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Oil revenue dips amid fresh Niger Delta agitation…..

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Despite huge investments in the oil sector, the country’s crude oil revenue has continued on a downward trajectory. This is as militants have threatened to resume attacks on critical oil installations in the Niger Delta, writes OPEOLUWANI AKINTAYO

The country has been struggling with revenue shortfall for some time due to oil theft in the Niger Delta. The recent threats by a Niger Delta militant group, Creek Reform Warriors, to vandalise major oil platforms in the region would worsen the country’s cash crunch. Nigeria earns about 80 per cent of its revenue from crude oil exports.

From January to May, the net oil export revenue of the country experienced a significant decline of 66 per cent, falling to $11bn, against the $34bn earned during the same period last year, according to data obtained from the Organisation of Petroleum Exporting Countries Revenue Factsheet released by the U.S. Energy Information Administration.

It earned about $46b from oil in 2022, according to the National Bureau of Statistics.

Its oil output fluctuated between 985,000 barrels per day in the third quarter of last year and 1.2b million b/d in Q4. It dipped further to 999,000 barrels in April before picking up again in May to 1.1mb/d.

In contrast, Saudi Arabia and the United Arab Emirates have plans in place to significantly boost their production capacity to 13 million bpd and 5 million bpd, respectively, by 2027. Both countries currently produce about 12 million/bpd and 4 million/bpd.

Fellow Gulf producer Kuwait on June 18 also said it would boost its production capacity by 200,000 bpd by 2025 to reach 3 million bpd.

Capacity additions from the three Gulf countries over the 2020-2025 period total a combined 1.2 million bpd, double the capacity that Nigeria and Angola are projected to lose over the same period, according to a Reuters calculation.

A similar report by the agency published by The PUNCH, had said that the country’s combined production quota of Angola in the ongoing OPEC cuts dropped by over 3 per cent to below 9 per cent in May.

The country’s OPEC quota had dropped from 1.8mb/d to 1.3mb/d in May as its capacity continues to be restricted by operational and security issues, combined with low investment levels, leading to decline.

In May, while Saudi Arabia, the UAE and Kuwait’s shares of total OPEC production was over 10 per cent higher than it was 15 years ago at 55 per cent, Nigeria and Angola’s total shares over the same period shrank by over three per cent to below nine per cent.

Unlike Gulf producers, African producers rely heavily on investment from international oil companies. Those companies have shunned Africa in recent years in favour of investment in the US shale patch and in prolific giant oilfields elsewhere such as offshore Brazil and Guyana.

The EIA in one of its reports said Nigeria was no longer Africa’s highest crude oil producer due to disruptions, which were threatening its production outputs.

“For many years, more crude oil was produced in Nigeria than in any other country in Africa. However, unplanned production outages—or disruptions—in Nigeria have, at times, resulted in its crude oil production falling below that of Angola, the second-highest producing country in Africa. Disruptions remain a significant and persistent downside risk to Nigeria’s crude oil production,” the report said.

The EIA, however, projected that Nigeria’s earnings would increase to about $29b in the same period (January-May) in 2024.

The report revealed that Angola, which was the closest continental rival to Nigeria in oil export, made about $12b within the period, while Saudi Arabia, the highest oil producer in OPEC realised $97bn.

Meanwhile, the entire OPEC members earned about $888bn in net oil export revenue in 2022. The revenue rose nearly 43 per cent compared with the previous year, according to the EIA.

“The increase in net export revenue in 2022 is mostly attributable to higher crude oil prices and to a lesser degree to higher petroleum liquids production,” the EIA said in the fact sheet.

OPEC’s total oil output rose to nearly 34.2 million barrels per day in 2022 and increased by 2.5 million barrels per day year-on-year, according to the report.

“We expect OPEC total oil liquids production to decrease to 33.5 million barrels per day in 2023, while the forecast Brent spot price will fall from $101 per barrel in 2022 to $80 per barrel,” it added.

The organisation projected that OPEC’s net oil export revenue would go on to increase in 2024.

“In tandem with a forecast increase in OPEC output in 2024, based on the June 2023 STEO, we expect that OPEC net export revenue will rise to $682bn,” the EIA stated in the sheet.

“We forecast that global crude oil prices will increase in 2024, reflecting global oil inventories that will decrease in each of the next five quarters,” the EIA added.

According to the fact sheet, the top five OPEC countries in terms of net oil export revenue will remain the same as 2022 and 2021 in both 2023 and 2024, although the exact figures will alter.

The report revealed that Saudi Arabia had the highest net oil export revenue among OPEC members last year at $311b. The fact sheet placed Iraq in second, with $131b, the United Arab Emirates in third, with $119b, Kuwait in fourth, with $98b, and Iran in fifth, with $54b.

The fact sheet sees Saudi Arabia’s net oil export revenue coming in at $215bn in 2023 and $223bn in 2024.

According to it, Iraq’s net oil export revenue would hit $96bn in 2023 and $103bn in 2024, the UAE’s net oil export revenue at $91bn in 2023 and $92bn in 2024.

It added Kuwait’s net oil export revenue would be $74bn in 2023 and $77bn in 2024, and Iran’s net oil export revenue at $44bn this year and $48bn next year.

Apart from security challenges, international oil companies had begun divesting from Nigeria, thereby slowing exploration for fresh oil.

However, The PUNCH recently exclusively reported how Shell Global had directed its Nigerian affiliate, Shell Petroleum Development Commission to ramp up exploration in the coming months.

Shell wants to increase earnings due to low income from renewables.

According to the report quoting a company source, Shell’s Chief Executive Officer, Wael Sawan, wants to keep oil and gas profits booming in order to regain investors’ confidence.

Threat in Niger Delta

Amid the dwindling low oil revenue, a self-acclaimed Niger Delta militant group, Creek Reform Warriors, threatened to resume attacks on major oil facilities in the region.

In a statement, the group particularly threatened to attack facilities operated by the Shell Petroleum Development Company of Nigeria, over alleged unjust sacking of some workers in Forcados terminal.

The leader of the group, Igbokuro Tinowei, demanded the reinstatement of all workers from the Ogulagha and Odimodi communities, who according to him, were sacked unjustly by SPDC in 2019.

He claimed that the IOC had promised to recall the sacked workers immediately after the COVID-19 pandemic, but serially defaulted,

He warned the management of SPDC to reinstate the said workers within two weeks or face dire consequences of brutal attacks.

The group urged President Bola Tinubu to intervene and persuade SPDC management to reinstate the dismissed workers. It emphasised that the repercussions of the attacks on Shell facilities would have a detrimental effect on the country’s oil production quota and the already struggling economy.

The statement read in parts, “If these workers from Ogulagha and Odimodi communities are not called, all SPDC operations in the Niger Delta, including their pipelines, will be shut down. This is going to be a do-or-die.

“We are not joking. We are a deadly and dangerous group in the Niger Delta region. We have a team of specialists in different fields of the world. Our struggle is for the liberation of our people from unemployment in the hands of Shell Petroleum Development Company Limited (SPDC) and other International Oil Companies (IOCs) operating in the region.

“We can boldly tell the world that all preparations and plans are on the ground to bring down the Nigerian crude oil production to zero per cent and this will continue until the IOCs employ our people. There will be no going back,” the group said.

SPDC’s spokesperson did not respond to enquiries on the allegations and threat on its installations.

FG to renegotiate OPEC quota

Amid the uproar, the Nigerian national Petroleum Company Limited said the Federal Government would renegotiate the country’s production quota in the ongoing OPEC+ cuts by November.

Group Chief Executive Officer, Mele Kyari, during a live interview with Bloomberg, said the country was working towards ramping up crude oil production by about 200,000 to 300,000 barrels per day latest by October.

According to him, the government would then push for an increased quota at the next OPEC+ meeting in November.

“OPEC understands that it is not that Nigeria does not have what it takes to produce more crude, but the challenge has been in terms of security, and everything we are doing to combat insecurity in the Niger Delta is working.

“OPEC has now given us (Nigeria) a target to increase production between now and October, and that figure is going to be worked with. I think it’s very practical to get to between 1.5/1.6mpd by October,” Kyari said.

Nigeria’s crude oil production, including condensates, is around 1.3 million barrels per day, according to Kyari.

The OPEC and its partner, Russia, also known as the OPEC+ are currently cutting oil exports to boost prices.

The NNPCL boss said the current production was “nowhere near Nigeria’s capacity”.

“We have a clear case during the COVID. We had the capacity to do close to 2.1mb/d. So, we know we have the capacity. The issues are around the pipeline, and once we are able to resolve the challenges, then, we can produce higher,” he added.

 

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Just In: Nasir El-Rufai quits APC, joins SDP

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Nasir El-Rufai, former Governor of Kaduna State and a founding member of the All Progressives Congress (APC), has announced his defection from the ruling party to the Social Democratic Party (SDP).

 

In a statement released on Monday, March 10, 2025, El-Rufai explained that his decision was primarily driven by a growing misalignment between his personal values and the direction of the APC.

 

The Kaduna politician expressed his disappointment with the leadership of the APC, accusing the party of straying from the progressive ideals upon which it was founded.

 

 

El-Rufai shared that he had raised concerns about the party’s trajectory both privately and publicly over the past two years but found no willingness among the current leadership to address these issues.

 

Read the full statement below:

 

As a founding member of the All Progressives Congress (APC), I have fond memories of working with other compatriots to negotiate the merger of political parties that created the APC. It had been my hope since 2013 that my personal values and that of the APC will continue to align up to the time I choose to retire from politics.

 

Developments in the last two years confirm that there is no desire on the part of those who currently control and run the APC to acknowledge, much less address, the unhealthy situation of the party.

 

On my part, I have raised concerns in private and, more recently, in public regarding the capricious trajectory of the party. Therefore, at this point in my political journey, I have come to the conclusion that I must seek another political platform for the pursuit of the progressive values I cherish.

 

Founders rightly feel attached towards institutions they helped create, but one must be pragmatic enough to admit when a divergence appears unbridgeable. I have diligently served the APC and made my contributions to its viability as a political platform, but I recognize that the party has since strayed and left me stuck in the vision of its well-meaning founding fathers and mothers.

 

As a loyal party man, I worked to help secure the APC’s election victories in 2015, 2019 and 2023. I was one of the many governors elected on the party’s platform in 2015 and 2019, that stood for certain democratic and progressive principles to advance nation-building. My eight-year tenure in Kaduna State was devoted to implementing progressive policies to advance human development in education and healthcare, as well as expand infrastructure, promote equality of opportunity, create jobs and attract investments.

 

These records count for little in the current APC that has castrated its organs and treated its membership with contempt in the last two years. I find this no longer acceptable.

 

 

Today, 10th March 2025, I have submitted a letter resigning my membership of the APC to my ward in Kaduna, effective immediately.

 

 

Prior to this step, I had concluded consultations with my mentors, colleagues and loyalists across the country about the future. I have now decided to join the Social Democratic Party (SDP), and adopt it as the platform for our future political engagements and activities.

 

 

Without prejudice to this decision, as a member of the SDP, I will focus on engaging with and persuading other opposition leaders and parties to join us and congregate under a unified democratic platform to challenge the APC in all elections and bye-elections between now and 2027 by the Grace of God. I therefore call on all our supporters and other persons concerned about our country’s future to join us in the SDP in the journey towards making Nigeria flourish as a beacon of pride for Africans and the Black Race.

 

Thank you and God Bless the Social Democratic Party.

 

 

God Bless the Federal Republic of Nigeria.

 

Nasir Ahmad El-Ru

fai, CON

Abuja, Nigeria

10th March 2025

 

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Yahaya Bello paid $845,852 in advance for his children’s school fees – Witness

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An official from the American International School, Abuja, on Wednesday testified in the Federal High Court in a case of money laundering involving former Kogi State Governor Yahaya Bello.

 

The official revealed that the former governor paid a total of $1,606,763.68 in school fees for his children.

 

Nicholas Ojehomon, an auditor at the school, gave this testimony during the ongoing trial, where he appeared as a prosecution witness for the Economic and Financial Crimes Commission (EFCC). Ojehomon confirmed that the payments covered Bello’s children’s tuition fees up until their graduation, with part of the amount paid upfront for future school fees.

 

Bello is facing a fraud charge amounting to N80.2 billion filed by the EFCC. During the trial, the prosecution presented financial records, including detailed statements from the school, showing payments made on behalf of Bello’s children.

 

In earlier testimony, Williams Abimbola, a compliance officer at United Bank for Africa (UBA), had submitted documents showing transactions related to the school fees. The EFCC had previously alleged that just before leaving office, Bello paid $760,000 as an advance for his children’s school fees, which was later refunded following an investigation.

 

On Thursday, Ojehomon testified that Bello’s brother, Ali Bello, facilitated the school fee payments. He explained, “Mr. Ali Bello contacted the American International School, Abuja, on Friday, August 13, to arrange payment for the school fees of the Bello children until they graduate. The school management accepted the payment.”

 

 

Ojehomon confirmed that the payments were made for four of Bello’s children, enrolled in Grades 8, 6, 4, and 2, and also included fees for future children who were expected to start in August 2022, assuming space was available.

 

The amounts paid for each child included: $90,074 for the child in Grade 8, $87,470 for the child in Grade 6, $26,241 for the child in Grade 4, and $18,707 for the child in Grade 2.

 

The witness also identified a contractual agreement between the school and Ali Bello, detailing the prepayment arrangement.

 

 

EFCC counsel Kemi Pinheiro (SAN) presented the school’s admission and prepaid tuition documents as evidence. Ojehomon further testified that a refund of $760,910.84 was made to the EFCC, confirming that the refund was transferred to an account at the Central Bank of Nigeria.

 

The court also heard from Williams, the UBA witness, who submitted additional financial documents related to accounts managed under Bello’s administration. She testified that multiple withdrawals were made through cheques from the Kogi State Government House account, often broken into tranches of N10 million, with funds primarily issued to two individuals, Abdulsalam Hudu and Aminu J.O.

 

Williams confirmed that, on December 12, 2018, ten transactions of N10 million each were processed in favor of Abdulsalam Hudu. Key signatories to the account were also named, including Christopher Enefola (Permanent Secretary), Onekutu Daniel (Chief Accountant), and Abdulsalam Hudu (Accountant).

 

 

However, under cross-examination, Williams admitted that Yahaya Bello’s name did not appear in any of the transactions related to the Kogi Government House account. Defense counsel, Daudu, noted that Bello’s name was absent from the documents presented, to which Williams confirmed it was not listed. She further clarified that she was not the account officer in charge of the Kogi Government House account, which was managed from Lokoja, Kogi State, rather than her branch in Area 3, Abuja.

 

Justice Emeka Nwite adjourned the trial to Friday, March 6, for further proceedings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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VICE PRESIDENT SHETTIMA TO ATTEND NACC 65TH ANNIVERSARY GALA IN LAGOS

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The Nigerian-American Chamber of Commerce (NACC) is set to celebrate its 65th anniversary with a grand gala dinner, featuring His Excellency, Vice President of Nigeria, Alhaji Kashim Shettima, as the Special Guest of Honour.

 

The prestigious event will take place on April 12, 2025, at Lagos Continental Hotel, Victoria Island, Lagos, with the red carpet reception commencing at 5:00 PM.

 

The highlight of the evening will be the inauguration of Alhaji Sheriff Balogun as the 20th President of NACC.

 

Alhaji Balogun will also unveil his leadership team, while outlining strategic initiatives to strengthen bilateral trade relations between Nigeria and the United States.

 

As part of the evening’s programme, 40 new members will be inducted into the chamber, and the NACC multi-storey building project will be officially launched.

 

The gala will also honour outstanding Nigerian and American companies and distinguished individuals, including past presidents of the chamber, for their contributions to economic growth and trade relations.

 

The President of Africa Finance Corporation (AFC), Mr. Samaila Zubairu, will chair the event.

 

Dignitaries confirmed to attend include Governor Uba Sani of Kaduna State, Governor Dauda Lawal of Zamfara State, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, Founder and Chairman of Elizade Group, Chief Michael Ade-Ojo and Chairman of Odu’a Group, Otunba Bimbo Ashiru.

 

Others are Founder of Afe Babalola University, Aare Afe Babalola, Chairperson of Brittania-U Nigeria Limited, Catherine Uju Ifejika, Comptroller General of the Nigerian Customs Service, Bashir Adewale Adeniyi, and Chairman of Zinox Technologies Limited, Leo Stan Ekeh.

 

His Excellency, Governor Babajide Sanwo-Olu of Lagos State, will serve as the Chief Host of the occasion.

 

For 65 years, the Nigerian-American Chamber of Commerce has been at the forefront of fostering bilateral trade relations between Nigeria and the United States, serving as the premier platform for business growth, networking, and investment opportunities.

 

The Chair of the Planning Committee, Dr.Ikenna Nwosu, says all the guests will be treated to one of the grandest anniversary galas ever experienced in the country.

 

 

*VICTOR OJELABI*

Senior PR Associate

Neo Media & Marketing | Chair, Publicity Committee, NACC Presidential Inauguration Dinner & Awards Night

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