Deutsche Bank Luxembourg S.A. has completed a landmark US$3 billion Export Credit Agency (ECA)-backed hybrid corporate financing for Nigeria LNG Limited (NLNG) to develop the NLNG Train-7 Project, Global Legal Chronicle reported on Tuesday.
The NLNG Train-7 is a joint venture owned by Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni.
A press statement issued by global law firm, White and Case LLP, which advised Deutsche Bank Luxembourg S.A. on the deal, said Deutsche Bank acted as Global Facility Agent, International Commercial Bank Facility Agent, K-SURE Facility Agent, SACE Facility Agent, K-Exim Facility Agent and Intercreditor Agent.
“This first hybrid corporate financing for development of an LNG project in Africa sets the benchmark for future LNG facility financings globally and was provided Export Credit Agencies, Development Finance Institutions and over 26 international and local commercial banks,” the statement read in part.
In a related development, the Nigerian Content Development and Monitoring Board (NCDMB) and the NLNG Tuesday formally teed off the Train-7 Project with a meeting on the Engineering, Procurement and Construction components of the project.
Simbi Kesiye Wabote, Executive Secretary of NCDMB, said the virtual event offered a chance to NCDMB officials to clarify some technical issues pertaining to the Nigerian content components of the project.
Wabote described the Train-7 project as record breaking, adding that the journey had been characterised by many firsts, especially in methodology, stakeholders’ awareness and participation as well as speed of completion of the regulatory approvals by the board.
He stated that the signing of the Train-7 contract in the midst of the COVID-19 pandemic was a global record, adding that it provided the country the much-needed boost in the current challenging times.
“We must not just limit ourselves to the Nigerian content levels contained in the Nigerian Content Plan (NCP) and the Nigerian Content Compliance Certificate (NCCC).
“We must push the boundaries so that upon completion, we can brag about the values that the project would have added to the oil and gas industry as well as the country at large,” he said.
Wabote urged the contractors to embrace “we can do it here” spirit with respect to employment generation, trainings for new skills, in-country capacity utilisation, addition of new capabilities, Research and Development as well as uncommon innovation into uncharted territories.
Importation Tariff: Customs May Commence Reduction On Duties Paid On Imported Cars Next Week
The Nigeria Customs has announced that the reduction of duties paid on imported vehicles may commence from next week.
According to a statement by the Comptroller General of Customs, Hameed Ali, while speaking to the news men in Abuja declared that the Agency is expecting an official instruction from the Ministry of finance any moment from now.
Hameed said the idea to reduce the tariff downward was to make business of importation easy for those bringing in cars from overseas.
He maintained that reduction of tariff on vehicle as contained in the finance act 2020 was created by the Commission.
Nigerians To Pay More On Petroleum Products, Power Tariff In 2021 – FG
The Federal government has declared that subsidy for energy has completely been removed from government fiscal plan in Nigeria.
This was contained in a statement by the Honorable Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, while presenting the the breakdown of 2021 budget in Abuja.
The Minister, While presenting the analysis for the N13.588 trillion Federal government budget with the Director General, Budget office, Mr Ben Akabueze, said same removal also applicable to power sector.
The Federal government had already increased the power tariff by 50% from the beginning of the year January 1.
With the new development, Nigerians should be expecting a harder measure on the surge on both the power tariff and more on petroleum product prices in 2021.
Do we begin to experience such increase in a country like Nigeria where oil is been exported to other country of the World?
This is a question begging for an answer.
Discos Records N1.735 Trillion Deficits In Tariffs
The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Prof. James Momoh wednesday disclosed that 11 electricity distribution companies (Discos) have recorded N1.736 trillion deficit in tariffs.
Momoh made the disclosure during the investigative hearing into the privatisation of power assets held at the instance of the House of Representatives Ad-hoc Committee chaired by the Majority Leader, Hon. Ado Doguwa.
He explained that loan of N701 billion was advanced to Nigerian Bulk Electricity Trading Company (NBET) as payment assurance facility to ensure a settlement of 80 per cent and 90 per cent of Electricity Generation Companies (Gencos) and gas supplier invoices to cover obligations in 2017 and 2018.
This was in addition to additional loan of N600 billion given to NBET by Central Bank of Nigeria (CBN) as payment assurance facility covering 100 per cent of gencos’ invoices for the payment for year 2019 and part of 2020, adding that the release of the funds under this tranche is based on deliverables of the power sector recovery programme.
The NERC chairman also added a projected tariffs support worth N380 billion and additional N60 billion for first quarter (Q1) and Q2 of 2021 has been capped by the PSRP financing plan, while federal government is in the process of securing a World Bank loan of $750 million.
On the other hand, the statistics available showed that the 11 discos recorded N1.830 trillion market shortfall between 2015 and 2019.
The breakdown showed that: AEDC recorded N233.077 billion; Benin – N161.452 billion; Eko – N154.853 billion; Enugu – N174.209 billion; Ibadan – N226.408 billion; Ikeja – N203.666 billion; Jos – N115.907 billion; Kaduna – N177.759 billion; Kano – N145.259 billion; Port Harcourt – N165.960 billion and Yola – N71.825 billion, respectively.
Momoh explained that based on the outcome of the baseline study on the level of aggregate technical commercial and collection losses conducted, federal government approved loan worth N213 billion from CBN with a view to paying off the tariffs’ shortfall for all market participants during the interim rules and outstanding legacy gas debts.
On the other hand, out of the N210.626 billion allocation from NEMSF to the Discos as at March 2020, total sum of N189.191 billion has so far been disbursed leaving a balance of N21.435 billion payment.
He added that the federal government is bearing the burden of N20 per kilowatt deficit recorded from the electricity tariff, as against the N50 per kilowatt which every customer ought to pay.
Earlier, the leader of the adhoc Committee, Hon. Hon. Ado Doguwa chided Director General of Bureau of Public Enterprises (BPE) for failing to honour the invitation sent to him.
He directed the BPE Director General to appear before the Ad-hoc within 24 hours, in his own interest.