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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

Former Senate Spokesperson Ayogu Eze Dies At 66

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Ayogu Eze, a former spokesperson for the Senate, passed away at the age of 66.

Eze, the senator from Enugu North Senatorial District from 2007 to 2015, died on Thursday in a hospital in Abuja following an undisclosed illness.

In May 2023, the Senate confirmed Eze as a federal Commissioner for Revenue Mobilisation Allocation and Fiscal Commission. Eze is also among the founding members of the Peoples Democratic Party.

In his years at the Senate, he also served as the chairman of the Senate Committee of Works and a member of committees on Constitutional Amendment, Police Affairs, National Planning, Marine Transport and Federal Character & Inter-Government Affairs.

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Lagos Workers Now Earn N70,000 As Minimum Wage Since January — Sanwo-Olu

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The executive Governor of Lagos State, Babajide Sanwo-Olu, has disclosed that workers have been enjoying an additional N35,000 wage allowance since January.

He also disclosed that a new minimum wage programme will shortly be implemented by the state administration.

According to the governor, since the start of the year, people who were previously making the minimum wage of N35,000 or more now receive salaries of N70,000 or more.

“The civil servant and all public officers in Lagos know that since January, we have continued to pay the wage allowance of a minimum of N35,000 over and above what they were earning before.

“What this means is that people that are earning a minimum of N35,000 or more before are now earning over N70,00. That is what they have been enjoying since January.

“So it is important for people to know that we make these things very clear that this government has doubled up to ensure that at this difficult time, it has not left the citizens on their own,” Sanwo-Olu said at a state function on Thursday.

The governor while giving an update on the intervention the state embarked on to ameliorate the current economic hardship,  said his administration will distribute food items to 500,000 households in the state through unions and local governments.

Speaking on the ‘Ounje Eko’ initiative, where food items are sold at discounted prices, the governor said, “We created 59 makeshift markets outside of the regular markets out of our 57 local government and local council development areas and made it Sunday-Sunday market.”

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How Binance Executive Tigran Gambaryan Planned Prison Escape, Applied For New US Passport

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Tigran Gambaryan, the detained Binance Holdings Limited executive, has made attempt to escape from Kuje Correctional Facility.

According to The Punch, Mr Gambaryan who is currently remanded in Kuje Correctional Facility, applied for a new United States of America passport, under the pretence that his seized passport was missing.

EFCC sources, on Wednesday, under anonymity said that the Armenian-born Binance executive, Gambaryan who has both American and Armenian passports, told the US Embassy in Abuja that he lost his passport which is currently being held by the anti-graft Agency.

Following the development, the EFCC has urged the Federal High Court sitting in Abuja to disregard Gambaryan’s bail application, while noting that the Armenian-American could flee from Nigeria like his Kenyan-British colleague, Nadeem Anjarwalla who fled to Kenya.

A source, privy to the investigations, revealed that “The second Binance executive, Tigran Gambaryan, who is currently remanded in Kuje prison, has planned to escape from the facility. He applied to the US embassy in Abuja to issue him a new Visa while lying that he lost his passport which was seized by the EFCC.”

Another source, under anonymity, added that “Gambaryan could have escaped from Kuje if not for the fact that the US embassy flagged his request for a new passport. Fortunately, the US embassy immediately reached out to the EFFC, and the embassy was informed that he’s a criminal suspect whose case is currently in court for alleged money laundering – concealing the source of the $35,400, 000 generated as revenue by Binance in Nigeria knowing that the funds constituted proceeds of unlawful activity.”

Meanwhile, the EFCC had on Tuesday, urged Justice Emeka Nwite of the Federal High Court Abuja to deny Gambaryan’s bail application.

The anti-graft agency said it was too risky to admit the foreigner to bail, noting the escape of his co-defendant, Nadeem Anjarwalla, from the custody of the National Security Adviser and his escape to Kenya.

Besides, the prosecuting counsel for the EFCC, Ekele Iheanacho, told the court that the anti-graft agency uncovered an alleged plot by Gambaryan to obtain a new passport to facilitate his escape from Nigeria after the EFCC had seized his passport.

Gambaryan, his fleeing colleague, Anjarwalla, and Binance Holdings Limited are being prosecuted by the EFCC on money laundering charges.

The anti-graft agency accused them of concealing the source of the $35,400, 000 generated as revenue by Binance in Nigeria knowing that the funds constituted proceeds of unlawful activity.

Opposing Gambaryan’s bail application on Tuesday, the EFCC prosecutor said, “There was an attempt by this defendant to procure another travelling document even when he was aware that his passport was in the custody of the state. He pretended as if the said passport was stolen.”

Iheanacho told the court that within the same period that Anjarwalla fled the custody, Gambaryan also allegedly made moves to escape from custody and flee the country but was intercepted by the operatives of the commission.

“This court will be taking a grave risk to grant the defendant bail. This is also because he has no attachment to any community in Nigeria.

“The experience we have had with the man who escaped to Kenya while his United Kingdom passport is in Nigeria will certainly repeat itself if this defendant is granted bail.

“The 1st defendant (Binance) is operating virtually. The only thing we have to hold on to is this defendant. So, we pray My Lord to refuse bail to the defendant.”

Iheanacho said with the intelligence information at the EFCC’s disposal it was not safe to release the foreigner on bail.

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