Economy

FG Nets N242bn From Marine Sector, Targets $7bn Oil & Gas Investment

Published

4 months ago

May 29, 2024

The Minister of Marine and Blue Economy, Gboyega Oyetola, has said that his ministry recorded a revenue of N242 billion in the first quarter (Q1) of 2024.

During the ministerial press briefing on Tuesday in Abuja, Oyetola said the revenue recovered represented a 92 per cent increase from the N126bn recorded in Q1 of 2023.

“A comparison of Q1 of 2023 against Q1 of 2024 revenue performance across the agencies reveals a 92 per cent increase. The increase in revenue performance has largely been due to a 10 per cent increase in the number of vessels calling at our ports due to strategic investments in port infrastructure in the last one year; mooring boats, patrol vessels and dredging of the ports’ channels,” he added.

Also, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the government of President Bola Tinubu was not responsible for the economic conditions that led to the shutdown of about 800 companies in 2023.

In a statement on Tuesday, Edun’s explanation was coming on the heels of an earlreport in February by the Manufacturing Association of Nigeria (MAN) indicating that about 767 manufacturing companies shut down operations in Nigeria in 2023.

In addition, the association noted that another 335 companies were in distress financially in the same year.

Edun explained that the departure of the companies from Nigeria’s economic landscape did not happen overnight; but that factors like market instability, unfulfilled promises and breaches of contract forced them out.

He added that the issues were currently being addressed by the current administration.

He explained that, “Our government inherited the assets and liabilities of the previous administration. The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more.

“The conditions which sent them packing are no more. Those conditions were a foreign exchange market that was in no way fit for business where there was no liquidity.

“They were the general economic regime marked by instability, broken promises, lack of adherence to contract and so on.

“The new environment which investors face is one in which inflation is being attacked which will eventually lead to lower interest rates where investors can use the very vibrant domestic market to add their own equities and invest.”

We expect $7bn investment in oil & gas sector

Edun also disclosed that the oil and gas sector received approximately $7bn investment pledge due to the new incentive frameworks introduced by President Bola Tinubu’s administration.

He said that the investment had been dormant for years, awaiting the appropriate economic conditions for inflow.

He also highlighted the CNG-fueled conversion programme as part of the administration’s policy framework to drive growth.

He said, “CNG is a government policy not just for vehicles, but for generators. They have to be either CNG-fueled or solar-based or electric vehicles.

“That is the new incentive structure. And it continues also in the oil and gas sector. There has just been a new set of incentives that are encouraging new investments.

“We expect $7bn worth of investments that have been sitting on the sidelines to now come in.

“A stable, growing economy attracts investment that increases productivity, grows the economy further, creates jobs and reduces poverty. That is the trajectory that Nigeria is now on.”

Nigeria’s economy recording positive growth

The minister also disclosed that Nigeria’s economy was returning to the path of positive growth with a Gross Domestic Product (GDP) growth rate of 2.98 per cent in the Q1 of 2024.

He said the 2.98 per cent growth rate was higher than last year’s GDP growth rate of 2.31 per cent.

Speaking on interventions of the government in the last one year, he said, “Efforts have been made to improve food security, with N200bn allocated to programmes.

“Also, access to credit has also been improved, with N100bn allocated to consumer credit and grants of N50,000 being given to one million nano industries.”

Nigeria attracted $3.5bn investment to textile industry in 1 year – Industry minister

The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, said the federal government has secured $3.5bn in investments to enhance Nigeria’s textile, cotton and apparel sector in one year.

She said the investment was part of the ministry’s initiative to rejuvenate the long-dormant textile industry.

Similarly, the minister highlighted that, “Over 16,000 jobs have been created in the past year, through programmes and interventions by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Such programmes include the National Business Skills Development Initiative (NBSDI), Conditional Grant Scheme (CGS) and General Enterprise Development Training (GEDT).”

She noted that, “The federal government, under the auspices of the ministry, generated N430m in the first quarter of 2024 from the Lagos International Trade Fair Complex, which is significantly more compared to the N17.9m accrued in the same period in the previous year.”

Economy

Naira Nosedives Further in parallel market

Published

3 days ago

September 14, 2024

Kayode Sanni-Arewa

The Naira continued its downward trend on Friday, depreciating to N1,660 per dollar in the parallel market.

This represents a slight decline from the N1,655 per dollar traded on Thursday.

In a similar vein, the Naira depreciated to N1,546.41 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday. According to data from FMDQ, the indicative exchange rate for NAFEM fell from N1,649.76 per dollar on Thursday, indicating a marginal appreciation of N103.35 for the Naira.

However, the gap between the parallel market and NAFEM rates widened significantly, increasing to N113.59 per dollar from N5.24 per dollar the previous day. This growing disparity highlights the ongoing instability in the foreign exchange market.

Economy

FCT, Ogun, Lagos receive 1,000 CNG kits

Published

3 days ago

September 14, 2024

Kayode Sanni-Arewa

The Federal Government says it has commenced distribution of fresh Compressed Natural Gas kits to some states of the federation in its drive to foster rapid adoption of CNG.

This was disclosed Friday by an official of the Presidential Compressed Natural Gas Initiative, Moses Onate, during an inspection of the CNG kit warehouse located in Ibafo, along the Lagos-Ibadan Expressway, Ogun State.

With the hike in fuel prices, many drivers claimed they have been struggling to keep their businesses afloat.

The exercise, which the Federal Government said could reduce the cost of transportation by over 40 per cent started in Abuja and Lagos.

Speaking on the distribution Onate noted that states like Lagos, Oyo, Kaduna, Ogun and the FCT would be getting 1,000 conversion kits to continue the conversion initiative.

Onate added that of the 1,000 kits made available to the warehouse, 450 have been distributed to Kaduna and Abuja while 550 would be distributed to Lagos, Ogun and Oyo.

He said, “As of this morning, 450 have gone out to Kaduna and Abuja. 550 will be going to Lagos, Oyo, and Ogun states today.”

He also said the FG had not got any negative feedback on the kits distributed previously.

According to him, there are up to 10 CNG conversion centres in Lagos State alone.

“This initiative will seriously help people as regards the cost in the sense that fuel is around a thousand naira now, but CNG is around N210/N230.

“The gross margin between what fuel is being sold for and CNG price will have a lot of positive impact on everybody. We will live to enjoy CNG,” he said.

In his reaction, a pipeline engineer at the warehouse, Austin Nwaodhu, urged motorists and vehicle owners to adopt the CNG initiative stressing that it offers a cheaper alternative to fuel because of its low consumption rate, and user-friendliness.

He added that CNG did not emit much fumes into the atmosphere which could cause harm to members of the public.

“CNG is a good initiative by the president that will help to bring down the cost of running a vehicle compared to petrol. It will bring down the cost of running our cars.

“It is friendly to the environment and does not emit fumes unlike petrol,” Nwaodhu stressed.

Economy

Petrol Price Unveiled As Dangote Refinery Begins Supply in Nigeria on September 15

Published

3 days ago

September 14, 2024

Kayode Sanni-Arewa

The much-anticipated arrival of Premium Motor Spirit (PMS), better known as petrol, from Dangote Refinery is set to take place on Sunday, September 15. According to sources cited by Businessday, the Lagos-based refinery is prepared to commence distribution of its refined petrol to marketers across Nigeria.

In preparation for the launch, marketers have been advised to dispatch their trucks to the refinery today (Friday) for loading. This significant initiative is expected to bolster the country’s fuel supply, reduce dependence on imports, and alleviate the existing challenges faced by consumers.

Despite the imminent entry of Dangote’s petrol into the market, Naija News reports that fuel prices are expected to remain stable for the time being. Initially, Dangote Refinery plans to supply 25 million litres of petrol daily through the Nigeria National Petroleum Company (NNPC) Trading Limited.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed readiness to procure PMS from Dangote Refinery, provided that the price is lower than their current acquisition costs. IPMAN President Abubakar Maigandi stated that members are keen to explore purchasing arrangements but await clarity on Dangote’s pricing structure.

“After a meeting with our members today, we are ready to buy petrol from Dangote Refinery as long as the price remains competitive,” Maigandi explained. He noted that NNPCL, the sole importer of petrol, currently sells to marketers at an average price of N875 per liter. Consequently, petrol is sold at N930 to N940 depending on sourcing conditions, with a depot price of up to N990 per liter.

Maigandi emphasized that if Dangote Refinery offers a more attractive price, there is no reason for marketers to avoid its products. “We have no issue with Dangote Refinery,” he affirmed.

This statement follows comments from Edwin Devakumar, Vice President of Dangote Industries Limited, who suggested that local petroleum marketers are hesitating to purchase from the refinery despite competitive pricing. During an X space session hosted by Nairametrics, he claimed that only 3 percent of local marketers have shown interest in the new petrol from Dangote.

As the launch date approaches, all eyes will be on the impact of Dangote’s petrol on the Nigerian fuel market and the potential shift in purchasing habits among local marketers.