The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set a new 2024 base gas price for companies in the power sector and commercial users.

This is contained in a statement signed by Farouk Ahmed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to the statement, companies in the power sector will pay $2.42 MMBTU for wholesale gas purchases while commercial users will buy natural gas at $2.92 MMBTU.

Furthermore, the NMDPRA referenced provisions of the new Petroleum Industry Act (PIA) as the legal backing for its latest decision.

It stated,

• “The Petroleum Industry Act (PIA) 2021 assented to by the President on the 16th of August 2021 and gazetted on the 27th of August 2021 provides a clear regulatory framework for the determination of a Market-based pricing regime for the domestic gas market in Nigeria.
• “in line with Section 167, the Third and Fourth Schedule of the PIA 2021, the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) is mandated to determine the Domestic Base Price (DBP) and the marketable wholesale price of natural gas supplied to the strategic sectors”
• “Accordingly, after due consultation with key stakeholders and taking into cognisance the provisions of the PIA, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the Year 2024 Domestic Base Price as USD 2.42 / MMBTU”

Additionally, the NMDPRA set the floor prices for gas-based industries such as producers of ammonia, methanol, low sulphur diesel at $0.90 MMBTU while the ceiling prices is $2.42 MMBTU.

What you should know

• The increase in the base price of domestic gas purchase could likely led to an electricity tariff hike since about 70% of Nigeria’s electricity is generated from natural gas.
• In 2024, the federal government through the Nigeria Electricity Regulatory Commission (NERC) plans to pay N1.67 trillion to subsidise electricity– a 170% increase compared to the figure paid last year.

 [Nairametrics]

Federal Capital Territory Minister, Nyesom Wike, has revealed what transpired between him and the Chairman and Chief Executive Officer (CEO) of the SNECOU Group Limited, Chief Nicholas Ukachukwu, who decried the demolition of his investment on 214 hectares of land in the Asokoro district of FCT.

Ukachukwu accused Wike of ordering the demolition without any court order despite pending valid two court orders from separate courts restraining him and the FCT administration from tampering with the property.

Ukachukwu claimed that the property was demolished because it was owned by an Igbo man, and not because the company violated any law.

Claiming that the demolition was done in bad fate, Ukachukwu said: “Wike called for a meeting over the land, we went with our documents after seeing what we had with our lawyer and other company, Sunrise which they gave part of that land. Wike said that there is nothing on this that the court should take its effect.”

Reacting to the allegation in a press briefing, Wike said the land allocated to Ukachukwu did not have the approval of any minister as his predecessor.

The FCT minister said the land-grabbing in Abuja is becoming rampant because some officials in the land department of his ministry have compromised.

Wike said, “I have been doing this before. I will continue to do it. And nothing will happen. Criminals are criminals. They may come in different ways.

“I have never seen people like land-grabbing people in this place. I came in, (I met) so many petitions. One company came with different petitions, with different owners of properties. I summoned all of them. They came with their lawyers, senior advocates.

“And I said look what is this? Companies presented their own cases. Company A presented their own case, company B presented their own, company C, company D, Company E, I said okay, I’m going to seek advice from external solicitors. I’m not going to take from insiders … because the biggest (fraud) is that the Land Department has been compromised. I sought the views of senior lawyers and told them, we need to do things differently…

“This land, by this so-called ethnic jingoist, talked about, was allocated when there was no minister. The minister left on May 29, 2023. By June the land was allocated by the director of lands.

“If I tell you so many things. We all met. Company D this, don’t do anything again until we are able to take a final decision. You know what happened, these guys thought they were too smart and went on.”

The minister said there was a time when he wanted to commission a Water Park, and he was informed he could not, saying, “The Pacco and its allies have gone to court stopping me from commissioning the water park.”

“You see these guys (some officials in FCTA) are colliding with the plaintiff against the FCTA. I’ve never seen people who are so fraudulent like this! What they do here. They sued you, they sued me as FCT minister. They have court judgments in their pocket. I told him you are wasting time. His brother sent me a text message. I have never met his brother but he sent me a message saying, “You told your Ikwerre brothers you will deal with Igbos in FCT’, Imagine such.

“Why do we behave like this in this country? We keep doing the same thing and expect different result. If you transfer a director, he would say, ‘Oh! It’s because I am Hausa! If you transfer another one, he would say, ‘It’s because I am a Muslim’, but why?” he added.

[DailyTrust]

Napoli might look into the Super Eagles squad, as they look for a replacement for Victor Osimhen.

Osimhen is all but set to leave the Italian champions this summer.

However, the Serie A side are now looking at the 23-year-old’s compatriot, Victor Boniface to replace him.

Boniface, who plays for Bayer Leverkusen in Germany, has scored 10 goals and provided eight assists in just 15 starts.

His impressive displays have seen him win the Rookie of the Month award four times consecutively.

However, he suffered an adductor injury, which has sidelined him for most of the Rückrunde while Leverkusen continued their pursuit of silverware on multiple fronts.

Italian transfer expert, Niccolò Ceccarini, has shed light on Napoli’s transfer plans, mentioning Boniface among the strikers on their radar.

Ceccarini stated, as reported by Calcio Mercato, “In addition to him, there is also Benjamin Sesko. Also in this case the evaluation is the same as Gimenez, Leverkusen’s Boniface.”

[DailyPost]

Here are things to know about Senegal’s Youngest President

2. He went to primary school in his village and undertook middle and high school in Mbour.

3. In 2000, Faye earned his baccalaureate (A university bachelor’s degree.)

4. He attained a Master’s degree in law in Dakar Cheikh Anta Diop University and subsequently cleared both competitive exams, enrolling at the National School of Administration of Senegal (ENA) and the magistracy in 2004.

5. He is 44 years old.

6. He is Senegal’s youngest President.

7. He took over from immediate past president Macky Sall.

8. He was the General Secretary of the banned party PASTEF.

9. He won the 2024 Senegalese presidential election in place of disqualified candidate Ousmane Sonko.

11. Faye was among a group of political opponents freed from prison 10 days before the March 24 presidential ballot under an amnesty announced by Sall.

12. Faye’s campaign was launched while he was still in detention.

13. He was a former tax inspector

14. He is Senegalese fifth president since independence from France in 1960.

15. He is the first president to openly admit to a polygamous marriage.

16. In the election, Faye received over 54% of the vote, making him the first opposition candidate to have won an election in the first round since Senegal’s independence in 1960.

17. In his inaugural address, Faye pledged to fight corruption and reform the economy.

A Deputy Commissioner of Police serving with the Force Criminal and Investigation Department, Alagbon, Lagos State, Gbolahan Oyedemi, on Monday, reportedly committed suicide in his private house in his hometown, Ogbomoso, Oyo State.

The PUNCH reports that Oyedemi was the Aide de Camp to the late former Governor of the state, Adebayo Alao-Akala, during his 11-month tenure as defacto governor in 2006.

A source close to the family told our correspondent on the telephone on Tuesday in Ibadan, the state capital, that Oyedemi, who normally visited his hometown during the Easter celebrations, told his aides at the weekend to go to their various towns to celebrate with their family members.

The source said, “Yes, he committed suicide. His body was found hanging in his house yesterday (Monday). He stays alone, and he normally comes home for Easter celebrations.

“This time, he told his aides to go and celebrate with their family members in their various homes. Only God knows what could have prompted him to commit suicide.”

All efforts to get the reaction of the state Police Public Relations Officer, Adewale Osifeso, were unsuccessful, as his mobile number was unreachable.

Details later…

Mikel Arteta said Tuesday that Arsenal may have to win all of their nine remaining Premier League games if they are to be crowned champions as he prepares for the “most beautiful part of the season”.

The second-placed Gunners are two points behind leaders Liverpool ahead of a busy April schedule following Sunday’s gritty goalless draw at title rivals Manchester City.

“It’s going to have to be really close to that,” he told a pre-match press conference when asked if Arsenal need a 100 percent record from now on to finish top of the table.

“When you see the level and the consistency of the other teams and historically what is needed to win in this league, it’s not going to be very far from that.”

The Spaniard added: “This is where we want to be and now we want to take this opportunity and make it happen.

“We worked every single day with that enthusiasm and passion to make it happen and enjoying the moment as well.

“I see the team really flowing and they are really excited about playing each game and that has to drive this energy until the end.

“I am full of energy and it’s the most beautiful part of the season.”

Arsenal’s fixture against Luton is the first of eight matches this month, including the two clashes with Bayern.

Although they will be huge favourites to beat Luton, they needed an injury-time winner to leave Kenilworth Road with a dramatic 4-3 victory in early December.

Asked about his memories of that game, Arteta said: “Especially how tough it was to win there, how difficult they have made it for every team…They deserve more credit than any other team in this league, how they’ve done it, what they transmit as a team and what they generated and it’s going to be a really tough match.”

 [Vanguard]

Peter Obi, former governor of Anambra state, says N10 trillion is spent by the federal government on ‘unproductive’ debts.

Obi, the presidential candidate of Labour Party (LP) in the 2023 election, expressed his concern in a post on his X page on Tuesday.

“Last year, 2023, our total debt servicing for domestic debts stood at N4.4 trillion and that of external debt servicing was $3.5 billion, which is about N4.9 trillion. In effect, approximately N10 trillion is now spent on servicing unproductive debts,” he said.

According to Obi, the implication is what the country borrowed in a quarter is “about N10 trillion and what we spend on debt service, is also about N10 trillion”.

He said each of the figures is more than the combined budgetary allocation for the “four highest priority areas”, including defence (N3.25 trillion), education (N2.18 trillion), health (N1.33 trillion), and infrastructure (N1.32 trillion).

The Debt Management Office (DMO), on March 22, said Nigeria’s total public debt rose to N97.34 trillion, by N9 trillion, in the fourth quarter (Q4) of 2023.

According to DMO, the increase was primarily due to new domestic borrowing by the federal government to partly fund the deficit in the 2024 budget as well as disbursements by multilateral and bilateral lenders.

“More worrisome is the fact that there has been no corresponding visible usage or investments as required by the law, to show their impact on the nation’s development,” he said. 

“At the end of the second quarter, Q2, of 2023, our debt stood at N87.9 trillion, which was very disturbing to us, because we were at a loss as to what we did with the huge debt, especially the over N23 trillion ways and means borrowed by the last administration, which for me, would have been the end of borrowing without any visible and corresponding investment and benefit to the nation. 

“But sadly and more worrisome is the fact that between the end of the third quarter, Q3, and the end of the fourth quarter, Q4, of 2023, about N10 trillion was added to our debt portfolio , which has now taken our debts to N97.3 trillion, again, without any corresponding visible and verifiable utilization.This is the highest ever borrowed in one quarter.”

He asked the the federal government to de-accelerate borrowings and re-evaluate what has been achieved with previous funding.

Obi said the evaluation would help the government make better decisions for the good of the nation.

[TheCable]

The maiden flight of Air Peace airline to London on over the Easter weekend is a perfect moment to discuss an important aspect of our aviation sector which has been on my mind for a long time. Why can’t the federal government enter into some agreement with Air Peace and officially designate the airline as our national flag carrier? Note that in aviation, a flag carrier is different from a national carrier. This question became quite pertinent after the Hadi Sirika fiasco last year in which the former aviation minister tried, but failed to float a national carrier. While a flag carrier is basically a privately-owned airline (or shipping line) flying the flag of its country on international operations and may enjoy certain privileges, a national carrier is owned and operated by the national government and they usually have certain sovereign advantages. As we all know, British Airways (BA) is not owned by the British government; neither are the many US carriers that bear US colours and flags.

Since the liquidation of Nigeria Airways in 2003, it’s been so difficult for the government to float a replacement. In 2004, the Virgin Group, owned by British billionaire Richard Branson, established a Nigerian subsidiary known as Virgin Nigeria - a joint venture between Nigerian investors and the Virgin Group. The deal was facilitated by the Obasanjo administration. But Branson soon pulled out of the deal and the company collapsed after a few years in business. Branson explained later that he had to quit because Nigerian officials were pestering him for bribes. The airline was then renamed Eagle Airlines and later Air Nigeria. The business ultimately ceased operations in 2012.

Over a decade after, the idea of a national carrier still remains a national fascination, but the government has neither the appetite nor the resources to invest in such a venture, especially given pervasive corruption and the ineptitude of our bureaucrats. When Sirika, a retired pilot, arrived the scene as aviation minister in 2015, he resuscitated the idea, but could not pull it through.

A truly branded flag carrier will make up for the absence of a national airline. If Air Peace becomes our flag carrier, its planes (especially those on international routes) would bear our national colours and flag and ‘’NIGERIA’’ would be prominently emblazoned on it as part of its livery. It will project our national brand and unique Nigerian attributes, culture including cuisines and hospitality to many parts of the world. That’s why flag carriers are sometimes referred to as ‘’Embassy on Wings’’.

Already, Air Peace has promised to serve Nigerian cuisines on its London route and it was also heartwarming seeing those beautiful airhostesses dressed in ‘’ishiagu’’ designs. In return, Air Peace will enjoy enhanced customer loyalty as passengers usually prefer their flag carriers out of a sense of national pride. The government will also provide the airline with many incentives such as official assistance to develop more international routes in accordance with our bilateral air services agreement (BASA) and support in aircraft acquisitions. Air Peace could also access FX at official rate. I should emphasize that such partnership with the government does not imply that the government has assumed any proprietorship or ownership rights on the airline; and so, government officials will not interfere in the management of the airline and shall not seek to make any appointment into its board or management or demand for free or concessionary tickets.

 Air Peace has shown considerable resilience and determination to succeed in the face of huge challenges. It therefore deserves to be supported by Nigerians and the government. With over 50 aircraft, 30 destinations and 5,000 employees, it is Nigeria’s biggest carrier, serving major cities in the country and flying to many African countries and the Middle East. Coming in the 11th year of the company’s existence, the London route is a marvelous attainment for a privately-owned African airline. London is the airline’s seventh international destination and it ‘’signals our entry into the European market’’, according to Chairman Allen Onyema. New York and Houston routes are also coming. The London operations would be carried out with Boeing 777 and Boeing 787 Drealliner aircraft. It would be operating daily flights to the Southern Terminal of Gatwick Airport, with fares far cheaper than what competition was offering. The inaugural flight with 260 passengers took place seven years after the last indigenous airline, Medview, operated this very lucrative international route.

The immediate impact of Air Peace’s entry into the Lagos-London route is the drastic fall in airfares charged by other international carriers. They were forced to reduce fares from N4 million to between N1.8 m and N1.9 m, compared to Air Peace’s N1.2 m for economy. Besides, these foreign airlines were also piling pressure on the CBN to sell them FX at discounted rates. The UK has 21 weekly slots into Nigeria with BA alone operating 14.

In a recent TV interview, Chairman Onyeama acknowledges that his airline and other Nigerian-owned international carriers are automatically regarded as flag carriers. This is not enough. Those aircraft must be appropriately branded. He also listed the many challenges which Air Peace has been facing both within and outside Nigeria in the course of applying for the London route. The Nigerian government must do everything to ensure that Air Peace succeed.

The federal government’s subsidy reforms, rather than the expansion of money supply, are a major driver behind the persistent core inflation in Nigeria.

This is according to a study by Eric Ismail Otoakhia of the Department of Economics, Faculty of Business School, Ahmadu Bello University, Zaria, which was published in the latest edition of Bullion, a publication of the Central Bank of Nigeria (CBN).

Titled ‘Do Fuel Subsidy Shocks Prolong Price Instability in Nigeria?’, the study delves into the economic repercussions of Nigeria’s approach to handling fuel subsidies. The paper rigorously examines the ripple effects that follow the removal of fuel subsidies on the nation’s price levels from December 1996 to August 2023. By adopting a dynamic autoregressive model, the study aims to quantify the impacts of these changes on economic stability.

Subsidy reforms counterproductive to cost of living stability

The findings pointed to the counterproductive effects of subsidy reforms on the cost of living, highlighting the challenges faced by fiscal and monetary policy coordination in ensuring economic stability.

The study read:

• “The removal of such subsidies, when accompanied by income redistribution and increased government spending on public investments, inevitably leads to a persistent increase in the price level.
• “The findings of this paper have shown that government actions in handling fuel subsidies are counterproductive to fiscal and monetary policy coordination in ensuring a stable cost of living.”

The study, however, noted that fuel subsidies have been a double-edged sword, offering relief against the rising cost of living by stabilizing fuel prices, yet posing sustainability challenges amidst Nigeria’s significant infrastructure needs and escalating debt levels.

The money supply effect

Nigeria’s broad money supply (M3) surged to a new historic high of N95.56 trillion as of February 2024 despite the hawkish tightening stance of the Monetary Policy Committee (MPC). This figure represents a staggering 79.29% surge from the N53.3 trillion recorded in February 2023, showcasing a substantial year-on-year growth of N42.26 trillion.

The study, however, noted that increase in the money supply does not trigger significant and prolonged rises in inflation, suggesting that phasing out fuel subsidies introduces greater risks to economic balance.

The study added:

• “The results reveal a prolonged increase in inflation rates following a positive shock to the positive semivariance of fuel prices, indicating that fuel subsidy reforms disrupt price levels and impede fiscal-monetary policy coordination to achieve price stability.
• “In contrast, a positive shock to the money supply does not result in a significant and extended rise in inflation rates. This suggests that eliminating fuel subsidies poses a greater risk to price stability.”

The weakness in cash transfers

The World Bank recently said that cash transfers can help save Nigerians from intergenerational poverty traps as inflation and low economic growth adversely affect the poor. Also, the International Monetary Fund (IMF) emphasised the need for the Nigerian government to prioritise the full implementation of its cash transfer program to aid vulnerable households. This step is crucial before the government takes on the task of revaluating the costly fuel and electricity subsidies.

The paper, however, warns against depending solely on income transfers as a solution to the adverse effects of subsidy removal, given the government’s fiscal constraints. It recommends exploring alternative subsidy approaches, like agricultural subsidies, to promote food security and support the agricultural sector, offering a more viable and sustainable solution for economic stability.

The study noted:

• “If the current administration successfully eliminates fuel subsidies, relying solely on income transfers will not provide long-term stability in the cost of living.
• “These transfers are unsustainable given the current fiscal constraints of the government. Instead, an alternative subsidy approach, such as agricultural subsidies that encourage farmers and promote food security, may be more viable.”

The fuel tax option

The research proposes a novel approach to manage the economic implications of subsidy removal. Rather than erratic withdrawal of fuel subsidies, it suggests the implementation of a fuel tax targeting non-commercial vehicles. Such a measure would not only foster energy efficiency but also contribute to reducing CO2 emissions, aligning with global environmental objectives.

The study concludes that removing fuel subsidies leads to unmanageable increases in the inflation rate, with core inflation especially sensitive to such governmental energy reforms. The analysis criticizes the government’s recurrent attempts to remove subsidies as detrimental to the broader goal of macroeconomic stability.

Proposing a shift in subsidy strategy, the research advocates for funding subsidies through direct taxes on private, non-commercial vehicles. This strategy could expand the government’s tax revenue and correct the market failures associated with prolonged energy subsidies.

The Co-convener, Lucky Aiyedatiwa Campaign Organisation Foot Soldiers (LACO-FS) in Ondo State, Biyi Poroye, has said the allegation of certificate forgery against Governor Lucky Aiyedatiwa is the work of detractors who are crying wolf over nothing.

Naija News reports that Poroye, who is also the Chairman of Emerging Political Platform (EPP), while speaking with journalists in Akure on Monday, said Aiyedatiwa was not jittery over the allegation of certificate forgery.

According to him, Aiyedatiwa has no certificate scandal and is well-qualified to contest and win the party’s primary and November elections.

He further declared that those uncomfortable with Aiyedatiwa’s academic qualifications should approach the court of law for redress rather than brandish fake police reports on his academic records.

He said, “For some time now, the media platforms have been abuzz with lurid stories, insinuating that Governor Aiyedatiwa does not have a secondary school certificate as claimed in his bio-data.

“Thankfully, facts don’t lie. Recall that the then Governor of Lagos State, Alhaji Lateef Jakande, in his developmental stride in the education sector, relocated some dilapidated public schools to his newly built public schools.

“Therefore, Governor Aiyedatiwa who claims that he entered Ikosi High School in 1980 and passed out of the school in 1982 was right after all, because he was relocated to that school when he was in Form 3, and he passed on of it in 1982, at Form 5.

“This has in no doubt addressed the worry of all those who have been asking that how could Aiyedatiwa enter secondary school in 1980 and pass out in 1982.

“We indeed love this sort of inquest, and we want to task the good people of Ondo State and social critics to dig into the past/present of all the governorship aspirants and sponsors, across the party lines.

“For instance, how can aspirants who can not tell how they become millionaire overnight want to become the governor of Ondo State? Those who have handled the resources of the state with questionable issues. We need to ask questions.”

[NaijaNews]