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Pipeline Closures, Maintenance Drag Nigeria’s Oil Output to New Low

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Nigeria’s crude oil output has plunged to new low in recent weeks hit by pipeline closures and maintenance at major fields, an S&P Global industry report has indicated.

A senior official from the country’s oil ministry told S&P Global Commodity Insights the fields that feeds two major exports grade — Bonny Light and Qua Iboe — were down on maintenance in May but output was “gradually returning”.

THISDAY recently reported how with over 3.65 million barrels of crude oil shut-in at the Bonny Terminal during the March/April productions circle, Nigeria’s total losses, month-on-month rose by over 300 per cent.

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An analysis of the figures from the Nigerian National Petroleum Company (NNPC) indicated that the huge loss was due to a force majeure on the critical line which supplies a substantial part of the country’s export.

Overall, between March 3 and April 1, the production curtailment pushed the country’s total loss to 5.545 million barrels of crude for the month as opposed to 1.69 million barrels previously.

Force majeure refers to a clause in contracts that allows both parties to walk out of the contract when an extraordinary event or circumstance beyond the control of the parties happens.

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At the time, the 1.69 million barrels’ losses, although huge, was seen as a major improvement on the January 2022 high of 7.5 million barrels lost to the phenomenon, a development that has negatively impacted the country’s capacity to export the commodity.

Nigeria has for over a year been unable to meet the production quota allocated to it by the Organisation of Petroleum Exporting Countries (OPEC) due to losses to facilities’ breakdown, vandalism and outright sabotage as well as community issues.

The country’s upstream petroleum sector has also struggled in the last one year, due to deteriorating facilities occasioned by waning investment as well as oil theft.

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Since this year, the NNPC has failed to remit its statutory funding of the Federation Account, a joint pool collectively operated by the federal, state and local governments despite the rising international prices of oil.

But Bonny which lost the highest amount of oil for the period, according to the THISDAY review, was followed by Odudu terminal which experienced a whopping 937,663 barrels leakage due to what the NNPC described as maintenance work.

But the challenge appeared to have worsened in May as the S&P reported quoted other industry sources as saying that the Nembe Creek and Trans Forcados pipelines had repeatedly come under sabotage, and flow through the lines had been sporadic in the past month.

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“Africa’s largest oil producer has had to deal with a barrage of security, operational and technical problems at its key oil infrastructure since early 2021,” it stated.

Although OPEC is yet to release its production figures for May, S&P stated that crude and condensate production in May fell 14 per cent month on month to 1.279 million barrels per day, quoting data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

That was the lowest in more than three decades, according to estimates from S&P Global.

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Nigeria has seen its crude and condensate production drop to almost half its production capacity of around 2.2 million bpd.

A majority of key oil fields, terminals and facilities have been experiencing teething problems and a recent resurgence in attacks on oil facilities have exacerbated the situation.

Rising pipeline sabotage and insecurity in the Niger Delta are also hampering the growth outlook for Africa’s largest oil producer.

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In a recent note, Platts Analytics said it expected Nigerian crude supply to rise to 1.5 million bpd from the fourth quarter of 2022 from 1.4 million bpd in April.

“Political risks may worsen ahead of elections in early 2023,” Platts Analytics said.

“Production has averaged about 300,000 bpd below its OPEC+ quota since mid-2021 due to technical outages, theft and sabotage and force majeure,” it added.

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The declining oil production comes at a difficult time for Nigeria, which is also fighting a wave of divestments from international oil companies.

The government has had lofty targets to boost exploration and production and increase oil reserves and output to 40 billion barrels and 3 million bpd, respectively, by the mid-2020s. Those targets have started to look unachievable.

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Noble Ladies Champion Women’s Financial Independence at Grand Inauguration in Abuja

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Women from diverse backgrounds across Nigeria and beyond gathered at the Art and Culture Auditorium, Abuja, for the inauguration and convention of the Noble Ladies Association. The event, led by the association’s Founder and “visionary and polished Queen Mother,” Mrs. Margaret Chigozie Mkpuma, was a colourful display of feminine elegance, empowerment, and ambition.

The highly anticipated gathering, attended by over 700 members and counting, reflected the association’s mission to help women realise their potential while shifting mindsets away from dependency and over-glamorization of the ‘white collar job.’ According to the group, progress can be better achieved through innovation and creativity. “When a woman is able to earn and blossom on her own she has no reason to look at herself as a second fiddle,” the association stated.

One of the association’s standout initiatives is its women-only investment platform, which currently offers a minimum entry of ₦100,000 with a return of ₦130,000 over 30 days—an interest rate of 30 percent. Some members invest as much as ₦1 million, enjoying the same return rate. Mrs. Mkpuma explained that the scheme focuses on women because “women bear the greater brunt of poverty” and the platform seeks “to offer equity in the absence of economic equality.”

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Education is also central to the Noble Ladies’ mission, regardless of age. Their mantra, “start again from where you stopped,” encourages women to return to school or upgrade their skills at any stage in life. The association believes that financial stability is vital in protecting women from cultural practices that dispossess widows of their late husbands’ assets, while also enabling them to raise morally and socially grounded families.

Founded on the vision of enhancing women’s skills and achieving financial stability, the association rests on a value system that discourages pity and promotes purpose. “You have a purpose and you build on that purpose to achieve great potentials and emancipation,” Mrs. Mkpuma said.

A criminologist by training and entrepreneur by practice, she cautions against idleness while waiting for formal employment. “There are billions in the informal and non-formal sectors waiting to be made,” she said, rejecting the “new normal of begging” and urging people to “be more introspective to find their purpose in life and hold on to it.”

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Mrs. Mkpuma’s management style keeps members actively engaged, focusing on vocational skills and training to prepare them for competitive markets. She is exploring “innovative integration of uncommon technologies” and is already in talks with international franchises to invest in Nigeria, with Noble Ladies as first beneficiaries.

The association’s core values include mutual respect, innovation, forward-thinking, equal opportunity, and financial emancipation. With plans underway to establish a secretariat in the heart of Abuja, the group aims to expand its impact.

The event drew high-profile guests, including former Inspector General of Police, Mike Okiro, and a host of VIPs, marking a significant milestone in the association’s drive for women’s empowerment.

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NEPZA, FCT agree to create world-class FTZ environment

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NEPZA, FCT agree to create world-class FTZ environment

The Nigeria Export Processing Zones Authority (NEPZA) has stepped in to resolve the dispute between the Federal Capital Territory Administration and the Abuja Technology Village (ATV), a licensed Free Trade Zone, over the potential revocation of the zone’s land title.
Dr. Olufemi Ogunyemi, the Managing Director of NEPZA, urged ATV operators and investors to withdraw the lawsuit filed against the FCT administration immediately to facilitate a roundtable negotiation.
Dr. Ogunyemi delivered the charge during a courtesy visit to the Minister of the Federal Capital Territory, Barrister Nyesom Wike, on Thursday in Abuja.
You will recall that the ATV operators responded to the revocation notice issued by the FCT administration with a lawsuit.
Dr. Ogunyemi stated that the continued support for the growth of the Free Trade Zones Scheme would benefit the nation’s economy and the FCT’s development, emphasizing that the FCT administration recognized the scheme’s potential to accelerate industrialisation.
Dr. Ogunyemi, also the Chief Executive Officer of NEPZA, expressed his delight at the steps taken by the FCT minister to expand the economic frontier of the FCT through the proposed Abuja City Walk (ACW) project.
Dr. Ogunyemi further explained that the Authority was preparing to assess all the 63 licensed Free Trade Zones across the country with the view to vetting their functionality and contributions to the nation’s Foreign Direct Investment and export drives.
“I have come to discuss with His Excellency, the Minister of the Federal Capital Territory on the importance of supporting the ATV to succeed while also promoting the development of the Abuja City Walk project. We must work together to achieve this for the good of our nation,” he said.
On his part, the FCT Minister reiterated his unflinching determination to work towards President Bola Ahmed Tinubu’s Renewed Hope Agenda by bringing FDI to the FCT.
“We must fulfil Mr. President’s promises regarding industrialization, trade, and investment. In this context, the FCT will collaborate with NEPZA to review the future of ATV, a zone that was sponsored and supported by the FCT administration,” Wike said.
Barrister Wike also said that efforts were underway to fast-track the industrialisation process of the territory with the construction of the Abuja City Walk.
The minister further said the Abuja City Walk project was planned to cover over 200 hectares in the Abuja Technology Village corridor along Airport Road.
According to him, the business ecosystem aimed to create a lively, mixed-use urban center with residential, commercial, retail, hospitality, medical, and institutional facilities.
He added that the ACW would turn out to be a high-definition and world-class project that would give this administration’s Renewed Hope Agenda true meaning in the North-Central Region of the country.
Barrister Wike also indicated his continued pursuit of land and property owners who failed to fulfil their obligations to the FCT in his determination to develop the territory.

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Benue IDPs block highway, demand return to ancestral homes

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Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

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Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

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Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

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