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Exxon to invest $10 billion in Nigeria

Published

2 months ago

September 26, 2024

According to a presidential spokesperson, Stanley Nkwocha, on Thursday, who cited business executives, Exxon Mobil Corp has proposed a $10 billion investment in offshore oil operations as part of a new investment push in Nigeria.

The investment was disclosed following talks between Vice President Kashim Shettima and Exxon’s Nigeria CEO, Shane Harris, on Wednesday in New York during the U.N. General Assembly.

Exxon intends to concentrate on advancing the $10 billion-plus Owo project, a substantial deep-water project.

Even though it agreed to sell its onshore assets to Seplat Energy for $1.3 billion, the company still intends to invest $2.5 billion a year to sustain its operations in Nigeria and increase oil output by 50,000 barrels per day (bpd) over the next few years.

Exxon and the Nigerian president’s office are collaborating closely “to secure favourable fiscal arrangements that will make this significant investment possible,” according to a statement from Harris.

An Exxon representative did not immediately answer a request for comment.

The majority of Nigeria’s foreign exchange earnings and government revenue come from the production of oil, which rose by 10.15% in the second quarter to an average of 1.41 million barrels per day from 1.22 million barrels per day the previous year.

However, even after enacting a law three years ago to reduce regulatory uncertainty and draw in investments, Africa’s biggest oil producer still faces difficulties in its oil sector, including widespread theft and sabotage.

“This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration’s vision for a more investment-friendly Nigeria,” Shettima said. “We are committed to creating an enabling environment for such transformative projects.”

Related Topics:Exxon ExxonMobil Featured Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

2 days 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.

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

Published

4 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.