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Economy

GE to Help Raise Output of Shell’s Afam VI Plant in Nigeria

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By Dipo Olowookere

Aligning with Nigeria’s energy strategy for the future, GE’s Power Services business has announced signing a Multi-year Service Agreement (MYA) with Shell Petroleum Development Company (SPDC) for its 650MW Afam VI combined cycle power plant located in the South-eastern part of the country.

The plant, which provides enough electricity equal to power over 3 million Nigerian homes at peak performance, will expect to improve its availability, reliability and output for up to 200,000 Nigerian homes, while decreasing its operational costs.

SPDC and its partners in the joint venture operate and built the plant in a significant contribution to help meet Nigeria’s electricity needs.

“At optimal performance, the Afam VI plant can provide up to 15% of the total national grid-connected electricity, this agreement will ensure we reach this performance objective and deliver much needed power to the national grid, said Dr. Philip Mshelbila, General Manager, Gas of SPDC.

“Since its commissioning in 2008, Afam VI Power Plant has delivered more than 25.97 million Megawatt-hour (MWh) of electricity into the Nigerian market and won an award by the United Nations for reducing carbon emissions through environment-friendly operations” he added.

The agreement will cover planned maintenance for the three existing GE GT13E2 gas turbines as well as one GE steam turbine. In addition, the order includes GE’s MXL2 upgrades to help increase the plant capacity by up to 30MW while increasing its efficiency.

“We have a long history of collaboration with Shell Petroleum, which has the largest footprint of all the international oil and gas companies operating in Nigeria, having supported the plant operations on power generation since its inception in 2008” said Elisee Sezan, General manager, GE’s Power Services business for Sub-Saharan Africa. “With this latest agreement, we are working to bring improved performance and enhanced efficiency to their operations.”

In addition to increasing power output by up to 30MW, upgrades on the turbines are expected to deliver a combined-cycle efficiency increase, resulting in significant fuel savings and reduced CO2 emissions. GE’s solutions will also extend inspection intervals for the gas turbines reducing maintenance and repair expenses—which, in turn, will reduce overall plant costs and result in improving profitability.

GE’s GT13E2 gas turbine offers industry-leading efficiency with up to 55% efficiency levels in combined cycle operation, superior fuel versatility that enables a wide range of fuel compositions without hardware changes while substantially extending standard inspection intervals. Its unique operating profile capability offers the potential for financial savings by allowing customers to react quickly to fluctuating power demands, while keeping costs in line.

“With less than 50% of the population having access to electricity, Nigeria needs power.” said Lazarus Angbazo, CEO GE Nigeria. “This agreement demonstrates GE’s unwavering commitment to continuously collaborate with public and private institutions to drive investment and innovative technologies in the power generation industry” he added.

GE has been operating in Nigeria for over 40 years, with more than 900 employees, 90% of whom are Nigerians. The company has businesses spanning across key sectors including oil and gas, power, healthcare and rail transportation.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Economy

FAAC Disburses 1.727trn to FG, States Local Councils in December 2024

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faac allocation

By Modupe Gbadeyanka

The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.

The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.

At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.

According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.

It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.

The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.

The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.

As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.

From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.

Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.

In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.

Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.

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Economy

Okitipupa Plc, Two Others Lift Unlisted Securities Market by 0.65%

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Okitipupa Plc

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.

On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.

Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.

Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.

At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.

In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.

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Economy

Naira Trades N1,533/$1 at Official Market, N1,650/$1 at Parallel Market

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Naira at P2P Market

By Adedapo Adesanya

The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1  on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.

The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.

The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.

The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.

Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.

In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.

At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.

Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).

Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

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