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Oil Revenue Dwindles As Nigeria Misses January OPEC Quota

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Nigeria fell short of its crude oil output target for January 2022, pumping 1.46 million barrels per day against the 1.683 million barrels per day target set by the Organization of Petroleum Exporting Countries.

The country’s persistent inability to fulfill its output objective, according to officials from the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited, has resulted in a monthly decline in the NNPC’s remittances to the Federation Account.

They blamed Nigeria’s long-term inability to reach its OPEC output limit on a wave of oil pipeline vandalism, as well as a delay in fully implementing the Petroleum Industry Act.

It was gathered that before the PIA was assented to by the President in August 2021, some international oil companies were already developing cold feet with respect to investing in the upstream oil business.

It was, however, learned that the President’s assent to the PIA gave confidence to some of the IOCs.

But government officials explained that the drag in the implementation of the PIA coupled with the recent suspension of petrol subsidy removal and a possible amendment of the Act was currently impacting negatively on the sector.

These factors, according to experts and senior government sources, are contributory to the inability of Nigeria to meet its OPEC crude oil production target.

Nigeria is a strong and long-standing member of OPEC. A document obtained on Tuesday from the 13-member organization, which was a Reuters survey of OPEC crude oil production for January 2022, showed that the country’s output last month was below the OPEC-approved crude oil production target.

It was observed that Nigeria’s 1.46mbpd production in January was slightly higher than its 1.41mbpd December 2021 output, but the survey pointed out that OPEC struggled to pump at target due to the inability of members to meet their targets despite the rise in oil prices.

The survey indicated that the OPEC output in January this year rose by 210,000 barrels per day over the December 2020 production, adding that Angola and Nigeria were among the producers that could not meet their targets.

It stated that OPEC’s oil output in January again undershot the increase planned under a deal with allies, highlighting some producers’ struggle to pump more even as prices trade at a seven-year high.

“OPEC pumped 28.01 million barrels per day in January, up by 210,000bpd from the previous month but short of the 254,000bpd increase allowed under the supply deal,” the document read in part.

OPEC and its allies, a group is known as OPEC+, had agreed to allow for a 400,000bpd production increase in January from all members, of which about 254,000bpd was shared by the 10 OPEC members participating in the deal, according to OPEC documents.

Commenting on the factors limiting Nigeria’s ability to meet its OPEC quota, an official of the NNPC, who pleaded not to be named due to lack of authorization, said, “Vandalism, oil theft and the impact of COVID-19 are affecting our production capacity.

“However, it is important to state that with energy transition globally, the IOCs are not very keen on increasing crude oil production. Although this is a global issue.”

Another source at the oil firm observed that “the seeming uncertainties in the implementation of the PIA, coupled with the investment drop and divestments by the IOCs, particularly onshore and shallow water assets are also taking their toll on our oil production.”

Speaking further on the matter, an impeccable source at the FMPR told our correspondent that the oil production slump also warranted the monthly fall in remittances to the Federation Accounts Allocation Committee by the NNPC.

“This is despite rising crude oil prices, which crossed $90 per barrel recently,” the source stated.

Meanwhile, industry figures seen on Tuesday showed that the cost of Brent, the crude against which Nigeria’s oil is priced, dropped marginally by $0.78 or 0.87 percent to $88.48 per barrel as of 4 pm Nigerian time.

BIG STORY

Catholic Priest, Other Church Officials Arrested, Detained Over Abuja Palliative Stampede Deaths

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A senior Catholic priest in Nigeria’s Federal Capital Territory, Abuja, has been arrested over the tragic stampede that claimed 10 lives during the distribution of free food to the needy at “Holy Trinity Catholic Church, Maitama.”

It was gathered that a number of officials of the church involved in the planning and execution of the ill-fated charity event have also been arrested by security agents. All those arrested have been taken into detention and will likely spend Christmas behind bars, a top Catholic Church leader confirmed on Christmas Eve.

The arrests came against the background of demands by the Islamic activist group, “Muslim Rights Concern (MURIC),” for the arrest of those behind the event and a similar one in Okija, Anambra State, where 22 persons were confirmed dead in a billionaire businessman’s house. MURIC had demanded that organisers of a similar tragic charity event in Ibadan, Oyo State, who were taken to court and remanded in prison custody, should be released if those of the Abuja and Anambra events would not be given similar treatment.

Inspector General of Police, Dr. Kayode Egbetokun, had also ordered an investigation into the Abuja and Anambra tragic charity outreaches.

Reacting to the arrest and detention of his church officials, the Catholic Archbishop of Abuja Diocese, Most Rev. Ignatius Kaigama, last night condemned what he described as “verbal demonization of the Catholic Church” by some agents of government in responding to the tragedy at “Holy Trinity Catholic Church in Maitama.”

According to Kaigama, the detention of the priest as well as some officials of the church and the threat to slam criminal charges on the church “is to say the least, uninspiring, unfriendly and a misplaced zeal, and one wonders what purpose these were meant to serve.”

Archbishop Kaigama, who made his mind known in his Message titled, “Christmas: A Season of Hope and Renewal,” said that government officials should have focused on helping the organisers and the church to overcome their trauma instead of compounding it through arrest, detention, and threat of criminal prosecution.

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Thousands Flock To Lagos For Africa’s Biggest Shopping, Entertainment Event [PHOTOS]

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Thousands of excited Nigerians attended the opening day of the much-anticipated maiden edition of the Lagos Shopping Festival (LSF) on Monday, December 23 and were served up an electrifying feast of events, activities and promotions across the the main venue of the festival, the iconic Mobolaji Johnson Arena, (formerly Onikan Stadium).

As advertised, first day of the festival lived up to its billing with a colourful blend of commerce, music, innovation and creativity following its flag off by the Executive Governor of Lagos State, Babajide Olusola Sanwo-Olu.

The Lagos Shopping Festival, powered by the Lagos State Government in collaboration with Chain Reactions Africa, a frontline PR firm, and supported by leading brands, including Zenith Bank, Tolaram Group, First Bank Plc, and Guinness, will see millions of people hit the main venue and select Lagos malls to bag the latest bargains, and bring together the best of city’s retail offering, showcasing local and top global brands and shopping experiences, including in-mall promotions.

Speaking at the event, Governor Sanwo-Olu described the LSF as a history-making festival of back-to-back shopping, fun, and entertainment, reaffirming the Lagos state’s commitment to grow small businesses as well as the entertainment industry.

“This is the first of its kind and this event is made to bring shoppers with MSMEs, with innovators, with entertainers, with the creative industry, with the food industry and everybody,” said Sanwo-Olu.

“For the next three days, we are meant to all come together, enjoy good food, good music, sales at discounted market price, shopping at the highest level and just general entertainment with the creativity of Lagos,” the Governor added.

He called on all Lagosians and Nigerian to join the fun, shopping and entertainment.

“Call everybody from Iyana-Ipaja to Alimosho, call people from Agege, call them from Ebute-Meta to Shomolu, call them from Bariga, from Badagry to Ikorodu, from Epe to Ibeju-Lekki, call everyone to come to the arena here at the Mobolaji Johson Center in Onikan where we’ll be doing shopping, we’ll be doing music, we’ll be doing entertainment for the next two days. This is the first of its kind”, Sanwo-Olu added.

He assured all fun-seekers, buyers and sellers of their safety, saying that they are in a safe, secure, peaceful environment, urging them to “to sit back, relax and see another Lagos creativity that is the first, and the very first Lagos Shopping Festival”.

Governor Sanwo-Olu expressed his appreciation to the sponsors of the Lagos Shopping Festival for their unwavering support to drive the story of Lagos commerce, entertainment and creativity.

“I want to thank all of our sponsors from FirstBank, to Zenith Bank, to Tolaram, to Smirnoff Ice, to Indomie Noodles, to OmniBiz, to PowerOil, to Minimie, and to Malta Guinness, all of them, including the Lagos State Government. I want to thank you”.

He also commended all the local and small businesses at the festival, and urged Lagosians and Nigerians to always patronize them.

“More importantly, to all the small businesses that are inside and under the canopies, go out there and make good deals. Go out there and do huge purchases from them. Go out there and make their small-scale market, work for them; because here, we want the market to be meeting all of the shoppers. That’s what this is all about. It’s about buying stuff at the most reduced market. It’s about entertainment, it’s about food, it’s about tourism. This is what Lagos has given to you again,” Sanwo-Olu said.

Also, commenting, the MD/ Chief Strategist, Chain Reactions Africa, the organisers of the Lagos Shopping Festival, Mr Israel Jaiye Opayemi, buttressed the strategic significance of the festival saying, “LSF is poised to be the catalyst that will redefine the true essence of commerce, especially SME businesses, the creative ecosystem, and fun times with family, friends and loved one. LSF is sure set to open a new vista of socio-economic growth from Lagos, to Nigeria, whilst raising a unique bar in the African market”.

Fun-seekers and business men and women alike had entertainment value for their time, with dancing and singing competition with the winners adjudged by the audience receiving cash gifts. The highlight of the day was the energy-revving musical performances from the youthful Ayo Maff, with the soulful rendition of songs from Adekunle Gold the icing on the cake for the audience who kept singing along to his enchanting stage performances.

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BIG STORY

JUST IN: Oriyomi Hamzat, Queen Naomi, School Principal Remanded In Agodi Prison Over Ibadan Stampede

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The Chief Magistrate Court sitting in Iyaganku, Ibadan, Oyo State has ordered the remand of Prophetess Naomi Silekunola, Alhaji Oriyomi Hamzat, and Mr. Abdullahi Fasasi at Agodi Correctional Center following their roles in the Ibadan Children Funfair stampede last week.

Amid heavy security, the three individuals, including the principal of Islamic High School, Bashorun Ibadan, Mr. Fasasi; the proprietor of Agidigbo FM, Alhaji Hamzat; and the estranged wife of the Ooni of Ile Ife, Oba Enitan Adeyeye Ogunwusi, Naomi Silekunola, were on Tuesday arraigned before the court over the incident.

The trio were arrested in connection with the Wednesday, December 18, 2024, stampede that occurred at Islamic High School, Ibadan, resulting in the death of 35 minors, while others sustained injuries.

Chief Magistrate Olabisi Ogunkanmi gave the order following the arraignment of the suspects in court on Tuesday.

The Police prosecutor accused the defendants of committing an offense contrary to Section 324 of the Criminal Code, Cap. 38, Vol. II, Laws of Oyo State of Nigeria, 2000 in a four-count charge for which they were arraigned.

The court premises was filled with relatives of the defendants and other interested parties.

 

More to come…

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