Business

Reps Query FG’s N177bn Unauthorised Bonds

Published

9 years ago

November 29, 2017

The House of Representatives has queried the unauthorised issuance of N177 billion bonds by the Federal Government.
The bonds were initially included by the Ministry of Budget and National Planning in the 2017 Budget, as part of the government’s effort to pay off N2 trillion owed local contractors.
It was however discovered to have been issued without the approval of the National Assembly.
The revelation, which came to light during the briefing of the House Joint Committee on 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) by the Executive arm of government was promptly challenged by the Chairman of the House Committee on Aids, Loans and Debt Management, Hon. Adeyinka Ajayi.
Members of the Committee which included Committees on Finance, Appropriation, Aids, Loans and Debt Management, Legislative Budget and Research and National Planning and Economic Development, instantly demanded to know from the Executive when the bonds were issued, the amount and who authorised the issuance.
Present at the session were the Ministry of National Budget and Planning, the Federal Inland Revenue Service (FIRS), the Central Bank of Nigeria (CBN) Debt Management Office (DMO), Nigeria Customs Service (NCS), Nigerian National Petroleum Corporation (NNPC), Budget Office and Department of Petroleum Resources (DPR).
Adeyinka while putting the issue in context said: “I noticed there was a document submitted by the Ministry of Budget and National Planning. For 2017, there was a provision for N177 billion to retire maturing bonds issued to local contractors.
“By that nomenclature, the bonds have been issued for you to want to retire it. The Parliament does not recollect the programme. Yes, we recollect a policy statement that we want to issue promissory notes for local contractors’ debts so that can liquidate it to make money, create jobs and return people to their jobs.
“That was a policy decision, but when you say to retire maturing bonds, that means those bonds have been issued. When were they issued? How much was issued? Those were the questions?”
The lawmaker said the explanation of the Director- General of the Budget Office, Ben Akabueze that the money was a projection of what the administration is expecting at the maturity of the bond when they would be issued, was untenable.
He said because the bonds have been issued, the debts have become a liability of Nigeria. It is necessary for the National Assembly to be aware and approve it before the Minister of Finance signs off on that guarantee.

Business

Pipelines Set To Ease Permian Natural Gas Glut

Published

45 minutes ago

July 27, 2026

The Tide

The regional price of natural gas produced in the Permian, the top U.S. oil basin, was negative for most of the first half of the year.

Rising associated gas output from oil-targeting wells has had nowhere to go. Producers had to either flare the gas, within allowed limits, or pay to get rid of what many Permian players see as an undesirable by-product of the valuable crude.

For years, the key constraint to local gas prices has been the insufficient pipeline takeaway capacity, which hasn’t grown in lockstep with the soaring gas production from oil-directed rigs as operators boost output in response to higher oil prices.

As a result, the natural gas spot price at the Waha hub, the regional pricing benchmark reflecting Midland-area gas production and pipeline capacity constraints, averaged -$2.19 per million British thermal units (MMBtu) in the first half of 2026.

The Waha price hit a record low of -$7.95 at the end of April, over $10 per MMBtu lower than the national benchmark at Henry Hub of about $2.70 per MMBtu at the time.

However, the Waha hub price turned positive in June and has held above zero for more than a month, thanks to the start-up of the expansion of the Gulf Coast Express Pipeline (GCX) and Energy Transfer’s new Hugh Brinson Pipeline, which began moving gas but whose full capacity will not be reached until March 2027.

“The route is designed to move Permian and Midland Basin gas east from Waha and provide access to East Texas, the Katy Hub and Gulf Coast demand markets, including LNG export facilities, power plants, storage assets and industrial customers,” East Daley Analytics said in a note last week.

Aegis Hedging commented last week that “Analysts have been reporting that producers who were curtailing volumes, either shut in or flaring, have started to bring back those molecules as new pipeline capacity comes online.”

The new capacity will not solve the Permian excess gas problem at once. It will take several quarters for the current constraints to go away, Permian-focused oil and gas operators say.

But new constraints could emerge if the Strait of Hormuz crisis drags on and keeps oil prices elevated, encouraging additional oil drilling in the Permian, where most of the gas is an associated by-product and not the primary target of the operators.

Pipeline developers plan to bring 44.9 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity online in the United States in 2026 and 2027. Of these capacity additions, more than 66%, or 29.7 Bcf/d, originate in Texas, data from the U.S. Energy Information Administration (EIA) showed earlier this year.

The projects in Texas will provide additional takeaway capacity out of the Permian Basin and debottleneck the Waha Hub, the EIA said.

Hugh Brinson Pipeline, the Rio Bravo Pipeline Project, and the Blackcomb Pipeline are the three largest gas pipelines in Texas expected to enter into service by the end of the year, according to the EIA.

Until the congestion in the Permian basin eases, executives see natural gas takeaway capacity as the most significant constraint to their firm’s drilling activity in the Permian Basin in the next 12 months, the Dallas Fed Energy Survey showed in June.

Most executives at exploration and production firms focused primarily on the Permian said in the survey that they expect gas takeaway constraints in the Basin to be fully alleviated in 2027. The most frequently selected option was the first quarter of 2027, chosen by 25% of respondents. Yet, more than 10% expect the bottlenecks to be resolved no sooner than in 2028, and about 7% of respondents said “never”.

By Tsvetana Paraskova

Business

FG Plans Rival Power Firms To Compete With Discos

Published

45 minutes ago

July 27, 2026

The Tide

Poised to tackling persistent blackouts and expanding electricity access across the country, the federal government has unvieled plans to develop Renewable Energy Service Companies that would compete directly with electricity distribution companies over the next 10 to 15 years.

The Managing Director, Rural Electrification Agency (REA), Abba Aliyu, disclosed this at the Oriental News 2026 Conference held in Ikeja, Lagos, last Thursday.

Represented by the Executive Director, Corporate Services at REA, Gboyega Ayoade, Aliyu said the agency was moving away from encouraging single isolated mini-grid projects to supporting developers capable of building utility-scale renewable energy networks that could serve entire communities independently of the national grid.

According to him, the proposed Renewable Energy Service Companies, known as RESCOs, will offer consumers an alternative to conventional electricity distribution companies by providing round-the-clock clean energy through interconnected mini-grids powered by solar energy and battery storage.

“We at REA are developing something called the RESCOs, Renewable Energy Service Companies that will rival the DisCos in the next 10 to 15 years,” he said.

He explained that rather than allowing developers to build a single mini-grid in a community, the agency was encouraging firms to establish dozens of interconnected mini-grids capable of serving entire localities.

“Instead of us encouraging a developer to come in and build one mini-grid in this area and say, okay, I have a mini-grid, no; we’re encouraging developers now to build utility-scale mini-grids so one developer can own the entire community and build about 20 mini-grids to 50 mini-grids. So that going forward, you can decide not to use the conventional thermal power and say you want to go completely clean and just focus on that. I want my service to come from AYZ Renewable Energy Service Company. They provide you with clean energy 24-7,” he added.

The REA boss argued that Nigeria could no longer depend solely on distribution companies, noting that many communities remained without electricity because serving them was not commercially attractive to the operators.

“We think that we can’t leave everything in the hands of the DisCos. In some areas, they don’t even provide services. If you go to some communities, they’ll tell you that a DisCo does not provide power for them because they’re not making more money from that or because they don’t have the right feeders or functioning feeders in those areas,” he stated.

Aliyu said renewable energy mini-grids offered a more reliable solution because they could provide uninterrupted electricity if operators maintained the battery systems properly.

He stated that agreements were already being reached between mini-grid developers and distribution companies in areas where the latter had little or no presence.

“There are some areas currently that the DisCos do not service. So there will be an agreement between the DisCos and the RESCOs as we go along. Currently, as we speak, that agreement is already in place for some areas where we are deploying these mini-grids already.

“Under the Distributed Access for Renewable Energy Scale-Up, we are building a lot of mini-grids across the country. In those communities where these developers need to build interconnected mini-grids, they’re liaising directly with the DisCos and saying, ‘Hey, you don’t supply this area. Can we take this area off you and supply them?’” he said.

Aliyu added that RESCos could also build their own electricity infrastructure where distribution companies were absent, subject to approval from the Nigerian Electricity Regulatory Commission.

“In some areas where the DisCos are not supplying electricity at all, the RESCos are building their own transmission lines. Once you build a grid, you can build your own transmission line and supply those communities. It just has to go to NERC, which has to give you exclusivity rights to ensure that you own that infrastructure in that area and you’re able to supply”, he said.

Speaking on electricity pricing, Aliyu maintained that stable electricity supply would only be achieved if consumers embraced cost-reflective tariffs, stressing that the government could no longer sustain subsidy payments.

Business

$50m Steel Pipe Facility: NCDMB Lauds Brentex, Assures Industry Patronage

Published

48 minutes ago

July 27, 2026

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB), has commended Brentex Petroleum Services Limited, on the significant progress recorded on its Steel Pipe Induction Bending and Coating Facility at the Federal Ocean Terminal (FOT), Onne Port, Rivers State.

The Board described the facility as a landmark industrial project and a major demonstration of Nigeria’s growing status as a leading hub for oil and gas logistics, engineering, and manufacturing services.

Speaking during a tour of the facility at Onne Port, last Thursday, the Executive Secretary of the board, Engr. Felix Omatsola Ogbe, commended the firm on the project and reaffirmed the Board’s commitment to working with industry stakeholders to deepen in-country capacity, promote industrialisation, and expand the scope of Nigerian Content in the oil and gas industry.

The Tide gathered that the Brentex Facility is a $50 million investment being developed to provide integrated steel pipe induction bending, heat treatment, testing, and coating services for Nigeria’s oil and gas industry.

A Statement from the Directorate of Corporate Communications of the NCDMB said that the project has attracted over $26 million in investments to date, and was expected to become Africa’s first fully integrated 2-inch to 48-inch steel pipe induction bending and coating plant upon completion.

Represented by the Director, Monitoring and Evaluation Directorate (MED), Esueme Dan- Kikile, Esq, Ogbe noted that the emergence of the Brentex Steel Pipe Induction Bending and Coating Facility represents a direct and tangible response to the quest for in-country capacity in specialised pipeline engineering services.

While lauding the company for its bold investment, resilience, and commitment to developing indigenous capacity, Ogbe noted that the company’s steady progress on the facility reflected the growing confidence of Nigerian firms in delivering world-class oil and gas infrastructure and engineering solutions.

“This project would advance Our collective goal of retaining value, creating jobs, and strengthening Nigeria’s position as a leading energy services hub in Africa.

“We’ve been on this journey with Brentex for over a decade. Today, we’ve seen what you are doing on ground. And that’s actually the whole idea about the equipment component manufacturing initiative of the NCDMB – in-country value addition – and you have been steadfast”, the NCDMB’S Scribe said.

He urged the Management of the firm to sustain the momentum on the project and maintain the highest standards of quality, safety, and operational excellence.

“The facility has the potential to become a flagship Nigerian Content asset and a reference point for specialised pipeline engineering services across Africa.

“I’d like to express the Board’s deep appreciation for your investment in our country, and to assure you that you have our support. Whatever we can also do to get the industry to patronize this investment, we’ll do that, because it’s very important that the industry take advantage of what we have in-country”, he added.

Earlier in his opening remarks, the Managing Director of Brentex Petroleum Services Ltd, Chidi Nzerem thanked the Executive Secretary and the NCDMB delegation for the visit, describing it as a strong vote of confidence in the project and its contribution to the growth of in-country capacity.

Nzerem further acknowledged the Board’s support and partnership over the past 10 years, noting that the sustained interventions had been instrumental to the facility’s progress.

Nzerem hinted that the project was conceived to advance the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, expressing hope that the Board’s support would be sustained, while also hinting that the facility is scheduled to become fully operational in the last quarter of 2027.

Responding to an inquiry by the General Manager, Downstream, Project Certification and Authorisation Division (PCAD) of the NCDMB, Ms. Tassalla Tersurgh, on the facility’s contribution to human capital development, the Managing Director said the company would engage the board after facility certification to develop training programmes aligned with the board’s mandate.

He disclosed that the facility is expected to engage about 200 engineers and other technical personnel, creating employment, technical training, skills transfer and capacity-building opportunities, with the long-term goal of the facility being 100 per cent handled and operated by trained Nigerians.

Speaking on the strategic importance of the facility, the Project Manager at Brentex, Engr. Patrick Anaje, who described the project as first of its kind in sub-Saharan Africa, said it is expected to transform pipeline engineering services by providing the country’s first fully integrated in-country solution for steel pipe induction bending and coating.

“Brentex is currently engaged in the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline project where our new capabilities would be of immense value. With an estimated 95 per cent of steel pipes currently imported, thi facility will enable operators to source specialised pipe induction bending, coating and pipe repair services locally, which will significantly reduce dependence on foreign suppliers and overseas repairs.

“This project will also shorten project delivery timelines, lowering procurement-related delays and costs, and improving operational efficiency across the oil and gas industry. The project will also deliver significant benefits to the national economy by retaining industry value within Nigeria”, he said.

The Tide report that the ceremony was attended by top management officials of NCDMB, executives of Brentex Petroleum Services Ltd, industry stakeholders, project consultants, contractors, representatives of the host communities of Onne and Ogu, members of the Community Liaison Committee (CLC), and others who witnessed firsthand the significant progress recorded on the strategic Nigerian Content project.

By Ariwera Ibibo-Howells, Yenagoa