Crude oil prices fall to its lowest in 2018

Crude oil price in the international oil benchmark has fallen to
its lowest level this year.

Brent crude, which determines oil price in Nigeria fell by $3.80
to $58 per barrel from $86.74 per barrel early last month.

The Managing Director of Financial Derivatives Company Limited,
Bismarck Rewane, said government would need to defer some projects
since the country’s trade surplus would reduce, and external
reserves would be under threat.

The Director-General, West African Institute for Financial and
Economic Management, Akpan Ekpo also said the drop in oil price
would lead to sharp declines in government revenue and foreign
exchange earnings.

Related

Nigeria , Japan Sign $21M Pact to rehabilitate Lagos
Transmission Substation

The Federal Government on Friday, in Abuja signed a grant aid
project for Emergency Rehabilitation and Reinforcement of the Lagos
Transmission Substation.

The Honourable Minister of Budget and National Planning Senator
Udoma Udo Udoma signed on behalf of the Federal Government of
Nigeria while the Japanese Ambassador Extraordinary and
Plenipotiary to Nigeria, Mr.Yutaka Kikuta signed on behalf of the
Government of Japan.

The Minister said the project is donated by the Japanese
Government at the cost of two billion, three hundred and forty-
nine million Japanese Yen (Y 2,349,000,000 – USD 21.088
million).

Senator Udoma also stated that attaining power self sufficiency
is indeed one of the goals of the Economic Recovery and Growth Plan
(ERGP).of the Federal Government. “As you know the ERGP sets out
our four year plan for the transformation of our country. The ERGP
aims to restore growth, invest in people and build a globally
competitive economy. But not just to restore growth, but a growth
that is diversified, inclusive and sustainable. Amongst its
execution priorities is the attainment of energy self sufficiency
in power and petroleum products”.

He recalled that in 2016, Nigeria had signed an Exchange of Note
(E/N) for Emergency Improvement of Electricity Supply in Abuja with
the Government of Japan, a project that has been completed and now
contributing to stable power supply in Abuja. He added that Japan
had equally played a role in the design of a master plan study on
National Power System Development in Nigeria.

The Japanese Ambassador in his remarks disclosed that electric
power is key to industrialization for any country as power supply
is one of the factors foreign investors consider. Adding that
economic position of Lagos state as a commercial and industrial
center of Nigeria underlines strategic importance of this project
to strengthen power infrastructure.

Mr. Yutaka noted that “The focus of power sector is in line with
one of Japanese’ principles of TICAD process towards African
countries’ economic and social development. He then informed that
in 2019, the Government of Japan will host TICAD 7 meeting in
Yokohama where leaders from Nigeria and other African countries are
expected to discuss ways to promote further development of the
African continent and how Japan can contribute to the process”.

Earlier in his remarks, the Permanent Secretary of the Ministry,
Mr. Dr S. Odewale lauded the Japanese government for their support
and called for more collaboration especially on human resource
development.