Major International Business Headlines Brief::: 02 September 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  02 September 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: With Rising Subsidy Costs, NNPC Finally Admits Owing Foreign
Petrol Suppliers Huge Debts

ü  Nigeria: Govt Snubs Local Manufacturers As Chinese Companies Get $500m
Meter Deal

ü  Zambia's Crippling Drought Creates Chance for Solar Power to Shine

ü  Algeria Joins the Brics New Development Bank

ü  CMOC - 670% Surge in Net Profit for H1 2024 Driven by Record Growth and
Ambitious Strategic Projects

ü  Somalia: Egyptian PM, Somali Counterpart Discuss Investment, Trade,
Regional Security

ü  Nigeria: NNPC Groans Under Heavy Debts As Suppliers Halt Fuel Supply Amid
Scarcity

ü  Nigeria: Our Ability to Sustain Fuel Supply Under Threat - NNPC

ü  Nigeria: Govt to Invest $800m in Power Sector - Minister

ü  Nigeria's Oil Company Lack Funds to Fix Leaky Pipelines

ü  Liberia: How Much Debt Did Weah Accumulate During His Tenure?

ü  Senegal Seeks to Reign in Polluting Illegal Gold Mining Along Mali Border

ü  South Africa: Zikalala Calls for the Participation of Women in the Built
Industry

ü  Top Brazil court to vote on ban of Musk's X

ü  Fears over energy tax rises as business confidence falls

ü  UK and EU airports are sticking with 100ml liquid rule - but why?

 

 


 <mailto:info at bulls.co.zw> 

 


 

Nigeria: With Rising Subsidy Costs, NNPC Finally Admits Owing Foreign Petrol
Suppliers Huge Debts

With petrol subsidy costs skyrocketing, after months of denial, the Nigerian
National Petroleum Company Limited (NNPC), yesterday finally admitted that
it was owing huge debts to its international petrol suppliers.

 

The national oil company stated that due to the situation, it was facing
financial strain, thereby impacting supply sustainability and posing
substantial threats to national fuel supply.

 

THISDAY learnt that the situation has been further worsened by the falling
value of the naira against the US dollar as well as the rising international
price of crude oil and other costs, which have made it almost impossible to
meet the soaring debt obligations.

 

 

Since the news was first reported by international news media in the first
quarter of this year, the NNPC has consistently said the long fuel queues in
the country was not caused by the debts.

 

In different instances since the news became public, the NNPC has blamed
weather conditions, including thunder and lightning, flooding and bad roads
for the long fuel lines across the country.

 

As recent as two weeks ago, the oil company also debunked the recurring
reports in the media that it owes international oil traders up to $6.8
billion.

 

But it appeared to have soft-pedalled during the month when it explained
that since the oil trading business is carried out on credit, it is normal
for the NNPC to owe at one time or the other.

 

However, it stated that its subsidiaries were paying up their obligation on
a first-in-first-out (FIFO) basis.

 

 

"That NNPC Ltd. does not owe the sum of $6.8 billion to any international
trader(s). In the oil trading business, transactions are carried out on
credit, so it is normal to owe at one point or the other.

 

"But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade
credit lines from several traders. The company is paying its obligations of
related invoices on a first-in-first-out (FIFO) basis," it added.

 

Fuel queues which have become a common occurrence in Abuja and neighbouring
states spread to Lagos and several other sub-nationals nationwide over three
weeks ago. The situation is yet to abate.

 

Prices have also skyrocketed from the regulated prices by the Nigerian
Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), selling
for as high as N1,200 in parts of the nation.

 

But admitting to the debts yesterday, in a statement by its Chief Corporate
Communications Officer, Olufemi Soneye, the NNPC stated that the debts were
causing considerable financial pressure on it.

 

 

"NNPC Ltd has acknowledged recent reports in national newspapers regarding
the company's significant debt to petrol suppliers. This financial strain
has placed considerable pressure on the company and poses a threat to the
sustainability of fuel supply.

 

"In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated
to its role as the supplier of last resort, ensuring national energy
security. We are actively collaborating with relevant government agencies
and other stakeholders to maintain a consistent supply of petroleum products
nationwide," Soneye said in a brief statement.

 

Meanwhile, former Vice President of Nigeria, Atiku Abubakar, yesterday
demanded the immediate listing of the Nigerian National Petroleum Company
Limited (NNPC) on the stock exchange in line with the Petroleum Industry Act
(PIA).

 

Atiku said this in reaction to the decision of the NNPC to hand over the
Warri and Kaduna refineries to private operators who are expected to manage
and operate them.

 

In a statement by his Media Adviser, Paul Ibe, Atiku said: "The NNPC is
supposed to have been listed on the stock exchange in line with the PIA.
This would make the company more profitable and enhance transparency and
corporate governance.

 

"Currently, the NNPC claims to be private, but this is only a ruse to fool
the feeble-minded because it remains the Automated Teller Machine (ATM) of
the federal government. Anything short of listing the NNPC on the stock
exchange is nothing but a cosmetic development."

 

Atiku further stated that the NNPC continues to provide a cover of political
protection to the Tinubu government's policy inconsistency on the payment of
subsidy, raising questions about the independence that the PIA requires of
the NNPC as a private business concern.

 

The Peoples Democratic Party (PDP) presidential candidate in the 2023, said
previous arrangements and concessions had not worked because of a lack of
transparency in the contract award process as well as the failure of the
government to attract investors.

 

The former vice president said that for such a deal to succeed at all, the
Bureau of Public Enterprise (BPE) and a credible technical partner like
Standard and Poor's (S&P) must be part of the process.

 

Atiku added: "Former President Olusegun Obasanjo revealed recently that even
Shell, one of the world's wealthiest oil companies, rejected the offer to
operate Nigeria's refineries. This is because the NNPC has, for years, been
a cesspool of endemic corruption.

 

"This is why over $20 billion that has been spent on the refineries in the
last 20 years has led to nowhere. It is also curious that a government that
is still paying petrol subsidy is trying to make its refineries profitable.
Which businessman will invest in a refinery that has been programmed to
operate at a loss?"

 

Atiku questioned the feasibility of the NNPC's latest plan even as he
pointed out that such arrangements in the past had not been profitable.

 

He added: "The manage and operate approach has not always worked. The
Manitoba Hydro International, which was handed the Transmission Company
(TCN) of Nigeria led to nowhere. Similarly, Global Steel Limited, which was
handed the Ajaokuta Steel Company, was not able to make the facility
profitable.

 

"The contract was questionably revoked by the Umaru Musa Yar'Adua
administration, and Nigeria ended up paying Global Steel a compensation of
nearly $500 million while Ajaokuta remains comatose 17 years later."

 

The Waziri Adamawa advised the NNPC not to make the contract process opaque
like it did with OVH last year, which was not only dubious but has still
failed to boost the NNPC's petrol sufficiency as evidenced by the months
long fuel scarcity.

 

"In 2022, Nueoil, an unknown and newly registered company, acquired OVH and
Oando filling stations. Barely four months later, NNPC Retail bought Nueoil
and took control of all its assets, including the Oando filling stations.

 

"Barely eight months later, OVH turned around to take over NNPC Retail. This
convoluted transaction was done in order to hide the corruption involved. If
this is the approach that the NNPC wants to use in handing over its
refineries to private hands, then Nigerians should not expect any positive
development whatsoever," Atiku stressed.

 

Also, a senior Femi Falana, yesterday expressed concerns over the
'monumental fraud' bedevilling fuel importation in Nigeria.

 

Falana, who made the observation when he was featured as a guest on Sunday's
Channels Television's 'Politics Today', stated that it was irreconcilable
that cars were getting lesser on Nigerian roads while the subsidy payment
was increasing.

 

He said: "How many people have bought a car in the last one and a half
years, even second-hand cars (in Nigeria)? The point I am making is that the
number of vehicles on the road has been reduced. Yet, we were told that
during the days of boom, the NNPC was subsidising 68 million litres of fuel
per day.

 

"Now that there are problems, scarcity, and poverty everywhere, no new
vehicles on the road, we are still paying for 68 million litres of fuel.
Whereas before this regime came on board, the Comptroller General of Customs
challenged the NNPC during a Senate public hearing to pay for the amount of
fuel that is said to be smuggled out of the country."

 

He further alleged that the NNPC was not telling Nigerians everything it
claimed to know about the smuggling of crude in the country, maintaining
that smugglers need 2,000 petrol tankers to steal the volume of fuel the
company claims is being smuggled.

 

This Day.

 

 

 

 

Nigeria: Govt Snubs Local Manufacturers As Chinese Companies Get $500m Meter
Deal

The federal government has signed an agreement with three Chinese companies
to provide 1.4m meters to reduce the metering gap in the country.

 

A statement by the Transmission Company of Nigeria (TCN) stated that the
project is part of the Distribution Sector Recovery Programme (DISREP),
funded by the World Bank's $500 million facility through the Investment
Project Finance (IPF) arrangement.

 

The Federal Government, through the Bureau of Public Enterprises (BPE) and
Distribution Companies, signed a contract agreement with consortium, Ningbo
Sanxing Medical & Electric Co. Ltd and Ningbo Sanxing Smart Electric Co.
Ltd, and Messrs XJ Group Corporation for the supply and installation of
1,437,500 smart meters across the country.

 

The TCN's MD/CEO, Engr. Sule Ahmed Abdulaziz, represented by the Executive
Director, Transmission Service Provider, Engr. Ajiboye Oluwagbenga, praised
the project as a significant step in bridging the 7.1-million-meter gap in
Nigeria.

 

Recall that the TCN and local manufacturers were last year at loggerheads
over another $155m loan by the World Bank to finance a 1.2m meters.

 

The manufacturers under the auspices of the Meter Manufacturers and
Assemblers Association of Nigeria (MMAAN) had stated that the call for
tender by the TCN requesting contractors to provide at least $340,000 as
security to qualify for the bid was not possible for them.

 

Daily Trust.

 

 

 

 

Zambia's Crippling Drought Creates Chance for Solar Power to Shine

With a prolonged drought affecting the supply of hydroelectricity all over
southern Africa, a growing number of people are turning to solar to fill the
energy gap.

 

"We can spend up to 44 hours with power," Kelly Huckaby tells RFI from the
outskirts of Lusaka.

 

Originally from the United States, he has been based in Zambia since 2010
and runs a Christian ministry that hosts camps and conferences for up to 200
children at a time.

 

A reliable supply of electricity is essential. But the drought that has
gripped southern Africa since early this year has led to rolling cuts in a
country that relies heavily on hydropower.

 

For Huckaby, solar is proving the best alternative.

 

"We have just ordered solar fans, which can provide relief from the heat and
also a little light and allow us to charge phones," he says.

 

Not only has he decided to invest in the devices for his own centre, he
wants to offer solar lamps and fans to all his employees for Christmas.

 

 

Dams run dry

 

Zambia is going through one of its worst droughts in decades.

 

The country declared a national disaster in February, and has since been
scaling back energy supply and trying to import electricity from
neighbouring countries.

 

Hydroelectric dams normally provide more than 80 percent of the country's
power, but lie nearly empty after months of dry weather.

 

The gigantic Kariba Dam on the Zambezi river, Zambia's largest source of
hydroelectricity, has only 10 percent of water available for power
generation, according to the Energy Ministry. The power plant it feeds will
likely shut down within weeks.

 

"This year there's been very little rain in the central and southern parts
of the country," John Keane, CEO of the UK-based charity SolarAid, told RFI
from Lusaka.

 

 

"But in the north of the country, there's been more rain than usual, with
flooding. There's two stark realities: Lake Tanganyika in the north is
reportedly at its highest levels since 1964, and in the south, where the
Kariba Dam is, that's extremely low levels."

 

Turning to alternatives

 

For months now Zambians have been forced to get used to lengthy blackouts,
and more are on the way.

 

Last week the government warned that 14-hour power cuts introduced in July
would be extended to 17 hours a day from September, with no end date in
sight.

 

"Energy in particular is an obstacle to everyday life," said one Lusaka
resident who preferred not to be named.

 

Like others, she has sought ways to adjust to what has become a "new
normal".

 

 

"In my household we are using alternative sources of energy, i.e. the solar
lamps and gas for cooking," she told RFI. "My family in particular, we're
relying a lot on solar energy."

 

She's not alone. According to SunnyMoney Zambia, a social enterprise owned
by SolarAid that sells solar lighting in rural communities, sales have
increased by more than 540 percent since the beginning of 2024.

 

"We ordered new containers of lights produced in China" to try to match
demand, said SunnyMoney country manager Karla Kanyanga, "as well as a set of
solar fans, as temperatures keep on rising".

 

Solar's potential

 

Solar advocates hope the trend makes the start of a long-term shift.

 

"We've been campaigning in schools to educate people about solar power for
years," Kanyanga told RFI. "The goal was to promote the use of solar lights
in homes, schools and clinics, especially to replace charcoal, gas and
candles."

 

Now the drought has highlighted the potential of decentralised energy
sources like solar, especially in remote areas.

 

"In Zambia and much of sub-Saharan Africa, especially the rural areas, only
a very small percentage of the population have access to electricity - we're
talking between two, three, four percent," said SolarAid's Keane.

 

"People are then living in houses without light, without any of the modern
electrical appliances that we have grown up with. And that actually makes
life pretty difficult."

 

As the cost of solar panels drops and battery technology improves,
organisations like his say solar is an increasingly affordable and reliable
way to switch those households on.

 

Anglophone Cameroon's Solar Mamas light the way for rural farmers

 

Scaling up

 

Zambia currently has two solar power stations in operation, built by French
and Italian investors, and has signed an agreement with the United Arab
Emirates to develop further large-scale projects.

 

The country has long depended on hydroelectricity, mostly produced by a
single state-owned company.

 

Changing weather patterns and extreme events like this year's drought have
exposed how vulnerable it is to shortfall.

 

Lack of a steady power supply hinders both the economy and food production.

 

The International Monetary Fund in June revised its projected growth for
Zambia's economy this year downward from 4.7 percent to 2.3 percent because
of the drought.

 

Meanwhile the UN's World Food Programme has warned that the region-wide
drought has worsened food insecurity across the whole of southern Africa.

 

The next rainy season would normally begin around November, but climate
change makes it more difficult to predict the seasons.

 

Africa's nuclear dreams a fusion of high hopes and high hurdles

 

website.

 

 

 

Algeria Joins the Brics New Development Bank

Algeria has been approved for membership in the BRICS New Development Bank
(NDB), the country's finance ministry has announced.

 

The decision was taken on Saturday and announced by NDB chief Dilma Roussef
at a meeting in Cape Town, South Africa.

 

By joining "this important development institution, the financial arm of the
BRICS group, Algeria is taking a major step in its process of integration
into the global financial system," the Algerian finance ministry said in a
statement.

 

The bank of the BRICS group of nations, whose name derives from the initials
of founding members Brazil, Russia, India, China and South Africa, is aimed
at offering an alternative to international financial institutions like the
World Bank and IMF.

 

 

Algeria's membership was secured thanks to "the strength of the country's
macroeconomic indicators" which have recorded "remarkable performances in
recent years" and allowed the North African country to be classified as an
"upper-tier emerging economy", the finance ministry said.

 

To display this content from X (Twitter), you must enable advertisement
tracking and audience measurement.

 

Accept Manage my choices Membership in the BRICS bank will offer Algeria,
Africa's leading exporter of natural gas, "new prospects to support and
strengthen its economic growth in the medium and long term", it added.

 

Created in 2015, the NDB's main mission is to mobilise resources for
projects in emerging markets and developing countries.

 

It has welcomed several country as new members, including Egypt, the United
Arab Emirates, Iran and Saudi Arabia.

 

(With newswires)

 

RFI website.

 

 

 

 

CMOC - 670% Surge in Net Profit for H1 2024 Driven by Record Growth and
Ambitious Strategic Projects

CMOC, a global leader in the exploration, mining, and marketing of rare
metals, today announced exceptional half-yearly results, with a net profit
attributable to the parent company of $762 million USD, marking an
astounding increase of 670.43% compared to the previous year. This record
performance is driven by sustained production growth, rigorous cost
management, and significant advancements in its strategic projects in the
Democratic Republic of the Congo (DRC).

 

Unprecedented Financial Performance

 

CMOC’s revenue reached $14.47 billion USD, an increase of 18.56% compared to
the same period last year. This growth was primarily fueled by rising metal
prices in global markets, particularly copper and cobalt, coupled with the
optimization of the company’s operations. EBITDA also experienced
significant growth, increasing by 197.83% to $2.25 billion USD.

 

Record Production: DRC assets drive results.

 

CMOC significantly outperformed its production targets in the first half of
2024:

 

Copper: 313.8 kt, up 100.74% YoY.

Cobalt: 54,000 tonnes, up 178.22% YoY.

Niobium: 5,082 tonnes, up 8.23% YoY.

Phosphate fertilizer: 583.3 kt, up 6.47% YoY.

The achievements in copper and cobalt production are the result of optimized
production capacities at the TFM and KFM facilities in the DRC, which have
been expanded to support a stable and increased output of these essential
metals.

 

Strategic Projects: a sustainable growth engine

 

CMOC’s investments in strategic projects have played a crucial role in this
growth. The TFM East facility has reached full production capacity, with an
annual capacity of 450,000 tonnes of copper and 37,000 tonnes of cobalt. KFM
has maintained stable production with an annual capacity exceeding 150,000
tonnes of copper and 50,000 tonnes of cobalt. Additionally, the signing of
the Nzilo II Hydropower Project agreement ensures a stable and sustainable
energy supply to support ongoing production capacity expansion.

 

CMOC has announced that its results for the first half of 2024 are the
outcome of a collective effort and an ambitious corporate strategy. By
generating value for stakeholders, creating jobs, and contributing to the
economic development of local communities, the company reaffirms its
long-term commitment to making a positive and lasting impact. CMOC is
dedicated to continuing to intensify its efforts to meet the expectations of
its customers, partners, and civil society.

 

Alongside its financial growth, CMOC remains firmly committed to sustainable
development. The company’s TFM site was the first in Africa to receive "The
Copper Mark" certification, demonstrating CMOC’s dedication to responsible
mining practices. CMOC continues to enhance its sustainability initiatives,
maintaining an AA rating in MSCI’s ESG assessments, positioning itself among
the top 19% performers in the global non-ferrous metals sector.

 

About CMOC

 

CMOC Group Limited was founded in 1969 and is a privately managed company
listed on the Hong Kong in 2007 and the Shanghai stock exchanges in 2012.
CMOC is an international company specializing in the exploration, mining,
processing, refining, marketing, and trading of rare metals. The company's
main assets and operations are located in Asia, Africa, South America, and
Europe.

 

The company is one of the world's largest producers of tungsten, molybdenum,
and niobium, the largest cobalt producer, and a global leading copper
producer. It is also the second-largest producer of phosphate fertilizers in
Brazil. In terms of business activities, the company ranks among the top
three base metals traders in the world. In line with its dedication to
positive environmental and social impact, the company invests heavily in ESG
(Environmental, Social, Governance) initiatives, resulting in the creation
of over 32,000 jobs.

 

 

 

 

Somalia: Egyptian PM, Somali Counterpart Discuss Investment, Trade, Regional
Security

Cairo — Egyptian Prime Minister Mostafa Madbouly met with Somali Prime
Minister Hamza Abdi Barre in Cairo to discuss areas of mutual interest and
strengthen bilateral relations.

 

The Saturday meeting, which included Somali Ambassador to Cairo Ali Abdi
Aware and Ibrahim El-Khouly, Deputy Assistant Foreign Minister for the Horn
of Africa, underscored the deep historical and strategic ties between the
two countries.

 

Madbouly expressed his pleasure with Barre's visit, noting that it was a
follow-up to the agreements reached during a meeting between Egyptian
President Abdel Fattah Al-Sisi and Somali President Hassan Sheikh Mohamud in
Cairo on August 14.

 

 

"Egypt is fully committed to supporting our brotherly Somalia," said
Madbouly. "Egypt is determined to support the unity of Somalia."

 

Madbouly highlighted Egypt's commitment to providing all necessary support
to Somalia across all areas, including economic, trade, and investment
relations.

 

"The Egyptian government is actively working to support and strengthen
economic, trade, and investment relations between Cairo and Mogadishu," he
said.

 

"We are keen to enhance cooperation and facilitate the necessary financing
for business and investment activities between the two countries while
encouraging new Egyptian investments in Somalia."

 

Madbouly expressed hope that Prime Minister Barre would sponsor a business
forum in Somalia soon, bringing together businesspeople from both countries
in various sectors.

 

 

"We are ready to export any goods or commodities that Somalia needs," he
said. "We will make every effort to facilitate the entry of these goods and
commodities to meet the needs of the Somali people."

 

He also praised the steps taken to enhance cooperation between the two
countries, citing the launch of a direct flight route between Cairo and
Mogadishu and the opening of the Egyptian embassy in Mogadishu in August.

 

Egypt and Somalia have recently reaffirmed their commitment to strengthening
bilateral ties and bolstering regional security with the signing of a
defence pact and military cooperation protocol.

 

Prime Minister Barre highlighted Egypt's role as Somalia's "older brother"
with whom it enjoys long-standing strong relations.

 

He expressed gratitude for Egypt's support for Somalia in its current
delicate situation, where some powers are attempting to divide the country.

 

 

"The Somali political leadership and the Somali people thank Egypt for their
support and solidarity with us," said Barre.

 

"The cooperation between Egypt and Somalia is multifaceted," he said. "This
is not new for Egypt because Mogadishu has historical cooperation with
Cairo. Egypt has always been at the forefront of countries supporting us."

 

Barre noted that the cooperation encompasses political, trade, and
investment collaboration, as well as cooperation in the fields of culture
and education, with Egypt historically providing many educational
scholarships to Somali students.

 

"We are proud of this honourable relationship and we seek to enhance it at
all levels," he added.

 

Barre reviewed the current situation in Somalia, pointing to the country's
real progress in recent years across security, economic, and social spheres.

 

"On the economic front, Somalia has witnessed remarkable growth in GDP," he
said. "The country's public revenues have also grown significantly. The
security situation has improved greatly, and thanks to Egyptian support,
Somalia will be able to move to a new stage of greater development and
security."

 

During the meeting, Prime Minister Barre presented a number of requests for
support in strengthening the bilateral relationship. He expressed hope for
enhanced cooperation between Egyptian and Somali businesspeople in
agriculture, noting that Somalia is rich in livestock and fisheries, sectors
that could benefit the Egyptian market.

 

"We will provide all the necessary facilities for any Egyptian investment
that wishes to work in Somalia," said Barre.

 

The Somali Ambassador to Cairo stressed the historical nature of the ties
and that Egypt's support is not new but dates back to ancient times.

 

"These relations are historical, and Egyptian support is not new," said the
ambassador. "It goes back to ancient times, since the Pharaonic era when
commercial sea voyages between Egypt and the land of Punt were recorded
during the reign of Queen Hatshepsut."

 

Shabelle.

 

 

 

 

Nigeria: NNPC Groans Under Heavy Debts As Suppliers Halt Fuel Supply Amid
Scarcity

The huge debt choking the NNPC is amid the fuel scarcity situation across
the country.

 

As Nigerians lament the ripple effect of fuel scarcity across the country,
the nation's oil company, the NNPC, continues to groan under the weight of
huge debts owed both domestic and foreign suppliers of petroleum products.

 

Sources familiar with details of the matter told PREMIUM TIMES on Saturday
that there appears to be no solution to the fuel crisis in the short term,
as suppliers are being owed $6 billion by the Nigerian National Petroleum
Company Limited (NNPC Ltd).

 

 

In a development that could worsen the fuel crisis in the coming days,
sources said vessel and truck owners have slowed down on supply and import
amid mounting debts.

 

"Others who have (petroleum) products in their depots are slowing down
supply to tankers," one of the major suppliers told PREMIUM TIMES.

 

As a result, the state-owned oil firm has been rationing stock and
prevailing on major suppliers not to cut off supply.

 

An insider told PREMIUM TIMES that the debt situation is so critical and
constitutes a major threat to the NNPC's fiscal survival and indeed
Nigeria's energy sufficiency plans.

 

Although NNPC typically operates as sole importer of petroleum products, it
partners with domestic and foreign suppliers to ensure adequate supply.

 

The oil company suppliers include international traders like Gunvor, Vitol,
Mercuria, as well as domestic trading partners.

 

 

Reuters had in April reported that the NNPC Ltd owed around $3 billion to
fuel traders for imported petrol.

 

Last month, the NNPC Ltd in reaction to a report that the company is
indebted to international oil traders to $6.8 billion and had not remitted
revenues to the Federation Account since January, among other allegations,
said it does not owe the sum of $6.8 billion to international traders.

 

Olufemi Soneye, the chief corporate communications officer of the company,
said in the oil trading business, transactions are carried out on credit, so
it is normal to owe at one point or another.

 

"Consequently, the following clarifications have become necessary: That NNPC
Ltd does not owe the sum of $6.8 billion to any international trader(s)."

 

"But NNPC Ltd, through its subsidiary, NNPC Trading, has many open trade
credit lines from several traders. The company is paying its obligations of
related invoices on a first-in-first-out (FIFO) basis.

 

 

"It is not correct to say that NNPC Ltd has not remitted any money to the
Federation Account since January. NNPC Ltd and all its subsidiaries remit
their taxes to the Federal Inland Revenue Service (FIRS) regularly," Mr
Soneye said at the time.

 

No Respite for NNPCL

 

On Saturday, sources told PREMIUM TIMES that at least five vessels have
failed to deliver fuel in the last five days, amid concerns over unpaid
debts.

 

A government source told this newspaper on Saturday that $300 million was
recently released to the NNPC Ltd by the Ministry of Finance Incorporated to
defray concerns, but the intervention wasn't significant enough to address
the financial strain.

 

As part of measures to cushion the impact of its numerous economic reforms,
the government through the state oil firm sells petrol at prices below the
market price.

 

Since private importers cannot recoup their costs, the NNPC---as sole
importer--supplies the nation with about 40 million litres per day, with
attendant increase in subsidy "shortfalls".

 

As the local currency weakens against the dollar, NNPC records massive
losses on the fuel being sold at below market prices, sources said.

 

Consequently, as the oil firm struggles to meet demand, debts owed to
suppliers balloons, with attendant disruption in supply and nationwide
scarcity.

 

Scarcity to worsen in days

 

In recent months, fuel scarcity hit major cities across Nigeria, with
attendant effects on businesses and households.

 

This also prompted commercial bus drivers to increase their fares in major
towns and cities, incuding the nation's capital. As a result, black
marketers made brisk business selling to willing buyers at higher prices
ranging from N1,000 to N1,200.

 

In the wake of the worsening fuel crisis, Mr Soneye told PREMIUM TIMES at
the time that the challenge in the supply of petrol currently being
experienced in some areas across the country is a result of logistics issues
and they had been resolved.

 

In Abuja, this newspaper found that the long queues in fuel stations reduced
significantly in recent days, while prices increased. But the fuel crisis
has remained a burden in Lagos and other parts of the country.

 

Consequently, there has been an attendant increase in transport fares and
costs of good and services.

 

NNPC admits debt headache

 

On Sunday, Mr Soneye could not confirm the exact amount the NNPC owes when
PREMIUM TIMES asked for details.

 

However, he said, in oil trading, transactions on credit are normal
practices.

 

"In the oil trading business, transactions are often carried out on credit,
so it is normal to have outstanding balances at certain times. Additionally,
through our subsidiary, NNPC Trading, we maintain open trade credit lines
with several traders. I will need some time to provide you with the exact
amount," Mr Soneye wrote in a text response to our enquiry.

 

In a separate statement on Sunday evening, Mr Soneye said that the NNPC Ltd
faces financial strain due to Premium Motor Spirit (PMS) supply costs,
impacting supply sustainability.

 

"NNPC Ltd has acknowledged recent reports in national newspapers regarding
the company's significant debt to petrol suppliers. This financial strain
has placed considerable pressure on the company and poses a threat to the
sustainability of fuel supply," Mr Soneye said.

 

He explained that in line with the Petroleum Industry Act (PIA), NNPC Ltd
remains dedicated to its role as the supplier of last resort, ensuring
national energy security.

 

"We are actively collaborating with relevant government agencies and other
stakeholders to maintain a consistent supply of petroleum products
nationwide," he said.

 

Premium Times.

 

 

 

 

Nigeria: Our Ability to Sustain Fuel Supply Under Threat - NNPC

The NNPC Ltd acknowledged recent reports in national newspapers regarding
the company's significant debt to petrol suppliers.

 

The Nigerian National Petroleum Company Limited (NNPC Ltd) on Sunday said
its ability to sustain regular supply of petrol across Nigeria is under
threat.

 

The oil company said it is under financial duress due to Premium Motor
Spirit (PMS) supply costs, impacting supply sustainability.

 

Olufemi Soneye, the chief corporate communications officer of NNPC Ltd,
disclosed this in a statement on Sunday.

 

The NNPC Ltd acknowledged recent reports in national newspapers regarding
the company's significant debt to petrol suppliers.

 

 

"This financial strain has placed considerable pressure on the Company and
poses a threat to the sustainability of fuel supply," Mr Soneye said.

 

He explained that, in accordance with the Petroleum Industry Act (PIA), NNPC
Ltd. remains dedicated to its role as the supplier of last resort, ensuring
national energy security.

 

"We are actively collaborating with relevant government agencies and other
stakeholders to maintain a consistent supply of petroleum products
nationwide," he said.

 

Fuel scarcity

 

In recent months, petrol scarcity hit major cities across Nigeria, with
attendant effects on businesses and households.

 

This also prompted commercial bus drivers to increase their fares in major
towns and cities, including the nation's capital. As a result, black
marketers made brisk business selling to willing buyers at higher prices
ranging from N1,000 to N1,200.

 

In the wake of the worsening fuel crisis, Mr Soneye told PREMIUM TIMES at
the time that the challenge in the supply of petrol currently being
experienced in some areas across the country is a result of logistics issues
and they had been resolved.

 

In Abuja, this newspaper found that the long queues in fuel stations reduced
significantly in recent days, while prices increased. But the fuel crisis
has remained a burden in Lagos and other parts of the country.

 

Consequently, there has been an attendant increase in transport fares and
costs of goods and services.

 

Premium Times.

 

 

 

 

Nigeria: Govt to Invest $800m in Power Sector - Minister

The Federal Government says it plans to invest 800 million dollars in the
construction of sub-stations and distribution networks as part of the
Presidential Power Initiative (PPI).

 

This is contained in a statement issued by Mr Bolaji Tunji, the Special
Adviser, Media and Strategic Communication to the Minister of Power in Abuja
on Sunday.

 

Tunji said the Minister of Power, Mr Adebayo Adelabu, said this during a
tour of the TBEA Southern Power Transmission and Distribution Industry in
Beijing, China.

 

He said that the minister was in Beijing for the China-Africa Cooperation
Summit.

 

 

Adelabu said that the investment would be divided into two lots: 400 million
dollars for Lot 2, covering Benin, Port Harcourt, and Enugu Distribution
Companies (DISCOs) franchise areas, and 400 million dollars for Lot 3,
covering Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.

 

The minister expressed concern over the rejection of power by Electricity
Distribution Companies (DISCOs), which recently led to a reduction in
generation capacity from a peak of 5,170 megawatts by 1,400 megawatts due to
their inability to manage the supply.

 

He said that despite the setback, the government aimed to increase power
generation to 6,000 megawatts by the end of the year.

 

Adelabu reaffirmed the government's commitment to collaborating with
world-class organisations like TBEA to realise President Bola Tinubu's
vision for the power sector.

 

 

"Especially in the areas of transmission and distribution of the entire
power sector value chain as well as Nigeria's renewable energy segment."

 

Adelabu said that Nigeria had in 1984 generated 2,000 megawatts, and it took
over 35 years to add another 2,000 megawatts.

 

He said that under the current administration, power generation increased
from 4,000 megawatts to 5,170 megawatts within a year.

 

The minister speaking on the problems in the power sector which had hindered
industrial growth, said this was due partly to the fragility of the
transmission and distribution infrastructure which had become old and
dilapidated.

 

"This has led to a historical epileptic supply of Power to households,
industry and businesses.

 

"More than 59 per cent of industries in Nigeria are off the grid. They did
not see the national grid as reliable and dependable. So a lot of them now
operate their own captive, self-generated power," he said.

 

Adelabu said that the present administration was determined to transform the
power sector, adding that a lot of activities had started that were
gradually bringing back confidence in the sector.

 

The statement also quoted the President of TBEA, Huang Hanjie, as assuring
the audience of the organisation's continued support for Nigeria's
government vision for the power sector.

 

He said TBEA operates across 100 countries in the world and would be willing
to share its experience in the provision of energy.

 

"The company is not new in Nigeria, it is presently working with the
Omotosho power plant, Ondo State, owned by the Niger Delta Power Holding
Company (NDPHC)."

 

He said that TBEA would be willing to work with the Nigerian government to
achieve its vision and contribute to the ongoing power sector revolution in
the country. (NAN)

 

Daily Trust.

 

 

 

 

Nigeria's Oil Company Lack Funds to Fix Leaky Pipelines

Abuja, Nigeria — Nigeria's decades-old oil pipelines are vital for
transporting crude, but most are now corroded and vulnerable to leaks and
vandalism. The Nigerian National Petroleum Corporation says it lacks the
funds to fix these pipelines, sparking concerns about Nigeria's oil
production.

 

Oil fuels Nigeria's economy, making up more than 90% of its export value.
Pipelines are the veins transporting crude from production sites to ports
and refineries.

 

But those pipelines have lost more than 3 million barrels of oil in the
first five months of this year, according to data from the Nigerian Upstream
Petroleum Regulatory Commission. That amounts to about $265 million or N400
billion, based on an average of $88 a barrel.

 

Nigerian National Petroleum Corporation's recent disclosure of a funding
shortfall for pipeline maintenance could have serious consequences.

 

Faith Nwadishi, a leading Nigerian energy expert, raised the alarm about
potential risks of this development.

 

 

"Why would they say that they have a shortage in funding, knowing that the
pipelines are the vehicles for transmitting or transporting the crude that
could actually bring in funds and revenue to the country? ... When these
things are not done, we are also encouraging oil theft. We are encouraging
destruction of the environment, oil spillages that could come from these
pipelines that are over aged," Nwadishi said.

 

Although it remains a major oil producer, Nigeria is often behind on
production targets because of theft and infrastructure challenges.

 

NNPC's 2023 financial statements show it spent nearly $29 million or N45.88
billion, on pipeline security and maintenance nationwide.

 

Public policy analyst Jide Ojo blamed the maintenance shortfall on multiple
factors, including corruption.

 

"Corruption is what is responsible for the funding challenge of NNPCL. ...
When things are shrouded in secrecy, it spaces room for abuse of office,
corruption and all manners of malpractice. ... For many decades, we didn't
even know how many liters of crude oil we were producing per day and there
was a lot of impunity in that sector," Ojo said.

 

 

Nigeria's 2022 Petroleum Industry Act aimed to boost sector performance and
attract investments, but progress has been minimal.

 

Ojo stressed the need for better reforms to strengthen public-private
partnerships.

 

"Government needs to have better policy environment. ... The enabling
environment needs to be better enhanced," Ojo said. "Don't forget, there is
what is called the ease of doing business. I think the federal government
needs to do more on that ease of doing business, so that our investors can
come and make money, and be able to invest without much concern about
repatriation of their money."

 

Nigeria removed its petroleum subsidy in May 2023 to conserve oil revenue,
causing fuel prices to surge.

 

Pipeline inefficiencies add to pricing pressure, straining Nigeria's fragile
economy.

 

Nwadishi called for a lasting solution to the crisis.

 

"If these pipelines have outlived their relevance or their lifespan, they
should be replaced. ... There's technology to monitor the pressures that
come from the different pipelines, and the different points of
intersection," she said. "It could also help to know when there's
interference in the pipeline. It also further helps to determine where
volumes are being lost, so that early repairs can be made, and it reduces
cost."

 

VOA.

 

 

 

 

Liberia: How Much Debt Did Weah Accumulate During His Tenure?

Monrovia — Deputy Minister of Finance and Development Planning, Dephue Zuo,
during a press briefing this week, claimed that the administration of former
President George Weah accumulated USD 2.6 billion in debt during its
six-year tenure. However, the Weah administration's turnover notes, seen by
The Liberian Investigator, indicate that this assertion is inaccurate.

 

The turnover note to the Ministry of Finance & Development Planning shows
that when President George Weah assumed office in January 2018, his
administration inherited a national debt of approximately USD 1.09 billion.
This debt was a combination of external and domestic liabilities. At the
start of the Weah administration, Liberia's external debt stood at around
USD 693 million, owed to various multilateral creditors such as the World
Bank, the African Development Bank, and the International Monetary Fund, as
well as bilateral creditors from other nations. The domestic debt inherited
was approximately USD 396 million, primarily owed to local creditors,
including commercial banks, the Central Bank of Liberia, and various local
contractors who had provided goods and services to the government under the
previous administration.

 

 

During its six-year tenure, the Weah administration contracted additional
debt totaling around USD 1.14 billion. This new debt was divided between
external and domestic sources. The government borrowed USD 838.55 million
from external sources, mainly from multilateral institutions like the World
Bank and the African Development Bank. Of this amount, USD 621.86 million
had already been disbursed by the time the administration left office. On
the domestic front, the administration increased the country's debt by USD
396.54 million, fully disbursed and largely owed to local financial
institutions, including commercial banks and the Central Bank of Liberia.
This increase in domestic debt was partly due to the government's reliance
on domestic borrowing to finance its budget shortfalls.

 

 

By October 2023, when the Weah administration's term ended, Liberia's total
public debt had risen to approximately USD 2.21 billion. This debt consisted
of USD 1.26 billion in external debt, which accounted for 56.99% of the
total debt stock. Most of this debt was owed to multilateral creditors, with
USD 1.15 billion owed to institutions such as the World Bank and the African
Development Bank. The remaining USD 111.80 million was owed to bilateral
creditors, primarily foreign governments. The domestic debt at the end of
the Weah administration was USD 951.75 million, making up 43.01% of the
total debt. The Central Bank of Liberia emerged as the largest domestic
creditor, holding USD 630.48 million of this debt. Commercial banks held USD
192.87 million, while other institutions and contractors accounted for the
remaining USD 121.50 million.

 

 

During a Ministry of Information press briefing on Tuesday, Mr. Zuo, who is
the Deputy Minister for Economic Management at the Ministry of Finance and
Development Planning, stated that the Boakai-Koung regime inherited a total
debt of USD 2.6 billion from the Weah-Taylor administration, stressing that
the figures prove that the debts accumulated by the CDC government in the
last six years surpass those inherited from the Sirleaf-Boakai regime over
12 years.

 

According to him, under the former ruling Unity Party, led by ex-President
Ellen Johnson Sirleaf and Vice President Joseph Nyuma Boakai, the government
accumulated USD 881 million in debt over its 12-year tenure.

 

He also stated that USD 4.2 billion was waived under the Sirleaf
administration. "You will be surprised, as Liberians, but let me say this to
you: in a six-year period, the CDC government of former President George
Weah accumulated USD 2.6 billion in debt."

 

Minister Zuo further noted that of the USD 2.6 billion, the Boakai-Koung
regime inherited over USD 1 billion in domestic debts, which, according to
him, raises questions about the fiscal management team of the immediate past
administration.

 

"In addition to that, we're talking about external debts; out of that USD
2.6 billion, the domestic debt we inherited is so huge, which is USD 1
billion. This action strangulates our local Liberian businesses by taking
away money from them and leaving government workers unpaid after work,"
Minister Zuo asserted.

 

According to him, some local contractors could not be paid by the CDC
government for their services, thus leaving them in a state of dilemma. "Due
to this poor management of the fiscal space of the country, this is why this
Rescue Mission has come to rescue the country."

 

"In fact, what they accumulated in the last six years is more than what we
accumulated in 12 years," he added. He also stated that not all creditors
waived their debts to the UP government in 2010.

 

He further questioned the expenditure of over USD 1 billion in domestic debt
accumulated under the Weah administration. "So the question is, USD 1.5
billion-plus in debt over six years--where did it go?"

 

These assertions by the Ministry of Finance & Development Planning came in
the wake of its attempt to debunk reports that the government has been
blocked from accessing funds from the World Bank due to its failure to meet
its loan payment obligations.

 

The suspension of its drawing rights was confirmed by the World Bank country
office in Monrovia; yet, the Ministry of Finance claimed that the media
reports on its suspension were false.

 

Liberian Investigator.

 

 

 

 

Senegal Seeks to Reign in Polluting Illegal Gold Mining Along Mali Border

Senegal has suspended mining activities along the Falémé river, which forms
part of its southeastern border with Mali, in a bid to preserve the
environment and protect public health. However, enforcing the ban won't be
easy.

 

Artisanal gold mining is booming in Kédougou, a region in southeast Senegal
where the Falémé river flows.

 

Over the past 20 years, miners from 19 African countries have flocked there
in search of fortune.

 

Unfortunately, the mercury, lead and cyanide used in the gold extraction
process have polluted the river, upon which thousands rely for farming and
livestock.

 

Scientific studies have detected toxic substances in wells, water tables,
agricultural products and even in the bodies of livestock and humans.

 

"This worrying situation calls for strong measures on the part of the
national authorities to find a fair solution to the incessant complaints
from people living along the river" said Senegal's Ministry of Mines in a
report last week.

 

 

On Tuesday, Prime Minister Ousmane Sonko issued a decree suspending all
mining activities on Senegalese territory up to 500 metres from the river's
left bank until 30 June 2027. The issuance of new mining permits has also
been suspended.

 

A matter of national security

 

The Falémé river flows from the highlands of Guinea, along a significant
portion of Senegal's border with Mali, and into the Senegal river.

 

It was once home to diverse species of fish and mammals but is now in urgent
need of restoration said a 2024 report in the Journal of Water Resource and
Protection.

 

A study by the Senegalese NGO Wassaton found that the number of illegal
mining sites along both the Senegalese and Malian sides of the Falémé had
risen from 600 to 800 in 2021.

 

 

Wassaton's president, Adama Ndiaye, said that Chinese companies and
traditional gold panners have set up these sites on both banks of the river.

 

"They're in pick ups and L200 vehicles, using excavators and they don't live
in the area," he told the Senegalese Press Agency.

 

PM Sonko said suspending all gold-panning activities to combat pollution was
a "matter of national security". But he acknowledged it was a difficult
issue "because the solution does not depend on Senegal alone".

 

"We share the river with our neighbour [Mali]," Sonko said. "And that's why,
during our recent trip to Mali, we raised the issue with the authorities.
There is gold panning on the other side too, using the same products,
notably mercury."

 

 

In 2014, Senegal designated a zone where artisanal gold mining was
authorised in an effort to regulate the activity. The army has dismantled at
least three illegal gold-panning sites since April this year.

 

The government says it's relying on the armed forces to enforce the
temporary ban.

 

However, Senegalese authorities are unsure who the illegal gold panners are
or where they are operating said Oudy Diallo, head of the non-profit
Kédougou Alerte Environnement.

 

This makes it difficult to conduct a proper census "because we have no
control over the comings and goings of gold miners from the sub-region" he
told RFI.

 

Gold mining in Ivory Coast: Locals fear water contamination in eastern
regions

 

'Protectors of the Falémé'

 

Environmental activist Diallo says the suspension has been welcomed by
people living along the Falémé, who are ready to assist the authorities in
enforcing the decree.

 

"We need the population, the village chiefs, to get involved," he said. "We
are all protectors of the Falémé."

 

He acknowledged that locals cannot arrest the gold panners themselves but
suggested they could contact local authorities to ensure security forces
intervene and remind miners they no longer have the right to mine gold.

 

Diallo is also calling for an independent audit of mining permits, which he
claims were granted "without ever being subject to an environmental impact
study."

 

Most of the gold extracted is sold in Mali, where prices are higher - one
gram of gold in Senegal can fetch 31,000 CFA (51 USD) while in Mali it can
exceed 40,000 CFA (67 USD).

 

The effectiveness of the ban will also depend on whether Malian authorities
can implement similar measures on their side of the river - a difficult task
given Mali's military-led government since the 2020 coup and ongoing
struggles with jihadist violence.

 

(with newswires)

 

-RFI website.

 

 

 

South Africa: Zikalala Calls for the Participation of Women in the Built
Industry

Public Works and Infrastructure Deputy Minister, Sihle Zikalala, has called
for more work to be done to ensure the participation of women in the built
industry including the use of preferential procurement to target women-run
businesses.

 

Zikalala was speaking on the first day of the two-day South African Women In
Construction (SAWIC) policy and elective conference in Jeppestown,
Johannesburg on Thursday.

 

The Deputy Minister promised to continue engaging with SAWIC in order to
advance transformation of the built environment by prioritising the
empowerment of black women as a designated group.

 

 

SAWIC is an organisation empowering women within the construction and Built
Environment industry. The organisation, founded in 1997, will elect new
leadership following challenges within the organisation that led to not
hosting an elective conference in 2022 and 2023.

 

"We look to your conference to adopt policies and programmes that will
ensure that collectively, we change the face of the construction industry
and unlock the industry's true potential," Zikalala said.

 

"Taking place at a time where our government, led by National Treasury, is
consulting on finalising infrastructure procurement regulations in line with
the newly enacted Public Procurement Act, we hope your conference will
reflect on the Act and how women will benefit from it."

 

Zikalala expressed confidence in the newly-elected leadership and that the
policy proposals from the conference will assist government to drive
inclusive growth and job creation, reduce poverty and tackle the high cost
of living while building a capable, ethical and a developmental state.

 

"More needs to be done to ensure the meaningful participation of women. We
make an impassioned plea that the private sector must work with us to
develop the skills pipeline in both the construction and property sectors.

 

"Our programmes must address skills shortages among women in particular
while increasing business opportunities for them," he said.

 

The Deputy Minister's comments come as Women's Month which is commemorated
in August, draws to a close.

 

This year's commemoration of Women's Day on 9 August, marked 68 years to the
day since 20 000 women of diverse backgrounds from across South Africa
marched on the Union Buildings to protest against the extension of pass laws
to women.

 

SAnews.gov.za.

 

 

 

Top Brazil court to vote on ban of Musk's X

Brazil's Supreme Court will vote on Monday on whether or not to uphold a
ruling to ban social media platform X, formerly known as Twitter.

Justice Alexandre Moraes called for the vote after the platform was
suspended in the country in the early hours of Saturday.

It came after X failed to appoint a new legal representative in Brazil
before a court-imposed deadline.

A feud between Justice Moraes and X's owner Elon Musk began in April when
the the judge ordered the suspension of dozens of accounts for allegedly
spreading disinformation.

 

There are 11 justices in Brazil's Supreme Court, which is split into two
chambers of five members each, excluding the chief justice. The chambers can
vote on whether to uphold or reject rulings by any one of its judges.

Justice Moraes is a member of the first chamber that will be reviewing his
decision to ban X.

Reacting to the decision to ban X, Mr Musk said: "Free speech is the bedrock
of democracy and an unelected pseudo-judge in Brazil is destroying it for
political purposes."

In his ruling, Justice Moraes gave companies, including Apple and Google, a
five-day deadline to remove X from its app stores and block its use on iOS
and Android devices.

He added that individuals or businesses that are found to still be accessing
X by using virtual private networks (VPNs) could be fined R$50,000 ($8,910;
£6,780).

X closed its office in Brazil last month, saying its representative had been
threatened with arrest if she did not comply with orders it described as
"censorship", which it described as illegal under Brazilian law.

Justice Moraes had ordered that X accounts accused of spreading
disinformation - many of which were supporters of the former right-wing
president Jair Bolsonaro - must be blocked while they are under
investigation.

Brazil is said to be one of the largest markets for Mr Musk's social media
network.-BBC

 

 

 

 

Fears over energy tax rises as business confidence falls

Raising the windfall tax on the UK's oil and gas companies will hit the
government's main goal of growing the economy, the industry has said.

Offshore Energies UK (OEUK) said the planned hike would cause investment in
the sector to plunge and result in a loss of £13bn to the UK economy from
2025 to 2029, putting 35,000 jobs at risk.

The warning came as a leading business group warned that talk of tax rises
and employment rights has "dented confidence in the environment for business
in the UK".

A Treasury spokesperson said the government was committed to a "constructive
dialogue" with the industry over changes to the tax.

 

Under government plans, the Energy Profits Levy (EPL) - which is the
official name of the windfall tax - is due to rise from 35% to 38% on 1
November on the profits oil and gas firms make in the UK.

Companies operating in the North Sea are already taxed differently to
others. They pay 30% corporation tax on profits as well as a supplementary
10% rate.

It means from November, the total tax rate on profits made by energy firms
in the UK is expected to rise to 78%.

The government has also announced it wants to extend the length of the levy
until 2030, and that it will "tighten" investment allowances, which have
allowed firms to reduce the amount of tax paid if they invest in projects,
such as green energy, in the North Sea.

OEUK said the policy changes would "undermine" the industry's ability to
"support the government’s overarching goal of driving economic growth".

Its analysis follows previous concerns from firms over the Labour
government's plan to increase the windfall tax on profits made by energy
companies.

The industry body's analysis claimed:

The expected tax take from oil and gas producers would "increase in the very
short term" by £2bn but then would later result in a £12bn loss in receipts.

A "rapid decline" in investment from £14bn under the current tax policy to
£2bn by 2029.

About 35,000 jobs would be at risk in 2029 alone due to projects not going
ahead.

"This is a government that has made economic growth its main priority and
yet our analysis shows that its policy will ultimately reduce this sector’s
contribution to the UK economy," said David Whitehouse, OEUK chief
executive.

Plan to hike windfall tax sparks energy jobs warning

Typical household energy bill up £149 a year in October

 

Last week, Prime Minister Sir Keir Starmer warned the autumn Budget in
October, where the government will outline its taxation and spending plans,
would be "painful".

Talk of tax rises and employment rights has "dented confidence in the
environment for business in the UK", said Anna Leach, chief economist at the
Institute of Directors business group.

The group said business leader confidence had fizzled out in August with
investment intentions for the year ahead seeing the sharpest decline since
the beginning of the Covid pandemic lockdowns.

Revenue and headcount expectations for business bosses also fell last month.

"We are calling on the government to take time to get policy design right
for the long-term, and deliver the stable tax and policy framework needed to
drive business confidence and investment," Ms Leach added.

'Time is running out'

Mr Whitehouse said for more than two years, UK oil and gas companies had
paid "three times" the rate of corporation tax of any other sector.

"Time is running out to mitigate damage that has already been done and to
avoid further escalation," he added. "The prime minister promised to manage
the North Sea in a manner that does not jeopardise jobs.

"We now need an honest conversation on how we can do this and need
government to work with the sector at pace."

The Energy Profits Levy was first introduced by former Prime Minister Rishi
Sunak in May 2022.

Oil and gas prices began to rise after the end of Covid lockdowns and surged
following Russia's invasion of Ukraine, resulting in bumper profits for
energy companies.

With households being hit by soaring energy bills, the government came under
pressure to help. It introduced the windfall tax to help fund a scheme to
restrict gas and electricity bills, which has now ended.

Energy prices have fallen back since the peaks in 2022, but remain at a high
level. The typical annual household energy bill will rise by 10% from
October.

OEUK said the original EPL introduced was intended to be a "temporary tax in
response to the economic environment at the time".

"These unprecedented oil and gas prices have since returned to align with
long- term real averages, and the windfall conditions that the EPL was
designed to address have passed," it said.

A spokesperson for the Treasury said: “We are committed to maintaining a
constructive dialogue with the oil and gas sector to finalise changes to
strengthen the windfall tax, ensuring a phased and responsible transition
for the North Sea.

"Our plans for a new National Wealth Fund and Great British Energy will
create thousands of new jobs in the industries of the future.”-BBC

 

 

 

UK and EU airports are sticking with 100ml liquid rule - but why?

Air travellers who hoped the era of "tiny toiletries" was nearly over are
facing fresh disappointment, as European airports re-introduce strict cabin
bag rules.

Some EU destinations had scrapped the 100ml limit for liquids being carried
in hand luggage.

But from Sunday, they must all bring it back due to a "temporary technical
issue" with new security scanners. It follows a similar move by the UK
earlier this summer.

It means if you have been on holiday, you cannot buy a large bottle of
suncream, perfume or a local tipple before you get to the airport and expect
to carry it home in your hand luggage.

But why has it happened? And will the relaxed rules that had started in some
locations ever return?

 

What is happening in the EU?

Airline passengers around the world had grown used to strict 100ml
restrictions on liquids, pastes and gels, which had to be put in a clear
plastic bag.

But new scanning machines which use CT X-ray technology should in theory
enable larger volumes of liquids to go through, and laptops to stay in bags.

Some EU airports, for example in Rome and Amsterdam, had already put them in
place and eased their rules. Most had not yet. Some others have been
trialling the new technology.

The Europe branch of the Airports Council International (ACI) estimates
around 350 of these scanners are now in use across 13 EU countries such as
Germany, Ireland, Italy, Lithuania, Malta, the Netherlands, and Sweden.

However, the EU has reinstated the 100ml limit so a technical issue with the
new equipment can be addressed, although it has not said what this issue is.

Reports have suggested that the scanners were not accurate for some liquid
containers being carried in bags.

In July, ACI Europe criticised the restriction as a "setback for the
passenger experience and a blow to major investments made by airports".

Its director general, Olivier Jankovec, said security was the top priority,
but added that those "which have been early adopters of this new technology
are being heavily penalised both operationally and financially".

He also argued that restricting their use "questions the trust and
confidence the industry can place in the current EU certification system for
aviation security equipment".

Getty Images Small bottles of liquid in a see-through plastic bag traveling
through an airport security scannerGetty Images

 

What happened in the UK?

Predictions that all the UK’s airports would scrap their hand luggage liquid
limits this year did not come to pass.

The previous Conservative government had required state-of-the-art scanning
equipment to be installed in security lanes by June 2024.

It hasn’t proved that straightforward.

Some smaller airports, which have fewer lanes to update, did meet a deadline
of June 2024.

London City, Teesside, Newcastle, Leeds-Bradford, Aberdeen and Southend had
complied on time and dropped the old liquids rules.

However, the likes of Heathrow, Gatwick and Manchester didn't. Reasons
varied from the need for construction work, to supply chain problems. They
were given more time to get the new kit in place.

But in mid-June, the Department for Transport suddenly announced 100ml
liquids limits must be re-introduced where they had been dropped.

Those airports that had scrapped the rule needed to swiftly change their
processes and airport bosses were angry at the sudden U-turn.

Why has the rule been brought back?

The European Commission announced in late July that the maximum size allowed
for individual liquid containers would revert back to 100ml.

There is no date for when the rules will be relaxed again.

The Commission said this wasn't "in response to any new threat but addresses
a temporary technical issue" with the new generation of scanners.

It said it was taking the action "in alignment with the EU’s international
partners", and that "swift technical solutions" would be developed.

The UK government previously said the systems needed improving after new
information came to light.

However it has also given no end date for the 100ml limit, so it's unclear
how long the situation will last.

The Department for Transport said it was "working with manufacturers,
airports and international partners to lift restrictions when possible.”

So for the foreseeable future it's best for passengers to assume the old
100ml restrictions apply, and check the rules at both departure and return
airports before travelling.-BBC

 

 

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

Cellphone:         +263 71 944 1674 | +27 79 993 5557 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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been compiled from s believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


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<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
5557 | +263 71 944 1674

 


 

 

 

 

 

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