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Nigeria, Saudi Arabia sign refineries, forex support deals

Published

6 months ago

November 11, 2023

Nigeria, an oil-rich West African country, has agreed to multiple investment and cooperation agreements with Saudi Arabia, which include the revamping of Nigeria’s moribund refineries.

According to the agreements that were reached at a bilateral meeting between Nigerian President, Bola Tinubu and Saudi Crown Prince ,Mohammed bin Salman on the sidelines of the Saudi-Africa summit in Riyadh, Saudi Arabia will also provide financial support to sustain Nigeria’s foreign exchange reforms.

Nigeria is looking for more investments to help boost its economy which is struggling due to low foreign exchange, double-digit inflation, high levels of crime, and theft of its main export, crude oil.

Nigeria’s Information Minister, Mohammed Idris, said in a statement that the Saudi government pledged to make “a substantial deposit of foreign exchange to boost Nigeria’s forex liquidity.” In addition, the Saudi government, through Saudi Aramco, would invest in the revamp of Nigeria’s four decrepit state refineries, which are expected to be completed within two to three years, Idris said.

Speaking at the Saudi-African summit in Riyadh, Tinubu assured investors of “some of the world’s highest returns on investment,” according to his spokesperson, Ajuri Ngelale. In addition, he advocated for cooperation in the fight against Islamist militants, such as Boko Haram, and other security threats in the most populous country in Africa.

Both bilaterally and multilaterally, Nigeria and Saudi Arabia have always had a unique relationship. The bilateral cooperation has diversified over the past 60 years to address many areas of shared interest, according to a spokesperson for Tinubu.

None of Nigeria’s publicly owned refineries has worked to capacity for years, despite several investments to revive them. The failure of both the previous and current governments has contributed to the high level of national anticipation surrounding a recently launched Dangote refinery, which has also failed to kick off production after months.

Related Topics:Bola Tinubu Featured Nigeria Saudi Arabia

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World Bank grants Malawi $57.6 million for food crisis

Published

7 hours ago

April 27, 2024

Ifeoluwa Dada

As a response to its food crisis, the World Bank said on Friday that it would give Malawi $57.6 million in “quick release” grants.

“This support comes in the context of the severe food crisis the country is suffering due to El Niño conditions in the wider southern Africa region,” the World Bank said in a statement.

“A series of intense disaster events over the last few years has left almost no time for the country to recover and has resulted in a severe erosion of food security at the national level.”

Malawi is one of the least developed countries in the world. It is ranked 170 out of 187 countries in the 2010 Human Development Index. Almost 16 million people live there, and 90% of them make less than $2 a day. That’s 53% of the total population.

The United Nations Children’s Fund (UNICEF) says that 46,000 children in Malawi are seriously malnourished. In 2023, UNICEF said that more than 500,000 Malawian children were at risk of not getting enough food.

Now, Malawi has a lot of programs in place to deal with things like poverty, and climate change, and to make the business and agriculture more diverse.

VenturesNow

Nigerian oil regulator implements regional fuel standards

Published

2 days ago

April 26, 2024

Ifeoluwa Dada

Nigeria’s oil authority has clarified that the recent changes to diesel fuel sulphur content standards are part of a regional effort to make things more uniform and are not meant to loosen rules for local refineries.

A report from S&P Global last week said that the West African fuel market had changed a lot after Nigeria raised the maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm. This caused worries that the country might be lowering its standards to allow diesel made in Nigeria that is higher than the 200 ppm limit.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on the other hand, said it was only following a 2020 decision by the Economic Community of West African States (ECOWAS) that all of the regions had to slowly switch to better fuels.

Fuels that have a lot of sulfur can hurt engines and make the air dirty. As of right now, the ECOWAS rule lets locally-made fuel have more sulfur until January 2025. After that, a standard of less than 5 parts per million will be used for all oil, whether it is refined in West Africa or brought in from another country.

Farouk Ahmed, the head of the NMDPRA, told Reuters that the new limits are in line with ECOWAS’s choice to require stricter fuel specifications. The new rules will go into effect in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.

“We are merely implementing the ECOWAS decision adopted in 2020,” Ahmed said.

“So a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.

Ahmed said that importers were told that the amount of sulphur allowed was going down, from 300 parts per million in February to 200 parts per million this month. This was done long before the huge Dangote refinery started providing diesel.

Diesel with a sulphur level of between 1,500 ppm and 3,000 ppm could be brought in by importers before.

The switch to cleaner fuels is in line with efforts to protect the environment around the world and makes sure that all area refiners have the same chances.

Nigeria recently had its worst blackout in decades because of a problem with its energy supply. The high cost of alternative energy sources has been a huge problem for both businesses and individuals, with the price of diesel being the most affordable choice for businesses.