VenturesNow

Dangote says stake of Nigeria’s oil company in its refinery now down to 7.2%

Published

2 months ago

July 16, 2024

According to Aliko Dangote, the owner of Africa’s largest refinery, the Nigerian state-owned oil company NNPC’s stake in its refinery has decreased from 20% to 7.2% as a result of its inability to make the remaining finance payments.

NNPC has opted to cap its shareholding at 7.2%, which it has paid for and was informed to the Dangote refinery, according to NNPC spokesperson Olufemi Soneye in a statement.

The 650,000 barrels per day refinery’s shares were agreed to be purchased by NNPC for $2.7 billion three years ago. The company is currently negotiating another oil-backed loan to strengthen its finances.

However, Dangote informed reporters at a press conference held at the factory on the outskirts of Lagos on Sunday that NNPC had not fulfilled its end of the bargain, as the BusinessDay daily published on Monday.

“NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote was quoted as saying.

In addition to the mounting debt it owes gasoline suppliers, NNPC’s financial reserves have been further eroded by the expense of gasoline subsidies. Because of pipeline vandalism, oil theft, and a lack of investment, Nigeria’s production is limited, making it difficult for the Dangote refinery to obtain adequate quantities of crude locally.

The refinery will have to import American crude to operate at full capacity the following year.

In the first quarter of 2025, according to Dangote, the refinery and a fertilizer plant located in the same complex should go public on the Nigerian stock exchange.

The refinery sought to seek a dual listing on the London and Lagos bourses, according to a top corporate official in May.

VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.