09 May

Daily Watch – Oil production at 22-year low, Bakassi Boys return

  • Despite 2016 Budget becoming operational in the second quarter of the year, the FG has said that it is targeting 100 percent budget implementation for the year. “Our aim will always be 100 per cent implementation,” the Minister of Budget and National Planning, Udoma Udoma, said. “We know we started late and we may not achieve it. But 100 percent achievement is our aim. The budget is a law, we will try to implement it as quickly as we can.’’ Although the minister said details of the approved budget would be given later, he however said what was assented to by the President was slightly lower than what he presented to the National Assembly on December 22, 2015. He said his ministry would set up a budget monitoring committee to ensure effective implementation of the law. To ensure the 2017 budget did not suffer similar delay, the minister said the executive planned to submit the draft bill in October this year, to enable passage before the end of the year.
  • The NNPC recently paid N69.544 billion into the Federation Account. The NNPC’s monthly financial report for March said that amount brought the total paid to the Federation Account for Domestic Crude Oil and Gas and other receipts from April 2015 to March 2016 to N1.118 trillion. It added that NNPC received N107.826 billion in revenue in the month of March as against N104.804 in February. Revenue rose marginally by 2.88 percent, while expenses dipped by 12.92 percent to N112.368 billion from N129.034 billion recorded in previous month. According to the report, the NNPC made a loss of N18.89 billion in the month under review, an improvement from a deficit of N24.23 billion recorded in February.
  • Following the attack on Chevron Corp’s Okan oil facility, Nigeria’s oil output levels have officially fallen to 22-year low. According to Chevron, the new damage on its facility has reduced its production levels by 90,000 barrels a day. The company said the attack on an offshore platform that serves as a gathering point for production from several fields will affect its production levels for the days to come. Even before that strike, Nigeria’s oil production had fallen below 1.7 million barrels a day for the first time since 1994, according to data compiled by Bloomberg. Meanwhile, the shutting of Forcados Export Line as a result of activities of pipeline vandals made the NPDC record a loss of N9.874 billion between February and March. The Integrated Data Services Limited and National Engineering and Technical Company Limited also posted losses of N469 million and N69 million, respectively. The drastic slump in total export receipt is largely due to shut in of about 300,000 bpd at Forcados Terminal following the force majeure declared by Shell on February 15.
  • In the aftermath of the killings at Ukpabi Nimbo in neighbouring Enugu State, the governor of Abia State, Okezie Ikpeazu, has concluded plans to deploy the State Vigilante Services popularly known as Bakassi Boys to communities across the state to assist in providing security. Ikpeazu also vehemently condemned the killing of a butcher by soldiers at the abattoir in the Ogbor Hill area of Aba, which led to huge protests on Thursday in the city. In a statement he personally signed, Ikpeazu described as “unfortunate” the incident that led to the “untimely death of this brother”, adding that he shared in the pains and grief of the family of the victims. He announced that the soldier that murdered the butcher has been arrested and taken into custody hence the need for people to remain calm as justice would be done.