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The Economy Needs the Boost

Some probably haven’t considered how the economy may need the boast meaning that there needs to be some gigantic talk regarding “the economy” so that the economy receives the attention the economy truly needs. To speak and to act meaning to take action to be apart of movements which will add value to the economical system. There needs to be some big shot communications so that there will be in a rise in revenue. “Actions will generate the necessary excelling which will create a more stabilized society.” (Tanikka Paulk). The increase is certainly needed perhaps there are some turning away the needy because of their snobbish ways. I’d rather try to assist with building a stronger economy and help lower the homelessness rate then to demonstrate the riches.

Some only talk but never assist with building. There are more tearing down instead of building up. To laugh at the poor or less fortunate meaning is the individuals are ignorant. The poor have assisted more with helping to create a stronger economy. The wealth will allow communities to experience developments which will attract the tourists. “Whom ever thinks that they’re so rich that they can look down on the poor will have difficulties fitting into the socialism connections which can help build their businesses.” By: Tanikka Paulk. The person or persons willing to communicate effectively regarding the prosperity will create what so many desire to see.

More revenue will assist students wanting to gain a brighter future. There are lots of needs but how many are willing to assist. The talking may occur but there has to be more. There are more concerned about what a person may gain instead of being concerned about restoring. There’s more to “building” than building self to expand further will assist families but how many have considered how to assist? There certainly needs to be more unification. There seems to be distractions but where are the leaders willing to create advancement?

There are hecklers but the leadership will continue to create more jobs, increase revenue so that communities are revived, there needs to be more homes build for the less fortunate. The homelessness rate will continue if the budgets aren’t “focused” upon. There are complaints but there doesn’t seem to be individuals willing to put their hands together so that there will be ladders. There are ways to get to the top yes there will need to be lots of climbing but through many efforts the economist can achieve. There should be the desire to achieve greater.

When the economy is doing fair there are more happiness. The empty homes need to have residents living in the homes so that the taxes are paid and paid taxes will help increase the revenue so that the educational system also receives an increase. There should be the desire to grow rather than the desire to prevent individuals who are in a position to assist in someway. “Perhaps some try to cause disruptions because they’re without understanding as to how the economy experiences greater.’ (Tanikka Paulk). There are needs and some are too proud to admit to such.

Expand Beyond Measures Incur the Proper “Techniques” in Order to Create Stability. There Needs to be Togetherness so that Society, Countries, Communities are well developed. People will be more cooperative if there needs are met. “There could be more willing to join in if they believe that there will be the necessary changes.”  (Tanikka Paulk). How many are awaiting? I’m going to do my part but how going to do their part? Soon enough there will be modifications so that the community here and there receives what they’ve desired.

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The Importance of Proceeding Revealed

Exactly! It’s very important to proceed because there’s a lot to achieve. If there’s any expectancy to incur a more stabilized economy then there will need to be movements. It seems as though there are some refusing to look at the brighter scope. They’ve caused problems which could result in decreases but when there’s unity there can be more achieved. Although there are some “continuing” to be problematic their actions won’t result in moving backwards. There should be upwards motions occurring. The ability to proceed should be apart of gratefulness. How many are actually grateful to even earn just a little?

The Time of Proceeding is Here

“There is hopefulness and there shall be movements which will help generate more revenue so that there will be stability.” (Tanikka Paulk). Perhaps all will be unwilling to cooperate but there are some wanting to face a better society. Shouldn’t People want to be apart of better living? Perhaps their more concerned about competing. There needs to be additional dollar signs. Increases shall be submitted. “There should be an increase with the Police and Law Enforcement Departments and Agencies.” (Tanikka Paulk) Education certainly needs a boost.

What;s to discover and what will be explored. There should be some information withheld due to so many in tuned with sabotaging. There has to be moves made so that there is protection within the movements. When there are groups of People being challenging then there will need to be strong individuals willing to push further. Proceeding is necessary but how many agree? They’ve tried to disconnect “the journey.” The lies told haven’t caused a cease.

There are some needing to be left behind because they’re not on the same page. Imagine persons continuing to cause problems in order to gain a position or positions. “Sounds as though they’re in tuned with the big takeover huh?” By: Tanikka Paulk. What is ordained will be difficult for individuals to ruin. Yes, there could be some distractions, there could be disagreements but what shall be shall be. There should be focus on getting ahead. Yes, what some try to do can be annoying. There will be the proceeding anyway.

There are groups willing to climb higher so that there can be a stronger country. The ones wanting to disconnect the unified movement aren’t doing themselves any favors. They’ll notice that their actions have created more problems instead of discovering the solutions. The movements are important and strong leadership is just as important. There are some more in tuned with power and that’s why they’ve faced what appears as downfalls. “I’ve explored the necessaries and will continue to do what’s necessary so that the economical system is more refined.’ By: Tanikka Paulk. There are injustices but there are also leaders willing to assist with decreasing the injustices.

Perhaps what’s taking place has caused some to think or perhaps some refuse to think at all. They’ve created their own holes. How many are falling to the pit? There will be “glorious” outlooks. There’s building occurring. The overly competitive have met their match. What God supplied will be implemented on the journey. The ones traveling on the journey have agreed to unify. There will be the continuous march to generate the necessary objectives. Oh yes in deed their are goals to meet.

“”Unifying Like the Rubberband Ball.” (Tanikka Paulk)

 

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The Many Approaches to Leadership

Leadership shouldn’t be taken lightly. There are many leaders but the strongest leader will produce the most. “How does one deal with unruly groups of People and still be an effective leader?” There certainly has to be patience involved. Some have faced some of the toughest challenges the main reason why some choose to become disorderly is because they’re trying to get their way. No leader should have to babysit any person. It seems as though there are more dictators than there are leaders. When it’s time to administer the consequences what will the leader do?

There are some having difficulties accepting the position or positions in which a leader was chosen to fulfill. Perhaps some are wanting to be in the same position and refuse to settle down because they’re thinking that they’ll scare off the leader. “An effective leader will proceed despite persons becoming angry. There will need t be decisions made regarding dealing with individuals.” (Tanikka Paulk) Perhaps ignoring will help but some will need to incur the necessary discipline in order to advance to the next levels. “If any leader expects to be productive then the leader will need to remove what’s decreasing productivity.” By: Tanikka Paulk.

Yes, it appears as though some leaders will have to deal with adult babies. Some behaving as though they’re needing some breastfeeding. When they’re trying to discourage there should be thoughts of advancement. Surrounding self around the visionaries will help. Perhaps there are many lacking confidence or they’re feeling inadequate. There should be focus on the important areas but there will need to be some directing. It’s important to have a voice. To speak on subjects in which will help lower the rate of persons being disorderly.

  1. Be expressive and be stern.
  2. No meaning is no. Adults should know how to behave.
  3. Take action if necessary.
  4. Utilize courage. Yes there should and must be courageous leaders.
  5. Disconnect refuse to accept the disorderly behavior.

There are leaders who have chosen to step down because of the many challenges. There are some willing to test the effectiveness of a leader. They’ll test to see if the leader is fit for the position. “The individuals unwilling to respect the position or positions could become problematic but there are solutions to dealing with such behaviors.” By: Tanikka Paulk. Some probably need to be rehabilitated. Their actions could prove to cause walls to crumble. That’s why it’s necessary to take actions so that the persons don’t cause declines. If they’re refusing to accept then the leader should proceed and team up with the cooperative ones.

There is joyfulness when making progress. “Every person should be approached in a way in which there will be prospering.” (Tanikka Paulk). Some may feel as though they’re underachievers but the leaders aren’t suppose to hold their hands and bottle feed the individuals. There are some wanting power and will try to cause the leader to fall. Be careful when dealing with some of the individuals. There could be some mental issues and perhaps suggesting that the persons find help will be of great benefit.

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Chivita promotes active lifestyle in new campaign

Chivita Active, one of Nigeria’s leading fruit juice brands, has launched a new communication campaign tagged C’mon Get Active. The campaign is designed to inspire consumers to get active and encourage wellness through active health, while reinforcing Chivita Active’s position as a high quality wholesome fruit juice and an enabler for a healthy active life.

Deployed across different communication channels including TV, Radio, Print, etc., the C’mon Get Active campaign aligns with the growing consciousness amongst Nigerians to stay healthy by embarking on a journey of active health. The C’mon Get Active campaign tells stories of ordinary people who in their own special ways say YES to active health, by simple and engaging workouts across various parts of the day.

With the ‘Chivita Active Power of 6 Citrus’ offering already building brand relevance through its positioning for active health.

Tolu Fatusi, a fitness instructor at the National Stadium, Surulere, emphasized the need for Nigerians to embrace a regimen for active health to promote wellness.

MSMEs as the frontier for Nigeria’s economic prosperity

Nigeria used to have a pathetically poor Micro, Small and Medium Enterprises (MSMEs) support structure. Perhaps, in the past, it could pass as one of the worst countries in the world where MSMEs value to national development was only song without concrete actions. Though some progress is being made to support and develop MSMEs with various interventions from the Central Bank of Nigeria (CBN), the Bankers’ Committee, Development Bank of Nigeria (DBN), Bank of Industry (BOI) and other programmes, huge gaps still exist.

To say that Nigeria has no concrete data on MSMEs and the true contributions of the MSMEs to GDP growth trajectory is an aberration.

The Nigeria Bureau of Statistics (NBS) has projected that Nigeria has about 37 million MSMEs but experts say that figure is far from accurate as the NBS only did a hypothetical projection rather than a census of MSMEs in the country. It is the same flawed figures that SMEDAN also uses for its MSMEs planning and development, which hasn’t yielded any significant result.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) was established by the SMEDAN Act of 2003 to promote the development of the MSME sector of the Nigerian economy, a mandate it has largely been unable to achieve due to inadequate funding and lack of requisite capacity.

Dr. Dikko Radda DG/CEO SMEDAN is also worried about the integrity of data on MSMEs. He had given a perspective on the data SMEDAN and everyone else is working with. SMEDAN, he said, started a survey in 2007 with the collaboration of the National Bureau of Statistics (NBS) because of paucity of funds for a census.

The MSMEs policy requires that SMEDAN should generate data on the number of MSMEs every three years. “We conducted in 2010 and in 2013 which is the latest we have. For the 2013, we had 37.76 million MSMEs in Nigeria. Lagos has the highest of 3.9 million and Niger has the lowest of 367,000,” he told newsmen recently.

He also said: “The survey revealed that micro enterprises have about 99 per cent of the total because they have 36,994,000. The small enterprises have about 68,000 and the medium has 4,670.”

From what the SMEDAN CEO said, another survey was due in 2016 but didn’t happen and there are no indications that it would happen anytime soon.

However, recent statistics, according to the MSME Clinic initiative being championed by the office of the Vice President, Prof. Yemi Osinbajo, says Nigeria has about 39 million MSMEs.

Export capability of MSMEs

There is decline in exports because the medium enterprises that have the capability of producing goods for export are not supported.

Data from the CBN showed that Nigeria’s non-oil export earnings have come down by more than $5.9 billion – from $10.35 billion recorded in 2014 to $4.39 billion in 2015.

Besides, credit to non-oil exports sector, which currently is in the decline, only constituted a paltry 0.6 per cent of total domestic credit to the private sector in the past five years.

This figures show the steady decline of medium scale enterprises, which should fuel majority of the non oil exports in Nigeria, as is obtained in other economies around the world.

Worried by the trend, the Managing Director/CEO of Fortis Microfinance Bank, Mr. Tiko Okoye, recently said on the Development Bank of Nigeria (DBN), established recently to support export oriented Micro, Small and Medium Scale Enterprises (MSMEs), that there are many SMEs that are export oriented across the country which if supported, will grow capacity and price for export and thus help the country earn more foreign exchange.

Growing MSMEs base

Experts have suggested that MSMEs should get Tax and levies break as an incentive to spur growth among the MSMEs. The break should be used as a bait for enticing MSMEs to register so that government can have a more credible and workable data. With credible data, government and other stockholders can target the SMEs directly rather than the current trial and error approach. The impact would be more direct and devoid of wasted efforts.

Also, government must be willing to provide better critical infrastructure for businesses to thrive.

Mr. Ayo Terriba, the CEO of Lagos-based Economic Associates had said more importantly on agriculture, that government should improve on storage facilities, road infrastructure, training for farmers and establish cooperatives for rural farmers that are largely neglected.

The Footprint to Africa concept paper/blueprint for an online survey of Micro, Small and Medium Enterprise in Nigeria indicated that it is worthwhile capturing and representing a more reliable, dependable and innovative data index for economic sectors in order to monitor their prospects, challenges and contributions to economic development indices such as employment, GDP, export etc.

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Business ‘Cooking gas scarcity now a thing of the past’

Barr. Nosa Ogieva-Okunbor, National President of the Nigeria Association of LPG Marketers (NALPGAM) in this interview speaks on the supply situation in the country presently.

What is the state of LPG (cooking gas) supply and what efforts are marketers making to ensure that the product circulates nationwide?

NALPGAM is doing its best to enlighten Nigerians on the use of LPG and that LPG has a great potential in the development of our economy. The efforts we have put in place have engineered the Nigeria Liquefied Natural Gas Limited (NLNG) to put in place a deliberate policy to supply the Nigerian market with more of the product. As we speak now,  the issue of scarcity of the product in Nigeria is a thing of the past.

NLNG came in recently to remove the bottleneck we were having in Apapa by increasing the jetty we have there.

Before now, whenever there is fuel scarcity priority, is given to Premium Motor Spirit (PMS) but as we speak we have more jetties that LPG can come into the country to be discharged into the storage facility.

That is why most times in December, scarcity comes up but last year because of the effort put in by the NLNG, there was no scarcity. Scarcity from all indications is a thing of the past in the LPG industry.

 How has deregulation of the LPG market helped or crippled the industry?

What the government is doing now by bringing LPG into the front burner is not crippling but rather expanding and making the LPG industry to be further deepened in Nigeria.

The government is rather coming out to push the industry up to a higher level. As we speak, Nigeria is one of the lowest LPG consuming nations in Africa and if the policy being put in place now is properly implemented, within the next five years, we will be ranked as one of the most LPG consuming nations in Africa.

What are the challenges LPG marketers currently face?

In every industry, there are challenges. We have challenges of inadequate infrastructure, multiple taxes and they are things we are presently discussing with government.

Some of your members have come under the hammer of the Department of Petroleum Resources (DPR) for sharp practices. What is the association doing to ensure that marketers don’t infiltrate the market with off spec LPG?

Before you become a member of NALPGAM you must be licensed by the DPR. People who just wake up and set up gas plants are not members of my association. It is the unscrupulous Nigerians that are bringing in off spec product from other sources. Ninety per cent of what we consume in Nigeria comes from the NLNG. As at last year we were consuming 700,000 metric tonnes of LPG per annum and that is not our capacity, we are just scratching the surface. Our capacity is about 5 million metric tonnes per annum.

What is your association doing to enlighten Nigerians on the safety concerns around switching to LPG usage?

We are doing our best in that regard. Every month we hold meetings and enlighten our people on any new technology that comes up in the industry. We have a training school in our national secretariat where training is being conducted for our employees.

FCAM’s Legacy USD Bond Fund listed on NSE

Legacy USD Bond Fund, a mutual fund managed by First City Asset Management Limited (FCAM) and registered with the Securities and Exchange Commission (SEC), is now listed on the Nigerian Stock Exchange (NSE).

The fund which recorded an impressive 244.44 per cent subscription in its Initial Public Offering (IPO), raised over $6m. The IPO was, therefore, 144.44 per cent oversubscribed. FCAM is a member of First City Monument Bank (FCMG) Group.

The Legacy USD Bond Fund is an open-ended investment vehicle registered with SEC and managed by FCAM. It gives investors the opportunity to invest in US dollar denominated fixed income securities on a continuous basis and aids currency diversification.

In his comments, the Chief Executive Officer of FCAM, Mr. James Ilori, said, “We thank the Nigerian Stock Exchange for working with us to list Legacy USD Bond Fund.

“We will continue to work with the NSE in creating opportunities for investors to efficiently access safe and value-adding investment products and services. Legacy USD Bond Fund has now re-opened to new and existing investors.”

Business

UBA shareholders approve 2017 final dividend of N22.23bn

UBA shareholders approve 2017 final dividend of N22.23bn

The United Bank for Africa (UBA), yesterday, endorsed the payment of N22.23 billion final dividend declared by the board for the financial year ended December 31, 2017.

The shareholders gave the approval at the bank’s 56th Annual General Meeting (AGM) held in Lagos.

The final dividend translated to 65k per share when compared with the final dividend of 55k paid in the corresponding period in 2016.

The dividend was in addition to the 20k per share paid as interim dividend earlier.

Speaking at the meeting, Mr. Boniface Okezie, the National Chairman, Progressive Shareholders Association of Nigeria (PSAN), commended the board and management for the dividend desspite an unfriendly operating environment.

Okezie lauded the bank for the enhanced dividend and its great work, as well as achievements in the continent.

Okezie, however, called on the shareholders to leverage on the Securities and Exchange Commission’s (SEC) e-dividend initiative in order to bring down the bank’s unclaimed dividend totalling about N7bn.

Mr. Nona Awo, a shareholder, urged the bank’s management on investors’ enlightenment on the benefits of e-dividend.

Awo said the bank should engage the company secretary and the registrar to tackle the unclaimed dividend figure.

He also commended the bank’s subsidiaries for improved contribution to the company’s performance indicators.

Mr. Timothy Adesiyan, Grand Patron, Nigerian Shareholders’ Solidarity Association (NSSA), appreciated the bank for the dividend and achievement during the year under review.

Adesiyan said that the bank should conform to regulatory rules and regulations to avoid payment of unnecessary fines.

Responding, Mr. Tony Elumelu, the bank’s chairman, assured the shareholders of enhanced returns in the years ahead.

Elumelu said the bank had opened a banking license few months ago to operate UBA London, noting that it would continue to increase its footprint across the globe.

On unclaimed dividend, he said the bank would continue to create e-dividend awareness in partnership with APR Registrars to reduce the figure.

Mr. Kennedy Uzoka, the bank’s Group Managing Director, said the bank would leverage its Pan-African platform to deepen and formalise intra-Africa trade through cross border synergy. NAN

Uzoka said the bank would focus on growing its market share and would remain committed to sustainable banking principles and risk management practices.

“Notwithstanding the ever-increasing competition from traditional peers and emerging Fintechs, we are approaching 2018 with strong optimism,’’ he said.

He said the bank had made a lot of investment in technology to drive business operations.

He assured the shareholders that the bank would ensure efficient service delivery in its operations. NAN

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TCN inaugurates 100MVA transformers By Kayode Ekundayo, Lagos | Publish Date: Apr 24 2018 4:14AM
TCN inaugurates 100MVA transformers

The Transmission Company of Nigeria (TCN) has commissioned 100 MVA transformers at the 132/33KV Alimosho substation aimed to boost electricity supply to residents within Ikeja DisCo’s area of coverage.

Mr. Usman Mohammed of TCN, while commissioning the project in Lagos, said the company was concerned beyond increasing the quantum of power to the quality of electricity being supplie

Mohammed said  TCN was implementing the Transmission Rehabilitation and Expansion Programme (TREP) which sought to strengthen grid infrastructure for enhanced wheeling capacity that offered redundancy consistent with the requirements of N-1 reliability criterion.

He said TREP provided the necessary operational flexibility and reliable power delivery to the DisCos and other class of customers connected directly to the National Grid.

Mohammed said the upgrading of the 1X30MVA to a 1x100MVA transformer at the Alimosho 132/33KV transmission substation had raised the station output capacity from 160 MVA to 230 MVA.

“With this development, TCN has not only established adequate transformer capacity to serve these parts of Lagos, but has also provided the necessary redundancy in line with the requirements of N-1 reliability criterion at the Alimosho transmission  substation.

Electricity firms owe N8.892bn for February service charge

Electricity firms owe N8.892bn for February service charge

The Electricity Distribution Companies (DisCos) owe N8.892 billion for electricity supply services after the supply for February 2018, records from the Market Operator (MO), a section of the Transmission Company of Nigeria (TCN), have shown.

The payment update records for Service Providers charges in the Nigerian Electricity Market (NEM) indicate the Generation Companies (GenCos) delivered 2,179 megawatts per hour (mw/h) of electricity to the 11 DisCos in February and billed them N9.423bn.

The MO said it got N3.444bn from the DisCos and remitted same to the Service Providers, which include the System Operator (SO), MO – both of TCN, and the Nigerian Electricity Regulatory Commission (NERC).

There was N5.979bn as shortfall for February that was not paid for. This represents 60 per cent of the total amount due for payment in the month.

The MO also recorded another N2.913bn as the accrued interest on the DisCos outstanding balance. The combined debt for the month for service providers’ charges was pegged at N8.89bn,  Daily Trust learnt.

Meanwhile the DisCos owe N38.526bn as outstanding debt, including accrued interest on the debts by the end of January 2018. This is separate from the N8.89bn being owed for February 2018.

The breakdown shows that while N35.612bn is for the service providers’ charges, N2.913bn is for accrued interest.

The top debtors for the service charge and accrued interest is Ibadan DisCo, with N6.3bn, followed by Abuja DisCo, with N6.085bn.

In the middle are Port Harcourt which owes N4.043bn; Kano DisCo owes N3.978bn, Kaduna owes N3.939bn, Enugu owes N3.861bn, Ikeja owes N3.124bn and Jos DisCo owes N3.070bn.

Yola DisCo has the lowest debt of N60.273m, while Eko DisCo has N1.625bn and Benin, N2.431bn.

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Oil price rises to approximately $72 amid worries of disruption
Oil price rises to approximately $72 amid worries of disruption

Oil prices rose on Tuesday amid worries that there could be a high risk of disruptions to supply, especially in the Middle East.

Brent crude oil futures were at $71.80 per barrel at 0120 GMT, up 38 cents, or 0.5 per cent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were up 39 cents or 0.6 per cent, at 66.61 dollars a barrel.
Traders said oil markets were receiving general support due to a sense that there were high risks of supply disruptions, including a potentially spreading conflict in the Middle East.
The conflict is renewed by U.S. sanctions against Iran and falling output as a result of political and economic crises in Venezuela.
Oil markets have generally been well-supported this year, with Brent up by around 16 per cent  due to healthy demand which comes as the producer-cartel of the Organisation of the Petroleum Exporting Countries (OPEC) leads supply cuts aimed at tightening the market and propping-up prices.  (NAN)

Custom seizes 48 smuggled vehicles in Sokoto

Custom seizes 48 smuggled vehicles in Sokoto

The Nigeria Customs Service (NCS) has seized 48 vehicles with duty paid value of N196.7 million in Sokoto.

Nasir Ahmed, the Area Comptroller in charge of Sokoto/Kebbi/Zamfara Area Command, made the disclosure on Tuesday while briefing newsmen on the success recorded by the command in the first quarter of 2018.
“The NCS based on credible intelligence on Wednesday April 12, with the assistance of the 1 Brigade, Nigeria Army in an operation discovered a location in Sokoto where several vehicles are stored.
“These vehicles suspected to be smuggled into the country were stored at Rugan Waru Area of Sokoto state.
“So, officers of NCS acting under the Customs and Excise Management Act, Cap 45, laws of the Federation of Nigeria 2014, during a raid discovered the 48 vehicles.
“This, involved 20 Lexus GX 470 SUV vehicles and 28 Toyota Avensis vehicles suspected to be smuggled through unapproved routes,” he said.
He added that the vehicles were immediately moved from the location and deposited at NCS headquarters in Sokoto.
“We therefore urge the owners to come forward with valid Customs documents because failure to do so, the vehicles will be liable to seizure and subsequent forfeiture to the Federal Government after 30 days.
“This is in line with the laws of the land. However investigations to ascertain the true owners of these vehicles is presently ongoing,” he added.
The Comptroller further said that a total of N443.8 million revenue was generated by the command in the first quarter of 2018, higher by 20.3 per cent compared to same period in 2017.
Ahmed also said that the command in the first quarter seized 2, 298 bags of 50 kg and 23 bags of 25 kg bags of foreign rice with duty paid value worth N41.3 million.
He also added that 527 jerry cans of 25 kg vegetable oil with duty paid value of N6.6 million was seized by the command during the same period. (NAN)
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Oil, gas to retain hold on energy mix for more decades – Barkindo
Oil, gas to retain hold on energy mix for more decades – Barkindo

Despite the speed of the annual growth rate for renewables in recent times, oil and gas will hold more than half of the energy demand in a few more decades to come, Secretary General of OPEC, Mohammed Sanusi Barkindo, has said.

Speaking yesterday at the 5th Kuwait Oil & Gas Show with theme ‘New Energy Era: Transformation, Diversification and Integration’, Barkindo said the combined contribution of renewables, hydro, nuclear and biomass is expected to account for just 26% of the global energy mix, an increase of 7% today

According to him, oil and gas combined are still expected to provide more than half of the world’s energy need by 2040, with their combined share relatively stable between 52-53% over the almost 25-year forecast period.

Barkindo said: “Thus, in looking ahead, we need to be realistic about what each energy source can provide, and continually look to transform how we extract, process, supply and use all the energies needed in the future.

“In terms of oil, we expect it to reach over 111mb/d by 2040, an increase of around 15 mb/d.  We are expected to hit 100 mb/d during the course of this year, much earlier than initially forecast. On top of this, we should also remember that oil producers and companies must invest heavily simply to offset the impact of natural decline rates, which is annually around 4 mb/d.”

The OPEC Secretary General also stated that, “For oil, it means that there is no expectation for a peak in oil demand over the forecast period to 2040.  This is not only the projection of OPEC, but the International Energy Agency (IEA) too.”

He said to put this into an investment perspective, in the period to 2040 the required global oil sector investment is estimated at a huge $10.5 trillion.  This also needs to be placed in the context of the fact that globally more than a trillion dollars of frozen capex or cuts were witnessed during 2015 and 2016.

“This should not only be through the concerted and continued development of renewable energies. It also needs to be through the development of technologies in the oil & gas industry to enhance efficiencies, in both production and use, streamline working practices, and further improve their environmental footprint.

“This requires innovation and human ingenuity, just as it has in the past. For example, our industry has seen technological innovation move E&P opportunities from onshore to offshore, then to deep water and frontier regions, and most recently to unconventionals.

“Improvements in the quantity and quality of information about different geological formations have meant we have been able to find more oil and gas,” he said.

When looking at recovery rates, technological developments have helped increase these from less than 10% of oil in place in the early history of the industry to more than 70% in some fields today.

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Electricity firms access N158bn facility to repay loan
Electricity firms access N158bn facility to repay loan

The new owners of the defunct Power Holding Company of Nigeria (PHCN) have accessed about N158 billion from the Central Bank of Nigeria under its Nigeria Electricity Market Stabilisation Facility (NEMSF).

The facility, which was initially N213 billion, was initiated in September 2014 to clear debts that were inherited from the defunct PHCN by the privatised utility firms after November 1, 2013.

However, about N51.8bn of the  fund is yet to be disbursed to 40 participating firms. CBN said it disbursed N158.7bn to 37 firms since 2015.

The disbursement is put under a Special Purpose Vehicle (SPV) called the NESI Stabilisation Strategy Limited with Registered Company (RC) number: 1237000, the Daily Trust learnt. It was to be disbursed to Nigerian Electricity Market (NEM) participants at a single digit interest rate with a moratorium of six months.

Fresh updates from the fund showed that N158.74bn has been disbursed in five batches, representing 75 per cent of the total amount.

An update revealed that by October 2015, one year after it was initiated, N58bn was disbursed with a 10 year repayment period, at a 10 per cent interest rate.

The latest disbursement of N38.53bn was made on April 4, 2018 to Abuja DisCo.  Records obtained from the Ministry of Power, Works and Housing showed that as at April 6, 2018, the N158.744bn has been disbursed to 37 of the power sector firms from a total Global Facility of N210.626bn pegged to offset legacy payments.

The breakdown of the disbursements showed that seven Distribution Companies (DisCos) were slated to get N56.355bn.

CBN said it has disbursed N49.841bn which is 88 per cent while N6.513bn representing 12 per cent is pending.

For the Generation Companies (GenCos), 18 of them are to benefit from N86.834bn and have gotten N73.545bn representing 85 per cent. A balance of 15 per cent which is N13.288bn is still pending.

Six Service Providers which include the Transmission Company of Nigeria (TCN) and the Market Operator (MO) are also in the scheme to get N25.908bn. They have received N10.463bn (40 per cent) and are expected to get N15.44bn which is 60 per cent, the disbursement record showed.

Six Gas Companies (GasCos) are to get N41.528bn. N24.892bn has been disbursed to them which is 60 per cent and they await the disbursement of N16.635bn which will be the 40 per cent outstanding sum.

The data also revealed that 25 per cent of the facility disbursement is pending, derailing plans of the CBN to disburse all the funds within one year of the commencement of the intervention.

The document noted that Kaduna and Yola DisCos are yet to come on board the facility though they are expected to get about N25.37bn.

The analysis of pending disbursements indicates that N25.37bn will be paid to Kaduna and Yola DisCos once they complete the signing of the NEMSF agreements as beneficiaries before June 2018. While Kaduna DisCo could get N18.400bn, Yola DisCo may get N6.972bn.

CBN, through the SPV, plans to disburse another N500 million to other participants in the NESI value chain.

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CBN Begins Disbursement Of N26bn Agribusiness Fund To MSMEs

The Central Bank of Nigeria (CBN), in collaboration with the Bankers’ Committee on Thursday commenced disbursement of N26 billion Agribusiness Small and Medium Enterprises Investment Scheme (AGSMEIS) fund to the first set of beneficiaries.

The CBN Governor, Mr Godwin Emefiele at the inauguration of the scheme in Abuja, said that the fund was set up by the Bankers Committee at its 331st meeting held on Feb. 9, 2017.

He said that the main purpose was to improve access to affordable funding for Micro, Small and Medium Enterprises (MSMEs), particularly those operating in the informal sector of the economy.

Emefiele recalled that as commitment to the successful implementation of the scheme, all Money Deposit Banks (DMBs) voluntarily agreed to contribute five per cent of their Profit After Tax annually. He said their contribution was to be used to fund eligible projects under the scheme.

Emefiele commended the commitment of the DMBs to support the scheme, adding that by the end of next year, the disbursement rate of the fund would have risen to N60 billion.

He also said the fund would be disbursed to youths, who had been trained on various entrepreneurship, vocational and management skills across the country by Entrepreneurship Development Institutions and Centres.

According to him, the centres are the Fate Foundation, Lagos Business School, House of Tara and Thrive Agric.

He said unlike other intervention scheme where the funds were disbursed in cash, beneficiaries under the agribusiness programme would be given equipment that were commensurate to the required amount based on their trade areas. “In Nigeria, the challenges of youth unemployment and restiveness must be confronted with strategic innovative thinking to provide sustainable solution.

“No matter how daunting the challenge may seem, I believe that with unity of purpose, we can fight this scourge together. “There is no gainsaying the fact that one of the most effective ways to tackle this scourge, is through entrepreneurship development and easy access to affordable funding. “Yet, access to funds has been an Achilles heel on entrepreneurship development in the country today.

CBN Support Agriculture: CBN Will Support Any State Committed To Agric
CBN Support Agriculture: CBN Will Support Any State Committed To Agric

“A situation often credited to financial intermediaries’ apathy to youth entrepreneurshipand startups, which are usually perceived as being too risky, lacking relevant managerial skills and not possessing,’’ he said. Emefiele said that the AGSMEIS scheme would be implemented under three broad components, direct, indirect and developmental components.

Under the direct component of the AGSMEIS, the CBN governor said beneficiaries could access loans to a limit of N10 million at an interest rate of five per cent per annum and a maximum tenor of up to seven years. In addition, he said that there was also a moratorium period of 18 months on principal and six months on interest element, depending on the nature of the business.

Under the indirect component of the scheme, the CBN governor said beneficiaries could access equity and quasi-equity investments of up to ten years with an initial lock up period of three years before divestment. He explained that the developmental component of the scheme would be used for capacity building and technical assistance to support beneficiaries.

Emefiele said also that the apex bank would step up its developmental objectives so as to reduce the level of unemployment and create wealth that would support the growth and development of the economy. Also, he said that under the CBN Anchor Borrowers Programme, which was launched in Nov. 2015, the bank had disbursed N80 billion to 358,000 small holder farmers in 34 states, cultivating eight commodities.

The highlight of the event was the disbursement of materials worth N133 million to first set of 358 beneficiaries to start businesses in their chosen fields.

Emefiele stressed again that the money was not free and the beneficiaries would be strictly monitored to ensure repayment.

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