VenturesNow

Nigeria earns N273.8bn from oil in September after rise in production

Published

1 year ago

October 22, 2023

Nigeria’s oil earnings increased by over N273.8bn in September 2023 following the rise in crude oil production by operators in the sector.

The development was revealed in data obtained from the Nigerian Upstream Petroleum Regulatory Commission, after reports that the country pumped 40,396,863 barrels of crude oil last month.

In September, the average price per barrel of Brent crude was $93.72. At an average cost of $93.72/barrel, Nigeria produced an extra 3,781,738 barrels in September, increasing its oil earnings by about $354.42 million, or N273.8 billion, at an average exchange rate of N772.65/$ for the reviewed month.

Heineken Lokpobiri, the minister of state for petroleum resources (oil), informed reporters last week that Nigeria’s oil production had climbed to approximately 1.7 million barrels per day, from 1.1 million barrels per day in August of this year.

The rise means Nigeria pumped its highest volume of crude oil so far this year in September, which was about 14 per cent higher than what it pumped in the preceding month of August 2023.

Lokpobiri explained that the rise in crude oil and condensate production was because the government and operators in the sector had been able to identify where the problem was coming from.

He said, “We have a sole agenda and it is to increase crude oil production. Once you increase production there will be more revenue for Nigeria and that is the recipe to virtually all the problems we have in this country.

“You know that Nigeria is very dependent on oil, even our budget is always predicated on how many barrels of oil we produce. Although the non-oil sector is thriving, for us to solve our problems we need to earn enough forex.”

Nigeria’s revenue has suffered as a result of industrial-scale oil theft. According to the Nigerian Extractive Industries Transparency Initiative (NEITI), the country lost 619.7 million barrels of crude oil valued at N16.25 trillion ($46.16 billion) to theft between 2009 and 2020.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

4 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.