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Nigeria’s Dangote refinery gets licence for 300,000bpd crude

Published

1 year ago

November 13, 2023

Months after launching the world’s largest single-train refinery, Nigeria’s Aliko Dangote says he has secured a licence to refine more than 300,000 barrels of Nigerian crude per day, and will also begin to process gasoline soon.

Dangote, who is Africa’s richest man, disclosed in an interview in Riyadh on the sidelines of the Saudi-Nigeria business roundtable that “we don’t want to start our refinery with foreign goods; we want to start with the Nigerian crude.”

“We’re more than ready, and you will see our gasoline products soon,” he added.

The refinery was set to begin production in August but failed to. This raised concerns, as it had missed multiple deadlines over the years. However, Dangote is adamant that “very very soon” his refinery will begin to produce.

Although the Nigerian National Petroleum Company, a shareholder in the project, cannot supply the facility until November, it said in September that Dangote was purchasing oil from trading companies, even though the refinery was built to process light, sweet Nigerian crude.

According to Dangote, whose wealth is estimated at $16.2 billion, the country’s state oil company and other Nigerian producers will supply crude for the production of 27 million litres of diesel, 11 million litres of kerosene, and nine million litres of jet fuel.

Nigeria produced 1.49 million barrels of oil per day last month, the most in nearly two years, after increasing its output by 60,000 barrels per day. As it increases its oil output, the West African country has introduced a new grade of crude called Nembe through a joint venture.

None of Nigeria’s publicly owned refineries has worked to capacity for years, despite several investments to revive them. The failure of both the previous and current governments has contributed to the high level of national anticipation surrounding the Dangote refinery.

The Dangote refinery is expected to generate 12,000 megawatts of electricity and over 135,000 permanent jobs. It would also save Nigeria between $25b and $30b in forex annually. It is expected to give the economy an inflow of $10 billion a year.

Related Topics:DANGOTE REFINERY Featured Nigeria

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

19 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.”