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CBN to provide financial facility for Dangote Refinery

Governor of the Central Bank of Nigeria, CBN, said the CBN will provide a financial facility for the ongoing Dangote Refinery project.

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Organisation of Petroleum Exporting Countries, OPEC, Dangote Refinery, Ghana, Crude oil, oil and gas, forex, Africa, Nana Akufo-Addo, Global Data, China, Global refining

Nigeria’s apex bank, the Central Bank of Nigeria, CBN, is set to provide a financial facility for the ongoing Dangote Refinery project, to the tune of N75 billion.

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, disclosed this yesterday in Abuja while answering questions from journalists during the just concluded Monetary Policy Committee (MPC) meeting.

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While the nature of the financial facility is not exactly clear at the moment, Mr Emefiele did mention that Aliko Dangote has already invested about 50% of the $9 billion dollars needed to complete the project . The remaining 50% will be sourced as loans from both local and foreign lenders.

The N75 billion capital facility from the Central Bank of Nigeria will possibly make up a part of the loans.

The CBN Governor, who recently went on a tour of the refinery, also described it as “the biggest refinery I have ever seen” as it is supposedly about ten times more the size of Victoria Island, Lagos.

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Africa’s richest man, Aliko Dangote, has invested a lot already in the project which is expected to be completed next year.

Just last week, the company received shipment of the Fluid Catalytic Cracking equipment, a major refinery equipment which is probably undergoing installation at this time.

Upon completion, it will refine an average of 650,000 barrels of crude. As such, the refinery will go a long way towards meeting local demands for petroleum products.

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The company will also export its refined products to other African countries, hence serving as a major source of foreign exchange for the country. As we reported last year, some oil distributors in places like Ghana and elsewhere have already begun pledging their patronage in readiness for the commencement of the refinery’s operations.

Note that although Nigeria is one of the world’s leading producers of crude, it currently depends largely on the importation of refined petroleum products to meet local demand. This is one challenge that the Dangote Refinery is positioned to change for good.

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Patricia

Emmanuel covers the financial services sector for Nairametrics. Do you have a scoop for him? Well then, contact him via his email- [email protected]

1 Comment

1 Comment

  1. Kingsley

    April 22, 2020 at 5:54 am

    It is so disappointing that since my business lifetime I have been seeking for loans from the federal government to fulfill a hidden dream which Nigerian are yet to observe in this country till now all my efforts are just declined, how are we to help the masses sustain hard life and living it’s been ages the government legitimate help reach our area here in akwete ukwa east Abia state.
    Am an average Nigerian with a tech value of business knowledge, let the government give me a lift and this benefits of doubt to see if something tangible won’t come out of us this side thanks

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Hospitality & Travel

Passengers can now arrive 90 minutes before departure for domestic flights – FG

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international passengers, Coronavirus: FG enforces immediate screening of travellers at airports with new directive

The Federal Government has announced the reduction of arrival time for passengers from three hours to one hour and a half before departure for domestic flights.

This was disclosed in a tweet post by the Minister for Aviation, Hadi Sirika, through his Twitter handle on Monday, July 13, 2020.

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The minister said that the decision was arrived at after they have reviewed passenger facilitation at the airport.

In the tweet post, Sirika said, ‘’My colleagues and I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travellers are to arrive one hour and half before their departure time for domestic flights. Travellers are advised to check-in online, please.’’

Details later…

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Economy & Politics

Seyi Makinde Proposes N3 billion investment plan for water supply

The local governments in Oyo are advised to submit a list of 10 faulty boreholes in the LG. 

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Seyi Makinde Proposes N3 Billion plan for water supply

The Governor of Oyo State, Seyi Makinde announced the proposal of a N3 billion investment plan dedicated to water supply in rural and urban areas of the state.

Speaking through the Chairman of Rural Water Supply and Sanitation Agency (RUWASSA), Mr. Najeem Omirinde in Ibadan on Monday, he added that N500 million of the N3 billion would be used for repairing broken and faulty state-owned boreholes.

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All Chairmen of each of the Local Governments in Oyo are advised to submit a list of 10 faulty boreholes in the Local governments.

The Oyo State governor also ordered that all new boreholes must be compliant with solar-powered pumps, to enable their longevity and save costs.

Urging residents to patronize the agency if they need to dig up boreholes for water, citing that it would be cheaper if done through the state agency than with private drilling companies.

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Minister of Finance, Zainab Ahmed stated last year that Nigeria needs an estimated N36 trillion annually for the next 30 years to solve Nigeria’s infrastructure problem. The investment, although a tiny fraction of what Nigeria needs is a bold step by the Oyo State government.

 

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Economy & Politics

FG asks UK court for more time to appeal $9.6 billion arbitration judgement

Malami stated that the Evidence of P&ID’s highly orchestrated scam had only recently come to light. 

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FG asks UK court for more time to appeal $9.6 billion arbitration judgement

The Federal Government has approached a UK court to appeal for more time to appeal the $9.6 billion arbitration award against it over the breach of contract with Process & Industrial Development (P&ID) Ltd.

Nigeria has said that it needs more time to pursue its argument that the 2010 gas supply contract with Process & Industrial Development Ltd was a sham.

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The legal dispute with P&ID is coming against the backdrop of the huge drop in the country’s revenue due to the collapse in oil prices globally. Nigeria had applied to US courts in March seeking for documents from 10 banks which includes Citigroup Inc. and JPMorgan Chase & Co, in a bid to prove its corruption allegations.

P&ID, however, has denied any wrongdoing in the whole transaction, arguing that Nigeria missed its opportunity to appeal.

The Nigerian Lawyer, Mark Howard, on Monday, the first morning of a 2-day hearing, said ‘’It is very unusual in a fraud case to discover a single smoking gun. By its very nature, fraud is conducted in secret, which makes it hard to detect and justifies an extension.’

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READ MORE: The effect of the United States’ Shale Oil on Nigeria?

The legal representatives for Nigeria are seeking another hearing for the judge to decide whether any misconduct has taken place and whether it justifies overturning the contract

The Attorney General and Minister for Justice, Abubakar Malami in a statement said, ‘’Evidence of P&ID’s highly orchestrated scam had only recently come to light.’’

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It can be recalled that last year, a UK judge upheld an earlier arbitration award to P&ID, which had accumulated to about $9.6 billion. The arbitration decision was over a failed contract to build a gas processing plant in the Southern city of Calabar.

The Nigerian lawyers disclosed that they have uncovered alleged bribes to government officials and their family members dating back to 2009.

Malami in his court filing on March 24, submitted that ‘’There is good reason to believe that ministers at the highest level were involved in a corrupt scheme to steal money from Nigeria.’’

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