Author: Okechukwu Nnodim

Dangote Petroleum Refinery is expanding its crude oil sourcing by importing a cargo of Brazilian crude, as reported by Bloomberg. This move comes amidst concerns over low crude oil output in Nigeria, affecting local refiners like Dangote refinery and modular refineries. Despite efforts by the government to increase oil production, the situation remains challenging. The Nigerian firm is set to receive one million barrels of Tupi crude from Brazil, in addition to previous purchases of American crude. The competitive pricing and suitability of these non-Nigerian barrels are key factors in Dangote refinery’s procurement strategy. This latest deal with Petrobras marks…

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The Federal Government has kickstarted a program offering free conversion of petrol and diesel-powered commercial vehicles to compressed natural gas (CNG) as a means to decrease transportation costs nationwide. The initiative, which began in Abuja and Lagos, aims to cut transportation expenses by over 40% by encouraging commercial transport owners to bring their vehicles for conversion. Officials from the Federal Ministry of Information and National Orientation, in collaboration with the Presidential Compressed Natural Gas Initiative, supervised the launch of the program. The government had previously announced that the conversion would be free, following agreements with companies specialized in CNG vehicle…

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Revolutionizing Nigeria’s Power Sector: USAID and Federal Ministry of Power Sign MOU The United States Agency for International Development (USAID) and the Federal Ministry of Power have joined forces to enhance electricity sector reforms in Nigeria. A memorandum of understanding (MOU) was signed to prioritize market transparency, liquidity, and increased access to affordable power in the country. Despite challenges, over 85 million Nigerians lack grid power access, leading to reliance on costly generators. The collaboration aims to address these issues to bolster industrial growth, economic competitiveness, and overall national development. USAID’s commitment to advancing electrification in Nigeria was reiterated during…

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The President of the Trade Union Congress, Festus Osifo, maintains that the ideal minimum wage for workers in Nigeria should be N250,000. Despite ongoing negotiations with the Federal Government, the Organised Labour is firm on this benchmark. The theme of the discussion, held at the Petroleum and Natural Gas Senior Staff Association of Nigeria Women Commission maiden Annual Convention in Abuja, was ‘The Dynamic Woman: Navigating Challenges in a Constantly Evolving World.’ While the government and private sector have settled on N62,000 as the new minimum wage, the Organised Labour remains steadfast in its demand for N250,000. The process of…

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Concerns are rising over the lack of domestic crude oil supply to the Dangote Petroleum Refinery and other local refiners, prompting the Independent Petroleum Producers Group to urge President Bola Tinubu to declare a state of emergency on crude oil production in Nigeria. The IPPG, which represents indigenous upstream exploration companies, highlighted the challenges facing the sector and the potential impact on the 2024 budget. At a recent oil and gas conference in Abuja, industry leaders emphasized the need for increased investments in the sector to boost oil output. They also underscored the importance of addressing the decline in Nigeria’s…

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Unlocking Investments in Nigeria’s Oil Sector: The Role of Indigenous Investors Operators in Nigeria’s oil and gas sector are voicing concerns about the impact of insufficient crude oil supply to local refineries, hindering Foreign Direct Investments (FDIs). Indigenous investors have played a significant role in recent sector advancements, with local players developing the current functional refineries. However, to attract more FDIs and enhance mid and downstream operations, government support is crucial. The Crude Oil Refinery Owners Association of Nigeria, Petroleum Products Retail Outlets Owners Association of Nigeria, and Independent Petroleum Marketers Association of Nigeria emphasized the need for improved crude…

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NNPC’s OB3 Gas Pipeline Project Set for August Completion Exciting news as the Nigerian National Petroleum Company Limited announces the completion date for the $700m OB3 gas pipeline project has been moved up to August, earlier than the initially projected March 2024 deadline. The project, which began in 2016, aims to link the Eastern gas pipeline network to the West and North of the country, facilitating the transmission of two billion standard cubic feet of gas per day. Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, lauded the project at the 7th Nigeria International Energy Summit as a significant…

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The Impact of Declining Oil Production on Nigeria’s Economy Since January 2024, Nigeria has experienced a significant decrease in monthly oil production, resulting in a revenue loss of approximately N636.3bn. Data shows that crude oil production dropped from 1.43 million barrels per day in January to 1.25mbpd in May, leading to a total volume decrease of 5.43 million barrels during this period. With the cost of Brent crude increasing slightly from $80.12/barrel in January to $81.75 in May, combined with a depreciating naira against the US dollar, Nigeria’s estimated revenue loss has been substantial. The ongoing decline in oil production…

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The Federal Government Perfecting Process for Electricity Offences Tribunal The Federal Government is taking proactive steps to establish an electricity offences tribunal with an appeal system to address power-related crimes swiftly. Over 2.6 million meters in the power sector have been tested and calibrated for consumer use nationwide. A recent report revealed that out of 13.1 million registered consumers connected to the national grid, only 5.8 million have been metered. The Managing Director of the Nigerian Electricity Management Services Agency (NEMSA), Aliyu Tahir, stated that the agency has been diligently testing and calibrating meters to ensure functionality, durability, and safety.…

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The African Export-Import Bank has announced an additional disbursement of $925m under a $3.3bn crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company Limited. This brings the total current funded facility size to $3.175bn. The disbursement was coordinated by Afreximbank from a consortium of crude oil off-taker lenders including the Oando Group and Sahara Energy Resource Limited. President and Chairman of Afreximbank, Prof. Benedict Oramah, expressed satisfaction with the progress of the facility, emphasizing the bank’s commitment to supporting Africa’s economic growth. NNPC Limited CEO, Mele Kyari, praised Afreximbank’s investment philosophy and commitment to funding strategic projects. The…

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