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.”
Nine Passengers Burnt In Oyo Auto Crash – FRSC
The Federal Road Safety Corps (FRSC) has said nine passengers have sustained varying degree of burns in an auto crash on Ogbomoso-Oyo Expressway.
The Sector Commander in the state, Joshua Adekanye, confirmed the incident in an interview with The Tide’s source in Ibadan yesterday.
He said the accident, which occurred on Saturday, involved a trailer and a truck at Sekona area along Ogbomoso – Oyo Expressway.
Adekanye said nine out of the total 13 people involved in the accident got burnt while four others escaped unhurt.
“The accident happened around 3:30 a.m. on Saturday, and the truck vehicle caught fire while the trailer collided with it.
“The actual cause of the fire in the truck could not be ascertain because it happened at night”, he said.
He, however, said the likely cause of the trailer colliding with the truck might be speeding and wrongful overtaking.
According to him, the burnt victims are being referred to the University of Ilorin Teaching Hospital for treatment, adding that the RS11.31 Ogbomoso and RS11.312 Oolo Commands conducted rescue operation.
“Other agency that carried out the rescue operation are the Fire Service and Odo-Oba Police Division”, he said.
Adekanye called on motorists to shun night travelling, wrongful overtaking and dangerous driving to ensure safety on the road.
Association Lauds Gov Over E-Ticket Revenue Collection
Enugu State Governor, Barr Peter Mbah, has been commended for introducing E-Ticket system of revenue collection, which is aimed at increasing Internally Generated Revenue (IGR) of the state.
The President, Enugu State Markets Amalgamated Traders Association (ESMATA), Chief Stephen Aniagu, who made the commendation in a chat with newsmen in Enugu, expressed happiness that the system has already started yielding fruitful results.
Urging traders in all the markets in the State to cooperate with government by embracing the innovation, Chief Aniagu also expressed satisfaction with the announcement by the State Government that its IGR had increased tremendously from what it used to be before the introduction of the system.
According to him, traders in Ogbete Main Market have already identified themselves with the system, with a view to encouraging the State Government’s efforts at increasing its IGR.
On programmes and projects mapped out for execution by the Governor Mbah-led administration, Chief Aniagu said, “we have already started feeling the impacts of these projects.
“From all indications, Governor Mbah has plans to make Enugu State a role model. We are cooperating very well with the State Government. The relationship between the Governor and traders in the State is very cordial.
“Ogbete traders are fully involved as they have started paying their taxes as and when due. I urge all the traders to key in by ensuring that government revenue goes directly into government Coffers instead of private pockets”.
Continuing, Chief Aniagu further said: “The Governor has always carried along traders in Ogbete and other markets in the State in his programmes.
Fielding questions from newsmen on the level of peace in Ogbete, Chief Aniagu stated that there was relative peace in the market, adding that traders were fully supporting and cooperating with his administration.
He, however, advised traders in Ogbete and other markets in the State not to cheat their customers in any manner, noting that “the importance of carrying out you businesses with the fear of God cannot be over emphasized”.
By: Canice Amadi Enugu
EFCC Boss Vows To Fight Corruption
The Chairman of Economic and Financial Crimes Commission (EFCC), Mr Ola Olukoyede, has pledged to refocus the anti-corruption war by adopting modalities capable of stimulating economic growth and development.
He gave the assurance while addressing members of staff of Ilorin Zonal Command of EFCC, at the Commission’s Office, GRA, Ilorin.
Olukoyede promised a paradigm shift in the agency’s approach to anti-graft war, to make it more proactive and result oriented.
“There is need for us to refocus our attention in EFCC. We need to define our scope of mandate with a view to stimulate the economy of the country.
“The era of stifling and crippling of businesses with unwarranted PNDs is gone.
“We must be able to separate proceeds of crime from legitimate funds and use the instrumentality of our mandate to create wealth and jobs for people.
“We will also use the instrumentality of our mandate to create conducive environment for businesses to thrive for a sustainable economic growth”, he said.
The EFCC boss also pledged to prioritise staff welfare, stressing that he was already in talks with the government for necessary support.
“We have done it before and we are going to do it again”, he assured.
Olukoyede asked officers of the commission to be above board and avoid acts of compromise in their line of duty, stressing, “We owe our nation the sacred duty of making this country free of corruption and crimes”.
He urged members of staff to work together for a good course and see themselves as officers having the same rights and privileges as encapsulated in Section 8 (5) of the EFCC Establishment Act, 2004.
The TIde’s source reports that the executive Chairman had earlier visited the palace of Emir of Ilorin, Alhaji Ibrahim Zulu Gambari, where he called on traditional rulers to deepen their partnership with EFCC.
He called for more cooperation in order to reduce corruption through adequate promotion of ethics, values and behavioral change among their subjects.
“Our royal fathers have a crucial role to play by using your good offices to champion the crusade against corruption among your subjects.
Responding, the Emir of Ilorin, Alhaji Ibrahim Zulu Gambari pledged to continue supporting EFCC and other law enforcement agencies in stamping out corruption and other form of criminalities in the State.
Politics2 days ago
Rivers PDP Chair Renews Call For Peace, Warns Against Divisive Tendencies
News2 days ago
Ogoni Group Mulls Recall Of Lawmakers Over Foiled Fubara’s Impeachment
Rivers2 days ago
‘Leadership, Beyond Accolades, Awards’ …As 17 Bag Leadership Awards
Sports2 days ago
Peseiro Optimistic To Win 2024 AFCON
Business2 days ago
FG Earmarks N100bn For Auto-Gas, CNG Buses, EVs
News2 days ago
Tinubu Appoints New Governing Board, Mgt Team For NCDMB
Nation2 days ago
NPA Clears Air On $852.93m , N1.8bn Audit Query
Politics2 days ago
NYCN Chieftain Harps On Fubara’s Governance Credentials