NEITI Chairman, Ledum Mitee

The independent report was presented on Monday.
Nigeria lost over 146 million barrels of crude oil estimated at about $11.794 billion (about N1.852 trillion) to theft, deliberate sabotage, and pipeline vandalism between 2009 and 2011, the latest audit report by the Nigerian Extractive Industries Transparency Initiative (NEITI) released on Monday revealed.
NEITI Chairman, Ledum Mitee, who was speaking at the public presentation of reports, which covered the audit of oil and gas industry for the period 2009 and 2011, and the solid mineral industry for the period 2007 and 2010, said the amount lost represented about 7.7 per cent of about $143.5 billion (about N2.253 trillion) realised as total revenue from equity crude oil sale, royalty, signature bonuses and taxes during the period.
Mr. Mitee said the figure captured only those incidents reported by three multinational oil companies operating in the country during the period, including Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited (CNL) and Nigerian Agip Oil Company (NAOC).
The reports presented by the Minister of Finance and Coordinator for the Economy, Ngozi Okonjo-Iweala, showed that the Nigerian National Petroleum Corporation (NNPC), the Petroleum Products Pricing Regulatory Agency (PPPRA) and two other agencies are to refund over N8.138 billion to the Federation Account as fuel subsidy over-recovery collected from petroleum products marketers between 2009 and 2011.
The figure is made up of about N4.423 billion collected from some marketers, which is yet to be remitted to the Federation Account by the PPPRA, while NNPC and two other companies are yet to refund N3.715 billion collected for a similar purpose during the period.
In addition, Mrs. Okonjo-Iweala said the NNPC was also yet to reconcile the remittance of another N8.62 billion it received, including dividend payment by the Nigeria LNG Limited, which is yet to be remitted to the Federation Account since 2009.
The report presented in Abuja, is the first comprehensive audit of the country’s extractive industry by NEITI since Nigeria signed on to Extractive Industries Transparency Initiative (EITI) principles in 2003.
In the latest report, Mr. Mitee said Nigeria’s total crude oil production increased by 4.8 per cent over the 2006 figure to 2.5billion barrels in 2008, made up of 780.9 million barrels in 2009; 894.5 in 2010, and 866.2 million barrels in 2011.
The report showed that contrary to the claim that about N3 trillion (made up of N1.4trillion to the NNPC and N1.6trillion to other fuel marketers) was paid to importers of refined petroleum products as subsidy, there was a disparity of about N175.9billion between claims paid from the Federation Account and disbursements by the PPPRA during the period.
Similarly, while the Office of the Accountant General of the Federation (OAGF) reported a total subsidy payment of N2.825 trillion, the PPPRA said it disbursed N3 trillion to marketers, apart from an un-reconciled difference of N1.04 billion reported following disagreements by some marketers over the N2.56 billion ascribed to them by the PPPRA in 2010, against N1.52 billion recorded for them as payment.
In addition, the report noted that subsidy payments of N198 billion through NNPC in 2009 increased to N416 billion in 2010 and N786 billion in 2011, with subsidy payment through PPPRA increasing from N208 billion in 2009 to N278 billion in 2010 and astronomically to N1.12 trillion in 2011.
Noting a decline in government crude oil productions, crude lifting, and revenues accruable to the Federation Account, the report attributed it to inadequate funding of Joint Venture operations, and recommended an urgent review of the Modified Carry Arrangements in the context of government adequate funding of JV operations.
On refineries, the report noted that the industry suffered a combined loss of over $866 million (about N135.962 billion) to the Federation Account as a result of over 80 per cent of crude oil allocated to local refineries being exported abroad for off-shore processing, crude oil and product exchange, because all the four refineries were operating below their installed capacities.
On the controversial OPL 245, the report noted the lack of transparency, accountability and due process, particularly in the Bid Process and Signature Bonus payment, pointing out that while Shell claimed it paid about $207 million as Signature Bonus on the oil block, in addition to $2.004 million paid earlier, the Department of Petroleum Resources (DPR) was unable to provide additional information to contradict the claims.
The Report demanded the urgent review of the existing agreements in the industry with the JV companies to reverse the loss of over $1.7 billion between 2009-2011 as a result of relying on an Memorandum of Understanding that expired in 2008 in transactions with Nigeria, resulting in a difference between NNPC and covered entities positions reported by the auditors as revenue losses to the Federation.
Other recommendations included the need to set up a committee to review and agree on a new fiscal regime and governance framework for the oil and gas industry and define clear roadmap for the implementation, while pushing for urgent passage of the Petroleum Industry Bill (PIB) currently before the National Assembly.
Ms, Okonjo-Iweala, who presented the reports, reiterated the commitment of President Goodluck Jonathan administration to uphold transparency and accountability in the extractive industry, adding that the value of the reports was not in their presentation, but in the implementation of their recommendations.
In her presentation, NEITI Executive Secretary, Zainab Ahmed, said the quality of the two reports by two indigenous consultancy firms, Sada Idris & Co, for oil and gas, and Haruna Yahaya & Co. for solid minerals, was a confirmation of the capacity of indigenous firms to compete favourably given the right environment and level playing ground.
The Minister of Mines and Solid Minerals, Sada Mohammed, expressed delight at the report, saying his ministry had already constituted a standing committee to review the issues about revenue generation from the sector and ensure that the recommendations were understood and adequately implemented.

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All Progressives Congress logo

The APC would be Nigeria’s largest opposition party.
The policy making organ of the Independent National Electoral Commission, INEC, will meet on Thursday to take a final decision on the application filed by the political parties merging to register as the ‘All Progressives Congress (APC)’, an official has said.
Kayode Idowu, the Chief Press Secretary to Chairman of INEC, Attahiru Jega, told the News Agency of Nigeria on Tuesday in Abuja that the commission’s chairman and the commissioners would meet as empowered by the law to take the decision.
On June 12, the Action Congress of Nigeria (ACN), Congress for Progressive Change (CPC); and the All Nigeria Peoples Party (ANPP) submitted an interim application to INEC for the registration of APC.
Mr. Idowu said that the process of registration of the merger groups as APC was on going as there was no infringement of any provision of the law on the issue.
“The stipulated 30 days after the application for registration has not lapsed so the commission has not broken the law. As at today we are speaking the process is on, no law has been broken,” he said.
Fears have been raised that INEC is not favourably disposed to registering the APC, following an ongoing court case filed by another group that had sought registration, and denied by INEC, using the same acronym.
Leaders of the merger APC have voiced their frustration at the electoral body’s seeming delay of the registration, saying they would be deemed registered by the end of the week if INEC did not accept or outrightly reject their application for registration.
If registered, the APC, which already has 11 state governors and several other merging groups and parties as members, will be Nigeria’s largest opposition party.
On allowing independent candidate in the 2015 general elections, as being suggested in the ongoing constitution review exercise, Mr. Idowu said it was not yet a law.
He said that since it was not in the Electoral Law, INEC as political umpire, would not do anything that was unconstitutional.
“The law that we have now does not allow for independent candidates; it is not even on the radar, but if the law is amended to reflect participation of independent candidates, then it becomes a law,” he said.
He said that until that was done the commission did not have such plan in its 2015 agenda.
(NAN)

The Federal Government plans to launch a ‘Roadmap’ for National Broadband’ as part of effort to boost internet connectivity and utilization by Nigerians.

Already, the government has inaugurated a committee to fashion out the modalities for the roadmap as well as how it will be effectively implemented.

Minister of Communication Technology, Mrs. Omobola Johnson, who inaugurated the Broadband Council said it would help the government to implement a roadmap for a national broadband plan. A statement by the Minister’s Special Adviser on Media, Mrs. Efem Nkanga, said the Council is made up of 19 members and will be chaired by the Minister.

This Board comprises Engr Ernest Ndukwe, Chairman Openmedia Group, Mr Jim Ovia; Chairman of Visafone, Dr Eugene Juwah, Executive Vice Chairman, Nigerian Communications Commission, Ms Funke Opeke, Chief Executive Officer, Main One Cable Company, Engr Titi Omo-Ettu, Managing Consultant, Telecom Answers Associates, Engr Gbenga Adebayo-Chairman, Association of Licensed Telecommunications, Mr Ademola Aladekomo ; President, Nigeria Computer Society.

Others are Mr Bayo Banjo-President Nigeria Internet Group, Mr Lanre Ajayi-President, Association of Telecommunication Companies in Nigeria, Mr Abdullahi Maikano-Secretary, Universal Service Provision Fund, Mrs Juliet Ehimuan Chiazor, Country Manager, Google Global Services Nigeria Limited, Mr. Junaid Dikko-Director, Etisalat, Mr. Mohammed Rudman,Chief Executive Officer, Internet Exchange Point of Nigeria, Mr. Ayoola Oke-Managing Partner, Ayoola Babatunde Oke & Co, Engr John Ayodele, Ministry of Communication Technology, Mr Emmanuel Onyeje, Microsoft and Mr. Jinmi Sonuga, principal consultant-Business Unusual Limited.

Members will work on implementation modalities for the newly developed and approved Nigerian National Broadband plan for the period of 2013 – 2018.The inauguration of the Broadband council represents an important and significant milestone in the implementation roadmap of the national broadband plan.

‘‘The terms of reference of the Broadband Council include providing periodic reports on the progress of the plan, facilitating the coordination and collaboration of the various stakeholders during plan implementation, ensuring that relevant agencies, institutions, and the general public are actively engaged.

Where necessary the Council shall be highlighting adjustment areas where needed in the execution of the strategy and roadmap,’’ Nkanga said. She also disclosed that the Broadband Council has both institutional, government and individual representation. Google and Microsoft represent a small section of the international partners strongly positioned to advance the broadband agenda. The government institutions that have the direct mandate to deliver broadband to the country are also included namely the Ministry, NCC, USPF and NITDA.
Sunnewsonline.com

CBN Governor, Mallam Sanusi Lamido Sanusi

… As analysts differ on monetary policy targets

As the Monetary Policy Committee (MPC) meeting comes to an end today in Abuja, analysts sharply divided on the likelihood of the Central Bank of Nigeria (CBN) altering the Monetary Policy Rate (MPR). This is against the backdrop of the current inflation rate, falling naira and dwindling revenue from oil.

The MPR has remained un-changed at 12 per cent for nine consecutive times since October 2011. According to Razia Khan, Regional Head of Research, Africa at Standard Bank, while the Monetary Policy Committee of the CBN would continue to retain the benchmark Monetary Policy Rate (MPR) at 12 per cent this year, it may rise to 14 per cent next year, just as the Consumer Price Index which stood at 12.2 per cent last year, is forecast to close 2013 at 9.2 per cent, before rising to 11.0 per cent by 2014.

According to Khan, “we expect inflation to remain in single digits until the end of 2013, allowing the Monetary Policy Rate (MPR) to remain unchanged at 12 per cent this year.

Although many had predicted a greater risk of easing following the achievement of single-digit inflation, recent pressure on the Nigerian Naira– given market expectations of a tapering of QE (Quantitative Easing in the U.S.) – as well as concern about Nigeria’s political cycle and spending pressures, will likely keep the monetary policy committee on hold.

The situation, Standard Chartered Bank said, is worsened by the weakening oil output relative to ambitious budget targets, especially as the Federal Government repeatedly dips into the excess crude reserves for help.

“With only modest spending increases envisaged in 2013, a budget deficit of 2.17 per cent was initially forecast. However, oil production, reportedly averaging 2.1 to 2.2 million barrels per day (mmbd), has fallen short of the 2.53mmbd assumed in the 2013 budget.?“In June, output may have hit a low of 1.9mmbd.

This has necessitated more frequent augmentation of revenue from Nigeria’s Excess Crude Account (ECA), the “unallocated” earnings belonging to the three tiers of the Federation. Dipping into oil savings to finance spending may result in a narrower budget deficit for 2013,” the report added.

Contrary to expectation, Consolidated Discount House Limited (CDL) report tagged: Inflation in June 2013 & Pre-MPC Review, the benign inflationary outlook early in the year had led to dovish expectations of a cut in rates later in the year, stating however, that as the headwinds against the naira and output leakages increase, the CBN has maintained a more hawkish posture in recent times.

On the likely MPC outcome, CDL researchers said despite the significant pressures on the naira and other variables, there may not be a hike in the benchmark rate at this month meeting, stating that raising the rates now will throw up the earlier observations on real sector financing.

“We expect the committee to maintain the MPR at 12 per cent and the corridor at +/-200bp. At the May meeting, the committee uncharacteristically raised concerns over the low level of credit growth to the private sector and traced this to the crowding out effect of high growth in credit to the public sector.

Raising the benchmark rate now would be counterproductive to this concern since the MPR has far reaching consequences on market rates. However, we see the MPR exploring other policy options to increase the stability of the local currency.

We believe that if staff forecasts and outlook turn out to be persuasive enough to warrant further tightening, the committee may tilt towards adjusting the Cash Reserve Ratio (CRR) which is currently at 12 per cent. We also anticipate that the bank may be induced to synchronise the midpoint of its +/-3 per cent FX band from the current N155 to the N160 level s of the 2013 FGN fiscal budget assumptions.

The mid-point of the local currency was adjusted downwards from N150 to N155 in September 2010 when the naira faced similar pressures.” On naira, CDL said the currency is strongest when the price of crude is on the upward trajectory and vice versa, stating that overall, the fragility of the global economy at this time increases the its vulnerability to external threats.

On her part, Renaissance Capital’s Sub-Saharan Africa Economist Yvonne Mhango, believed the modest decline in the inflation rate is not significant enough to sway the CBN from maintaining its grip on monetary rates due to the present challenges to the naira and the feverish preparation for the 2015 general elections.
Sunnewsonline

Minister of Finance, Ngozi Okonjo-Iweala

The minister lamented that not all MDAs were complying with directives.
‪The Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala, on Monday said that a total of N153 billion has been saved by the Federal Government from various schemes initiated to entrench transparency and accountability in the operations of ministries, departments and agencies (MDAs) in the country.
The amount consists of about N34 billion recovered so far through the ongoing probe of revenue generating MDAs over alleged financial abuses and siphoning of N58 billion to illegal accounts.‬
‪The minister, who was presenting an update on the successes so far recorded through the exercise, also put the cumulative savings as a result of the implementation of the Integrated Payroll and Personal Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS) at N119 billion; and about 46,000 ghost workers uncovered.‬
‪But, the minister was silent on the officials found to have masterminded the fraud and the various MDAs involved, causing observers to raise questions on the completion of the recovery process.
While commending government for the savings as a result of the exercise, an Abuja based lawyer and rights activist, Obo Effanga, described claims to success by the minister as incomplete, without mentioning the number of culprits involved in the fraud.‬
‪”What would serve as a deterent or disincentive for others who may be willing to engage in similar illegal activities if officials in charge of schedules found to have been involved in the fraud are not named and publicly shamed? It is still part of the impunity Nigerians have been talking about; where genuine efforts to tackle corruption in the system are lacking, because of lack of sincerity by government officials,” Mr. Effanga said.‬
‪During the briefing, Mrs. Okonjo-Iweala said government was doing everything possible to ensure that such illegally diverted revenues were recovered from the affected MDAs and their collaborating revenue generation agencies and banks.‬
‪“We had to act fast as revenue generating agencies refused to comply with the provisions of the law requiring them to remit 25 per cent of such funds to the treasury. We pleaded with them; tried to dialogue with them, but it was not working. So we had to take some drastic measures,” she said. “We have so far recovered N34 billion of such monies and have factored it into cash backing for second quarter release for budget 2013.”‬
‪The issue of non-remmitance of revenues into the Consolidated Revenue Fund (CRF) had generated much fury after the National Assembly also raised the alarm over the financial abuses in the MDAs and the revenue agencies, demanding that the Executive takes steps to thoroughly investigate its findings.‬
‪Consequently, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) engaged 53 consultants to verify and reconcile revenue collection and remittances by collecting banks engaged by the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) between January 2008 and June 2012.‬
‪In the wake of shrinking revenues, the Minister last month threatened to close the affected revenue agencies bank accounts by June 17 if they failed to remit the revenues to the CRF.
But, she lamented that despite the warning the unwholesome practices were persisting adding that “rather than comply, the agencies and banks, through their lawyers have engaged in all manner of legal subterfuges to ensure that monies due to the Federal Government were not remitted.‬
‪On the IPPIS, the minister said government was planning to fully implement by extending from the current 215 MDAs to the other 321 MDAs yet to be captured in the electronic systems by December this year.‬
‪On GIFMIS, the Minister disclosed that 58 per cent of the federal budget was being implemented through the platform, adding that by the end of the year, the entire budget implementation would be done through the platform to ensure accountability, adding that the mileages covered so far were major achievements that have assisted in curbing corruption and the introduction of fake names into the payroll and also modernise the way government handles its finances.‬
‪The Minister said a committee to look at what has already been done by identifying MDAs already connected and look at how the system was functioning and ascertain issues that need to be rectified before expanding.‬
‪“The committee needs to have an implementation plan and a timeline to ensure that MDAs are connected y December 2013. They are also to identify savings made in the course of the implementation,” Ms. Okonjo-Iweala said.‬
‪The Accountant General of the Federation and a member of the committee, Jonah Otunla,said GIFMIS was introduced with the aim of improving the acquisition, allocation, utilisation of public finance, adding that the idea of the committee was a good platform in modernising government finances and reducing incidences of government borrowing.‬
‪”Before now, government would have balances idling away in bank accounts by slow spending MDAs and government would go to borrow, these same funds for fast spending MDAs. But, with the introduction of GIFMIS, there are savings in terms of efficient cash handling as instead of government going to borrow money, it now oversees all capital votes and disburses as the need arises”, Mr. Otunla said.‬
Premiumtimes

NLC president, Abdulwaheed Omar

The labour union condemned the government’s unwielding stance.
The Nigeria Labour Congress, NLC, on Monday threatened to join the Academic Staff Union of Universities, ASUU, in solidarity strike if the Federal Government fails to address the ASUU demands.
The NLC President, Abdulwaheed Omar, made the threat at the opening ceremony of the “2013 Rain School” in Uyo.
The university lecturers have been on strike for over three weeks, paralysing activities in public universities. The lecturers want the government to implement the agreements both parties have had since 2009.
“We call on the Federal Government to have meaningful dialogue with ASUU with a view to implementing the agreement. The State Governments should equally obey the law and pay minimum wage to teachers and the local government workers as well as the 27.5 per cent teacher’s enhanced salaries.
“Should these strikes persist, workers of Nigeria will not hesitate to join them in solidarity,” he stressed.
Mr. Omar said the modules of the Rain School were designed to train members of affiliate unions and state councils of the NLC.
“This is in order to equip them with necessary skills to empower and protect their rights at workplace,” he said$
He said that the theme of the 2013 Rain School, “Strengthening the trade Union for Defence of Workers Rights,” was imperative due to the obvious violation of workers’ rights in the workplace and in the larger society.
The Chairman of the Akwa Ibom NLC chapter, Unyime Usoro, commended the leadership of the congress for keeping to its promise to make Uyo the permanent host of the school.
“On our own part, we intend to ensure that the standards set five years ago that led to the permanent hosting right is not lowered. It is significant to note that the government of Akwa Ibom has graciously approved the building of the permanent block for Rain Schools here in Uyo to gather for the training needs of the union leaders across the nation,” he said.
(NAN)

The group said China has been less than transparent in its dealings with Nigeria.
The Conference of Nigerian Political Parties, CNPP has warned President Goodluck Jonathan to beware of “Chinese quest for neo-colonialism in Africa” as the president pushes Nigeria into stronger economic relations with the Asian nation.

The group said the history of colonialism remains unchanged and that every colonial master, whether British, American or Chinese, will always attach strings to aids given to smaller nations, to fuel their domestic economic growth.

The group said President Jonathan should be “cautious, less hasty or desperate” in his dealings with the Chinese; “especially now that President Barak Obama seems to have not extended olive branch to his regime”.

The call came after President Jonathan paid a state visit to China Wednesday, in a move seen as an attempt to refocus Nigeria’s drive for foreign assistance.

CNPP advised the Jonathan administration to tailor the country’s foreign policy objective to achieve long term objectives.

“…our foreign policy objective should be structured for the long term and not short term goals, while we remain introspective in the utilization of our natural resources,” the group said in a statement signed by its spokesperson, Osita Okechukwu.

“For the avoidance of doubt, some are celebrating the tremendous rise of China-Nigeria bilateral trade relations from $2 billion in 2002 to $13 billion in 2012; forgetting that Chinese cheap and fake products not only dominate the trade but stifle our local industries,” the statement said.

While on a state visit to China on Wednesday said, President Jonathan had said “Beyond trade, China has been instrumental to supporting Nigeria with financing arrangements and investment in strategic infrastructural projects like rail, road and free trade zones, among others’.

CNPP said a cursory review of few Chinese investment in Nigeria’s strategic infrastructure shows that the Chinese have been less than transparent.

The group recalled that in 2006, Olusegun Obasanjo, then president awarded the narrow gauge 1,315km Kano-Lagos Rail Track to China Civil Engineering Corporation, CCEC at a whopping cost of $8.3 billion, while the Chinese awarded 4,000km

Beijing-Lhasa modern gauge to the Canadians and Germans at $4.2 billion.
It also said that in March 2006, Abuja Fast Rail was awarded to Guandong Xinguang International Group at $2.5 billion, adding that, ZTE was awarded in 2007, $750 million CCTV Project for major cities in the country to curb insecurity.

CNPP added that “NigComSat awarded to the Chinese was blown away by the wind”.
It therefore said, “in dealing with the Chinese neo-colonialism, we must look before we leap for not only were the projects awarded at prohibitive cost, but none has been completed,” it said.
Premiumtimes

Minister of Petroleum, Diezani Alison-Madueke, GMD, NNPC, Andrew Yakubu

House of Representatives Committee on Finance, Wednesday, rejected N384.9 billion operational loss recorded by the Nigerian National Petroleum Corporation, NNPC, between 2009 and 2011.

The committee, which was probing Federal Government’s agencies’ remittances of surplus to the Consolidated Revenue Fund, CRF, within the period under review, expressed dismay that NNPC demanded to be exempted from remitting certain parts of its operating surplus to the CRF.

NNPC had argued that the exemption should be on the basis that it had never made profits, saying that it lost crude oil to vandalism totalling 2,316,281 barrels in 2010; 6,391,311 barrels in 2011 and 3,045,625 barrels in 2012.

The total barrels lost between 2010 and 2012 was put at 11,753,217.

According to NNPC, financial losses recorded in the upstream, midstream and downstream sectors amounted to N298 billion in 2009, N110.9 billion in 2010 and N37.6 billion in 2011.

Group Executive Director, GED, Finance and Accounts, Beard Otti, who addressed the committee, said that the NNPC was not in any position to remit any surplus amount to the CRF.

He said: ”Quantum of losses are indicative of crude and pipeline vandalism and unrecovered subsidy claims. It seems as if we are only working for thieves and vandals. Our business model defies description.”

However, the Abdul Jubrin-led committee questioned the integrity of the report as it was entirely internally computed without any input from external or a credible professional auditing firm.

The Committee further noticed inconsistent figures in the 10 percent gross margin presented against the breakdown that overshot the 10 percent by 1.17 percent.

While expressing its readiness to employ the services of professionals to investigate the NNPC’s report, it requested the corporation to finish it with details of its tax remittances.

The Committee asked the corporation to furnish it with details and sources of how it had been meeting its operational costs since it had always been operating at a loss.

It asked the corporation to account for what it did with the left over of daily domestic crude allocation, in addition to how it gets funds for the repair of vandalised pipelines since there was no appropriation for it.

The Chairman said: “Apart from issues of vandalism and oil theft presented by the NNPC, are we looking at the issue of inefficiency on the part of the corporation?”

The director’s appeal for three weeks to turn in the corporation’s response to the queries was also turned down by the committee.
Vanguard

OPEC’s share of the world oil market will shrink in 2014 as rising supply of U.S. shale oil gives the exporter group little comfort from the fastest growth in world demand in four years. In a monthly report, the Organisation of Petroleum Exporting Countries forecast demand for its oil in 2014 would average 29.61 million barrels per day (bpd), down 250,000 bpd from 2013 and 770,000 bpd less than it produced in June.

“This would imply a further build in global crude inventories, which currently stand at high levels,” OPEC said in reference to the market outlook for next year. The report is a further illustration that technology for extracting oil and gas from shale is reducing dependence on OPEC. Rising output will make it harder for the 12-member group to keep its own output at high rates without risking a drop in prices below $100 a barrel, its preferred level. OPEC also forecasts a recovery in demand next year as economic growth gathers pace. World oil use will expand by 1.04 million bpd in 2014, the strongest growth since 2010, it said.

But non-OPEC supply, the source of two in every three barrels, is expected to increase by 1.14 million bpd, more than demand, led by further growth in the United States. The U.S. shale boom has already curbed imports from OPEC members such as Nigeria and Algeria. OPEC expects U.S. oil output to rise by 560,000 bpd next year – the biggest rise among non-OPEC countries – to 11.33 million bpd.

“The outlook in 2014 is supported by anticipated healthy onshore tight oil developments, aided by rising investment,” OPEC’s report said. “In 2013, oil drilling activities continue to improve.” After initially downplaying shale, OPEC is looking more closely at its impact. At its last meeting, on May 31 in Vienna, the group’s oil ministers spent some time discussing the issue and set up a committee to study it.

OPEC’s report is the second of this month’s trio of oil supply and demand forecasts to emerge.
Vanguard

Nigeria is likely to take South Africa’s position as the continent’s largest economy within two years, a Reuters poll found on Thursday. Nigeria’s gross domestic product will receive an enormous boost when it is rebased later this year to more accurately reflect changes in the economy over the last two decades. The GDP base in use is from 1990 and fails to capture the technology and telecoms sectors which have emerged since then. The much-delayed rebasing could add up to 50% to Nigeria’s economy, giving it a nominal GDP of around $375bn which is almost the size of South Africa’s.

Strong domestic demand and high levels of agriculture and services activity will see it clinch the title of Africa’s biggest economy within a couple years if current growth rates are maintained. High unemployment and a slowdown in the euro zone, South Africa’s main trading partner, make it vulnerable to losing its number one spot. It is set to grow at just 2.6% this year. It must be noted, however, that while being number one in the continent may boost Nigeria’s profile, South Africa still enjoys a better GDP-per-capita ratio compared to Nigeria, and therefore a slightly better standard of living.

CBN Governor, Mr. Sanusi Lamido Sanusi

The Central Bank of Nigeria is considering a biometric authentication system for transactions that will be carried out on Point of Sale Terminals and Automated Teller Machines.

The move is part of measures aimed at strengthening the payment system under the bank’s cash-less policy initiative.

The Governor of the CBN, Mr. Lamido Sanusi, revealed this on Tuesday in Abuja during the sensitisation of stakeholders on the cash-less Nigeria programme.

Sanusi said the biometric system became imperative in order to enable the bank effectively address safety of customers’ funds as well as avoid losses that might arise owing to compromise of Personal Identification Numbers.

He said if approved, the biometric authentication for PoS and ATMs would be implemented in 2015.

The governor said the central bank had taken steps to gain the confidence of ATM users by strengthening the payment system.

For instance, he said going by statistics, fraud incidences through ATMs and PoS had reduced by 90 per cent.

Sanusi said, “The CBN has taken a giant step to gain the confidence of ATM consumers following the circular enforcing migration from Magstripe type of debit card to chip and PIN type of debit card.

“Statistics show that this effort has reduced the fraud incidences by 90 per cent. Many customers are now embracing the use of electronic channels in their transactions because of near impossible efforts of would-be fraudsters in being able to clone debit cards to perpetrate fraud as it was the case during the pre-migration era.”
The Punch

Minister of Aviation, Stella Oduah

The China Civil Engineering Construction Corporation has pledged to deliver the four international airport terminals it will be constructing in Nigeria in 20 months time.

The airport terminals will be located in Lagos, Abuja, Kano and Port Harcourt.

This is coming as the ministers of Transport and Works, Senator Idris Umar and Mr. Mike Onolememen, have called on the construction company to start investing in Nigeria considering the enormous projects being handled by it in the country.

The President, CCECC, Mr. Yuan Li, disclosed the firm’s resolve to complete the airport terminals in record time when a high-powered delegation of Nigerian government officials paid him a courtesy/facility inspection visit at the corporate headquarters of the company in Beijing on Tuesday.

Li, according to a statement signed by the Special Adviser (Media) to the Minister of Aviation, Mr. Joe Obi, said the quality of the work to be done at the airports would be of the highest international standard comparable to similar projects executed by the company in other parts of the world.

He said the construction of the airport terminals was a special project by the company, adding that it would endeavour to complete the task in record time.

In her remarks, the Minister of Aviation, Ms. Stella Oduah, said she was eagerly looking forward to the signing of the agreement between both countries with respect to enhancing infrastructure development in Nigeria.

She expressed optimism that the construction giant would complete the projects in the next 18 to 20 months.

Oduah said she had no doubt on either the quality of job to be delivered by CCECC or the completion timeline since due diligence was conducted before the Federal Government finally settled for the company.

“When completed, the Nigerian international airports will take their rightful places in the world aviation map and boost Nigeria’s position as the natural hub for commercial aviation business on the African continent,” she said.
The Punch