Day: July 5, 2024

Nigeria has been granted the hosting right for the African Energy Bank (AEB), after beating Ghana, Benin Republic, Algeria, South Africa and Cote D’Ivoire in a keenly contested bidding.

Sen. Heineken Lokpobiri, the Minister of State, Petroleum Resources (Oil), told newsmen in Abuja on Thursday, that the award of hosting right for the bank highlighted Nigeria’s robust energy sector.

He said, ‘the award of the hosting right also highlights the country ‘s strategic vision for Africa’s energy future.’

Lokpobiri expressed gratitude to President Bola Tinubu for the support extended during the course of the bidding.

He also thanked the Council of Ministers of the African Petroleum Producers Organisation (APPO) for the confidence in Nigeria’s capability.

The minister highlighted the collaborative spirit of the APPO members and their shared vision for a united, energy-secured Africa.

He emphasised that ‘this decision reflects our collective ambition to create African solutions to Africa’s energy challenges.

‘Th
e African Energy Bank will be instrumental to providing the necessary financial backbone for energy projects that will drive growth and development across the continent.

‘The decision is a significant step for the continent’s energy sector and underscores Nigeria’s pivotal role in Africa’s energy landscape.’

The minister assured Nigerians and Africans at large that the establishment of the African Energy Bank would mark a transformative era in meeting energy needs.

He said that the initiative aligned with the broader objectives of African Union’s Agenda 2063, aiming for a prosperous and self-sustaining Africa.

‘We are committed to ensuring that the bank did not only move Nigeria forward, but becomes a beacon of progress for the entire continent.

‘Our goal is to foster sustainable energy solutions that are both innovative and inclusive.’

The News Agency of Nigeria (NAN) reports that the bank is expected to facilitate access to funding for energy projects, thereby catalysing economic growth and enhancing
energy security.

Source: News Agency of Nigeria

The Nigeria Civil Aviation Authority (NCAA), has suspended ten private jet operations over failure to begin recertification process.

This is contained in a statement by Mr Michael Achimugu, Director, Public Affairs and Consumer Protection on Friday in Abuja.

The agency said the Nigeria Civil Aviation Regulations 2023 Part 18.3.4 forbids holders of Permit for Non Commercial Flights (PNCF) from using their aircraft for carriage of passengers, cargo or mail for hire or rewards (commercial operation or charter services)

‘As a result of flagrant disregard of this rule, the NCAA had earlier directed all holders of PNCF to undergo re-evaluation which should have been concluded by the April 19, 2024.

‘To this end, the NCAA has suspended the PNCF of Azikel Dredging Nigeria Ltd, Bli-Aviation Safety Services, Ferry Aviation Developments Ltd and Matrix Energy Ltd.

‘Also Marrietta Management Services Ltd, Worldwide Skypaths Services, Mattini Airline Services Ltd, Aero Lead Ltd, Sky Bird Air Ltd and Ezuma Jets Ltd.

‘
The public is hereby notified that it is illegal to engage PNCF holders for commercial purposes. The NCAA will not hesitate to initiate enforcement actions against any PNCF holder found guilty of illegal operations’.

The agency said that its officials had been deployed to General Aviation Terminals (GAT) and private wings of the airports to monitor activities of the PNCF holders.

Source: News Agency of Nigeria

President Bola Tinubu on Thursday inaugurated the Presidential Economic Coordination Council (PECC), mandating it to strengthen the economy.

He also inaugurated the Economic Stabilisation Programme to ensure food security, improved power supply, enhanced social welfare and healthcare, increased energy production, and overall economic transformation.

Speaking during the inaugural of the 31-member Council at the Council Chambers in Abuja, Tinubu, who chairs the Council, underscored the need for innovative solutions to the country’s economic challenges.

He noted the importance of public-private partnerships in driving economic reforms.

‘We have the challenge of energy security in Nigeria. We need to work together to improve our oil and gas sector, and we must also increase electricity generation and distribution throughout the country.

‘We are determined to do that with your cooperation, collaboration, and recommendations.

‘As a nation, it is so shameful that we are still generating 4.5GW of electricity.

‘We must increase our oil production to 2 million barrels per day within the next few months and we are determined to remove all entry barriers to investments in the energy sector while enhancing competitiveness.’

He announced measures, which would run concurrently with the National Construction and Household Support Programme, to stabilise the economy, enhance job creation, and foster economic security.

The News Agency of Nigeria (NAN) reports that the measures under the Economic Stabilisation Programme include Energy Security, which includes power, oil and gas, aims to increase on-grid electricity to be delivered to homes and businesses from about 4.5 gigawatts to 6 gigawatts in six months.

It also aims at increasing oil production to two million barrels per day within the next 12 months; and remove barriers to entry for investments into the sector to enhance competitiveness.

The programme includes Agriculture and Food Security, which aims at increase staple crops grown by small-holder farmers from 127
million metric tonnes in 2023 to 135 million metric tonnes this year.

It will bolster production by partnering larger-scale commercial farmers and support qualified farmers with satellite imagery for land use planning, crop rotation, and monitoring of agricultural expansion.

Another aspect of the plan is Health and Social Welfare under which the Federal Government hopes to make essential medicines available at lower cost for 80-90 million Nigerians.

It will also expand healthcare insurance coverage for one million vulnerable people via a Vulnerable Group Fund in collaboration with state governments.

It will redeploy 20,000 healthcare workers to provide services to 10-12 million patients in areas where they are most urgently needed and power up 4,800 primary healthcare centres (PHCs), second tier, and third tier hospitals using renewable energy sources.

Under the Economic Stabilisation Programme, Tinubu said some fiscal measures had been introduced to improve access to finance for the housing sector, MSME
s, and the manufacturing sector are.

The measures include support for new and existing youth-owned enterprises across all 36 states of the Federation, creating 7,400 MSMEs within the next 6-12 months.

There is also MSME support, a N650 billion facility that will provide lower-cost short-term facilities to youth-owned businesses, manufacturers and MSMEs across various industries; food processing, pharmaceutical, agriculture, and wholesale and retail trade.

‘This financing will be based on their current and future receivables, company rating, and market demand for products.

‘A Manufacturing Stabilisation Fund will rejuvenate up to two hundred and fifty companies and deliver lower cost (9.0 per cent -11.0 per cent) long-term facilities to large, medium-scale, and light manufacturers that produce finished goods for domestic and export markets.

‘Sub-national Matching Fund: A Grow Nigeria Development Fund consisting of a single-digit interest rate loan portfolio with the Bank of Industry and a matching fund ag
reement with sub-national governments to grow MSMEs,’ said the President.

He stated that the Bank of Industry’s Rural Development Programme would be expanded to support rural economies by developing 300 new MSMEs for each state, including the Federal Capital Territory, Abuja, resulting in 11,100 new rural-based MSMEs across the Federation.

‘Mortgage Finance Acceleration Facility: A facility that delivers affordable housing for all segments impacted by the cost-of-living challenge.

‘This will support the construction of an additional 25,000 housing units.

‘These fiscal measures will improve access to finance for MSMEs and, in the process, create 4.7 million direct and indirect jobs over a six to 12-month period,’ said Tinubu.

Emphasising the significance of the task ahead, Vice-President Kashim Shettima, who is the Vice-Chairman of the Council, stated that President Tinubu was committed to proffering solutions to the nation’s economic challenges and not apportioning blame.

‘I want to emphasise that when
there is a will, there is always a way, and the President does not believe in apportioning blame. He believes in preparing solutions,’ Shettima said.

Mr Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, made a presentation on the highlights of the Accelerated Stabilisation and Advancement Plan earlier submitted to the President.

The plan details economic issues to be resolved in 2024 by sub-committees in the key sectors of agriculture and food security, energy (oil, gas, power), health and social welfare, and business support.

Other members of the council include the Senate President, the Speaker of the House of Representatives, Chairman of the Nigeria Governors Forum, twelve ministers, and the Governor of the Central Bank of Nigeria.

Members from the Organised Private sector include: Alhaji Aliko Dangote, Mr Tony Elumelu, Alhaji Abdul Samad Rabiu, Ms Amina Maina, Mr Segun Ajayi-Kadir, Dr Funke Opeke, Dr Doyin Salami among others. (NAN) (www.nannews.ng)

Source: News Agency of
Nigeria

Stakeholders in the oil and gas sector have called for the review of the zero per cent import duties on the importation of Liquefied Petroleum Gas (LPG) cylinders, to encourage local production.

The stakeholders, who spoke in seperate interviews with the News Agency of Nigeria (NAN) on the sidelines of the 2024 Nigeria Oil and Gas (NOG) conference in Abuja.

NAN reports that the conference is designed to encourage local content and grow the country’s Gross Domestic Product (GDP).

The stakeholders sought for 40 per cent upward review of import duties against the prevailing 20 per cent.

Mrs Nkechi Obi, Group Managing Director, Techno Oil Limited, urged the Federal Government to reverse the zero import duties placed on the importation of LPG cylinders and restore the initial 40 per cent, to discourage importation.

‘We need policy reversal on that to encourage local producers.

‘The unofficial explanation we are getting from some customs officers is that the Compressed Natural Gas (CNG), which the government
wants to encourage its usage in Nigeria, has the same Harmonised System (HS) code with LPG.

‘So, the import benefits placed on CNG equipment eventually affected LPG equipment; that is why they were tied together on the zero import duties.

‘Harmonised System codes are commonly used throughout the import and export process for the classification of goods.

‘For me, we don’t produce CNG cylinders in Nigeria because it involves advanced technology but we produce LPG cylinders here.

‘For us to produce CNG cylinders, we have to change one or two machines, and we expect the government to encourage us to upscale our technology to 32, which we are planning to do.’

Obi suggested for exemption LPG HS code from that of the CNG, adding this would make the importers of LPG to pay higher duties.

‘It will also enable the government to continue with its efforts to make CNG affordable in the country with zero import duties.

‘The previous government protected those producing cylinders, so that import will not overshadow l
ocal production; they did that to encourage local manufacturing but when this government came into existence, policy changed.

‘We only enjoyed that policy for six months before it was scrapped and replaced with the new zero import duties policy.

‘Definitely; we have to produce CNG cylinders and the government needs to consider those that will go into that production. But if government policy is killing LPG cylinder production that we are doing, it will be very difficult to enter into CNG cylinder production.

‘So, if there is anybody who can venture into CNG cylinder production, we the producers of LPG cylinders are here to do that and it is in our plan.

‘But we are not encouraged to do it because of what happened to us in the LPG cylinder production because of the frustrating policy that’s encouraging importation,’ Obi added.

An Economist, Dr Chijioke Ekechukwu, said that the government must be deliberate about building the economy.

‘In doing so, we should not be approbating and reprobating at the same
time.

‘There are companies in Nigeria manufacturing LPG cylinders and have the capacity to manufacture the quantities required.

‘Why do we create business and job opportunities for some foreign companies and countries and deny Nigerians these opportunities?

‘Our already scarce Forex will be utilised to import these cylinders and put more pressure on the exchange rate and external reserve, while local factories will be pushed out of business, with attendant job losses,’ Ekechukwu said.

He said that efforts should be geared towards encouraging local manufacturers of LPG cylinders, contribute to the growth of Nigeria’s.

Source: News Agency of Nigeria

With today marking 100 days of no-load shedding, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, says this milestone is a testament to the hard work and dedication of not only Eskom employees but also the collaboration of those in the energy sector.

Eskom marked 100 days without scheduled rolling power cuts for the first time since 2020.

‘This achievement is a testament to the hard work, dedication, and collaboration of all those involved in the energy sector. I want to express my sincere appreciation to Eskom, its competent employees, and all stakeholders for their efforts in ensuring that we maintain a consistent power supply for our nation,’ Ramokgopa said in a statement on Friday.

He added that the absence of load shedding enhances South Africa’s economy and businesses ‘but also enhances the quality of the lives of our citizens’.

‘As we celebrate this milestone, let us remain committed to the continuous improvement of our energy infrastructure, the diversification of our energy sources a
nd the promotion of sustainable practices.

‘Together, we can build a resilient and efficient energy sector that meets the needs of our country now and in the future. Thank you to everyone who has contributed to this achievement. Let us strive to maintain this positive momentum in our quest for energy sovereignty,’ Ramokgopa concluded.

The Minister and newly elected Deputy Minister Samantha Graham- Maré are expected to hold a media briefing on electricity distribution and generation performance on Monday.

In announcing the new Cabinet of the seventh administration on Sunday, President Cyril Ramaphosa also announced changes to several government portfolios. The changes include the merger of the Ministries of Electricity and Energy.

In previous years, energy formed part of the Department of Mineral Resources and Energy.

‘There will be a separate Ministry of Mineral and Petroleum Resources. The Ministry of Agriculture will be separated from the Ministry of Land Reform and Rural Development,’ said the Preside
nt in Sunday’s address to the nation.

Source: South African Government News Agency

Public Works and Infrastructure Minister, Dean Macpherson, has confirmed that there will be no procuring of any new housing stock or offices for both the new Executive and Parliamentarians.

‘The Minister of Public Works and Infrastructure… has confirmed that while the Department of Public Works and Infrastructure is facilitating a smooth ushering-in of both the Executive and Members of Parliament for the 7th Administration, by providing work offices and residential accommodation, there will be no procuring of any new housing stock or offices for both the Executive and Parliamentarians alike,’ the Department of Public Works and Infrastructure (DPWI) said.

In its statement on Thursday, the department said the new Minister had indicated that allocations will be made from the existing state properties and that ‘no requests for new procurement will be entertained.’

The DPWI added that there will be no spending on existing properties and Members of the Executive and Members of Parliament will have to make do wit
h existing furniture.

Similarly, no new office rentals will be accommodated.

‘As the department responsible for the accommodation of the Executive and Members of Parliament, we will house all members from the available properties of the state. We will not rent or lease any accommodation or office space. The department has confirmed to me that there is enough available stock to meet the needs of both the executive and Members of Parliament,’ said the Minister.

He added that the tight fiscal position of the state is a paramount consideration for the decision.

‘Our economy cannot accommodate requests for the procurement of new accommodation. Moreover, we have listened to the message of the citizens about being prudent with the public purse…. and invest more in creating jobs and growing the economy. My number one priority is to invest in infrastructure and turn South Africa into a massive construction site under the theme #LetsBuildSA,’ he explained.

Since his appointment on Sunday, the Minister has hit the
ground running having met the Deputy Minister Sihle Zikalala and the Director-General of the department, Sifiso Mdakane, to discuss a number of critical issues.

The Minister will meet more stakeholders in the built environment and infrastructure sector in the coming weeks.

Macpherson was announced as the new Minister of the DPWI in an address to the nation by President Cyril Ramaphosa.

Source: South African Government News Agency