Bill to cripple OPEC gets Trump’s Whitehouse support, should Nigeria be worried?

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These days, the biggest risk facing the oil market rarely comes from geo-political shocks including chaos in the Middle East – not that this is not a factor still – tweets from Donald Trump, president of the United State has the capacity to send prices reeling as much as a bomb going off in Tehran could.

 

Against the backdrop of Trump’s frequent rants against OPEC for keeping oil prices too high, it was recently reported in the foreign press that a senior member of the Trump Whitehouse, supported the bill that will make it illegal for foreign nations to work together to limit fossil fuel supplies and set prices – the chief task of OPEC – demands more than a cursory introspection.

 

Republican and Democratic lawmakers who can’t even agree on the weather came together and through the House Judiciary Committee passed the No Oil Producing and Exporting Cartels Act, commonly known as NOPEC, clearing the bill for a vote before the full House of Representatives the same day their counterparts in the Senate supported the move.

 

The NOPEC Act was initially and introduced in June 2000 as a congressional effort to address the issue that, under federal law, foreign governments cannot be sued for predatory pricing or failing to comply with US antitrust laws. It would protect consumers against collusion and predatory pricing by foreign governments and international cartels, such as the Organization of the Petroleum Exporting Countries (OPEC).

 

OPEC is concerned

The NOPEC bill has never featured on the agenda of OPEC since it was introduced into the US Congress in 2000 but the organisation has spoken against it publicly. Since 2016 when the influence of shale oil bequeathed unto the oil markets the stability of mercury, and OPEC … Read More...

FG unlikely to meet revenue projections in 2019 budget

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The year 2013 was the last time Nigeria, Africa’s biggest oil producer, hit its projected revenue in the annual budget. This scenario is likely to continue in 2019 as the price of Brent crude, the global oil benchmark, continues to drop, according to analysts. The slowdown in the global oil market has continued in the…

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Censoj expresses concern over funding options, revenue drive for 2019 budgets

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The Centre for Social Justice (CENSOJ) has expressed concern over the government’s revenue and funding options for the 2019 budget, which has been signed into law by President Muhammadu Buhari on Monday, noting that the government still faces stiff revenue generation options on the heels of ‎Nigeria’s heavy reliant on oil revenue resources.
The President signed the N8.91 trillion budget into law in the early hours of Monday, at a ceremony held at the Presidential Villa in Abuja.
Following the signing, the CENSOJ noted that late approval and signing of the budget, coming the last days of the fifth month of the year for a budget that should have started in January was a major source of worry for Nigeria.
“For a country going through a period of economic stagnation marked by growth figures which are outpaced by population growth figures, a little more sense of timeliness and urgency on the path of the executive and legislature would have done the country a lot of good,” Eze Onyekpere, lead partner, CENSOJ, states in a statement.
On the revenue concerns, he states, “We see a central challenge in the realization of the revenue and funding needed to implement the 2019 budget against the background of the revelation by the Minister of Finance that only 55% of the 2018 projections were realised. This follows the trajectory in previous years where the federal government consistently failed to realise budgeted revenue. We are worried that despite the price of crude oil selling above the benchmark price in the last couple of years, we have hardly met the production target of 2.3million barrels a day.”
According to Onyekpere, “The recent disclosure that the country produces less than 2mbpd falls in line with the trajectory of this challenge. The dominance of Read More...

Why Legislature disagrees with Executive on 2019 budget – Dogara

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Speaker of the House of Representatives, Yakubu Dogara, on Monday explained that the Legislature was not bound by law to pass the budget as presented by the Executive.

Dogara, while reacting to a statement credited to President Muhammadu Buhari that the 2019 budget cannot be implemented as passed by the National Assembly, noted that the job of the National Assembly was not to agree with the executive.

“I don’t think any congress in the world does that. By the constitution and design, the Executive informs us what they intend to do and the representatives of the people in the National Assembly decide what is priority since they represent the people,” he said.

Dogara insisted that the problem would remain “a nutty area that we would continue to define the relationship between the Executive and the Legislature.”

“Whether it is Britain or US, wherever it is, there is always a strained relationship because of this issue of budget, because it deals with high-stake distributional issues as to who gets what, which part of Nigeria gets this and that, so it will continually be an issue,’’ Dogara said.

“We should not be defined by those issues, rather we should define those issues by forming consensus. That is the path to progress and we will continue to do that.”

President Buhari had, while signing the 2019 budget into law at the Presidential Villa on Monday, raised issues concerning certain reductions that were made in the budget and some subhead increases that were made by the National Assembly, adding that such alterations would make it difficult for those projects to be implemented.

The President noted that there were ongoing plans to have discussions with the leadership of the National Assembly to make the projects implementable

The President also hinted … Read More...