Business
Oil Reserve Base: Stakeholders Express Concern
There are fears in some
quarters that the country’s exports in May could fall as low as around 1.59 million barrels per day (bpd) occasioned by a force majeure on forcados grades.
Our source reports that exports of Okwori grade were not being expected in May due to maintenance even as the Ebok grade would not load any cargooes.
Although traders say the development would likely be temporary.
One trader and term buyer of Nigerian crude said that buyers were probably hiding and the differentials may fall and even encourage sales.
However, the recent admission by the Department of Petroleum Resources (DPR) to the effect that reserves dropped to 35 billion barrels has received fears from stakeholders.
They say the delay in the passage of the Petroleum Industry Bill P1B which was still in the National Assembly was responsible for fears expressed in some quarters that the industry was heading toward a halt as evident in the absence of major projects’ implementation.
However, the Group Managing Director, Nigerian National Petroleum Corporation, (NNPC) Andrew Yakubu in a recent statement said the quest for Nigeria to grow its reserves would be given priority in the PIB.
He said this would be achieved through a robust arceage management system that would be closely monitored by the Upstream Petroleum Inspectorate to ensure the release of acreages that have been held over time without activity.
“Said he, contrary to some widely held views that fiscal regime is the cause of low exploration activity, rather it is the lack of open acreage and limited funding in the existing joint ventures that is limiting exploration activity.
The NNPC boss said the intended new acreage management system would eventually release new acreage for exploration and increase the level of activity in the petroleum sector.
There are also indications from oil multinationals that the reserves may continue on a downward trend for some years, a situation that have forced them to adopt a wait and see strategy even as they expect unfavourable fiscal terms in the PIB.
However, an industry expert, Emi Membere-Otaji has expressed teh view that the nation was not making new investments which was crucial in replenishing reserve.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.