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Finally, Dangote refinery set to commence operations as first crude shipment arrives

Published

1 year ago

December 9, 2023

Nigeria’s privately-owned Dangote refinery has received its first cargo of 1 million barrels of crude oil from Shell International Trading and Shipping Co. (STASCO).

In a statement released on Friday, Dangote Group said that the first of six million barrels of crude that would allow the refinery to make its first run came from Agbami, a deep water field operated by Chevron (CVX.N).

This will pave the way for the refinery to begin production of Premium Motor Spirit, diesel, aviation fuel, and liquefied Petroleum Gas.

The refinery was set to begin production in August but failed to. This raised concerns, as it had missed multiple deadlines over the years.

An agreement was signed in November by Nigeria’s state oil company, NNPC Ltd, to begin supplying the Dangote refinery with up to six cargoes of crude oil beginning this month. NNPC owns 20% of the refinery.

Nigeria is the largest oil producer in Africa, yet it frequently faces fuel shortages. It imports roughly 33 million litres of petroleum products per day, and spent $23.3 billion last year. 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.

“Our focus over the coming months is to ramp up the refinery to its full capacity,” Dangote was quoted as saying in the statement.

Nigeria increased its output by 60,000 barrels per day to produce 1.49 million barrels of oil per day in October, the most in almost two years. Through a joint venture, the West African nation has introduced a new grade of crude known as Nembe as it increases its oil output.

More than 135,000 permanent jobs and 12,000 megawatts of electricity are anticipated to be generated by the Dangote refinery. Additionally, Nigeria would save $25–30 billion in foreign exchange annually. It is anticipated to bring $10 billion annually into the economy.

Related Topics:DANGOTE REFINERY Featured Nigeria

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

18 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.”