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Nigeria: 25 states to get $500m W’Bank loan

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In Nigeria, 25 state governments will benefit from the $500m World Bank loan to strengthen hydropower and irrigation water resource management.

The Federal Ministry of Water Resources and Sanitation and the Ministry of Power signed a Memorandum of Understanding with the World Bank on Tuesday to execute the Sustainable Power and Irrigation for Nigeria project.

In attendance were Prof. Joseph Utsev, Minister of Water Resources and Sanitation, and Adebayo Adelabu, Minister of Power. Bolaji Tunji, Special Adviser to the Minister of Power on Strategic Communication and Media Relations, announced the development in Abuja.

Niger, Gombe, Sokoto, Enugu, Bauchi, Cross River, Nasarawa, Ekiti, Kebbi, Plateau, Ebonyi, Zamfara, Abia, Kwara, Imo, Taraba, Kano, Delta, Osun, Jigawa, Edo, and Kogi are the states.

The effort seeks to improve dam safety, water resource management, hydropower, and irrigation systems nationwide.

“The Federal Ministry of Water Resources and Sanitation and the Ministry of Power have signed a Memorandum of Understanding to implement the Sustainable Power and Irrigation for Nigeria project.

“The 500 million dollar World Bank SPIN project aims to enhance dam safety and improve water resource management for hydropower and irrigation across 25 states.

In his speech, Power Minister Adebayo Adelabu stressed the partnership’s role in sustainable hydropower development and energy security.

Even though the country has tremendous water resources, just 2% of its 14-gigawatt hydropower potential has been used, leaving huge chances unmet.

He said, “Hydropower currently contributes about 20% of Nigeria’s grid supply, with a potential estimated at 14GW (14000 megawatts) of which only 15 per cent has been tapped.

“This collaboration underscores the Federal Government’s commitment to leveraging our natural resources for sustainable development.

“Through SPIN, we aim to optimize water resources to provide clean and reliable energy while supporting irrigation and agriculture for enhanced food security.”

Adelabu highlighted the MoU as a key step toward harnessing renewable energy, optimizing natural resources, and diversifying the energy mix in line with the Nigeria Energy Transition Plan.

He noted the initiative’s potential to transform the energy landscape and provide sustainable power for millions.

He further stated that under the current federal government administration, measures such as the Electricity Act 2023 are decentralizing the electricity market and enabling subnational governments’ participation.

Adelabu stressed the role of decentralized power systems in enhancing reliability and reducing risks to the national grid.

He also pointed out northern Nigeria’s solar potential, with 8 to 12 hours of daily sunshine, and reaffirmed the commitment to leveraging hydropower and fostering partnerships for a sustainable energy future.

Utsev described the SPIN project as pivotal to boosting food production, creating jobs, and strengthening Nigeria’s economy.

He commended the World Bank as a trusted partner in the country’s development, highlighting the Transforming Irrigation Management in Nigeria project, which concludes in January 2025, as a foundation for innovative solutions in water and agriculture.

As Chairman of the SPIN Preparatory Team, Utsev reaffirmed the ministries’ and partners’ full commitment to the project’s success, expressing confidence in its potential to address Nigeria’s irrigation needs and deliver significant benefits to citizens.

“We are confident that the SPIN project will build on this legacy by boosting food production and meeting the irrigation needs of our growing population,” he added.

“Our collective efforts have brought us to this significant moment, and I am confident that SPIN will deliver the tangible benefits Nigerians are eagerly anticipating,” he said.

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Nigeria: Marketers predict further price cut as another refinery begins operations

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Oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority expect refined petroleum product prices to reduce as another public refinery in Warri begins operations.

The marketers made the prediction when the Nigerian National Petroleum Company Limited launched the 125,000-barrel-per-day Delta State WRPC. NNPCL also wants to export locally refined goods for foreign cash. Last month, the 60,000-barrel-per-day Port Harcourt Refinery in Rivers State began operations.

During an inspection tour of the facility on Monday, the NNPCL Group Chief Executive Officer, Mele Kyari, explained that the inspection aimed to show Nigerians the level of work completed so far.

During a tour with NMDPRA CEO Farouk Ahmed and NNPC Board Chairman Pius Akinyelure, Kyari said that while facility repairs were not yet 100% complete, refining operations had begun and would produce straight-run kerosene, diesel and naphtha.

In a statement commemorating the milestone, President Bola Tinubu stated the plant is functioning at 60% or 75,000 barrels per day.

Kyari said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”

Since some of these goods would be shipped to foreign markets, he said, the reopening of the Warri refinery will help the country become a net exporter of petroleum products.

“Secondly, this plant had three stages; we have started plant one, which we call Area One. It can produce AGO (diesel), kerosene, naphtha, and a blend of crude oil. These are high-grade quality products required in the country, and we may need to export them. So this will give us cash, this company will make money and the promise of Mr President that this country must be a net exporter of petroleum products is already happening. Some of these products will go into the international market.

“Most importantly, I must put on record that Mr President believes that we can get this to work and get them to start and gave us the charge that we must start all three refineries. It’s already happening; we have started the 60,000 barrels per day refinery, and Area One of the Warri refinery is already working. Other plants that would produce PMS are being streamed and they would also come alive.

Mustapha Zarma, the Independent Petroleum Marketers Association of Nigeria’s National Operations Controller, stated that the rivalry in the downstream oil industry will become more fierce.

There will undoubtedly be a further decrease in pricing if the plant begins producing goods in bulk, he stated. This is because the market will ultimately be influenced by market forces and there will be fierce rivalry.

Until recently, none of Nigeria’s publicly owned refineries has worked to capacity for years, despite several investments to revive them. The failure of the government to revive them contributed to the high level of national anticipation surrounding the Dangote refinery whose operations appear to have revolutionalised the industry.

The refinery will concentrate on manufacturing and storing essential goods, such as heavy and light naphtha, automotive petrol oil and straight-run kerosene.

The country’s first fully owned refinery, the WRPC, was put into service in 1978 and is situated in Warri, Delta State, Nigeria. It was first built to process 100,000 barrels of crude oil a day, but in 1987 it was updated to process 125,000 barrels.

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Kenya: Consumer inflation rises to 3.0% from 2.8%

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Kenya’s statistics agency said on Tuesday that Kenya’s consumer price inflation increased slightly to 3.0% year-over-year in December from 2.8% the previous month.

According to a release from the Kenya National Bureau of Statistics, monthly inflation was 0.6%, down from 0.3% in November. Kenya aims to have a medium-term inflation rate of 2.5% to 7.5%.

With inflation under control, Kenya’s central bank said there was an opportunity for looser policy to assist economic development, lowering its benchmark lending rate by a larger-than-expected 75 basis points to 11.25% on December 5.

 

Kenya’s GDP expanded by 5.2% in 2023, up from 4.8% in 2022, thanks to a recovery in agriculture and a modest increase in services. Household consumption accounted for 70% of the growth on the demand side, while services and agriculture accounted for 69% and 23% of the growth, respectively, on the supply side.

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