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Nigeria’s Brent crude crosses $72 mark, production hits 1.81mbpd

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crude oil

Nigeria’s Brent crude crosses $72 mark, production hits 1.81mbpd

 

Nigeria’s Bonny Light crude oil price touched it’s highest since 2014 at the weekend, supported by Organisation of the Petroleum Exporting Countries (OPEC) led production cuts, and the likelihood of the United States taking military action in Syria increases.

Besides, Nigeria’s crude oil production increased from 1.792mbpd in February to 1.810 mbpd in March.OPEC and allies including Russia are keeping crude oil supply limits in place in 2018, to reduce a price-denting glut of oil held in inventories.

Also, the United State pledged recently that missiles would be fired at Syria and this is said to have threatened crude oil supply level thereby leading to higher oil prices.

Nigeria’s Bonny Light attained its highest level at $72.73 a barrel, a little lower than Brent crude oil, which sold for $72.58 per barrels during the trading hours on Friday.

Bonny Light oil is a high grade of Nigerian crude oil produced in the Niger Delta basin and named after the prolific region around the city of Bonny.

The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent.

The United States West Texas Intermediate (WTI) crude oil also hits $67.39 per barrel at the weekend.In March, the OPEC Reference Basket (ORB) increased by less than 0.5 percent to $63.76 per barrel.

Oil futures ended about one percent higher in a relatively volatile month, following US equity market movements and supported by robust oil demand growth forecasts, tightening US crude stocks and geopolitical tensions.

For the month, the Dubai structure flipped back into contango, while Brent and WTI structure remained in backwardation, albeit at a reduced level before the latest price surge.

OPEC crude oil production dropped by over 201,000 barrels per day in March over the previous months, while production mainly decreased in Angola, Venezuela, Algeria and Saudi Arabia.

This OPEC said has been partially offset by higher production in the United Arab Emirates, according to the organization’s latest crude oil report.

OPEC expects the demand for its crude oil to be at 32.6 million barrels per day (bpd), 0.3 mbpd lower than in 2017.

Speaking recently on the efforts of OPEC toward price stability, OPEC Secretary General, Mohammad Sanusi Barkindo said that the global energy system is undergoing significant and speedy changes and becoming progressively complex.

He stated: “Our economies are increasingly interwoven. We must build on our common ground to face upcoming challenges together, strive for sustainable market stability and safeguard future energy security through our ongoing effective cooperation.

The irreversible forces of globalization will continue to shape this energy transition.

“We have, through the Declaration of Cooperation, which has become a permanent feature on the global energy scene, established a new framework for producing countries, taking into account the strategic interests of consumer countries as well as the world economy.”

Minister of Petroleum Resources, Dr. Ibe Kachikwu urged OPEC countries to work hard and become least-cost oil producer, saying that if shale oil can produce and sell at $65 per barrel, there was absolutely no reason why Nigeria and other OPEC members’ country should be struggling.

He said: “Shale is going to active. We know that whenever we are in excess of $65 per barrel, shale gets very active because the fundamentals become much more supportive of more investments and more production lines.”

Customs Corner

Chairman House Committee on Customs and Excise Inspects NCS Facilities in Abuja

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Commends CGC Adeniyi’s Tremendous Leadership Skills

Author: Abra Iruoghene.

The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, took the Chairman House Committee on Customs and Excise on an oversight visit to Customs Facilities at the Federal Capital Territory on Wednesday, 15 July 2024.

Represented by the Deputy Comptroller-General of Customs and Commander, Training and Doctrine Command, Gwagwalada, Suleiman Bomai, the Comptroller-General of Customs, Adewale Adeniyi, extended his appreciation to the House Committee on Customs and Excise for their continuous support and dedication to NCS.

Speaking further, Adeniyi disclosed the importance of collaboration between the legislative and the executive arms of government. He said, “NCS has a remarkable way of achieving its objective by equipping officers with the necessary skills and knowledge to meet the economic challenges of Customs administration in the twenty-first century. The Command and Staff College, Gwagwalada, is committed to providing world-class training and professional development for our personnel”.

He said, “The students of the College have witnessed firsthand education and professionalism. NCS has also made impeccable strides by enhancing their personnel capacity in securing the nation’s border, facilitating legitimate trade and generating revenue for the national economy. ”

Bashir described the Chairman’s tour of the facilities, which includes the new NCS’ Cooperate Headquarters, Customs Hospital, Karu, NCS Federal Capital Territory command, Customs Technical Hanger Services Limited, NCS Hotel and Nigeria Customs Command and Staff College, Gwagwalada, as one that will be remembered and cherished by the Service.

The Commandant of the Command and Staff College, Gwagwalada, Assistant Comptroller General of Customs Kingsley Egwuh, said 1,500 officers of junior and senior staff courses have graduated since the college’s inception. He stated the College has also produced 96 members of directing staff who attended the Senior Course and were exemplary in learning and character and were retained as lecturers in the College for two years.

He highlighted that the College has successfully posted and facilitated various programmes and workshops, which include the Time Release Study, Advance Ruling, Operation Whirlwind and many others.

Furthermore, Comptroller Olu Adebisi, the Customs Area Controller, Federal Capital Territory (FCT), Area Command, during the visit, revealed that the Command had surpassed their ‘half of the year’ revenue target of 6 billion naira and was able to bring some manufacturers under excise control.

The Chairman House Committee on Customs and Excise, Hon. Leke Abejide, applauded CGC Bashir for his immense leadership skills and his achievements within a short period of time,

He said, “Customs is well organised and disciplined, the professionalism and Corporate Social Responsibility shown in the hospital is amazing. We are making provisions for Customs’ Primary Healthcare Centers to be built nationwide. Also, two years from now, NCS will have a University”. He added.

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Customs Corner

Customs MMAC Generates N80.35B Revenue in 6 Months

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Author: Lucy Nyambi

 

The Nigeria Customs Service, Murtala Muhammed Airport Command (MMAC), has generated revenue to the tune of N80,351,299,068.00 between the period of January to June 2024.

The Customs Area Controller (CAC), Comptroller Michael Awe, during a press briefing at the command on Tuesday, 23 July 2024, said the revenue collected depicts a 107.5% increase.

 

In his words, “The Command from January to June 2024 was able to collect a total duty of Eighty Billion, Three hundred and Fifty-One Million, Two Hundred and Ninety-Nine Thousand and Sixty Eight Naira Only (N80,351,299,068.00) on Customs duty and other charges.”

“In comparison to the revenue collected in the same period in 2023, the revenue stood at Thirty-Eight Billion, Seven Hundred and Seven Million, Fifty-four Thousand, Two Hundred and Sixteen Naira, Forty Four Kobo only (N38,707,054,216.44). This clearly shows a progressive difference of Forty-One Billion, Six Hundred and Forty-Four Million, Two Hundred and Forty-Six Thousand, Eight Hundred and Fifty Naira, Fifty Six Kobo only (N41,644,246,851.56) depicting 107.5% increase”, the CAC explained.

 

According to Comptroller Awe, the difference recorded was made possible as a result of the resilience of officers in ensuring that agents were made to make proper declarations and to adhere strictly to import/export guidelines in tandem with extant laws.

 

On Anti-Smuggling, the CAC stated that officers and men of the command are not resting on their oars in enforcing government fiscal policies and trade regulations as seizures of illicit drugs, arms and ammunition, among other contraband items with a Duty Paid Value (DPV) of N6,064,987,480.27 were recorded.

 

“The command made the following seizures of 5 packages of 250mgs of Tramadol, 12 packages of 225mg of Tramadol, 1 package of fifty round 9mm live ammunition, 46 packages of dried sea cucumbers, 3 packages of dried donkey male genitals, 55 pieces of Jojef Tomahawk semi-automatic rifles.”

 

“These items were seized mainly because of various forms of infractions which range from false declarations, non-adherence to import/export guidelines and failure to comply with other extant regulations as enshrined in the Nigeria Customs Service Act (NCS Act) 2023”, he explained.

 

Speaking further, the CAC said the Command also recorded the export of goods worth N266,655,113.66K within the period under review, with an FOB value of $204,597.07.

 

The Customs Area Controller reiterated the Command’s commitment to sustain and improve upon revenue generation in the second half of 2024.

 

Comptroller Awe sought the continuous cooperation of all stakeholders and assured them of the Command’s commitment to promoting ease of doing business and trade facilitation.

 

He appreciated the Officers and Men of the Command for their dedication to the noble course of combating smuggling. He encouraged them to always adhere strictly to the rules of engagements while discharging their statutory duties.

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Customs Corner

Nigeria Customs Poised for Increased Economic Activities at Lagos Free Trade Zones

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…As LFTZ Command Records N138B in 6 months

Author: Lucy Nyambi.

The Nigeria Customs Service has expressed its readiness to handle Increased Economic Activities at the free zones in Lagos, as well as the Lekki Deep Sea Port.

Speaking during his familiarisation tour of the Lekki port and the free zones on Monday, 22 July 2024, the Zonal Coordinator Zone ‘A’, ACG Saidu Yusuf, said the service is well equipped to cover more economic terrains.

His words, “This is the future in Nigeria because what we are seeing is going to translate into a huge factor in the Nigerian economy. A lot of activities are happening here, and I am sure we are expecting more activities as well.”

“Infrastructure is being developed, and for us in Customs, we are very ready with our capacity building, and with the calibre of officers we have on the ground, I think we are up to our game to receive more factories and to cover more activities in the zone”, ACG Yusuf stated.

The Zonal Coordinator also visited the Lagos Free Trade Zone Command. He expressed delight at the level of improvement by officers and men of the command in barely 3 years of operation.

“I must confess that I’m really impressed with what I have seen today in the Command, it means the officers are really working, and what we need to do is to encourage them, just like has been done by the Comptroller-General of Customs (CGC), Adewale Adeniyi, has been rolling out procedures and tools for the smooth operation of customs procedures. I’m sure by the time all the tools are fully operational, this command will come up very well in terms of revenue.”

The Customs Area Controller (CAC) Comptroller Olanrewaju Olumoh appreciated the Zonal Coordinator’s visit while also acknowledging the performance of the command since his assumption.

The CAC stated that he and his team have been upholding the core values of professionalism and integrity and doing remarkably well in revenue generation. “In the area of revenue, from January 2024 till date, the command has generated the cumulative sum of N138,179,207,744.00 as against the sum of N28 billion generated in the same period last year.”

Comptroller Olumoh noted that the revenue collected represents a 393.4% increase and expressed optimism about meeting and surpassing the Command’s target.

Stating further, Olumoh said though the command remains user-friendly, it remains committed to ensuring that illicit and harmful items do not enter the country through the Lekki Port. “Our officers conduct comprehensive physical inspection because we are very much committed to ensuring that no unscrupulous elements will bring in illicit or harmful items into the country through the Lekki port.”

In line with the desire of the CGC Adeniyi to have a very healthy workforce, the Zonal Coordinator commissioned a clinic set up by the Command within the office premises for officers to have easy access to first aid attention.

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