All posts by : AMAC Admin

Minister of State, Petroleum Resources (Gas), Hon. Ekperipe Ekpo

There are immediate considerations by the government towards enhancing power-to-gas initiative in a deliberate approach not only to harness the country’s abundant gas reserves but to push up electricity generation.

Minister of state for Petroleum Resources (Gas), Ekperikpe Ekpo said, the revitalisation of the initiative will mark a strategic shift in the country’s approach to harnessing its abundant natural gas resources.
This initiative is designed to enhance electricity generation, foster economic development, and boost Nigeria’s global competitiveness by focusing on the comprehensive development and utilisation of gas resources.

The government aims to address chronic electricity shortages, stimulate industrial growth, and promote cleaner energy solutions by prioritising domestic gas utilisation and investing in critical infrastructure.
With approximately 209 trillion cubic feet of proven gas reserves, Nigeria is poised to transform its energy landscape.

This initiative also includes strengthening local content and capacity building, expanding liquefied natural gas exports, and supporting compressed natural gas projects for transportation.

These efforts are meant to create a sustainable and prosperous energy future, aligning with global trends toward cleaner and more efficient energy sources.

The focus on promoting domestic gas utilisation is pivotal for addressing Nigeria’s long-standing electricity generation challenges. By prioritising gas-to-power projects, the government aims to ensure a reliable and sustainable electricity supply, which is crucial for economic stability and growth. Gas-to-power projects offer an efficient way to convert Nigeria’s abundant natural gas reserves into electricity, which could significantly reduce power shortages and increase access to energy across the country.

The Minister highlighted the government’s commitment to developing critical gas infrastructure. This includes the transportation and distribution of natural gas nationwide, enabling its use in industrial applications and transportation.

Investing in infrastructure is essential for the seamless movement of gas from production sites to end-users, ensuring consistent supply and facilitating industrial growth.

Nigeria, he said, is well-positioned to utilise its natural gas resources for economic development, noting that, effectively harnessing these reserves can drive industrialization, reduce oil dependency, and enhance energy security.

The minister’s focus on gas resources aligns with global trends toward cleaner energy and positions Nigeria as a leader in transitioning to a low-carbon economy.

By capitalising on its vast reserves, he said, Nigeria can foster sustainable growth and significantly contribute to global efforts to reduce carbon emissions, securing its place in the future of clean energy.

Ekpo also harped on strengthening the Nigerian Content Development and Monitoring Board (NCDMB) which is a strategic move to enhance local capacity and enforce local content policies.

This focus on local content, he stressed, ensures that Nigerians benefit directly from the country’s natural resources through job creation, skill development, and the growth of local industries.

The NCDMB’s efforts to promote local content are evidenced by its significant investments in gas projects and infrastructure.

Expanding Nigeria’s LNG export capacity is vital to the initiative, positioning the country as a key player in the global gas market. This strategy promises to generate significant revenue, attract foreign investment, and boost Nigeria’s geopolitical influence.

The minister’s emphasis on Compressed Natural Gas (CNG) projects highlights the government’s strategy to reduce transportation costs and lower the overall cost of living.

The CNG serves as a cleaner, more affordable alternative to traditional fuels, aligning with global efforts to cut carbon emissions and combat climate change.

By investing in CNG infrastructure, Nigeria aims to make transportation more economical and environmentally friendly, which can significantly improve air quality across the country.

This focus on CNG is a forward-thinking approach that not only addresses environmental concerns but also supports sustainable economic growth by making energy more accessible and cost-effective for consumers.

The rejigging of Nigeria’s gas-to-power initiative represents a comprehensive strategy to utilise the country’s vast gas resources for sustainable economic growth.

By focusing on domestic utilisation, infrastructure development, local content, and global market expansion, Nigeria aims to enhance electricity generation, reduce costs, and position itself as a leader in the global gas market.

This initiative holds promise for transforming Nigeria’s energy landscape, improving living standards, and driving industrial development.

The government’s strategic focus on gas resources is a forward-thinking approach that could yield significant long-term benefits for Nigeria and its people.

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Seplat Energy Plc, has reassured all stakeholders of its commitment to driving and ensuring a sustainable business and creating increased value for people and the environment.

The company also reiterated its resolve to address the dual challenges of ensuring energy security and meeting climate change mitigation targets.

The director, New Energy, Seplat Energy, Mr. Okechukwu Mba, gave the assurance during a panel session at the Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos, themed ‘Energy Security: Exploring the Interplay Between Technology, Market Dynamics and Organisational Capabilities’.

Mba who represented the CEO Seplat Energy, Roger Brown said every molecule of gas Seplat Energy produces is targeted at displacing utilisable diesel, and the company’s new gas plant developments now come with Liquefied Petroleum Gas (LPG) installations, which promote clean energy and discourages the use of biomass for cooking.

“We are committed to ending routine gas flaring by 2025, and all projects aimed at making this a reality are on track,” Mba assured.

In a bid to end gas flaring as targeted, Seplat Energy said it has continued to progress efforts to secure evacuation options for unprocessed associated gas from the Sapele Flow Station.

“Alongside this, work has continued on the construction of the Sapele Integrated Gas Plant (SIGP), which is scheduled to be completed during H2 2024. Once operational, SIGP offtake has the potential to materially reduce Group Scope 1 emissions.

“Other ongoing key flare-out projects, including the Western Asset Flares Out (installation of VRU compressors), Sapele LPG Storage & Offloading Facility, Oben LPG Project and Ohaji Flares Out Project, are on track for completion by their respective due dates,” the Company said.

The Seplat Energy director referenced the company’s Tree4Life initiative, which recently saw the NEPL/Seplat Energy joint venture and the Edo State Government sign an agreement that allocates 6,000 hectares of land from Edo State protected forest reserves to enable a large-scale tree planting initiative by Seplat Energy Plc, saying this is in furtherance to increase forest cover and carbon sequestration efforts within the region and ensuring a sustainable environment for living.

Also, Mba said all efforts are being deployed to check any form of production deferment and downtime by ensuring strong partnerships with suppliers, who are continuously supported to succeed in delivering value to Seplat Energy and its other stakeholders.

On the current opportunity available to Nigeria to ensure energy security, he said, “for Nigeria, it is important we use what we have (which is gas) to address the energy challenges we have and further boost energy access for our people.”

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Data from the Central Bank of Nigeria (CBN) has shown that more than 93 per cent of currency in circulation is outside the banking industry having surged to an unprecedented N4.04 trillion in June 2024.

This marks a significant increase in the amount of money in the economy.

The CBN’s Money and Credit Data also highlighted that currency held outside banks reached a historic high of N3.79 trillion, accounting for 93.6 per cent of the total currency in circulation.

A breakdown of the first six months of the year shows that 2024 began with N3.65 trillion in circulation, reflecting a stable start aligned with typical post-holiday economic activities. By the end of February, this figure had modestly increased to N3.69 trillion, a growth of N43 billion or 1.18 per cent from January.

March recorded a more substantial rise, with the currency in circulation climbing to N3.87 trillion, marking a month-on-month increase of N175 billion or 4.76 per cent. The trend continued in April, with the figure reaching N3.92 trillion, an increase of N53 billion or 1.39 per cent from March, likely spurred by heightened economic activity during the Easter period.

In May, circulation further increased to N3.97 trillion, a rise of N42 billion or 1.07 per cent from April. The most significant jump occurred in June, when currency in circulation peaked at N4.04 trillion, an increase of N84 billion or 2.11 per cent from May.

Looking specifically at currency outside banks, the year started with N3.28 trillion. By the end of February, this figure had risen to N3.41 trillion, an increase of N130 billion or 3.98 per cent from January.

March saw a notable rise in currency outside banks, reaching N3.63 trillion, a month-on-month increase of N217 billion or 6.34 per cent. However, in April, there was a slight decrease to N3.61 trillion, a drop of N22 billion or 0.62 per cent from March.

The upward trend resumed in May, with currency outside banks increasing to N3.71 trillion, up by N105 billion or 2.93 per cent from April. The most significant rise was in June, with currency outside banks reaching N3.79 trillion, an increase of N80 billion or 2.16 per cent from May.

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Nigerian Exchange Group (NGX Group) online platform called ‘NGX Invest’ is expected to streamline the dividend distribution process, which aims to reduce the incidence of unclaimed dividends in the country.

The platform, which is also used for the distribution and subscription of public offerings and rights in the Nigerian capital market has gained popularity among investors, successfully onboarding a diverse range of participants. The platform’s e-dividend system represents a significant improvement over traditional paper-based methods.

The group managing director/chief executive officer of NGX Group, Temi Popoola elaborated on the advantages of the digital solution, saying, “NGX Invest allows investors to designate their preferred account for dividend payments. The system leverages real-time identity verification through NIBSS, transmitting this information directly to the registrar, thereby significantly streamlining the dividend distribution process.”

Popoola further explained the potential of the platform’s integration with the Bank Verification Number (BVN) system.

According to him, the integration of BVN with the designated dividend account opens up possibilities for aggregation and consolidation of dividend payments from multiple shares linked to a single BVN. This feature has the potential to greatly enhance efficiency in dividend management.

“This innovative approach to dividend distribution is expected to enhance overall efficiency and convenience for investors. By reducing the need for additional follow-up work typically required in traditional paper offerings, NGX Invest is positioning itself as a game-changer in Nigeria’s capital market,” he pointed out.

He added that, “the e-dividend system is just one of many features designed to improve the experience of stakeholders in the public offerings value chain. As NGX Invest continues to evolve, it promises to play a crucial role in modernising and streamlining investment processes in Nigeria’s financial markets.”

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The National Average Cost of a Healthy Diet surged to N1,241, according to the latest report from the Nigerian Bureau of Statistics (NBS).

This figure represents a 19.2% increase in June from the N1,041 recorded in May 2024.

The Cost of a Healthy Diet (CoHD) is calculated based on the least expensive combination of locally available foods that meet global dietary guidelines.

It provided a measure of both physical and economic access to healthy diets, excluding transportation and meal preparation costs.

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…To engage market leaders, others

The Federal Competition and Consumer Protection Commission (FCCPC) has said it will be engaging leaders of markets and others in the supply and distribution chain across the nation, as part of measures to curb the rising inflation in the country.

The executive vice chairman and chief executive of the FCCPC, Tunji Bello, in a statement said, the move is part of measures to check exploitative pricing of consumer goods as part of its mandate.
Bello, whilst acknowledging that the exchange rate has impacted the value of the Naira, said: “it is however observed that prices charged are, in most cases, disproportionate for imported products and excessive for locally produced ones.

“This unfair practice is prevalent in the retail segment of the distribution chain where some market associations are engaged in price fixing at the expense of consumers. Working with the market leaders, the Commission believes an understanding can be reached on reasonable pricing of products with a view to eschewing undue profiteering at the expense of consumers at a time of economic challenges.

“Such interaction will be sustained by the Commission to foster a better market culture that makes allowance for the trader’s margin without leaving buyers exploited. The Commission’s advocacy for Nigerian consumers in this direction is consistent with the renewed hope agenda of President Bola Tinubu.”

Recall that the commission has mandated the operators of supermarkets to visibly display the prices of products displayed on their shelves to shoppers for transparency and avoid an ambush situation where they only get to know of the prices after payment would have been made at the counter and receipt issued.

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FBS Reinsurance Nigeria Limited (FBS Re) has said, the basis of its existence is to combat capital flight in insurance and reinsurance businesses in Nigeria and across Africa.

The company stressed that, it’s a paradox that the Nigerian and other African insurance industry players are forced to rely on foreign reinsurers, leading to the undesirable consequence of scarce foreign currencies being exported to pay for these services.

In a statement from the firm and made available to LEADERSHIP at the weekend, it said, African markets experienced foreign reinsurers withdrawing their capacities, especially, during any foreign currency liquidity crisis, which, unfortunately, is a perennial occurrence on the continent.

“These foreign companies’ impromptu exits usually disrupt corporate planning efforts, erode much-needed stable reinsurance capacity, and increase the cost of business. Thus, the markets face capacity availability volatility to provide for growing industrial, Energy, Aviation, and Marine risks,” it pointed out.

These difficult scenarios, it added, compelled a group of mostly Nigerian insurance and reinsurance professionals to establish FBS Re to reduce the capacity gaps and to conserve the economy’s scarce foreign exchange.

Stressing that, it also leverages the business and other strategic relationships of frontline insurance companies that are institutional shareholders, namely Leadway Assurance, Custodian and Allied Group, Standard Insurance Consultants, Scib Nigeria Limited, and YOA Re Brokers, it added that, FBS Re focuses on offering better services to close the gaps in Nigeria and Africa and aims to be a significant player in international reinsurance.

Through hard work, FBS Re said, it is fast emerging as a significant African reinsurance player to the good acknowledgement of all stakeholders as the reinsurer, in 2021, 2022, and 2023, recorded a Gross Premium Written (GPW) of N7.91 billion N16.59 billion and N31.44 billion respectively.

“Having laid a strong foundation for future growth, the Board of FBS RE has now decided to restructure the Board and management. The founding CEO, Fola Daniel, and COO, Steve Kyerematen, who had stepped down as CEO and COO, respectively, were reappointed as Non-Executive Directors of the company.

Ganiyu Musa, a former deputy managing director of Africa Reinsurance Corporation and past group managing director of Cornerstone Insurance Plc, took the role of MD/CEO, while Shola Ajibade, director of operations, was appointed executive director of Technical and Business Development,even as Bala Zakariyau, an iconic figure in the insurance and reinsurance business, continues to lead the Board of Directors, ”the statement pointed out.

Today, only three reinsurance companies in Nigeria are licensed and regulated by the National Insurance Commission (NAICOM).

FBS Reinsurance, the latest and only local reinsurer established in Nigeria in 35 years, was registered in 2016, got an operating licence in late 2020, and commenced actual business operations on January 1, 2021.

With the insurance industry’s gross written premium or turnover in Nigeria on a steady rise and risks becoming more complex, the demand for reinsurance services is more pressing than ever, creating a significant market opportunity that FBS Re is tapping into.

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The Nigerian Railway Corporation (NRC), over the weekend, said only Apapa seaport is connected by rail for cargo evacuation to the hinterland.

Speaking at the weekend in Lagos during a one-day Stakeholders Sensitisation Summit on Limitations To Rail Transportation of Cargo In Nigeria which was organised by the Nigerian Shippers Council (NSC), the NRC director of Operations and Commercial Services, Akinwunmi Oshinowo, said rail is not connected to Tin-Can Port, Lekki Port, Onne Port and Warri or Calabar Port.

“The only port we are connected to as of the moment is Apapa Port. We are not  connected to Tin-Can Port, Lekki Port, Onne Port and Warri or Calabar Port,” he said.

Osinowo, however, lamented that additional seaports charges slammed on cargoes by terminal operators at the Apapa Port is a major reason why importers opt for road or barge haulage of their cargoes instead of rail haulage.

He explained that, if those seaport charges can be removed, more cargoes will be moved by rail from the Lagos port.

“For cargo haulage from the ports to the hinterland, there are incidental charges hampering these services. This is one of the areas we expect the Nigerian Shippers Council (NSC) to help us look into and stop because these costs are not allowing cargoes to be moved by rail from the Apapa Port efficiently.

“In the logistics chain, people often forget that movement of goods in one stage affects the other. Many of our customers at the ports are always telling us that our services are too expensive, that we must bring down the cost of cargo rail services at the APM Terminals in Apapa Port.

“But we have tried to explain to many of our customers that the rail component of cargo clearance is one of the cheapest around compared to other modes of cargo evacuation. What is affecting rail haulage of cargoes at the port is a double handling cost and an extra charge that is slammed on cargoes by the terminal operator at the port.

“At Apapa Port, APM Terminals charges a fee for loading cargoes on the rail. Also when the train gets to its destination in Ibadan or before Ibadan, there is a fee also charged for the offloading of these containers. The problem is that the NRC does not have control over the charges slammed at both ends of the rail logistics chain. We don’t have control over the loading cost inside the Apapa Port and also don’t have control over the offloading cost at the destination end of the logistic chain.

“Again, inside the Apapa Port, there is an extra charge for rail bound cargoes that doesn’t apply to road or barge haulage of cargoes. The extra charge is slammed on the rail bound cargoes by the terminal operator at the Apapa Port.

“We have asked several times, why put an extra charge on rail bound cargoes and exempt road or barge haulage from such charges? This is one of the things we have asked the Port Economic regulator, the Nigerian Shippers Council to look into. These are part of the things that build up to the cost of clearing cargoes out of the port via rail haulage.

“Late last year, when we were wrapping up the standard gauge rail construction, we had a meeting with the port stakeholders on these issues because for the customers who own the cargoes, it is about  minimising cost during cargo clearance.

“We told the port stakeholders that the cost that they are adding to rail haulage of cargoes is making cargo evacuation by rail unprofitable. There is no way we can drop the price for rail haulage beyond the least reasonable rate because we must factor in diesel purchase in our operations. Government does not give the NRC funds to buy diesel, we source for diesel from whatever we make during rail haulage of cargoes.

“The cost of diesel has gone up about five times to what we used to buy. Other things we use like spare parts and engine oil have also gone up. Most of the spare parts that we use are imported, so we always consider forex issues when ordering for these spare parts.

“But unfortunately, after the meeting, nothing has changed. The charges are still being slammed on rail bound cargoes and this is what we want the NSC to help us look into as Port Economic regulator,” he pointed out.

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The National Average Cost of a Healthy Diet surged to N1,241, according to the latest report from the Nigerian Bureau of Statistics (NBS).

This figure represents a 19.2% increase in June from the N1,041 recorded in May 2024.

The Cost of a Healthy Diet (CoHD) is calculated based on the least expensive combination of locally available foods that meet global dietary guidelines.

It provided a measure of both physical and economic access to healthy diets, excluding transportation and meal preparation costs.

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The domestic equities extended uptrend with a gain of N578 billion, due to buy interest in Okomu Oil Plc and 31 others.

The All-Share Index (ASI) gained 1,017.29 points, representing a gain of 1.05 per cent to close at 98,116.27 points. Also, market capitalisation rose by N578 billion to close at N55.708 trillion.

The upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; Okomu Oil, MTN Nigeria Communications (MTNN), Oando, Julius Berger and Nigerian Breweries.

As measured by market breadth, market sentiment was positive as 32 stocks gained relative to 19 decliners. Unilever Nigeria, Vitafoam Nigeria and MTNN emerged the highest price gainer of 10 per cent each to close at N18.70, N19.25 and N198.00 respectively, per share.  Okomu Oil followed with a gain of 9.99 per cent to close at N353.30, while Oando advanced by 9.97 per cent to close at N36.95, per share.

On the other side, United Capital led others on the losers’ chart with 9.94 per cent to close at N14.50, per share. Abbey Mortgage Bank followed with a decline of 8.05 per cent to close at N2.40, while Sterling Financial Holdings Company declined by 5.66 per cent to close at N4.00, per share.

Ikeja Hotel lost 5.56 per cent to close at N6.80, while Chams Holding Company depreciated by 5.38 per cent to close at N2.11, per share.

The total volume of trade increased by 24.39 per cent to 791.782 million units, valued at N15.126 billion and exchanged in 9,059 deals. Transactions in the shares of NEM Insurance led the activity with 187.509 million shares worth N1.313 billion. Access Holdings followed with 115.983 million shares valued at N2.203 billion, while Guaranty Trust Holding Company (GTCO) traded 109.921 million shares valued at N5.056 billion.

Abbey Mortgage Bank traded 50.724 million shares worth N121.742 million, while United Bank for Africa (UBA) traded 44.629 million shares worth N934.389 million.

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