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Nigeria: Dangote Refinery, govt panel agree on September fuel rollout

Published

3 months ago

August 20, 2024

A deal has been struck between the Nigerian government’s committee set up to oversee the implementation of crude oil sales to local refineries in naira and the Dangote Petroleum Refinery on the September rollout of Premium Motor Spirit, also known as petrol. Additionally, the Federal Government revealed that starting on October 1, 2024, crude oil would be sold to Dangote Refinery and other local refineries.

This was disclosed on Monday in Abuja during a meeting with the Implementation Committee by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.

A message on the finance ministry’s official X (formerly Twitter) page stated that the purpose of the gathering was to assess the status of important projects.

To ensure a seamless implementation, important roles for stakeholders were outlined at the conference. These included the African Export-Import Bank, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The post read, “The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”

Also, the Chairman of the Technical Sub-Committee and Dr Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, noted that “The first PMS delivery from Dangote is expected next month under existing agreements.”

Additionally, it said that updates on the Port Harcourt and Dangote refineries were given, and that beginning in November 2024, considerable production increases were anticipated.

To ensure that the President’s directives are being carried out as planned starting in September, the minister highlighted the need for transparency and gave the Technical Sub-Committee instructions to finalise specifics and prepare a report.

Remember that on July 29, the Federal Executive Council approved President Tinubu’s request that NNPC stop selling crude oil to regional refineries in foreign currencies.

The Federal Executive Council gave its approval to provide Nigerian refineries, starting with the Dangote refinery, 450,000 barrels intended for domestic use in exchange for Naira.

The action is intended to maintain stability in both the dollar-to-naira exchange rate and the refined gasoline pump price. According to research, Dangote Refinery currently needs fifteen cargoes of crude oil each year.

Related Topics:DANGOTE REFINERY Featured Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

8 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.