The federal executive council (FEC) has approved a proposal by President Bola Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Petroleum Refinery and other refineries in naira.

In a statement on X, Bayo Onanuga, special adviser on information and strategy to the president, said the African Export-Import Bank (Afreximbank) and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC.

FEC approved the proposal on Monday during a meeting presided over by Tinubu.

“To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira,” Onanuga said.

“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.

“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.”

Onanuga said the intervention will eliminate the need for an international letter of credit, further saving the country of dollar payments.

Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS), said the sale of byproducts from Dangote refinery to distributors will also be conducted in naira.

“And what does it mean to our economy? One, the pressure on foreign exchange will be reduced,” Adedeji said.

He said as of Monday, Nigeria spends between 30 percent to 40 percent of foreign exchange on the importation of petrol consumed by the country.

According to Adedeji, “monthly, we spend roughly $660 million in this exercise and if you analyse that will give us $7.92 billion annually”.

“With this approval today through FEC led by Mr President, this has reduced by minimum of 90 percent. Because what we have today, the transaction will now be down in our local currency not only to Dangote Refinery but to all local refineries for all our local consumption and this will actually stabilise the pump price,” he said.

‘TRADE IN NAIRA WILL REDUCE USE OF FX ON PETROL’

Adedeji said with the new approval, the foreign exchange spent on petrol will be reduced to a maximum of $50 million per month, rounding up to $600 million annually.

“This is total reduction of 94 percent and saving us $7.32 billion,” Adedeji said.

“This will also reduce finance costs, which today stands at $79 million. When you consider opening letter of credit between those local refineries and what happens.

“And also, council has approved the settling bank to be Afriximbank. It will be the lead arranger between NNPC and Dangote Refinery.

“So, this is a major innovation in solving Nigeria’s problem permanently. Not only will will have more employment but we will definitely be in charge of one of our main stay of our economy.

“So I congratulate the council members, Mr. President, and also congratulate the operator, the NNPC and Dangote refinery and also the lead arranger, Afriximbank because kudos should go to the President of the African Export-Import Bank (Afreximbank), Benedict Oramah, for Aramco for these initiatives, because these are people that work behind the scenes to make sure that what we witnessed today, happened.”

The approval for Dangote refinery and NNPC to trade in naira followed the dispute between the refiner, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

On June 4, Aliko Dangote, the founder of Dangote Group, said some international oil companies (IOCs) were struggling to supply crude to his refinery.

Speaking on Arise TV on July 15, Gbenga Komolafe, chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) described the claim as “erroneous” as the Petroleum Industry Act (PIA) has provisions that guide willing buyer-willing seller transactions.

On July 17, the management of Dangote Industries Limited (DIL) insistedthat IOCs are frustrating its request to purchase crude feedstock for the refinery.

Also, Farouk Ahmed, chief executive officer (CEO) of NMDPRA, on July 18, said local refineries, including the Dangote refinery, produce inferior products compared to the ones imported into the country.

Dangote denied the allegation by testing diesel from his refinery on July 20 when federal lawmakers visited the plant.

The billionaire also called for a probe into the allegations made by the NMDPRA.

On July 22, the lawmakers launched investigations into Ahmed’s claim.

They said allegations that the IOCs in Nigeria are frustrating the survival of the Dangote refinery will also be probed.

On the same day, Heineken Lokpobiri, minister of state petroleum resources (oil), held a meeting with Dangote, Ahmed, Gbenga Komolafe, CEO of NUPRC, and Mele Kyari, group CEO of NNPC, to resolve the dispute.

A day after, the house of representatives asked the federal government to suspend Ahmed over “unguarded comments”.

The Cable

The recent revelation that Nigeria's oil sector received zero foreign investment in the first quarter of 2024 is a stark reminder of the deep-rooted issues plaguing the country's most crucial economic sector. This alarming development, as reported by the National Bureau of Statistics, is not an isolated incident but rather the culmination of years of decline in foreign capital inflow to the industry.

The oil sector's fall from grace is nothing short of catastrophic. From attracting $720 million in foreign investments in 2016, the industry has witnessed a precipitous decline, managing to secure a mere $3.64 million in the entire year of 2023. This downward spiral has now hit rock bottom with the sector failing to attract any foreign capital in Q1 2024, even as other sectors like banking and manufacturing continue to draw significant investments.

Several factors contribute to this dire situation. Rampant oil theft in production areas has eroded investor confidence, while pervasive insecurity in these regions further compounds the problem. The insatiable demands of local communities for material gratification, particularly in onshore blocks, have created an unsustainable operating environment for potential investors.

The implications of this investment drought are far-reaching and potentially devastating for Nigeria's economy. The country is likely to continue falling short of its projected oil production targets and OPEC+ quota, further weakening its position in the global oil market. Local refineries, already struggling, will face even greater challenges in securing adequate feedstock. Perhaps most alarmingly, the value of the Naira is set to face continued pressure, given that crude oil sales provide the bulk of Nigeria's foreign exchange earnings.

The implementation of the Petroleum Industry Act (PIA), which was meant to be a game-changer, has so far failed to live up to expectations. As one expert pointed out, the flawed implementation of the PIA under the previous administration and the current government's failure to address these shortcomings have perpetuated a "business as usual" perception among potential investors.

To reverse this alarming trend, Nigeria must take decisive action. The government needs to reassess its approach to implementing the PIA, ensuring that it truly creates the incentives it was designed to provide. There must be a clear separation of roles between the Nigerian National Petroleum Company (NNPC), regulators, and policymakers to instill confidence in the sector's governance.

Furthermore, addressing the security challenges in oil-producing regions and finding sustainable solutions to community relations issues are paramount. The government must also intensify efforts to combat oil theft, which NNPC Group Chief Executive Officer Mele Kyari has repeatedly cited as a major deterrent to investment.

The clock is ticking for Nigeria's oil sector. Without swift and decisive action to address these fundamental issues, the country risks further economic instability and missed opportunities in a world increasingly looking towards sustainable energy solutions. The time for half-measures and business as usual is over. Nigeria must act now to revitalize its oil sector and secure its economic future.​​​​​​​​​​​​​​​​

The Nigerian Communications Commission on Monday directed telecommunication companies to immediately restore all the telephone lines of subscribers that were blocked after thousands of customers stormed the offices of the firms in protest.

Subscribers whose telephone lines were blocked due to the non-linkage of their National Identification Numbers to SIM cards besieged the offices of the companies less than 24 hours after the incident.

An impeccable source told our correspondent that the affected telephone lines from different mobile operators in the country were estimated to be around three million.

“It might be a bit difficult to say the exact number because it’s not just from one mobile operator. The number is fairly large from across the board. It is estimated to be about three million lines,” the source who pleaded for anonymity, due to lack of authorisation to speak on the matter, said.

The NCC, in a statement issued on Monday by the Director of Media and Public Affairs, Reuben Muoka, explained that the directive to restore the blocked telephone lines was in response to the widespread disruption and subscriber outrage caused by the blockages.

On Sunday, many subscribers found themselves unable to access their phone lines after failing to verify their NINs with SIMs, leading to their numbers being blocked in compliance with NIN-SIM linkage regulations.

The disconnection of the telephone lines coincided with the anticipated August 1 nationwide protests, raising concerns among citizens about a potential communication disruption.

However, the industry regulator and the telcos rebuked the insinuation, stating that the disconnection was in line with the data harmonisation exercise.

The NCC said, “The consumer is our priority; therefore, considering the challenges the blockages have caused, the commission has directed all operators to reactivate all lines that were disconnected over the weekend, because of the short time available for consumers to undertake the verification of their NINs with their SIMs.”

It clarified that the affected consumers should note that this reactivation was for a limited period to allow them to properly link their NINs to their SIMs.

The commission urged all subscribers who had not yet verified their SIMs to do so promptly to maintain access to their services.

The mandatory linkage of NINs with SIMs, initiated in December 2020, was geared towards enhancing the country’s security and ensuring an accurate SIM ownership database. Despite several deadline extensions, including the latest to July 31, 2024, many lines remain unverified.

Since December 2023, the commission has reviewed the deadline multiple times. Initially, April 15, 2024, was set as the deadline for the full barring of subscribers with four or fewer SIMs that had unverified NIN details.

This deadline was extended to July 31, 2024, to give consumers more time to ensure their submitted NIN details were properly verified. Despite these extensions, many phone lines are yet to be linked with verified NINs.

In its earnings report for the year ending December 31, 2023, MTN Nigeria disclosed that it disconnected 4.2 million lines after the February 28 deadline for linking SIMs with NINs expired.

MTN stated, “We also had approximately 4.2 million lines disconnected for which the subscribers did not submit their NIN. Several of these lines were low-value subscribers, minimising the revenue impact.”

Airtel Nigeria, the second-largest telecom operator, reported in May that 5.7 million of its subscribers had yet to link their SIMs to NINs.

In its financial report for the quarter ending March 2024, Airtel said it was working with affected customers to ensure smooth verification.

The operator, part of Bharti Airtel, mentioned that it complied with government directives, barring customers without NINs and those with more than four active SIMs, with minimal revenue impact. Since December 2023, Airtel has verified 7.9 million customers’ NINs.

Information on the number of subscribers barred by indigenous operators Globacom and 9mobile is currently not available, as these companies are not listed on the stock exchange and do not publicly disclose such details.

NATCOMS, MTN react

Videos and pictures on social media, including Facebook and X show long queues of customers who crowded MTN offices, with many subscribers lamenting and protesting against the telcos.

A senior official at MTN, who was not authorised to speak publicly on the matter, told The PUNCH that the firm had increased the number of staff to ensure that subscribers were properly served.

He said the disconnection was in line with the Nigerian Communications Commission’s directive to bar lines not linked to NIN.

“We have introduced a self-service option that allows customers to link their NIN without necessarily visiting our offices,” the official said.

On his part, the President of the National Association of Telecommunications Subscribers, Adeolu Ogunbanjo, told our correspondent that many subscribers had refused to adhere to instructions to link their SIMs with NIN.

He said the disconnection should have happened years ago, but the association had approached the NCC for an extension, which was subsequently granted.

Meanwhile, the Association of Licensed Telecommunication Operators of Nigeria clarified that the disconnection was not related to the planned August 1 protest.

“Customers who had their lines blocked recently are those whose service providers found a mismatch between their records on both databases. We advise such customers to contact their service providers through communicated channels for resolution of the issue,” the group explained in a statement.

Punch

Hamas, Israel trade blame for not reaching Gaza ceasefire and hostage deal

Israel and the Islamist group Hamas traded blame on Monday over the lack of progress in reaching a ceasefire and hostage release deal in the Gaza Strip despite international mediation.

Hamas accused Israeli Prime Minister Benjamin Netanyahu of adding new conditions and demands to a U.S.-backed truce proposal, after the latest talks conducted through mediators.

Netanyahu, however, denied making any alterations and said Hamas was the one insisting on numerous changes to the original proposal.

The Iran-backed Palestinian Islamist group said it had received the latest response from Israel, following talks in Rome involving Israel, the United States, Egypt and Qatar.

"It is clear from what the mediators conveyed that Netanyahu has returned to his strategy of procrastination, evasion, and avoiding reaching an agreement by setting new conditions and demands," Hamas said in a statement on Monday.

It accused Netanyahu of retreating from a proposal previously presented by mediators, which it said had already been based on an "Israeli paper".

Netanyahu's office said in response that it was Hamas leadership that was preventing a deal by demanding 29 changes to the proposal.

"Israel is sticking by its principles according to the original proposal - a maximum number of hostages (to be freed) who are still alive, Israeli control of the Philadelphi Corridor (along the Gaza-Egypt border), and preventing the movement of terrorists and weapons to the northern Gaza Strip," it said.

Senior Hamas political official Izzat El-Reshiq later on Monday denied his group had made any new conditions, accusing Netanyahu of stalling.

"The mediators are aware that Hamas showed flexbility and positiveness and paved the path to reaching an agreement and bypassed Israeli obstacles," Reshiq said.

Another Hamas official told Hamas Al-Aqsa television that Netanyahu had raised new "impossible" conditions over the return of displaced Palestinians to their homes, had refused to withdraw from the Rafah crossing and the border line with Egypt, and had rejected freeing long-serving Palestinian prisoners.

Washington, which sponsors the talks, has repeatedly said a deal is close. The latest talks are over a proposal President Joe Biden unveiled in May.

Hamas wants a ceasefire agreement to end the war in Gaza, while Netanyahu says the conflict will stop only once Hamas is defeated. There are also disagreements over how a deal would be implemented.

Mediators Qatar and Egypt, backed by the U.S., have repeatedly said doors to more negotiations remain open, with both Israel and Hamas voicing readiness to pursue them.

Reuters

WESTERN PERSPECTIVE

Ukrainian troops say Russia has driven them out of 2 more eastern Donetsk villages

Russian forces have overrun two front-line villages in Ukraine’s eastern Donetsk region, a Ukrainian army sergeant said Monday, after relentless assaults that are part of a Kremlin summer push to overwhelm battlefield defenses there.

Separately, attacks in Russia’s Kursk region by the Security Service of Ukraine, also known as the SBU, struck a number of substations causing power outages, according to a statement from the General Staff of Ukraine. The claim of responsibility came after Russia said it thwarted a nighttime Ukrainian drone attack.

“They pressed non-stop” to capture Vovche and Prohres, the chief sergeant of Ukraine’s 47th Separate Mechanized Brigade, Oleh Chaus, told Radio Svaboda. “They sent in a large number of troops, which had not previously been used.”

Russia’s Defense Ministry claimed in recent days that it had taken control of the villages, but the Ukrainian General Staff made no official comment.

The villages lie about 30 kilometers (20 miles) northwest of Avdiivka, a Donetsk city that the Russian army seized in February after a long battle. That victory was the Kremlin’s last major triumph in the war that is now in its third year.

Russia’s onslaught, fueled by its heavy advantage in soldiers and weaponry, has repeatedly forced the Ukrainians to pull back from defensive positions to avoid being captured or killed.

Oleksandr Shyrshyn, the 47th brigade’s deputy battalion commander, confirmed to local media that the villages had been taken. He blamed poor training of troops, low abilities of officers, motivation and inadequate weapons for the setbacks.

Ukrainian President Volodymyr Zelenskyy late Sunday described the situation in the Donetsk region as “extremely challenging.”

Russia’s strategy of attritional warfare, with powerful glide bombs smashing Ukrainian defenses before infantry move in, has brought incremental gains for the Kremlin as it seeks another big breakthrough.

Ukraine is significantly outgunned by Russia’s bigger army on the roughly 1,000-kilometer (600-mile) front line.

Russian troops are also intensifying their weekslong drive to breach Ukrainian defenses around Pokrovsk, a town of around 60,000 people before the war, the Ukrainian General Staff said Monday.

Russia launched 52 attacks there over the previous 24 hours — almost twice the daily number in recent weeks, it said.

Meanwhile, Russian air defenses thwarted a nighttime barrage of 39 Ukrainian drones over five of the country’s regions, Russian authorities said Monday. Ukraine claimed its forces carried out strikes in the Kursk region.

Russia’s air defense were active and explosions were reported near at least four substations, the statement from Ukraine’s General Staff said. After the attack, power outages were reported in the Ponyrovsky, Solntsevsky and Kursky districtions of Kursk region, according to the statement.

The attacks were carried out by the Security Service of Ukraine’s Special Operations Center, as well as other components of the Defense Forces.

“These facilities, among other things, ensure the functioning of the Russian railway, which transports weapons and military equipment to support its occupation army,” the statement said.

Russia’s Defense Ministry said the drones were “intercepted and destroyed” in regions bordering Ukraine as well as in the Leningrad region roughly 700 kilometers (430 miles) north of the Ukrainian border. A power plant, a bridge and a power line were damaged by drone debris, it said.

Ukraine has employed high technology in its campaign of increasingly ambitious drone strikes deep inside Russia that target critical infrastructure in an attempt to make the war more costly for Moscow and hinder its war machine.

RUSSIAN PERSPECTIVE

US raises Ukraine conflict in talks with India

US Secretary of State Antony Blinken and Indian Foreign Minister Subrahmanyam Jaishankar have discussed the Ukraine conflict on the sidelines of a summit in Japan, according to a statement from Washington.

The US official met with his Indian counterpart at a gathering of the so-called ‘Quad’ nations – Australia, India, Japan and the US – in Tokyo on Sunday. During the discussion, Blinken “underscored the importance of realizing a just and enduring peace for Ukraine consistent with the UN Charter,” the State Department said.

The meeting came ahead of Indian Prime Minister Narendra Modi’s proposed visit to Ukraine later this month, the details of which are currently being finalized, according to an official cited by The Hindu newspaper.

The trip is seen as an attempt to balance New Delhi’s ties with the West, which was reportedly frustrated by Modi’s meeting with Russian President Vladimir Putin in Moscow earlier this month. Russia was chosen as Modi’s first bilateral visit after he assumed office for a third term.

AP/RT

Word about town is that gossips are more trusted to help organise social events but less likely to be consulted for their ethics. By “word”, I mean “a workplace study from the University of Leeds business school”, and “about town” means “reported in the Times”.

Gossips unethical? For shame! The insights of this particular study I shall personally table for moral judgment at the next convergence of my neighbourhood girl gang. Gossip, friends, is both a moral mission and our pleasure on the fortnightly-or-so mornings we – 30s to 50s, a rainbow of sexualities and various household compositions – convene at the local cafe, eat toast and information-share.

We mostly drink coffee, but, baby, we spill tea. One of the many benefits of living in a small country town is that the human characters of the social narrative are visible on a near-daily basis. Physical encounters at the chemist, the supermarket, the early-morning pilates class form nodes of an information network more powerful than any digital communication that will ever be invented.

Shakespeare personifies Rumour as a character in Henry IV Part II, “painted full of tongues”, bitterly insisting that “rumour is a pipe, blown by surmises, jealousies, conjectures”. This negative characterisation informs the conclusions of the Leeds university workplace gossip study, where study participants rated gossipers as “less moral and competent” even though the researchers themselves could demonstrate that gossip was the “hallmark of a well-connected individual with an extensive social network”. Anyone arguing that gossipers are incompetent is failing to grasp the investigative skills obliged of the role; a gossip’s reputation only endures for as long as their gossip proves true.

Lest the demonising persist – in the workplace or beyond it – Rumour is warmly invited to spend some time in my cold corner of regional Victoria, southeastern Australia, where gossip has a significant community role to play in social and economic wellbeing, which is why everyone participates in it.

Apocryphal folklore remembers the comeuppance of a dastardly tradesperson when it was observed he was merely parking his van outside clients’ homes while the bulk of his billable hours were spent at his mistress’s house. The relentless scrutiny of close proximity means the businesses of “good people” thrive, and shysters and hypocrites are quickly exposed. On another occasion, a set of precious keys I managed to leave on an intercity train were returned to my home within a day, despite a) being unlabelled and b) me not even realising I had lost them. How could anyone have known they were mine? I can only conclude that I’d been gossiped about.

The workplace, of course, is a society similar to a small town. The Leeds university study’s researchers explain that gossip helps facilitate workplace culture, informing individuals of how to navigate organisational relationships and avoid threats. Connectedness overcomes the isolation that perpetrators rely on to conceal abuse: inquiries into scandals in Britain’s NHS have stated openly that gossip saves lives. In any community, gossipers identify who may be in need of help and consideration but is too shy, too embarrassed – or too vulnerable – to request any. In my town, somehow groceries appear for those going through tough times, anonymous flowers turn up for the heartbroken – and the baker always seems to have “spare doughnuts” since my husband has been unwell.

Is it the fear of losing control of one’s reputation to others that stigmatises gossip? Gossip weaponised to tread on personal sensitivity and harm a reputation was something I bore tearfully at age 11, sobbing to my mother when one of my Year 5 colleagues denounced me as “a flirt”. “If they aren’t talking about you, then you aren’t very interesting,” was superb – if blunt – maternal training in the art of not taking oneself too seriously. It was also fine preparation for life on the internet, where parades of unadmitted ex-friends, rejected dates and former partners can anonymously spread both real gossip and unadulterated nonsense about me, you, and anyone else, all of the time. Why be afraid? Being seen means you get your keys back, while the power move is to embrace the identity your enemies create for you; flirt your little self sick.

Malign or benevolent, gossip’s just broadcasting in its oldest, verbal form. It doesn’t require literacy, priestly interpretation, printing presses, radio towers or a $44bn website, so it’s historically the chosen medium of women, who had no access to these other things. “Gossip” comes from “godsibb”, pertaining roughly to a gathering of godmothers.

But stigmatisation and marginalisation and gendering does not dilute the transformative effect gossip may have on the lives of individuals or the fate of a community. Therein lies the real cause of gossip’s ongoing demonisation – the unbearable reminder, to everyone, that shared information has a power even the powerful can’t control.

The Guardian, UK

Most CEOs I speak with are under extreme pressure from their boards to apply advanced AI in their businesses. It’s no secret that AI has enormous potential and power, yet while AI has been around for decades we are still really in the infancy stages, with rapid evolution. To understand at a deeper level how CEOs should view AI, I asked leaders from Broadcom, Google Fiber, and Calix. They shared three fundamentals CEOs should consider:

1. UNDERSTAND THE RAG MODEL

Right now, AI is still transactional. However, we have already seen shifts indicating AI is becoming experiential. Everyone is talking about generative AI, but what CEOs need to understand is a new variation called the RAG Model, which stands for Retrieval-Augmented Generation. This framework combines traditional databases with generative large language models. Michael Weening, CEO, Calix discussed how this accelerates outcomes for CEOs by mitigating one of the biggest obstacles associated with generative AI.

“These sophisticated systems, which are trained on data from the internet, have been known to provide answers that are unjustified and just plain wrong,” Weening said. “RAG architectures help prevent hallucinations by combining a large language model with business-specific data sources — think databases and documents. This integration helps ensure the AI is operating on the latest, most accurate data and that users can check sources for accuracy — two crucial requirements. CEOs are generally worried by Gen AI, but RAG architectures make it ready for business.”

2. DO NOT EXPECT MIRACLES FROM AI OVERNIGHT

There are so many advances in AI that many applications almost seem like you’re waving a magic wand. For those — like many CEOs — who are not living in the advanced AI world and instead doing their job of running an enterprise, they can be thrown new ideas and use cases which seem relevant. According to John Keib, Chief Technology and Product Officer, GFiber (Google) CEOs need to challenge themselves.

“They need to be able to think of things that they could never do before – exponentially,” Keib said. “It’s about moving from transactional AI to experiential AI, taking disparate data sets and combining them into an outcome, which has a lot more value.”

3. LOCATE THE VALUE

CEOs have learned not to follow the shiny object, and most will not just use technology for technology’s sake – no matter how exciting it is. After interviewing over 1,000 top CEOs, I can say a CEO’s job can be summed up in just six words: “To get from here to there.” And getting there is usually about creating new value that didn’t exist before. Charlie Kawwas, President, Semiconductor Solutions Group, Broadcom cited the potential of AI to provide consumers with better cybersecurity protection.

“Customers would be excited,” Kawwas said. “Because we would be protecting grandma, protecting kids, protecting families. And people would pay more to get a service like that.”

In Summary, the changes AI will usher in will have profound impact on business the economy and society. CEOs can leapfrog competitors and accelerate progress with the right focus ... and perspective.

Forbes

Protesters have blocked Kaduna Road, a highway in Niger State linking Kaduna to Abuja.

This comes three days before the planned 10-day nationwide protest by some groups to demand an improvement in Nigeria’s economic situation.

The protesters carried placards with several inscriptions such as ‘We Are Not Slaves’, ‘Enough is Enough’; ‘Stop Anti-Masses Policies’, ‘Hardship Is Unbearable’ and ‘Fuel Subsidy Must Be Back.’

Monday’s protesters appeared unwilling to wait till Thursday as they chanted anti-government slogans.

The organisers of the nationwide protests want an improvement in the cost of living and a reversal of some government policies, particularly the removal of petrol subsidies.

Nigeria faces its worst cost-of-living crisis in a generation. Food prices more than doubled after President Bola Tinubu removed petrol subsidies and floated the naira to allow market forces to determine the value of the Nigerian currency.

The government says the policies are essential and that citizens would later benefit from them.

The government has been working hard to prevent the protests by meeting with traditional rulers, clerics, and other groups.

Security agencies like the police, the army and the State Security Service have also warned that the protests could be hijacked by persons intent on causing violence.

PT

Despite efforts by the government to attract more foreign investors into the oil and gas sector, the nation’s foreign capital investments in the industry nosedived from $720m in 2016 to $3.64m in the entire 2023.

The country also recorded no foreign capital investment in the first quarter of 2024, a report by the National Bureau of Statistics showed.

The report indicated that out of the $3.38bn capital importation into Nigeria in the first three months of 2024, the petroleum industry got nothing.

Capital importation is the inflow of foreign capital into a country, typically in the form of investments, loans, or other forms of financial resources.

This can include Foreign Direct Investment, and portfolio investment such as investments in a country’s financial assets like stocks, bonds, and securities.

It can also be in the form of short-term loans, deposits, or other forms of temporary capital inflows.

The petroleum sector’s zero capital importation in Q1 2024 indicates that no foreign capital was invested in the sector during that period, which could potentially impact the sector’s development and growth.

Even as the total capital importation went up by 198.06 per cent to $3.38bn compared to $1.13bn recorded in Q1 2023, the sector that gives the highest revenue to the country attracted no foreign investment within the period under review.

The banking sector recorded the highest inflow with $2.07bn, representing 61.24 per cent of total capital imported in Q1 2024, followed by the trading sector, valued at $494.93m (14.66 per cent), and the production/manufacturing sector with $191.92m (5.68 per cent).

The marketing, consultancy, and construction sectors received inflows valued at $60,000, $300,000, and $610,000, respectively, but the oil and gas sector recorded no investment.

Our correspondent gathered that over the years, foreign capital investments in the petroleum sector have been declining.

In the first quarter of 2023, the petroleum sector recorded $750,000 in capital importation, but nothing was recorded in the second quarter.

The sector got $850,000 in capital importation in the third quarter, while it made $2.04m in the last quarter.

In total, the sector attracted $3.64m as capital importation into Africa’s largest oil-producing country in the whole of 2023.

Our correspondent reports that the petroleum sector recorded $6.37m as capital importation in 2022, this was below what was recorded in just one quarter of 2021.

It was gathered from the NBS that in Q1 2021, the nation gathered a sum of $57.25m as capital importation; $340,000 in Q2 2021; $940,000 in Q3; and $32.31m in Q4. In total, $101m was the capital importation for the year 2021.

Similarly, the NBS revealed that the sector garnered $208m in capital importation in 2014 and $29.76m in 2015.

It peaked in 2016 to as high as $720m. The nation’s oil sector in 2017 saw $331.36m as foreign capital investment. The sector got $133.51m in 2018; $216.23m in 2019 and $53.51m in 2020.

Experts react

A professor, Wumi Iledare, said the sharp drop in foreign capital investment in the oil sector is expected because investors are not convinced that the Petroleum Industry Act has changed the country’s style of doing business.

Iledare said the PIA, which is supposed to create incentives, was implemented wrongly by the previous administration of Muhammadu Buhari. He said the incumbent President Bola Tinubu is yet to look at the errors for possible corrections.

“This is expected. Investors are more concerned about the certainty of doing business in an environment. This also has to do with the way the PIA is being implemented. The PIA is expected to create incentives, but they started the implementation wrongly. That is why the PIA, in my opinion, is not doing what it is expected to do.

“So, what investors see in Nigeria is ‘business as usual’ because of the way the PIA is being implemented; and the new government did not sit down to look at the errors of the past administration in the implementation of the PIA. It continued with the status quo,” Iledare said.

The energy expert called for a separation of roles between the NNPC and the regulators, stressing that the NNPC is supposed to be a player and not a government agency.

“Until you can convince investors that it is not business as usual and you can let them see that the governance is not fluid. If you look at the PIA, there is a separation of roles between NNPC, the regulators, and the Minister of Petroleum who is to drive the policy framework that creates stability in the governance.

“NNPC is not representing the government per se because it is a player in the industry, and if they (investors) see the NNPC as people driving the policy of the industry, then it is going to send the wrong signal. There is supposed to be a clear separation of roles; the NNPC is supposed to be commercial and not necessarily an agency of the Federal Government driving the policy. The regulators should be seen to be fair and not biased towards the government,” he advised.

NNPC Group Chief Executive Officer, Mele Kyari, has repeatedly blamed the lack of investments in the oil and gas sector on the unrelenting activities of oil thieves and vandals.

During a meeting with the  Economic and Financial Crimes Commission’s Chairman, Ola Olukoyede, in March, Kyari said, “When we say illegal connections, they are not invisible things, they are big pipes that require some level of expertise to be installed. Some of them are of the same size as the trunk line itself. No one would produce crude oil knowing full well that it is not going to get to the terminal. That is why nobody is putting money into the business. So, you can’t grow production.”

“I believe, personally, that the very purpose of your commission is to curtail economic crimes, and there is no bigger economic crime of this scale anywhere else than what is happening in this area,” the GCEO lamented.

Punch

Peter Obi, presidential candidate of the Labour Party (LP) in the 2023 election, has expressed support for the planned nationwide protest scheduled for August 1.

Obi spoke when he visited Alex Otti, the governor of Abia, at his country home in Nvosi, Isialangwa south LGA.

The former governor of Anambra said hunger and hopelessness among youths are the “sponsors” of the planned protest.

Obi said there is nothing wrong in protesting if it is done within the ambit of the law.

“In the Nigerian constitution, protest is allowed. All I plead for is that those who are protesting should do so within the law and in a civil manner,” Obi said.

“When they talk about sponsors of protest, I say the sponsors are very simple. It is hunger and hopelessness among the youth. We have to listen to what Nigerians are going through.

“Security agents should manage the situation within the law, they should not try to be overbearing.

“It should be done within the law. Protest is allowed everywhere, globally.”

Obi asked the federal government to engage and listen to the protesters, adding that there is nothing wrong in the planned demonstration.

The demonstration, dubbed ’10 Days of Rage’, is to protest against the economic hardship in the country.

The federal and state governments, including President Bola Tinubu, have appealed to the youths to shelve the planned protest.

The Cable