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Business

Nigeria to spearhead Africa refinery capacity additions by 2024 – GlobalData

Nigeria is expected to drive the refinery capacity growth in Africa by 2024, contributing around 71% of the region’s total growth. 

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Nigeria to spearhead Africa refinery capacity additions by 2024 – GlobalData

Nigeria is expected to drive the refinery capacity growth in Africa by 2024, contributing around 71% of the region’s total growth.

This is according to GlobalData, taking into account planned and announced (new build) projects in Africa by 2024. Nigeria is likely to add 1.5 million barrels per day (mmbd) of refinery capacity by 2024.

READ: Nigeria needs 1.52m bpd capacity to meet petrol demand – NNPC

Basis for the assertion by GlobalData

The company’s report, Global Refining Industry Outlook to 2024 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries,” revealed that Nigeria would add 1.8 million barrels per day (mmbd) of planned and announced crude oil refining capacity by 2024.

  • Of this, 1.1mmbd comes from the planned refineries, while the early stage announced projects will contribute the remaining 0.7mmbd by 2024.
  • It also revealed that refining capacity in Africa is expected to increase by around 55% from 3.7 mmbd in 2020 to 5.8 mmbd by 2024. Of the total capacity additions in the region, 2 mmbd is expected to come from planned projects, while the remaining 0.1 mmbd is likely to come from the expansions of active/operational projects.

READ: Nigeria set to become exporter of refined crude products –IMF

What GlobalData analysts are saying

Oil and Gas Analyst at GlobalData, Amareswari Kanaparthi, noted that:

  • “Nigeria will drive the refinery capacity growth in Africa mostly through new-build projects. The capacity additions are mainly from the planned Lagos I project – one of the biggest upcoming oil refineries in the world with a capacity of 0.7 mmbd. Along with Lagos I, Akwa Ibom III and Mashi are the major refineries, accounting for most of the capacity additions in the country, with a combined total of 1 mmbd by 2024.”

READ: NLC, SERAP disagree over Dangote refinery

Adithya Rekha, Oil and Gas Analyst at GlobalData, submitted that:

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  • “Out of 64 upcoming refineries in Africa, a total of 43 planned and announced refineries are expected to start operations in Nigeria during the period 2020–2024. However, given the delays faced by new refineries in the country, including the Dangote refinery, it remains to be seen how many of these refineries start operations by 2024.”

What you should know

  • GlobalData expects South Africa to be the second largest country in Africa in terms of planned and announced refining capacity additions.
  • It is likely to add 445mbd of refining capacity by 2024. The Coega refinery accounts for most of the capacity additions in the country with 400 mbd and expected to start operations in 2022.
  • Egypt occupies third place in Africa with planned and announced refining capacity of 209mbd by 2024.
  • The Soukhna refinery is the largest upcoming refinery in the country, with an expected refining capacity of 155mbd. This planned refinery is likely to start operations in 2021.

Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

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Business

CBN’s Emefiele vows to reject the continuous importation of maize in Nigeria

The CBN has said that it will oppose all attempts to continue the importation of maize into the country.

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Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 

The Central Bank of Nigeria (CBN) has said that it will oppose all attempts to continue the importation of maize into the country.

This is geared towards encouraging local production as the apex bank believes that maize farmers in Nigeria have what it takes to close the maize demand gap of over 4.5 million metric tonnes in the country.

This was made known by the CBN Governor, Godwin Emefiele while speaking in Katsina on Thursday during the unveiling of the first maize pyramid and inauguration of the 2021 maize wet season farming under the CBN-Maize Association of Nigeria Anchor Borrowers’ Programme.

READ: Nigeria must eat what we produce, agriculture is the way out – Buhari

Emefiele said, “With over 50,000 bags of maize available on this ground, and others aggregated across the country, maize farmers are sending a resounding message that we can grow enough maize to meet the country’s demand.’

He explained that the maize unveiled at the ceremony would be sold to reputable feed processors adding that this would in turn impact positively on current poultry feed prices, as over 60% of maize produced in the country were used for producing poultry feed.

Emefiele said that the apex bank was ready to provide support to the youths that are willing to engage in agriculture and encouraged them to embrace agriculture.

READ: Nigeria secures $1.2 billion loan from Brazil for agriculture modernization

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Speaking at the event, the Katsina State Governor, Bello Masari, said the state had suffered a setback in agriculture as over 60,000 hectares of farmlands were uncultivated due to insurgency, which hindered farmers from gaining access to their means of livelihood.

On his part, President Muhammadu Buhari, who was represented by the Kebbi State Governor, Atiku Bagudu, while unveiling the pyramids, reassured the farmers, processors and other value chain participants, of the support of government towards ensuring that they perform optimally.

What you should know

It can be recalled that in July 2020, the CBN included maize importation to its list of 41 items banned from assessing forex at the official market as it directed all banks/authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country.

The apex bank in its circular said that this measure is aimed at increasing local production of the commodity, stimulating a rapid economic recovery, safeguarding rural livelihoods and increasing jobs.

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Business

FG releases N29.1 billion advance for deployment of Covid-19 vaccines

The FG has announced the release of N29.1 billion to the NPHCDA as an advance for the operational cost of deployment of the Covid-19 vaccines.

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Power: Mambilla Power Project not prioritised by Ministry of Power for 2021 Budget - Finance Minister

The Federal Government has announced the release of N29.1 billion to the National Primary Health Development Agency (NPHCDA) as an advance for the operational cost of deployment of the Covid-19 vaccines.

This is as the government has expressed its commitment to procuring 29.588 million doses of the Johnson & Johnson vaccine through the AVAT initiative, coordinated by AFREXIMBank,

This disclosure was made by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed while speaking at ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar on Friday.

What the Minister of Finance, Budget and National Planning is saying

Ahmed in her statement said, “Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

“Already, the sum of N29.1bn has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1bn represents about 52 percent of the amount required over 2021-22”, she said.

Mrs Ahmed stated at the 18th General Assembly of CABRI that the World Bank has indicated willingness to provide needed facilities in support of the country’s Covid-19 vaccination plan.

Considering key elements of Nigeria’s vaccine financing strategy, she said that the government is working on a supplementary budget to provide for the cost of vaccine procurement and delivery

She said, “The Federal Ministry of Health plans to vaccinate 70 per cent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years.”

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She noted that the nation has received commitments from COVAX for Covid-19 vaccines that could cover 43.1 million of the eligible population, as donations from some development partners.

On the impact of the Covid-19 pandemic and the oil price crash on the Nigerian economy, she noted that prior to the pandemic, implementation of the Economic Recovery and Growth Plan 2017-20, prudent resource management and fiscal policy implementation had resulted in 11 consecutive quarters of GDP growth, with GDP growth rising from 1.91% in 2018 to 2.27% in 2019.

Mrs Ahmed also noted that “the government had begun the process of moving our economy away from its primary dependence on oil for revenues and foreign exchange, and we’re making steady gains in addressing infrastructure and human capital challenges.”

 

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