13 Nov

Daily Watch – Ogun to host transit terminal to clear Lagos port, Gas flaring bonanza ramps up

  • Transportation minister, Rotimi Amaechi said cargoes from Lagos’ ports would be taken to Papalanto, a transit terminal in neighbouring Ogun State, through a narrow-gauge rail line after their clearance in order to ease a worsening congestion problem on the Apapa/Wharf access road as a result of ongoing rehabilitation work. Amaechi, who made the announcement during the World Maritime Day celebrations in Abuja, said the FG had reserved a transit terminal in Papalanto for such cargoes so that their owners could pick them up from there to their various destinations instead of coming into Lagos Metro. The Apapa gridlock has grown worse since May when contractors from Flour Mills, Dangote Group and the Nigerian Ports Authority commenced the rehabilitation work, closing a portion of the road. Port users spend as much as 10 days going in and out of the port to get their cargoes, a process that should take 24 hours or less and transportation and demurrage costs have risen by as much as 200 percent.
  • Total turnover trade on Investors & Exporters Foreign Exchange (I&E FX) window hits $14.69 billion in the four months between July and September 2017, as the CBN continues to bridge the gap between parallel market and official market rates. The Daily Times reports that the I&E FX in October rose by 7.3 percent to $4.53 billion from $4.22 billion in September 2017. In the I&E FX window for August moved to $3.68 billion, an increase of 62.8 percent from $2.26 billion in July. The FMDQ OTC had reported that 10 DMBs traded ₦70.88 trillion on the FMDQ OTC Securities Exchange between January to September 2017.
  • The volume of natural gas flared by oil and gas companies in the country has hit its highest level in more than a year, rising to 27.4 percent in August. According to the latest NNPC data, 28.51 billion cubic feet (Bcf) was flared in August, up from the 22.38 Bcf wasted in July. It said a total of 239.03 Bcf of natural gas was produced in August, translating to an average daily production of 7,710.79 million standard cubic feet per day (mmscfd). The NNPC said a total of 628 mmscfd was delivered to the gas-fired power plants in August to generate an average electricity of about 2,307 megawatts, compared with July, where an average of 689 mmscfd was supplied to generate 2,655Mw. According to the recently approved National Gas Policy, the current gas flare penalty of ₦10 per 1,000 scf of associated gas flared is too low, having been eroded in value over time, and is not acting as a disincentive as intended.
  • The Lagos state government has said it will shut down the corporate headquarters of organisations who have defaulted in remitting statutory taxes. Akinyemi Ashade, the commissioner for finance, said the process will begin on 20 November. In a statement, Ashade said some banks have failed to remit statutory taxes including withholding taxes on bank interest for more than 10 years. “The government will on Monday, November 20, commence the process of shutting down the headquarters of corporate organisations, including banks who have failed to remit statutory taxes to government coffers. It is in the interest of companies who are yet to remit their taxes to do so on or before Monday,” Ashade said.
  • Over 30 federal agencies and parastatals are yet to migrate from their international and local domain names to the gov.ng domain, according to the Punch. Five months after a directive to migrate to the gov.ng domain, many regulatory bodies and government establishments still maintain the .ng, .org or .com domain names. The National Information Technology Development Agency in June conducted an assessment of the websites of the federal ministries and found they lacked feedback forms, reachable phone numbers and email addresses and other information necessary to facilitate ease of doing business and directed all government agencies to adopt the gov.ng domain. Erring MDAs include the Bureau of Public Enterprises; the Economic and Financial Crimes Commission; the Atomic Energy Commission; the ministries of Defence; Information and Culture; Industry, Trade and Investment; Justice; Labour and Employment and the armed forces.