Factory Production
April 26, 2021 No Comments

Sahara Energy backs Fujairah to emerge as global trading hub

Speaking ahead of the upcoming virtual 12th International Fujairah Bunkering & Fuel Oil Forum (FUJCON 2021) in the United Arab Emirate (UAE), Laven said ongoing transformative projects would give traction to the drive to develop Fujairah “as a global trading hub will also support the growth in demand as activity levels continue to increase.”

“The bunker market during 2020 has had to deal with a number of challenges. At the beginning of the year, we had the IMO 2020 specification change, then following the COVID-19 pandemic, global demand and bunker markets around the world have been impacted in different ways. Hopefully, 2021 will see a return to normality and Fujairah can see growth,” he added.

Launched in 1978 and fully operational in 1983, the Port of Fujairah is the second-largest bunkering hub in the world after Singapore. It offers general cargo, bulk cargo, wet bulk cargo, and container services. The port has a vast oil storage capacity of 10 million cubic meters with plans to enhance productivity through the extension of the storage capacity to 42 million barrels of crude oil.

He asserted that as a leading player in the UAE oil and gas sector, Sahara Energy would continue to promote investment projects aimed at ensuring the availability of clean fuels.

“Sustaining strategic and transparent conversations around the future of the energy sector requires the commitment and collaboration of all stakeholders. Sahara Energy and its parent organization, Sahara Group are delighted to lend its voice to shaping the future that will best serve global well-being.”

Laven who will be speaking on Risk Management and Oil Storage alongside other speakers said the issue of price remained critical to risk management considerations in oil and gas transactions. “But the strategy of investing in flat price without managing the price risk carries a significant amount of risk. When investing in oil, a combination of appropriate risk management and trading market structure and arbitrage can still generate material returns,” he said.

the availability of locally produced fuels, enhanced automation, and access to clean fuels should provide a level of market confidence in supply at the Port of Fujairah, Andrew Laven, Chief Operating Officer, Sahara Energy Resources DMCC, Dubai has said.

“The bunker market during 2020 has had to deal with a number of challenges. At the beginning of the year, we had the IMO 2020 specification change, then following the COVID-19 pandemic, global demand and bunker markets around the world have been impacted in different ways. Hopefully, 2021 will see a return to normality and Fujairah can see growth,” he added.

Launched in 1978 and fully operational in 1983, the Port of Fujairah is the second-largest bunkering hub in the world after Singapore. It offers general cargo, bulk cargo, wet bulk cargo, and container services. The port has a vast oil storage capacity of 10 million cubic meters with plans to enhance productivity through the extension of the storage capacity to 42 million barrels of crude oil.

He asserted that as a leading player in the UAE oil and gas sector, Sahara Energy would continue to promote investment projects aimed at ensuring the availability of clean fuels.

“Sustaining strategic and transparent conversations around the future of the energy sector requires the commitment and collaboration of all stakeholders. Sahara Energy and its parent organization, Sahara Group are delighted to lend its voice to shaping the future that will best serve global well-being.”

Laven who will be speaking on Risk Management and Oil Storage alongside other speakers said the issue of price remained critical to risk management considerations in oil and gas transactions. “But the strategy of investing in flat price without managing the price risk carries a significant amount of risk. When investing in oil, a combination of appropriate risk management and trading market structure and arbitrage can still generate material returns,” he said.

Production
April 26, 2021 No Comments

Ikike oil field likely to commence operations by year end

Oil major, Total has announced an immediate plan to launch operational activities around its Ikike field, offshore Nigeria, by the end of 2021.

Indeed, the oil firm, in its yearly filing with the US Securities and Exchange Commission (SEC), stated that it expects to start up its Ikike field by the end of 2021 and will drill a number of exploration wells across its African portfolio.

The French company took a final investment decision (FID) on Nigeria’s Ikike project in January 2019 and hopes to reach its first oil late this year.

The company had hoped to begin production at the project in 2020. The field will be tied back to the existing Amenam field.

Total singled out two potential projects in Nigeria. The authorities approved a field development plan for Preowei in 2019.

The company is also considering work on the Owowo discovery, which is found in 2012.

Total began drilling an appraisal well on Block 20/11 in January and another is planned for Block 48 this year. It bought the former block in June 2020, following the collapse of Cobalt International Energy, which had made a number of discoveries.

On Angola’s Block 17, Total and the local authorities reached a deal to extend the license until 2045.

Total agreed to drill two exploration wells on the block in 2022-23, adding that it is also working to maintain production from the block and will drill infill production wells this year, which will also begin producing this year. Further out, it is also working on three brownfield projects.

These are Zinia Phase 2, CLOV Phase 2, and Dalia Phase 3 – will begin producing in 2022, it said. It had previously expected to start these in 2020-2021.

Total paid $2.96 billion in taxes in sub-Saharan Africa, of which $1.09bn was paid on Block 17 to the Angolan government.

The French company paused work on Block 0 in April 2020, because of the pandemic. It expects to resume this in 2021.

Meanwhile, in Namibia, Total is planning to drill the Venus well this year, on Block 2913B. The company did not commit to a particular time, but various sources have predicted the third quarter.

Under the Ugandan development plans, the companies will drill around 430 onshore wells and build two crude processing facilities.

Tilenga will require 400 wells, half of which will be water injection, and is expected to produce 190,000 barrels per day. Kingfisher, which is 150 km to the south of Tilenga, will involve 31 wells and produce 40,000 bpd.

Uganda, Tanzania, and Total planned to sign a deal on March 22. However, they pushed this back into April.

The Uganda plan took top billing for the company, with Total saying it would “focus its investments primarily” on the EACOP and Tilenga projects. Other plans named by the company were all post-FID.

The Tilenga, Kingfisher, and EACOP projects will produce oil with 13 kg of CO2 per barrel, ahead of the industry average of 20 kg. As such, Total defended its investment in the project, saying this was in line with its climate ambition plans set out in May 2020.

Angola is at the heart of Total’s production, with an output of 184,000 BPD in 2020, down from 205,000 BPD in 2019. Africa’s reserves contribution to the company was all down last year.

Power
April 26, 2021 No Comments

Local content should drive linkages, look beyond economic rents

Notwithstanding the growth witnessed in local content development in the country, indigenous participation in the oil and gas sector needs to look beyond the simple generation of economic rents, and instead focus on the development of linkages that will endear more growth and economic development.

This was the view of an oil and gas expert, Dr. Wisdom Enang while speaking on Nigerian oil and gas local content policy: Gains, improvement, opportunities, and imperatives for the future, at the just-concluded 4th Lawyers in Oil and Gas Conference and Awards.

Enang noted that local content has increased indigenous participation in crude production and exploration as well as a rise in the number of rigs and marine vessels owned by Nigerians from 3% to 40%.

Enang said: “With Nigerians developing competence in jobs that were the exclusive preserve of expatriates, most of the jobs that were executed outside Nigeria are now being performed by Nigerians and in Nigeria. This has led to the retention of a large chunk of the industry expenditure in-country, with the attendant positive impact on employment generation and growth of Gross Domestic Product (GDP).”

He however decried that a notable factor militating against local content development in Nigeria, remains insufficient funds for indigenous companies from Nigerian banks that impede the companies from participating effectively and efficiently.

Although the local content policy has led to increased opportunities for small and medium-sized enterprises (SMEs) in the industry, Enang noted that there are still several bottlenecks to the award of contracts to small businesses in the form of tedious prequalification and tender processes.

“The issue of non-compliance remains a highly debatable topic, with some schools of thought arguing that some multinationals continue to violate provisions of the Nigerian Content Policy through the use of expatriates from foreign technical centres, who perform job functions that Nigerians have the capacity to execute”, he added.

To bring about further development, Dr Enang said for the government to achieve the local content target, it must adopt initiatives to create an enabling environment for increased involvement of Nigerians in the oil and gas industry.

“To achieve full implementation of the local content policy, the government needs to embark on a series of market-oriented policy reforms to integrate the economy towards achieving competitive economic growth and globalization through the use of private sector-led socio-economic initiatives.

“The government must also encourage industrial development by granting liberal tax incentives and strengthening support for local institutions. The role of the small and medium scale enterprises, in realizing the effective implementation of the Nigerian local content policy cannot be ignored. They need to be encouraged and strengthened in terms of finance and operational regulations, because of the critical role they play in the development of the economy.

“The Nigerian local content policies need to look beyond the simple generation of economic rents, and instead focus on the development of linkages that will endear more growth and economic development of the oil-producing regions and the nation. Enforcing local content depends on the availability of an industrial-supply base that can act as growth levers”.

Enang also disclosed the need for a private-public partnership to reinforce the implementation of human capital development through the constant acquisition of skills and technical know-how. The Nigerian Content Research and Development Fund is a good starting point that can advance skills acquisition; however, the expertise of a broad range of research-intensive private and public universities should be actively leveraged to its maximum potential.”

He, however, added that actualizing the goals of the Nigerian local content policy cannot be at the expense of quality, hence, indigenous companies must continue to invest in improving the quality of their products and services, and deliver the same to the Nigerian market at competitive prices.

Source: Guadian

Industry News Production
March 23, 2021 No Comments

Shell and Eni acquitted in Nigeria corruption case

A Milan court has acquitted Shell and Eni and Eni CEO Claudio Descalzi in a corruption case related to a $1.3 billion worth acquisition of an oilfield off Nigeria about a decade ago.

The court revealed its decision on Wednesday, 17 March 2021 after more than three years since the trial started.

Responding to the court’s decision, Italy’s Eni on Wednesday welcomed the judgment of full acquittal of all charges by the Court of Milan, stating that “there was no case”.

After almost three years of trial, the judgment by the court has finally established that the company, the CEO Claudio Descalzi, and the management involved in the proceedings have all behaved in a lawful and correct manner, Eni said in the statement.

“Today, Eni expresses its gratitude for the trust placed by its stakeholders throughout the course of the trial, particularly in upholding the company’s management and the conduct of its business and respecting its reputation”, Eni added.

Commenting on the Milan Tribunal’s acquittal of Shell of charges related to OPL 245 in Nigeria, Shell CEO Ben van Beurden said: “We welcome today’s decision by the Milan Tribunal. We have always maintained that the 2011 settlement was legal, designed to resolve a decade-long legal dispute and unlock the development of the OPL 245 block.

“At the same time, this has been a difficult learning experience for us”, van Beurden added.

Reuters reported on Thursday that, following the judgement in the oil industry’s biggest corruption case, the Nigerian government was surprised and disappointed by the verdict and would consider whether to appeal once its lawyers had read the written judgment.

The case revolved around the acquisition by Shell and Eni of the Oil Prospecting Licence (OPL) 245, which covers a deep-water offshore area, approximately 150 km off the Niger Delta.

It is worth noting here that the prospecting licence for Block 245 expires in 2021 and the Nigerian Federal Government has not yet converted its prospecting licence into an oil mining lease (OLM). As a result, not a single oil barrel has been drilled to date.

As previously reported, the Italian prosecutor last year asked for Eni and Shell to be fined and some of their former and current executives, including Eni CEO Claudio Descalzi, to be jailed in the long-running trial over an alleged corruption scheme related to the licence OPL 245.

News Power
March 23, 2021 No Comments

NNPC says to expect petrol from Port Harcourt Refinery after 18 months

The Nigerian National Petroleum Corporation (NNPC) said on Monday that the Port Harcourt refinery being rehabilitated for $1.5 billion will start refining gasoline (petrol) within 18 months of the project.

The Group Managing Director (GMD), NNPC, Mele Kyari, who said this in Abuja on Monday, clarified that the approved fund was for complete rehabilitation and not turnaround maintenance.

According to a report by the News Agency of Nigeria (NAN), Kyari said: “During rehabilitation, by the 18th month, part of this plant will begin to produce particularly the gasoline plants.

“What it means in a technical sense is that in 18 months, we will see production coming from that plant; we will follow it plant by plant until we are completely done,” Kyari said.

The NNPC GMD also said that the process of rehabilitation started about 10 years ago but was slowed down due to a number of mistakes and interferences.

He was hopeful the refinery would work optimally for the next 15 years after the rehabilitation.

Source: Daily Trust

News Power Production
March 23, 2021 No Comments

Dangote expects Lagos refinery to be completed by end of 2021

President, Dangote Group, Alhaji Aliko Dangote yesterday said the multi billion dollars and 650,000-barrel per day (bpd) integrated refinery and petrochemical project will be completed by the end of this year, just as granulated urea fertiliser plant at Ibeju Lekki corridor will begin production of fertiliser products next week.

This was even as the Lagos State Governor, Mr Babajide Sanwo-Olu promised to support the ongoing multi-bilion dollars investments on the axis with massive road infrastructure to further open up the economy of the axis and create a more conducive environment for the industries springing up in the area.

The duo spoke with journalists during Governor Sanwo- Olu’s two-day working visit to the Lagos Free Zone, saying that the investments would turn around the state and the nation’s economy.

Speaking on the economic potential of the refinery, Dangote also added that though the Africa’s biggest oil refinery and the world’s biggest single-train facility expected to generate about 230,000 indirect jobs would be completed by the end of this year, production of petroleum products would commence by first quarter of 2022.

The Africa’s richest man disclosed this while fielding questions from journalists after the tour of the project by the Lagos State Governor, Mr. Babajide Sanwo-Olu who went on a two – day working visit with members of his cabinet to the burgeoning industrial hub located in Lekki area of the state. He also stated that the granulated urea fertiliser plant at Ibeju Lekki corridor will commence production of fertiliser products next week.

He said: “OK the fertilizer you will actually see fertilizer within the next one week. The refinery will be finished by the end of this year and product will start coming out by first quarter of next year. ”

He commended the governor for finding time out to visit the refinery during his working visit, saying: “First of all let me thank His Excellency for taking off about five hours to be with us today.

The governor has been around this area for the past two days. Really Mr. Governor we are very grateful for your support for making this place to be investors friendly and all the support you have been giving. Not only to Dangote but to almost everybody and I can assure that this place will be the hub of industrialisation in the country going forward.

On his part, Governor Sanwo-Olu said there is urgent need to assess the level of investment on the Lekki Corridor, saying efforts were being made to address the issues the investors are facing and avert haphazard development in the new Industrial hub informed the working visit.

Sanwo-Olu said the development of Lekki Port being propelled by the operators and owners of Lagos Free zone has gone up to about 60 per cent , saying the state government would ensure that the problems being experienced in Apapa port.

To regulate and guide against haphazard development, Governor Sanwo-Olu said agencies of government would be located in the axis to ensure that the right things are done.

“The ministry of Environment, Physical Planning, Waterfront and Tourism would also have a full presence here.

Physical planning are things we cannot afford to miss out. We need to ensure that the master plan of this area is kept and the new ones we need to look at we will certainly pick them up for approvals that is required so that government can indeed take the position,” he said.

Industry News
March 23, 2021 No Comments

Coronavirus fuels uncertainty as global oil consumption dips 9% in 2020

Global consumption of petroleum and other liquid fuels crashed by nine percent to 92.2 million barrels per day (bpd) in 2020, due to the coronavirus restrictions and lockdowns, the U.S. Energy Information Administration (EIA) has said, noting that this was the largest drop in EIA’s series in 20 years.

While it projected that the world will return to more normal consumer behaviour this year, and a continued recovery in economies is set to contribute to rising oil consumption in 2021 as the year progresses, the EIA warned that the effects of the pandemic continue to present challenges in forecasting global petroleum liquids consumption.

For January, a significant drop in Nigeria’s oil export has limited the increase of oil output from member countries of the Organization of Oil Exporting Countries (OPEC).

OPEC recorded oil output rise for a seventh month in January, a Reuters survey found, after the group and allies agreed to ease record supply curbs further, but an involuntary drop in Nigerian exports limited the increase.

Among the countries showing lower output, the biggest drop was in Nigeria after force majeure was declared on exports of Qua Iboe, one of the country’s largest production streams.

Operator of the facility Exxon Mobil said on January 22 that the force majeure has been lifted.

The 13-member OPEC pumped 25.75 million barrels per day (bpd) in January, the survey found, up 160,000 bpd from December, and a further increase from a three-decade low reached in June.

EIA expected in its January Short-Term Energy Outlook that global liquid fuels consumption will grow by 5.6 million bpd this year, or by six percent compared to 2020, and rise by another 3.3 million bpd in 2022.

It noted that the United States will contribute with a 1.4 million bpd consumption increase to the growth in 2021, the EIA forecasts.

Oil consumption will rise this year thanks to both economic growth and a return to more normal travel patterns by the middle of the year, which will also have a small effect on oil consumption growth in 2022.

Despite the expected growth in global oil consumption in 2021, EIA still forecasts it to average below pre-pandemic levels—at 97.8 million bpd, it would be 3 percent less than the 2019 level.

The International Energy Agency (IEA), for its part, cut its estimate for oil demand growth for this year by 300,000 bpd to 5.5 million bpd. The IEA expects oil demand to average 96.6 million bpd in 2021, after crashing by an all-time high of 8.8 million bpd in 2020, under the weight of the COVID-19 pandemic.

OPEC+, which groups OPEC and other producers led by Russia, agreed to pump more from January 1, and returns to output restraint again from February amid fears of a slow demand recovery. The latest supply pact has helped oil to an 11-month high above $57 a barrel this year.

“The increase is natural with the higher production ceiling from January,” an OPEC delegate said.

In January, the biggest supply increases came from Saudi Arabia and Iraq, the group’s top two producers, reflecting their higher quotas. Iraq is still making almost all of its pledged OPEC+ cuts, having struggled to do so in the past.

Industry Power
March 23, 2021 No Comments

Nigerian court freezes Shell accounts ahead of $4bn Aiteo lawsuit

A federal court in Lagos, Nigeria has issued an injunction barring Shell’s subsidiares in the country from withdrawing money at 20 local banks until it ringfences potential damages in a lawsuit brought against the supermajor by Aiteo Eastern E&P.

Aiteo is seeking about $4 billion in total over alleged problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought from the Anglo-Dutch group in 2015 and over claims Shell undercounted its oil exports.

Court documents seen by Reuters show that Aiteo is seeking compensation over what it says was the poor condition of the pipeline and associated lost oil sales.

Aiteo also accuses Shell of deliberate improper metering of the Nigerian company’s oil exports from the Bonny Light terminal.

It is seeking $2.7 billion over the pipeline deal plus $1.28 billion for lost oil sales, the court documents show.

A spokesman for the Shell Petroleum Development Company (SPDC) told Reuters the allegations are “factually incorrect”.

“SPDC is working to secure an expeditious discharge of the freezing injunction, which we believe was obtained by Aiteo without any valid basis,” an SPDC spokesman said.

Aiteo declined to comment to Reuters on an ongoing legal case.

The lawsuit is latest in a string of legal headaches for the biggest international oil company operating in Nigeria, Africa’s biggest oil exporter.

A UK court last week cleared the way for local communities to sue the company over oil spills in the West African nation, and last month Shell lost a case brought in the Netherlands by Nigerian farmers and fisherman over pollution claims.

Shell, meanwhile, has initiated international arbitration proceedings against Nigeria over a case relating to oil spills that took place during the 1967-1970 Biafran war.(Copyright)

Industry
March 23, 2021 No Comments

Market Report: Nigeria Invests Billions To Improve Energy Sector

NIGERIA

A minimum of $10 billion worth of investments is currently being injected in the energy sector to delist Nigeria from one of the most energy impoverished nations in the world. Speaking at the Atlantic Council Global Energy Forum 2021, Alhaji Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation, elaborated on the topic of “Delivering Energy Access in the Developing World”, emphasizing the value of Nigeria’s resources in increasing domestic access.

Kyari stated that the country will focus on using its oil and gas resources to develop infrastructure as long as the commodity remains relevant, which he approximated will be so for about 40 years. To this end, he noted that the country, with its significant gas reserves, has approximately $3 -$4 billion in ongoing projects, many in advanced stages, to rev up production for domestic use and export.

The Minister of State for Petroleum Resources, H.E. Timipre Sylva, at the launch of the Federal Government Extended Special Public Works Program in Yenagoa, Bayelsa stated that the aim was to shield the most vulnerable from the effects of COVID-19, including but not limited to, pervasive hunger, poverty, environmental degradation, and joblessness. He disclosed that 8,000 Bayelsa State unemployed indigenes across the eight local government areas have been engaged in the scheme, which will last from January to April 2021.

The Petroleum Products Pricing Regulatory Agency reported that Nigeria’s domestic consumption of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, exceeded 1 million metric tons (MT) in 2020, the first year in the country’s history. The report stated that Nigeria consumed 840,594.37 MT of LPG in 2019, indicating an increase of 60,5% from 635,452.061 MT recorded in 2018. With this laudable feat, the country is on track to meet the five million MT target by 2022, set in the Nigeria Gas Policy of 2017. The agency noted that the Federal Government’s objective to deepen LPG penetration in the country seeks to create a healthier life for Nigerians by providing access to a cleaner source of energy for cooking, vehicular transportation, and other domestic uses.

SENEGAL

Australian oil and gas company FAR announced it has executed the sale agreement with Woodside for its interest in the Senegal RSSD Project to Australia’s Woodside. FAR had agreed to sell its Senegal interests, containing the Sangomar development, to India’s ONGC Videsh in November 2020. However, Woodside, as FAR’s partner in the project, exercised its first-buy rights to acquire FAR’s interest.

FAR has a 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area. The terms of Woodside’s acquisition will reflect those of the FAR/ONGC Transaction, including payment to FAR of $45 million, reimbursement of FAR’s share of working capital including any cash calls from January 1, 2020 to completion, and entitlement to certain contingent payments capped at $55 million. FAR shareholders are due to consider authorizing the agreement with Woodside at a shareholders’ meeting to be held on February 18, 2021. Additionally, in December 2020, FAR stated that it had received a $159,15million all-cash takeover proposal from private investment firm Remus Horizons PCC Ltd. In a statement, FAR said it would provide shareholders with further information in advance of the February 18 meeting to enable them to consider the Woodside sale in the context of the Remus proposal.

GLOBAL

On January 21, crude oil prices weakened amid concerns about fuel demand as the COVID-19 pandemic continues after U.S. inventories posted an unexpected rise last week. The U.S. West Texas Intermediate crude futures were down 0.6% at $52.97 a barrel, while Brent futures were down 0.5% at $55.79 a barrel at 9:45 AM ET (14:45 GMT). Data released late January 20, by the American Petroleum Institute, showed that U.S. crude oil inventories rose 2.6 million barrels in the week up to January 15, against expectations for a 300,000-barrel draw in forecasts. The U.S. Energy Information Administration is due to release its official weekly inventory report on Friday, later than usual due to Monday’s holiday. If these numbers show a similar crude oil build, it would be the first since early December.

Additional market uncertainty is based on the fear that the surge of COVID-19 cases is having a direct impact on the demand for crude oil worldwide. Earlier this week the International Energy Agency revised and lowered its global demand estimates for 2021 by 300,000 barrels a day (bpd) due to a fresh wave of lockdowns, particularly in China, the largest importer of crude in the world.

On the supply side, newly inaugurated President Joe Biden announced his decision to cancel the Keystone XL pipeline project, which would have carried more than 800,000 bpd of crude from Alberta’s oil sands in Canada as far south as the U.S. Gulf Coast. Additionally, ING noted that Shell has lifted force majeure on exports of Forcados crude from Nigeria, a measure which had been in place since January 14, after the pipeline to the Forcados oil terminal was shut due to a leak.

Manufacturing
January 29, 2021 No Comments

Nigeria’s external reserves moved up N36.23bn due to Improved crude oil prices

The CBN  says Nigeria’s Foreign Exchange Reserves rose from 34.94billion dollars in November 2020 to 36.23billion dollars as at Jan 21, 2021.

CBN Governor, Godwin Emefiele, said at the January Monetary Policy Committee (MPC) meeting of the bank, which began on Tuesday that improvement in crude oil prices contributed to the increase.

“The MPC noted the increase in the level of external reserves, which stood at 36.23 billion dollars as at 21st January, 2021 compared with 34.94 billion dollars at the end of November 2020.

“This reflected improvements in crude oil prices, partial global economic recovery amid optimism over the discovery and distributions of COVID-19 vaccines by most developed economies,’’ he said.

He added that the Nigerian economy and the global economy had continued to show prospect for recovery from the effects of COVID-19.

He assured of improved economic growth in Nigeria in the first quarter of 2021.

“The medium-term outlook for both the domestic and global economies continued to show improved prospects of recovery.

“This is supported by the recent moderate uptick in crude prices and increased optimism over the procurement and distribution of COVID-19 vaccines.

“Available data and forecasts for key macroeconomic variables for the Nigerian economy suggest further improvement in output growth in the first quarter of 2021.

“This would be supported by the coordinated and sustained interventions of the monetary and fiscal authorities, including the broad-based stimulus and liquidity injections,’’ he assured.

The CBN governor urged the Federal Government to take more urgent steps to tackle the challenge of insecurity so as to curb inflation, adding that insecurity also posed a threat to food security.

“MPC members reiterated the adverse impact of insecurity on food production, stressing that the current uptick in inflationary pressure could not be solely associated to monetary factors.

“They are due mainly to legacy structural factors including major supply bottlenecks across the country.

“The Committee, thus called on government to redouble efforts at strengthening infrastructural efficiency and address the emerging security challenges in the country.

“In addition to this, the committee called on the government to explore the option of effective partnership with the private sector to improve funding sources necessary to address the huge infrastructural financing deficit,’’ he said

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