Daily Watch – TCN squeezes Nigeria’s neighbours, NLNG enters 20 year deal with Oando

Nigeria’s merchandise trade grew by 6.8 percent in Q3 2019 compared to Q2’19, and 1.33 percent relative to Q3’18. The value of total imports, according to the data, decreased by 2.70 percent in Q3’19 compared to Q2’19, and 7.47 percent relative to the corresponding quarter of 2018. The breakdown showed that in Q3’19, the value of imported agricultural products was 4.01 percent lower than the performance in Q2’19 but 7.21 percent higher than Q3’18. The value of raw material imports decreased by 4.64 percent in Q3’19 relative to Q2’19 but increased by 16.81 percent when compared to Q3’18. The value of solid minerals imports was 31.73 percent lower than the value in Q2’19 but 7.05 percent higher than the value recorded in Q3’18. The value of energy goods imports increased by 243.92 percent in Q3’19 and 286.91 percent relative to Q3’18 due to increased import of other wood charcoal, electrical energy and charcoal of bamboo. The NBS said that the value of imported manufactured goods grew by 12.46 percent in Q3’19 against the value recorded in Q2’19 but decreased by 3.48 percent when compared to Q3’18 adding that the value of other oil products imported decreased by 41.85 percent in Q3’19 against the level recorded in Q2’19 and 54.59 percent when compared to Q3’18. The value of total exports in Q3’19 increased by 15.02 percent to ₦5.28 trillion, compared to the level recorded in Q2’19 and 8.97 percent when compared with its value in Q3 2018, the report said. The value of agricultural exports decreased by 42.69 per cent in Q3 2019 relative to Q2 2019 and 7.30 per cent when compared to Q3 2018. Analysis of trade by region showed that Nigeria exported most products to Europe ₦1.86 trillion or 35 percent, followed by Africa at ₦1.45 trillion or 27.6 percent, Asia ₦1.36 trillion or 25.74 percent, America ₦598.3 billion or 11.3 percent and Oceania ₦8.1 billion or 0.1 percent. Within Africa, exports to ECOWAS member states was worth ₦1.14 trillion, or 21.56 percent of total exports. The NBS said that the value of exports to Africa and ECOWAS was notably high in Q3’19 due to exports of Cable sheaths of iron and submersible drilling platforms exported to Ghana.

Oando and NLNG have entered gas supply agreements that are expected last up to 20 years. Oando said that it sealed a renewal of gas supply deal for the existing Trains 1-3 for a term of 10 years and gas supply for the impending Train 7 for a term of 20 years. The deals were signed by the upstream subsidiary, Oando Energy Resources. The NAOC Joint Venture (JV) made up of NNPC/NAOC/Oando has a total supply obligation of 850MMScf for Trains 1–6 under the terms of the agreement. The JV is specifically responsible for supplying a Daily Contract Quantity of 344.6MMscf/d for Trains 1-3 and 505MMscf/d for Trains 4-6, making the NAOC JV the second-largest gas supplier to NLNG, stating that the first GSA is a renewal of the gas supply terms for Trains 1-3. Oando noted that in addition to the JVs current supply to trains 1-6 and under the terms of the second agreement, the JV will be responsible for supplying a DCQ of 294.7MMScf/d for Train 7, adding that this is expected to come on stream in 2024, and will bring the JV’s total supply obligation to 1.1Bcf. The NLNG vehicle is expected to support the FG’s efforts to grow reserves, boost the country’s gas footprint and market share in the global LNG market and in-turn positively develop the Nigerian economy.

A Nigerian mobile police officer was among 14 people killed by the Islamist insurgents, Boko Haram in Borno State Thursday. Civilian militia leaders told the AFP that the ISWAP faction in more than a dozen pickup trucks fitted with machine guns attacked a security post manned by a civilian militia group in the village of Mamuri. According to civilian militia leader, Babakura Kolo, terrorist members of ISWAP attacked men of the militia group at about 2000 hours in 14 trucks which resulted in an hours-long fight. The militia ran out of ammunition and that gave the insurgents the upper hand, Kolo said. Boko Haram had claimed the attack Friday, saying that its fighters had killed 15 “pro-Nigerian government militia” and captured two all-terrain vehicles along with weapons and ammunition, according to SITE Intelligence, which monitors jihadist websites worldwide. Hundreds of vigilantes and local hunters from the region have been sent in recent months to the town of Gubio, near Mamumi, 80 kilometres (50 miles) north of Maiduguri to guard against increasing jihadist attacks. The redeployment of vigilantes to Gubio accompanies a new military strategy that has pulled soldiers back into “super camps.

The Transmission Company of Nigeria has asked its international electricity customers to pay their outstanding power bills totalling $9 million. According to the managing director of TCN, Usman Mohammed, the countries, Benin, Niger and Togo, will not be allowed to cheat Nigeria. Mohammed, who is also the chairman of West African Power Pool, said the international electricity customers, which Nigeria supplies, have accumulated a bill of over $100 million since he assumed office. He added that the government supplies electricity to contracted international customers and that those who are defaulting in payment will be disconnected. Both Benin and Togo owed Nigeria more than $100 million when Mohammed became the MD TCN, but the debt now remains $7 million, he said. Niger owes less than $2 million. Nigeria has currently restricted supplies to only their contracted ones as the country is insisting they pay all their outstanding bills before it reconnects them and increases the off-take, Mohammed said. The Nigerian Electricity Regulatory Commission said in its 2019 report that the international customers refused to pay for the energy invoices issued to them.