VenturesNow

Why Shell must safely decommission its outdated assets before leaving Nigeria—Report

Published

10 months ago

March 6, 2024

According to a report on the environmental impact of multinational businesses’ activities, Nigeria must ensure that Shell safely dismantles its outdated infrastructure or pay to have it removed from the Niger Delta before it leaves.

After deciding in January to sell the company to a group of five, primarily local, businesses for $2.4 billion, Shell is about to withdraw from its onshore oil and gas operations in Nigeria.

This transaction is the most recent one made by a foreign oil corporation looking to exit Nigeria’s problematic onshore oil market. However, the analysis by the nonprofit Centre for Research on Multinational Corporations (SOMO) claims that the nation’s ecology may suffer as a result of the expense of decommissioning outdated assets.

“The big issue is that Shell is leaving the onshore Niger Delta and leaving behind potentially a massive bill for (clean up),” SOMO’s executive director, Audrey Gaughran, said.

Requests for a response from Reuters were not answered by Shell. The Renaissance consortium would handle handling oil spills in the delta, which Shell has long said are largely caused by oil theft and pipeline interference, according to the announcement made in January when it launched the contract.

Vice chairman of ND Western, one of the five businesses in the Renaissance consortium, Layi Fatona, told journalists that the grouping will abide by the laws of the nation, but she would not comment directly on the matter or how much it has planned for cleanup.

Before being given permission to leave, oil majors would have to demonstrate compliance with regulations on decommissioning, among other things, according to Gbenga Komolafe, the head of the Nigerian Upstream Petroleum Regulatory Commission, who spoke with Reuters.

He did not mention Shell by name, and the regulator would not say if the oil firm or other businesses had followed the regulations. The administration has declared that it will not obstruct the Shell transaction.

The delta’s residents are also requesting that Shell compensate them for land damaged by past oil spills or restore the environment.

“We depend on farming and fishing, but now our lands and rivers have been destroyed. If they leave without healing the soil, how do we survive?,” says 61-year-old farmer Ayibakuro Warder, from the Ikarama community in Bayelsa State.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days 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

3 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.”