VenturesNow

Nigeria’s Dangote intends to establish a trade division for his Lagos refinery

Published

10 months ago

March 6, 2024

According to six sources acquainted with the situation, Aliko Dangote, the richest man in Africa, intends to establish an oil trading company, perhaps headquartered in London, to assist in managing the supply of crude and other products for his refinery in Nigeria.

The largest trading companies in the world would play a smaller part in the refinery’s operations. These companies have been negotiating for months to give the refinery funding and crude oil in exchange for product exports.

The world’s oil and fuel flows are about to be redirected by the massive refinery that can produce half a million barrels per day, and the trading community is closely monitoring its operations.

Trading sources told Reuters that BP, Trafigura, and Vitol, among others, met with Dangote in Lagos and London in recent weeks to provide loans for the roughly $3 billion in working cash the refinery needs to purchase large amounts of petroleum.

The sources claimed that although the traders wanted the refinery to repay debts with petroleum exports, they have not yet signed any agreements because Dangote fears this would lessen his influence over the business and maybe his profit. In his chase for money and crude, Dangote has also engaged with state-backed companies.

“He is going to try and do it himself,” an industry source told Reuters. Sources told Reuters that the new trading team will be led by ex-Essar trader Radha Mohan. He joined Dangote in 2021 as director of international supply and trading, according to his LinkedIn profile. Two sources said the team was in the process of hiring two new traders.

Other sources quoted by Reuters claim Trafigura has exchanged some crude oil for upcoming gasoline cargoes, while Vitol has paid in advance for some product shipments to assist the refinery in purchasing crude. Vitol and Trafigura, both located in Geneva, declined to comment.

Dangote, whose estimated net worth is $12.7 billion, according to Forbes, did not respond to multiple calls for comment.

The $20 billion Dangote refinery, whose operations were delayed by obstacles such as NNPCL, the state oil company of Nigeria, not being able to provide raw crude,. The refinery took about ten years to build and cost $20 billion, about $6 billion more than estimated. It will take months for the plant to reach full capacity; between January and February, it refined about 8 million barrels of oil.

Related Topics:DANGOTE REFINERY Featured Nigeria

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

14 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”