Economy
NCDMB to Launch New Contracting Cycle Guidelines to Boost Oil Production
By Adedapo Adesanya
The Nigerian Content Development and Monitoring Board (NCDMB) has announced plans to launch new Contracting Cycle Guidelines for the oil and gas industry.
This is in line with President Bola Tinubu’s directives for acceleration of oil and gas contract timelines, incentivising investments in the sector and increasing Nigeria’s crude oil production, according to the Executive Secretary of the NCDMB, Mr Felix Omatsola Ogbe.
He announced this at the two-day Contracting Cycle Guidelines Sensitization Workshop organized by the Project Certification and Authorization Directorate of the Board for international and indigenous oil and gas companies operating in the country.
The workshop provided a platform for NCDMB to explain the provisions of the guidelines and how it would implement them in alignment with the Nigerian Oil and Gas Industry Content Development, NOGICD, Act and the Presidential Directives.
Mr Ogbe represented by the Director of Project Certification and Authorization at the commission, Mr Abayomi Bamidele, emphasised that NCDMB was a business enabler hence the decision to get stakeholders’ feedback before finalizing and launching the guidelines at the forthcoming Practical Nigerian Content Workshop slated for December 3-5, 2024 at the Nigerian Content Tower, Yenagoa, Bayelsa State.
To further assist the companies, he promised that NCDMB would convene a technical workshop in the first quarter of 2025 to train personnel of operating and service oil and gas companies on how to efficiently complete various technical documents utilized in oil and gas contracting process.
“The three Presidential Directives are the Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines; and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc).”
Commenting on the objectives of the Presidential Directives, Mr Ogbe canvassed that for Nigeria to deepen local content practice and grow the sector, it must eliminate premium margins charged by some service companies, stop frequent policy changes and ensure that final investment decisions were signed regularly, to catalyse new projects.
He recommended that at least one or two FIDs should be signed at the annual oil and gas conferences, to create activities in the sector.
“The Presidential Directive on Local Content Compliance addressed issues pertaining to NCDMB, while the Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines referred to NCDMB and the Nigerian National Petroleum Company and its investment arm, the NNPC Upstream Investment Services, NUIS.
“NCDMB is working to support oil firms to accelerate their projects and take advantage of the incentives provided by the Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission,) etc,”
“The Board was mandated to develop templates to collapse its touchpoints on the contracting cycle to enhance the business environment within the provisions of the law.
“Accordingly the Board has reduced its touchpoints from nine to five for open tenders and selective tenders, while retaining only four touchpoints for single source contract.
“Another goal of the Presidential Directive is to eliminate intermediaries with no demonstrable capacity and to develop structured processes to determine, verify and document in-country capacities and capabilities.
“The Board has adopted robust pre-qualification and technical evaluation process, policy revisions to provide clarity on in-country value addition for OEM representatives and in-country capacity audit every two years.
“Another objective of the Presidential Directive is to target global benchmarks. Thus, NCDMB is proposing the co-creation of tender cost templates/tariffs, the promotion of joint venture of local/foreign service companies, the adoption of robust waiver management system by the Board and conveyor belt of at least two final investment decision (FID) per year.”
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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