Economy

NNPC, Chinese Investors Plan 10 Biofuel Plants in Nigeria

Published

6 years ago

05/09/2018

By Dipo Olowookere

The Nigerian National Petroleum Corporation (NNPC) has signed a Memorandum of Understanding (MoU) in China with Nigerian-Chinese consortia towards developing sustainable biofuels in the country.

In a ceremony held at the Nigerian Embassy in Beijing on the sidelines of the ongoing Forum for China-Africa Cooperation (FOCAC) Summit Tuesday, two separate MoUs on the biofuels project development were signed between: NNPC and the OBAX-COMPLANT Consortium on one hand and NNPC and the CAPEGATE-NANNING Consortium on the other hand.

Speaking shortly after signing the dotted lines on behalf of the corporation, NNPC Group Managing Director, Mr Maikanti Baru, said the MoUs signing was aimed at implementing the Federal Government’s mandate on clean, alternative and renewable energy programmes, particularly automotive biofuels production nationwide.

“The aspiration for the exploitation of renewable fuel resources in Nigeria is to implement our nationally determined contributions to the Paris Agreement; part of which requires the blending of 10% by volume of fuel-ethanol in gasoline and 20% by volume of biodiesel in automotive gas oil (diesel) for use in the transportation sector,” Mr Baru stated.

He added that for a country like Nigeria with a daily consumption of over 65million litres of automotive fuels, it was easy to see that enormous volumes of fuel-ethanol and biodiesel would be needed to meet this obligation.

According to the GMD, meeting and sustaining the target requires strategic investment in more than ten (10) large biofuels complexes across the country.

Mr Baru, who noted that the execution of the two MoUs would help develop the ﬁrst biofuel production complex in Nigeria, revealed that before the end of the year, the development of not less than three other complexes would commence in the country.

He said NNPC was poised to domesticating the alternative fuels production towards a thriving commercial Biofuels Industry which would not only create jobs and rural wealth for the populace but would also complement international efforts towards curbing global warming.

He described the renewable energy project as dear to the Muhammadu Buhari administration, saying that was why, shortly after assuming office as GMD, he made it one of the cardinal programmes of his corporate vision of 12 Business Focus Areas (BUFA).

Mr Baru said as part of NNPC’s expanded programme on providing renewable energy solutions, the corporation also plans to power all its retail outlets by means of Solar PV facilities, as well as develop grid and off-grid solar power as a business and contribution to the clean fuels initiative of the Federal Government.

While assuring the two consortia that Nigeria’s investment climate under President Buhari was transparent and conducive to willing Investors, Mr Baru charged them to commence the implementation of the biofuels projects without any further delay as preliminary studies on the programme show clear ﬁnancial indices that are very encouraging for business growth.

The NNPC biofuels programme centres around sugarcane-fuel ethanol production; cassava-fuel ethanol production as well as oil palm-based biodiesel production.

While OBAX and CAPEGATE are two Nigerian companies, COMPLANT and NANNING are two reputable companies incorporated in China.

Speaking on behalf of the OBAX-COMPLANT Consortium, President of COMPLANT, Mr Gu Haitao, expressed delight over the MoU signing, saying he hope it “would culminate into helping NNPC achieve Nigeria’s renewable energy aspirations.”

Also responding on behalf of the CAPEGATE-NANNING Consortium, Chairman of the NANNING Board, Mr Qin Chun Lin, said they looked forward to a great partnership with the NNPC on biofuels production.

Earlier in his remarks, the Deputy Chief of Mission at the Nigerian Embassy in China who supervised the MoUs signing, Ambassador Aliyu Bakori, said with over 185 million people, Nigeria remains a huge market for potential investors.

On her part, the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Ms Yewande Sadiku, said the Commission’s doors would always be open to investors in need of relevant information towards investment in the country.

Economy

FAAC Disburses 1.727trn to FG, States Local Councils in December 2024

Published

10 hours ago

14/12/2024

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.

The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.

At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.

According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.

It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.

The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.

The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.

As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.

From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.

Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.

In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.

Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.

Economy

Okitipupa Plc, Two Others Lift Unlisted Securities Market by 0.65%

Published

15 hours ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.

On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.

Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.

Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.

At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.

In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.

Economy

Naira Trades N1,533/$1 at Official Market, N1,650/$1 at Parallel Market

Published

16 hours ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.

The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.

The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.

The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.

Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.

In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.

At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.

Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).

Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.