Finance
Nigeria Largest Refinery ‘s Plan – NY Times Report
Nigeria Largest Refinery ‘s Plan – NY Times Report
Nigeria Largest Refinery ‘s Plan – Mr. Dangote is building a $12 billion oil refinery on 6,180 acres of swampland that, if successful,— could transform Nigeria’s corrupt and underperforming petroleum industry. It is an entrenched system that some say has contributed to millions languishing in poverty and bled the “giant of Africa’’ for decades.
CAPTION: Nigeria Largest Refinery ‘s Plan – Construction workers at the Dangote Oil Refinery, which is being built on the outskirts of Lagos, Nigeria. The $12 billion project is planned as the world’s largest refinery. CreditCreditAkintunde Akinleye/Reuters
It is here in this vibrant metropolis of 21 million people that Africa’s richest person, Aliko Dangote, is undertaking his most audacious gamble yet. Planned as the world’s largest refinery, Mr. Dangote’s project is set in a free-trade zone between the Atlantic Ocean and the Lekki Lagoon, an hour outside the city center. The site employs thousands, and upon completion — Mr. Dangote says in 2020; some analysts suggest more likely in 2022 — should process 650,000 barrels of crude oil daily.
That’s enough oil to supply gasoline and kerosene to all 190 million Nigerians and still have plenty to export. By the end of this year, the facility is expected to churn out three million tons of fertilizer. The production of diesel, aviation fuel and plastics will then follow.
“The construction site is already a huge beehive of activities, with workers, local and foreign, hard at work. It is going to be the largest manufacturing plant of any sort in Lagos,” said Kayode Ogunbunmi, the publisher of City Voice, a Lagos daily newspaper and lifelong Lagos resident.
READ MORE
- Nigerian Crude Oil now Preferred over Russian by Poland
- Nigeria & Other African Countries to Attend TICAD 7
- Eye Opener: Working African Global Trade Wars to its Advantage
Indeed, some 7,000 employees are working around the clock on the site, many arriving by private ferry from the city center. Another 900 Nigerian engineers and technicians are being trained abroad for jobs at the refinery. Mr. Dangote, whose net worth is estimated at $11.2 billion, has had to build a port, jetty and roads to accommodate this project, along with new energy plants to power it all.
Nigeria’s government, despite being a longtime crude oil exporter, has four underperforming and frequently broken down refineries with a combined capacity of 445,000 barrels daily. Those refineries — two in the oil hub of Port Harcourt, one in Warri in the Niger Delta, and the other in the northern city of Kaduna — are all operating at less than 50 percent of capacity.
Which means that even though Nigeria is Africa’s largest oil producer, petroleum for everyday use must be imported. This has spawned fuel importers and diesel traders who have grown extremely wealthy. Nigeria’s government subsidizes fuel imports to keep pump prices low, and this has contributed to Nigeria’s well-documented culture of petroleum industry corruption.
“The failure to produce refined products over the last 25 years has created a huge architecture of graft and corruption around everything,” said Antony Goldman, the co-founder of the London-based Nigeria specialists ProMedia Consulting.
STILL ON Nigeria Largest Refinery ‘s Plan – NY Times Report
Mr. Goldman does political risk analysis in West Africa and has been working in and out of Nigeria for two decades. Corruption, he explained, stems from illegal refineries and the local criminal network that helps transport illegal crude out of the country. Both elements, he said, have not been sufficiently challenged by the government or law enforcement agencies, which has further contributed to Nigeria’s entrenched oil industry corruption.
“A refinery that actually works and can meet Nigeria’s refined product requirement? It’s a game changer,” Mr. Goldman added. But change, no matter how positive, is potentially destabilizing. “These are not people who relinquish things without a fight,” Mr. Goldman said of Nigeria’s fuel import merchants.
READ THE FULL STORY HERE
Author: Eunice Johnson, Abuja
President of the African Development bank, Dr. Akinwumi Adesina, has announced that the bank has secured 15.6bn dollars for the construction of the Lagos-Abidjan highway corridor, which would ease transportation across West Africa.
Adesina made this announcement during the 2021 Africa Investment Forum’s virtual boardroom closing session on Thursday.
The AFDB President said the 15.6bn dollar deal which is the biggest deal for the boardroom is a 46-lane highway corridor which will connect Lagos, Cotonou, Lome, Accra and Abidjan.
According to him, the project would support trade in West Africa, impacting the lives of over 500 million people, reducing transport costs and increasing intra-regional trade volume.
The bank will also be establishing a 1m dollars AFAWA women advisory facility to support women with advisory services.
Read Also: CBN supports Bankers’ Committee $100 million commitment to revamp the National Arts Theatre
Author: Gift Wada, Abuja
THE Debt Management Office on Thursday said Nigeria’s total public debt stock increased to N39.56tn in 2021 from N32.92tn in 2020.
The Director-General, DMO, Patience Oniha, said this at a media briefing in Abuja.
According to her, the total debt includes new borrowings by the Federal Government and the sub-nationals.
She also said that the amount helped in financing the budget deficit, capital projects and support economic recovery.
Oniha said, “Nigeria’s total public debt as at December 31, 2021, was N39.56tn or $95.78bn. The amount represents the total external and domestic debts of the Federal Government of Nigeria, 36 state governments and the federal capital territory.
“The comparable figure for December 31, 2020, was N32.92tn or $86.39bn. The public debt stock for December 31, 2021, includes new borrowings by the FGN and the sub-nationals. For the FGN, it would be recalled that the 2021 appropriation and supplementary acts, included total new borrowings (from domestic and external sources) of N5.49tn to part-finance the deficit.
“Borrowings for this purpose and disbursements by the multilateral and bilateral creditors account for a significant portion of the increase in the debt stock. Increases were also recorded in the debt stock of the states and the FCT.”
She further said that despite the debt increase, the country is still within the total public debt stock to the Gross Domestic Product limit of 55 per cent set by the World Bank and 70 per cent set by the Economic Community of West African States.
Oniha also said that the Federal Government was “mindful of the relatively high debt-to-revenue ratio” and has established certain measures to increase revenues through the strategic revenue growth initiative and the introduction of Finance Acts since 2019.
She said, “The new borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, sovereign Sukuk, and the FGN bonds. These capital raisings were utilised to finance capital projects and support economic recovery.
YOU CAN FOLLOW US ON FACEBOOK
“With the total public debt stock to GDP as at December 31, 2021, of 22.47 per cent, the debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40 per cent. This ratio is prudent when compared to the 55 per cent limit advised by the World Bank and the International Monetary Fund for countries in Nigeria’s peer group, as well as, the ECOWAS convergence ratio of 70 per cent.”
However, findings showed that Nigeria spent N2.93tn on debt servicing payments in 2021, according to the data obtained from the DMO.
Between January and March 2021, Nigeria spent N612.71bn on domestic debt servicing, while it spent $1bn (N415.92bn) on external debt servicing, giving a total of N1.03tn.
From April to June 2021, the country spent N322.7bn on domestic debt servicing and $299m (N124.36bn) on external debt servicing, showing a total of N447.06bn.
From July to September 2021, Nigeria spent N808.49bn on domestic debt servicing and $520.78m (N216.6bn) on external debt servicing, giving a total of N1.03tn.
Between October and December 2021, Nigeria spent N310.5bn on domestic debt servicing, while it spent $286.35m (N119.1bn) on external debt servicing, giving a total of N429.6bn.
The official exchange rate of the Central Bank of Nigeria, which showed $1 =N415.92 as of March 17, was used for the external debt servicing.
Read Also: Ezekwesili Speaks on China’s Loan Grant of $60 Billion to Africa
Nigeria has officially raised 1.25 Billion dollars through the issuance of a seven-year Eurobonds in the International Capital Market (ICM).
The Director-General of the Debt Management Office (DMO), Patience Oniha made this known in a statement on Thursday.
Oniha said that with this feat, Nigeria has become the first African country to access the ICM in 2022.
According to her, the country’s ability to access the Eurobonds at this time was a confirmation of her established presence with the ICM and engagement with investors on a continuous basis.
She said that the proceeds of the bonds would be used to finance the budget and bridge infrastructural deficits.
“The offer was launched at an initial price thought of 8.75 per cent per annum and on the back of strong investor demand, Nigeria was able to reverse the price guidance to 8.5 per cent per annum.
“The order book continued to grow, reaching a peak of four billion dollars,” she said.
She said that the order book included many quality investors in the U.S., Europe and Asia.
“With this strong investor interest the price was tightened at 8.37 per cent per annum, the order book still remained high at 3.67 billion dollars and still retained quality investors,” she said.
She said that Nigerian investors also participated in the offer with a total subscription of 60 million dollars.
She added that the Eurobonds would also strengthen economic recovery and contribute directly and in full to the level of Nigeria’s External Reserves.
Reports Show that the DMO had earlier on Thursday revealed that Nigeria ’s ’total debt stock as at December 2021 was N39.55 trillion.
Read Also: Lebanon Medicine Importers Warn; Imported Drugs Running Out
Female Customs Officer Travels 12 African Countries on Motorcycle
Nigeria Customs, IMF Collaborate to Enhance Service Efficiency
Customs CG Appoints Comptroller Kamal Mohammed as Board Chairman of NCBN Limited
-
Revenue Streams2 years agoCommunication Ministry Gives Zero Allocation to Nipost Out of N137.2billion Capital Votes
-
Customs Corner2 years agoCustoms Emerges Champions of 2022, Male, Female National Volleyball Super Cup
-
Newsroom3 years agoNNPC Blames #EndSARS Protests, As Fuel Queues Return
-
Naija News5 years agoINEC registers 23 new political parties. YES, RAP, UP, 20 other parties
-
Customs Corner3 years agoArea Controller, Murtala Muhammed International Airport Command Passes On
-
Customs Corner3 years agoList of Successful NCS Candidate
-
Naija News4 years agoBREAKING NEWS: Bank Robbery in Isanlu, Kogi State
-
Foreign2 years agoPhilippines’ Duterte Blocks Bill to Register Social Media Users