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Nigeria’s oil firm uncovers 122 illegal refineries

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In the last week, Nigeria’s oil-rich Niger Delta region has witnessed the discovery of 122 illicit oil refinery installations. The discovery was made by the Nigerian National Petroleum Company Limited (NNPCL).

According to the NNPCL, a gas station in Akwa Ibom State was closed for supplying motorists with unlawfully refined fuel. In Rivers and other states in the oil-rich Niger Delta, 65 unauthorized pipeline connections were found and destroyed in the previous week, according to a documentary issued by the NNPCL on Tuesday.

“310 incidents were recorded between May 18 and 24 across the Niger Delta region,” the NNPCL disclosed while reeling out its efforts in fighting oil theft and vandalism.

A filling station in Grey Creek, Akwa Ibom State, was found to be selling illegally refined petrol. At Tomble II, III, IV, Umuajuloke, Rivers State, Oporomor III, Eduwini, and Ajatiton in Bayelsa State, 122 illicit refineries were observed.

According to reports, vandalized well heads were found in Imo State’s Tomble IV, Rivers, and Egbema. Additionally, a wellhead that had been vandalized revealed a pit full of crude oil.

The energy business reported that they spotted five illicit storage facilities where oil was kept in pits, sacks, cans, and a filling station. In the states of Delta and Imo, twenty vehicles—including a tanker—were taken into custody. Simultaneously, 29 boats in the states of Bayelsa and Delta were seized while transporting crude oil or products illegally processed across multiple waterways.

33 people are reportedly under custody concerning the incidents. Mele Kyari, the chief executive officer of the NNPCL Group, recently emphasized the necessity of combating insecurity in the oil and gas industry to boost output. According to Kyari, vandalism and oil theft are the main causes of the country’s declining crude oil production.

“How do you increase oil production? Remove the security challenge we have in our onshore assets. As we all know, the security challenge is real. It is not just about theft, it is about the availability of the infrastructure to deliver the volume to the market.

“No one will put money into oil production when he knows the production will not get to the market. We removed over 5,800 illegal connections from our pipelines within the last two years. We took down over 6,000 illegal refineries. You cannot get people to put money until you solve that problem,” he stated.

In November, the Nigerian government revealed that more than N4.3tn of crude oil was stolen in 7,143 pipeline vandalism cases within five years.

 

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Ezz al-Arab appointed as Egypt’s CIB chairman

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Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

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Nigerian inflation falls again, drops to 32.15% in August

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Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.

 

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