Items filtered by date: Thursday, 25 July 2019
According to the World Economic Outlook of the International Monetary Fund (IMF) for the 2019 financial year, Nigeria’s economy is expected to experience a growth rate of 2.3 per cent.
 
In its July update with the theme, ‘Sluggish global growth call for supportive policies’, the financial institution raised the growth rate by 0.3 per cent.
 
The Fund in its January report had revised the country’s Gross Domestic Product projection down to two per cent from 2.3 per cent projected in October 2018.
 
On the global outlook, the IMF stated, “We are revising downward our projection for global growth to 3.2 per cent in 2019 and 3.5 per cent in 2020.
 
“While this is a modest revision of 0.1 percentage points for both years relative to our projections in April, it comes on top of previous significant downward revisions.
 
“The revision for 2019 reflects negative surprises for growth in emerging market and developing economies that offset positive surprises in some advanced economies.”
 
It stated that growth was projected to improve between 2019 and 2020.
 
However, close to 70 per cent of the increase relied on an improvement in the growth performance in stressed emerging market and developing economies and was therefore subject to high uncertainty.
 
Global growth was sluggish and precarious, but it did not have to be this way because some of this is self-inflicted, according to the report.
 
“Dynamism in the global economy is being weighed down by prolonged policy uncertainty as trade tensions remain heightened despite the recent US-China trade truce, technology tensions have erupted threatening global technology supply chains, and the prospects of a no-deal Brexit have increased,” it stated.
Published in Bank & Finance
The Federal Government has signed an agreement with German company, Siemens, to generate 11,000 megawatts by 2023.
 
The details of the deal was contained in a series of tweets from the verified handle of President Muhammadu Buhari on Monday afternoon.
 
According to the President, the target would be achieved in two phases. The first phase includes the generation of 7,000 megawatts of electricity by 2021.
 
The partnership comes on the heels of President Muhammadu Buhari’s meeting with German Chancellor, Angela Merkel, on August 31, 2018.
 
At the end of the signing, President Muhammadu Buhari urged Siemens, distribution and transmission companies, as well as the Electricity Distribution Company of Nigeria to work hard to achieve 7,000 megawatts by 2021 and 11,000 megawatts by 2023 and overall grid capacity to 25,000 MW.
 
He said, “My challenge to Siemens, our partner investors in the Distribution Companies, the TCN, and NERC, is to work hard to achieve the target of 7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023 – in phases 1 and 2 of this initiative, respectively.
 
“Our intention is to ensure that our cooperation is structured under a Government-to-Government framework. No middlemen will be involved, so that we can achieve value for money for Nigerians.
 
“We also insist that all products be manufactured to high quality German and European standards and competitively priced.
 
“This project will not be the solution to ALL our problems in the power sector. However, I am confident that it has the potential to address a significant amount of the challenges we have faced for decades.”
 
The President expressed hopes towards the improvement of the power situation in the country.
Published in Engineering

The Nigerian National Petroleum Corporation (NNPC) has signed a $3.15 billion financing and technical services agreement with Sterling Oil Exploration and Energy Production Company Limited (SEEPCO).

The agreement which was signed on Tuesday through its subsidiary, Nigerian Petroleum Development Company (NPDC), involves the development of Oil Mining Lease (OML) 13.

OML 13, located in the eastern axis of Niger Delta, is 100 per cent owned by the NPDC. It covers a total area of 1987 square kilometre.

NNPC’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, quoted the Group Managing Director, Mallam Mele Kyari, as describing the funding arrangement as “a game changer to oil and gas project financing in Nigeria”.

With this, The NNPC plans to increase the nation’s crude oil reserves by raising daily oil production to three million barrels per day.

The GMD, who was represented by the Chief Operating Officer, Upstream, Mr. Roland Ewubare, expressed gratitude to President Muhammadu Buhari, for approving the transaction, adding that OML 13 held strong potentials both for the petroleum industry and the nation’s economy.

According to statement by Ughamadu, the GMD disclosed that the Federal Government is expected to earn over $10.2 billion in royalties and taxes from the project over the next 15 years, while NNPC would earn over $5 billion after payment of the entire financing obligation.

He advised the management of NPDC to develop a strong community engagement strategy to forestall any crisis that could hinder operations.

Kyari disclosed that the acreage boasts of over 926 million stock tank barrels (mmstb) and 5.24 trillion cubic feet (tcf) respectively of oil and gas reserves, adding that the Financing and Technical Services Agreement was for a period of 15 years while the $3.15 billion ceiling funding would be provided by SEEPCO with a 10-year capital investment period and five years for cost recovery.

First oil of about 7,900bpd is expected from the project by April 1, next year, while production is expected to peak at 94,000bpd and 542mmscfd within four years.

On local content, the project is expected to enhance participation by indigenous companies in the industry by providing over 2,000 direct and indirect job opportunities.

Also speaking, SEEPCO’s Chairman, Mr. Tony Chukwueke, expressed delight at the opportunity offered his company to support the production and reserves growth aspiration of the Federal Government.

Published in Business

Namibia’s state-run utility will build four plants powered by renewable energy over the next five years as the southern African nation seeks to guarantee local supplies and cut its use of fossil fuels.

The plants, which will harness biomass, solar and wind to generate a combined 220 megawatts, will cost 4.7 billion Namibian dollars ($338 million), Namibia Power Corp. Managing Director Kahenge Haulofu said at the launch of the company’s business plan for 2019-2023 in the capital, Windhoek. Nampower currently imports about 60% of its needs, mostly from South Africa.

Construction will start later this year through 2022 and will be financed with internal resources, Haulofu said without elaborating.

The country, which is the driest in sub-Saharan Africa and has more than 300 days of sunshine a year, “stands to benefit as the worldwide boom in the solar market results in reduced costs and improved efficiency of solar photovoltaic panels and related equipment,” Haulofu said.

Namibia, which is bigger than France by land area but has a population of just 2.6 million people, “has potential sites for the development of large-scale wind-power projects,” he said.

 

Bloomberg

Published in Engineering
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