A report from the National Bureau of Statistics (NBS) has shown that Nigeria recorded crude oil export worth N11.5 trillion in nine months, from January to September 2018.
 
The figure is a 48.01 per cent rise from N7.77 trillion recorded in similar period in 2017.
 
The figure is also over N2 trillion more than the N9.12 trillion budgeted for 2018 and about N3 trillion more than the 2019 budget proposal.
 
Data from the NBS Foreign Trade Statistics for the Third Quarter of 2018, showed that crude oil export in the nine-month period accounted for 81.8 per cent of total exports recorded in the Nigerian economy in 2018.
 
According to the report, crude oil export in the first quarter of 2018, appreciated by 51.05 per cent compared to N2.37 trillion recorded in the first quarter of 2017; while in the second quarter of 2018, crude oil export stood at N3.77 trillion, appreciating by 55.14 per cent from N2.43 trillion recorded in the same period of 2017.
 
The report also showed that third quarter 2018 crude oil export appreciated by 39.17 per cent from N2.97 trillion recorded in third quarter 2017 to N4.15 trillion.
 
“Crude oil exports in third quarter 2018 was 10.03 per cent more than the value recorded in second quarter 2018 and 39.5 per cent higher than the value recorded in third quarter 2017. Other oil products export in third quarter 2018 was 5.3 per cent more in value than second quarter 2018 and 12.68 per cent higher than third quarter 2017,” the NBS report noted.
 
Breaking down exports in the third quarter of 2018, the report stated that crude oil and Liquefied Natural Gas [LNG], export stood at N4.147 trillion, N469.87 billion respectively, other petroleum gases export stood at N27.85 billion.
 
Others are liquefied butane and liquefied propane export which stood at N17.66 billion and N13.73 billion respectively; kerosene type jet fuel export stood at N7.4 billion, while the lubricating oil export stood at N6.84 billion.
 
The report also named India as the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Nigeria’s crude oil export of N522.12 billion and N500.31 billion to Spain and France respectively.
 
Furthermore, the NBS disclosed that crude oil from Nigeria was exported to South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively.
 
United States and Canada bought Nigeria’s crude oil worth N201.65 billion and N199.01 billion respectively in the third quarter of 2018.
 
The report noted: “Nigeria’s external trade totalled N9.026 trillion during the third quarter of 2018. Compared to the value of N6.903 trillion recorded against the second quarter, a rise of N2.122 trillion or 30.7 per cent was indicated.
 
“The total export component of this trade was N4.854 trillion, representing an increase of 7.8 per cent over second quarter 2018 and 35.7 per cent over third quarter 2017.”
 
 
Source: The Routers
The Nigerian National Petroleum Corporation (NNPC), says it is working to crash the price of cooking gas in the country.
 
It said this would be done through the implementation of effective commercial framework that would halt the export of propane and butane from the country.
 
The Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, Mallam Mele Kyari, disclosed this in a statement issued by the corporation, in Abuja, on Thursday.
 
He said that Propane and butane were major components in the production of Liquefied Petroleum Gas (LPG), also known as cooking gas.
 
He said that the move to stop the export of propane and butane which was anchored by the Crude Oil Marketing Division of the Corporation would enable the Corporation boost supply of LPG to the domestic market.
 
This, he said would lead to a natural downward slide in the price of the product in the country.
 
“Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework.
 
“What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption,” he said.
 
 
Source: PmNews
A report by the Secretary General of the United Nations on the activities of the United Nations Office for West Africa and the Sahel, UNIWAS, has said that Nigeria lost an estimated $2.8 billion in revenue due to oil related crimes in 2018.
 
The report, which was released in New York on Monday, covered from July 1, 2018 to Dec. 31, 2018.
 
The report said: “Maritime crime and piracy off the coast of West Africa continued to pose a threat to peace, security and development in the region.
 
“Oil-related crimes resulted in the loss of nearly 2.8 billion dollars in revenues last year in Nigeria, according to government figures.
 
“Between January 1 and November 23, there were 82 reported incidents of maritime crime and piracy in the Gulf of Guinea.’’
 
It also noted, that compared to what obtained in the previous report, there was an increase in drug trafficking throughout West Africa and the Sahel.
 
“In Benin, the Gambia and Nigeria, more than 50 kilogrammes of cocaine were seized between July and October by joint airport interdiction task forces.
 
“During the same period, joint airport interdiction task forces seized more than six kilogrammes of methamphetamines, eight kilogramme of heroin (double the amount in the first half of 2018) and 2.6 tonnes of cannabis.
 
“Drug production across the region was also reportedly on the rise, with more than 100 kilogrammes of ephedrine and phenacetin seized by competent authorities,’’ the report said.
 
The UN report further revealed that the during it covered, conflicts between farmers and herders resulted in loss of lives, destruction of livelihoods and property, population displacements and human rights violations and abuses.
 
It also added that outbreaks of violence were recorded in many states across Nigeria, although with more frequency in the Middle Belt region, as well as Adamawa and Taraba, adding that the rise in conflict between farmers and herders was closely linked with demographic pressures, desertification and the attendant loss of grazing reserves and transhumance routes, which had been exacerbated by climate change.
 
The report further identified others to include challenges in the implementation of effective land management and climate change adaptation policies, and limited enforcement of existing pastoral laws.
 
Political and economic interests, the erosion of traditional conflict resolution mechanisms, and weapons proliferation, were also listed as some of the other factors attributed to the increased cases of herders-farmers conflict.
 
 
Source: The Ripples
Nigeria literally threw N197 billion into the flames in the first nine months of 2018, representing the value of gas flared during the period.
 
According to data from the Nigeria National Petroleum Corporation (NNPC) oil and gas companies operating in the country flared a total of 215.9 billion standard cubic feet of natural gas in the first nine months of 2018.
 
According to the data, 31.68 billion scf of gas was flared in January, 27.25 billion scf in February, 26.88 billion scf in March and 23.06 billion scf in April.
 
The oil and gas companies, which included international and indigenous operators, also wasted 21.20 billion scf of gas in May, 21.66 billion scf in June, 21.21 billion scf in July, 22.42 billion scf in August, and 20.54 billion scf in September.
 
With the price of natural gas put at $2.97 per 1,000scf as of Friday, the 215.9 billion scf flared translates to an estimated loss of $641.22m or N196.82bn at the official exchange rate of N306.95/dollar.
 
The NNPC data further revealed that out of the 238.91 billion scf of gas supplied in September 2018, a total of 142.09 billion scf of gas was commercialised, comprising 30.36 billion scf and 111.73 billion scf for the domestic and export market respectively.
 
It said: “This translates to a total supply of 1,011.96 mmscfd of gas to the domestic market and 3,724.26 mmscfd of gas supplied to the export market for the month.
 
“This implies that 59.47 per cent of the average daily gas produced was commercialised while the balance of 40.53 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 8.60 per cent for the month under review i.e. 684.69mmscfd compared with average gas flare rate of 10.17 per cent i.e. 800.59mmscfd for the period September 2017 to September 2018.”
 
The NNPC further said that the total gas supply from September 2017 to September 2018 stood at 3.094 trillion scf, out of which 464.48 billion scf and 1.331 trillion scf were commercialised for the domestic and export market respectively.
 
“Out of the 1.011 billion scfd of gas supplied to the domestic market in September 2018, about 614.55mmscfd of gas, representing 60.73 per cent was supplied to gas-fired power plants while the balance of 397.41mmscfd or 39.27 per cent was supplied to other industries.
 
“Similarly, for the period of September 2017 to September 2018, an average of 1.185 billion scfd of gas was supplied to the domestic market, comprising of an average of 743.85mmscfd or (62.75 per cent) as gas supply to the power plants and 441.58mmscfd or (37.25 per cent) as gas supply to industries.”
 
It said about 3.370 billion scfd or 90.50 per cent of the export gas was sent to Nigerian LNG Limited in September, compared with an average of 3.043 billion scfd or 89.58 per cent for the period September 2017 to September 2018.
 
 
Source: The Ripples
Daily production of crude oil by Nigeria increased by 9 percent in 2018 to 2.09 million barrels compared to the 1.86 million barrels daily production in 2017.
 
This was disclosed by the Group Managing Director, Nigerian National Petroleum Corporation (NNPC) Maikanti Baru, adding that Nigeria maintained a line of consistent year-on-year improvement in its daily crude oil production.
 
Baru, according to a statement by the NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu on Tuesday, stated this in an end-of-year message to members of staff of the corporation, adding that the Nigerian Petroleum Development Company, Nigerian Gas Company, Petroleum Products Marketing Company, Duke Oil, NIDAS and Integrated Data Services Limited, were among the companies that boosted the corporation’s performance in 2018.
 
Baru however singled out NPDC, the corporation’s upstream company, as the major contributor to the industry’s success story in 2018.
 
Baru said he was enthusiastic on the 52 per cent daily crude oil production growth by the company when compared with its 2017 performance, explaining that the average crude production from NPDC’s operated assets alone grew from an average of 108,000 barrels of oil per day in 2017 to 165,000bod in 2018.
 
According to him, NPDC’s equity production share of 172,000bpd, representing about eight per cent of national daily production, was no less impressive, while the 200,000bpd addition which the Egina Floating Production Storage and Offloading vessel completed and sailed away to a location in August last year added to the nation’s daily production.
 
Baru revealed that the project achieved first oil at 11.20pm on December 29, 2018.
 
The NNPC GMD also informed staff members the corporation firm made a save of $1.7bn with the corporation’s Joint Venture partners over a five-year tenor repayment plan, adding that already the corporation had defrayed $1.5bn of thearrearss, promising that the NNPC would stick to the repayment agreement with the JV partners while transiting to self-funding IJV modes with the corporation’s partners.
 
 
Source: The Ripples
Nigeria’s 2019 Budget may face hiccups as the current crude oil prices in the international market has fallen below the Budget benchmark.
 
On Monday, crude oil price dropped from $66.00 to $57.00 per barrel in the international market, indicating $3.00 below the $60 benchmark of the 2019 budget.
 
The price of Brent fell by as much as 4 per cent, hitting a low of $57.20 a barrel, in its third straight day of decline, while West Texas Intermediate, the US benchmark, weakened as much as 4.1 per cent to $47.84, the lowest level since September 2017.
 
Similarly, the price of Organisation of Petroleum Exporting Countries, OPEC, basket of 15 crudes stood at $58.24 a barrel, compared with $59.07 the previous Friday, according to OPEC Secretariat calculations.
 
According to reports, the situation was not anticipated as stakeholders, who rose from the recent 5th OPEC and non-OPEC Ministerial Meeting, were optimistic that stability would be achieved in the global market.
 
OPEC stated in a statement after its meeting in Vienna: “Following deliberations on the immediate oil market prospects and in view of a growing imbalance between global oil supply and demand in 2019, hereby decided to adjust the overall production by 1.2 mb/d, effective as of January 2019 for an initial period of six months.
 
“The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 mb/d (2.5%), and 0.4 mb/d (2.0%), respectively.”
 
However, the current situation was said to have been fuelled by weaker oil demand amid over-supply from producing nations, currently not involved in OPEC and Non-OPEC accord.
 
 
Source: NAN
Mr Henry Ikem-Obih, Chief Operating Officer, Downstream, Nigerian National Petroleum Corporation (NNPC) says the Federal Government has paid the agreed N236 billion as first tranche of the outstanding subsidy claims to oil marketers.
Ikem-Obi, who disclosed this in an Interview with the News Agency of Nigeria (NAN) on Monday in Abuja, said that government, through the Central Bank, had directed banks to freeze interest on loans related to the scheme.
 
“Yes, I can confirm that the promissory note has been issued; in fact, they were ready on Wednesday. The marketers got emails inviting them to come and receive them on Monday.
 
“By the end of Tuesday, they were actually ready from the Debt Management Office (DMO). We had a meeting with the CBN Governor on Thursday and they were informed officially, the Director General of DMO was there that they should pick up the promissory note.
 
“Most of them were waiting for that meeting with the CBN governor, it went very well. one of the things that CBN governor has taken the initiative to do is to ask the banks to freeze the interest on any loan that are related to that scheme, the outstanding payment, from end of June 2017 to date.
 
“Those are some of the additional concessions that government has done,’’ he said.
 
According to him, all the promissory notes for this first tranche will mature by 2019.
 
“The CBN governor will give the Liquid assets status; so, it is as good as cash,’’ he added
 
Commenting on petrol scarcity, he said that at the moment, the country had in stock 2.7 billion litres of Premium Motor Spirit (PMS) that would last for 54 days and still importing.
 
He noted that in terms of supply, the NNPC was very robust and had never been this good in the least 10 years, at this time of the year.
 
“We are very good with distribution in terms of how much products is on land because 2.8 billion litres is what is between Lagos waters and land.
 
“Most Farm tanks cannot receive PMS at the moment; our vessels have to queue for days to be able to discharge to the storage.’’ He added
 
Also, petroleum products marketers had also confirmed receiving payment of N236 billion from the Federal Government for the first tranche of the outstanding fuel subsidy claims.
 
The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Mr Olufemi Adewole, said, however, that the oil marketers still needed clarifications as regards the payments made by the Federal Government.
 
“Yes, we collected promissory notes, but we need clarification. DAPPMAN chief executive officers are reviewing the total scenarios and would meet with the Senate Committee, which has been of so much help to iron out things.”
 
He further confirmed that the payment was made via promissory notes, adding that DAPPMAN was already reviewing the situation.
 
He confirmed that the petroleum marketers would be meeting with the Senate Committee on Downstream to address other pending issues.
 
 
Source: PmNews
Data from the US Energy Information Administration has shown that imports of crude oil by the United States from Nigeria has reached an all time low.
 
This is believed to be on account of the growing production of Shale oil in the US.
 
According to the data, the US slashed its import of Nigerian crude to 904,000 barrels and 1.74 million barrels in July and August respectively, down from 7.77 million barrels in June and a peak of 10.33 million barrels in February this year.
 
Similarly, total imports by the US of crude from Nigeria declined to 45.79 million barrels in the first half of this year from 55.78 million barrels in the same period last year.
 
Trade in Nigerian crude remained subdued on Thursday as a high volume of unsold cargoes kept buyers reluctant to step in, according to Reuters, while traders estimated that nearly a quarter of the December programme remained available.
 
Offers for Nigerian Qua Iboe and Bonny Light, two of the nation’s grades, hovered around $1.65 a barrel above dated Brent, down from $1.70 earlier last week.
 
It would recalled that the Director of the Department of Petroleum Resources, DPR, Mordecai Ladan, had last week lamented that Nigeria’s most valued crude oil customers have abandoned the country.
 
It was reported in September that the US Atlantic Coast imports of West African crude oil were expected to decline due to harsh arbitrage conditions made difficult by the large premium of ICE Brent futures over West Texas Intermediate, as well as strong premiums for WAF grades.
 
According to S&P Global Platts, Traders tracking these grades exported in the US expected WAF imports to the USAC to fall to virtually zero.
 
 
Source: The Ripples
Nigeria has lost its most valued crude oil buyers, even as its erstwhile gas customers are now competing with it, the Department of Petroleum Resources said on Monday.
 
The Director, DPR, Mr Mordecai Ladan, said the oil and gas industry seemed to be under a new threat, which he described as the renewed dislike and global war against fossil fuels and the quest for renewable and cleaner energy.
 
“Over the years, the threat against fossil fuels had always been on paper, but today, it is more real than ever, based on some clear evidence I like to draw our attention to,” he said at the 18th edition of the International HSE Biennial Conference on the Oil and Gas Industry in Nigeria.
 
He said three among the biggest technology companies, including Google and Apple, had made attempts at electric cars to replace petrol and diesel engines, with that of Tesla taking the world by surprise.
 
Ladan said, “Not only did the first two releases of Tesla outsell sales forecasts, they were actually oversubscribed, and the demand keeps rising while new models are being added. As we speak, some of the big international oil companies here seated are funding gigantic researches into alternative fuels, which include the use of cheap, common algae.
 
 
 
Source: PunchNg
Strengthening mechanism for increased internal revenue generation is critical to the expected increased revenue in the non-oil sector, Yue Man Lee, World Bank Senior Economist, has said.
 
Lee said this on Tuesday in a paper she presented at the ongoing 3-day National Council on Finance and Economic Development conference, holding in Kaduna.
 
The paper was entitled “Strengthening States Revenue Performance through Transparency and Open Government.’’
 
Lee observed that Nigeria’s revenues were very low due to contraction in oil revenues and the stagnancy in the non-oil revenues which she attributed to the absence of stable tax policy reforms and weak tax administration.
 
She said that with no improvement in revenue collection, total spending would decline; debt would increase while fiscal space would shrink.
 
The expert noted that the government could not deliver on its social and development agenda without it increasing total public spending.
 
According to her, the only mechanism to increase government expenditure in a sustainable way is to triple total revenue through mobilising non-oil revenue.
 
“However, Nigerian tax perception survey shows low tax compliance due to weak transparency and accountability.
 
“Corporate income tax is less than six per cent of registered taxpayers, personal income tax shrinks to two per cent, while compliance in the case of VAT varies between 15 and 40 per cent.
 
“This is worrisome because low tax compliance reduces states revenues and strengthening revenue and increasing expenditure efficiency needs to be underpinned by an increase in transparency and accountability.”
 
Lee, however, said that the Nigerian states could increase transparency and accountability to strengthen IGR through harmonisation of revenue collection and automation of tax payment.
 
“Kwara and Kaduna States are good example of states where such reforms were initiated with a significant increase in IGR,” she said.
 
Meanwhile, the Accountant-General of the Federation, Ahmed Idris, said that automated collection and management of non-oil revenue was critical to increasing its performance in revenue generation and sustenance.
 
 
(NAN)
 
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