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8 — Vanguard, MONDAY, NOVEMBER 14, 2022<br />
:Vanguard News<br />
:@vanguardnews :@vanguardnews NEWS HOTLINES: 08052867023, 08052867058<br />
•President Muhammadu Buhari on arrival in Abuja, yesterday, after a two-week medical trip to<br />
London, the United Kingdom.<br />
2023 budget threatened, as Nigeria’s crude<br />
oil output drops 7.4% to 1.37 mb/d<br />
By Udeme Akpan,<br />
Energy Editor<br />
NIGERIA’S DWINDLING<br />
average oil output,<br />
including condensate, dropped<br />
Year-on-Year, YoY, by 7.4 per cent<br />
to 1.37 million barrels per day, mb/<br />
d in the first 10 months (January<br />
– October) 2022, from 1.48 mb/d<br />
in the corresponding period of<br />
2021.<br />
This showed a shortfall of<br />
317,940 barrels when juxtaposed<br />
against the 1.69 mb/d which the<br />
2023 budget was based on at $70<br />
per barrel.<br />
However, on Month-on-<br />
Month, MoM, the average oil<br />
output increased by 7.8 per cent<br />
to 1.23 mb/d in October 2022,<br />
from 1.14 mb/d, recorded in the<br />
preceding month of September<br />
2022.<br />
Oil theft, others<br />
The Nigerian Upstream<br />
Petroleum Regulatory<br />
Commission, NUPRC, which<br />
disclosed this in its monthly Oil<br />
Production Status Reports,<br />
obtained by Vanguard, weekend,<br />
did not specify the cause of the<br />
trend.<br />
But checks by Vanguard,<br />
yesterday, attributed it to<br />
prolonged pipeline vandalism, oil<br />
theft, and illegal refining in the<br />
Niger Delta.<br />
It indicated that pipeline<br />
vandalism, oil theft and illegal<br />
refining would still continue next<br />
year, despite the efforts of<br />
stakeholders, especially the<br />
government and oil companies,<br />
to tackle them.<br />
Case of Shell<br />
In its briefing notes obtained<br />
by Vanguard, Shell, the biggest<br />
International Oil Company, IoC,<br />
in Nigeria, stated: “Shell<br />
companies in Nigeria have a<br />
track record of strong production.<br />
But in 2021, the combined<br />
production from the SPDC JV and<br />
SNEPCo (Bonga) fell to 493,000<br />
barrels of oil equivalent per day<br />
from 614,000 in 2020.<br />
“The SPDC JV produced<br />
383,000 barrels of oil equivalent<br />
in 2021, compared with 497,000<br />
barrels of oil equivalent in 2020.<br />
The fall in output was largely as<br />
a result of curtailed oil production<br />
because of heightened security<br />
issues, such as crude oil theft and<br />
illegal oil refining.<br />
''Production numbers were also<br />
down as a result of divestment<br />
action, including the sale of<br />
SPDC’s 30% interest in OML 17<br />
for $533 million.<br />
“In the last quarter of 2021,<br />
crude oil theft from pipelines<br />
across the region increased<br />
ostensibly as a result of rising oil<br />
prices, which made the activity<br />
more profitable. Security risks<br />
have heightened and production<br />
in some areas has been put on<br />
hold.<br />
''The situation is impacting<br />
operators across the Niger Delta.<br />
The Nigerian National<br />
Petroleum Corporation, NNPC,<br />
has reported that crude thefts in<br />
2021 reached 200,000 barrels per<br />
day – a quarter of onshore<br />
production.”<br />
Oil market<br />
The checks also showed that<br />
although the Organisation of<br />
Petroleum Exporting Countries,<br />
OPEC, interventions would<br />
make a positive impact, the global<br />
oil market would continue to<br />
record instability in 2023 and<br />
beyond, thereby impacting<br />
negatively the economy of<br />
nations, including Nigeria.<br />
By Obas Esiedesa<br />
ABUJA—OIL marketers have<br />
urged the Nigerian Maritime<br />
Administration and Safety<br />
Agency, NIMASA, and the<br />
Nigerian Ports Authority, NPA,<br />
to comply with the Federal<br />
Government's directive to end<br />
payment of port charges in dollars<br />
for petroleum products brought<br />
into the country.<br />
The Second Vice Chairman,<br />
Depots and Petroleum Products<br />
Marketers Association of Nigeria,<br />
DAPPMAN, Mammod Tukur, in<br />
a statement yesterday said the<br />
directive given by the<br />
government a year ago had not<br />
been followed by NIMASA and<br />
NPA.<br />
Recall that following a meeting<br />
of the heads of the Nigerian<br />
Midstream and Downstream<br />
Petroleum Regulatory Agency,<br />
NMDPRA, NNPC Limited,<br />
Major Oil Marketers Association<br />
of Nigeria, MOMAN and<br />
DAPPMAN, in November 2021,<br />
the government had directed<br />
that ports charges should be<br />
collected in naira.<br />
The marketers, however,<br />
revealed that both NIMASA and<br />
NPA had continued to collect the<br />
charges in dollars.<br />
Tukur explained: “Some years<br />
ago, the Vice President chaired a<br />
meeting which included the<br />
Chief of Staff, talking about the<br />
fact that marketers having to pay<br />
port charges to NPA and to<br />
NIMASA in dollars was no longer<br />
acceptable because it was<br />
affecting the sector.<br />
In its October 2022 Monthly<br />
Oil Market Report, MOMR,<br />
obtained by Vanguard, OPEC<br />
painted a picture of an uncertain<br />
oil market when it stated: “For<br />
2023, world oil demand growth is<br />
revised down to stand at about<br />
2.3 mb/d.<br />
“Uncertainty about the<br />
geopolitical situation remains<br />
high, and there is potential for<br />
further US shale liquid<br />
production.”<br />
Experts<br />
However, commenting on the<br />
development, the National<br />
President of Oil and Gas Service<br />
providers Association of Nigeria,<br />
OGSPAN, Colman Obasi, said:<br />
“The government and other<br />
stakeholders have not done<br />
enough to address the various<br />
issues currently affecting the<br />
nation’s oil production.<br />
''A lot can still be done,<br />
including the use of modern<br />
technologies, to monitor the<br />
nation’s oil and gas assets in the<br />
Niger Delta.”<br />
Obasi, who attributed the vices<br />
partly to massive unemployment<br />
and desperation on the part of<br />
the youth to make a living, said:<br />
“If concerted efforts were made<br />
to industrialise Niger Delta,<br />
there would probably be no crude<br />
oil theft and devastation of the<br />
region. Oil theft has been with<br />
us for decades and seems to be<br />
gaining momentum.”<br />
Similarly, Executive Director,<br />
Emmanuel Egbogah<br />
Foundation, Prof. Wunmi Iledare,<br />
said: “It seems the price of crude<br />
is demand determined. The<br />
likelihood to attain and sustain<br />
that output in 2023 is less likely.<br />
At best, that output may even<br />
be the potential because of<br />
insecurity, divestment, and<br />
onshore basin maturity.”<br />
Oil marketers seek end to dollar denominated<br />
port charges<br />
“A directive was given that<br />
these agencies should<br />
henceforth charge marketers in<br />
naira. That has not been<br />
implemented. That's a major<br />
challenge.<br />
“The price of dollars is practically<br />
driven by demand. If there's no<br />
supply, then obviously the price<br />
will rise. So in this instance, every<br />
time a vessel needs to berth, we<br />
have to pay port charges in<br />
dollars.”<br />
He pointed out the failure to<br />
comply with the director was one<br />
of the reasons the Naira<br />
continued to depreciate against<br />
the dollar, since the foreign<br />
currency was in short supply.<br />
“If these products are<br />
consumed locally and are<br />
destined for local ports, then why<br />
are the NPA and NIMASA<br />
charging in dollars?<br />
''They should simply<br />
implement a directive given by<br />
the government and we can<br />
assure that this will also bring<br />
down the price of petroleum<br />
products,'' he said.<br />
On her part, the Chairman,<br />
DAPPMAN, Winifred Akpani,<br />
explained how the foreign<br />
exchange conundrum was<br />
affecting petroleum marketers.<br />
She said: “For example, to<br />
charter a vessel to convey 20,000<br />
metric tonnes of PMS within<br />
Nigeria for 10 days, freight<br />
charges are denominated in<br />
dollars, that comes to about<br />
N220m at official forex rate of<br />
N440 and a whooping N440m<br />
for petroleum marketers who<br />
have to source forex from the<br />
parallel market at N880.<br />
“This implies an additional cost<br />
of N11 per litre for this transaction<br />
due to the forex official/parallel<br />
market differential. For this same<br />
transaction, Jetty fees, again<br />
charged in dollars, comes to<br />
N15.4m at official forex rates and<br />
N30.8m for petroleum marketers<br />
who source from the parallel<br />
market.<br />
“In the same vein, Jetty berth<br />
is charged in dollars and comes<br />
to N2.2m at official forex rate and<br />
N4.4m at parallel market rate.<br />
Then there are port dues (NPA<br />
and NIMASA), which are<br />
charged in dollars, which come<br />
to N71.51m at official forex rate<br />
and N142.796m for marketers<br />
who source forex from the<br />
parallel market.''<br />
Akpani described this as quite<br />
burdensome and had made<br />
operational expenses and<br />
procurement increasingly difficult<br />
for DAPPMAN members.<br />
ABUJA—THE<br />
Nigeria<br />
Railway Corporation, NRC,<br />
has denied the rumour in some<br />
media outlets and social media<br />
platforms which said the Abuja-<br />
Kaduna rail service will resume on<br />
November 24.<br />
The Managing Director of NRC,<br />
Fidet Okhiria, told the News<br />
Agency of Nigeria, NAN, that the<br />
news is false and should be<br />
disregarded.<br />
According to him, no definite date<br />
has been fixed for the resumption<br />
Currency redesign:<br />
We'll protect Nigerians without<br />
bank accounts —CBN<br />
By Emma Ujah,<br />
Abuja Bureau<br />
Chief<br />
THE CENTRAL Bank of<br />
Nigeria , CBN, has promised<br />
to protect Nigerians without bank<br />
accounts, to ensure they don't suffer<br />
any loss in the proposed Naira<br />
redesign exercise.<br />
According to the apex bank, it<br />
will protect Nigerians in unbanked,<br />
underserved, and rural areas.<br />
In the past, unbanked, rural<br />
dwellers suffered significant losses<br />
as some were unable to change<br />
their old bank notes or were<br />
defrauded during similar exercises.<br />
The CBN Director of Corporate<br />
Communications, Mr. Osita<br />
Nwanisobi, said in a statement,<br />
yesterday; "CBN is pleased to note<br />
the positive response of the banking<br />
public to the policy<br />
through increased currency<br />
deposits across banks and other<br />
financial institutions.<br />
"The CBN remains committed to<br />
the seamless implementation of the<br />
initiative to ensure the achievement<br />
of its objectives to preserve the<br />
integrity of the local legal tender by<br />
reducing the significant amount of<br />
cash outside the banking system<br />
and its use in criminal activities,<br />
curtail counterfeiting, and promote<br />
financial inclusion, amongst<br />
others.<br />
"Whilst noting the progressive<br />
increase in financial access points<br />
and alternative banking channels<br />
AS POLITICAL parties and their<br />
respective presidential<br />
candidates campaign for the 2023<br />
general election, ‘The Candidates’<br />
presidential town hall series, a Daria<br />
Media concept, supported by<br />
MacArthur Foundation, NTA and<br />
YouTube will kick off on November<br />
17, 2022.<br />
It will aired live on NTA, FRCN,<br />
Radio Now, DSTV, Youtube,<br />
Facebook and more.<br />
The 'Candidates', is a two-hour<br />
live televised town hall meeting<br />
series, of the presidential and vicepresidential<br />
candidates of the six<br />
leading political parties jostling for<br />
the 2023 general elections.<br />
The parties were selected using<br />
a combination of editorial<br />
judgment, aggregated polls by the<br />
Centre for Democracy and<br />
Development, CDD, occupation<br />
of elective offices and presence<br />
across the country.<br />
Kole Shettima, Africa Director<br />
of the MacArthur Foundation, on<br />
the series, said: “The foundation is<br />
privileged to support an opportunity<br />
for Nigerians to interact with the<br />
leading presidential candidates in<br />
the 2023 general elections.”<br />
‘The Candidates’ presidential<br />
town hall will feature Prince<br />
Adewole Adebayo and running<br />
mate, Alh. Yusuf Buhari, of the<br />
Social Democratic Party, November<br />
17, 2022; Mr. Omoyele Sowore and<br />
running mate, Haruna Magashi,<br />
of the African Action Congress<br />
Abuja-Kaduna rail service: NRC denies rumoured<br />
resumption date<br />
but the Federal Government is<br />
making every necessary effort to<br />
ensure it resumes before end of<br />
November.<br />
”I wish to inform the general<br />
public that the news is false because<br />
a definite date has not yet been<br />
fixed.<br />
It is true that the Minister<br />
announced that we will resume<br />
services on that route this<br />
November and efforts are being<br />
made by all necessary quarters to<br />
ensure we resume before the end<br />
of November.<br />
”I wish to reiterate the<br />
over the years (electronic/internet<br />
banking, mobile apps, ATM, Cards/<br />
PoS, eNaira,<br />
agent banking, etc.), the Bank<br />
acknowledges that these may not<br />
be evenly distributed across all<br />
geopolitical zones and in some rural<br />
areas.<br />
"In operationalizing this initiative,<br />
the CBN has been collaborating<br />
with relevant agencies and other<br />
stakeholders in the financial system<br />
in its execution, particularly<br />
ensuring that vulnerable citizens<br />
are not disenfranchised.<br />
"Accordingly, the banking public<br />
in rural and/or underserved areas<br />
may access CBN branches in the<br />
36 states of the federation to enquire<br />
about options for depositing their<br />
current N200,<br />
N500, and N1,000 notes, wallet/<br />
account opening processes and<br />
financial access points.<br />
"Furthermore, agent locations<br />
across the country have been fully<br />
enabled for BVN<br />
registration, opening banking<br />
accounts/wallets & e-Naira wallets,<br />
electronic card distribution,<br />
and cash deposit, among others.<br />
"Due to the policy, the agents<br />
have also been accorded priority<br />
to enable them to deposit cash<br />
collections through bank branches<br />
across the federation.<br />
"The bank shall continue to<br />
monitor developments and issue<br />
updates to the banking public on<br />
the implementation of the Naira<br />
redesign policy as may be<br />
necessary."<br />
‘The Candidate' presidential<br />
town hall series kick of Nov 17<br />
Party on November 18, 2022; Sen.<br />
Rabiu Kwankwaso and running<br />
mate, Bishop Isaac Idahosa, of the<br />
New Nigeria Peoples Party on<br />
November 19, 2022; Mr. Peter Obi<br />
and running mate, Dr. Yusuf Baba-<br />
Ahmed, of the Labour Party on<br />
November 21, 2022; Alh. Atiku<br />
Abubakar and running mate, Dr.<br />
Ifeanyi Okowa of the People’s<br />
Democratic Party on November 22,<br />
2022; and Asiwaju Bola Tinubu<br />
and running mate, Sen. Shettima<br />
Kashim of the All Progressives<br />
Congress Party on November 23,<br />
2022.<br />
“Kadaria Ahmed, a leading<br />
Nigerian broadcaster and journalist,<br />
will moderate each town hall. She<br />
has been moderating Presidential<br />
Debates and town halls since the<br />
2011 elections.<br />
‘The Candidates’ this year is<br />
produced by Obi Asika, Ceo Cabal<br />
Ent, who has produced several<br />
major live events, festivals, tv shows,<br />
reality formats and has been at the<br />
forefront of media production for<br />
decades. He and his team will seek<br />
to bring that quality to The<br />
Candidates.<br />
CEO of Cabal Entertainment<br />
and Executive Producer of The<br />
Candidates, Obi Asika, on the<br />
series, said: “I am hugely excited to<br />
be working with Kadaria Ahmed,<br />
one of Nigeria’s most distinguished<br />
journalists and broadcasters with a<br />
long and impressive track record in<br />
print, tv and radio.“<br />
commitment of the Federal<br />
Government and the corporation<br />
to securing the lives and properties<br />
of our highly esteemed passengers<br />
and Nigerians,” Okhiria said.<br />
NAN recalls that service along<br />
the Abuja-Kaduna rail corridor was<br />
halted due to a terrorist attack on<br />
March 28, which led to the loss of<br />
lives and kidnap of some<br />
passengers.<br />
The Minister of Transportation,<br />
Mu’azu Sambo, announced after<br />
the release of all the kidnapped<br />
passengers, that services along the<br />
corridor would resume in November.