Last week, Nigeria’s Vice President Yemi Osinbajo unveiled a transition of power plan that has been hailed by figures such as Michael Bloomberg (former three-time mayor of New York City, founder and majority shareholder of Bloomberg), who also appears to be a supporter of blank power. .
Much of the evolved world believes that the ultimate existential risk we face as humans is the risk of climate change, even though much of Western Europe, mainland China, and North America relied on fossil fuels and coal.
In fact, the most ambitious and maximally ambitious goals for the blank transition of power, where President Buhari has also made very ambitious commitments, were at COP22, just a few months before Russia invaded Ukraine. This occasion triggered many disastrous consequences, the greatest of which led to a complete embargo on Russian oil and a quasi-embargo on Russian gas, a move that in turn led to inflation in Europe, to degrees not seen since 1984.
Despite being the thirteenth largest oil producer in the world, Nigeria has failed to take advantage of the generosity that stems from the fact that the price has been above $100 a barrel for nearly six months due to self-inflicted problems, such as:
This West African country has the ninth largest reserve of herbal fuel with reported reserves of 206 cubic feet. a cap value of $7 equivalent to mm of cubic foot popular in Nigeria.
This is because the NNPC, which controls the Nigerian Gas Management Company (NMGC), failed to remove control of herbal fuel prices in the country. from construction infrastructure to compress dry fuel filtered into CNG, or pipeline infrastructure for distribution in the states of Nigeria.
The Vice President’s plan is to create 340,000 jobs by 2030 and 840,000 jobs by 2060. However, attracting $10 billion in year-consistent investments remains an illusion if the following basic disorders are resolved:
This means that since calculating values of $7 per mm of common cubic foot for fuel will produce 105 N ($0. 25) per common cubic meter, the value of fuel that is equivalent to 0. 97 for diesel deserves to naturally stick to the 300% accumulated over the past seven months. in N315 consistent with popular cubic meter. This will attract non-speculative foreign direct investment (FDI) in the structure of pipelines, compressor stations, refuelling plants and CNG trucks needed to encourage the use of fuel as a less expensive and more sustainable means of energy, as well as to decrease the carbon footprint in Nigeria.
Take the example of Emirates Airline’s resolution to avoid flight operations in Nigeria until September 1 and British Airways’ resolution to close shares in the sale of price tickets from Nigeria. It shows what it is like for the tesoro. de a multinational (MNC) or institutional investor to bring long-term non-speculative investments into the country without the promises provided through a controlled futures market in NAFEX.
This is because market makers do not have forward-looking guidance to provide liquidity in the counterparty threat to companies that give a premium to the locking price, to avoid a negative pullback in the currency’s threat curve for exceeding the domestic rate. to return at the time of repatriation of the benefit.
Companies will not benefit from government incentives, such as tax exemptions expressed as pioneering prestige under the National Industrial Tax Relief Act (as amended in 2014) or the Import Duty Exemption Certificate (IDEC) on the threat price yield curve for the repatriation of the source of income. and profits. The only solution on which there is consensus, based on execution styles such as the Egyptian pound that returned in November 2016, is a floating exchange rate style (which eliminates government subsidies on rates).
Over the past seven years, LPG intake increased by 260%, from 400,000 to 1. 04 million metric tons, while the value per kg of cooking fuel increased from 200 N to 800 N due to a depreciation of the naira in the middle. consistent with iodine.
The vice president talks about the migration of other people from rural areas by the use of charcoal (received from the felling of trees) or dual-use kerosene (DPK obtained from the refining of crude), but the government has failed in its number one objective duty to ensure that NNPC integrates one hundred percent of the source of LPG upstream and not imports from Equatorial Guinea and the United States.
To emphasize, Nigeria has those mineral and herbal resources, so it is necessary to have the right frameworks to attract the other layers of investment business to explore it and do import substitution. Importing it, even in the form of absolutely unarmed portions (CKDs) of China or Germany, and granting exemptions to corporations that do so will not replace the fact that there is a replacement rate threat that will be passed on to consumers.
One of the most productive decisions the vice president can make to help the economy is to request a review of Nigeria’s supply chain so he can see how unrealistic his energy transition plan is, even though he may seem very smart on paper. Leading global figure backed the plan, but this begs the question: Did he show Michael Bloomberg the Nigerian supply chain fact sheet?