BUSINESS Researchers discover large quantity of oil in Bida Basin
‘5bn still cut off from mobile broadband’
Nigerian banks have opposed a proposal by Etisalat Nigeria to convert part of a $1.2 billion loan from dollars into naira and want Abu Dhabi telecoms group Etisalat and its other shareholders to recapitalise it instead, a source said.
A banker with knowledge of the negotiations told Reuters that the seven-year syndicated loan, on which Etisalat Nigeria missed a payment, has a dollar portion of $235 million which the telecoms operator wants to convert into naira to overcome hard currency shortages on Nigeria’s interbank market.
“Etisalat is asking for us to convert the dollar component to naira but banks don’t want that option and have told them to talk to their parent to settle the loan,” the source said, adding that regulators favoured the conversion.
The UAE’s Etisalat owns 45 percent of Etisalat Nigeria, while Abu Dhabi’s Mubadala owns 40 percent of the company, which is due to meet its lenders on Thursday for debt talks mediated by Nigeria’s Central Bank and the telecoms regulator.
This meeting came about after authorities agreed with local banks to prevent Etisalat Nigeria, which was not available for comment, going into receivership.
Nigeria has been running short of dollars as a result of lower global prices for oil, its major export. Its economy entered a recession last year for the first time in 25 years.
Most of the 13 lenders involved in the Etisalat Nigeria loan had raised dollars abroad to participate, meaning that further naira weakness would see them receive fewer dollars.
Etisalat, which generates 3.7 percent of its revenues from the Nigerian business, has questioned the rationale of investing more in it and may sell its stake, sources say.
Etisalat had written down the value of Etisalat Nigeria last year to $50 million due to naira weakness, Moody’s said in a note, adding that the default at the affiliate company did not affect the parent’s credit profile.
The Head of Research and Development, Ibrahim Badamasi Babaginda (IBB) University, Lapai in Niger State, Prof. Nuhu Obaje, yesterday said they have discovered large quantity of crude oil deposit at Bida Basin.
He disclosed that the institution had made its findings known to both the Federal Government as well as the Nigerian National Petroleum Corporation (NNPC).
Prof. Obaje said that the management of the university was ready and willing to assist government in further exploration of crude in the area.
This is even as he said that University Research Department has also introduced a technology for quick crude oil discovery and drilling.
The Director of the Research Centre, Prof. Nuhu Obaje, made this disclosure at the exhibition of raw materials and local products, held at Landmark Centre, Victoria Island.
He said, “We have a technology that finds oil faster. We found crude oil at Bida Basin and we used our technology to locate more areas.
“We have communicated it to NNPC and state government and soon, the drilling machine will muster to site. They will use our research and produce oil faster and in abundance. Already, the Niger State Governor, Bello Sani, has written to the Presidency. We are aware that they have acted on it. The ball is in the NNPC’s court because we are waiting for them, although the response has been good so far.”
On the exploration of solid mineral deposits he said, “we are hoping that solid minerals and agriculture will compliment crude oil as we are keying into the Federal Government’s policy of diversification.”
On the presence of the institute at the exhibition Obaje said, “We are here on the vision of our Vice Chancellor, Prof. Mohammed Mefurali, which is to develop research at IBB University.
Speaking on another discovery by the university, the Deputy Director, Dr. Naomi DadiMamud, said they are using oil and dead plants to generate bio-gas.
She said, “My research on bio gas renewable technology was to convert such invasive plants on water bodies, like water lilies, and turn it to something useful. We cut the water lilies and dry it before we convert it to either cooking or chemistry gas. Soon, we will begin to bottle the biogas and sell it commercially.
“Already, with a ton of water lilies, we produce 10,000 cubic meters of bio-gas and our goal in the future is to increase capacity FLIGHT
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