Finance
Nigeria Records Increase in 2018 Crude Oil Production
A Massive 9% Crude Oil Production Increment, Compared to 2017 – By NNPC Director
On Crude Oil Production Increment – Nigeria’s crude oil daily production recorded an upward swing of about 2.09 million bbls in outgone 2018, translating to a 9% increment, compared with the 2017 average daily production of 1.86 million bbls.
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Dr. Maikanti Baru – NNPC Group
Pitched against the low-level daily crude oil production in 2016 and what obtains now, Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, said the nation had maintained a line of consistent year-on-year improvement.
For the crude oil increment and other milestones recorded by NNPC in the outgone 2018, Dr. Baru, who made the submission in a comprehensive end of year message to staff of the corporation, touted the new business models his team has emplaced in the national oil company’s old and new business entitles as raison d’être for the giant strides.
A release in Abuja by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said the Nigerian Petroleum Development Company (NPDC), Nigerian Gas Company (NGC), Petroleum Products Marketing Company (PPMC), Duke Oil, NIDAS and Integrated Data Services Limited (IDSL), were among the re-engineered companies listed by the NNPC GMD in his statement.
READ ON CRUDE OIL PRODUCTION INCREMENT BY 9%
Ughamadu said Dr. Baru singled out NPDC, the corporation’s upstream flagship company, as the major contributor to the industry’s success story in 2018, expressing enthusiasm on the 52% daily crude oil production growth by the company vis-à-vis its 2017 performance.
Dr. Baru in the end-of-year statement explained that the average production from NPDC’s operated assets alone grew from an average of 108 000 bpd of oil in 2017 to 165 000 bpd in 2018, describing the feat as the strongest production growth within the oil industry in recent times.
The GMD said NPDC’s equity production share which stands at 172 000 bpd, representing about 8% of national daily production, was no less impressive, saying the desired results are outcomes of initiatives his Management team emplaced, among which, he noted, are the asset management tea (AMT) structure, strategic financing, units autonomy and security architecture framework.
Of the industry milestones in 2018, Dr. Baru described the 200 000 bpd addition which the Egina Floating Production Storage and Offloading (FPSO) – completed and sailed away to location in August last year – added to nation’s daily production, even as he disclosed that the project achieved first oil on 29 December 2018.
In the midstream, the NNPC GMD stated that in 2018, Nigeria achieved an average national daily gas production of 7.90 billion ft3, equating to 3% above the 2017 average daily gas production of 7.67 billion ft3.
He said out of the 7.90 billion ft3 produced in 2018, an average of 3.32 billion ft3/d (42%) was supplied to the export market, 2.5 billion ft3/d (32%) for reinjection/fuel gas, 1.3 billion ft3/d (16%) was supplied to the domestic market and about 783 million ft3/d (10%) was flared.
The GMD stated that out of the 1.3 billion ft3/d supplied to the domestic market, an average of 71 million ft3/d went to the power sector, while 470 million ft3/d was supplied to the industries and the balance of 69 million ft3 delivered to the West African market through the West African Gas Pipeline (WAGP).
Dr. Baru said all existing power plants in the country now had a permanent gas supply pipeline infrastructure, even as he stressed that the corporation would continue to expand and integrate its gas pipeline network system to meet increasing domestic gas demand.
He listed key gas pipeline infrastructure projects on which, he noted, significant progress had been made in their execution to include: Escravos-Lagos Pipeline System (ELPS II), Obiafu/Obrikom-Oben (OB3), Odidi-Warri Expansion Pipeline (OWEP), Trans Nigeria Pipeline Project (TNGP) – Ajaokuta-Kaduan-Kano (AKK) Pipeline, Trans Nigeria Pipeline Project (TNGP) and Nigeria-Morocco Gas Pipeline (NGMP) Project.
In the midstream refinery sub-sector, Dr. Baru regretted that the nation’s three refineries had not undergone turn around maintenance (TAM) for an aggregate of 42 years combined. Despite the challenge, he explained that major rehabilitation works were carried out in all the three refineries.
He noted that efforts were afoot to get the original builders of the refineries to carry out TAM on them after securing favourable private funding for the exercise.
“We are currently planning for a better performance and achievement in 2019 especially with the continuous innovations and creativity in the downstream sector and the performance bond signed by all the relevant heads of our operating units. Continuous improvement as one of the principles of world class organisations is going to remain our key word in 2019. 2018 was empirically better than 2017, we believe, plan and strive to achieve a better performance come 2019″, Dr. Baru concluded in his end-of-year statement.
Author: Eunice Johnson, Abuja
President of the African Development bank, Dr. Akinwumi Adesina, has announced that the bank has secured 15.6bn dollars for the construction of the Lagos-Abidjan highway corridor, which would ease transportation across West Africa.
Adesina made this announcement during the 2021 Africa Investment Forum’s virtual boardroom closing session on Thursday.
The AFDB President said the 15.6bn dollar deal which is the biggest deal for the boardroom is a 46-lane highway corridor which will connect Lagos, Cotonou, Lome, Accra and Abidjan.
According to him, the project would support trade in West Africa, impacting the lives of over 500 million people, reducing transport costs and increasing intra-regional trade volume.
The bank will also be establishing a 1m dollars AFAWA women advisory facility to support women with advisory services.
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Author: Gift Wada, Abuja
THE Debt Management Office on Thursday said Nigeria’s total public debt stock increased to N39.56tn in 2021 from N32.92tn in 2020.
The Director-General, DMO, Patience Oniha, said this at a media briefing in Abuja.
According to her, the total debt includes new borrowings by the Federal Government and the sub-nationals.
She also said that the amount helped in financing the budget deficit, capital projects and support economic recovery.
Oniha said, “Nigeria’s total public debt as at December 31, 2021, was N39.56tn or $95.78bn. The amount represents the total external and domestic debts of the Federal Government of Nigeria, 36 state governments and the federal capital territory.
“The comparable figure for December 31, 2020, was N32.92tn or $86.39bn. The public debt stock for December 31, 2021, includes new borrowings by the FGN and the sub-nationals. For the FGN, it would be recalled that the 2021 appropriation and supplementary acts, included total new borrowings (from domestic and external sources) of N5.49tn to part-finance the deficit.
“Borrowings for this purpose and disbursements by the multilateral and bilateral creditors account for a significant portion of the increase in the debt stock. Increases were also recorded in the debt stock of the states and the FCT.”
She further said that despite the debt increase, the country is still within the total public debt stock to the Gross Domestic Product limit of 55 per cent set by the World Bank and 70 per cent set by the Economic Community of West African States.
Oniha also said that the Federal Government was “mindful of the relatively high debt-to-revenue ratio” and has established certain measures to increase revenues through the strategic revenue growth initiative and the introduction of Finance Acts since 2019.
She said, “The new borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, sovereign Sukuk, and the FGN bonds. These capital raisings were utilised to finance capital projects and support economic recovery.
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“With the total public debt stock to GDP as at December 31, 2021, of 22.47 per cent, the debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40 per cent. This ratio is prudent when compared to the 55 per cent limit advised by the World Bank and the International Monetary Fund for countries in Nigeria’s peer group, as well as, the ECOWAS convergence ratio of 70 per cent.”
However, findings showed that Nigeria spent N2.93tn on debt servicing payments in 2021, according to the data obtained from the DMO.
Between January and March 2021, Nigeria spent N612.71bn on domestic debt servicing, while it spent $1bn (N415.92bn) on external debt servicing, giving a total of N1.03tn.
From April to June 2021, the country spent N322.7bn on domestic debt servicing and $299m (N124.36bn) on external debt servicing, showing a total of N447.06bn.
From July to September 2021, Nigeria spent N808.49bn on domestic debt servicing and $520.78m (N216.6bn) on external debt servicing, giving a total of N1.03tn.
Between October and December 2021, Nigeria spent N310.5bn on domestic debt servicing, while it spent $286.35m (N119.1bn) on external debt servicing, giving a total of N429.6bn.
The official exchange rate of the Central Bank of Nigeria, which showed $1 =N415.92 as of March 17, was used for the external debt servicing.
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Nigeria has officially raised 1.25 Billion dollars through the issuance of a seven-year Eurobonds in the International Capital Market (ICM).
The Director-General of the Debt Management Office (DMO), Patience Oniha made this known in a statement on Thursday.
Oniha said that with this feat, Nigeria has become the first African country to access the ICM in 2022.
According to her, the country’s ability to access the Eurobonds at this time was a confirmation of her established presence with the ICM and engagement with investors on a continuous basis.
She said that the proceeds of the bonds would be used to finance the budget and bridge infrastructural deficits.
“The offer was launched at an initial price thought of 8.75 per cent per annum and on the back of strong investor demand, Nigeria was able to reverse the price guidance to 8.5 per cent per annum.
“The order book continued to grow, reaching a peak of four billion dollars,” she said.
She said that the order book included many quality investors in the U.S., Europe and Asia.
“With this strong investor interest the price was tightened at 8.37 per cent per annum, the order book still remained high at 3.67 billion dollars and still retained quality investors,” she said.
She said that Nigerian investors also participated in the offer with a total subscription of 60 million dollars.
She added that the Eurobonds would also strengthen economic recovery and contribute directly and in full to the level of Nigeria’s External Reserves.
Reports Show that the DMO had earlier on Thursday revealed that Nigeria ’s ’total debt stock as at December 2021 was N39.55 trillion.
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