SEPTEMBER 25, 2024

By Seun Adeuyi

Fresh queues have surfaced in the Federal Capital Territory (FCT), leaving motorists spending hours to buy Premium Motor Spirit (PMS), aka petrol.

This followed the closure of many filling stations operated by independent marketers.

Findings by Daily Trust on Tuesday evening, showed that many filling stations in Abuja did not open, while there were long queues at the few stations that dispensed the product, particularly those operated by the Nigerian National Petroleum Company Limited (NNPCL) and some major oil marketers.

Outlets such as the NNPC mega station on the Katampe axis of the Zuba-Kubwa Expressway, AP station along Aguiyi Ironsi Street in the city centre, and NIPCO filling station also along the Zuba-Kubwa expressway, among others, had massive queues.

Quoting sources, PUNCH reported that members of the Major Energies Marketers Association of Nigeria (MEMAN) had lifted over 50 million litres of PMS from the Dangote Refinery in the past week.

Speaking during a webinar on Tuesday, Huub Stokman, Chairman of MEMAN, confirmed that major marketers have started loading the product from the refinery.

However, Stokman did not reveal whether or not the marketers were buying directly from Dangote or from the product bought by the NNPCL.

“I can tell you that we have started loading PMS from Dangote refinery. Our members have lifted millions of litres from Dangote,” he said.

SEPTEMBER 25, 2024

By Abdullateef Aliyu

The federal government is targeting $1.5bn foreign direct investment (FDI) from tourism in the next four years.

The projected amount would be three times higher than the $5m realised in the last two years.

The Minister of Tourism, Lola Ade-John, disclosed this while speaking at the closing ceremony of the 20th Akwaaba Travel Market in Lagos.

She said the federal government was determined to unlock the untapped potential in the tourism sector, disclosing that the sector contributed 3.65% ($17.3 billion) to the country’s 2022 GDP, with vast untapped potential.

She said, “The sector employs 1.91 million people, aiming to multiply this in coming years.

“Domestic tourism saw 3 million trips in 2023, up 20% from 2022, with 200 million potential travellers.

“We welcomed 1.2 million international visitors in 2023, boosting foreign exchange.

“Our cultural landscape boasts 1,000+ annual festivals, 1,000+ attractions, two UNESCO World Heritage Sites, and diverse parks and reserves and over $500 million in foreign direct investment secured in two years, projected to triple by 2028.”

The minister said Nigeria’s young people are her greatest asset in tourism.

She added, “65% of domestic trips in 2023 were undertaken by travellers aged 18-35. Youth-led tourism startups have grown by 150% in the last three years.

“Social media engagement in travel content has surged 300% among Nigerian youth since 2021.

“80% of our tourism workforce is under 40, bringing innovation and digital savvy to the sector.

“These young Nigerians are not just travellers; they are storytellers, digital nomads, and entrepreneurs reshaping our tourism landscape.”

The 20th anniversary of the largest tourism show in West Africa attracted participants and exhibitors from different countries, showcasing the rich tourism potential in Africa.

At the closing ceremony, N5m was disbursed from Fatima Garbati Tourism Outreach to participants at the expo, including five tourism journalists.

SEPTEMBER 26, 2024

By Abdullateef Aliyu

The Lagos State Muslim Pilgrims Welfare Board has fixed N8.5m as initial deposit for the 2025 Hajj exercise.

The board called on intending pilgrims to the Kingdom of Saudi Arabia to obtain the Hajj form from its office.

The Board Secretary, Mr. Saheed Onipede. made this disclosure in a statement released by the Public Affairs Officer, Mr. Taofeek Lawal, on Wednesday.

According to Onipede, the cost of the Hajj form is N20,000.00 (Twenty Thousand Naira only) while intending pilgrims are to pay the sum of N8,500,000.00 as initial deposit, pending the official announcement of the actual fare for the 2025 Hajj by the National Hajj Commission of Nigeria (NAHCON).

Daily Trust reports that NAHCON is yet to fix the Hajj fare while states have started receiving deposit.

He said, “In consideration of the present economic situation of the Country, the Board has decided to make the payment flexible for intending pilgrims to pay the money in installment in order for them to actualise their dream of performing the spiritual obligation in a seamless manner”.

While urging them not to make payment into personal accounts, Onipede advised that interested Muslims should raise a ‘Bank Draft’ from any of the Commercial Banks in favour of ‘Lagos State Muslim Pilgrims Welfare Board’ and submit same to the Accounts department for collection of official receipt for the value of the sum paid.

Onipede gave assurances that should the actual Hajj fare finally announced by NAHCON falls below N8.5 million, the Board would refund them with the balance.

Quoting from the Holy Quran Chapter 22 vs 27, the Board Secretary stated that it is incumbent on every Muslim (male and female) who are mentally, physically and financially capable, to embark on the holy pilgrimage at least once in a lifetime.

He therefore prayed that Allah in His infinite mercy would provide every intending pilgrim the financial wherewithal to actualize their dream this year, even as he prayed for Allah’s intervention in the crushing economic situation presently being faced by Nigerians.

He assured every intending pilgrim of the State Government’s preparedness to always make the exercise comfortable for them through a well thought out activities and packages which include, accommodating them in a conducive hotel nearer to Haram both in Makkah and Madinah and Ziyarah (visitation) to historical sites in Makkah and Madinah.

SEPTEMBER 27, 2024

By Gift Habib

The Economic Community of West African States Commission has announced plans to invest $380m in electrifying public schools and health centres across 18 countries, including Nigeria, Benin, Chad, and other nations in West Africa and the Sahel region.

The project aims to address the chronic lack of electricity access, which affects over 208 million people in the region, particularly in rural communities.

At a stakeholder forum in Abuja on Thursday, the Senior Adviser on the Regional Off-Grid Electricity Access Project at the ECOWAS Commission, El hadji Sylla, outlined the goals of the initiative, which the World Bank, the Clean Technology Fund, and the Dutch government fund.

Sylla explained that the project aims to increase electricity access in rural areas by focusing on off-grid solutions for essential public services.

“The cost of the project is $380m, and we want to promote a new innovative chain to electrify public institutions. Our target is to electrify schools and health centres to improve service delivery.

“We are piloting the project in Nigeria and the Benin Republic. The project covers 15 countries in the ECOWAS region and four countries in the Sahel region,” Sylla said.

“We are targeting schools and health centres to improve service delivery,” Sylla said, adding that the project is expected to be completed in five years across all participating countries, with the pilot phase in Nigeria and Benin to be executed within 18 months.

In Nigeria, the initiative will begin with electrification projects in selected schools and health centres in the Federal Capital Territory, Niger, and Nasarawa states.

The Minister of Power, Adebayo Adelabu, highlighted that Nigeria’s rural electrification efforts have significantly improved through grants and subsidies.

Adelabu, represented by Bem Ayangeaor, expressed optimism that public support will increasingly attract private-sector investment to the sector.

“I do not doubt that the rural electrification space in Nigeria, thanks to grants and subsidies, has grown significantly and will soon reach a stage where public support leverages private sector financing at higher efficiencies than it is presently done.

“A stage where the private sector would be more excited in investing in the electrification space because of the benefits to be gained,” Adelabu said.

The Director of Technology and Science Education at the Federal Ministry of Education, Muyibat Olodo, stressed the importance of electricity for modern education, particularly for institutions focused on science and technology.

“Access to power is not a luxury in Nigeria and especially in our public institutions. There is a need for uninterrupted power supply in our schools especially those in the science and technology field.

“With proper implementation, our public institutions in the FCT, Niger, and Nasarawa states will become models of energy resilience, self-sufficiency, and sustainability,” she stated.

SEPTEMBER 28, 2024

The Federal Government has declared Tuesday, October 1, 2024, a public holiday. This is to commemorate the nation’s 64th Independence Day.

Olubunmi Tunji-Ojo, interior minister, made the declaration on Saturday in a statement issued by Magdalene Ajani, permanent secretary in the ministry.

He stressed that the labour of our heroes past would not be in vain, noting that a “Nigeria of our dream can only be built when we unite.”

Tunji-Ojo congratulated Nigerians at home and abroad, stressing that their sacrifices would not be in vain. He urged citizens to continue to be steadfast in nation-building.

While Nigeria will celebrate its independence on Tuesday, some protesters are gearing up to demonstrate against poor management of the economy and rising hunger in the nation.

An earlier protest in August took place for 10 days, but it is not clear whether there were concrete achievements.

SEPTEMBER 28, 2024

Ahead of the resumption of Emirates Airlines’ flight operations to Nigeria next Tuesday, Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has negotiated an agreement on reciprocal rights to ensure that Nigerian airlines commence direct flight operations to the United Arab Emirates, UAE.

A statement by Mr Tunde Moshood, Special Assistant on Media and Communications to Keyamo, said the minister, who led a delegation to UAE to finalise negotiations on the resumption of Emirates, stated that the meeting set the foundation for a new Bilateral Air Service Agreement, BASA, between both nations. Moshood said this would enhance collaboration between the two countries and establish guidelines for both countries.

The statement reads: “The Honourable Minister, accompanied by his technical team, engaged in constructive discussions with UAE aviation authorities, to ensure smooth reintroduction of Emirates Airlines into the Nigerian airspace next week Tuesday. The new BASA, which was a focal point of the talks, is designed to enhance collaboration between the two countries and establish guidelines for their evolving relationship in the aviation sector.

“Crucially, the negotiations also yielded a significant agreement on reciprocal rights, ensuring that Nigerian airlines will soon have the opportunity to commence direct flight operations to the UAE. This marks a historic development for Nigeria’s aviation industry, expanding international connectivity and offering more options to travelers between the two nations.

“Speaking on the outcome of the meeting, Festus Keyamo stated: “Today’s discussions reaffirm our commitment to fostering a balanced and forward-looking partnership with the UAE. We are pleased to have secured reciprocal operational rights for Nigerian airlines, which will not only deepen our bilateral ties but also strengthen the global competitiveness of Nigeria’s aviation industry. As Emirates returns to Nigeria, we look forward to a thriving and mutually beneficial air service relationship.

“This development follows weeks of diplomatic and technical consultations aimed at restoring direct air travel between Nigeria and the UAE, further signaling the Federal Government’s dedication to ensuring the best possible outcomes for both Nigerian and international travelers. The resumed flight operations by Emirates and the new BASA will play a pivotal role in promoting tourism, business, and cultural exchanges between Nigeria and the UAE, as well as fostering economic growth.”

OCTOBER 03, 2024

Alistair Smout, William James, Muvija M and Michael Holden

LONDON, Oct 3 (Reuters) – Britain said on Thursday it would give up sovereignty of the Chagos Islands to Mauritius in a deal that would allow people displaced decades ago to return home while London retains use of the UK-U.S. military base on Diego Garcia.

Britain said that the operation of Diego Garcia, a strategic military base jointly operated with the United States, was protected by the agreement, which also allows Mauritius to resettle the rest of the islands after its population was displaced.

“This government inherited a situation where the long-term, secure operation of the Diego Garcia military base was under threat, with contested sovereignty and ongoing legal challenges,” British Foreign Minister David Lammy said in a statement.

“Today’s agreement secures this vital military base for the future. It will strengthen our role in safeguarding global security, shut down any possibility of the Indian Ocean being used as a dangerous illegal migration route to the UK, as well as guaranteeing our long-term relationship with Mauritius.”

Britain, which has controlled the region since 1814, detached the Chagos Islands in 1965 from Mauritius – a former colony that became independent three years later – to create the British Indian Ocean Territory.

In the early 1970s, it evicted almost 2,000 residents to Mauritius and the Seychelles to make way for an airbase on the largest island, Diego Garcia, which it had leased to the United States in 1966.

The World Court said in 2019 that Britain should give up control of the islands and said it had wrongfully forced the population to leave in the 1970s to make way for a U.S. air base.

In a joint statement, Britain and Mauritius said that the political agreement had the support and assistance of the United States and India.

(Reporting by Alistair Smout, William James, Muvija M and Michael Holden; Editing by Kate Holton)

OCTOBER 04, 2024

By Abdullateef Aliyu, Lagos

Minister of Aviation and Aerospace Development, Mr Festus Keyamo, SAN, yesterday said with the revised bilateral air service agreement (BASA) with the United Arab Emirates (UAE), Nigerian airlines can fly to any airport in the UAE.

Keyamo who spoke at the Murtala Muhammed International Airport (MMIA) on arrival with Emirates Airlines which just resumed flight operations to Nigeria after two years, stated that the reopening of flights to Nigeria is in the best interest of the Nigerian people.

Daily Trust reports that Emirates returned to Nigeria on October 1st, 2024 after suspending flights for over two years.

The Emirates Airline’s return followed the resolution of the issue of trapped funds with the Nigerian government.

While the airline formally returned on Tuesday, the Minister of Aviation and some chief executives of the aviation agencies arrived yesterday aboard an Emirates’ Airline’s flight after which a brief ceremony was held with officials of the airline.

It would be recalled that Keyamo had finalised agreement with the UAE authorities to guarantee reciprocal rights for Nigerian airlines willing to start flying to any of the UAE cities, especially Dubai.

Speaking with newsmen, Keyamo said, “The first thing we did when we went to negotiate a new BASA with the UAE was to also secure the route for our local operators. Our agreement with them is that they fly to any destination, we fly to any destination in the UAE.”

He said the return of Emirates would boost competition on the route as passengers now have a variety of choices to make.

“This is what this is all about, to ensure healthy competition and a healthy competition leads to competitive prices for the benefit of the Nigerian people,” he added.

He recalled that some airlines increased their prices when Emirates suspended operation, adding that the Nigerian government fought for the return of Emirates because of the strategic position of Dubai as a global travel hub.

“For Nigerian travellers, it is easy to access any part of the world by simply travelling to Dubai and connecting any flight and for our airlines too, we have also secured some kind of code-sharing agreement. We have told them (Emirates) that if they want to code-share, our airlines would have the right of first refusal,” he said.

Keyamo disclosed that Emirates is also in talks with some domestic carriers to explore the possibility of code-share. 

OCTOBER 07, 2024

Dipo Oladehinde & Cynthia Egboboh, Abuja. 

After 64 years of independence and over six decades of oil exploration, crude oil accounts for less than 10 percent of Nigeria’s GDP but represents about 90 percent of foreign exchange earnings and more than half of government revenue.

Endowed with some of the world’s biggest proven oil reserves of 37 billion barrels, Nigeria had the potential to break into the global stage to take an active position in decisions on international energy demand and supply issues alongside most of the world’s biggest oil producers.

Nigeria and the Organization of the Petroleum Exporting Countries (OPEC) had collectively agreed on how much oil to produce, with a view to exerting considerable influence on the global market price of oil and, understandably, keep it relatively high in order to maximise profitability.

In 1973, the cartel was able to influence an oil boom which saw prices quadruple from $3 per barrel to $12 per barrel.

Also, between 2006 and 2009, the price of oil went from $74.59 to $109.25. Again, from 2010 to 2013, the price of oil rose from $84.24 to $100.95.

Life after oil

During these boom periods, most oil-producing countries ran successful economies and also learned not to put all their eggs in one basket by intensifying plans for life beyond crude oil, a point Africa’s biggest oil-producing country missed.

For instance, Saudi Arabia, the world’s biggest oil exporter, took full advantage of the sustained rising oil prices to build new cities. The projects were designed to burnish the country’s image, develop a non-oil economy and generate enough employment to maintain social stability.

For the UAE, building an economy less dependent on the ups and downs of the price of oil, but with a skilled workforce in many different industries, is beyond lip service. The country has a development plan for the next 50 years after 2021 called “2020: Towards the next 50.”

The plan aims to strengthen the country’s investment in future generations with a focus on advanced technology, relying less on oil by diversifying exports and imports, enhancing cohesion in societies, improving the productivity of the national economy and building on Emirati values for the benefit of future generations.

In Norway, the government viewed oil revenue not as a source for immediate squandering but as a “transformation of wealth, from a natural resource to financial wealth,” with consideration for the future by upholding an ethical obligation to share oil wealth with future generations.

Nigeria is different

For Nigeria, the narration is different. Policy missteps, wasteful spending and an inability to diversify away from petrol dollars or build a life after oil plan have restricted the country’s economy from attaining its full potential and have rendered it fully susceptible to the renowned “resource curse.”

“No doubt, IOC divestments have created opportunities for local operators and service providers. However, weak governance eventually stifles everything. The government has a huge responsibility to catalyse things, drive efficiency, and sustain it so that the Nigerian oil and gas industry can thrive,” said Dimeji Bassir, CEO, Ofserv told Africa Energy Magazine.

Despite producing oil in commercial quantities for more than five decades, Nigeria’s oil production has not exceeded, in recent tyimes, the 2.3 million barrels a day achieved in 1979. Its oil output was insufficient to spark a Middle Eastern-style economic miracle back then.

“Since the early days of exploration in the Niger Delta region, Nigeria has faced challenges of crude oil theft and pipeline vandalism, leading to disruptions in production,” analysts at Asset & Resource Management Company Limited (ARM) Group said in their 2024 report.

Read also: Nigeria’s oil sector turns ghost town as FDI vanishes

They added, “These issues have significantly impacted Nigeria’s ability to produce crude oil to its maximum potential, resulting in consecutive contractions in the sector’s growth rate.”

Recent modest gains such as the passage of the Petroleum Industry Act (PIA), rising indigenous operators and the advent of modular refineries have been stunted by an inefficient national oil company, loss-making refineries, and declining foreign direct investment (FDI).

“Nigeria’s refining capacity, although substantial, has been hindered by outdated infrastructure and mismanagement,” Analysts at ARM said.

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They added, “Recent efforts to establish modular refineries have increased refining capacity, but it still falls short of meeting domestic demand.”

Rot in NNPC

Analysts said deep scrutiny of Nigeria’s national oil company is the starting point in enabling the country’s oil and gas resources to deliver maximum value for its people.

“Nigeria is a volatile country, and our oil and gas industry does not have a good reputation internationally, making it difficult to raise capital to develop greenfield projects. Refining is the newest of the different upstream, midstream, and downstream sectors in the country, and while dealing with being a pioneer, refineries in Nigeria have had great difficulties in securing feedstock,” said Michael Osime, chairman of AIPCC Energy.

The NNPC, as the country’s oil firm, is at the centre of the chaos. Entrusted with 445,000 barrels of the country’s share of oil output from various contracts with local and international oil partners, the company has over the years turned to swapping crude for refined products because it could not maintain its refineries.

When the company began the opaque oil swaps in 2010, its refineries were working at only around 20 percent of capacity. The next year, banks unwilling to finance more open account imports that were at a deficit of over $3 billion forced the government to start granting waivers to marketers, ushering in the era of fraudulent petrol subsidies.

“By looking at successful oil companies like Shell and Exxon Mobil, Nigeria can glean valuable lessons in operational excellence. These companies prioritise efficiency, innovation, and sustainability, setting standards that NNPC and other local players should aspire to meet,” a senior oil executive told BusinessDay.

He added, “For instance, embracing technology in exploration and production can lead to lower costs and reduced environmental impact, making Nigeria’s oil sector more sustainable in the long term,”

Also requiring cleanup is NNPC operating models. It uses Joint Venture Agreements with local and international oil companies to produce in onshore and shallow-water oil wells. It owns 60 percent of benefits in these agreements but often fails to contribute its share of costs, leading to what is known as cash call arrears in the industry. However, it recently paid $2.44bn cash call obligations to multinational oil companies which are its joint-venture partners.

Most of these fields are troubled by sabotage and local community issues, forcing its multinational partners to opt out. Under the Nigerian law, they are required to decommission these fields – essentially leaving them the way they met them environmentally – but the costs are enormous. So they found a creative solution by selling their stake to local oil companies.

But NNPC has kicked against this arrangement. Shell, ExxonMobil and recently, ENI, have struggled to exit stakes in onshore assets.

“If we examine the production figures, with about 1.3 million bpd, excluding 600,000 bpd from deepwater, we are left with only 700,000 bpd from onshore operations. This is a significant decline from the previous level of 2 million bpd,” Austin Avuru, executive chairman, A.A Holdings told Africa Energy 2024 report.

He added, “As these IOC transactions settle and independents take charge, I anticipate a surge in new investments by these independent companies. It is conceivable that onshore and shallow water production could reach 4.5 million bpd, possibly in the near term.”

Apart from upstream, analysts at ARM said Nigeria’s downstream sector faces challenges, including mispriced products, security concerns, and dilapidated infrastructure, despite being the 13th largest crude oil producer in the world.

“The sector grapples with various challenges, including inadequate supply chain, security concerns around pipelines, inconsistent supply due to vandalism, outdated pipeline infrastructure, malfunctioning refineries, and logistics challenges,” Analysts at ARM said.

The nation now has Dangote Petroleum Refinery and it is being looked upon to change the Nigerian petrol refining outlook.

OCTOBER 07, 2024

 

By Abdullateef Aliyu

From December and continuing through February, Delta Air Lines will start daily nonstop flights on its New York JFK – Lagos route —an increase in the number of flights of 133%.

During this period, Delta will transition from the Airbus A330-200, which accommodates 223 passengers, to the more spacious Airbus A330-900neo, capable of carrying 281 passengers.

This strategic enhancement not only signifies an increase in capacity but also aims to provide an elevated travel experience for customers.

This decision underscores the Delta’s dedication to aligning its services with customer preferences and the evolving dynamics of air travel, the airline said in a statement yesterday.

Delta’s head of Sales for West Africa, Mary Gbobaniyi, said: “Adding more flights to the Nigerian market could not have been better timed. Increased capacity and a larger aircraft mean more options and an elevated experience for our customers.”

The airline stated that the decision to expand services to Lagos “is a direct response to positive customer feedback regarding Delta’s offerings and the overall demand in the market.”

To ensure a smooth travel experience, Delta advised all passengers traveling on flights from Lagos to arrive at the airport for check-in no later than 3 hours before departure to overcome airport security screening challenges.

Premium travellers on the New York-Lagos route will have the opportunity to enjoy the Delta One Lounge at John F. Kennedy International Airport.