Economy
NNPC Offers $670m for 10,000tn/d Brass Methanol Plant
By Adedapo Adesanya
The Nigerian National Petroleum Corporation (NNPC) has staked $670 million in equity investment for the construction of 10,000 tonnes/day methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL).
The national oil company alongside the Nigerian Content Development and Monitoring Board (NCDMB) and DSV Engineering signed the Final Investment Decision (FID) on Friday.
The facility would be the largest methanol plant in Africa and the first in Nigeria and the construction phase is expected to create 30,000 direct and indirect jobs and additional 5,000 permanent jobs during the operations phase.
According to the financing plan, the project is estimated to cost about $3.5 billion and asides the equity from NCDMB, NNPC and DSV, there is an impressive cast of lenders which include a consortium of Chinese banks led by the China Exim Bank, African Development Bank (AfDB), international commercial banks, regional banks and African institutions and they would be expected to raise 70 per cent of the project cost.
Other agreements that have been firmed up include a Gas Supply Purchase Agreement (GSPA) with the Shell Petroleum Development Company (SPDC) led joint venture, offtake agreements and contracts for Engineering Procurement and Construction and technology provider.
The Executive Secretary of NCDMB, Mr Simbi Kesiye Wabote; the Group Managing Director (GMD) of the NNPC, Mr Mele Kolo Kyari; and the Executive Vice-Chairman of BFPCL, Mr Ben Okoye signed the FID on behalf of their respective organisations.
Speaking at the event, the Minister of State for Petroleum Resources, Mr Timipre Sylva, said the project was part of the strategic efforts to maximize value and monetize the country’s vast gas endowments.
He stated that President Muhammed Buhari had in July 2020 approved the development of the Brass Gas Company with the sole aim of aggregating and monetising all stranded gas in the Brass area, which amounts to over 10 trillion cubic feet of gas, into the processing facilities to be built in the hub.
He expressed confidence that the project would have a significant economic and developmental impact on the country, including support for gas-based industries, revenue generation and import substitution for methanol needs of the nation that is currently 100 per cent imported.
Other economic benefits include foreign direct investment, economic diversification, acceleration of Nigeria’s march to zero gas flaring and community development through the company’s plan to offer one per cent equity to host communities.
In his remarks, the Executive Secretary NCDMB underscored the significance of two Federal Government’s agencies – NCDMB and NNPC catalysing investments in the country.
He added that the project would place Nigeria in the world’s map as one of the top 10 producers of methanol.
He then emphasised that local content can only grow sustainably when there are oil and gas projects, adding that a mega project of this size provides opportunities to utilize local capacities and capabilities built over the years.
He further explained that opportunities provided by the project in job creation, gas utilization, local availability of methanol for primary and secondary users, formed part of the basis of the board’s decision to partner with Brass Fertiliser and Petrochemicals Company Ltd to enhance the delivery of the project.
Mr Wabote also commended Mr Sylva for recording huge achievements in the energy sector, at a time when most nations are unsure of decisions to make amid the COVID-19 pandemic.
He listed some of the Minister’s accomplishments to include the signing of Train-7 FID, Gas Flares Commercialisation, Marginal Field bid rounds, Petroleum Industry Bill (PIB), Refining Roadmap, and others.
The GMD NNPC, Mr Kyari in his comments described the BFPCL as the most third most important project that had taken FID in the last five years.
He stated that achieving FID for the project was proof of the federal government’s commitment to monetise the nation’s gas resources, notwithstanding the challenging investment environment. He pledged the commitment of NNPC to ensure the delivery of the methanol plant on schedule by 2025.
According to him, “The country is blessed with abundant gas resources, over 200 trillion standard cubic feet of gas (tscf) proven, with a potential of over 600 tscf.
“As energy transition processes go on, you must monetize these gases as quickly as possible. NNPC will continue to collaborate with all the strategic partners. We will ensure that feedstock is available for this project and subsequent projects that would happen in the Brass hub,” he said.
On his part, the Executive Vice-Chairman of BFPCL, Mr Ben Okoye said that jobs that would be created from the project would help to assuage the restiveness in the Niger Delta in addition to the development of a new oil and gas city in Brass Island.
By Adedapo Adesanya
The oil market settled lower by 1 per cent on Thursday as traders digested proposed plans for a Saudi Arabia-led maritime coalition to boost defence cooperation around the Red Sea.
Brent futures slipped by $1.71 or 1.88 per cent to $89.03 a barrel, while the US West Texas Intermediate (WTI) crude futures declined by 87 cents or 1.03 per cent to trade at $83.59 per barrel.
Saudi Arabia seeks to lead a coalition to boost defence cooperation in the Bab El-Mandeb Strait, the Red Sea and the Gulf of Aden.
The Saudi defence ministry said 14 states, including Turkey, Pakistan, Egypt, Sudan and Djibouti, have issued a joint statement in support of the proposed multinational maritime defence coalition.
This comes after Iran-aligned Houthi militants in Yemen declared a naval blockade last week on Saudi Arabia, threatening the Red Sea route for its oil exports, an alternative to the largely blockaded Strait of Hormuz. The strait, which normally handles around a fifth of global oil and liquefied natural gas flows, has remained a focal point for oil markets since the US and Israel launched the war on Iran on February 28.
Houthis had attacked Saudi Arabia this week from Iraqi territory in coordination with Iraqi armed groups, reflecting growing coordination among Iran-aligned militias, two officials in the region said. The attacks included strikes on oil facilities in Saudi Arabia’s eastern province, the kingdom’s main crude hub.
Iran and Oman also continued talks on the management of the Strait of Hormuz, after Iran previously ruled out Oman’s proposal for regional joint management of the waterway.
It also denied that it is negotiating with US officials and gave no sign that it was ready to make new concessions over its effective closure of the strait.
Meanwhile, the US military said it had hit dozens of Islamic Revolutionary Guard Corps (IRGC) targets in Iran in an operation launched after it fired ballistic missiles at U.S. forces in the Middle East.
Fresh supply worries also emerged after tankers loading at the Caspian Pipeline Consortium (CPC) terminal headed away from the Black Sea after a vessel was hit during loading at the terminal on Thursday.
A Ukrainian drone attack caused a fire at Lukoil’s Perm refinery that damaged and forced the shutdown of one of its crude distillation units.
By Modupe Gbadeyanka
The federal government has been urged to give all the necessary support to indigenous investors, as they remain Nigeria’s most important drivers of employment, foreign exchange generation and long-term economic resilience.
This advice was given by foremost businessman, Mr Aliko Dangote, when he welcomed the Minister of State for Industry, Mr John Owan Enoh, to the Dangote Petroleum Refinery and Petrochemicals in Lagos recently.
The business mogul noted that efforts must be made to place industrialisation at the centre of the government’s economic strategy, insisting that no nation has attained prosperity without a strong manufacturing base.
“If Nigeria is to achieve sustainable growth and become a trillion-dollar economy, industrialisation must be the foundation. Indigenous investors remain the strongest catalysts for that transformation,” Mr Dangote stated.
He further stated that, “There is no way to create jobs and prosperity without industrialisation,” declaring that, “The greatest attraction for foreign investors is the success of domestic investors. When local investors thrive, they send a powerful signal that the environment is conducive for investment.”
In his remarks, the Minister promised deeper collaboration with the private sector to accelerate industrialisation, job creation and economic transformation.
He also pledged that the Ministry and its agencies would remain strong advocates of the refinery and the broader industrialisation agenda, adding that the government would continue to engage Dangote Industries Limited through the Industrial Revolution Work Group and ministerial roundtables to address challenges facing manufacturers, particularly access to affordable long-term financing.
Mr Enoh described the integrated industrial complex as one of the most significant investments in Africa and a model for the type of industrial development required to drive Nigeria’s economic growth aspirations.
“This facility matters because of what it represents for Nigerian industry, for our people and for the realisation of President Bola Tinubu’s vision of a one trillion-dollar economy,” he stated, noting that the refinery has emerged as a powerful symbol of value addition, industrial competitiveness and Nigeria’s growing manufacturing capability.
The Minister noted that the refinery has fundamentally changed global perceptions of Nigeria by helping to transform the country from a major importer of refined petroleum products into an exporter serving international markets.
“When global supply disruptions occurred, Nigeria was able to export petroleum products to markets in the Middle East and beyond. That is an extraordinary achievement and one that deserves recognition,” he added.
By Bon Peters
The Port Harcourt Area I Command of the Nigeria Customs Service (NCS) on Wednesday, July 29, 2026, handed over a consignment of intercepted expired medicaments to the National Agency for Food and Drug Administration and Control (NAFDAC) in Rivers State.
The command’s spokesperson, Barilule Aanee, an Assistant Superintendent of Customs I, said in a statement that the transfer of the items underscored the strong inter-agency collaboration in safeguarding public health.
The handover was witnessed by representatives of the National Drug Law Enforcement Agency (NDLEA), the Department of State Services (DSS), other security agencies, freight forwarding associations, stakeholders and members of the media.
The Customs Area Controller for the command, Comptroller Salamatu Atuluku, stated that the seizure was a clear demonstration of the agency’s commitment to preventing harmful and prohibited pharmaceutical products from finding their way into Nigerian markets, disclosing that the expired medicaments were intercepted during a joint examination conducted by officers of the command in collaboration with NAFDAC and other relevant agencies.
She added that the consignment contained several cartons of expired pharmaceutical products with a Combined Insurance and Freight (CIF) value of over N50 million.
Ms Atuluku emphasised that the interception prevented what could have resulted in serious public health consequences, as expired medicines posed significant health risks, including treatment failure, drug toxicity and antimicrobial resistance.
She reaffirmed that her organisation “would remain resolute in protecting the nation’s borders against the importation of expired, substandard, falsified and prohibited goods.”
Receiving the items, the Deputy Director of NAFDAC for Port Inspection Directorate, Mr Adepoju Bayo Raufu, commended the customs for its vigilance and sustained partnership in protecting Nigerians from harmful pharmaceutical products.
He assured that the agency would immediately commence the necessary regulatory procedures to ensure the safe disposal of the expired medicaments in accordance with established laws and guidelines.
