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NNPC Gets DPR Support to Strengthen Energy Sector



DPR Abuja headquarters

By Adedapo Adesanya

The Department of Petroleum Resources (DPR) has pledged to support the Nigerian National Petroleum Corporation (NNPC) to deliver value to Nigerians in the energy sector.

The Director/Chief Executive Officer of the DPR, Mr Sarki Auwalu, gave this assurance when a delegation of the NNPC management team led by the Group Managing Director, Mr Mele Kyari, visited his office in Abuja on Tuesday.

The DPR chief said that as a regulator, it does not stand to look for faults, rather, it helps operators to deliver on business mandates to boost economic activities.

“Being a regulator is trying to catch people that you regulate doing something right, not the other way round; it is better for us to come together like you have done today.

“The most important thing for us is to help operators do something right. Our own is to enable business and create opportunity, and for everything we do, especially for our own company like NNPC, it is to ensure the success of the company.

“This is because the success of the company is the success of Nigeria, and coming together like this is great, and that is why we are excited that the GMD and his team are visiting us, the first in the history of this organisation,” he said.

According to him, the move goes down to change the history and to prove that they are all for Nigeria and the success of the business of oil and gas in our country.

He said that working together would encourage transparency and efficiency, adding that it was a commitment to business and efficiency that brought the NNPC to a profit company.

Mr Auwalu commended the GMD for the various landmarks that had helped to transform the operations of the NNPC which history will not forget.

“Today, in the whole world after 44 years, this is the first year NNPC has recovered and declared profit.

“We are proud of it and we put our head high in the comity of nations that our biggest corporation in Nigeria is no longer the way it is being seen,” he said

He noted that energy security and availability of gas through the East-West pipeline (OB3), Trans Niger pipeline, which the GMD was championing, would help to tackle poverty in the country.

He thanked Mr Kyari for making out time to visit the DPR and assured him of the support of the department to create success in all the corporation was doing.

“What we are doing is to guarantee the success and stability of what you have already done.

“DPR, looking at the success and strategy you embarked on, had created a platform to help consolidate the assets, the licenses, permits and approvals we have issued,” he said.

He noted that DPR was committed to oil exploration in the country and appreciated the effort of NNPC to ensure that more volumes were out to help the country make more money through royalties.

The DPR helmsman also commended NNPC’s effort to enhance production and encourage new production reservoirs.

He noted that the reserve to production ratio was not equal, adding that the profit declared by NNPC had opened a floodgate for investors to the country.

On his part, Mr Kyari thanked the DPR for the support it had been giving to the corporation, which had helped the NNPC operations.

“The fate of the oil and gas industry rests in the hands of DPR and the NNPC, and by implication, the prosperity of the country rests in the hands of the two organisations.

“As we go through the journey of transition to deepen gas penetration and monetisation in the country, to ensure that we create new gas industry, to process new oil, everything leads to making sure there is prosperity in the country.

“Nigerians depend on DPR and NNPC to bring prosperity to this country and therefore as a regulator, you are also the supporter of the National oil company.

“Your presence is to help the National oil company to deliver value to all of us and for us in NNPC, it is our responsibility to make sure that we comply with every regulation to make sure that we are doing the right thing,” he noted.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Weekly Forex Turnover at I&E Skyrockets to $1.1bn



Weekly Forex Turnover

By Sodeinde Temidayo David

In one week, the total value of transactions recorded at the Investors and Exporters (I&E) window of the foreign exchange (forex) market in Nigeria rose to $1.1 billion.

Data obtained by Business Post from the FMDQ Securities Exchange showed that the weekly forex turnover at the I&E was 18.73 per cent or $183.56 million higher than the $980.1 million recorded a week earlier.

The FMDQ exchange, which tracks trades on the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) platform, revealed that the significant spike in the value of the transactions was due to the high FX demand last Friday, a day after the Naira depreciated against the United States Dollar to an all-time low of N422.07/$1, triggering panic at the FX window.

At the first trading session of last week, the turnover was $184.3 million and the next day, it dropped to $153.4 million before skyrocketing to $306.8 million on Wednesday and the next day, the turnover went down to $141.9 million before jumping to $337.3 million due to decision of investors to quickly pull out their funds as a result of comments by Vice President Yemi Osinbajo interpreted to mean he was in full support of the devaluation of the local currency so as to allow it get its true market value.

As for the performance of the Naira against the US dollar at the investors’ window in the week, it depreciated by 0.2 per cent or 77 kobo week-on-week to N415.07/$1 from N414.30/$1 in the preceding week.

The weakening of the local currency at the FX market window must have been caused by the rise in the demand for forex experienced at the mid-week and the last trading session as well as the shortage supply of forex to traders to meet the demands of their customers.

It was gathered that last Monday, the domestic currency traded at N414.40/$1 at the I&E segment and appreciated to N414.30/$1 on Tuesday.

At the midweek session, it fell to N415.10/$1 and the next day, it dropped to an all-time low of N422.07/$1 before bouncing back to close at N415.07/$1 last Friday.

Also at the interbank segment of the market, the Nigerian currency lost 0.02 per cent or 10 kobo week-on-week against the American Dollar to trade at N410.91/$1 versus the previous week’s N410.81/$1.

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CBN Adds New Feature to Yet-to-be-Launched eNaira




By Sodeinde Temidayo David

The Central Bank of Nigeria (CBN) has announced that the yet-to-be-launched eNaira will have a new add-on that will enable users to complete transactions with mobile phones without Internet capability.

The apex bank, in a document titled Design paper for the eNaira, disclosed that maximising the value and use cases of the nation’s digital currency would depend largely on devices with Internet capabilities.

A few months ago, the CBN said it would launch eNaira on October 1, 2021, but it later suspended this without giving a new date for the unveiling.

This digital currency, which is expected to promote the cashless policy, is expected to become operational after the central bank stopped the trading of unregulated digital currencies in the country like Bitcoin, Ethereum and others.

The eNaira is to be introduced into the country under the Central Bank Digital Currency (CBDC), an electronic record or digital token of the local currency and is to be issued and regulated by the monetary authority.

Given the reason, the CBN noted that, “The eNaira thus risks further alienating sections of the population who are uneducated, lack exposure and access to internet services or digital devices.”

The apex bank is adding the new feature to the eNaira following a recent publication that estimated that 35 per cent or about 37.1 million of the nation’s adult population was illiterate.

To face the risk of losing adoption of the digital currency to this segment of the population, the CBN added that the bank has factored in the need for inclusiveness as part of the core design principle of the eNaira.

According to the central bank, this principle has enabled the bank to focus on simplicity and ease on the use of the e-Naira, to ensure that Nigerians without Internet-enabled phones can access the digital service.

The CBN said the eNaira would complement existing payment options available via the mobile banking apps, Point of Sale (POS) terminals, Unstructured Supplementary Service Data (USSD), quick response code and Internet banking, among other channels.

GSMA, a global industry organisation that represents the interests of mobile network operators, had said in a recent report that 19 per cent of people living in Nigeria do not have access to mobile broadband coverage.

In its design paper, the central bank, in a bid to ensure inclusive access while also ensuring the integrity of the financial system, has chosen the account-based CBDC model for the eNaira.

The CBN said, “The account-based CBDC model at its core mirrors the progress made on the National Financial Inclusion Strategy which enables access to financial services by leveraging last-mile networks to identify users and to provide banking services through channels such as PoS and USSD.

“With the account-based model, the CBN seeks to enable access by leveraging the existing identity infrastructure in Nigeria such as the BVN, NIN, TIN, etc., to uniquely identify individuals and corporate entities.

“Specifically, identity frameworks such as the NIN will enable access for the financially excluded as they can be uniquely identified, thereby enabling the provision of financial services. These identity systems will help ensure a robust KYC framework positioned to enable access for all Nigerians.”

The CBN also added that this would help improve cross-border payments and address issues of dollarisation of the economy, as it could be recalled that Visa, a payments company, recently noted that the ease of operating CBDCs would determine the success of digital currencies.

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Nigerian Exporters Fail Due to Poor Training, Exposure—NEPC



Nigerian exporters

By Ashemiriogwa Emmanuel

The Nigerian Export Promotion Council (NEPC) has revealed that many Nigerian exporters, including women entrepreneurs, fail in the international market as a result of poor training and exposure to the business.

According to the federal agency, it is necessary for anyone who wants to venture and succeed in the business to undergo adequate training in order to grasp the scope of the competitive venture.

The Executive Director/CEO of the NEPC, Mr Olusegun Awolowo, disclosed this at a capacity building workshop organized for women-owned businesses in the non-oil export value chain in Akure, Ondo State on Friday, October 15

Speaking at the event, which was organised by the Export Development and Incentive Department of the NEPC, Mr Awolowo said that, “Lack of export market training is one of the major reasons Nigerian exporters fail in the international market.

“Exporters need to learn the specific requirements of the target markets as well as the certification needed for the product to be exported.”

Represented by the Head/Trade Promotion Advisor at NEPC Akure, Mr Macpherson Fred-Ileogben, the agency’s head noted that it was for this reason that the council decided to organise the workshop.

The training featured coaching and networking sessions to give women entrepreneurs the opportunity to improve their knowledge of competitiveness in the export market.

He cited that the involvement of women in trade will not only promote gender equality but also increase the growth potential of the nation.

As a result of the gradual recovery from the global pandemic, players in the non-oil exporting business into the international market have been tasked to think outside the box to ensure continuity.

To realize this, it would be recalled that the agency also organized a sensitisation workshop in Lagos in September 2021 which was themed Earn Dollars by Selling on Amazon to help stakeholders see the opportunities in leveraging e-commerce.

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