Economy
Energy Firms in Nigeria Flare N106.2bn Gas in Q1 2022
By Adedapo Adesanya
Energy firms operating in Nigeria’s onshore and offshore oilfields flared 73 billion standard cubic feet (SCF) of gas in the first quarter of 2022.
In the first three months of this year (January to March 2022), the total amount of gas flared translated to a loss of $255.7 million to the country, an equivalent of N106.2 billion.
According to gas flare data released by the National Oil Spill Detection and Response Agency (NOSDRA), this represented a decline of 19.2 per cent in both volume and value compared to the 90.4 billion SCF of gas, valued at $316.4 million (|N131.4 billion), flared in the same period in 2021.
The report of the oil spill tracking and reporting agency further pointed out that the 73 billion SCF of gas flared between January and March 2022 was equivalent to carbon dioxide emissions of 3.9 million tonnes and has a power generation potential of 7,300 gigawatts hours of electricity.
In addition, the report stated that the defaulting companies are expected to pay penalties of $146.1 million, an equivalent of N60.68 billion, noting, however, that the majority of the fines are never collected.
In contrast, the report noted that in the period, January to March 2021, the 90.4 billion SCF of gas flared was equivalent to 4.8 million tonnes of carbon dioxide emissions; has a power generation potential of 9,000 gigawatt hours of electricity; while the companies are liable to a fine of $180.8 million, about N75.09 billion.
Giving a breakdown of the gas flared in the three months period of 2022, NOSDRA explained that companies operating onshore flared 43.1 billion SCF of gas, valued at $150.9 million, about N62.67 billion, liable for the payment of penalties valued at $86.2 million, an equivalent of N35.8 billion; was equivalent of 2.3 million tonnes of carbon dioxide emissions and power generation potential of 4,300 gigawatt hours of electricity.
NOSDRA reported that the onshore companies flared 19.14 billion SCF, 14.03 billion SCF and 9.94 billion SCF of gas in January, February and March 2022, respectively.
In contrast, offshore companies, the report noted, flared 29.9 billion SCF of gas valued at $104.8 million (N43.53 billion); penalties payable at $59.9 million (N24.88 billion); equivalent to 1.6 million tonnes of carbon dioxide emissions and power generation potential of 3,000 gigawatts hours of electricity.
In particular, NOSDRA stated that offshore companies flared 10.83 million SCF, 13.09 billion SCF and 6.01 billion SCF of gas, respectively, in January, February and March 2022.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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