30 Nov

Daily Watch – FG turns backs out of Chinese satellites loan, Oil revenue exceeds 2017 projections

  • The NNPC says oil revenue has exceeded 2017 projections by 18 percent despite a shortfall of nine percent recorded between January and June. Bala Wunti, group general manager corporate planning and strategy, told the House of Representatives Joint Committee on the 2018-2020 MTEF-FSP that while data available in the 2018-2020 MTEF show that ₦2,12 trillion was projected as the total 2017 oil revenue, ₦1.06 trillion was projected for H1 2017 and actual revenue recorded during the period was ₦960.87 billion, a shortfall of nine percent. Wunti said the 2018 crude oil national production projection for the joint ventures, modified carrier arrangements or external financing, production sharing contracts, independents, marginal fields and service contracts is about 2,298,000 barrels per day.”
  • The FG has backed out of a plan to take a $550 million loan from the Chinese Export and Import Bank for the construction of two new communications satellites. Communications minister, Adebayo Shittu, told the Punch on the sidelines of the Alliance for Affordable Internet – Nigeria Coalition meeting in Abuja that the Chinese bank wanted Nigeria to make an $82.5 million commitment, 15 percent of the cost of the satellites, to be able to access the loan. Shittu said that the country could not afford the money and opted instead for private equity participation in order to raise the funds necessary to construct the two satellites and run the Nigerian Communications Satellite Limited.
  • The FG may have shelved its promise of procuring some high-tech gadgetry meant to combat maritime crime in the country’s pirate-infested waters according to the Guardian. Under the initial target, the facilities were expected in August, but three months later, the project appears to be in limbo. President Muhammadu Buhari had earlier this year, approved the sum of $186 million (about ₦56.9 billion) to procure hardware aimed at combating maritime crimes, including three helicopters, three aircrafts, three big battle-ready ships, 12 vessels, and 20 amphibious cars to combat piracy in the Gulf of Guinea, reputed to be the world’s unsafest waters according to the International Maritime Bureau Piracy Reporting Centre.
  • A new leadership assigned by the FG for the management of the Lagos International Trade Fair Complex has formally resumed duties, a week after the former concessionaire of the complex, Aulic Nigeria was ejected from the complex and their concession terminated. The new CEO, Lucy Ajayi said her emergence represented a new lease of life for the complex’s traders and other stakeholders. The FG and Aulic, in the ninth year of a 30-year concession, had been locked in a fraught battle over remittances due to the state’s coffers, with the FG accusing Aulic of owing billions of naira in contractual remittances for the past three years.
  • Pakistan’s head of chancery in Nigeria, Amir Khan, said his country has commenced LNG purchases from Nigeria. Khan said that the first consignment of 70,000 metric tons of gas arrived at Pakistan’s Port Qasim in Karachi. He said the importation marked the beginning of a major business expansion between Nigeria and Pakistan in the oil and gas sector. Prior to the commencement of Nigerian gas importation, Pakistan relied on Qatar to meet its domestic gas needs.