VenturesNow

Dangote insists refinery has 500 million litres of petrol to meet Nigeria’s needs

Published

2 months ago

October 30, 2024

Aliko Dangote, the chairman of Nigeria’s Dangote oil refinery, has claimed a 500 million litre gasoline stockpile, refuting claims by some oil marketers that they had to augment Dangote’s supplies with imports to address fuel shortages.

Africa’s wealthiest man claimed to be a guest of the Nigerian President, Bola Tinubu, along with the finance minister, the head of the state-owned NNPC, and oil regulators at a meeting in Abuja on Tuesday.

The goal was to reconsider a policy mandating that NNPC sell crude oil to the Dangote refinery in local naira currency in an attempt to relieve pressure on foreign exchange and assist the massive refinery in obtaining enough crude to meet its 650,000-barrel-per-day capacity.

After the discussion, Dangote explained that he should not be held responsible for fuel shortages in Africa’s top oil-producing nation because his company does not deal in the retail sale of petrol.

He added that it costs him money to keep fuel in storage tanks.

“I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need,” said Dangote.
Two weeks ago, local fuel traders began increasing imports, claiming that the Dangote refinery was unable to meet domestic demand, exacerbating fuel shortages.

In September, the Dangote Oil Refinery in Lagos started processing petroleum to produce 25 million litres per day. The objective is to progressively boost output to 35 million litres per day, which Dangote thinks will be enough to satisfy regional demand. However, the industry regulator stated at an oil conference in Lagos on Monday that Nigeria uses 45 to 50 million litres of petrol every day.

President Tinubu advised stakeholders to concentrate on providing enough petrol for domestic consumption to lessen reliance on imports, according to a government spokesperson’s statement.

In order to settle the naira pricing of oil and refined goods, he also instructed them to use Afreximbank, the financial adviser for the naira crude sale plan.

The refinery was forced to rely on costly imports after Dangote filed a complaint alleging that oil majors were preventing it from accessing locally produced oil by selling it above market value or claiming it was unavailable. Previously, Dangote had to purchase crude on the international market.

The plan to sell crude in naira will continue, according to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, and the government would not meddle in setting the oil industry’s exchange rate.

Related Topics:DANGOTE REFINERY Featured

Click to comment

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

20 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.”