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Nigeria’s Dangote refinery needs N1.7tn crude monthly— Presidency

Published

5 months ago

August 3, 2024

Nigeria’s private Dangote Petroleum Refinery will require approximately N1.7tn worth of crude oil every month following a directive by President Bola Tinubu that crude oil be sold to the refinery and other domestic refineries in the local currency, the naira.

This directive mandates the Nigerian National Petroleum Company Limited (NNPCL) to execute the Daley. The disclosure was made by Bayo Onanuga, the Special Adviser to the President on Information and Publicity, through a post on his official X handle.

Onanuga stated that the Federal Executive Council approved the decision on Monday to guarantee the stability of both the pump price of refined fuel and the exchange rate between the dollar and the naira.

According to an examination of data from many industry reports, the Dangote refinery in Lekki, Lagos, which is valued at $20 billion, will consume around N1.7 trillion worth of crude oil every month if the Nigerian National Petroleum Corporation (NNPC) fulfils the President’s directive.

According to data from Statista, a global statistical agency, the mean price of crude oil in 2024 is approximately $83 per barrel.
Alhaji Aliko Dangote, the President of Dangote Industries, has said that his refinery is expected to reach a capacity of 500,000 barrels per day in August, and further increase to 550,000 barrels per day by December 2024.

During the period from August to November of this year, the refinery aims to process 500,000 barrels per day (bpd) of crude oil, and then increase its production to 550,000 bpd in December.

Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, stated that despite Nigeria’s efforts to increase crude oil output, NNPC should make it a priority to comply with the President’s directive.

“It is an order by the President that crude be sold to domestic refineries in naira, and that includes the Dangote refinery. We know that the refinery is massive and requires over 500,000 barrels of crude oil daily, so NNPC and its partners should work harder to meet this demand.

“We just have to try. The government has been talking about ramping up crude oil production. This is the time to deliver on that. The President has given an order and it is up to NNPC and the ministry to meet that order,” he stated.

Related Topics:DANGOTE REFINERY Featured Nigeria

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

9 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

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Libya’s eastern govt accepts petrol subsidy elimination

Published

9 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.