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Nigeria lose more than $1 billion as result of under-production as OPEC raises oil quotas

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Nigeria could lose as much as $1.085 billion in February if it is unable to meet its production oil quota, which was increased by the Organization of Petroleum Exporting Countries (OPEC) to 1.701 million barrels per day yesterday.

Nigeria has been able to pump just over 1.2 million per day on average in recent months, causing the country to lose desperately needed foreign exchange (forex).

With the aforementioned production volume, the country was expected to lose about 500,000 barrels per day next month, totaling 15.5 million barrels.

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It would be worth about $1.085 billion if multiplied by a pessimistic oil price of $70.

According to the Nigerian Upstream Regulatory Commission (NURPC), the country was only able to pump 1.23 million barrels per day in August, 1.24 million barrels per day in September, 1.22 million barrels per day in October, and 1.27 million barrels per day in November, according to the latest figures.

However, with OPEC increasing Nigeria’s previously 1.683 million bpd to 1.701 million bpd in January 2022, meeting the target next month will be difficult, if not impossible.

The impact of the severely hampered production is expected to be felt by Nigeria’s three tiers of government, which rely heavily on oil revenues for survival.

For example, the Nigerian National Petroleum Company (NNPC) Limited was only able to remit N10.5 billion to the federation account last month, which was only 8.5 percent of its projected N122.7 billion.

However, the national oil company blamed the decline in production on the inability to restart oil wells that were shut down in 2020 after OPEC forced member countries to cut production.

It also listed issues with host communities, vandalism, constant force majeure on major assets, and technical issues that result in shutdowns as some of the industry’s challenges.

The main culprit, however, is Nigeria’s aging upstream infrastructure, which has been neglected for years due to a lack of investment in expanding and modernizing the assets.

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Despite the fact that the Minister of State for Petroleum, Mr Timipre Sylva, and the NNPC’s Group Managing Director, Mallam Mele Kyari, set a deadline of 2021 to improve Nigeria’s production and meet the quota, that deadline has not been met.

The producers’ group stated in a statement issued after the 24th OPEC and non-OPEC ministerial meeting on Monday that it was sticking to the gradual plan to unwind in light of current oil market fundamentals and consensus on its outlook.

“(We) confirm the production adjustment plan and monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC ministerial meeting, as well as the decision to adjust monthly overall production by 0.4 million barrels per day for the month of February 2022,” it said.

OPEC also urged its members, such as Nigeria, to meet their production quotas and urged those who had exceeded their allocation to reach an agreement on a compensation plan by June of this year.

“We emphasize the critical importance of full conformity and the compensation mechanism, taking advantage of the compensation period extension until the end of June 2022.”

“Compensation plans should be submitted in accordance with the 15th OPEC and non-OPEC ministerial meeting statement,” it continued.

In the meantime, oil prices have risen about 2% in response to the news, despite the cartel’s assertion that the Omicron coronavirus variant will have only a minor impact on demand.

Brent crude, Nigeria’s benchmark, was up $1.48, or 2%, to $80.48 a barrel, the highest since November, while US West Texas Intermediate (WTI) crude was up $1.48, or 2%, to $77.56 a barrel.

Furthermore, global manufacturing activity remained strong in December, implying that Omicron’s impact on output was minor.

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The supply shortage caused by members’ inability to meet production targets could worsen, as Libyan output is expected to fall by 500-600,000 bpd in the coming weeks, more than offsetting the planned monthly increase in OPEC+ output.

Due to maintenance on a main pipeline, the country’s oil firm said on Saturday that oil output would be reduced by 200,000 bpd for a week, adding to disruptions two weeks ago when militia blocked operations at the Sharara and Wafa oilfields.

Sanusi Barkindo, the Secretary General of OPEC, stated before the meeting that the outlook for 2022 correlates with a generally positive trajectory in terms of market fundamentals.

While there were some concerns, particularly about coronavirus mutations, he added that there were signs that the global economic recovery, which was aided by the contribution of the ‘Declaration of Cooperation’ participating countries to oil market stability, could continue in the coming year.

In Kaduna, Bandits kill 9 villagers and steal 250 rams, troops kill two

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In attacks across Kaduna State’s Igabi and Zaria Local Government Areas, bandits killed nine villagers, injured five others, and stole over 250 animals.

The bandits first attacked Kudu da Gari settlement in Sabon Birni, Igabi LGA, killing seven residents and critically injuring four others, according to reports.
A bandit shot one Auwal Koshe dead and stole about 250 goats and sheep at Ruggar Goshe, a herders’ settlement on the outskirts of Kangimin Sarki Village, Rigachikun, Igabi LGA.

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The bandits reportedly attacked another herders’ settlement in Filin Idin Barebare, Zaria LGA, killing one Abubakar Mohammad and injuring another Abubakar Aliyu with gunshot wounds to his ribs.

The bandits then robbed the settlement of an unknown number of cattle.

In a statement, the Commissioner for Internal Security and Home Affairs, Samuel Aruwan, said troops neutralized two bandits on the outskirts of Tumbau village, Kerawa, Igabi LGA.

The bandits were on their way to the Malul Forest when the troops caught up with them, he said.

“Expressing his sorrow over the attacks, Governor Nasir El-Rufai prayed for the repose of the souls of those who died and sent his heartfelt condolences to their families.” “The Governor expressed his best wishes for the injured,” he said.

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According to reports, bandits attacked various locations across the state on Sunday, killing about 7 people and kidnapping over 40 villagers.

President Buhari appoints Doyin Salami as Chief Economic Adviser.

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Dr. Doyin Salami has been appointed as President Muhammadu Buhari’s Chief Economic Adviser.

This information was revealed in a statement released by Femi Adesina, the Special Adviser to the President on Media and Publicity, on Tuesday in Abuja.

Dr Salami was the Chairman of the Presidential Economic Advisory Council (PEAC) until his appointment, according to Adesina, and is expected to address all domestic economic issues and present views to the president.

“A 1989 doctorate graduate in Economics from Queen Mary’s College, University of London, Doyin Salami, 59, is Managing Director and Head Markets Practice at KAINOS Edge Consulting Limited, and member of the Adjunct Faculty at the Lagos Business School (LBS), Pan-Atlantic University, where he recently attained the rank of Senior Fellow/Associate Professor,” according to the statement from Adesina.

“The President’s Chief Economic Adviser is expected to address all domestic economic issues and present views to the President; closely monitor national and international developments, trends, and develop appropriate policy responses; and develop and recommend to the President national economic policies to foster macroeconomic stability, promote growth, create jobs, and eradicate poverty, among other things.”

Salami is a senior lecturer at Lagos Business School, where he teaches about the business environment’s economic environment.

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He was a member of the Central Bank of Nigeria’s Monetary Policy Committee and the Federal Government’s Economic Management Team, as well as an executive director of the African Business Research Limited in the United Kingdom.

Dr. Salami works as a consultant for the Department for International Development (DFID), the World Bank, the United Nations Industrial Development Organization (UNIDO), and the United States Agency for International Development (USAID) (USAID).

NYSC WELCOMES DG WITH HIS NEW RANK

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It was a festival of a sort at the National Directorate Headquarters of the National Youth Service Corps (Yakubu Gowon House, Maitama-Abuja today, Tuesday, 4th January 2022 as members of staff comprising Directors, Deputy Directors, Assistant Directors and other categories including security, cleaners, and Corps members thronged out to welcome their Director-General, Major General Shuaibu Ibrahim, who came to the office for the very first time since his decoration with a new rank.

The unceremonious welcome parade which included a quarter guard saw the officers queued up from the gate to the reception of the headquarters building.

Amidst cheers, the staffers who could not hide their elation over their boss’ elevation to the pinnacle of his career hailed him for the unquantifiable tremendous achievements recorded during his two and half years in office.

While exchanging pleasantries with everyone that was on the long queue one after the other, General Ibrahim thanked them for their enormous contributions to the success recorded by his administration so far.

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It maybe recalled that the news of the Director General’s upliftment from the rank of Brigadier General to Major General filtered the air in the 3rd week of December, 2021 and was subsequently decorated on Thursday the 30th day of the same month.

President Buhari appoints Doyin Salami as Chief Economic Adviser

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Dr. Doyin Salami has been named President Buhari’s Chief Economic Advisor (CEAP).

This is the first appointment of a Chief Economic Adviser for President Buhari since he took office on May 29, 2015.

Chairman of the Presidential Economic Advisory Council until his recent appointment, Dr Salami was the President’s Media Advisor, Femi Adesina said on Tuesday (PEAC).

Salami, 59, was Managing Director and Head Markets Practice at KAINOS Edge Consulting Limited, and Adjunct Faculty at Lagos Business School (LBS), Pan-Atlantic University, where he recently achieved the rank of Senior Fellow/Associate Professor.

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The Chief Economic Adviser to the President is expected to address all domestic economic issues, present views to the president, and develop appropriate policy responses.

Assist the president in formulating national economic policies that promote macroeconomic stability, job creation and poverty eradication.

Kuwaiti oil executive al-Ghais replace Nigerian Mohammed Barkindo as OPEC Secretary-General

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Top oil-producing nations named Kuwaiti oil executive Haitham al-Ghais as the next OPEC Secretary-General on Monday (OPEC).
Al-Ghais will succeed Nigerian Mohammed Barkindo, who led the organization for two terms.

Al-Ghais is the Kuwait Petroleum Corporation’s Deputy Managing Director (KPC).
His extensive industry experience includes work for the state oil corporation in Beijing and London.

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Al-Ghais was appointed by acclamation and will begin his three-year term on August 1.
In 2020, the group drastically reduced oil output due to the coronavirus pandemic.
OPEC and its ten allies, including Russia, gradually reopened the tabs last year, and prices rose.
The Vienna-based organization has 13 members, led by Saudi Arabia, that fix output to control prices, dubbed OPEC+.
OPEC+ has so far resisted pressure from major oil consumers like the US to increase output.
On Tuesday, all 23 OPEC+ members will meet via videoconference to keep the pace and modestly boost output.

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OPEC’s general secretary has no executive power but is the public face of the organization, which includes Saudi Arabia and Iran.
Faced with the pandemic, the group said Barkindo was “instrumental in expanding OPEC’s historical efforts to support sustainable oil market stability through enhanced dialogue and cooperation with many energy stakeholders.”

Police arrested 14-year-old maid for allegedly kidnapping her boss’s two-year-old

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The Ogun State Police Command has arrested a 14-year-old housemaid for allegedly kidnapping her mistress’s two-year-old son.

The suspect was arrested on Monday in Sagamu, according to the Command’s spokesman, Abimbola Oyeyemi.

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Oyeyemi said Nwafor told the police she saw a 14-year-old girl with a sick two-year-old boy in Yaba Lagos on December 22, 2021.

That the little girl was begging for alms on behalf of her younger brother and their parents died in a gruesome accident in December 2020, Oyeyemi said.

“Out of compassion, the woman took them both to Sagamu to care for the boy’s deteriorating health.

“But as soon as the boy recovered, the suspect wanted to take him alone to Imo state, which made the woman suspicious, prompting her to call the cops.

“DPO Sagamu division, CSP Okiki Agunbiade dispatched his detectives to question the girl.

Isiala/Mberna local government area of Imo State, Oyeyemi said the girl confessed to being a maid to the boy’s mother and leaving with him on December 19, 2021.

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“She stated that she took the baby from church during Sunday school, and that the Sunday school teacher knows her and the baby’s mother.

Her reason for begging for alms was to raise transport fare to Imo State, the PPRO said.

Unknown gunmen attack IRT team member’s residen, killing one

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Unknown gunmen reportedly invaded the residence of ASP Aliyu Umar on Monday.
During the attack in Kofar Kona, Zaria Local Government Area, Kaduna State, the attackers killed one person and injured another.

The Inspector-General of Police Special Intelligence Response Team member whose home was attacked (IRT),

The gunmen reportedly stormed the area in large numbers, firing sporadically at the officer’s home.

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In a statement released on Tuesday, IGP team member Umar said the gunmen seemed to have targeted his house.

He said the terrorists killed Abubakar Aliyu and shot an elderly man named Abubakar in the chest, sending him to the hospital.

“My house was full of over twenty people, including my Egyptian friend, my elderly mother, and my siblings,” Umar said. When I heard gunshots, I opened my front door expecting police officers on patrol, but I saw three people with guns and ran back inside, shutting and locking it.”

The ASP said the gunmen shot holes in his house door while trying to enter the area.

“By Allah, none of my family was affected,” he said. However, one Abubakar Sani was killed and another, Abubakar, was shot in the chest and taken to hospital.

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Umar added that the bandits robbed his Fulani neighbours of an unknown number of cows just outside Zaria’s Kodak Kona gate.

The ASP assured that calm has returned to the area after a combined team of security agents rescued them.

Pinnick claims the Super Eagles can win AFCON in Cameroon

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Despite attempts by European clubs to prevent Nigerian and other African players from representing their countries at the upcoming Africa Cup of Nations in Cameroon, NFF President Amaju Pinnick believes the Super Eagles can win the tournament.

Pinnick stated in “The Morning Show” yesterday that the Super Eagles can beat any of the 24 Cameroonian teams in the African football showpiece.

“Nigeria can win in Cameroon.” Nigeria is the tournament’s most feared team. When the Super Eagles prepare for a tournament, they shock the world and win. “Cameroon 2021 will not be an exception,” he said in his first interview of the year.

Pinnick insisted God loves Nigeria. “Our preparations may appear lackluster, but when our players don the green and white jerseys, everything changes.”

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He implied that interim handler Austin Eguavoen was working hard to deliver.

The best Coach is Austin Eguavoen. “He understands footballers’ mentality and is doing his best to bring out the best in our players,” said Pinnick.

But the NFF President admitted Eguavoen was facing the usual challenges as a Super Eagles coach.

He is being pressured by so many scouts and players’ agents to pick their players. They say he can ‘chop’ on the Super Eagles interim coaching job by compromising. But the Eguavoen I know has rebuffed them and is doing what he believes is best for the Eagles’ success,” revealed the NFF Boss.

The NFF prefers foreign coaches because of the distractions and unnecessary pressure.

This sort of nonsense with foreign coaches is unheard of, Pinnick noted.

“Four of the Super Eagles players have recovered and now test negative for Covid,” said NFF President Peter Odemwingie. “The fifth is awaiting the result of his last test yesterday.”

The new Nigerian coach, Jose Peseiro, excites Pinnick. “Jose (Peseiro) knew all our players before taking over the Eagles job. When we were talking before, I was amazed at his knowledge of every Super Eagles player.”

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He dismissed critics of Peseiro’s appointment as Nigeria’s coach. José Peseiro is a top-notch coach. He comes to Nigeria knowing our players and our game. The last game defines a coach. In addition to living in Abuja, the Portuguese coach will also have a guest house in Lagos, Pinnick revealed.

To prevent African players from representing their countries in AFCON, Pinnick pledged that CAF would legislate against European club sides.

The Super Eagles will leave Abuja on January 5 for Garoua, Cameroon, where they will face Egypt on January 11.

Bandits kill seven members of the same family, 17 others in Kaduna

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On December 4, suspected bandits attacked Sabon Birnin Birnin village in Igabi Local Government Area of Kaduna State, killing seven members of the same family.

Internal Security and Home Affairs Commissioner Samuel Aruwan said security agencies are working to contain the attacks and get an update on casualties.

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Locals say that on Monday night, a large group of bandits invaded the community and began shooting randomly, killing family members.

The incident has yet to be reported to the cops. But a village leader, Bello Musa, told Channels Television that many residents have fled their homes, fearing attack or death by the bandits.

He urged the Federal Government to send more troops to Igabi and other troubled areas in Kaduna State to protect the people.

The gunmen attacked 13 other villages in Kerawa ward, Igabi local government, killing 17 people.

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According to a local resident, the attacks occurred simultaneously in the villages.