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G7 devt. finance institutions, others to invest $80bn into African businesses

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By Temitope Ponle

The G7 Development Finance Institutions (DFIs) have announced a commitment to invest $80 billion dollars in Africa’s private sector, over the next five years, to support sustainable economic recovery and growth in the continent.

A statement on Monday, from the African Development Bank (AfDB), said the G7 DFIs made the announcement along with the International Finance Corporation (IFC), the private sector arm of the AfDB, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank.

It is the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent, according to the statement.

Each DFI has its own investment criteria which are aligned to an assessment of need, to achieve development impact across a range of sectors.

DFIs play an important role in helping to build markets, mitigate risks and pave the way for other investors to enter new markets.

The G7 DFI group consists of CDC, Proparco (France), Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation, DFC (US), FinDev Canada, DEG (Germany) and CDP (Italy).

The UK Minister for Africa, James Duddridge, said the UK was proud to back this commitment by world leaders at the G7 Summit.

“This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by COVID-19,” Duddridge said.

Also, Nick O’Donohoe, the Chief Executive Officer, Centres for Disease Control and Prevention (CDC) Group, said the patient, high quality capital DFIs provided was urgently needed if African economies were to rebuild quickly from the impact of the pandemic.

“CDC is committed to building long term investment partnerships in Africa that fuel sustainable private sector growth in support of the UN’s Sustainable Development Goals,” O’Donohoe said.

Werner Hoyer, President of the European Investment Bank (EIB), said the EIB welcomed G7 leadership to enhance support for high-impact investment across Africa during and after the pandemic.

“Last year, the EU Bank’s engagement in Africa, as part of Team Europe, represented the largest ever support for climate action and investment in fragile states in 55 years of EIB operations on the continent.

“We stand ready to cooperate further with African and multilateral partners to tackle both COVID-19 and accelerate the green transition in Africa,” Hoyer said.

Also, Makhtar Diop, IFC’s Managing Director, said ensuring an inclusive and sustainable recovery for people, businesses and economies across Africa, in coordination with IFC’s development partners, was at the core of the corporation’s development mandate.

“We know that the private sector will play a major role in financing Africa’s future by creating millions of jobs that are essential to ensuring sustained economic growth and poverty reduction.

“We, therefore, welcome this important partnership and are proud to provide financing and to work with partners to help create the right conditions to bring more private investment to Africa,” Diop said.

Similarly, David Marchick, Chief Operating Officer of U.S. International Development Finance Corporation (DFC) said investing more in Africa, under President Biden’s leadership, was a top priority for DFC in fulfilling its development mandate.

“DFC is proud to be doubling down on our commitment to Africa, alongside our G7 and multilateral partners .

”We will continue to prioritise investments in vaccine manufacturing, COVID-19 response, climate mitigation and adaptation, and gender equity on the African continent,” Marchick said.

Dario Scannapieco, Chief Executive Officer, Cassa Depositi e Prestiti (CDP) said closer collaboration among DFIs and multilateral partners was an essential factor in fostering sustainable economic recovery and growth in Africa.

“CDP looks forward to contributing to this strategic partnership, supporting the African continent in developing its entrepreneurial and financial private sector, to unlock its vast, untapped potential,” Scannapieco said.

Also, Solomon Quaynor, Vice President, Private Sector, Infrastructure and Industrialisation, AfDB, said the bank welcomed the global partnership and the opportunity to provide the African voice, as Africa builds back better and boldly.

“The opportunity to create jobs, particularly for youth and women, from a focus on industrialising Africa underpinned by the African Continental Free Trade Area, will be our priority.

“Given the gap between the IMF estimates and what this partnership is committing to, we will seek to crowd-in African development partners.

”As well as African savings from SWFs, pensions, and insurance pools, estimated to have US$1.8 trillion AUM,” Quaynor said.

Furthermore, Heike Harmgart, EBRD Managing Director, Southern and Eastern Mediterranean, said harnessing the potential of the private sector was essential in supporting prosperity in Africa and meeting its development needs.

“In the North African countries where we work, Egypt, Morocco and Tunisia, we have invested over 11.5 billion euros in only nine years.

”It will be focused on boosting the private sector, developing green sustainable infrastructure and promoting youth and women participation in the economy.

“We will pursue our efforts to expand private sector investment opportunities at scale in the region, in close cooperation with other development actors,” Harmgart said.

However, Monika Beck, member of the DEG-Management Board, a German development finance institution, noted that many of the institution’s African partner countries had been affected by the pandemic.

“We quickly developed new services to support private sector SMEs and to help protect jobs and livelihoods.

“In Africa, DEG has always been specifically committed to creating prospects for the young, growing population. Therefore DEG welcome and is proud to be part of the G7 DFI Africa initiative,” Beck said. (NAN)


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Economy /Business

NNPC records crude oil, gas sales of $219.75m in May

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Posts ₦295.72bn from Sale of Petroleum Products
The Nigerian National Petroleum Corporation (NNPC) says it recorded a total crude oil and gas export sales of $219.75m in May 2021, representing 180.29% increase on sales from the previous month of April 2021, Garba Deen Muhammad, Group General Manager, Group Public Affairs Division revealed in a statement.


This is contained in the May 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a press release by the Group General Manager, Group Public Affairs Division of the Corporation, Mr. Garba Deen Muhammad.
According to the report, crude oil export sales contributed $181.19m (82.45%) of the dollar transactions compared with $4.22 million contribution in the previous month, while the export gas sales component stood at $38.56million in May 2021.


The report also showed that between May 2020 and May 2021, the Corporation exported crude oil and gas worth $1.64billion.
In the gas sector, the report showed that natural gas production in the month under review increased by 6.19% at 222.23billion cubic feet (bcf) compared with output in the previous month, translating to an average production of 7,177.53million standard cubic feet (mmscf) of gas per day.


For the period May 2020 to May 2021, a total of 2,898.34bcf of gas was produced representing an average daily production of 7,322.94mmscf during the period.
Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 60.94%, 20.04% and 18.99% respectively.


Out of the 216.29bcf of gas produced in May 2021, a total of 133.56bcf was commercialized, consisting of 44.02bcf and 89.54bcf for the domestic and export markets respectively.
This translates to a total supply of 1,419.83mmscfd of gas to the domestic market and 2,893.66mmscfd to the export market for the month.


This implies that 61.75% of the average daily gas produced was commercialized while the balance of 38.25% was either re-injected, used as upstream fuel or flared.
In the Downstream sector, the report indicates that the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, posted a total sum of ₦295.72bn from the sales of petroleum products in the month of May 2021 compared with ₦220.13billion sales in April 2021.


Furthermore, total revenues generated from the sales of petroleum products for the period of May 2020 to May 2021 stood at ₦2.345trillion where Premium Motor Spirit (PMS) contributed about 99.61% of the total sales with a value of ₦2.336trillion.
In terms of volume, the figure translates to a total of 2.241billion litres of white products sold and distributed by PPMC in the month of May 2021 compared with 1.673billion litres in the month of April 2021.
Total sales of petroleum products for the period May 2020 to May 2021 stood at 18.651billion litres and PMS accounted for 99.69% of total volume.


In May 2021, 64 pipeline points were vandalized representing 39.13% increase from the 46 points recorded in April 2021. The Port Harcourt area accounted for 65% and Mosimi and Kaduna Areas accounted for 30% and 5% respectively of the vandalized points.
NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.
The 70th edition of the NNPC MFOR highlights the Corporation’s activities for the period of May 2020 to May 2021.



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Africa

Federal government to incorporate NNPC board in six months

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President Muhammadu Buhari
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President Muhammadu Buhari said on Sunday he had appointed a board for the NNPC and directed that it should be incorporated within six months, a move that could allow it to sell shares in the future.

The President signed the petroleum bill into law last month which has been in the works for nearly two decades, aiming to overhaul the sector and turn the state-owned oil company into a private firm.

The new oil law requires NNPC to be incorporated within six months, Buhari said in a statement, appointing Ifeanyi Ararume as NNPC chairman and its current Chief Executive Mele Kyari to lead the firm.

Kyari has said NNPC could consider an initial public offering (IPO) within three years. The incorporation could pave the way for NNPC to sell shares.

Buhari said last month that NNPC made its first profit in 44 years in 2020.

Source:(Global World News)


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Economy /Business

Nigerian President approves incorporation Of NNPC, appoints board members

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By Goodluck Ikiebe

President Muhammadu Buhari has directed that the Nigerian National Petroleum Company Limited be incorporated.

He also approved the appointment of the Board and Management of the NNPC Limited with Senator Ifeanyi Ararume as Chairman.

A statement by the Special Adviser to the President on Media and Publicity, Mr Femi Adesina, in Abuja on Sunday, says, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, was appointed Chief Executive Officer.

The statement said that the president acted in accordance with the Petroleum Industry Act 2021.

The statement read, “President Muhammadu Buhari, in his capacity as Minister of Petroleum Resources, has directed the incorporation of the Nigerian National Petroleum Company Limited.

“This is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company.

“The Group Managing Director of the NNPC, Mr Mele Kolo Kyari, has, therefore, been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.

“Also, by the power vested in him under Section 59(2) of the PIA 2021, President Buhari has approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the Company.

“Chairman of the Board is Senator Ifeanyi Ararume, while Mele Kolo Kyari and Umar I. Ajiya are Chief Executive Officer, and Chief Financial Officer, respectively.

“Other Board Members are; Dr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Senator Margaret Chuba Okadigbo (South East), Barrister Constance Harry Marshal (South South), and Chief Pius Akinyelure (South West).


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