Hi, I am Caroline Doyle, an associate editor at Horizon Engage. This week, we’re covering some countries with money troubles and others celebrating major wins:
- In Nigeria, the NNPC finally admitted to what everyone already knew: It’s having some serious money troubles.
- One of Cyprus’s energy problems may just have a solution thanks to Energy Minister George Papanastasiou.
- A small town in Argentina gave the green light for a mining project, signaling a new wave of public support for mining.
This week’s Quote of the Week comes from our director of MENA, Andrew Farrand.
Nigeria — NNPC Finally Admits to Money Troubles
In what did not come as much of a shock last week, the Nigerian National Petroleum Company (NNPC) admitted that it is under severe financial strain, enough so that it cannot guarantee a steady fuel supply. Following last month’s protests (with more planned for October), fuel shortages and high prices may intensify the public’s discontent.
On 2 September, the Dangote Group announced it is processing gasoline, but it will not hit the market soon enough to cut prices or queues at the pump. Even though NNPC CEO Mele Kolo Kyari is a friend of — and donor to — President Tinubu and provides him with important northern representation in government, the cost of the public’s anger might soon outweigh their personal and political relationship.
Cyprus — Nicosia May Have Solved One of its Energy Problems
Cypriot Energy Minister George Papanastasiou broke through the deadlock in talks about the Great Sea Interconnector project that hopes to link the electricity grids of Cyprus and Greece. Previously, Greece’s Independent Power Transmission Operator (IPTO), the project’s operator, insisted on consumer payment during the construction phase, which Cyprus refused. To fill this $138mn financing gap, Papanastasiou proposed five years of annual $28mn payments from Cyprus’s carbon tax fund. The IPTO begrudgingly agreed.
President Christodoulides will certainly not be happy with Papanastasiou getting the credit, but if his idea succeeds, he would be hard-pressed to blame him for the deadlock or the LNG import terminal fiasco.
Rio Negro Says Yes to Mining
After 30 years of delays in a region historically against mining development, Ingeniero Jacobacci, a small town in Rio Negro, has given the green light for a gold and silver mining project. Led by Canada’s Patagonian Gold, operations are planned to begin in the coming months, with locals eager to see resulting jobs and prosperity.
20 years prior, Rio Negro’s neighbor, Chubut, opposed mining development and held a referendum to halt a massive gold project. This time around, provincial authorities were careful to involve the local community early on. Even so, there is still some opposition, including from the local indigenous community.
Quote of the Week
Andrew Farrand published an article for the Atlantic Council about the elections in Algeria, just two days away on 7 September. He writes:
“Tebboune is all but certain to win reelection to a second five-year term, disappointing the many Algerians who long for fresh faces and fresh thinking in the country’s leadership.”
He also noted that Algeria has never witnessed a smooth transfer of power in its 62-year modern history.
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