Economy
NCDMB Boss Tasks Local Firms to be Competitive
By Dipo Olowookere
Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, has advised local service companies and manufacturers to strive to be competitive and adjust their business models in line with trends to stay in business.
Mr Wabote gave this charge while speaking on the Requirements for Sustainable Growth of Manufacturing in Nigeria’s Oil & Gas Sector, at the Nigerian International Pipeline Technology and Security Conference organized by the Pipeline Professionals Association of Nigeria in Abuja recently.
According to him, the board will continue to ensure patronage of local businesses in line with the provisions of the Nigerian Content Act and Presidential Executive Order 003, but companies that set their prices above reasonable thresholds will not be supported.
“It must be stated that local content is not at all cost. There is a level of premium that becomes un-economic for patronage and there is little the Board can do in such situations,” he said.
He commended the Federal Government for promoting the Local Content policy through various initiatives, one of which is the Executive Order 003, which mandates all Ministries, Departments and Agencies to give consideration for the procurement of at least 40 percent made-in-Nigeria products and services across all sectors of the economy.
Speaking further, the Executive Secretary listed requirements that would make the nation’s manufacturing sector grow, including the provision of steady power supply and patronage of locally manufactured goods.
He also gave an insight into some achievements recorded by the Board, including an increase of in-country value addition from the paltry five percent level to 26 percent.
Mr Wabote mentioned the existence of two world-class pipe mills, five pipe coating yards, the increase in the number of Nigerian-owed marine vessels to 36 percent, resuscitation of moribund dry-dock facilities and local manufacturing of electrical cables required in the oil and gas industry. He further stated that Nigeria has also grown its fabrication capability to over 60,000 metric tonnes per annum and has capacity to carry out over 80 percent of engineering design in-country.
Other achievements of the Board include the creation of over 30,000 direct jobs, delivery of over six million training man-hours, award of over 90 percent of industry contracts to Nigerian companies, growth of indigenous operating companies and construction of facility for in-country integration of Floating, Production, Storage and Offloading vessels.
In his speech at the event, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Kacalla Baru, described pipeline vandalism as a great threat to Nigerian economy, both in terms of revenue lost and environmental effects and charged key players in the industry to confront the challenge.
He insisted that pipelines remained the cheapest means of transporting crude oil and natural gas, regretting that the Trans Niger Pipeline (TNP) with a capacity of 150,000 barrels of production per day (Bopd) was breached 39 times in 2016. “Year-to-date 2017, we have recorded 27 breaching incidents on the TNP,” he said.
The GMD added that “for the Trans Forcados Pipeline (TFP) with a capacity of 300,000 Bopd, recorded 17 breaches in 2016 while year-to-date 2017, we have recorded at least 15 breaching incidents on the TFP.”
Mr Baru also lamented that about 700,000 barrels of oil per day was deferred due to pipeline vandalism in 2016 “while power generation in the country dropped significantly as the gas plants had to shut down thereby resulting in shortages in gas supply to power.
“At present, huge amount of money is spent on protecting these pipelines which significantly add to the cost of production,” he added.
By Adedapo Adesanya
Nigeria added 150,000 barrels per day to its crude production in November 2024 as it continues to pursue an ambitious 2 million barrels per day target.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s oil production rose to 1.48 million barrels per day in November, up from 1.33 million barrels per day the previous month.
In its Monthly Oil Market Report (MOMR), OPEC revealed that at 1.48 million barrels per day, it is the continent’s leading oil producer, surpassing Algeria’s 908,000 barrels per day and Congo’s 268,000 barrels per day.
Business Post reports that OPEC doesn’t account for condensates, which Nigeria’s accounts for in its broader 2 million barrels per day target.
Despite the surge in production levels, Nigeria is still under producing its 1.5 million barrels per day output quota under a deal involving OPEC and 10 other producers known as OPEC+.
OPEC said it relied on primary data gotten through direct communication, noting that secondary sources reported 1.417 million barrels per day as Nigeria’s crude production in November — up from 1.4 million barrels per day in October.
The data also shows that OPEC’s total oil production among its 12 members rose by 104,000 barrels per day in the month under review.
According to secondary sources, the total of the 12 OPEC countries’ crude oil production averaged 26.66 million barrels per day in November 2024.
“Crude oil output increased mainly in Libya, Iran, and Nigeria, while production in Iraq, Venezuela, and Kuwait decreased”, OPEC said.
“At the same time, total non-OPEC DoC crude oil production averaged 14.01 mb/d in November 2024, which is 219 tb/d higher, m-o-m. Crude oil output increased mainly in Kazakhstan and Malaysia,” the organisation added.
In a related development, OPEC trimmed its 2024 and 2025 oil demand growth forecasts for the fifth time this year.
Now, the cartel expects the world’s oil demand growth at 1.61 million barrels per day from the previously 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, a 900,000 barrels per day cut from the previously expected 1.54 million barrels per day.
On the changes, OPEC says that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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