Connect with us

Nation

NNPC Moves To Buy 20% Stake In Dangote Refinery With Bank Loans

Published

on

The Nigerian National Petroleum Corporation (NNPC) has concluded plans to raise bank loans for the acquisition of 20 per cent shares in the $12billion Dangote Refinery.

Contrary to speculation that the shares would be acquired through the Federation Account, the Group Managing Director, NNPC, Mallam Mele Kyari, said negotiations were ongoing with the selected banks.

In an interview with Channels Television, yesterday, Kyari, said the bank loans would be backed by cash flows from the project.

He said the stake which might be worth as much as N19billion is still under valuation, while assuring that the investment would be viable, thus ensuring petrol products security for the country.

Specifically, he said, “The investment is sustainable and that is why the banks have come forward to lend to us, so that we can take equity in this. We are not putting anything at stake.

“The information in the public domain alluding that the investment is inappropriate is not correct. We are very proud that we did.

“This is good for our shareholders, which include 200million Nigerians, who would have also happily bought shares from this refinery.

“But have done so on their behalf. Ultimately, the value will come to the country.

“There’s no way you can watch a business of this magnitude, of this sensitive to run without an embodiment of the national oil company. No country does that.”

According to him, when the Refinery becomes operational with the NNPC owned refineries, the country will become a net exporter of petroleum products across the West African sub-region.

He also disclosed that having successfully awarded the complete rehabilitation of the Port Harcourt Refinery, the contracts for the Warri and Kaduna refineries would be awarded before the end of July, 2021.

Kyari, who acknowledged that the corporation has not managed the refineries well in the past, said when fully rehabilitated, the refineries would be managed by others in line with the agreement reached with banks funding the projects.

“We are not going to take any government money to overhaul these refineries. We are borrowing also on the back of the cash flows of these refineries.

“It means they can deliver commercially. Part of the requirements of the lenders is that we should not operate these refineries.

“We must have operations and maintenance contracts. Practically, these refineries will be run by the lenders”.

Already, the Dangote Fertilizer Limited, which is part of the project, has commenced commercial production of Urea.

Speaking at the commencement of production, June 5, 2021, President of the Dangote Group, Aliko Dangote, had told visitors that the plant, with a capacity to churn out three million metric tonnes per annum of urea, has been classified as the biggest project in the entire fertiliser industry in the world.

Specifically, he had informed the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, and other bankers that, “this Phase 1 of the project, which is estimated to cost $2.5billion, is to manufacture 3mmtpa of urea per annum.

“This capacity will later be expanded to produce multi grades of fertilisers to meet soil, crop, and climate-specific requirements for the African continent.”

According to Dangote, the fertiliser plant would make Nigeria the biggest urea exporting country in sub-Saharan Africa and the biggest producer of polypropylene and polyethylene.

Responding, Emefiele, had also, said, “Nigeria needs between 1million metric to 1.5million metric tonnes of Urea to meet the local demand.

“So, we have the potentials to export at least three to 4million metrics tonnes of Urea to different parts of the world.

“With this latest development, Nigeria has become one of the major producers of Urea in the world. This for me is a story, which no one would have believed would happen in Nigeria.

“Nigeria now ranks amongst the leading countries in the production of Urea in the world. This, for me, is a story that no one would have believed will happen in Nigeria.

“Dangote has committed that mechanical completion will be achieved by the end of this year and we are expecting that the refinery will be completed by the first quarter of next year.”

Continue Reading

Nation

Senators Fault Buhari’s Planned Farm Settlements

Published

on

Some senators have expressed concerns over plans by the regime of President. Muhammadu Buhari, to establish farm settlements in each of the 108 senatorial districts in Nigeria.
They noted that any arrangement to acquire land by the Federal Government at the moment without giving details of what it would be used for, might face stiff resistance from various communities.
The President had last month, directed the National Agricultural Land Development Authority to set up the integrated farm estates in 108 senatorial districts nationwide.
Already, the policy has been greeted with criticisms from the leadership of the various ethnic groups in the middle belt, and southern part of the country, describing it as an attempt in disguise, to create grazing areas for cattle.
The Senator representing Edo South Senatorial District, Matthew Urhoghide, said the Federal Government should give details of the project before approaching state governments for land allocation.
He said, “We are in the Senate to represent our people. I know what my people want
“What we quarrel against is open grazing; we are not against ranching. We are not saying that a Fulani man that has a herd of cattle cannot come to the South to do the business of ranching but he cannot come to carry out open grazing.
“Grazing has two effects. It leads to wanton destruction of farmland. You cannot use animal husbandry to destroy crop farming. There are also criminal cases associated with it including murder.
“If the Federal Government is coming to get land in my state for ranching, it is okay because we need beef, which would be richer, when it is from the ranching system.
“However, the government should make its intention very clear on the policy to avoid major clashes and crisis.”
Similarly, Senator Abba Moro, representing Benue South in the red chamber said government could make arrangements for herders to do the business of ranching but not at the  expense of the farmers.
He advised the Federal Government to go to the drawing board and come up with a modern arrangement to make ranching the way to go.
He said, “When government policies are viewed with suspicion, when citizens lack trust in government policies, then something is wrong.
“Until we address the root causes of conflicts between herders and farmers, and genuinely come out with the right way to go through dialogue, any policy that is thrown at the citizens will be looked at with suspicion which would cause some level of tension.

Continue Reading

Nation

Senator Wants Improved Network For Results Transmission

Published

on

The Senate Chief Whip, Sen. Orji Kalu, says  Nigeria requires 95 per cent of national network coverage to enable electronic transmission of election results in the country.
Kalu said this in an interview with The Tide source yesterday in Abuja.
Recall that 52 senators on July 15 voted against electronic transmission of results in the forthcoming general election while 28 voted for and 28 absentees.
The senators insisted that the Independent National Electoral Commission should be compelled to seek clearance from Nigeria Communications Commission (NCC) while the National Assembly would have to approve the verdict of NCC.
Kalu, insisted the current network coverage was inadequate.
“I have never been against transmission of results , I only said we don’t have adequate coverage where we live,this is the issue.
“We have coverage, but it is not adequate.
‘Like Abia North Senatorial District where I come from, there is no adequate coverage, may be 43 per cent coverage, so how are we going to do that.
“ I believe in electronic transmission,but I want to quickly urge the NCC to deploy their technology to ensure wider coverage; I believe in that process because it is transparent.
“ I don’t want to listen to officials who want to buy equipment and make commissions, I am telling myself the truth, if we even have a coverage of 95 per cent it will be okay, but we have below 50 per cent in the entire country.
“I am not talking about my constituency.
“ It wasn’t a party decision to vote against e transmission and not a clique decision, it was out of my conscience.
“ I can only do what I will do that will benefit all Nigerians,” Kalu said.

Continue Reading

Nation

Igbo Stakeholders Decry Absence Of S’East Govs At Forum

Published

on

The absence of four Governors of the South-East in the Southern Governors’ Forum meeting held last Thursday in Enugu has been strongly condemned by members of the Concerned Igbo Stake-holders Forum (CISF). 
The leader of the group, Mr Chukwuma Okenwa told newsmen in Enugu that there was no justifiable reason that would be enough for these governors to be absent in a meeting of such magnitude.
According to him, it was wrong particularly coming at a time when the region is battling socio-economic and security concerns stemming from the sit-at-home order issued by the proscribed separatist group, Indigenous People of Biafra (IPOB).
His words: “The absence of the Governors of Abia, Ebonyi, Imo and Anambra States leaves a lot to question the commitment of these governors to the growth and advancement of the South-East in missing a crucial meeting held within their geopolitical zone.
He further described as very disturbing the conspicuous absence of the Anambra Governor, Chief Willie Obiano, or a representative from the state at the meeting. 
Okenwa said that the body language of the South-East governors in recent times leaves no one to doubt that these governors have magnified their interest above that of the region and Ndi-Igbo in general.
“Their gaze at the forthcoming elections in 2023 is becoming an unbearable distraction for them in delivering their mandate to the people,” he also lamented.
The group, therefore beckoned on Ndi-Igbo, regardless of political party affiliation, to unite and formidably negotiate a favourable space in the political scheme of things.
According to him, when this is done, we will ensure an unhindered growth and development of all Igbos, he added.

By: Canice Amadi, Enugu

Continue Reading

Trending