14 Feb

Daily Watch – Fewer demolitions along Lagos-Ibadan line, Russia won’t flood oil markets

  • OPEC Secretary-General Mohammad Barkindo told CNBC on Tuesday he has President Vladimir Putin’s word that Russia will not flood the oil markets. Barkindo told CNBC: “I have had and received assurances both from (Energy Minister) Alexander Novak and President Putin that they would remain committed to the OPEC/non-OPEC collaboration under the declaration of cooperation.” Barkindo also said recent falls in the oil and stock markets were “just a blip”. “So the fundamentals are so strong we do not expect any hiccup along the way similar to what we had or we saw last year.” He said he was not concerned by rising competition among OPEC, Russia and the United States in the Chinese market: “The growing concern now in the industry is whether we have enough capacity and whether we are ready and willing to continue to provide, to supply this market with this growing demand.”
  • At least 1,400 buildings marked for demolition in Abeokuta to pave the way for the construction of the $1.5 billion standard gauge Lagos-Ibadan rail line may no longer be pulled down, Transportation Minister Rotimi Amaechi told journalists in Ibadan. Speaking after a meeting with officials of the project contractor, China Civil Engineering Construction Corporation, he said the FG would save ₦2.8 billion in potential compensation to the owners of the affected buildings. The minister said he was under intense pressure to deliver the new railway project in December and enormous construction challenges in Lagos remain, including oil and water pipelines, with the NNPC, the Army, private investors and the Lagos State Government among the affected parties. Two Lagos bridges and a flyover at Ijoko, Ogun have been marked for demotion among other right-of-way issues, causing the project to be suspended in 2017.
  • The National Information Technology Development Agency says checks show that over 90 percent of IT projects in MDAs and other government establishments have failed and more than 95 percent of data security at MDAs is compromised. NITDA’s Director General, Isa Ali Ibrahim Pantami, who disclosed this in a statement on Monday, said the agency was dismayed at the rising number of failing IT projects within federal MDAs and said his agency, in conjunction with relevant agencies, will investigate failed IT projects to determine root causes and apply appropriate sanctions.
  • The National Union of Air Transport Employees has for the second consecutive day shut down the operations of Newrest Aviation Services Limited at the Murtala Muhammed International Airport. NUATE’s General Secretary, Olayinka Abioye said the workers’ action followed a refusal of the in-flight catering services provider to allow the employees to belong to unions in the aviation sector. Newrest ASL provides in-flight catering services to some foreign airlines who operate in Nigeria and has a presence at the international airports in Lagos and Abuja. Newrest employees currently belong to unions in the hospitality sector but have insisted on joining aviation unions, a move which the company has opposed and the Federal Ministry of Labour and the Lagos state government have sought to intervene.