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Dangote says stake of Nigeria’s oil company in its refinery now down to 7.2%

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According to Aliko Dangote, the owner of Africa’s largest refinery, the Nigerian state-owned oil company NNPC’s stake in its refinery has decreased from 20% to 7.2% as a result of its inability to make the remaining finance payments.

NNPC has opted to cap its shareholding at 7.2%, which it has paid for and was informed to the Dangote refinery, according to NNPC spokesperson Olufemi Soneye in a statement.

The 650,000 barrels per day refinery’s shares were agreed to be purchased by NNPC for $2.7 billion three years ago. The company is currently negotiating another oil-backed loan to strengthen its finances.

However, Dangote informed reporters at a press conference held at the factory on the outskirts of Lagos on Sunday that NNPC had not fulfilled its end of the bargain, as the BusinessDay daily published on Monday.

“NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote was quoted as saying.

In addition to the mounting debt it owes gasoline suppliers, NNPC’s financial reserves have been further eroded by the expense of gasoline subsidies. Because of pipeline vandalism, oil theft, and a lack of investment, Nigeria’s production is limited, making it difficult for the Dangote refinery to obtain adequate quantities of crude locally.

The refinery will have to import American crude to operate at full capacity the following year.

In the first quarter of 2025, according to Dangote, the refinery and a fertilizer plant located in the same complex should go public on the Nigerian stock exchange.

 

The refinery sought to seek a dual listing on the London and Lagos bourses, according to a top corporate official in May.

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Moroccan annual inflation rises to 0.8% in November

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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.

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

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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.”

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