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NNPC projects $1tn loss in global oil production by December

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The Nigerian National Petroleum Corporation has estimated global losses from exploration and production activities due to slowing demand for crude oil amid the COVID-19 pandemic will hit about $1 trillion by the end of 2020.

Group Managing Director of the corporation, Mallam Mele Kyari, who stated this on Tuesday at the Nigerian Association of Petroleum Explorationists (NAPE) 2020 Conference, also reiterated the plan of the NNPC to reduce production cost per barrel to $10 by 2021.

The theme of the conference held in Lagos was “Accelerating Growth in Nigeria’s Hydrocarbon Reserves: Emerging Concepts, Challenges and Opportunities.”

He said the NNPC had slashed its cost per unit to between 20 per cent and 30 per cent and would reach the projected target next year.

He said, “We are in challenging times. What COVID-19 did to the oil industry is monumental. It has done a lot of collateral damage to the rest of the industry, entertainment and everything you can think off.

“Of course, the collateral cost to the industry we expect is about $1tn of loss for E&P across the globe.

“There’s an extreme decline in demand for oil and of course other losses through the year which is fatal for the business.

“But businesses must adjust and do things differently. We have pulled down cost and increased revenue and we are focusing more on reducing cost and optimising costs where we are not able to cut costs.

“We are investing in gas because we have seen the resilience of gas and that has taught us that gas will be the future of transition fuel and a great player in the future scenario. We are a gas country with over 600tcf with proven reserves of 203 trillion CF. We have done very little on that. The PIB will be the solution to this.”

Kyari said the only way to survive the difficult situation was to cut or optimise production costs and increase revenue.

Vice President, Prof. Yemi Osinbajo, who also attended the event, said the Federal Government was targeting the growth of the country’s crude oil reserves, currently at about 36 billion barrels to 40 billion and achieve a daily production of three million barrels.

Kyari, in his virtual presentation from Abuja, explained that with over 203 trillion cubic feet of gas, the Petroleum Industry Bill (PIB) when passed into law, would unlock the huge potential in the country.

According to him, without a clear fiscal environment and incentives in place, no one will invest in the sector, adding that by the time the PIB is ready next year, there will be renewed vigour in the industry, especially on the gas side.

He stated that despite the conversations surrounding the extinction of hydrocarbons, crude oil will continue to be relevant in the next 20 to 40 years.

He added that only very efficient companies producing at cheapest cost and getting to the market early would survive.

Kyari expressed delight at the discovery of oil in the frontier basin, particularly in the Benue trough.

He said it would significantly change the dynamics of production in the country, including the expansion of the country’s reserves.

He said, “Times are tough but the opportunities are all there. As a company, we have a target in the upstream and we know that $10 is possible in the industry. A lot is going on in terms of sharing resources, reducing contracting circle etc. We have seen a cost reduction of 20 to 30 per cent and overall at the end of 2021, we will see the $10 unit production cost.

“There are areas where it’s being done for less than $10 and unless we do this, we will not be competitive. The advantage we have is the quality of oil we have and we are one of the most extreme area in terms of distribution, so we have to pull the cost down, otherwise, we will produce oil and not find anyone to buy because you cannot cover the cost ultimately.”

Osinbajo, represented by the Minister of State, Petroleum, Chief Timipre Sylva, explained that though renewable energy remained the future of energy transition, hydrocarbons would remain the dominant source of energy in the immediate future.

He expressed optimism that a single-digit unit cost of production was achievable, provided the entire industry could work together to achieve the set target.

He said, “There’s no gainsaying that the growth of some countries depends on energy availability and utilisation, especially on crude oil and increasingly on natural gas.

“Renewable energy is becoming a cheaper form of energy and response to climate and reduced dependence on hydrocarbons over the next century seems to be inevitable. That notwithstanding, technology and discussions to date suggest that hydrocarbons will remain the dominant source of energy in the immediate future.

“The increased level of uncertainty in oil and gas demand and the emerging technologies on alternative energy have become important elements in making decisions on optimal exploitation of petroleum resources.

“This is more critical now that abundance of hydrocarbons is being discovered in the most unconventional places of the world. I suggest that our discussion should include but not limited to provision of secure energy supplies.”

The vice president stated that the OPEC production curtailments had resulted in lower revenue for the government, adding that it is now imperative for Nigeria to achieve a single-digit cost of production.

“Another key mandate is the growth of the country’s reserves to 40 billion barrels of crude oil as well as the production capacity of three million barrels of crude oil per day. We are fully committed to this mandate, notwithstanding the curtailment.

“We have the assurance that the curtailment will soon be over as the world economy improves. To grow our reserves, we have proposed fiscal incentives that will attract investments in the PIB,” he stated.

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FG Overhauls NYSC After 53 Years, Approves Civilian Leadership, Skills-Based Service Scheme

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NYSC Trust Fund Bill Awaits Presidential Assent as Reps Promise Innovation Hub

FG Overhauls NYSC After 53 Years, Approves Civilian Leadership, Skills-Based Service Scheme

 

The Federal Government has approved the most far-reaching overhaul of the National Youth Service Corps (NYSC) since its establishment 53 years ago, paving the way for a civilian-led, skills-driven service scheme designed to equip graduates for employment, entrepreneurship and national development.

 

The landmark reform, approved by the Federal Executive Council (FEC), will see the NYSC transition from military operational leadership to civilian management, while the military will retain responsibility for the security of corps members. The reforms also introduce specialised career streams, expanded vocational training and a new orientation camp structure aimed at producing a workforce capable of supporting Nigeria’s ambition of building a $1 trillion economy.

 

To fast-track implementation, FEC directed the Attorney-General of the Federation and the Ministry of Youth Development to amend the NYSC Act and other relevant regulations to reflect the approved changes.

 

Speaking on the reform, the Special Adviser to the President on Policy Coordination, Hadiza Bala Usman, said the review was necessary to reposition the scheme as a modern institution focused on youth empowerment, skills development and productivity.

 

She explained that the reforms would strengthen Nigeria’s human capital by aligning the NYSC with the country’s economic priorities.

 

According to her, the review covers virtually every aspect of the scheme, including registration, deployment, security considerations, orientation camp activities and post-service opportunities.

 

Under the new model, corps members will undergo a redesigned six-week orientation programme. The first two weeks will focus on civic responsibility, national values and leadership development. The next two weeks will cover career mapping, financial literacy, business planning and access to finance, alongside a structured career engagement programme with employers and public institutions.

 

The final two weeks will be dedicated to specialised training based on each corps member’s academic background, career interests and chosen service stream.

 

Bala Usman disclosed that the government has created 11 specialised NYSC streams from which participants will choose during registration.

 

The streams include Agric Corps, Medical Corps, Education Corps, Tech and Digital Corps, Legal Corps, Public Service Corps, Infrastructure Corps, Green Corps, Enterprise Corps, Creative Economy Corps, and Paramilitary and Security Corps.

 

She said each stream would offer targeted training designed to prepare graduates for careers in critical sectors of the economy.

 

According to her, the reform represents the first comprehensive review of the NYSC since its creation in 1973 and reflects President Bola Tinubu’s commitment to transforming the scheme into a platform for building skilled manpower capable of driving economic growth.

 

The NYSC was established by Decree No. 24 of May 22, 1973, in the aftermath of the Nigerian Civil War to foster national unity, integration and reconciliation among Nigerian youths.

 

The scheme is currently headed by Brigadier General Olakunle Nafiu but will, under the approved reforms, transition to civilian operational leadership once the necessary legal amendments are completed.

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BREAKING: Gunmen Kill Teacher, Abduct Scores of Students in Borno School Attack

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BREAKING: Gunmen Kill Teacher, Abduct Scores of Students in Borno School Attack

BREAKING: Gunmen Kill Teacher, Abduct Scores of Students in Borno School Attack

Lassa, Borno State – In a brazen daylight assault on Monday, suspected Boko Haram and Islamic State West Africa Province (ISWAP) terrorists attacked Government Day Secondary School in Lassa, Askira/Uba Local Government Area, killing a teacher and abducting an unspecified number of students who were writing the National Examinations Council (NECO) Senior School Certificate Examination.

The attackers reportedly stormed the school at about 9 a.m., arriving on motorcycles through the busy weekly market in the border community near Adamawa State. They fired sporadically into the air, causing pandemonium among students, teachers, and residents before whisking away an unknown number of candidates into the surrounding bush. A teacher was confirmed dead during the assault, while another sustained gunshot injuries. Some unconfirmed reports from residents claimed two teachers and one female student may have been killed.

The Borno State Police Command confirmed the incident, stating that security operatives confronted the attackers to prevent a larger-scale abduction. According to police sources, an unspecified number of Boko Haram and ISWAP terrorists attacked the secondary school and shot sporadically into the air. During the attack, an unspecified number of students were abducted, while some are still missing. The Police Commissioner has deployed the Area Commander in Askira/Uba, who is currently coordinating a search-and-rescue operation with military personnel and the Civilian Joint Task Force combing the surrounding forests. The command could not immediately confirm reports of fatalities among the victims.

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Residents reported that the attackers wore military and forest guard uniforms and passed through a military checkpoint without detection. One eyewitness claimed that Nigerian military troops stationed in the area had left on a patrol to the nearby town of Uba, approximately 16 kilometers away, just before the insurgents struck. “The soldiers were not around when the terrorists invaded. They came in large numbers, firing sporadically and causing panic everywhere. They took away students writing NECO and their teachers,” a resident who fled the scene said. Lassa, though in Borno State, is predominantly inhabited by the Margi people, who are found in both Borno and Adamawa states. The town’s proximity to the Adamawa border has historically made it vulnerable to cross-border attacks.

The attack is the latest in a series of mass abductions targeting schools in Nigeria’s troubled North-East region. Since the infamous abduction of 276 Chibok schoolgirls in 2014, the mass kidnapping of students has become a recurring pattern, with over 1,680 students abducted across Nigeria over the years. Just last month, suspected Boko Haram terrorists attacked Mussa Primary and Junior Secondary School in Askira/Uba Local Government Area, abducting 42 students and pupils. That incident included four secondary school students, 28 primary school pupils, and 10 children abducted from their homes.

Terrorist groups such as Boko Haram and ISWAP have increasingly used mass abductions to assert dominance over the government and local communities. While Boko Haram primarily employs abductions as a tool of terror and intimidation, groups like ISWAP leverage kidnappings for strategic objectives, including generating revenue through ransom demands and bolstering their influence and power. For criminal groups, mass school abductions have become a commercialized industry—a lucrative, low-risk crime amid Nigeria’s multifaceted economic crisis. Perpetrators exploit weak state capacity and cross-border safe havens to abduct students and teachers for ransom.

As of press time, neither the Borno nor Adamawa State governments had released official statements on the attack, and no group had claimed responsibility. Efforts to ascertain the exact number of students and teachers abducted continue as security forces intensify search operations in the surrounding forests.

BREAKING: Gunmen Kill Teacher, Abduct Scores of Students in Borno School Attack

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FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions

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Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to petroleum marketers across the country, cautioning them against exploitative pricing of Premium Motor Spirit (PMS), popularly known as petrol, and vowing to sanction operators found engaging in unfair market practices.

The Commission expressed concern over the continued high retail price of petrol despite recent improvements in global crude oil prices and local supply conditions, insisting that consumers should begin to benefit from changing market realities.

The warning comes amid growing public dissatisfaction over the cost of fuel, which has remained significantly high months after international oil prices stabilised and supply chain disruptions eased.

According to the FCCPC, the sharp increase in petrol prices witnessed earlier this year was largely driven by rising crude oil prices triggered by geopolitical tensions in the Gulf region between April and May. During the period, pump prices of petrol surged to between ₦1,350 and ₦1,500 per litre in many parts of Nigeria, while diesel prices climbed to almost ₦2,000 per litre.

The Commission recalled that before the market disruptions, petrol sold for between ₦800 and ₦900 per litre in February. However, despite relative stability returning to the international oil market and improvements in domestic supply, the average retail price of petrol has remained around ₦1,200 per litre nationwide.

The FCCPC noted that current pricing by some local refineries suggests there should be greater room for downward adjustments in retail pump prices. According to the Commission, several domestic refiners are presently selling petrol at gantry prices ranging between ₦1,025 and ₦1,075 per litre, a development that should ordinarily encourage more competitive pricing among marketers.

While acknowledging that the pricing of petroleum products is influenced by multiple economic variables, including foreign exchange rates, transportation costs, financing expenses, refining costs and distribution logistics, the Commission maintained that these factors do not justify arbitrary or exploitative pricing.

It stressed that the deregulation and liberalisation of Nigeria’s downstream petroleum sector do not grant marketers unrestricted freedom to impose excessive prices on consumers.

Speaking on behalf of the Commission, Mr. Bello emphasised that operators in the downstream petroleum industry remain bound by the provisions of the Federal Competition and Consumer Protection Act, regardless of the liberalised nature of the market.

He said market liberalisation must go hand in hand with fair competition and responsible business conduct, warning that the Commission would not hesitate to investigate any credible allegation of anti-competitive practices or consumer exploitation.

According to him, “Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment. Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”

The FCCPC further warned that any evidence of price fixing, collusion among marketers, cartel behaviour or other anti-competitive agreements designed to keep fuel prices artificially high would attract severe regulatory sanctions.

The Commission also called on Nigerians to play an active role in protecting consumer rights by reporting suspicious pricing patterns, misleading price claims and other unfair market practices through its official complaint channels.

Industry observers believe the Commission’s intervention could increase regulatory scrutiny in the downstream petroleum sector, particularly as Nigerians continue to grapple with the rising cost of living and demand greater transparency in fuel pricing.

The FCCPC reiterated its commitment to promoting fair competition, protecting consumers from exploitation and ensuring that the benefits of market liberalisation are reflected in competitive prices rather than excessive profit-taking at the expense of ordinary Nigerians.

 

FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions

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