Business
Just in: Nigeria frets as oil price finally hits $100/barrel
The price of crude oil (Brent) has risen to $100 per barrel in the international market, due mainly to the ongoing Ukraine crisis, a development that is currently causing upset in Nigeria.
Nigeria’s Bonny Light is also affected as the price currently hovers around $96.93 per barrel.
The development may not be any surprise as the oil price had been predicted to rise to $100 per barrel because of a sustainable increase in demand after the COVID-19 lockdown and now the crisis between Russia and Ukraine, which is dragging in other world leaders.
Multiple sources including Vanguard reported a few minutes ago that the price of Brent, usually utilised to benchmark other prices, rose to $103.33 per barrel, from $96 per barrel, in the global market.
There are indications that the prices of other crudes, including Nigeria’s Bonny Light will continue to rise.
But the Nigerian government has expressed concern over the rising international prices of crude oil, saying the increase is not good for the country.
Speaking on the issue in an interview with Bloomberg Television on Wednesday, Minister of State for Petroleum Resources, Mr Timipre Sylva, maintained that Nigeria’s comfort zone in terms of oil prices was between $70 and $80 per barrel.
Although the minister did not particularly explain why higher oil prices were bad for Nigeria, he stated that at the moment the country was not gaining anything from the soaring prices.
The country’s controversial fuel subsidy regime, which would gulp N3 trillion this year and its inability to ramp up production to meet the quota allocated by the Organisation of Petroleum Exporting Countries (OPEC) have limited the gains from the oil price hike.
Sylva blamed the inability of Nigeria to activate the oil wells it shut down when OPEC instructed producing countries to cut production as well as the lack of investment in the upstream sector for the country’s inability to increase production.
At the moment, Nigeria is losing at least 300,000bpd to its capacity challenges.
The minister stated, “I’m hopeful the prices will move around, maybe $80, maybe $70. We are hoping it will come down to somewhere around $70 to $80, which will be sustainable for us to the end of the year.
“We are working hard on that (production increase). What happened to us was the fact that we had to cut back at the time, and, of course, in such a way you can’t really cut back mathematically.
“So, you want to cut back 100,000 barrels that you shut out, maybe we’ll shut down about 200,000 to 300,000 barrels. So at the end of the day, we over-complied because we just couldn’t achieve it mathematically.”
Business
Finally, NERC unbundles TCN, creates new system operator
Finally, NERC unbundles TCN, creates new system operator
The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).
The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.
The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.
By this order, the TCN is expected to transfer all market and system operation functions to the new company.
The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.
The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.
Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”
Business
Naira depreciates again, trades at N1,402/$
Naira depreciates again, trades at N1,402/$
The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.
Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71
READ ALSO:
- Why I killed my one-year-old son – Delta woman
- Bandits kill nine civilian JTF members, kidnap three in Sokoto
- Yahaya Bello govt spending third term in office through Ododo – Clark
This represents a 0.84 per cent loss when compared to the previous trading date on Tuesday April 30, when it exchanged at 1,390.96 to a dollar.
However, the total daily turnover increased to 232.84 million dollars on Thursday, up from 225.36 million dollars recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira traded between 1,445.00 and N1,299.42 against the dollar.
Naira depreciates again, trades at N1,402/$
Auto
Appeal court takes over NURTW case as NIC withdraws
Appeal court takes over NURTW case as NIC withdraws
The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.
The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.
Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.
The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.
The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.
Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.
With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.
DSS seals Plateau clinic over patient’s death
We’ve arrested seven suspected cultists, armed robbers in Anambra – Police
PDP: Sule Lamido blames court for mass resignation from party
-
International2 days agoUS students slam Biden’s comments on Gaza encampments
-
News3 days agoGroup protests alleged imposition of Imam in Osun
-
Sports12 hours agoRonaldo’s hat-trick leads Al Nassr to 6-0 victory over Al Wehda
-
News2 days agoDon’t host US, French military bases in Nigeria, northern leaders warn Tinubu
-
News2 days agoLagos GDP hits N41tn, earns N433bn from IGR
-
International12 hours agoGaza: Thousands rally for hostage deal as ceasefire talks continue
-
Entertainment11 hours agoNollywood veteran Shan George weeps as fraudster clears ₦3.6m from her account (VIDEO)
-
Entertainment2 days agoSanwo-Olu appoints KWAM1’S daughter as aide