Major International Business Headlines Brief::: 04 March 2022
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Major International Business Headlines Brief::: 04 March 2022
<https://www.nedbank.co.zw/>
ü Ukraine conflict: Asia stocks drop after nuclear plant attack
ü The shipping giant banking on a greener fuel
ü Ceramics industry in plea for help with rising energy prices
ü Energy bills could reach £3,000 as oil and gas prices soar
ü Russia halts deliveries of rocket engines to the U.S.
ü Saudi crown prince plays the oil card in quest for U.S. recognition
ü Russian rouble hits new lows in volatile trading
ü Google suspends all ad sales in Russia as censorship demands grow
ü Russian central bank to hold daily auctions to help banks manage
liquidity
ü Nigeria: FAAC Shortfall - NLC Kicks As Kano Govt Slashes Workers Pay
ü South Africa: Network of Corruption Exposed in Lottery Probe
ü Nigeria: Expatriate Quota - Govt Not Out to Witch-Hunt Companies, Says
Interior Ministry
ü Nigeria Earned $2.29bn Through Beer Sales in 2019 - Report
ü Nigeria: Energy Crises - Electricity Output Plunges
<mailto:info at bulls.co.zw>
Ukraine conflict: Asia stocks drop after nuclear plant attack
Surveillance camera footage of the Zaporizhzhia nuclear power plant during
shelling.
Share prices have fallen in Asia after a fire broke out at the Zaporizhzhia
nuclear power plant in Ukraine, the largest in Europe.
Japan's benchmark Nikkei index was 2.5% lower and the Hang Seng in Hong Kong
was down by 2.6%.
Oil prices rose in Asia morning trade, with Brent crude above $112 a barrel.
The fire happened after Russia troops shelled the plant. Some investor
concerns were eased after officials said the plant's safety was "secured".
The International Atomic Energy Agency (IAEA) later said that it had spoken
to Ukraine's leadership and had been told important equipment at the plant
was still working.
The shelling has drawn international condemnation, with the US President Joe
Biden joining Ukrainian President Volodymyr Zelensky in urging Russia to
cease the shelling and allow firefighters to access the site.
In recent days, Russia's invasion of Ukraine has sent shockwaves through the
global financial and energy markets.
This week, the cost of Brent crude - the global oil benchmark - jumped above
$100 a barrel, rising to more than $119 to the highest since May 2012.
The cost of natural gas and coal have also jumped on global markets.
Soaring wholesale energy prices have pushed the average cost of petrol and
diesel on UK forecourts to record highs.
It has also been warned that Britain's household energy bills could reach as
high as £3,000 a year.
Meanwhile, the Russian rouble has hit a record low against the US dollar as
countries around the world impose tough sanctions on the country.-BBC
The shipping giant banking on a greener fuel
Right now, there are around 50,000 merchant vessels out at sea, or docked at
a quay somewhere.
Ordinarily, their work keeps the entire global economy moving but it's been
a very turbulent few days for the shipping market. The Russian invasion of
Ukraine is causing major disruptions for the industry, with many vessels
stuck in ports and freight costs rocketing higher.
In the wake of sanctions, shipping giant, Maersk has temporarily suspended
its container shipping to and from Russia (except for food, medical and
humanitarian supplies).
These vessels criss-crossing multiple trade routes around the the globe
generate a staggering 3% of the world's carbon dioxide emissions - about the
same volume as Germany.
The European Union is working hard to cut those CO2 emissions with several
schemes designed to make using fossil fuels more expensive.
But the problem for shipping firms is that alternative, or 'greener' fuels
are still only produced in tiny quantities compared with traditional marine
fuel.
Nevertheless, Maersk, has made the decision to order 12 ocean-going ships
which run on methanol. Each costs $175m (£130m) and is capable of carrying
16,000 containers.
Jacob Sterling, Maersk's head of decarbonisation innovation and business
development. hopes those vessels will kick-start the market for shipping
powered by methanol, which is potentially a greener source of fuel for the
industry.
"We have had this chicken and egg dilemma," says Mr Sterling. "We think this
will unlock the scaling that needs to happen."
Maersk acknowledges it will be challenging to source enough green methanol
to keep the ships running.
"We believe there's only 30,000 tonnes of fuel being being produced now in
the world [every year]," says Mr Sterling.
It's likely at least 15 times that will be needed to fuel Maersk's new ships
alone.
With a fleet of almost 700 vessels, Maersk is one of the biggest players in
shipping. "We emit a lot of CO2. We need to do something about it," says Mr
Sterling.
As part of this strategy, a smaller container vessel, the first of its kind,
will be launched on the Baltic Sea next year.
Maersk estimates these new smaller ships could save 1.5 million tonnes of
CO2 per year, or 4.5% of its fleet's emission.
This may seem a drop in the ocean but Mr Sterling adds, "This is exactly why
we need to get started now."
The new vessels are designed to operate on dirtier marine fuel, however, the
aim is to eventually operate solely on green methanol.
Methanol is part of the alcohol family of chemicals used in paints,
plastics, clothing fabrics and pharmaceuticals, and as a vehicle fuel.
Unlike ammonia or hydrogen, (which are also promoted as green fuels),
methanol does not need to be stored under pressure, or extreme cold, and
many ports already have the infrastructure to handle it.
"We think this is the good solution to get started with," says Mr Sterling.
"It's relatively easy to handle on ships, and the ship technology is well
known."
At the moment most methanol is derived from natural gas. Green methanol does
not rely on fossil fuels and can be made in a couple of ways.
Bio-methanol is produced from biomass, such as agricultural waste. Heat,
steam, and oxygen are used to convert the biomass into useful fuels,
including methanol.
There's also e-methanol. Here renewable electricity splits water into oxygen
and hydrogen, which is combined with carbon dioxide.
"Methanol is a hydrocarbon fuel. Burning it generates emissions out of the
ship's smokestack," says Xiaoli Mao, from the International Council on Clean
Transportation (ICCT).
But, in its favour, green methanol has a low carbon footprint, if you look
at the whole production process.
That is because the methanol has been derived from CO2 from the air, or CO2
that has been captured by plants, which roughly cancels out the CO2 released
when the methanol is burned as fuel.
"You have to have a sustainable source of carbon," explains Ms Mao.
However, she points out that both technologies for capturing CO2 are "very
nascent and very expensive".
Accurately measuring emissions during the lifecycle is also complex. "[It]
requires a lot of measurement and certification throughout the production
and supply chain," says Dr Tristan Smith, a low-carbon shipping expert from
University College London (UCL).
"In practice, the production process even of biomass derived-methanol is
energy intensive and normally has a carbon footprint," he says.
Danish firm, European Energy, is among the very few green methanol
producers. It's set to supply 10,000 tonnes of e-methanol for Maersk's first
vessel. Although later this year, construction of a commercial-scale plant
near Aabenraa in southern Denmark will start. Operations begin in 2023.
Once fully ramped up it is hoped the site will produce at least 30,000
tonnes of methanol a year.
The plant will harness solar power and carbon dioxide from biogas
production, which uses manure.
Soeren Kaer, Head of Technology, at the firm's Power to X division.
"We take in CO2 that is captured by the plants or the crops from the
atmosphere," says Soeren Kaer, Head of Technology, at the firm's Power to X
division.
"The plants used as animal feed, have a very short rotation cycle. So, it's
really a circular process. In terms of the greenhouse gas impact, it's very
low," explains Mr Kaer.
Scaling-up is one of the biggest challenges for green methanol production,
"but that would be the same for any new fuel," he says.
Compared to conventional marine fuel, green methanol is twice as costly and
the new vessels are 10-15% more expensive to build.
However, even if that means higher costs passed on to customers, Maersk's
Jacob Sterling says clients are on board. "We do see customers that are
willing to pay a premium for carbon neutral transportation."
The company has the deep pockets needed for investment, and has recently
seen profits soar.
Maersk has also invested in other start-ups developing sustainable
alternative fuels.
Dr Smith says the shift to green methanol is a welcome step. "These ships
have the potential to achieve much lower greenhouse gas emissions than ships
being operated today."
However, he thinks another fuel, ammonia is a better long-term solution. But
this technology is also still being developed.
"I think that the end game for shipping is not going to be one fuel," says
Mr Sterling. "It will likely be a patchwork of technologies and fuel types."
"We go for methanol now because we can, and because we think it's a good
solution. But we'll continue to innovate."-BBC
Ceramics industry in plea for help with rising energy prices
The Ukraine crisis has made the rising energy price situation "even worse",
a UK ceramics manufacturing industry trade body says.
UK household energy bills could reach as high as £3,000 a year as oil and
gas prices surge amid the conflict.
Spiralling energy costs are of concern for energy-intensive manufacturers
including the ceramics industry.
The Stoke-on-Trent based British Ceramic Confederation said it needed
government help.
Chief executive Laura Cohen said: "Now gas prices are 10 times what they
were a year ago... energy prices as a whole for British manufacturers are
internationally uncompetitive.
"The Ukraine crisis has made things even worse. We need government urgently
to target some relief towards ceramics and other energy-intensive
manufacturing sectors."
Russia's invasion of Ukraine has made the trading, banking and shipping
sectors reluctant to buy Russian commodities, pushing up prices.-BBC
Energy bills could reach £3,000 as oil and gas prices soar
UK energy bills could reach as high as £3,000 a year as oil and gas prices
surge amid the Ukraine conflict, the energy industry has said.
Russia's invasion of Ukraine has made the trading, banking and shipping
sectors reluctant to buy Russian commodities, pushing up prices.
The price of Brent crude oil rose above $119 a barrel to the highest since
May 2012, while gas prices rose as well.
Average UK petrol prices have also hit a new record.
The RAC said petrol reached £1.52 a litre for the first time, while diesel
rose to a high of 155.79p.
Russian oil and gas exports are exempted from Western sanctions for now, but
the prospect of further action by the US and the EU is stifling Russian
trade.
Emma Pinchbeck, the chief executive of the energy industry body Energy UK,
said: "It's a really worrying time for both customers and industry.
"We've been saying since the autumn that we'd expect bills to go up again in
October. With what we're seeing in Ukraine and in the oil and gas markets,
we're now expecting those to go up further."
She said that if oil prices remain at elevated levels "you can expect bills
to be anywhere between £2,500 and £3,000 in October depending on the tariffs
people have and what happens in the market".
The prices that people pay for energy and fuel depend on wholesale markets,
which can go down as well as up.
But average UK household energy bills are already set to rise to around
£2,000 in April when the price cap is increased.
Gas prices had hit record highs last year due to colder winters which put
pressure on supplies and reduced the amount of reserves countries had stored
up.
Ms Pinchbeck said: "We have been saying for a long time this is an enduring
crisis on the gas price and now that's being exacerbated by what's happening
in Ukraine."
The RAC also warned that high fuel prices could be here to stay.
RAC spokesman Simon Williams, said: "What drivers pay at the pumps in the UK
is determined by the cost of oil and the exchange rate as fuel, like oil, is
traded in dollars."
He said with oil prices rising and the value of the pound at $1.33 "further
price rises are inevitable in the coming days and weeks".
Brent crude rose as a high as $119.84 a barrel at one point on Thursday,
before sliding back to about $112.
Meanwhile, European stock markets slipped as the Russian invasion continued.
The UK's FTSE 100 share index closed down 2.5%, while the main markets in
France and Germany ended down 1.8% and 2.1% respectively.
Energy companies are sending emails to customers right now warning of price
rises to hit in April - but these are a frozen picture.
Bills are massively increasing as the price cap is going up by more than 50%
and it is starting to feel real now, as people are now being told how much
their individual direct debits will increase by.
But those increases don't take account of what is currently taking place in
Ukraine.
The price cap is been raised every six month which means there is a
half-year lag in protecting customers from immediate fluctuations on the
global gas and oil markets.
There was such huge pressure on the government to step in and act ahead of
April's increase that they announced a package of extra help for households
this time.
It's not until the next price cap rise in October that we will feel the
impact of the gas and oil spikes going on right now.
The government will be under more pressure to help customers, and while for
many households another energy price rise is unthinkable, there also seems
to be a growing acceptance among consumers that the 'Putin Penalty' is one
we will all have to shoulder to some extent.
A government spokesperson said: "It is hard to predict what longer term
impacts the current situation in Ukraine will have on energy costs.
"However, the energy price cap will continue to insulate millions of
customers from volatile global gas prices."
Neil Wilson, chief market analyst at Markets.com, said oil traders were
acting as though Russian energy exports had already been sanctioned, and
were looking for other sources of oil.
"Self-sanctions are already playing a big role," he said. "Shell, BP,
Chevron are all exiting but traders and customers are swerving Russian oil
without any sanctions needed."
"European gas prices hit a record this morning. Coal prices are through the
roof too," he said, adding there was "nowhere to hide for European consumers
about to get hit by a mega electricity bill and soaring inflation."
Energy prices are pushing up the cost of living in the UK.
The UK rate of inflation - which shows the cost of living - rose at a
30-year high of 5.5% in January and is expected to rise above 7% once the
new energy price cap is introduced in the spring.
Russia is the second biggest exporter of crude oil, and is also the world's
largest natural gas exporter.
Oil cartel Opec decided not to increase production further than already
planned at a meeting on Wednesday, despite US calls to pump more oil.
Ukraine and Russia are also two of the world's largest wheat producers, and
account for nearly a third of global exports.
Exports from the Black Sea have nearly halted amid the invasion of Ukraine
and sanctions.
Wheat prices jumped earlier in the week, but fell back on Thursday.-BBC
Russia halts deliveries of rocket engines to the U.S.
(Reuters) - Russia has decided to stop supplying rocket engines to the
United States in retaliation for its sanctions against Russia over Ukraine,
Dmitry Rogozin, head of the state space agency Roscosmos, said on Thursday.
"In a situation like this we can't supply the United States with our world's
best rocket engines. Let them fly on something else, their broomsticks, I
don't know what," Rogozin said on state Russian television.
According to Rogozin, Russia has delivered a total of 122 RD-180 engines to
the U.S. since 1990s, of which 98 have been used to power Atlas launch
vehicles.
Roscosmos will also stop servicing rocket engines it had previously
delivered to the U.S., Rogozin said, adding that the U.S. still had 24
engines that would now be left without Russian technical assistance.
Russia has earlier said it was suspending cooperation with Europe on space
launches from the Kourou spaceport in French Guiana in response to Western
sanctions over Ukraine.
Moscow has also demanded guarantees from British satellite company OneWeb
that its satellites would not be used for military purposes. OneWeb, in
which the British government has a stake, said on Thursday it was suspending
all launches from Russia's Baikonur Cosmodrome in Kazakhstan. read more
Rogozin said Russia would now focus on creating dual-purpose spacecraft in
line with the needs of Roscosmos and the Defence Ministry.
The Thomson Reuters Trust Principles.
Saudi crown prince plays the oil card in quest for U.S. recognition
(Reuters) - Saudi Arabia's crown prince says he simply doesn't care whether
Joe Biden misunderstands him.
The prince is instead looking to his oil power to deliver his goals,
according to sources familiar with Riyadh's thinking: recognition from the
American president that he's the real ruler of the kingdom and a stronger
hand in the costly Yemen war.
That's one reason why Crown Prince Mohammed bin Salman is resisting U.S.
pressure to pump more crude to lower the price of oil that has surged since
Russia attacked Ukraine, besides keeping Riyadh's oil pact with Moscow
alive, the sources said.
"The Saudis have demands too, before they meet any of the U.S. requests. The
Yemen file and the recognition of the crown prince as the de facto ruler are
on top of these," one of the sources familiar with Saudi government thinking
told Reuters.
Traditionally strong ties between Riyadh and Washington were shaken when
Biden released a U.S. intelligence report implicating Prince Mohammed in the
2018 murder of journalist Jamal Khashoggi and ended U.S. support for
offensive operations in Riyadh's costly war against Iran-aligned Houthis in
Yemen.
So far, Biden has refused to speak to Prince Mohammed directly, saying
86-year-old King Salman is his counterpart - even though the young prince
effectively runs the kingdom and had a close relationship with Biden's
predecessor Donald Trump.
In an interview with The Atlantic published on Thursday, Prince Mohammed
said his aim was to strengthen Riyadh's long, historical relationship with
Washington, but he was not concerned about whether Biden misunderstood him.
read more
"Simply, I do not care," the crown prince was quoted as saying. "It's up to
him to think about the interests of America."
The Saudi authorities did not respond to Reuters requests for comment.
Prince Mohammed, who is known as MbS, denies any involvement in Khashoggi's
death.
Riyadh has repeatedly stressed the strength of its strategic partnership
with the United States and that its oil policy is based on a commitment to
market stability and supply security driven by market fundamentals.
ONLY CARD TO PLAY
The Organization of the Petroleum Exporting Countries (OPEC) and its allies
led by Russia have been unwinding historic output cuts they instated in 2020
to boost prices after the coronavirus pandemic caused an unprecedented fall
in global demand.
But since Russian troops moved into Ukraine last week and the West hit
Moscow with stringent sanctions, oil prices have surged to the highest since
2012 on concerns about disruptions to supply, with little global spare
capacity to pump more crude.
Washington would like the producer alliance, known as OPEC+, to increase
output faster than it has been doing since August but only a few countries
have spare capacity, including de facto OPEC leader Saudi Arabia and the
United Arab Emirates (UAE).
The U.S. State Department's special envoy for energy affairs, Amos
Hochstein, flew to Riyadh last month for talks about managing the potential
impact on oil markets if Russia were to invade Ukraine - which it did a week
later.
"MbS's only card is oil policy to press the Americans to give him what he
wants, which is recognition and weapons for Yemen," said a second source
familiar with Saudi thinking.
On Wednesday, the OPEC+ alliance stuck to its long-standing plans for
gradual increases in output of 400,000 barrels per day each month, rather
than boosting supply faster. read more
"Saudi Arabia ... has sought not to be seen acting against Russian
interests. In doing so, the kingdom could kill two birds with one stone:
keep the door open to Moscow and give President Joe Biden some payback for
his refusal to engage with Crown Prince Mohammed bin Salman," wrote James
Dorsey, a senior fellow at National University of Singapore's Middle East
Institute.
In a sign of his eagerness to be part of the conversation with Washington,
Prince Mohammed cancelled a trip to China for the Winter Olympics to ensure
he was at his father's side when Biden called King Salman bin Abdulaziz on
Feb. 9, three sources told Reuters.
In the call, which covered energy, Iran and Yemen, the king spoke about
maintaining market stability and emphasised the need to maintain the OPEC+
pact, state media said. read more
"The situation is still as is - counterpart to counterpart - but given how
the U.S. is in a difficult situation now, they might compromise," said one
Riyadh-based diplomat, adding that Prince Mohammed wanted official U.S.
recognition and Washington's support in Riyadh's seven-year Yemen campaign.
Asked for comment, a U.S. State Department spokesperson said: "While energy
and security issues are important policy considerations for both countries,
we will not discuss the details of our private diplomatic engagements."
"As we have noted publicly, we have held discussions with Saudi Arabia on a
collaborative approach to managing potential market pressures stemming from
Russia's invasion of Ukraine."
TRYING TO STAY NEUTRAL
The sources and analysts said Saudi Arabia and other Gulf states could not
afford to remain neutral between their Western allies and Russia for long,
and would ultimately choose the region's security guarantor America -
especially given the risk of secondary sanctions over Ukraine.
But for now, Riyadh and other Gulf oil producers may get away with a neutral
stance that allows OPEC+ to continue to function, a senior oil industry
source said.
The last time the producers pact unravelled, Riyadh and Moscow became
embroiled in a price war and all-out battle for market share that caused oil
prices to plummet, ultimately hurting OPEC and U.S. oil producers alike.
Other OPEC producers also say the surge in prices is being driven by
geopolitical tension, rather than market fundamentals, and the potential
return of Iran to the market if a deal is reached to revive its nuclear
agreement needs to be taken into account when determining oil output levels.
"The feedback that we got from the Saudis is that they see the OPEC+
agreement with Russia as a long-term commitment and they are not ready yet
to endanger that cooperation ... while making it clear that they stand with
the West when it comes to security cooperation," said a Western diplomat in
Riyadh.
"They are trying to stay neutral as far as possible, but now that (Russian
President Vladimir) Putin has gone for a full invasion, they may no longer
have that luxury."
WITH US OR AGAINST US
Gulf states also have business and geopolitical interests with Russia, whose
president stood by the crown prince when Western leaders shunned him in the
uproar over Khashoggi's killing at the kingdom's consulate in Istanbul.
But it was the West that sent troops to liberate Kuwait in the 1990-1991
Gulf War and defended Riyadh when late Iraqi President Saddam Hussein
invaded Kuwait.
And Riyadh and other Gulf states still rely on the American security
umbrella even as they move to diversify defence partners due to a perception
that U.S. commitment is waning.
"The United States is committed to advancing Saudi defenses," the U.S. State
Department spokesperson said. "We also have a robust dialogue on helping
Saudi Arabia improve its ability to defend its territory against security
threats from Yemen and elsewhere in the region."
Dorsey said the problem for Gulf leaders was that Ukraine could potentially
open a Pandora's Box in which major powers either side of the divide invoke
former U.S. President George W. Bush's post 9/11 maxim: "You're either with
us or against us."
In The Atlantic article, the crown prince hinted that if relations were to
sour with Washington, others countries such as China would be more than
ready to step in.
"Where is the potential in the world today?" he said. "It's in Saudi Arabia.
And if you want to miss it, I believe other people in the East are going to
be super happy."
The Thomson Reuters Trust Principles.
Russian rouble hits new lows in volatile trading
(Reuters) - The Russian rouble slumped to new record lows against the dollar
on Thursday though it closed the Moscow session little changed, after Fitch
and Moody's downgraded Russia's sovereign debt to "junk" status, with steps
by the central bank and finance ministry failing to halt its slide.
Russia's financial markets have been thrown into turmoil by sanctions
imposed over its invasion of Ukraine, the biggest attack on a European state
since World War Two. The stock market remains closed and trading volume on
its sovereign debt has vanished.
The rouble ended at 106.01 per dollar in Moscow from Wednesday's 106.02
close, after hitting an intraday record low of 118.35, down over 10% on the
day.
Against the euro , it closed down another 1.9% at 117.60 after weakening
past 125 for the first time ever during the session.
In foreign markets , the rouble was recently trading at 110 per dollar, down
9.1% on the day, with bids in other platforms close to 117 per dollar.
"You know trading is thin when the Bank of England and European Central Bank
stop publishing quotes on the rouble exchange rate," said Brian Jacobsen,
senior investment strategist for multi-asset solutions at Allspring Global
Investments.
"The bid-ask spread is a measure of liquidity and you could drive a truck
through that spread. The longer the situation plays out, the more economic
damage will be done to the Russian economy and sellers of roubles will get
more and more desperate while potential buyers get more and more hesitant to
hold the currency."
Russia's invasion of Ukraine and the sanctions imposed in response have led
to dire warnings about the Russian economy, with JPMorgan predicting a 35%
contraction in the second quarter. read more
The Russian central bank imposed a 30% commission on foreign currency
purchases by individuals on currency exchanges - a move brokers said
appeared designed to curb demand for dollars - but there was little
immediate impact. read more
The central bank on Thursday said it would not reveal the change in its gold
and forex reserves, which are frozen by Western sanctions, through the next
three months.
The finance ministry said it was halting purchases of foreign currency and
gold this year as part of a suspension of parts of its fiscal rule - a move
also aimed at easing pressure on the rouble. read more
Russia calls its actions in Ukraine a "special operation" that it says is
not designed to occupy territory but to destroy its southern neighbour's
military capabilities and capture what it regards as dangerous nationalists.
Since Russian troops entered Ukraine on Feb. 24 the rouble is down close to
30% against the dollar, and analysts say it will probably remain highly
volatile.
The government has ordered Russian exporters to convert 80% of their foreign
exchange revenues into roubles in another attempt to buttress the local
currency, but people are still queuing up at banks to buy dollars as the
rouble slumps.
Russia's five-year credit default swaps, which investors use to hedge
against risk, fell to 1,250 basis points on Thursday from their closing
level of 1,321 on Wednesday, but rouble implied volatility gauges rose to
fresh record highs.
Goldman Sachs noted that Russian financial conditions had tightened
significantly. https://tmsnrt.rs/3C9UMcI
TRAPPED MONEY
"There's huge uncertainty around ongoing events, and there's going to be a
lot of volatility, volumes will be a lot lower, liquidity will be incredibly
poor," said Chris Turner, global head of markets at ING. "There's a lot of
trapped foreign money in Russia at the moment."
On Thursday, Russia's National Settlement Depository said coupon payouts on
Russia's OFZ government bonds which were due on Wednesday had only been made
to local holders, citing a central bank order barring payments to
foreigners.
Moscow is blocking foreign investors, who hold tens of billions of dollars
worth of Russian stocks and bonds, from exiting those holdings. It has
temporarily barred Russian companies from paying dividends to overseas
shareholders, without saying how long the curbs will last. read more
Trading on the Moscow Exchange's stock section remained largely closed on
Thursday, a fourth day of restrictions ordered by the central bank.
Overnight, Fitch said U.S. and European Union sanctions prohibiting any
transactions with the Bank of Russia would have a "much larger impact on
Russia's credit fundamentals than any previous sanctions."
Moody's said the severity of the sanctions "have gone beyond Moody's initial
expectations and will have material credit implications." read more
S&P lowered Russia's rating to sub-investment grade last week. read more
On Wednesday, index providers FTSE Russell and MSCI said they would remove
Russian equities from all their indexes, after a top MSCI executive earlier
this week called Russia's stock market "uninvestable." read more
The Thomson Reuters Trust Principles.
Google suspends all ad sales in Russia as censorship demands grow
(Reuters) - Alphabet Inc's (GOOGL.O) Google said on Thursday that it had
stopped selling online advertising in Russia, a ban that covers search,
YouTube and outside publishing partners.
The move by the world's top seller of online ads by revenue follows similar
pauses in Russia by Twitter Inc (TWTR.N) and Snap Inc (SNAP.N) after
Russia's invasion of Ukraine.
"In light of the extraordinary circumstances, we're pausing Google ads in
Russia," the company said in a statement. "The situation is evolving
quickly, and we will continue to share updates when appropriate."
Google earlier had banned Russian state-funded media from buying or selling
ads through its technology. It also had invoked its sensitive events policy,
which bars marketing that seeks to take advantage of the war, with an
exception for protest or anti-war ads.
Russia's communications regulator Roskomnadzor on Monday ordered Google to
stop showing ads that contained inaccurate information about casualties
sustained by Russian forces and Ukrainian civilians. read more
On Thursday, the regulator told Google to stop showing YouTube ads with
“false political information” about Ukraine that aimed "to misinform the
Russian audience” about current events, the Wall Street Journal reported.
Moscow in the past has fined or restricted access to services that ignore
its demands.
Google last year paid more than 32 million roubles in fines over content
violations.
The SPARK business database showed last year that Google's turnover in
Russia in 2020 was 85.5 billion roubles ($790 million).
($1 = 106.01 roubles)
($1 = 107.9990 roubles)
The Thomson Reuters Trust Principles.
Russian central bank to hold daily auctions to help banks manage liquidity
(Reuters) - Russia's central bank said on Wednesday that it would hold daily
3 trillion rouble ($28.31 billion) repo and deposit auctions to help lending
institutions manage their liquidity and keep overnight money-market rates
close to its key rate.
The auctions would start on Thursday and take place on weekdays, the bank
added in a statement.
($1 = 105.9750 roubles)
The Thomson Reuters Trust Principles.
Nigeria: FAAC Shortfall - NLC Kicks As Kano Govt Slashes Workers Pay
Kano — Kano State chapter of the Nigeria Labour Congress, NLC, yesterday,
rejected plans by the state government to slash February salaries of
workers, as a result of short fall in Federation Accounts Allocation
Committee, FAAC allocation shared among the states.
The government said it will resort to use of the April 2021 salary template
where some percentage was deducted from state workers' pay while local
Government workers were paid the outlawed N18, 000 minimum wage.
The State Chairman, Kabiru Ado Minjibir, while briefing newsmen on it stand,
yesterday, at the labour house, said it is disassociating itself from the
government plan. Minjibir hinted that government said it could not pay the
N30, 000 new minimum wage to Kano State workers as a result of short fall in
FAAC allocation shared among the states.
He said: "We were invited for a meeting with the government under the office
of the State Head of Civil Service and presided over by the Head of Service,
Binta Ahmad, that the state government could not pay the N30,000 minimum
wage as a result of short of funds received from FAAC Allocation.
Binta revealed that N504 billion was distributed across the states of the
federation for January 2022 as against the N699 billion distributed for
December 2021, and so they resorted to paying workers using template of
April 2021 salary where some percentage was deducted from state workers pay
while local government workers were paid the N18,000 minimum wage."
Minjibir said that by extension, if this payment is made, obviously, there's
going to be a short fall on the remittance to Kano State Pension Funds
Trustees and obviously the payment of monthly pensions will also be
reduced.-Vanguard.
South Africa: Network of Corruption Exposed in Lottery Probe
SIU says it has already identified R300 million in misappropriated grants
A litany of fraud, money laundering and networks of corruption involving a
senior member of the National Lotteries Commission (NLC), his family and two
former board members, and hijacked non-profits and shelf companies were laid
bare by the Special Investigation Unit (SIU) in a presentation to Parliament
on Wednesday.
The SIU was reporting to Parliament's Trade and Industry Portfolio Committee
on its investigation which began in November 2020, after President Cyril
Ramaphosa signed a proclamation empowering it to probe alleged corruption
involving the NLC. The presentation was virtual.
"The SIU investigation has uncovered a web of corruption related to NLC
funding and flow of funds to NLC officials, board members, and their family
members. The SIU is pursuing all individuals involved in the syphoning of
NLC money," the SIU tweeted during the presentation.
The SIU report did not name any of the people, companies or non-profits
involved in the looting in its report. But GroundUp can reveal that among
the people it implicates are NLC chief operating officer, Phillemon Letwaba,
former board chairperson Alfred Nevhutanda, and William Huma, who resigned
from the board when he was confronted with evidence uncovered by the SIU.
The report described a series of projects that received millions of rands
which were then laundered through layers of trusts and companies to hide
their source.
In several cases, SIU investigators found old age homes and a drug
rehabilitation centre that have never been completed in spite of receiving
tens of millions of rands in grants from the NLC.
Instead, the money was syphoned off and used to pay for among other things,
cars, luxury homes and properties, and things not related to the funded
projects.
With just 12 of 50 investigations almost completed, the SIU has already
identified R300-million in Lottery funds that have allegedly been
misappropriated, SIU head Advocate Andy Mothibi told MPs.
The SIU will complete the first phase of its probe by the end of March and
will hand a report on its findings to President Ramaphosa in April, he said.
Dossiers of the evidence gathered by the SIU would also be handed to the
National Prosecuting Authority so that the people involved can be
prosecuted, he added.
GroundUp has reported on many of the projects identified in the SIU report,
as part of its ongoing, years-long investigation into corruption involving
the NLC.
The SIU was in receipt of 23 "new allegations" and these investigations will
begin from 1 March and would be concluded by November, he said. "In total,
the SIU will investigate approximately 50 allegations relating to irregular
allocation of funds by the NLC to unqualified beneficiaries," Mothibi said.
"The SIU will further investigate maladministration in relation to the
investment of funds in the National Lottery Distribution Trust Fund [which
distributes grants] contrary to the provisions of the Lotteries Act," he
said.
Mothibi said the key findings of the investigation so far were:
identifying the modus operandi used to syphon money from the NLC through
various non-profit organisations and non-profit companies;
"collusion" between NLC officials and non-profit companies;
"collusion" between some board members and non-profit companies;
abuse of non-profit companies, including the hijacking of dormant ones;
ineffective auditing of projects;
maladministration in the approval of grants; and
abuse of the NLC's proactive funding process, which the SIU believed should
be reviewed.
In response to questions from MPs about professionals including lawyers,
whose trust accounts were used to funnel Lottery funds, Mothibi said
evidence the SIU had collected would be handed to professional bodies to
take action. Some might also be prosecuted.
In a statement, the NLC said it had "noted" the SIU presentation to
Parliament.
But despite the overwhelming evidence in the SIU report, the NLC said it was
"confident of its internal processes to ensure fair and equitable funding,
and this has been evidenced by the outcomes of external audits conducted in
recent years".
"The Commission has also noted with concern several inconsistencies in the
SIU presentation and the tone of their social media reporting, which
unfortunately serves to frame adverse conclusions in the minds of the public
while investigations are yet to be concluded, and a final report is yet to
be presented to the President in terms of the proclamation.
"The Commission will however not be engaging these publicly but will raise
them in the course of engagement and cooperation with this process as the
SIU has not completed investigations on any of the profiled projects."
DA shadow minister for trade and industry Mat Cuthbert said in a statement
after the briefing: "With only 12 of the 50 cases finalised so far, it is
clear that by the time the investigation is concluded, the funds allegedly
misappropriated and stolen will far exceed this R300-million.
"We now urge both the Hawks and the National Prosecuting Authority to act
swiftly and decisively against these shameless individuals who have stolen
money meant to uplift the most marginalised in our society."-GroundUp.
Nigeria: Expatriate Quota - Govt Not Out to Witch-Hunt Companies, Says
Interior Ministry
The Federal Government has again reaffirmed its commitment to the Ease of
Doing Business in order to ensure the smooth flow of foreign investors and
investments into Nigeria.
The Permanent Secretary in the Ministry of Interior, Dr Shuaib Belgore
stated this when the Vice-President, Human Resource ( VP-HR) Shell Nigeria,
Mr Olukayode Ogunleye and his colleagues paid a working visit to his office
in the Ministry of Interior, Abuja.
Dr Belgore assured that the Division of Enforcement, Investigations and
Inspection in the Ministry of Interior "is largely to ensure compliance to
the updated guidelines on the Administration of expatriate quota and other
business instruments in Nigeria which hopefully shall enable Federal
Government provide a conducive working business environment for all
stakeholders".
According to him, the expatriate quota "is not to witch hunt but rather to
reposition the management of these instruments of business for greater
efficiency and effectiveness; thereby curbing illegality and corruption in
the system".
Director, Press and Public Relations in the ministry, Mrs Blessing
Lere-Adams in a statement said "the permanent secretary reiterated that
among others the mandate of the Ministry include the formulation and
implementation of Policies and Programmes of government that enhances
internal security, public safety, an enabling business environment for
domestic and foreign investors and the maintenance of citizenship integrity,
all of which are key pillars in the priority areas of President Muhammadu
Buhari's Administration".
Speaking further, Dr Shuaib Belgore said the Ministry of Interior has the
responsibility of processing citizenship application and the mandate of
registration of statutory marriages, issuance of business permits to foreign
companies and approvals of expatriate quota allocation.
Earlier, Mr Olukayode Ogunleye, the Vice President Human Resource, Shell
Petroleum Development Company (SPDC) confirmed that shell, Exxon Mobil are
not leaving Nigeria.
"The Federal Government has a large share in it, but rather despite the very
tough and trying environment around the Niger-Delta Region where most of
their oil wells are shutdown due to insecurity, we are still forging ahead
to ensure equity diversification of their business to build smaller,
emerging businesses to assist in growing the Nigerian Economy from both the
deep water business to the new Nigerian Natural Liquidified Gas (NNLG).
"This will enhance the transfer of gas and power to Aba, Ota and Agbara".
Present during the visit were the Director of Citizenship and Business
(Barr.) Mrs Moremi Soyinka-Onijala, Director General Services Mr Sylvanus
Esinwoke, Director Press and Public Relations, Mrs Blessing Lere-Adams. The
Permanent Secretary's Aide, others are Mrs Titilope Babatunde, PSC Liaison
and Onyekachi Igwe, Corporate Relations Adviser both of Shell Liaison Lagos
and Abuja.- Vanguard.
Nigeria Earned $2.29bn Through Beer Sales in 2019 - Report
A study by the Oxford Economics for the Worldwide Brewing Alliance (WBA)
which was released yesterday has revealed that Nigeria earned $2.294 billion
through the sale of beer in 2019.
Also, the Minister of Industry, Trade and Investment, Mr. Adeniyi Adebayo,
yesterday expressed the readiness of the federal government to support beer
producers to keep them in business in the face of daunting challenges.
Nigeria was also ranked 30 out of 70 top global beer markets that were
covered by the report, which was put together by Oxford Economics in January
2022, titled "Beer's Global Economic Footprint." The report obtained
yesterday, revealed that 70 countries controlled 89 per cent of global beer
sales.
The report which was described as the first-ever worldwide report to assess
the beer industry's global economic impact, found that one in every 110 jobs
in the world was linked through direct, indirect, or induced impact channels
to the beer sector.
It stated that the beer sector contributed $555 billion of gross value added
(GVA) to global Gross Domestic Product in 2019, and helped governments
around the world to generate $262 billion in tax revenue in the 70 countries
it studied. This, it stated, accounted for 89 per cent of beer sold
worldwide and supported an estimated 23.1 million jobs.
The Chief Executive Officer of Oxford Economics, Mr. Adrian Cooper, who
presented the report during a webinar, said the beer sector was primed to
contribute to post COVID global economic recovery as its economic
significance is larger in faster-growing economies and is triggering
substantial economic activities in the agriculture, distributive trade, and
hospitality industry.
Oxford Economics asserted that the beer sector was important to economies
all over the world and impacted all aspects of the beer value chain, from
brewers, distributors, retailers, and the hospitality industry, to the
suppliers each relied on.
Oxford Economics stated that, "the study relied "on 2019 data (instead of
2020). We demonstrate this because of the distortions caused by COVID-19.
The effects of the pandemic mean that 2019 is more representative of a
normal year for the beer sector."
It added that, "while making and delivering the beer people love, the
activities of the beer sector sustain considerable amounts of GDP, jobs, and
government revenue in economies around the globe.
"Brewers and beer's downstream value chain make important direct
contributions, deliver substantial indirect impacts by buying goods and
services from their suppliers, and induce further economic activity by
paying wages and supporting wages along the supply chain.
"Based on our detailed analysis across 70 countries, we estimate that, in
2019, the beer sector's total economic impact amounted to $555 billion gross
value added (GVA) contribution to global GDP, supporting 23 million jobs. In
total, the beer sector supported 0.8 per cent of GDP across the 70 countries
or $1 for every $131 of GDP generated in these economies in 2019.
"To put that in context, the beer sector's GVA contribution to global GDP is
comparable with Belgium's economy in 2019 ($533 billion) and the number of
jobs supported is equal to the entire Italian labour force (23 million
people)."
The report stated that it was important to note that the economic
significance of the beer sector was larger for lower-income countries.
It added: "While in high-income countries the beer sector contributed an
average 0.9 per cent to national GDP, in low-income economies the equivalent
figure is 1.6 per cent. Similarly, the beer sector supports a proportionally
larger number of jobs in lower-income than in high-income countries (1.4 per
cent vs. 1.1 per cent of national employment). The beer sector also supports
significant tax payments for global governments.
"Combined, we estimate that brewers and their downstream value chain made
and supported $262 billion in tax payments to governments around the world.
Of the total tax contribution, $109 billion are made up of VAT and excise
duties paid on beer sales."
The President and Chief Executive Officer of the WBA, Mr. Justin Kissinger
said: "While many previous studies exist for individual countries, none have
ever attempted a rigorous, coherent estimate of the global impact with the
same metrics at the same moment, nor have they fully considered elements of
international trade like the importance of barley and hops from certain
countries. What is apparent from the report is the positive role that beer
plays in the economy."
Speaking in the same vein, the Chief Operating Officer of Americas for the
IWSR Drinks Market Analysis, Ms. Brandy Rand, said the beer sector has been
able to grow its market and experience a relatively better H1 2021 than
spirits and wine but still remained behind its H1 2019.
Rand stated that, "no and low alcoholic beer is the most resilient and
fastest-growing segment of beer as moderation trend solidifies."
Meanwhile, addressing representatives of the Beer Sectoral Group of the
nation's manufacturing sector yesterday in his office, led by the Managing
Director of International Breweries, Mr. Hugo Pius Rocha, Adebayo was quoted
in a statement to have said the government was fully aware of the challenges
facing the manufacturing sector and was doing everything within its power to
address them.
In his presentation to the minister, the secretary of the beer sectoral
group, Mr. Tony Eneh had listed the challenges facing producers of beer to
include devaluation, restricted access to foreign exchange, insecurity,
escalating logistics cost, covid-19, ease of doing business, increasing
excise duty, multiplicity of taxes and tax stamp.
He noted that despite the increase in the yearly taxes paid by the beer
producers, their net profit had been on the decline due to the various
challenges listed by them.
Eneh, therefore sought the support of the minister towards achieving excise
deferment for year 2022 and beyond; support with ministerial engagements;
access to foreign exchange; closer engagement between the Minister and the
beer industry; and other support that may be deemed necessary.
Reacting, Adebayo said he was ready to offer support for the sector by
engaging his colleagues on some of the issues raised in their presentations.
On the issue of forex, he said he had assurances from the Central Bank
Governor that attention would be given to manufacturers using local raw
materials in their bid to import machines for their use.-This Day.
Nigeria: Energy Crises - Electricity Output Plunges
By Udeme Akpan, Olasunkanmi Akoni, Sebastine Obasi, Johnbosco Agbakwuru,
Ediri Ejoh & Elizabeth Adegbesan
Long queues for fuel worsens Lagos traffic Motorists lament, defy Sanwo-Olu
Unwholesome practices slow down govt efforts on electricity lElectricity
growth sluggish in 2021
Nigeria's energy sector woes appear worsened as electricity generation,
yesterday, dropped to 4,227 megawatts, MW, from 4,544.2MW, indicating a
decrease of seven per cent due mainly to limited gas supply and other
factors.
Consequently, more businesses and households are thrown into skeletal
operations and darkness.
This comes against the backdrop of worsening supply shortages ofthe premium
motor spirit, as long queues at the various petrol stations across the
country is adversely affecting businesses and livelihood.
Elsewhere in major cities, especially in Lagos and Abuja, the long queues
for petrol have spilled over to worsen traffic situations, as the crisis
defiles earlier directive of the Lagos State governor on disciplined fuel
queues in the state.
Electricity
The decrease in electricity generation, according to data obtained from the
Nigeria Electricity System Operator, affected the nation's capacity to
transmit and distribute adequate electricity to consumers in different parts
of the nation.
Meanwhile, the Federal Government, yesterday, said the erratic power supply
being experienced in Abuja and other parts of the country was due to low
water level in the hydro dams.
Minister of Power, Abubakar Aliyu stated this when he featured at the
ministerial briefing organised by the Presidential Media Team at the State
House, Abuja.
Aliyu, flanked by the Minister of State for Power, Mr. Jeddy Agba, reeled
out the various initiatives under his ministry, including Presidential Power
Initiatives, PPI, being driven by Siemens, to address the problems.
He said the government was doing everything to ensure optimum supply of gas
to ensure quick restoration of power.
Aliyu explained that government was expediting action on the proposed
installation of 10 power transformers with additional ten mobile substations
for massive improvement of electricity supply nationwide.
Petrol scarcity
In a related situation, despite FG's assurances of adequate supply of
petrol, most of the roads in major cities across the country, especially
Lagos, have been taken over by long queues and traffic snarls occasioned by
the lingering fuel scarcity, which is on its third week.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority,
NMDPRA, had said about 253.98 million litres of petrol has been made
available at Lagos depots.
The authority also stated that 46.66 million litres of petrol was trucked
out of the depots last Tuesday to filling stations in Lagos and other parts
of the country. Mr Ayorinde Cardoso, Zonal Operations Controller, NMDPRA,
Lagos, explained that the authority was working towards ending the lingering
fuel scarcity in the country.
Cardoso said: "The total stock in Lagos depots was 253,980,444 litres of
PMS. Total volume of PMS trucked out on Tuesday was 46,660, 659 litres with
1,101 trucks. 700 of the trucks were distributed to Lagos and Ibadan Zone
while 401 trucks were bridged to other parts of the country."
Also Speaking to Vanguard, a major marketer, who preferred to be anonymous,
said products were supplied to the market to cushion the petrol scarcity
currently rocking the country.
According to the source, "cargoes have been paid for by the NNPC and they
are on their way to Nigeria but will start arriving from next week.
"However, there are some cargoes that are already being discharged at the
depots. For Lagos alone, about 50 to 75 trucks were loading to saturate the
market. These products are going to marketers that have retail outlets like
in Egbeda, Agege, Akowonjo so they will not come to the main town to buy
fuel.
"Also, Total and OVH are loading massively from Pinnacle at night. MRS is
loading from their own depot at night and this situation has been on for the
past three nights."
Unwholesome practices, traffic
Vanguard observed that filling stations in Lagos State have resorted to
selling petrol at night. The petrol situation in Lagos lengthened queues at
filling stations, with resultant traffic snarls noticed in some parts of the
state. It was gathered that black market sellers also took advantage of the
fuel scarcity, offering petrol in jerry-cans by roadsides, to willing
buyers.
Major roads such as Oba Akran, Awolowo, Secretariat, Ojota and Bank-Anthony
within the Ikeja axis were taken over by motorists who queued to get petrol.
This caused a lot of traffic on these roads as transporters struggled to get
through them.
In Lagos Island metropolis, motorists also continued to groan, following
transportation fare hike and traffic congestion caused by the fuel
situation. From CMS to Ikeja, which used to cost N500 had shot up to N800,
while Ojodu Berger to Ikeja rose to N300 from the previous fare of N200.
Some petrol stations dispensing fuel around Alimosho, Ikeja, and environs,
hiked the price above official rate of N165 per litre.
A filling station along Egbeda-Ikotun Road (namewithheld) was selling at
N200 per litre, and declined selling on kegs.
Commercial bus drivers and personal car owners thronged the filling station
in attempt to get the product, not minding the high price.
As at 5p.m., only two filling stations, operating intermittently, were seen
dispensing fuel to motorists along Egbeda-Ikotun Road, thereby obstructing
free flow of traffic.
It was also gathered that miscreants took over control of a filling station
at Iju area of the state, collecting N500 from each motorist, before
allowing access to the stationm which was selling at N200 per litre. The
situation led to gridlock along the axis.
Sanwo-Olu ignored
This was actually in apparent defiance to earlier directive by Governor
Babajide Sanwo-Olu, through the Ministry of Transportation, warning
motorists queuing up for fuel at filling stations to be orderly and not
hinder the movement of others and any errant motorists would have their
vehicle towed and prosecuted.
"The government sympathises with motorists who are enduring the pains of the
fuel shortage being experienced across the country. This, however, is no
excuse to block roads and impede traffic flow," Commissioner for
Transportation Dr. Frederic Oladeinde said.
Oladeinde frowned at the disorderly behaviour of some drivers, who queue up
haphazardly and disrupt traffic flow around petrol stations.
He urged petrol marketers to ensure that products are sold in an orderly
manner that would not infringe on the rights of other road users to free
movement.
"We want our roads to be free; we do not want fuel queues to constitute a
burden for other road users in Lagos," he said.
At press time, it could not be ascertained the number of vehicles that have
been towed or penalized so far, despite traffic impediment across the state.
Motorists lament
Meanwhile, a motorist, Tayo Bamidele in Lagos, lamented:"The current
scarcity of PMS is showing how insensitive this present APC-led government
has taken Nigerians for a ride. NNPC kept releasing statement that pms is
available and already released to marketers,yet many petrol stations are
closed and a few that have pms are selling at N200 or N250 with impunity
because DPR, that is responsible for checkmating their operations, looks
elsewhere.
"I'm sure either NNPC are not being truthful about the availability of PMS
or government is trying to force Nigeria into buying PMS at higher prices
because they know the fuel subsidies removal will trigger protest."
Govt efforts on electricity
Recall that the Federal Government had set December 2021 for the completion
and commissioning of the project, which is expected to be the second-largest
hydroelectric power station in the country, behind the 760 megawatts
(1,020,000 hp), Kainji hydroelectric project.
But the minister said the project site was attacked on January 4, 2022, with
two Chinese nationals working at the site kidnapped, after killing the
security guards.
According to him, work has "slowed down at the site, while efforts are on to
rescue the Chinese workers."
He said the Federal Government has secured and is executing up to $4 billion
in investments in the Grid to ensure more grid power is delivered to
citizens.
The minister, while providing details of electricity supply, said the
Nigerian Electricity Supply Industry has delivering grid, captive, and
embedded power to the tune of almost 8,000MW daily, as against the
speculated 4,000MW.
He noted that the nation has an installed capacity of almost 18,000MW not
13,000MW.
Aliyu said, "I'd like you also to take away that we deliver 8,000MW of
electricity daily through a combination of Grid, Embedded and Industrial
Captive supply of Electricity (not 4,000MW as is frequently reported), much
of this capacity added during the life of this administration.
"These are not my figures; this was an industry study conducted by KPMG
recently."
He said much of the improvement to 8,000MW occurred under the Buhari
administration "through positive industrial policies driving captive
industrial power investment and improved grid stability although we continue
and must continue to work to improve the performance of the Grid."
Aliyu explained that these come from 28 Grid Power plants with Installed
Capacity of 13,000MW and Operational Daily Capacities of around 5,000MW,
with the plants located at Egbin, Ughelli, Geregu, Kainji.
"266 Captive Power plants (mainly industrial > 1MW) with Installed
Capacities of 4,000MW and Daily Operational Capacities of around 2,500MW.
"These include the Dangote Cement Capacities in Obajana Ibese (400MW), and
NLNG's Bonny Island Power Plant (240MW) amongst others.
"These are never captured in the statistics but are part of the NESI and
form our industrial load for jobs. In the future many of these plants will
integrate to the grid, in fact some of them supply power to communities they
occupy.
"16 Embedded Power Plants with 549MW of Installed Capacities and 190MW of
Daily Operational Capacity.
"From the KPMG rebasing analysis above it is clear that the NESI needs to
make better utilization of particularly the Grid based Power Plants. The
only way this can happen is through the improvement of the Grid.
"The Federal Government has many key grid initiatives with more than N125.2
billion budgeted between 2015 to 2021 for TCN and Development."
The minister, however assured that the government is working on more firm
Gas supply contracts for the Power sector backed by improved liquidity,
which will have stiff financial penalties for underperformance.
Speaking on the Siemens Presidential Power Initiative, PPI, the minister
noted that "government will be bring in an additional $2.0 billion or more
to the Transmission Grid."
He disclosed that contracts have been awarded for the construction of 10
transformers and 10 mobile power substations through Siemens which will be
delivered soon.
Electricity growth sluggish in 2021
The nation's energy sector generated 36,397 gigawatt hours (gwh) electricity
last year. This represents a 1.89 per cent year-on-year (YoY) rise when
compared with 35,720.27 gwh in 2020.
The sector also transmitted 35,654 gwh of electricity in 2021 representing a
1.78 per cent YoY rise when compared with 35,029 gwh transmitted in 2020.
In its "2020 and 2021 Power Sector Data: Energy Generated and Sent Out",
report released yesterday, the National Bureau of Statistics (NBS) noted
that in 2021, electricity generated fell by 8.23 percent and 2.62 percent in
the second quarter of 2021 (Q2'21) and Q3'21 respectively.
Similarly, the electricity transmitted fell by 9.06 per cent and 2.56 per
cent in Q2'21 and Q3'21 respectively.-Vanguard.
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