By Adedapo Adesanya
The federal government has given investors waivers for the establishment of 15 modular refineries in Rivers State.
The Commissioner for Energy and Natural Resources, Mr Peter Medee, who announced this development, said the waivers cover the bureaucratic process usually underwent by investors for building such refineries.
Mr Medee explained that the Rivers State Government would not be building the modular refineries but secured the waivers on behalf of investors to get all the necessary documentation in a very short time.
The Commissioner said the waivers was necessitated by the need to set modular refineries as an alternative to artisanal refining, which causes soot and environmental degradation.
He expressed optimism that there will be the availability of petroleum products in the state and for export when the 15 modular refineries come on stream.
“In November 2020, we attended the National Council on Hydrocarbon where we submitted two memos to the council, one of which was on the issue of black soot in the state.
“We made a case that Rivers State was suffering from a high level of environmental degradation, especially black soot caused by artisanal refining and to avert it was to make provision for alternative, which is the establishment of modular refineries. So, we asked for a waiver for modular refineries and it was granted.
“Secondly, if we allow individuals to seek approvals for the establishment of modular refineries, it will take a longer time. So, what we did was to seek these approvals to speed up the process.
“For you to set up a modular refinery, you need numerous approvals such as License to Establish, Authority to Construct and License to Operate; each of these takes a long time to acquire due to bureaucracy and red-tapism.
“So, the bureaucratic process and red-tapism are being waived, the time-lagged from when an investor applied to when the applications are approved is reduced since the Rivers State government has already gotten the waiver, it becomes easier,” he said.
Modular refineries are simplified constructions that require significantly less capital investment than traditional full-scale refinery facilities. Refined products can also be transported quickly and easily anywhere in the world and they come in a variety of sizes with capacities that range from 500 to 20,000 barrels per day.
Nigerian Digital Freight Startup MVX Obtains $1.3m
By Adedapo Adesanya
Nigeria-based digital freight startup, MVX, has announced a $1.3 million seed round to tackle the challenge of financing and booking freight operations in Africa.
Investors in this round included Kepple Africa Ventures, Launch Africa Ventures, Founders Factory and some unnamed angel investors.
The new round is coming after the startup secured a $100,000 pre-seed investment from Oui Capital in 2019 and with the fresh disbursement, MVX wants to ease trade finance and freight shipping in Africa by making the process available online.
According to the Chief Executive Officer, Mr Tonye Membere-Otaji, “We make it easy and convenient for businesses. We handle everything because we have all these service providers in one platform. So, as shippers work with us, MVX works with like seven to ten other service providers.”
Prior to the establishment of the company, Mr Membere-Otaji had worked in the maritime industry but was intrigued by how there was no online marketplace for vessels.
In 2019, Mr Membere-Otaji finally launched the company with CTO Tobi Amusan after securing a $100,000 pre-seed investment from Oui Capital, a pan-African VC firm.
The company was called MVXchange at first and its business model revolved around providing a support vessel booking platform that matched vessel chartering requests made by operators with available Offshore Support Vessels (OSVs).
But in March 2020, the company made a sharp pivot and tweaked its model due to uncertain oil prices and the pandemic.
“We couldn’t see ourselves doing vessel chartering for the long term because the demand for fossil fuels will definitely reduce over the next few decades.
“We wanted to do something scalable, something that was impactful, and something that we could be proud of in the next 20 years,” he added.
This led to the launch of MVXtransit, a digital freight booking platform, helping cargo owners find deals on moving containers across Nigeria.
In April 2021, the company launched MVXpay, a finance and payment solution to provide trade finance for freight operators. However, both offerings are now rolled into one: MVX.
According to the CEO, MVX wants to make freight shipping and trade finance easier for African businesses by bringing booking and deployment processes online.
The startup has expanded beyond Nigeria and claims that merchants from the West African country, as well as Kenya, South Africa, Ghana and Rwanda, can use its platform to move freight in and out of their countries.
MVX charges a commission for the services provided, including trucking, warehousing, shipping, and cargo stuffing.
Nigeria Picks JP Morgan, 7 Others for $6.2bn Eurobond Sale
By Dipo Olowookere
Eight companies have been chosen from a pool of 38 bidders to ensure the successful sale of the $6.2 billion Eurobond to be issued by the Nigerian government.
The federal government led by President Muhammadu Buhari had informed the National Assembly when it presented the 2021 Appropriation Act that the sum of N2.3 trillion ($6.2 billion) would be required to finance the budget deficit.
After the parliament’s approval, the Debt Management Office (DMO) swung into action by asking interested organisations to bid for the transaction through an open competitive bidding process as stipulated in the Public Procurement Act, 2007 (as amended) and 38 responded.
In a statement issued on Wednesday, the debt office said it rigorously evaluated the bids of the companies to ascertain their technical capacities to execute the Eurobond sale.
It said after this process, it found eight of them worthy, with four chosen as international bookrunners/joint lead managers, one taken each as Nigerian bookrunners, financial adviser, international legal adviser and Nigerian legal adviser.
Business Post reports that JP Morgan, Citigroup Global Markets Limited, Standard Chartered Bank and Goldman Sachs were picked as international bookrunners/joint lead managers.
Chapel Hill Denham Advisory Services Limited was taken as the Nigerian bookrunner, FSDH Merchant Bank Limited scaled through as the financial adviser, White & Case LLP was selected as the international legal adviser, while Banwo & Ighodalo was chosen as the Nigerian legal adviser.
In the statement, the DMO said the Federal Executive Council (FEC) has authorised these firms to be part of the Eurobond sale, which should start very soon.
“With the approval of the transaction advisers by FEC, the DMO will now accelerate activities towards the issuance of the Eurobonds,” a part of the statement read.
The debt office further said, “The Eurobonds to be issued are for the purpose of raising funds for the new external borrowing of N2.343 trillion (about $6.2 billion) provided in the 2021 Appropriation Act to part-finance the deficit.
“Whilst the government expects a successful outing, it will be mindful of costs and risks (in terms of tenor and pricing) in determining the amount of Eurobonds to issue.”
“Since the Eurobonds are being issued to part-finance the 2021 budget deficit, the proceeds will be used to fund various projects in the budget.
“In addition, the proceeds will result in an inflow of foreign exchange which in turn, will increase Nigeria’s external reserves and support the Naira exchange rate,” it added.
FEC Okays NNPC 20% Stake in Dangote Refinery for $2.76bn
By Dipo Olowookere
The Nigerian National Petroleum Corporation (NNPC) has been given the approval to acquire a 20 per cent stake in the yet-to-be-completed Dangote Petroleum and Petrochemical Refinery in Lagos.
The state-owned oil agency intends to be a minority shareholder in the company, which has the capacity to refine 650,000 barrels of crude oil daily.
Nigeria is blessed with crude oil but this commodity is not refined in the country despite having four refineries. The oil is taken out and imported as premium motor spirit (PMS) commonly known as petroleum and other derivatives.
The Dangote Refinery located in the Lekki area of Lagos State is expected to change this narrative, though efforts are now being made to rehabilitate the public oil facilities to stop petrol importation.
But before then, NNPC wants to be a part-owner of the private refinery being built by Mr Aliko Dangote, the richest man in Africa, according to Forbes.
On Wednesday, the Nigerian government held its weekly Federal Executive Council (FEC) meeting presided over by Vice President Osinbajo because of the absence of President Muhammadu Buhari, who is currently in London for medical attention.
This issue of the proposed purchase of a 20 per cent stake in Dangote Refinery by the NNPC was discussed and after deliberations, the council authorised the agency to acquire the minority shareholding for $2.76 billion.
Briefing newsmen at the end of the meeting, the Minister of State for Petroleum Resources, Mr Timipre Sylva, disclosed that the transaction would be beneficial to Nigerians.
He also said FEC approved the rehabilitation of both Warri and Kaduna refineries for $1.484 billion, noting that Messers Saipem SPA and Saipem Contracting Limited would do the repair works in three phases of 21, 23 and 33 months.
According to him, 15 per cent of the amount has been paid to the construction firm, clarifying that $897.7 million is for the Warri refinery and $586.9 million for the Kaduna refinery.
“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. The first phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed,” Mr Sylva said.
Like Our Facebook Page
Latest News on Business Post
- Insecurity: Educationist Frowns at Closure of Schools in North August 5, 2021
- Nigerian Digital Freight Startup MVX Obtains $1.3m August 5, 2021
- Global Food Prices Fall Again in July August 5, 2021
- Swiss Business School Honours Monument Distillers CEO August 5, 2021
- Kano Forex Trader in Trouble Over N197m August 5, 2021
- Stanbic IBTC Revamps Abeokuta BTI Correctional Centre August 5, 2021
- FEC Approves Rail to Link Coastal Cities in Six Years August 5, 2021
- Our Approach to Climate Change is Gas Transitioning—FG August 5, 2021
- NSCDC Alerts Nigerians over Fake Recruitment List August 5, 2021
- Mouka Unveils Affordable Eco-Comfy Fibre Mattress August 5, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Feature/OPED2 years ago
Davos was Different this year
Technology8 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Economy5 years ago
How To Identify Fake Naira Notes
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
Economy5 months ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds
General2 years ago
Ikeja Electric Explains How to Get Prepaid Metres via MAP