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World Bank deploys $114.9 to finance global crises in 2022

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World Bank deploys $114.9 to finance global crises in 2022

The World Bank Group says it has responded to the overlapping global crises by deploying 114.9 billion dollars in financing in 2022.

This is contained in a statement obtained from the World Bank website by the News Agency of Nigeria (NAN) on Saturday in Abuja.

The bank said in its just completed 2022, from July 1, 2021, to June 30, 2022, it responded with unprecedented scale to overlapping global crises.

It said it provided advice and financing in response to the sharpest economic slowdown in eight decades, rising inflation, deepening food insecurity, war and fragility, and the continued negative impact of the COVID-19 pandemic.

“Amid these devastating crises, the World Bank Group deployed a record 114.9 billion dollars in the year under review.

“Commitments during the year were informed by our knowledge work and helped countries address rising food prices, manage refugee flows, and bolster health preparedness

“The bank also helped maintain private sector trade, and support efforts to mitigate and adapt to climate change, among others, benefitting especially the poor and most vulnerable.”

The statement quoted the World Bank Group President, David Malpass, as saying “developing countries are facing multiple challenges from war to surging food and energy prices.

“This deepens inequality and leads to reversals in development gains.”

Malpas said the World Bank Group had responded with urgency, scale, and impact.

“We have committed consecutive surges of financing, analytical support, and policy advice. First in response to the COVID-19 pandemic, and now to address the food crisis, the war in Ukraine, and its spillover effects.”

The statement said the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), both part of the World Bank committed 70.8 billion dollars in assistance in 2022.

According to the statement, its highest ever level of commitments is nearly 70 per cent higher than the pre-crisis average of commitments from 2013 to 2019.

READ ALSO: NDIC Declares Nigerian Banking Sector Shock-Proof

“That figure included 33.1 billion dollars from IBRD in support to middle-income countries as well as a few higher-income countries.

“With 37.7 billion dollars in grants and zero-or low-interest loans to the world’s poorest countries from the IDA.”

The statement said that since the start of the COVID-19 pandemic, total World Bank Group financing reached 272 billion dollars, including 52.6 billion dollars in the last quarter of 2022.

It said as of June 30, 2022, the World Bank had approved 10.1 billion dollars in financing for vaccine acquisition and deployment in 78 countries, of which 4.6 billion are for 42 countries in Africa.

“Over 600 million doses have been contracted with approved bank financing, of which more than 430 million have been delivered.”

It said the bank was also setting up a financial intermediary fund to strengthen pandemic Prevention, Preparedness, and Response (PPR) capacities at national, regional, and global levels, with a focus on low- and middle-income countries.

“With over one billion dollars in financial commitments already announced, the fund will bring additional, dedicated resources for PPR, to incentivise countries to increase investments, enhance coordination among partners, and serve as a platform for advocacy.”

According to the statement, for the 15 months from April 2022 to June 2023, financing is expected to reach 170 billion dollars.

It said an important component of this funding would be devoted to food security, including social protection and projects in agriculture, nutrition, water, and irrigation.

“The World Bank has made available about 30 billion dollars over these 15 months as part of a comprehensive, global response to the ongoing food security crisis.

“Some 12 billion dollars of which will be new lending, informed by our substantial data and analytical work on food and nutrition systems.

“Since April 1, the World Bank has delivered 32 food-crisis related operations and committed 5.3 billion dollars in this area.”

The statement also said that the bank continued to rapidly increase its climate financing in 2022, in line with the World Bank Group’s Climate Change Action Plan (CCAP) for 2021-2025.

“The World Bank’s climate finance totalled a record 26 billion dollars which accounts for 37 per cent of commitments in 2022, an 83 per cent increase from 14.2 billion dollars in 2019.

The World Bank Group said it played a critical role in building and enabling the private sector in developing countries, which it does through the International Finance Corporation (IFC).

It said the IFC had a record year in 2022 with commitments reaching an all-time high of 32.8 billion dollars, including 12.6 billion dollars of commitments for IFC’s own account.

“Out of the 12.6 billion dollars, 3.5 billion dollars went to IDA countries and Fragile and Conflict-affected Situations (FCS).

It said the Multilateral Investment Guarantee Agency (MIGA), which mandate was to drive impactful foreign direct investment to developing countries, issued 4.9 billion dollars in new guarantees.

It said out of the 4.9 billion dollars, 32 per cent was in IDA countries, 12 per cent was in FCS countries, and 28 per cent supported climate finance.

The statement further said progress was also made in efforts to fully incorporate women into economies.

According to the statement, an unprecedented 90 per cent of the World Bank’s 2022 operations are helping to close gender gaps, well above corporate commitments. (NAN)

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

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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.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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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.”

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