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‘Forex Intervention’ll Improve Economic Activities’

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9 years ago

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The Governor, Central Bank of Nigeria (CBN)  Mr Godwin Emefiele, said the series of intervention embarked upon by the apex bank in the foreign exchange market would improve economic activities and productivity in the country.
Emefiele said this at a news conference after the launching of the International Monetary Fund’s Regional Economic Outlook report on Sub-Saharan Africa, in Abuja, yesterday.
He said that results had shown that the consistent pumping of foreign exchange was impacting positively on the market and simultaneously strengthening the Naira.
As at today, the Naira is exchanging for N305.7 to a dollar at the inter-bank market and N386 to a dollar at the parallel market.
In recent weeks, the CBN had introduced the Small and Medium Enterprise Forex window as well as the Investors and Exporters Forex window.
The apex bank also increased the volume of dollars that a single Bureau de Change could bid for to 40,000 dollars per week from the previous amount of 8,000 dollars per BDC.
This is in addition to the consistent intervention of over three billion dollars since February to make Forex more accessible to genuine customers for school fees, medicals and travel allowances.
Emefiele expressed confidence that the price of commodity would go down in due time as the growth trend in the country continued.
He also reiterated that the fiscal and monetary authorities were committed to implementing the Economic Recovery and Growth Plan, critical to taking the country out of its current economic crisis.
“We are looking at accessing funds from the international community. Aside the Eurobond, we are looking at the China market through the China-Exim facility.
“I can assure you all that once we get these funds and deploy them to developing power, roads, rail and all those sectors,  everyone will be positively impacted.
“And it’s not just on individual lives, it will impact on our economy and on the growth trajectory of the country,’’ he said.
Meanwhile, the Minister of Finance, Mrs Kemi Adeosun, explained the reason the IMF was concerned over the debt service ratio to revenue of the country.
The IMF in its latest economic report, put the country’s external debt service to revenue at about 66 per cent.
She said that the country’s debt profile to GDP remained low; however, the cost of servicing loans had gone up due to fall in government revenue.
“ The problem is not that our debt is too high, but that our revenue is too low. It is revenue you use to pay debt and our revenue in Nigeria right now is very low.
“Most of our debt matures between two years. That means that the actual amount of interest we are paying is significant.
“What we are doing right now is refinancing most of that debt, especially those maturing within the next two years.
“We are also working on improving government revenue through tax. Our tax to GDP is six per cent; we are one of the lowest in the world. Ghana is 15 per cent, South Africa, 24 per cent.
“So what we are doing is working very hard to see how we can get more people into the tax net and how to get those who are already in the tax net to pay the right taxes,’’ she said.
Adeosun said also that the government was devising a means to ensure that all streams of income of an individual were taxed.
For instance, she said a civil servant might also have other businesses such as boutiques or salons and is only paying income tax on salary gotten from working for the government.
She said that government would ensure that everybody paid tax on each of the income streams.
The minister said also that the government was working on harmonising tax collection for federal, states and local government areas.
She said it would be more efficient for one entity to collect, which would simultaneously eliminate issues of double taxation faced by many businesses in the country.

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Two Federal Agencies Enter Pack On Expansion, Sustainable Electricity In Niger Delta

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6 days ago

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February 16, 2026

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The Niger Delta Development Commission (NDDC) has signed a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to expand access to reliable and sustainable electricity across the Niger Delta region.
The agreement, signed at the headquarters of the REA in Abuja, was targeted at strengthening institutional collaboration and accelerating development in underserved communities in the region.
A statement by the Director, Corporate Affairs of the NDDC, Seledi Thompson-Wakama, said the pact underscores renewed efforts by the two federal interventionist agencies to deepen cooperation and fast-track infrastructure delivery.
Speaking at the signing ceremony, the Managing Director of the NDDC, Dr Samuel Ogbuku, described the MoU as a strategic step towards realising the Commission’s vision to “light up the Niger Delta” in line with national priorities on distributed energy expansion.
Ogbuku said the agreement represents a shared institutional responsibility to deliver reliable energy solutions that will enhance livelihoods, stimulate local economies and create broader opportunities across the nine Niger Delta states.
According to him, electricity remains a critical enabler of national development, supporting job creation, healthcare delivery, education and inclusive economic growth.
He noted that the collaboration would help unlock the economic potential of rural communities while advancing broader national development objectives.
The NDDC boss added that the Commission has consistently adopted partnership-driven approaches in executing projects in the region and is prepared to support the implementation of the MoU by leveraging its community presence and infrastructure development capacity.
He reaffirmed the Commission’s commitment to working closely with the REA to ensure the timely and effective execution of the agreement.
The NDDC delegation at the event included the Executive Director, Projects, Dr Victor Antai; Executive Director, Corporate Services, Otunba Ifedayo Abegunde; Director, Legal Services, Mr Victor Arenyeka; Director, Finance and Supply, Mrs Kunemofa Asu; and Director, Liaison Office, Abuja, Mrs Mary Nwaeke.
In his remarks, the Managing Director of the REA, Dr Abba Abubakar Aliyu, described the MoU as a natural collaboration between two agencies with complementary mandates, reflecting a shared commitment to expanding access to sustainable electricity in rural communities.
Aliyu said the Niger Delta remains central to Nigeria’s economic fortunes and must be supported by infrastructure capable of driving productivity, enterprise and improved living standards, adding that the partnership signals readiness to deliver stable power to communities that have long awaited reliable electricity supply.
By: King Onunwor
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Why The AI Boom May Extend The Reign Of Natural Gas 

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6 days ago

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February 16, 2026

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Artificial intelligence is often viewed as a catalyst for electrification and subsequently decarbonization. Yet one of its most immediate effects may be the opposite of what many assume. The rapid buildout of AI infrastructure is increasing demand for reliable power, and that reality could strengthen the role of natural gas and other dispatchable energy sources for many years.
Investors focused on semiconductors and software valuations may be overlooking a key constraint. AI runs on electricity, and those electricity systems operate within physical and economic limits.
The energy sector has spent much of the past decade grappling with slow load growth. That is now changing, in a way that is reminiscent of the sharp rise in oil demand—and subsequently price—in the early 2000s.
Training large language models and operating advanced AI systems requires enormous computing resources. Hyperscale data centers are expanding rapidly, with developers requesting gigawatt-scale interconnections from utilities. In several regions, electricity demand forecasts have been revised upward after years of flat expectations.
This shift is significant because AI workloads create continuous, high-density demand rather than intermittent usage. Data centers cannot simply power down when the electricity supply becomes constrained. Reliability becomes paramount.
Wind and solar capacity continues to expand, but intermittent generation alone cannot meet the firm capacity needs of AI infrastructure without significant storage or backup generation.
Battery storage is improving, yet long-duration storage remains costly at scale. Nuclear projects face long development timelines and complex permitting hurdles. Transmission expansion also lags demand growth in many regions.
These constraints make dispatchable power sources critical. Natural gas plants can ramp quickly, operate continuously, and be deployed faster than many alternatives. As a result, gas-fired generation is increasingly viewed as a practical solution for supporting AI-driven load growth.
This does not undermine the role of renewables. In many markets, new renewable capacity is paired with gas generation to maintain grid stability. The key point is that AI-driven electrification is likely to increase fossil fuel usage in the near term.
Construction timelines favor gas-fired generation when demand rises quickly. Existing pipeline infrastructure reduces barriers to expansion. And for operators of data centers, reliability often outweighs ideological preferences. Downtime is simply too expensive.
Utilities are also revisiting resource plans as load forecasts rise. That shift may drive increased investment in transmission, grid modernization, and flexible generation assets.
The Decarbonization Story Is Complex
A common narrative holds that AI accelerates the transition away from fossil fuels because it increases electrification. The reality is more nuanced.
If electricity demand outpaces the buildout of low-carbon capacity, fossil generation may still increase in absolute terms even as renewables gain market share. Total emissions could rise, but the carbon intensity of the energy system may trend lower as cleaner sources make up a larger share of supply.
Ultimately, energy systems evolve based on engineering and economics, not just policy goals or market narratives.
Rising power demand could benefit utilities investing in transmission and generation capacity. Natural gas producers and midstream companies may see structural demand support from increased power-sector consumption. Equipment suppliers tied to grid reliability and gas turbines could also gain from the shift.
Longer term, advances in nuclear, storage, or efficiency may change the trajectory. For now, the immediate response to surging electricity demand is likely to rely on technologies that can be deployed quickly and reliably.
Artificial intelligence may reshape the economy in profound ways. One of the least appreciated consequences is that it may extend the relevance of natural gas as the world builds the energy backbone required to power the next generation of computing.
By: Robert Rapier
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Ogun To Join Oil-Producing States  ……..As NNPCL Kicks Off Commercial Oil Production At Eba

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6 days ago

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February 16, 2026

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Ogun State is set to join the comity of oil producing states in the country following the discovery and subsequent approval of commercial oil exploration activities in the Eba oil well, in Ogun Waterside Local Government Area of the state.
A technical team from the Nigerian National Petroleum Company Limited (NNPCL) has visited the area as preparations are in advanced stage for commencement of commercial drilling operations in the state.
The inspection followed President Bola Ahmed Tinubu’s approval for commercial exploration, forming part of the federal government’s efforts to deploy the required technical capacity and infrastructure for production.
Officials of NNPCL carried out the exercise alongside representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and national security agencies to evaluate the site and confirm its readiness for drilling activities.
The delegation was led by Project Coordinator for Enserv, Hussein Aliyu, who headed the NNPCL Enserv technical team.
Other members included Wasiu Adeniyi, Onwugba Kelechi, Engr. Rabiu M. Audu, Ojonoka Braimah, Ahmad Usman, Akinbosola Oluwaseyi, Salisu Nuhu, James Amezhinim, Yusuf Abdul-Azeez, Amararu Isukul and Livinus J. Kigbu.
Speaking, Governor Dapo Abiodun, described the development as a landmark achievement for Ogun State, saying “the commencement of drilling at Eba would stimulate economic growth, create employment opportunities and attract increased federal presence to the state’s coastal communities.
Abiodun also expressed appreciation to President Tinubu for his support toward the development of frontier oil basins and the equitable spread of the nation’s energy resources.
Recall that geological reports had earlier confirmed the presence of hydrocarbons within the Ogun Waterside axis, leading to preliminary surveys and technical engagements by NNPCL.
The Ogun State Government also carried out an independent verification of the oil well’s coordinates, affirming the discovery is located within the state’s boundaries.
To secure the project, naval security personnel have been deployed to the site for over 18 months, with the support of the Ogun State Government, to protect the facility and its environs.
The Eba oil well is regarded as part of Nigeria’s strategic move to expand oil production beyond the Niger Delta region.
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