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Senegal seeks Nigeria’s support to develop oil, gas sector

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Timipre Sylva, Minister of State for Petroleum Resources
Timipre Sylva, Minister of State for Petroleum Resources
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The Minister of State for Petroleum Resources, Timpre Sylva, has commended the effort of the Senegalese government in seeking Nigeria’s support for the development of its oil and gas sector.

Sylva gave the commendation while receiving the Senegalese Energy Minister, Aissitou Sophie Gladima and her delegation, in Abuja, on Monday.

He said that Africa needed to come together and work to support development in the region and reduce over dependence on foreigners for growth.

“I want to use this opportunity to welcome you, as I said, it is important for us as a region to come together because as they say, you have to say yes before someone from outside says yes to you.

“We as Africans must come together to work together in order to chat way forward; we cannot continue to depend on Europe and the outside world.

“In fact, it has been proven that they cannot be responsible for our development, we have to take full responsibility of our development and that is why we are very happy that you are here today,’’ he said

Sylva said that Nigeria had some advantage as country that has being in the oil and gas sector for a very long time and had learnt a lot of lessons and made some mistakes too.

He said that oil production activities started in Nigeria in 1937 but commercial discovery was made in 1950s, adding that first commercial discovery was made in 1956 and first cargo of crude left Nigeria in 1958.

“That means that we have been effectively in oil production for over 60 years, that is some kind of advantage and of course a lot of lessons have been learnt .

“When we started production activities in Nigeria,we were completely spectators, every position was occupied by expatriates, our communities were just on lookers to the activities but since then a lot has happened.

“It has been a lot of capacity development in Nigeria and today significant percentage of Nigeria’s crude is being produced by Nigerian companies.

“And also, the Nigerian involvement in  the IOCs have increased very significantly to the extent that some of them have Nigerians as their Managing Directors  in their Nigeria subsidiaries, like the chairman of Shell is a Nigerian,’’ he said

He said that Nigeria had grown a global NLNG company that is wholly Nigeria where from MD to the least staff are Nigerians, adding that Nigeria was in position to impact some of the experience to other African countries.

On local content, he said that Nigeria had grown its local content from three per cent in the past 10 years to about 43 per cent and target to grow it to 70 per cent by 2027.

“We are very committed to this because that is the only way to domicile the benefit of oil; if  you are producing oil and all the benefits are going out of the country and nobody is participating in the country, you will not get the benefits.

“One of the benefits of the oil and gas production is to make sure that wealth is domiciled in the country,’’ he said

He further said that as activities had just started in Senegal oil and gas sector, it was the best time to incorporate some of the Nigerian experience to help them develop efficiently and contribute to economic growth of their country.

He assured that Nigeria would support the Senegal energy sector to grow and urged the country to join the African Petroleum Producers Organisation (APPO).

In her remarks, Gladima thanked the minister for the hospitality and said that the country had longed to partner with Nigeria to gain from its wealth of experience in the oil and gas sector.

She said that Nigeria’s over 50 years of oil production was an excellent example for Senegal as it is beginning to grow its own industry.

He said that the country would like Nigeria to support her in four areas of security management in the oil and gas, National Oil Company (NOC) Organsation, local content regulation and NOC strategies.

She expressed interest to join APPO to help the development of the sector in Senegal (NAN)

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President Buhari transmits Business Facilitation bill to N’Assembly

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President Muhammadu Buhari
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The Senate has received the Business Facilitation (Miscellaneous Provisions) Bill 2022, forwarded to the National Assembly by President Muhammadu Buhari, for consideration and passage.

The bill was accompanied by a letter dated 17th June, 2022.

The letter, addressed to the Senate President, Ahmad Lawan, was read during plenary on Tuesday.

President Buhari, in the letter, explained that the expeditious consideration and passage of the bill would promote the ease of doing business in Nigeria.

It reads, “Pursuant to Sections 58(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), I forward herewith the Business Facilitation (Miscellaneous Provision) Bill 2022 for the kind consideration of the Senate.

“Business Facilitation (Miscellaneous Provision) Bill 2022 seeks to promote the war of doing business in Nigeria by amending relevant legislation.

“While hoping that this submission will receive the usual expeditious consideration of the Senate, please accept, Distinguished Senate President, the assurances of my highest consideration.”

 

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N5 trillion urgently needed to cushion effects double digits increase on ordinary Nigerians – World Bank

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The World Bank has warned that Nigeria could lose about N5trillion in 2022 from gasoline subsidies.

The bank also said that N5 trillion is urgently needed to cushion ordinary Nigerians from the crushing effect of double-digit increases in the cost of basic commodities.

The World Bank said in it Nigeria Development Update (NDU) released on Tuesday in Abuja.

The report said: “When we launched our previous Nigeria Development Update in November 2021, we estimated that Nigeria could stand to lose more than N3 trillion in revenues in 2022 because the proceeds from crude oil sales, instead of going to the federation account, would be used to cover the rising cost of gasoline subsidies that mostly benefit the rich”.

World Bank Country Director for Nigeria Shubham Chaudhuri, however noted: “Sadly, that projection turned out to be optimistic. With oil prices going up significantly, and with it, the price of imported gasoline, we now estimate that the foregone revenues as a result of gasoline subsidies will be closer to 5 trillion Naira in 2022.

“N5 trillion is urgently needed to cushion ordinary Nigerians from the crushing effect of double-digit increases in the cost of basic commodities, to invest in Nigeria’s children and youth, and in the infrastructure needed for private businesses small and large to flourish, grow and create jobs.”

The report noted: “Nigeria is in a paradoxical situation: growth prospects have improved compared to six months ago but inflationary and fiscal pressures have increased considerably, leaving the economy much more vulnerable”.

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Nigeria’s banking sector now immune to economic shock – NDIC

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Nigeria Deposit Insurance Corporation (NDIC) has said that the banking sector is now immunized to withstand shocks that may impact the economy and the financial system.

Mr Bello Hassan, Managing Director of NDIC said this at a retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions with the NDIC, in Lagos.

Any change in fundamental macroeconomic variables or relationships that has a significant impact on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation, is referred to as an economic shock.

Mustapha Ibrahim, Executive Director (Operations), who represented the NDIC boss, said Nigerian banking industry was currently resilient to most of these difficulties, particularly external shocks over which the Corporation had no control.

He said: “We have tried to immunise the system to withstand shocks that may be impacting on the economy and the financial system”.

Hassan, further said that effective risk-based management remained critical to a safe and sound financial system.

“The NDIC and the Central Bank of Nigeria have a very robust supervisory framework under the risk-based supervisory format the risk-based approach is actually proactive. For the most part, we try to anticipate all these risks – Macro, micro, domestically and globally – to address them continuously.

“So, it is so dynamic that we also are constantly on a real-time basis, monitoring the industry continuously and fine-tuning our supervisory tools, both onsite and offsite, to mitigate some of the challenges the banks may be facing,” he said.

On his part, Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, said the retreat demonstrated progress in creating lasting and workable relationships in the national interest.

Sani, who was represented by Senator Olubunmi Adetunbi, was optimistic that the outcome will aid in the strengthening of the financial and banking sectors, particularly the corporation’s supervisory and regulatory role.

“The National Assembly and NDIC are key institutions critical to the growth and development of the Nigerian economy. While we provide the legal and institutional frameworks, NDIC carries out its regulatory or supervisory responsibilities in order to safeguard the banking sector.

“Engagement of this nature gives us the platform to deeply look into our activities and responsibilities and also examine how far we have gone in carrying out our mandate as required. It helps in injecting fresh ideas into our operations which will materialise into an improved, effective and efficient service delivery to Nigerians,” he said.

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