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Nigeria Oil Firm Records Lowest in 18 Years, Drops to $19.71/b

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Nigeria Oil Firm Records Lowest in 18 Years, Drops to $19.71/b

Nigeria’s Brent Crude has dropped by nearly $12 per barrel to cline at $19.71 per barrel

Nigeria’s economy was dealt a huge blow as Brent crude, the international and Nigeria’s benchmark, tumbled by nearly $12 per barrel to decline at $19.71 per barrel.

According to Daily Trust, the drop in the Brent crude price forecasted a terrible economic outlook for many countries as Nigeria is not safe from the economic recession which is looming after oil price fell below $20 per barrel globally.

The fall is the lowest level since oil futures trading began in 1983 as the economic crisis set off by the coronavirus pandemic continues to take a toll on the energy sector.

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Before the development, Nigeria which depends on oil for 80% of its revenue, had the foresight of raking 90 per cent of this year foreign exchange earnings from crude oil sales.

brent crude oilBut since the oil price tumble, the Minister of Finance, Budget and National Planning, Zainab Ahmed, announced a cut in crude oil benchmark price down to $30 per barrel. The minister, though retained the 2.18m barrels per day crude oil production as earlier projected in the budget estimates.

Meanwhile, it was earlier reported that Mele Kyari, the group managing director of the NNPC, has said the slump in the US crude oil futures below $0 per barrel is not a reflection of the reality in the global oil market capable of impacting Nigeria’s oil production.

GMD of NNPC who spoke with told Premium Times on Tuesday, April 21, stated that Nigeria has no cause to be apprehensive. He said the current position in the U.S market, does not have any direct impact on the price of the Brent crude oil blend, which rose to about $28 per barrel before dropping to the current price of to $26.24 a barrel.

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Business Africa

Nigeria to Become Petroleum Product Refining Hub, Minister Says

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The Federal Government has said it will leverage the opportunities provided by the African Continental Free Trade Area Agreement to reposition the oil and gas sector in other transform the country into a petroleum products refining hub for the African region

 

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this at the AfCFTA Oil and Gas Virtual Workshop, with the theme: “Nigeria – Africa’s Refining and Services Hub under the AfCFTA.

 

Represented by Bitrus Nabasu, the permanent secretary Ministry of Industry, Trade and Investment, Sylva said Nigeria had approved the AfCFTA, which would begin implementation in January 2021.

 

According to him, the African Continental Free Trade Area Agreement aims to redefine trade relations between African states while enabling free movement of people and investments

 

Sylva also added that the government was also committed to deepening gas utilization as seen in its National Gas Expansion Programme and the Auto Gas Scheme.

 

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Business Africa

Nigeria to Strengthen Economic Cooperation With Algeria Says President Buhari

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President Muhammadu Buhari has reassured of Nigeria’s commitment to stronger economic cooperation with the republic of Algeria in various critical areas.

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The President restated the commitment on Thursday when he received the Algerian foreign affairs minister, and special envoy of the Algerian president, Sabri Boukadoum, in the Aso rock presidential villa in Abuja.

According to a statement issued by special adviser to the President on Media and Publicity, Femi Adesina, the president said projects like the Trans-Sahara road, international gas pipelines, and other areas of economic cooperation would be given adequate attention for the good of the people of the two countries.

Buhari also emphasized the need for peace, tranquility and security in African countries, saying development and growth would depend a lot on how peaceful and secure the continent is.

In his remark, the special envoy said Nigeria was the pillar of Africa, and he had brought messages from his president, for the two countries to explore areas of collaboration.

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Agriculture & Nigerian Economy

We Have to Reduce Oil Production Cost, Says Osinbajo

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Vice-president, prof. Yemi Osinbajo, has said the deal to cut oil production by the organization of petroleum exporting countries and its allies has resulted in lower revenue generation for the federal government.

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The vice-president, who was represented by the minister of state for petroleum resources, Timipre Sylva, said the collapse in crude oil demand due to the covid-19 pandemic caused the recent sudden slump in oil prices.

Osinbajo said on Tuesday that the ministry of petroleum resources had a mandate to drastically reduce the unit cost of crude oil production in the country in order to increase government revenue.

He expressed confidence that the country would achieve the desired goal of finding more hydrocarbon deposits in the Nigerian basins, notwithstanding the curtailment in production.

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