-
-
-
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 2.0 UK: England & Wales License.
Jul
15
How about another $5 billion for subsidy?
Thanks to soaring crude oil prices, we are receiving significant amount of income from crude oil exports.
Never mind that the government and the economy would have been in so much trouble by now, underlined by significant short fall in projected production, but for the huge price increases in oil.Thanks once again to soaring crude oil prices, and our inability to refine the oil we produce, we are paying increasing amount for petroleum products we import. In response, it has been suggested by the government that it is prepared to subsidise the price of diesel at the pump, in the same way that the prices of petroleum motor spirit (PMS) and kerosene are subsidised. The suggestion came from a recent statement credited to the Minister for State, Petroleum, Odein Ajumogobia, that the government is looking for ways of ameliorating the pace of increases in diesel price…. Read more.
Jul
10
Image via WikipediaIt is probably obvious, by now, that I like BusinessDay. This is their editorial today:
In what seems to be a major policy thrust in international economic relations and in resolving the festering Niger Delta crisis, President Umaru Yar’Adua on Monday, at the meeting of G8 leaders holding in Japan called for global clampdown on trade in stolen crude oil.
The president emphasised that stolen crude oil deserved the same global treatment as that of stolen diamonds.Yar’Adua said measures must be taken to “dismantle the criminal dmension” of the problem in the Niger Delta. And for good measure, he said the problem in the region was being aggravated by international cartels.
The Nigerian leader drew attention to another aspect of the Niger Delta challenge, the criminal aspect, in this case “those who use the cover of militancy to steal our crude oil and engage in all forms of violence.”
We commend the president for drawing attention of the international community to this ugly trend. This is an issue that hitherto had been discussed in hushed tones and privately, too. It is an open secret that Nigeria’s crude is stolen daily, that beyond the official production figures given to meet OPEC quota and local consumption, a lot more is produced through illegal bunkering and from offshore rigs.
According to Freedom House, a US-based oil industry analyst, out of the 1.9 million barrels of crude oil Nigeria produces per day, she loses 10 per cent to oil thieves, part of the proceeds of which are spent on criminal activities in the Niger Delta.
We can draw a parallel with the role diamonds played in the civil wars that took place in Liberia and Sierra Leone in the 1990s. The rebels that waged war in Liberia were able to sustain their rebel activities, which ultimately escalated to become a civil war on account of the money they made from illegal mining and sale of diamonds.
A number of questions, naturally, arise from President Yar’Adua’s submission. Who are those involved? Apart from the militants, who hide under the cover of agitation, are there international thieves helping to fuel the theft of Nigeria’s crude oil?
If they exist, is there a nexus between the objective they pursue and the criminalisation of the Niger Delta struggle?
In all of this, what is the role of the multinational oil companies engaged in oil exploration in the country especially in the Niger Delta region?
There is talk about the use of satellite to monitor offshore oil drilling. Is it effective and if yes, are those in charge giving the Nigerian government the true picture of the situatiion? If they are doing that, has the government taken any steps to address it?
More importantly, does Nigeria have the capacity to monitor offshore exploration activities of the oil companies and enforce compliance to production limits?
Answers to these questions are important as they will point the way to dealing with the issue.
President Yar’Adua chose the right platform to raise the issue. The international oil companies are all from the G8 countries. Their governments will need to do internal checks to ascertain the culpability or otherwise of their companies in this criminal behaviour.
We urge him to quickly take the matter to the United Nations as he has promised. Only concerted efforts at the global level can arrest the situation.
The president’s pledge that the much talked about Niger Delta Summit would hold is reassuring. Resolution of the crisis in that region of the country holds the key to Nigeria’s economic and social transformation.
Related articles by Zemanta
- Nigeria seeks to end ‘blood oil’
- Nigeria pipeline attack forces cut in oil output
- Shell’s future in Nigeria in doubt
Jul
4
At My Bank on Tuesday.
Filed Under News | Leave a Comment
Jul
3
China and Textile Again
Filed Under News | Leave a Comment
China plans to increase tax rebates on textile exports in a bid to support the textile industry, the Beijing Morning Post reported, citing sources.
In May, China’s clothing exports grew 1.1 pct from a year earlier, the slowest rise so far this year, the report said.
Export tax rebates may be raised to 13 pct from 11 pct, while rebates on exported clothing will rise to 15 pct from 11 pct, the report said.
A final decision on the rebates is pending, the report added.
Starting in July 2007, the government cut the industry’s rebate to help contain the trade surplus. Since that time, however, Chinese textile firms’ profits have been falling because of weaker global demand and intense competition, the report said.
And I say, Oh those Chinese.
Jun
2
Update to the Blog
Filed Under News, Trade | 2 Comments
AllAfrica News: Trade- Southern Africa: Will Zim Fully Enjoy FTA Benefits?
- Cameroon: China Invades Country With Cheap, Fragile Goods
- Southern Africa: SADC Free Trade Area Scraps Tariffs
- Botswana: Competition Policy Crucial for SADC-Ps
- Kenya: Oil From Sudan Next Month
- Zimbabwe: Beef Rakes in Over U.S.$35 Million Annually
- Uganda: Go Slow on Buvuma District, Mukwaya
- Kenya: Export of Raw Cashewnuts Banned
- Kenya: Sugar Import Rules to Be Gazetted
- Nigeria: Country Missing in N50.4 Trillion Global Textile Trade
