects a substantial year-on-year increase of 70.12%, up from N4,360.69 in May 2023 to N7,418.45 in May 2024. The report highlighted the varying prices across different states. Benue recorded the highest average price at N8,012.03, followed by Enugu at N7,926.21 and Ondo at N7,857.53. Conversely, Yobe had the lowest price at N5,842.31, with Jigawa and Katsina both at N6,521.81. Regional...
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Nigeria’s Oil Production Marginally Increases to 1.46 Million Barrels Per Day in May 2024
Posted on Jun 18, 2024 | By Shola Akinyele
Business
3 min read
Nigeria’s oil production saw a slight increase of 1.45% in May 2024, reaching 1.46 million barrels per day (bpd) from 1.44 million bpd in April. This modest gain, however, fell short of the country’s OPEC quota of 1.5 million bpd and the 1.7 million bpd benchmark set for the 2024 national budget. The latest figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) contradict statements by Minister of State Petroleum Resources (Oil) Senator Heineken Lokpobiri and Nigerian National Petroleum Company Limited CEO Mr. Mele Kyari, who claimed that oil production had reached 1.7 million bpd. In May, Nigeria's output comprised 1.25 million bpd of crude oil and 217,076 bpd of condensate production, failing to meet targeted levels. This highlights ongoing challenges in...
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Dangote Refinery to Start ULSD and Petrol Production in June and July
Posted on Jun 18, 2024 | By Shola Akinyele
Business
2 min read
The Dangote refinery, with a capacity of 650,000 barrels per day, is set to begin production of 10 ppm sulphur diesel (ULSD) during the week of June 17, with petrol production expected to follow by July 10. Aliko Dangote shared this update in an interview with Channels Television on June 11. These timelines mark a slight delay from the previous guidance provided by the company’s vice president for oil and gas, Devakumar Edwin, who had projected diesel exports and local gasoline sales to commence this month.In the interview, Dangote highlighted the challenges faced by the West African diesel market, which has been inundated with low-quality oil products with high sulphur content ranging from 2,000ppm to 3,000ppm. He emphasized the refinery's commitment...
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African Development Bank Invests $700 Million in Education and Skills Development, Aims for Digital Economy Growth
Posted on Jun 11, 2024 | By Shola Akinyele
Business
2 min read
During his keynote address at Chatham House in London over the weekend, Akinwumi Adesina, President of the African Development Bank Group (AfDB), unveiled the bank's commitment of $700 million towards education and skills development. Adesina highlighted the bank's support for 4,000 tertiary education and training institutions, benefiting 1.7 million African youth with access to Science, Technology, Engineering, and Mathematics (STEM) education. Adesina emphasized Africa's burgeoning youth population, necessitating substantial investments in digital infrastructure to unlock the potential of the digital economy. He underscored the bank's focus on investing in human capital to foster Africa's growth, tapping into scientific talents within the diaspora and supporting universities of science and technology. With Africa experiencing a significant increase in start-ups, reaching 5,200 between 2020 and...
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Metal Manufacturing Nigeria Limited (MMNL) to Invest $50 Million in Tubular Batteries Production Expansion
Posted on May 28, 2024 | By Shola Akinyele
Business
3 min read
In a strategic move to meet the surging demand within Nigeria's energy sector, Metal Manufacturing Nigeria Limited (MMNL) has announced plans to invest $50 million to scale up its Tubular Batteries Production. The investment aims to double the company's expansion capacity to 60,000 pieces per month within the next financial year, with a broader objective of reaching 100,000 units over the next five years through backward integration. MMNL, Nigeria's largest tubular battery company, is diversifying its business verticals through backward and forward integration, including forays into the mining segment. This multifaceted approach is aimed at maintaining a competitive edge in the market and ensuring sustained growth. Despite facing numerous challenges over the past five years, including a scarcity of skilled manpower, supply...
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Nigerian Banks Rake in N438bn from Digital Channels in 2023, Analysis Shows
Posted on May 28, 2024 | By Shola Akinyele
Business
2 min read
An analysis of annual reports from 10 financial institutions reveals that digital banking channels contributed approximately N438 billion to their revenue in 2023, marking a substantial increase compared to the previous year. Earnings from electronic transactions surged by 37.54%, rising from N318.64 billion in the preceding year to N438 billion in 2023. This e-business income encompasses revenue generated from electronic channels, card products, and associated services. These electronic channels include mobile applications, USSD channels, ATMs, agency banking, internet banking, point of sale payments, as well as credit and debit card transactions, reflecting the growing preference for mobile and online banking services in Nigeria. Among the banks analyzed were FBN Holdings, Access Holdings, Guaranty Trust Holding Company, United Bank for Africa, Zenith Bank, Wema...
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Naira Strengthens to 1,339.33/$ as Forex Turnover Declines, CBN Data Shows
Posted on May 28, 2024 | By Shola Akinyele
Business
2 min read
The Nigerian naira saw a significant appreciation to 1,339.33 against the US dollar at the close of trading on the official window on Monday, marking a remarkable gain of 9.68% compared to Friday’s rate of 1,482.81/$. Data from FMDQ, the platform housing the Nigerian Autonomous Foreign Exchange Market, revealed a notable decrease in daily turnover, plummeting to $180.80 million from $556.25 million recorded on Friday, indicating a substantial decline of 67.50%. During Monday's trading session at the official market, the naira reached an intraday high of N1,501 and a low of N1,310 against the dollar. Conversely, at the parallel market, the naira traded at N1,520, reflecting a slight depreciation of 1.32% from Friday's rate of N1,500. Last Friday, the local currency closed unchanged against...
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Tech award to recognise Africa’s business leaders
Posted on May 17, 2024 | By Nathaniel
Business
1 min read
Edniesal Consulting Limited has announced the launch of the 5th edition of the CIO & C-Suite Awards Africa, an event dedicated to recognising and celebrating executive leaders who have driven remarkable innovations through technology across Africa.The firm said in a statement that this year’s edition would cover 11 countries in Africa, including Ghana, Rwanda, Senegal, Tunisia, South Africa, Uganda, Kenya, Morocco, Egypt, Zambia, and Nigeria.The awards will highlight the achievements of leaders who have made significant contributions to their industries, leveraging technology to achieve extraordinary business outcomes and foster innovation within their organisations.The awards ceremony will take place on Saturday, November 30, 2024, at the Civic Centre, Lagos, Nigeria, featuring a conference and two sessions that will bring together industry...
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