18 Feb

Daily Watch – Local input hits N800 billion in three months, NNPC’s crude lifting declines by 57 million barrels

  • The government of Japan has offered an $800 million credit line to Nigeria that will be used to rehabilitate and extend the lifespan of the Jebba power plant. Consequently, the federal government and Japan are expected to firm up all relevant agreements that will ease the way for the 578.4 MW installed capacity Jebba hydro power plant to access the loan. Repair work on the turbine which was commissioned by the minister of Power, Works and Housing, Mr Babatunde Fashola, was undertaken with N5.2 billion after it was burnt down in April 2009.
  • Data from the Raw Materials Research and Development Council (RMRDC) shows that 183 manufacturers in the country sourced local sorghum, maize, cassava, yam, starch, palm oil, limestone, gypsum, among others, worth N800.10 billion in the three months proceeding June, 2015. The data further shows that these economic activities were carried out by 83 large, 38 medium, 47 small and 16 micro manufacturers in food and beverages; domestic and industrial plastic, rubber and foam; chemical and pharmaceuticals, as well as basic metal, iron, steel and fabricated metal product sectors. Others include electrical and electronics; pulp, paper and paper products, printing and publishing; textile, wearing apparel, carpet, leather and footwear, as well non-metallic products sectors.
  • The low price regime is one of the factors that has led to Nigeria’s share of crude oil lifted declining by about 57 million barrels in 2015 from the corresponding period a year earlier. According to data from the NNPC, crude lifting declined from 344,885,197 barrels between January and November, 2014, to 287,401,985 barrels over the same period in 2015. The quantity of crude oil lifted by the NNPC represents 40.7 percent of the total Nigerian crude lifted in 2015, a slide of about 7 percent when compared to the 47.2 percent it lifted in 2014. Nigeria’s share of crude oil lifting was captured under the NNPC JV/Profit oil, Tax oil (FIRS) and Royalty oil (DPR) headings. Meanwhile, International Oil companies (IOCs) and other oil firms operating in the country lifted 59.3 percent of Nigerian crude over the same period in 2015, which equates to about 418,840,511.40 barrels. Compared to 2014, Nigerian crude lifted by these companies increased by 33 million barrels against the 385 million barrels they lifted in 2014.