The Investment Case for Mini-Grids & Off-Grids in Africa

Mar 6, 2016

Since the mid-1990s, external finance to Africa’s power sector has averaged only around US$600m per year of public assistance, plus a similar volume of private finance, according to the World Bank. Africa’s critical need for development requires rapid and effective solutions. With the proven economic setbacks of poor access to power, the crisis should be…

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The Need for O&G Companies to Focus on ‘Above Ground’ Factors while OPEC Policies Play Out

Nov 25, 2015

Heading into 2016, oil and gas pundits are finding little to cheer as fears of a ‘super-glut’ of global supply combined with decelerating demand begin to become apparent. As the new Government takes steps to clean up some of the governance issues that have created structural inefficiencies and lost money, companies are faced with finding…

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Five Minimum Conditionalities for Development of Greenfield Refineries in Nigeria

Oct 12, 2015

Currently, Nigeria’s value proposition for investors in refining is import parity pricing, 60% crude oil availability, ample regional demand, a deficit local product market especially for petrol and diesel. However, foreign investors are unlikely to invest in refineries in Nigeria, if the government charges international spot prices for crude oil for domestic processing and consumption.…

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Africa’s Price Benchmark Challenge

Aug 12, 2015

When drivers are queuing for hours to refill their cars amid a crippling fuel shortage in Africa’s largest oil producing nation, it is clear that something has gone wrong. May’s fuel crisis in Nigeria, whose repercussions are still being felt, had much to do with unpaid subsidies and a system riddled with inefficiencies and graft,…

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Providing Incentives For The Construction Of Greenfield Refineries In Nigeria

Jul 10, 2015

Nigeria has been particularly dependent upon imports for light products (petrol, diesel and dual- purpose kerosene / aviation kerosene), and long on dark products (fuel oils, etc) for nearly two decades. An estimated $12-15 billion per annum is expended on importing light petroleum products at present. Meanwhile, it would cost about $2.5 billion to construct…

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Deregulating The Refining Business In Nigeria

Jun 27, 2015

The issue of deregulation of petrol (PMS) price seems inevitable, as well as the deregulation of the refining business in Nigeria. However, we need to be clear on what the challenges are and how we go about deregulating the entire downstream petroleum sector. Recently, the NNPC spokesman Mr Ohi Alegbe announced ‘with glee’ that the…

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Investors’ Questions On Mini-Refining Opportunities In Nigeria

Jun 21, 2015

The much awaited policy move on petroleum refining in Africa’s biggest economy has come. Decades of dependence on imported refined products has taken a huge toll on Nigeria’s economy. It technically moved Nigerian jobs abroad, put enormous pressure on the Naira due to foreign exchange and promoted corruption through subsidies, while encouraging product smuggling. In…

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The Issue of Deregulation of the Nigerian Downstream Petroleum Sector

Jun 16, 2015

This subject matter has been on the policy agenda since the General Olusegun Obasanjo’s administration, and is still a major decision point for the new General Mohammadu Buhari’s administration. I have noticed that some commentators on this issue mistake deregulation of fuels prices with the deregulation of the entire downstream petroleum sector (which comprises of…

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The Fuel Subsidy Question

Jun 10, 2015

The new Nigerian government headed by General Muhammadu Buhari will have take a close look at the policy issue of deregulation of the petroleum downstream sub-sector, and the attendant removal of fuel subsidies. On the 1st of January, 2012 the Dr Goodluck Jonathan’s administration announced the removal of subsidies on petrol and set up a…

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Falling Oil Prices: Why Nigeria Needs to Seriously Look at Gas

Mar 29, 2015

It would not be an exaggeration to say that Nigeria’s economy is in danger of collapsing. The  fall  in  oil  prices  have  landed  our  coffers  a  heavy  and  devastating  blow. The  Minister  of  Finance/Coordinating  Minister  of  the  Economy  in  an  interview  with  The  Wall  Street  Journal  recently revealed  that  Value  Added  Tax (VAT), which  presently …

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