VenturesNow

Nigeria’s gas production falls despite N250bn intervention fund— Report

Published

1 year ago

November 30, 2023

Nigeria’s production of natural gas fell last year despite a N250 billion intervention fund provided to fifteen companies, according to an industry report.

Nigeria’s natural gas production decreased by 4 billion cubic feet between 2021 and 2022, according to a report produced by the Energy Institute in collaboration with KPMG.

Gas production in the nation, which was estimated to be 39 billion cubic feet metres in 2012 and had increased to 49 billion cubic feet metres by 2020, abruptly fell to 45 billion cubic metres in 2021 and then 40 billion cubic metres last year.

According to the report, “The development happened despite a N250bn intervention fund by FG through the Central Bank of Nigeria, out of which N130bn was doled out to 15 companies to construct Compressed Natural Gas conversion centres.

“The NGEP was introduced by the Federal Government to make the CNG the fuel of choice for transportation and the Liquefied Petroleum Gas, the fuel of choice for domestic cooking, captive power, and small industrial complexes.”

In an effort to boost financing in vital economic sectors, the CBN unveiled the N250 billion intervention facility following the launch of NGEP. This facility sought to stimulate investment in the gas value chain.

The Senate Committee on Gas, chaired by Jarigbe Agom Jarigbe, will on Thursday meet with the fifteen companies—Dangote Oil Refinery, Nipco Gas Ltd, Nipco Plc, Hyde Energy Ltd, Lee Engineering and Construction Company, Pinnacle Oil and Gas FZE, Transit Gas Ltd, Amalgamated Oil Company Nig Ltd, First Modular Gas Systems Ltd, NOVAGAS Ltd, Greenville Liquefied Natural Gas Company, AP LPG Limited and MOB Integrated Services Limited, Delta State Government, and Gas Nexus Ltd.

The Senate’s summon letter said, “The invited companies are required to appear with their progress reports, stating location or projects and the current status of the projects.”

Meanwhile, the President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okoronkwo maintained that none of the organization’s members got the loan.

“None of my members got a kobo from the money. If such funds were given to the right people, by now, many stations would have commenced the CNG conversion centres and by now more than one million cars would have been converted,” he said.

Nigeria holds the largest natural gas reserves on the continent. As of 2022, some 32.2 billion standard cubic meters of natural gas were exported by the West African country.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”