At the same time, the OPEC Basket dipped 0.58% to close $74.23 while Bonny Light recorded a 5.06% decline to close at $69.54 per barrel.
Nigerian crude oil, Brass RIver and Qua Iboe also started the week bearish with 4.69% loss to close at $71.58 per barrel.
Nigeria’s external reserve dipped by 0.05% on Friday, 17th December 2021 to close at $40.67 billion, which represents a decline of $21.4 million compared to $40.69 billion recorded as of the previous day.
The decline in the country’s reserve level can be attributed to the continuous intervention of the apex bank in ensuring the stability of the exchange rate. The exchange rate at the official window as remained stable in the past four trading sessions.
It is worth noting that the nation’s foreign reserve had gained $5.99 billion in the month of October, as a result of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market.
In the month of November, Nigeria’s external reserve lost $633.47 million in value as against a gain of $5.99 million recorded in the previous month and $2.76 million gain in September 2021. So far in the month of December, the reserve level has lost $517.48 million, while on a year-to-date basis, the reserve gain has reduced to $5.29 billion.
NCDMB, Navy Collaborate to Enforce Oil and Gas Act
By Adedapo Adesanya
The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Navy have reached an agreement to collaborate closely to enforce the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in maritime operations.
The partnership will help curb the use of non–compliant and non–categorized vessels and intercept illegal vessels and non–compliant crew members on oil and gas locations.
The two organisations would set up a high-level committee that would work out detailed modalities for the collaboration and enable both organizations to accomplish their respective mandates.
These decisions were reached during the visit of the Executive Secretary of NCDMB, Mr Simbi Kesiye Wabote to the Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo in Abuja.
According to the Executive Secretary, the board receives alerts regularly via its whistle-blowing portal and would like to investigate such information and recommend genuine cases to the Navy.
Other possible areas of collaboration include support to the board in assessment visits to vessels and provision of information to the board on vessels and tankers plying the Nigerian waters and oil and gas locations.
Mr Wabote indicated that the Navy is well situated to drive the security aspect of the industry’s operations, particularly in securing the nation’s shores against piracy and illegal oil bunkering.
He said the Navy’s role was critical because the bulk of Nigeria’s oil and gas reserves lie along with the coastal areas of the country including major infrastructure and plants for hydrocarbon processing and exports.
He also commended the Navy for its efforts in promoting Nigerian content, notably by engaging the services of indigenous engineers and service companies in the fabrication and maintenance of Navy boats, thereby boosting local content in the industry.
He highlighted the need for closer ties particularly because of the Board’s long-term vision to increase Nigerian Content levels in the oil and gas sector from the current level of about 40 per cent to 70 per cent by the year 2027 as part of the Nigerian Content 10-Year Strategic Roadmap.
He identified the board’s marine vessels development and categorization strategy as one of the core initiatives that would support the actualisation of the 10-year roadmap.
The goals of the marine vessel initiative are to promote the construction and maintain vessels in Nigerian yards, stimulate ownership of marine vessels by Nigerian entities, grow flagging & registration of vessels in Nigeria, deepen Nigerian manning of marine vessels, and develop world-class ship repairs and shipbuilding yard.
He reported that the board had made progress in the various aspects of these objectives such as support for the acquisition of marine vessels by Nigerians via the Nigerian Content Intervention Fund managed by the Bank of Industry (BoI), provision of sea-time training for marine cadets, patronage of in-country dry-docks, and the completion of the feasibility study and site selection for the proposed development of shipyard.
Listing some of the achievements of the board in the past five years, Wabote stated that it had begun the first phase of developing the Brass Island Terminal in Bayelsa State.
The facility will carry out repair and maintenance of large ships and vessels such as LNG LNG carriers, VLCCs and maritime equipment such as jack-up rig vessels.
In his comments, Vice Admiral Awwal Zubairu lauded the Board for the numerous achievements it had recorded in implementing the NOGICD Act and pledged the support of the Nany in deepening stakeholders’ compliance with the NOGICD Act.
He also sought the assistance of the Board in upgrading the Naval shipyard in Lagos, particularly the slipway.
While highlighting the Navy’s milestones in research and development, the Naval chief sought the board’s collaboration in improving the Navy’s R&D capabilities as well as creating a market for their products in the oil and gas industry.
Stanbic IBTC Begins Sale of N20bn Series 3 Commercial Paper
By Dipo Olowookere
Stanbic IBTC Bank Plc has commenced the sale of its series 3 commercial paper under its N100 billion multicurrency commercial paper programme.
The financial institution intends to sell N20 billion worth of the corporate debt instrument to interested investors in a period of one week.
Subscription for the commercial paper commenced on Thursday, January 20, 2022, and will end on Thursday, January 27, 2022, according to details of the exercise obtained by Business Post.
It was gathered that the tenor of the commercial paper is 269 days, maturing on Thursday, October 27, 2022, and it is with a discount rate of 9.00 per cent and an implied yield of 9.64 per cent.
Subscription for the Stanbic IBTC series 3 commercial paper is a minimum of N5 million and subsequent addition of N1 million.
According to the programme memorandum, the net proceeds from the paper would be used solely to support the company’s short-term funding requirements, as part of its asset and liability management strategy for its banking operations.
As for the payment at maturity, the issuer said only noteholders named in the register as at the close of business on the relevant last day “shall be entitled to payment of amounts due and payable in respect of notes.”
Stanbic IBTC Bank PLC emerged from the merger of Stanbic Bank Nigeria Limited with IBTC Chartered Bank Plc in September 2007.
IBTC Chartered Bank Plc was itself a merger of three institutions (Investment Banking &Trust Company Plc (IBTC Bank), Chartered Bank Plc. and Regent Bank Plc.).
Stanbic IBTC Bank offers its clients a wide range of commercial banking products through its 180 branches spread across every state in Nigeria, and via a range of self-service channels powered by sophisticated technology to bring convenient banking to clients.
The lender is also a key player in financial inclusion and is poised to take banking to the doorsteps of its clients in different personal and business categories who desire bespoke banking services.