Nigeria lost at least $16 billion in ten years, between 2008 and 2017, due to non-review of the 1993 Production Sharing Contracts with oil companies. In a report, “The Steep Cost of Inaction”, jointly done with Open Oil, a Berlin-based extractive sector transparency group, NEITI said that the losses could be up to $28 billion if, after the review, the country was allowed to share profit from two additional licenses. The report shows that between 1998 and 2005, total production by PSC companies was below 100 million barrels per year while Joint Ventures companies produced over 650 million barrels per year. By 2017, total production by the PSC companies was 305.800 million barrels, 44.32 percent of the total production while JV companies’ was 212.850 million barrels, representing 30.84 percent of the total production. According to NEITI the review was important for the country because oil production from PSCs had surpassed production JV with PSCs now contributing the largest share to federation revenue.
The Federal Airports Authority of Nigeria says that some carriers have agreed to divert some flight operations to new terminals at Port Harcourt International Airport, and the Nnamdi Azikiwe International Airport Abuja, as part of moves to decongest Lagos operations. The move is a part of efforts by the FAAN to put the new terminals to profitable use. FAAN says that Turkish Airlines would soon commence scheduled flight operations from PHIA, while Emirates Airlines would run daily flights from NAIA. In addition, Air Peace would from April, do direct flight to Dubai from PHIA. General Manager, Corporate Affairs, FAAN, Henrietta Yakubu, said the move was necessary to redistribute traffic from Lagos to other airports in the country. Yakubu said the carriers could use state-of-the-art facilities in other aerodromes across Nigeria, adding that FAAN is determined to improve the experience of air travellers nationwide. The recently opened Abuja terminal of the NAIA has an annual capacity of 15 million passengers, while Port Harcourt has capacity of five million passengers. Yakubu added that Kano Airport, with another five million annual capacity, would come on stream in the next two months.
A Nigerian firm, Pan African Towers, has entered into a ₦7.2 billion ($20 million) telecoms infrastructure investments deal with Canadian firm, Watt Renewable. Under the terms, Watt Renewable will provide alternative energy solutions like solar and other renewable to all towers owned and managed by PAT in Nigeria, to help the latter reduce exposure by as much as 50 percent. PAT CEO, Wole Abu, said that the deal is significant, because “it’s a milestone in our journey of innovation, service delivery, and pushing Nigeria to the broadband target. This is at the forefront of the Nigerian Communications Commission’s agenda for setting up Infrastructure Company.” PAT manages about 1,000 towers in Nigeria, which will double by year end. CEO/Founder, Watt Renewable, Oluwole Eweje, said the partnership is an infrastructure based one, adding that the Nigerian subsidiary will provide alternative power supply to PAT, to help it and the MNOs cut expenses on electricity generation by half. The Director, Investor Relations, Watt Renewable, Sherisse Alexander, noted that for improved services, partnership between telecoms operators and power firms are critical to the sector. He said the funding is coming largely from abroad, because it is still difficult to raise capital from within because of low investor confidence, among others. Alexander, who hinted that there will be discussions with other tower operators in the country including HIS, PTY, and even the telcos, cited the ability of investors to mitigate risks, getting used to the environment, acquisition cost, among others as some of the challenges confronting in Nigeria.
The amount spent by the FG on the importation of petrol rose by nearly 50 per cent to ₦2.95 trillion last year. NBS data shows that the country spent ₦1.97 trillion on petrol imports in 2017, ₦1.63 trillion in 2016, and ₦1.14 trillion in 2015. Petrol imports accounted for 22.4 percent of Nigeria’s total imports in 2018, up from 20.6 percent in 2017, 18.4 percent in 2016 and 17 percent in 2015. The NNPC has been the sole importer of petrol into the country for more than a year as private oil marketers stopped importation due to a shortage of foreign exchange and increase in crude oil prices, which made the landing cost of the product higher than the official pump price of ₦145 per litre. Petrol imports, which averaged 56.5 million litres per day in January, jumped to a high of 86.4 million lpd in February, according to the data obtained from the Pipelines and Product Marketing Company, a subsidiary of the NNPC. It stood at 66.8 million lpd in March, 70.7 million lpd in April, 36.7 million lpd in May, and 34.5 million lpd in June. It was 36.5 million lpd in July, 58.4 million lpd in August, and 57.8 million lpd in September. Data from the PPMC and the DPR showed that petrol import averaged 55.1 million litres per day in the first nine months of last year, compared to 48.5 million lpd in the same period in 2017. Petrol import averaged 49.2 million lpd and 49.8 million lpd in 2015 and 2016 respectively.