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Nigeria Loses 6.5 Million Barrels of Oil to Force Majeure, Sabotage in December. Again

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Abuja — There appears to be no end in sight to the financial and resource haemorrhage in Nigeria’s oil and gas industry, with the country once more losing as much as 6.596 million barrels of oil in its December 2021 production.

At an average of $75 per barrel that crude oil sold last month and an official exchange rate of N415/$1, Nigeria failed to take advantage of high international oil prices for the month, losing a whopping $487.5 million (about N202.3 billion).

Latest figures from the Nigerian National Petroleum Company Limited (NNPC) indicated that the losses were due to a combination of factors, including force majeure declared by a Joint Venture (JV) partner. Other reasons listed by the national oil company included community issues, maintenance work, sabotage, and technical matters, like leakages, pressure build-up, and faulty valves.

But in the month that the company experienced the N202 billion loss, it remitted a meagre N20 billion of its projected N209 billion to the Federation Account. The amount was, however, about 100 per cent higher than the N10.5 billion it contributed in November 2021.

NNPC’s presentation to the Federation Account Allocation Committee (FAAC) indicated that Bonny took the greatest hit, losing 2.712 million barrels in the month due to the force majeure declared on the Nembe Creek Trunk Line (NCTL).

The Urha terminal followed with 1.468 million barrels loss, which curtailed production within the period and hobbled exports. The loss from that particular terminal exceeded the country’s production for the entire month.

Odudu terminal also suffered the same fate due to decrease in production as a result of maintenance work on the Odudu and Ima terminal.

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Furthermore, Forcados shed 456,575 barrels of oil as a result of what NNPC described as community issues, which delayed reinstatement of the facility.

Besides, Yoho dropped 420,000 barrels during the month under review, owing to a faulty valve; Ajapa lost 30,000 barrels due to shut down, while Aje terminal curtailed production within the period to the tune of 62,000 barrels.

Similarly, Brass suffered sabotage around Tebidada and Ogbaibiri flow stations as well as valve issues, pressure build-up, high sand production, leak repairs, resulting in a total loss of roughly 198,200 barrels.

Last week, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) lamented that with the Organisation of Petroleum Exporting Countries (OPEC) production quota of 1.683 million bpd in January and 1.701 million bpd in February, Nigeria was only able to pump 1.396 million bpd currently.

In all, it stated that this was leading to a loss of at least 115,926 million bpd on a daily basis, put at roughly $300 million monthly.

“We are losing about 115, 926 barrels per day, so that literally translates to roughly $300 million and that’s a huge loss to a nation that actually requires these funds,” the commission’s Chief Executive, Mr Gbenga Komolafe, stated.

Komolafe attributed the underperformance to mostly oil theft, sabotage, vandalism, and technical issues, including ruptures associated with the assets.

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In its Monthly Oil Market Report (MOMR) for December, OPEC stated that given a comparison of that month with the previous month of November, a daily underperformance figure of 78,000 barrels per day was recorded by the country in December.

Cumulatively, THISDAY analysis showed that Nigeria lost as much as 2.418 million barrels of crude due to under-production in that month.

The month also saw Nigeria slump lower than other previous production performances, compared to, for instance, October, when 1.228 barrels were pumped per day, and November, when 1.275 million barrels were produced per day.

Given a conservative estimate, the inability of Nigeria to pump more oil in that month might have cost the country approximately $205.5 million for the entire month.

Last week, NNPC requested a total of N3 trillion from the federal government to fund fuel subsidy in 2022 after the current administration suspended its earlier plan to end the policy.

Speaking on Arise Television, THISDAY’s broadcast arm, last week, a former Executive Secretary of the Nigerian Extractive Industries Transparency Initiative (NEITI), Waziri Adio, stressed that since Nigeria first reported oil losses, the situation had escalated and was taking a heavy toll on the country.

In a period of 10 years, Adio stated, an analysis of losses to oil theft by NEITI revealed an enormous to $41.9 billion, about $4.1 billion per year. He argued that aside its economic implications, the losses also had security ramifications.

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AFRICA

AICC: Egyptian Grandmasters Dominate Tourney

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With just two rounds left to play, top Nigerian chess players have dropped out in the ranking at the on-going African Individual Chess Championship holding at the Orchid Hotel in Lekki, Lagos.

Although Nigerian players showed shade of genius in the battle field as the tournament reached its climax on Sunday night, the Egyptian who are higher rated players dominate play with Adly Ahmed (African number 2) and Woman Grandmaster Wafa Shahenda leading the pack of other players in both Open and Women sections.

Both have consolidated their lead in the competition, as every win counts to games 4 and 5.

WGM Wafa trounced her Angolan opponent, Woman International Master Esperanca Caxita, in a Sicilian opening with black mostly dominating the game right from the middle play.

The Egyptian WGM is all but a massive one point ahead of the pack leading into the final rounds starting this morning.

While the Egyptian masters are dominating play, credit also goes to some Nigerians raising their heads to be countedNigeria Youth Games product, Onoja Iyefu Joy continues to show resilience and determination to earn her first chess title and create a record while at it.

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She had on Saturday continued her fine run of form by scoring an entire point against Paulo Jemima to register the second position on the ranking table with 9 points. A win in the 7th round will help Joy secure a Woman International Master Title.

WIM (elect) Ofowino Toritsemuwa bettered her AICC Tunisia 2019 record, and she is bound to create a new one as she takes on WGM Wafa in the seventh round.

Toritsemuwa currently shares second place with her compatriot, Iyefu Onoja, both holding 4.5 points, hence making the 7th game point as crucial for the player.

In the Open section, 20-year-old Eyetonghan Denyefa Callistus is pulling his weight. He scored an outstanding 4.5 points after six games, but it is not about the score, somewhat the opponents; defeating 1 GM, 2 IMs, and three draws against two IMs and FM, the youngster will get his chance at GM Adly in the seventh round.

With a half point behind the tournament leader, African Number 1–GM AminBassem landed his second consecutive win after the drawn game with compatriot GM Ahmed Adly, demonstrating he still stands a chance to catch up and maybe win the tournament.

Bassem faces IM David Silva of Angola in the seventh round, who had to offer a draw to his opponent in the sixth round due to health issues. We hope he’s gotten his strength back for this crucial game.

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The tournament ends tomorrow with Maltina and Gulder are among the top sponsor of the event.

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Don’t vote for ‘killers’ in 2023 elections – ex-President Jonathan urges Nigerian youths

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A former President of Nigeria, Goodluck Jonathan, has urged Nigerians not to elect “killers” in the 2023 general elections.

Mr Johnathan stated this on Sunday in Uyo, Akwa Ibom State during a thanksgiving service to mark the 35th anniversary of the state.

Mr Johnathn and his wife, Patience, were the special guests of honour at the service which was also attended by the governor of his home state — Bayelsa — Douye Diri.

“In 2023, you must not make the mistake to vote killers. Those who carry knives, guns, and all kinds of gadgets to go and kill people because of politics, are the enemies of society.

“If you kill to become a leader, you will continue to kill to remain a leader and the people will continue to suffer.”

The former president said he has monitored the growth of Akwa Ibom, adding that he has been visiting the state at least once a year since he joined the defunct Oil Mineral Producing Areas Development Commission, now Niger Delta Development Commission, in 1994 as an assistant director.

While thanking the youth of the state for not vandalising infrastructure, the former president recalled how some people sabotaged his development efforts in the power sector by using arc saws to fell towers because they wanted Nigeria to remain in darkness.

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Mr Johnathan said the election of the State Governor, Udom Emmanuel, should teach politicians a good lesson, especially those who doubted Mr Emmanuel’s ability to manage “human beings”.

Governor Emmanuel was an executive director at Zenith Bank before he was appointed Secretary to Akwa Ibom State Government, a position he later resigned from to vie for the governorship of the state which he won in 2015.

Akwa Ibom is ‘strong national story’ – Gov Emmanuel

Earlier in his speech, Mr Emmanuel thanked the people of the state for their support and described this year’s state anniversary as his last as the state governor.

The governor said Akwa Ibom has become a state with a “strong national story and a sparkling destination of choice for Nigerians and others around the world”.

He appreciated the people for the choice of “Moving Forward,” as the theme of the celebrations but also reminded them that in “moving forward we have to also look back.”

He referenced Joseph, a Biblical figure who later became the Prime Minister of Egypt and added that the children of Israel suffered because of Joseph’s mistake.

“Joseph made a mistake in Egypt when he was about to go, he did not look at the issue of who succeeded him and that is why the children of Israel suffered.

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“If you are a God-sent man you must also learn. I’ve learnt from what Joseph did and today we went back to God and I want to appreciate all Akwa Ibomites because a man after God’s heart will come after another man after God’s heart,” Mr Emmanuel said.

He promised to complete before leaving office next year, the international worship centre that his administration is building in the state.

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AFRICA

Knocks, Kudos as Peter Obi promises 100m poor Nigerians ‘access to free medical care’

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Mixed reactions have trailed the promise by the presidential candidate of the Labour Party (LP), Peter Obi, stating that his administration will prioritise the welfare of the poor Nigerians if elected.

Obi said youths would be the proponent of his agenda to transform the economy.

“If elected the next president of Nigeria, youths would be the main proponents of my main agenda to transform Nigeria from a consuming nation to a producing nation. The two main components of this agenda are human capital development and finance.”

Obi further said health and education are vital to the development of the country, promising to ensure “at least 100 million poor Nigerians have access to free medical care”.

“Given the role of health in reinforcing education in the measure of productivity, my leadership will pay serious attention to the health system by ensuring that at least 100 million poor Nigerians have access to free medical services through an integrated health insurance scheme.”

Obi’s promise which has gone viral, generated divergent reactions on social media platforms.

While some supporters of Obi believed the promise made by their candidate is possible, they argued in support that the country is buoyant enough to take care of citizens’ medical care.

Reacting, a Twitter user; @el_bonga posited: “Peter Obi governed Anambra State for 8 years and he couldn’t provide the state— probably less than 10 million— with free healthcare but he wants to give free medical care to 100 million Nigerians. Interestingly, under his watch, Doctors went on a 13-month strike in Anambra in 2013.”

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Favour Abdalla Destiny said: “The problem is not to vote; the problem is that they know how to promise and after election they will forget all.”

kingharzyz1 argued: “How is this possible? Can you even do free medical care for carcinoma patients alone? Aspirants need to start telling us “How”.

Another user @tha_niel said: “Affordable healthcare is different from free healthcare. Affordable is realistic because the beneficiaries wld contribute an amount. We cannot have a subsidised economy yet. Except when we begin to efficiently recognise all revenues and apply subsidies where it’s needed.”

Oluwashola @Sholexx_ said: “Health is very expensive. Even in the US, you can’t get free medical healthcare due to the cost. What you can get anywhere in the world is subsidised healthcare via health insurance. He should be realistic with his electoral promises.”

Defending Obi’s promise, @drpenking stated that: “Peter Obi said that 100m Nigerians will have access to free medical care and you people think it’s not possible. In Akwa Ibom State there has been free medical care for elderly, children and pregnant women. Our country is rich enough to do these things. Politicians just refuse it”

@urchilla01 said: “This is why I’ve always said that this election should be about antecedents. There’s nothing Peter Obi says he’ll do that he didn’t do as Governor. This is the famous “Anambra ANIDS card” with which students, disabled, & elderly accessed free health care in govt hospitals. ‘

“Under Peter Obi’s Government. When we say #GoAndVerify verify, it is because we fear not for what you will find. Our principal na talk & do. A comprehensive integrated health insurance scheme made this possible, just the same way he said he’ll do it.”

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ASUU: Seven months after, FG orders VC’s to reopen schools

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The Academic Staff Union of Universities has been on strike for about seven months now.

The association is demanding from FG the funding of the Revitalisation of Public Universities, Earned Academic Allowances, University Transparency Accountability Solution (UTAS) and promotion arrears.

Others are the renegotiation of the 2009 ASUU-FG Agreement and the inconsistency in Integrated Personnel Payroll Information System.

Recall that the federal government went to court to challenge the action of the association. Last week the national industrial court through Polycarp Hamman, the judge in the NIC, granted the federal government’s application for an interlocutory injunction to restrain ASUU from continuing with the strike.

The outcome of the judgement was questioned by Femi Falana, human rights lawyer and senior advocate of Nigeria (SAN), who stated that the national industrial court does not have jurisdiction to rule on the case between the federal government and the Academic Staff Union of Universities (ASUU).

However, tired of the lingering strike the Federal Government through the National Universities Commission ordered vice-chancellors to re-open schools and allow students resume lectures.

In a letter disclosed to journalists on Monday, signed by the Director, Finance and Accounts of the NUC, Sam Onazi, on behalf of the Executive Secretary of the commission, Professor Abubakar Rasheed, FG instructed all vice-chancellors; Pro-Chancellors and chairmen of governing councils of federal universities to re-open schools.

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“Ensure that ASUU members immediately resume/commence lectures; Restore the daily activities and routines of the various University campuses”, part of the letter read.

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