NEWS AGENCY OF NIGERIA
Oil & Gas

NMDPRA, stakeholders collaborate to address wholesale gas challenges

23 total views today

 

By Rukayat Adeyemi

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reiterated its commitment to addressing and resolving critical regulatory challenges within the wholesale supply sector for natural gas and petroleum liquids.

The Chief Executive Officer of NMDPRA, Mr Farouk Ahmed, said this during a stakeholder sensitisation on Monday in Lagos.

Ahmed, who was represented by his Secreatary and Legal Adviser, Dr Joseph Tolorunse, said that the workshop aimed at clarifying and enhancing the implementation of regulations governing wholesale supply operations of natural gas and petroleum liquids in Nigeria.

The News Agency of Nigeria (NAN) reports that a central topic of the workshop was the 0.5 per cent levy associated with the Midstream Downstream Gas Infrastructure Fund.

Ahmed said that this levy would be reassessed to ensure compliance with the Petroleum Industry Act (PIA), which was introduced in August 2021, replacing the Petroleum Act of 1969.

“This transition not only bolsters domestic energy security but also enhances opportunities for international exports.

It also provide a clear regulatory framework for entities involved in the sale and delivery of natural gas and petroleum liquids,” Ahmed stated.

He encouraged stakeholders to share their concerns about the implementation process to foster alignment and collaboration.

“The workshop underscored the significant benefits of these operations, including increased investment opportunities, improved transparency in hydrocarbon measurement and equitable trading practices.

“These changes are anticipated to create a more competitive market and solidify Nigeria’s position in the global energy sector,” he said.

Acknowledging the challenges faced, Ahmed emphasised NMDPRA’s commitment to resolving disputes and addressing the needs of all stakeholders.

He said that the workshop served as a vital platform for open dialogue, focusing on collective responsibility in meeting current and future demands for wholesale gas and petroleum supplies.

He urged participants to work closely with the authority to optimise midstream and downstream operations, stimulate infrastructure development.

Ahmed also urged stakeholders to contribute to the growth of Nigeria’s energy sector, a proactive approach deemed essential for both the national economy and Nigeria’s role in the global energy market.

However, some industry stakeholders raised concerns about the implementation of the 0.5 percent levy under the PIA.

They emphasised the need for clarification and mutual understanding between authorities and the industry.

Mr Lanre Daramola from Aradel Energy described the engagement as a positive step, expressing hope that discussions will clarify the implementation of the PIA regulations.

He pointed out a significant gap in the legislation, noting that does not specify who is responsible for collecting the levies.

“There is a need for understanding between the authorities and the industry to address this issue, and discussions are ongoing,” he added.

Another participant, Mr Emmanuel Cofie-Spiff from Oando Energy, noted various views were shared aspects of wholesale gas operations, including supply issues and the 0.5 percent payment on gas transactions mandated by the PIA.

“While many concerns have been raised, there is optimism that this stakeholders’ meeting will pave the way for regulations that benefit both operators and the government.

“Stakeholders clarified that while they do not oppose the PIA, they seek clarity on its implementation.

“A pressing question remains regarding who is responsible for paying and collecting the 0.5 per cent levy.

“The NMDPRA has suggested that since industry players produce the gas sold to consumers, they should be responsible for collecting the levies and remitting them to the government,” he added.

He, however, said that many International Oil Companies (IOCs) had expressed reluctance, arguing that this responsibility requires further clarification.

“As discussions progress, stakeholders remain hopeful for a consensus that will facilitate the effective implementation of the PIA regulations, fostering a favourable business environment for both the government and industry operators.

NAN reports that the workshop attracted over 70 participants representing various sectors of the oil and gas industry. (NAN)(www.nannews.ng)

 

Edited by Olawunmi Ashafa

 

Oil & Gas

Africa requires $200bn yearly for energy, climate goals – NLNG

26 total views today

 

By Yunus Yusuf

 

Mr Philip Mshelbila, Managing Director of Nigeria Liquefied Natural Gas (LNG) Ltd., says Africa’s energy sector needs over 200 billion dollars in annual investments to meet its energy and climate goals.

Mshelbila spoke at the networking session reception, hosted by Nigeria LNG in Berlin, Germany, on Monday.

The News Agency of Nigeria (NAN) reports that the 2024 World LNG Summit and Awards has the theme; “Achieving the balance between energy security and decarbonisation”.

Mshelbila, who was represented by Mr Nnamdi Anowi, General Manager, Production, NLNG, said this investment was essential to meeting the growing energy needs of a young and dynamic population with a median age of just 20 years.

According to him, in a continent where the average GDP per capita is only a quarter of the global average, the stakes have never been higher.

“The Global Energy Investment landscape requires a critical balancing act: the need for immediate energy access through fossil fuels, alongside the urgent transition to sustainable energy sources.

“At NLNG, we understand this duality. As one of Africa’s leading energy companies, we are dedicated to sustainably producing Liquefied Natural Gas (LNG), a cleaner energy alternative.

“We see natural gas as not only a vital bridge in the energy transition journey but also a sustainable component of the energy mix, enhancing renewable sources like solar and wind.

“However, investment alone is not sufficient. To truly harness Africa’s energy potential, we must foster a collaborative environment,” Mshelbila said.

He suggested that policymakers, private sector players and investors must work together to create enabling frameworks that attract capital.

The NLNG boss said that there was need to enhance transparency, improve infrastructure, and develop human capital that could drive innovation and implementation of energy projects.

He said that it was imperative that these goals were aligned, not just for economic growth but for the welfare of the communities and the sustainability of the environment.

“The time for action is now. Let us invest in Africa’s energies with a shared vision for a prosperous, sustainable future.

“We, at NLNG, are conscious of our sustainability hallmark. We recently refreshed our brand identity with a new logo and tagline that speaks to inspiring a sustainable future.

“Our new logo is not just a visual change; it represents our commitment to innovation, excellence and sustainability.

“It symbolises our dedication to evolving with the times while staying true to our core values.

“Our positioning in the global scheme of things is to provide energy to improve lives sustainably.

“We believe in the strategic strengthening of the natural gas industry’s value in advancing environmental stewardship and economic prosperity.

“Thank you for your attention and together we can create a transformative energy landscape for the world,” he said.

In her remarks, Parul Patel, Operations Manager, DMG Events, lauded Nigeria LNG Ltd., for its investment in LNG and stakeholder support.

Patel said Nigeria LNG Ltd.(NLNG) had made substantial investments in liquefied natural gas (LNG), reinforcing its commitment to sustainable energy solutions.

She said that this investment not only enhanced Nigeria’s position in the global LNG market but had also contributed significantly to the local economy.

“As part of their ongoing efforts to foster collaboration and dialogue within the industry, NLNG recently hosted a welcome reception for all stakeholders.

“This event provided an invaluable platform for networking and discussing the future of LNG in Nigeria, showcasing NLNG’s dedication to strengthening partnerships across the energy sector.

“The support from Nigeria LNG Limited is vital as it facilitates growth and innovation, paving the way for a more sustainable energy future.

“We applaud NLNG for its leadership and commitment to enhancing the LNG landscape in Nigeria,” she added.

NAN also reports that the 24th World LNG Summit and awards which recorded 750 attendees and 200 speakers representing 500 companies from across the energy value chain is being organised by DMG events. (NAN)(www.nannews.com)

 

Edited by Kevin Okunzuwa/Olawunmi Ashafa

Oil & Gas

PH refinery begins truck-out of petroleum products

203 total views today

By Emmanuella Anokam

The Port Harcourt Refining  Company Limited (PHRC) on Tuesday began the first tuck-out of petroleum products in view of the re-streaming of the rehabilitated facility.

The News Agency of Nigeria (NAN) reports that the re-streaming and truck loading signaled the commencement of crude oil processing from the plant and delivery of petroleum products to the market.

The old refinery is currently operating at 70 per cent of its installed 60,000 barrels per day (bpd) capacity, with plans to ramp up to 90 per cent.

The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million litres of Premium Motor Spirit (PMS or petrol), Kerosene: 900,000 litres, Automotive Gas Oil (AGO or Diesel): 1.5 million litres.

Others are Low Pour Fuel Oil (LPFO): 2.1 million litres and Liquefied Petroleum Gas (LPG), Additional volumes.

NAN reports that the trucks began loading petroleum products which include PMS, AGO and Kerosene, while other product slates will be dispatched as well.

Malam Mele Kyari, the Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPC Ltd.), while marking its first product lifting, said the plant would be producing about 200 trucks of products daily.

Kyari described the commencement of loadout activities as a monumental achievement for Nigeria which signified a new era of energy independence and economic growth for the country.

In the bid to ease the distribution of the products, Kyari said the refinery’s access road was captured  under the roads being renovated under the road tax credit scheme for improved infrastructure and smooth product delivery.

Meanwhile, some petroleum marketers who witnessed the first loading of petroleum products, lauded the NNPC Ltd. for achieving the milestone after many years of being moribund.

Dr Joseph Obele, the National Public Relations Officer (PRO), Petroleum Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed optimism that with the coming on stream of the refinery, fuel price would be reviewed.

“Indeed, it is a dream come true, the plant is up and running. I commend the NNPC Ltd and the host community for realising this project. Marketers now have hope of loading products here,” he said.

High Chief Sunny Nkpe, a community leader and Managing Director Wesham Oil Ltd, said the development would further contribute to the economic development and energy sustainability.

He called for the crude oil processing from the plant to be sustained for Nigerians to feel the impact.

Also speaking, Mr Johnbosco Bosco, the Chairman, Petroleum Tankers Driver (PTD) Branch of  the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), thanked the Federal Government for putting smiles on their faces.

“We are ready to partner with the NNPC Ltd. to ensure that petroleum products reach designated destinations.

“We also want to see this trend continue, we want to be loading regularly in this refinery,” he said.

The CEO of Matrix Energy, Abdukabiru Aliyu also expressed delight over the development and urged the NNPC Ltd to sustain it. (NAN)

Edited by Ese E. Eniola Williams

Oil & Gas

Port Harcourt refinery begins operation

256 total views today

By Emmanuella Anokam

The Port Harcourt Refinery, managed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) through the Port Harcourt Refining Company Limited (PHRC) has commenced operations after undergoing rehabilitation and modernisation.

The refinery with 210,000 bpd refining capacity located at Alesa, Eleme, in Port Harcourt, comprises two operational units which were established in 1965 and 1989.

The News Agency of Nigeria (NAN) reports that the old plant refines a capacity of 60,000 barrels per day (bpd), while the new plant refines 150,000 bpd.

It would be recalled that the Federal Government, under former President, Muhammadu Buhari, had in March 2021 secured a 1.5 billion dollars loan to rehabilitate the facility which contract was awarded to an Italian firm, Tecnimont S.P.A, a subsidiary of Maire Tecnimont Group.

NAN reports that Malam Mele Kyari, the Group Chief Executive Officer of NNPC Ltd. is leading the team to inspect the first lifting of petroleum products from the facility after its rehabilitation.

Speaking at the Refinery on Tuesday, Kyari commended the contractors for doing a great job in ensuring that the refinery was delivered in spite of all challenges and unforeseen circumstances.

“The refinery is running, it is almost a new refinery because every rotating equipment, every compressor is new, we have practically changed everything.

“There is one unit which has never worked for 27 years, but it is back on stream.

“Everything that happened was something we did not have control over, it’s an old machine which would start and fail, it is normal for a plant, so you cannot make promises on it.

“This is really a moment of value for our country because it changes narratives about governance. It brings to the fore what leadership push can bring to systems and institutions,” he said.

He thanked President Bola Tinubu for his unwavering support and understanding towards the rehabilitation of the project and for his persistence to ensure energy security for the country.

They also thanked Nigerians for their patience and for the legitimate expectations of the company to deliver on the other refineries.

Mr Farouk Ahmed, the Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) while congratulating the NNPC Ltd for achieving the milestone, lauded the upgrade of the old plant to a new technology.

“The flare is clean and has no smoke which shows that the plant is working very well and also compliant with environmental requirements,” he said.

Ahmed said all the regulatory support required was granted by the NMDPRA, adding that it would continue to support the completion of the rehabilitation work at the other refineries.

The Refinery Project Manager, Caccavielo Luca expressed satisfaction on the upgrade and re-streaming of the refinery after years of being moribund, adding that the same passion would be applied for the rest of the plant.

The PHRC rehabilitation project, is an Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) project that is aimed at restoring the refinery to full functionality and renewal.

The refinery according to the NNPC Ltd. reached “mechanical completion” of rehabilitation work in December 2023, as it said that the facility would start refining 60,000 barrels of crude oil daily after the 2023 Christmas holiday.

In January, NNPC Ltd, Kyari, said that the refinery was being tested and would be ready by the end of January.

The promise came after the company said it was seeking to engage a reputable company to operate the refinery.

NNPC made further promises when the refinery failed to commence operation in January, that it would now begin operations in April. This, also did not materialise.

Further promises were made that the refinery would commence operations in July and August of this year, of which none of those new dates materialised.

Some Nigerians including former President Olusegun Obasanjo had expressed disappointment that the nation’s refineries have remained moribund for years, as the country had depended on imported product for about 20 years. (NAN)

Edited by Ese E. Eniola Williams

Oil & Gas , Politics

Group canvasses democracy that delivers peace, prosperity, justice

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By Naomi Sharang

Dr Kletsaint Akor, Chairman, Proponent Council, National Democracy Stakeholders Group (NDSG), has called on stakeholders to build a democracy that will deliver peace, prosperity and justice for citizens.

He made the call at the opening of Nigeria Democracy Week 2024, tagged: “Quarter of a Century of Sustained Democracy in Nigeria’s 64 Years of Statehood”, in Abuja.

Akor said that the occasion was a moment of reflection, celebration and renewed commitment to the ideals that had shaped the country’s democratic journey over the past 25 years.

“As we gather here today, we are reminded of the resilience, sacrifices and aspirations that have brought us to this significant milestone.

“Democracy, as we know, is not just a system of governance; it is a collective effort that demands our continuous dedication to equity, justice and inclusivity.

“As we celebrate 25 years of democratic governance, let us remember that the true measure of democracy is not in the number of years it endures but in the lives it transforms.

“Let us commit ourselves to building a democracy that delivers peace, prosperity and justice for all Nigerians,” he said.

Akor called on the country’s leaders to prioritise transparency, accountability and the welfare of the people.

“The strength of a democracy lies not in its institutions but in the trust that citizens place in their leaders,” he said.

In his remarks, the Chairman, Steering Board of NDSG, Morgan Okwoche, said the most significant achievements of Nigeria’s democracy had been the peaceful transition of power between administrations, particularly across party lines.

Okwoche, however, identified some challenges in Nigeria’s democratic journey, including insecurity, economic inequality, civic apathy, insurgency in the north-east, banditry and communal insecurity.

“These issues have disrupted governance and have also eroded economic development,” he said.

Okwoche called on stakeholders to renew their commitment to the ideals of democracy and the vision of a united, inclusive and thriving Nigeria.

Also speaking, the Inspector-General of Police, Kayode Egbetokun, said that the past 25 years of uninterrupted democracy represented a triumph for Nigerians.

The News Agency of Nigeria (NAN) reports that Egbetokun was represented by the Commissioner of Police in the Federal Capital Territory (FCT), Olatunji Disu.

He said that the uninterrupted democracy was a statement of an enduring commitment to the principle of governance, the rule of law and the freedom that underpinned democratic systems.

“For the Nigerian Police Force, this period has underscored our vital roles as custodians of peace and security, which are fundamental to the success of any democracy,” he said.

Similarly, the Controller-General of Nigerian Correctional Service (NCS), Haliru Nababa, said that there were no fewer than 83,000 inmates in 265 custodial centres across the country.

Nababa, who was represented by Assistant Controller of Corrections, Ope Fatinikun, added that there were also a total of 53,000 awaiting trials.

“Democracy has given the NCS space to operate. Democracy has been a good journey so far,” he remarked. (NAN)

Edited by ‘Wale Sadeeq

Oil & Gas

NNPC Ltd pledges collaboration with sports stakeholders to revamp football

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By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has pledged to work closely with stakeholders in the sports sector to develop and commercialise sports, especially football, in Nigeria.

Mr Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd., made the pledge on Thursday while receiving a delegation from the National Sports Commission (NSC), the International Management Group (IMG) and the Afrosport Network, at the NNPC Towers.

Kyari, while addressing the delegation led by Alhaji Shehu Dikko, Chairman of NSC, said NNPC Ltd. was ready to be part of the initiative to revamp the nation’s football.

Kyari, in a statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. expressed delight that the company was identified as a critical partner in the journey of making the country’s football sector work again.

“NNPC will be a prime partner in the journey to bring back value to our football, to reshape it, re-engineer it and bring happiness to our people,” Kyari stated.

He identified football as a tool of immense value that could bring untold benefits to the Nigerian economy and to the NNPC Ltd., as a company.

Speaking earlier, Dikko said football was fundamental to the economies of the best footballing countries in the world.

He added that President Bola Tinubu had already demanded immediate action to revamp the game.

He said that the multiplier effects of football were enormous and could facilitate the revamping of related industries across the value chain.

Dikko noted that IMG, which promotes the English Premier League, was invited as a technical partner to leverage their experience in the sport.

It would be recalled that NNPC Ltd. once had a football club, the NNPC FC, based in Warri, Delta, which played in the Division One of the then Nigeria National League before it was disbanded in 1989. (NAN)(www.nannews.ng)

0Edited by Emmanuel Afonne

NCDMB
Oil & Gas

$50m Nigerian content fund catalyst to oil sector devt.—NCDMB

708 total views today

By Emmanuella Anokam

The Nigerian Content Development and Monitoring Board (NCDMB) says its 50 million dollars Research and Development Fund is a catalyst to the oil and gas research and development space.

The Executive Secretary, NCDMB, Mr Felix Ogbe, made this known in Abuja at the SciBiz 2024 annual conference, organised by the Triple Helix Nigeria.

Triple Helix hosted the conference, following its successful inauguration in 2021.

This is in fulfilment of the requirements for galvanising members in intellectual discourse to promote research commercialisation and innovation culture in Nigeria and Africa.

The theme of the conference, sponsored by the NCDMB, Petroleum Training Institute (PTI) and others, is “Integrating Research, Innovation, and Policy: Triple Helix Pathway to Research Commercialisation”.

Ogbe, represented by Mr Silas Ajimijaye, General Manager, Research and Development, NCDMB, said pivotal to any meaningful sustainable initiative was funding, and within this context, the much-needed fund was created in 2020.

The executive secretary underscored the need to harness expertise, leading technologies and best practices of international experts and institutions to strengthen research and innovation potential.

He described partnerships as a strategic way to enhance local efforts to make Nigeria an important player in global innovation.

“Strategically, the Triple Helix model of Academia, Industry, and Government collaboration is an appropriate international business framework for expressing ideas about how research could be turned into new products and services.

“One avenue through which NCDMB exercises this mandate is by applying local content development to enhance research and commercialisation of innovative solutions for Nigeria’s oil industry,” he said.

He said that it would onboard more impactful research projects in the upcoming months in addition to the fourteen applied research projects that it presently sponsored at various stages of technological readiness.

He, however, urged the participants to explore more collaborative opportunities to develop strategies to drive progress.

Alhaji Abdulmalik Halilu, President, Triple Helix Nigeria, said that transition from education through research to commercialisation heralded an evolving frontier where academia, industry and government could collaborate under the Triple Helix model.

He said that the model would ensure that research transcended the boundaries of laboratories and classrooms to solving real-world problems and fostering economic prosperity.

He cited the World Intellectual Property Organization (WIPO), which said that Nigeria’s annual patent application has risen from below hundred in 2016 to more than 400 in 2023.

According to him, this significant growth, suggests that with the right policy environment, Nigeria has the potential to transform universities to solution-based entrepreneur centers of excellence.

He said that Triple Helix Chapter was established in. Nigeria in 2021 by some professionals with common interests of economic development through research and innovation.

He said that it was in response to identified challenges and opportunities in a knowledge based economy.

“The association has a global network of six regions including: North America; Latin America; Europe; North Asia; South Asia and Africa.

“We set an ambitious Vision 10-10-10-10 to demonstrate our commitment to bequeath entrepreneurial university system in Nigeria.

“Through this vision, Triple Helix Nigeria seeks to inspire at least 10 knowledge institutions, to accelerate innovation and have at least 10 per cent equity in 10 listed companies in the next 10 years.

“This model has worked in many of the regions where Triple helix Association has a strong presence and we have no doubt that it can happen in Nigeria and Africa,” he said.

He expressed hope that the conference would foster structured partnerships between industry and research community to attract research based funding in the direction of Africa based researchers.(NAN)(www.nannews.ng)

================

Edited by Kadiri Abdulrahman

Oil & Gas

Nigeria consumes 50m litres of petrol daily, says NMDPRA

640 total views today

By Yunus Yusuf

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the country’s daily petrol consumption currently ranges from 45 million litres to 50 million litres.

NMDPRA’s Chief Executive Officer, Mr Farouk Ahmed, disclosed this while speaking on the sideline of the ongoing 18th Africa Downstream Energy Week in Lagos.

The News Agency of Nigeria (NAN) reports that the 2024 OTL Africa Downstream Energy Week has the theme: “Alliances For Growth”.

Ahmed said  that higher petrol consumption during the fourth quarter, especially near the holiday season, was typical due to increased industrial and consumer activities.

He expressed hope that recent price adjustments/market liberalisation would reduce cross-border smuggling, helping to retain more petrol within Nigeria.

“We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.

He said that actual petrol consumption levels in Nigeria could decrease but were unlikely to drop significantly.

Discussing the conference’s theme, Ahmed emphasised the importance of  alliances in the industry for efficiency and cost reduction.

He said  that fewer shared facilities would be more efficient than numerous idle private depots, benefiting both businesses and consumers.

“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed said.

He said that shared facilities among agencies such as NMDPRA, Nigerian Maritime Administration and Safety Agency and the Nigeria Ports Authority  could reduce operational inefficiencies.

According to  Ahmed, NMDPRA does not plan to enforce mergers but industry players are encouraged to consider partnerships, especially in saturated markets, to improve efficiency and lower costs for consumers.

“With strategic alliances in place, we can reduce costs for consumers by making the most of our existing infrastructure,” he said.

Ahmed gave the assurance that NMDPRA would continue with evaluating project viability to ensure consumer benefit.

According to him, collaborative efforts and efficient operations are critical for a sustainable energy future in Nigeria. (NAN)(www.nannews.ng)

Edited by Kevin Okunzuwa/Ijeoma Popoola

Oil & Gas

Stakeholders earmark N10bn fund for CNG conversion

1,011 total views today
By Emmanuella Anokam
The Ministry of Finance Incorporated (MOFI) and other stakeholders are partnering to provide N10 billion credit to Nigerians for Compressed Natural Gas(CNG) conversions.
The stakeholders are Nigerian Consumer Credit Corporation (CREDICORP) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
At the agreement signing on Wednesday in Abuja, the partners unveiled the N10 billion Credit Access for Light and Mobility (CALM) Fund, in response to growing financial strain on Nigerians, due to high energy and transportation costs.
The News Agency of Nigeria (NAN) reports that the Pi-CNG and CREDICORP are among the portfolios companies under MOFI, an investment and assets management establishment of the Federal Government.
The new fund will enable Nigerians to obtain loans for CNG conversions kits and energy-saving solutions through Participating Financial Institutions (PFIs), providing a pathway to sustainable energy without the financial burden of upfront costs.
Speaking, Mr Uzoma Nwagba, Managing Director/Chief Executive Officer, CREDICORP, said MOFI would aggregate and expand the consortium fund, collaborating with private and institutional investors to grow initial N10 billion fund.
Nwagba explained that the CREDICORP would act as Fund Manager; using its expertise in consumer credit to manage loan disbursements and offer credit guarantees.
“We are setting aside a fund that will allow Nigerians specifically access credits to convert their vehicles to CNG with one to three years repayment duration.
“CREDICORP will seed the CALM Fund with N2.5 billion, ensuring that Nigerians can access affordable financing at 15 to 20 per cent per cent interest rate, through Participating Financial Institutions (PFIs).
“People are charged different interest rates depending on their institutions and credit worthiness, financial behavior, earnings and diligence with paying back previously,” he said.
He said the Pi-CNG Ltd. would serve as a service provider, facilitating the conversion of vehicles to CNG through authorised centers and offering discounted conversion packages for consumers using CALM loans.
Michael Oluwagbemi, Chief Executive Officer, Pi-CNG, said the need for Nigerians to be mobile and enjoy affordable, eco-friendly fuel and reliable transportation made President Bola Tinubu to introduce the Pi-CNG programme.
Oluwagbemi said to achieve this for a vast majority of consumers, the president initiated the launch of the conversion incentive programme for the commercial sector.
“The Consumer Credit Corporation is partnering with us to launch this access for private individuals to access consumer credits to afford the cost of conversion, to enjoy the low cost of CNG and the access it gives for transportation.
“This scheme has the tendency to attract the investment that will enable these conversion kits to be manufactured domestically; another programme is being coordinated with MOFI, on domestic manufacturing capacity for the CNG sector,’’ he said.
The Pi-CNG boss explained that the development would enable civil servants or workers in the organised private sector whom their salaries/income could be tracked and verified by a financial institution to benefit from the fund.
He said it would naturally translate into other sectors of the economy, because the civil servants and organised private sector workers could leverage their vehicle at low cost for the economic benefit.
Earlier, Dr Armstrong Takang, Managing Director/Chief Executive Officer, MOFI, said the fund would address the unintended consequences arising from oil subsidy reforms.
He said one of the unintended consequences was the cost of transportation which spiked over the last several months, creating a lot of challenges for many families who were finding it difficult to move around.
“Through flexible financing options, Nigerians will be able to obtain immediate credit to convert their vehicles to CNG and adopt solar energy solutions—reducing dependency on expensive fuels and lowering electricity bills,” he said.
Nigerians are encouraged to explore this opportunity by applying for CALM Fund loans through participating financial institutions (www.credicorp.ng/apply) while specific CNG conversion centres will market the options to consumers. (NAN)(www.nannews.ng)
Edited by Chijioke Okoronkwo
Oil & Gas

Litigations delay implementation of host communities trust fund – Stakeholders

935 total views today

By Emmanuella Anokam

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), says litigations is delaying the Host Community Development Trust (HCDT) Fund creation and implementation.

HOSTCOM said pending issues by host communities in choosing members and chairman of the Board of Trustees (BoT), also delayed the implementation of the HCDT funds.

Dr Benjamin Tamaranebi, National President, HOSTCOM, gave the clarifications on Thursday in Abuja, while reacting to claims on the Host Community Project Funding in Akwa Ibom.

The HCDT is responsible for managing and distributing oil company funds to the host communities, ensuring that resources are used effectively for community development projects.

Host communities in Akwa Ibom had decried delayed release of funds by oil companies to HCDT, alledging that it hindered projects implementation outlined in their respective development plans.

Community representatives from HCDT in Ibeno, Eket, Mbo, Esit Eket, Uruan and Ikot Abasi LGAs, chided the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC), for its inability to enforce statutory sanctions on defaulting oil companies.

However, Tamaranebi dismissed as “unfounded,” alleged delays in funding development projects in host communities in Akwa Ibom.

“We must state clearly that some of the delays of HCDTs creation are caused by community members and litigations over who wants to be a member and chairman of the Board of Trustees which has nothing to do with NUPRC.

“So, we advise communities to conduct themselves properly for the benefit of the HCDT funds,” he said.

Dr Benjamin Tamaranebi, National President, HOSTCOM

He said the NUPRC initiated the HCDTs Forum to meet with community representatives through its HCDT trustees, to address broader issues and grievances ensuring continuous dialogue between host communities and the operators.

The national president said the forum had promoted transparency and accountability towards ensuring that community voices are heard at a higher level.

Tamaranebi said there was registration of reputable 34 asset/fund manager to invest 20 per cent of the three per cent Operating Expenses or Expenditure (OPEX) on behalf of the trusts.

“Some of the trusts are already benefiting from the dividend of this investments.

“These achievements underscore the commitment of the NUPRC and Settlors to the sustainable development of host communities.

“We encourage all stakeholders, including community members and operators, to maintain open lines of communication with the HOSTCOM or NUPRC,” he said.

On project implementation, Tamaranebi urged parties to engage with HOSTCOM directly for resolution rather than resorting to public statements that may misinform or escalate tensions.

He said HOSTCOM was actively monitoring the situation in Akwa Ibom and other states, to advocate for the rights and developmental needs of local communities. (NAN)(www.nannews.ng)

Edited by Chijioke Okoronkwo

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