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Nigerian oil firms charged to set aside risk funds


Nigerian National Petroleum Corporation has said that national oil companies should set aside risk funds to minimise the impacts of unforeseen events.

This statement was made by Umar Ajiya, NNPC’ s Group Executive Director, during a dialogue on responses by governments and the oil industry to the COVID -19 pandemic in the extractive sector, hosted by the African Development Bank’s African Natural Resources Centre and the African Legal Support Facility focused on South Africa, Ghana, Nigeria and Kenya.

Nigeria’s heavy reliance on oil revenues, oversupply and the dramatic fall in demand had impacted its economy, Ajiya said.

In a statement issued on Friday by an official in the AfDB’s Communications and External Relations Department, Kwasi Kpodo, Ajiya was quoted as saying, “The Federal Government has had to cut its expenditure and reschedule debt, where necessary.”

The AfDB said the dialogue brought together policymakers and stakeholders to evaluate the effectiveness and sustainability of the COVID -19 responses and measures in focal countries.

In his remarks, the Advisor to Ghana’s Lands and Natural Resources Minister, Ben Aryee, predicted a brighter outlook for the Ghanaian gold sector in 2021.

He stated that “Gold has become a safe-haven and an investment of choice for many investors, as gold prices continue to increase due to economic uncertainty,”.

Ghana plans to inaugurate a $ 400m to $500 m Initial Public Offer at the London Stock Market in October, in a bid to take advantage of the precious metal’s strong performance this year.

The Acting Secretary of Petroleum at the Ministry of Energy and Petroleum in Kenya, James Ng’ang ’a, said the COVID -19 pandemic had led to difficulties in contract negotiations with oil and exploration companies.

The Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, called on mining companies to establish good relationships with communities, which they could leverage on in the event of a crisis.

Several economies in Africa are sustained by the extractive industry, with most national budgets dependent on mining and petroleum exports.

The Director, UNECA, Central Africa, Antonio Pedro, and the Executive Director, South Africa Resource Watch, Claude Kabemba, in separate presentations, urged governments and industry players to implement the Africa Mining Vision fully to curb the impact of the pandemic on the sector.

Source PUNCH
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