10 Nov

Daily Watch – NNPC stops kerosene importation, Reps go after MMM

  • The House of Representatives has called on law enforcement agencies to track down, and arrest, the promoters of MMM, which in their words is a “questionable investment scheme”. The Reps also asked the committees on banking and currency, and financial crimes to investigate MMM. Those behind MMM are not known to Nigerian regulatory agencies, including the CBN and the NDIC. The business is not registered with the Corporate Affairs Commission, making it difficult to identify its promoters. Regulatory and anti-corruption agencies had earlier warned Nigerians against participating in the scheme.
  • The European Aviation Safety Agency has granted Arik Air Third Country Operator authorisation, which allows it to operate to any European country. According to Arik’s spokesman, Ola Adebanji, the airline can now fly to all European member states with respect to the BASA agreement with each country.
  • Seven Energy has signed a $112 million Partial Risk Guarantee with the FG for the supply of natural gas by its subsidiary, Accugas, to the 560 MW National Integrated Power Project scheme power station in Calabar. According to Seven Energy, the PRG as a financial instrument that would secure the supply of up to 130 million cubic feet per day of natural gas to the NIPP Calabar, thereby enabling the consistent generation of additional 560MW of electricity to the national grid, approximately 20 percent of Nigeria’s current power generation.
  • The NNPC has stopped the importation of kerosene. According to its latest financial and operations report (August 2016) edition of the report, the last time that kerosene was imported into Nigeria under the Direct-Sale Direct-Purchase/Offshore Processing Agreement was in May. In February, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, announced the replacement of the crude swap arrangement with what he called the Direct-Sale Direct-Purchase framework, which took off in April. The DSDP was adopted to replace the crude swap initiative and the offshore processing arrangement in a bid to entrench transparency in the crude oil for product transaction by the country‚Äôs national oil firm.