Connect with us

Business

CBN Clears $2.062bn In FX Forwards, Releases $61.64m To Foreign Airlines

Published

on

The Central Bank of Nigeria (CBN) has revealed that it disbursed approximately $61.64 million to foreign airlines through various Deposit Money Banks (DMBs) in the country.

Additionally, the CBN has successfully redeemed outstanding forward liabilities totaling around $2 billion in the last three months, bringing the total to approximately $2.062 billion.

This foreign exchange (FX) intervention, confirmed by the CBN’s acting Director of Corporate Communications, Mrs. Hakama Sidi, underscores the bank’s dedication to clearing pending matured foreign exchange in banks and alleviating pressure on the exchange rate.

Sidi clarified that this initiative formed a crucial part of the apex bank’s strategy to reduce its outstanding liabilities with the airlines.

She said, “This underscores the CBN’s commitment to the resolution of pending obligations and a functional foreign exchange market.”

She mentioned that these payments mark a consolidation of CBN’s continuous efforts to settle all remaining valid forward transactions, aiming to alleviate the current pressure on the country’s exchange rate.

Through this recent intervention, the central bank aims to significantly strengthen the naira against major global currencies and bolster investor confidence in the economy.

Moreover, the federal government has recently received $2.25 billion out of a $3.3 billion foreign exchange (FX) facility from the African Export–Import Bank (Afreximbank).

This long-awaited credit support aims to alleviate the acute FX shortage in the country that has constrained economic activities and dampened investors’ confidence.

President Bola Tinubu had previously assured Nigerians in December of his administration’s dedication to resolving the FX backlogs by injecting funds into the market.

It’s estimated that existing FX backlogs range between $7 billion and $10 billion, requiring clearance to enhance investor confidence.

Some investors have already departed due to persistent liquidity constraints affecting the economy.

Afreximbank, serving as the mandated lead arranger, in conjunction with United Bank for Africa (UBA) as the local arranger, finalized a $3.3 billion liquidity support for Nigeria through a structured financing arrangement with the Nigerian National Petroleum Company (NNPC).

It was gathered that the transaction, releasing $2.25 billion as the initial tranche into the nation’s coffers, aims to alleviate FX illiquidity in the country.

The remaining balance is anticipated to arrive this month, with UBA serving as the onshore depository bank for the transaction.

The deal involves other key players such as Gunvor, Sahara Energy, and additional major oil traders set to join the parties.

Aligned with Tinubu’s Renewed Hope Agenda, this transaction aims to stabilize the FX market and alleviate the inflationary pressures that have affected the Nigerian economy since the administration’s inception.

 

Business

Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

Published

on

Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

Continue Reading

Business

FHC Orders NUPRC to Comply with PIA

Published

on

Continue Reading

Business

Local Firms Lead Revival of Idle Oil Wells – SPE

Published

on

Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x