Economy
NNPC Not Competing With Dangote Refinery—Kyari
By Modupe Gbadeyanka
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, has said the federal government-owned oil agency was not competing with Dangote Petroleum Refinery.
Africa’s richest man, Mr Aliko Dangote, is building a 650,000 barrel per day refinery at the Lekki Free Trade Zone in Lagos, Nigeria and the project, which was earlier scheduled for completion next month, will now be completed in some months’ time.
Recently, the Minister of State for Petroleum Resources, Mr Timipre Sylva, visit site of the project alongside the Chairman, Senate Committee on Petroleum Downstream, Mr Sabo Nakudu; Chairman, Senate Committee on Services/member, Senate Committee, Upstream, Mr Muhammad Musa; Director, Department of Petroleum Resources (DPR), Mr Ahmed Shakur; Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote; the Executive Secretary, Petroleum Equalization Fund (PEF), Mr Ahmed Boboi; and Mr Kyari; among others.
The Minister, during the visit, pledged support of the federal government towards ensuring the completion of refinery, saying, “This is a very heart-warming moment for all of us as Nigerians.”
“There is no way a project of this magnitude will be going on and government will not be interested. Anywhere in the world, if a citizen of a country has committed so much money into investing in this kind of massive project, government must show interest,” he added.
“I must say now that Dangote Group has turned this project to the story of all of us, we must all support this project to succeed, because the success of this project signals a lot.
“Of course, I am sure that the whole world is looking at the success of this project. Investors all over the world will look at the success of this project and will come to Nigeria to at least also enjoy the benefit of investing here.
“So, we are actually here to assure you, Dangote Group, that as a government, as NNPC, we will support this project as much as we can. You have definitely done very well,” the former Governor of oil-rich Bayelsa State said.
Continuing, he said, “As you can see, the whole team is complete, and whatever your concerns are, whatever your problems are, please feel free to let us know, so that we will together find a solution to problems that you might encounter. Because of course, in project of this magnitude, you cannot expect that you will not have problems.”
Mr Sylva further said the Dangote Refinery was a testament that the country possesses enabling environment for businesses to thrive and added that the success of the project will boost investors’ confidence in the country’s oil and gas project, imploring Nigerians to support the refinery project with a view to ensuring that it creates more value addition to the economy.
Head of NNPC, Mr Mele Kyari, while speaking during the tour, said that “we are not competing with Dangote but complimenting each other to boost production capacity. Our objective is the same, to make Nigeria a net exporter of crude. We can’t do this until we have complementary activities between the private sector and government.”
“ln the next five years, Dangote will add 650,000 barrels, government with 445,000 barrels with others companies coming up to boost capacity,” he said.
In his remarks, Group President and Chief Executive of Dangote Group, Mr Aliko Dangote, stated that, “We believed in Nigeria and if we don’t do it ourselves, nobody will come down to do it for us. There is three per cent growth population increase annually in Nigeria, so, apart from that Nigeria are supposed to meet the needs of West, East and Central Africa in terms of supply.”
Similarly, Mr Devakumar Edwin, the company’s Group Executive Director, Strategy, Capital Projects and Portfolio Development, said that the asset creates market for 11billion per annum of Nigerian crude and can meet 100 per cent of the Nigerian requirement of all liquid products.
He said that Nigeria is Africa’s largest crude oil producer, but lacks refining capacity to meet its own fuel needs.
“The Dangote refinery, which is designed to maximise petrol output, will produce enough to allow for a small surplus of that fuel for export. It will also be able to send a large volume of diesel and jet fuel to international markets,” he said.
Mr Edwin disclosed that Dangote plans to take advantage of local crude supply, adding that it won’t participate in the crude-for-fuel swap deal that is managed by the Nigerian National Petroleum Corporation (NNPC).
“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product. The new refinery has been designed to process varieties of crude from sweet to light crude sourced both locally, and abroad.
“Dangote plans to export its diesel to Europe and gasoline to Latin America, Western and Central African markets,” Mr Edwin said.
He said that evacuation of refined products will be done by sea and through roads.
“We are thinking of investing in vessels. We want to make sure we are not held for ransom by any transport operators. Africa’s largest oil refinery had revealed that it would deliver its fuels to Nigerian consumers via roads and sea ports, and will effectively replace all of Nigeria’s fuel imports once fully operational,” he said.
By Adedapo Adesanya
The Naira further appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, July 6, by N1.92 or 0.14 per cent to end at N1,368.27/$1, in contrast to the previous exchange rate of N1,370.19/$1.
The domestic currency also improved its value against the Pound Sterling in the official forex market during the session by N2.98 to trade at N1,826.91/£1 versus last Friday’s value of N1,829.89/£1, and against the Euro, it gained N5.63 to quote at N1,562.69/€1 compared with the preceding session’s N1,568.32/€1.
In the same vein, the Nigerian Naira gained N1 against the US Dollar at the GTBank FX counter during the session to close at N1,831/$1 compared with last Friday’s quoted price of N1,832/$1, and at the parallel market, it remained unchanged at N1,390/$1.
Monday’s appreciation reinforced the local currency’s relative stability witnessed in recent months under ongoing monetary and foreign exchange reforms by the Central Bank of Nigeria (CBN).
Market analysts linked the sustained improvement to stronger foreign-exchange liquidity in the official market, also citing improved investor confidence, which has supported demand and supply conditions in the FX market.
According to analysts, sustained policy measures introduced by the apex bank have continued to strengthen market transparency and price discovery.
Updated data showed the country’s gross external reserves ended the week at $51.46 billion following successive FX inflows from across multiple sources.
In the cryptocurrency market, Bitcoin (BTC) held in the low $63,000s, despite Strategy’s disclosure this week that it sold 3,588 bitcoin for about $216 million, its largest sale since abandoning its never-sell stance, which the market largely absorbed without breaking the recovery. It appreciated by 0.2 per cent to $63,069.84, while Solana (SOL) improved by 0.8 per cent to $80.94, and TRON (TRX) expanded by 0.2 per cent to $0.3295.
On the flip side, Cardano (ADA) fell by 2.5 per cent to $0.1793, Dogecoin (DOGE) slumped by 2.2 per cent to $0.0749, Ripple (XRP) depreciated by 1.1 per cent to $1.12, Binance Coin (BNB) slid by 0.5 per cent to $578.79, and Ethereum (ETH) slipped by 0.2 per cent to $1,767.90, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
By Dipo Olowookere
The performance indices of the Nigerian Exchange (NGX) Limited rallied by 2.15 per cent on Monday, as investors showed confidence in the market.
During the session, First Holdco gained 10.00 per cent to trade at N60.50, Wema Bank also appreciated by 10.00 per cent to N29.70, Aradel Holdings grew by 9.99 per cent to N1,403.30, NGX Group increased by 9.96 per cent to N129.75, and Veritas Kapital rose by 9.92 per cent to N1.44.
Conversely, NAHCO lost 10.00 per cent to quote at N133.65, Vitafoam Nigeria crashed by 10.00 per cent to N170.10, CAP declined by 9.99 per cent to N1.44, May and Baker depreciated by 5.25 per cent to N37.90, and Chams tumbled by 3.06 per cent to N28.12 per cent.
Business Post reports that 58 shares ended on the gainers’ chart and 14 shares finished on the losers’ table, indicating a positive market breadth index and bullish investor sentiment.
The industrial goods space chalked up 4.89 per cent, the energy index expanded by 4.22 per cent, the banking counter improved by 3.05 per cent, the insurance segment advanced by 2.70 per cent, and the consumer goods sector jumped by 0.57 per cent.
At the close of business, the All-Share Index (ASI) went up by 4937.89 points to 234,178.23 points from 229,240.34 points, and the market capitalisation moved higher by N3.168 trillion to N150.271 trillion from N147.103 trillion.
A total of 538.6 million stocks worth N38.7 billion exchanged hands in 64,065 deals during the session, in contrast to the 414.7 million stocks valued at N25.1 billion traded in 47,106 deals last Friday. This implied that the trading volume, value, and number of deals grew by 29.90 per cent, 54.18 per cent, and 36.00 per cent, respectively.
Zenith Bank was the most active stock on Monday with a turnover of 89.5 million units worth N9.8 billion, GTCO transacted 42.5 million units for N5.4 billion, Fidelity Bank exchanged 35.8 million units valued at N636.4 million, Access Holdings sold 31.0 million units worth N721.0 million, and Jaiz Bank traded 16.6 million units for N133.4 million.
By Adedapo Adesanya
Oil prices settled around pre-Iran war levels on Monday as exports through the Strait of Hormuz recovered further.
Brent crude futures settled at $71.99 a barrel, down 13 cents or 0.2 per cent, while the US West Texas Intermediate (WTI) crude futures finished at $68.55 a barrel, down 14 cents or 0.2 per cent.
Prices have fallen over the past month back to levels last seen in late February, prior to the start of the four-month war that created the biggest energy disruption in history, according to the International Energy Agency (IEA).
Market analysts noted that the downward move is being influenced by earlier stranded tankers managing to exit the Gulf, resulting in an increase in oil on water.
Supplies also continued to increase as the United Arab Emirates raised its crude output to near record highs above 3.8 million barrels per day in June after it quit the Organisation of the Petroleum Exporting Countries (OPEC) to escape production caps, while Saudi Arabia slashed its official selling prices
President Donald Trump said on Monday the US would either reach a deal with Iran or “finish the job,” renewing his threat of military action while Iran projects defiance following the funeral of former Supreme Leader Ayatollah Ali Khamenei. Indirect US-Iran talks ended last week without any public sign of headway toward a lasting peace.
OPEC and its allies, known as OPEC+, agreed on Sunday to further increase output targets by 188,000 barrels per day from August, on top of similar increases for June and July.
However, these increases have remained largely on paper because of the Iran war, which closed the Strait of Hormuz to tanker traffic for key OPEC producers, including Saudi Arabia, Kuwait and Iraq, capping their output.
In the US, stocks of crude oil are high. Strategic Petroleum Reserve fell by 6.2 million barrels in the week ending July 3 to 319.5 million barrels, the lowest level since April 1983, according to data from the Department of Energy on Monday.
Shipping groups Maersk and Hapag-Lloyd will resume some sailings through the Suez Canal, which accounts for 10 per cent of global trade. The Asia-Europe trade corridor was abandoned by most shippers after attacks in the Red Sea by Yemen’s Houthis during the Gaza war.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz4 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking4 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn