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Experts Laud FEC Approval of NNPC’s Acquisition of 20% Stake in Dangote Refinery

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Experts Laud FEC Approval of NNPC’s Acquisition of 20% Stake in Dangote Refinery

L-R: CEO, OVH Energy-OANDO license, Huub Stokman; Managing Director 11Plc/ Chairman Major Oil Marketers Association of Nigeria (MOMAN), Adetunji Oyebanji; President/CE, Dangote Industries Limited, Aliko Dangote; Managing Director, Total Energies Nigeria, Imrane Barry; Executive Secretary of MOMAN, Clement Isong, during the visit to the Dangote Head Office in Lagos, on Wednesday, August 4, 2021

L-R: CEO, OVH Energy-OANDO license, Huub Stokman; Managing Director 11Plc/ Chairman Major Oil Marketers Association of Nigeria (MOMAN), Adetunji Oyebanji; President/CE, Dangote Industries Limited, Aliko Dangote; Managing Director, Total Energies Nigeria, Imrane Barry; Executive Secretary of MOMAN, Clement Isong, during the visit to the Dangote Head Office in Lagos, on Wednesday, August 4, 2021

L-R: CEO, OVH Energy-OANDO license, Huub Stokman; Managing Director 11Plc/ Chairman Major Oil Marketers Association of Nigeria (MOMAN), Adetunji Oyebanji; President/CE, Dangote Industries Limited, Aliko Dangote; Managing Director, Total Energies Nigeria, Imrane Barry; Executive Secretary of MOMAN, Clement Isong, during the visit to the Dangote Head Office in Lagos, on Wednesday, August 4, 2021

L-R: CEO, OVH Energy-OANDO license, Huub Stokman; Managing Director 11Plc/ Chairman Major Oil Marketers Association of Nigeria (MOMAN), Adetunji Oyebanji; President/CE, Dangote Industries Limited, Aliko Dangote; Managing Director, Total Energies Nigeria, Imrane Barry; Executive Secretary of MOMAN, Clement Isong, during the visit to the Dangote Head Office in Lagos, on Wednesday, August 4, 2021

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Some economists and oil and gas expert have backed the Federal Executive Council’s  (FEC) approval of  the acquisition of 20 per cent minority stakes by the Nigerian National Petroleum Corporation (NNPC) in the Dangote Petroleum and Petrochemical Refinery.

They made their views known in separate interviews with the News Agency of Nigeria (NAN) on Thursday in Lagos.

NAN reports that Chief Timipre Sylva, Minister of State for Petroleum Resources, had announced the approval after the virtual FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.

Sylva had said the acquisition was in the sum of $2.76 billion.

Reacting to the development, Prof. Chris Onalo, Registrar and Chief Executive Officer, Institute of Credit Administration, said oil and gas remains the major source of revenue for the government which requires massive investment in the sector.

Onalo said the Dangote Group had taken the bull by the horns to make a huge investment that was needed to jumpstart the industry and therefore needed the support of all and sundry including the government.

He said the investment from the NNPC was to support the billions already committed by Dangote Group in the world largest single train refinery.

“The refinery is an expression of massive confidence in the oil and gas economy of this country.

“It shows that the sector can take Nigeria out of economic woes. I think it is a welcome development and those of us who are in the public domain can’t wait too long to see that happening.

“So, I will say kudos to the Dangote Group for its investment drive across the economy of this country,”Onalo said.

He added that the NNPC’S support to  the refinery and others coming on stream soon would increase investors’ confidence in the sector thereby attracting the more investments.

Also, Mr Muda Yusuf, an economist and immediate-past Director General of the Lagos Chamber of Commerce and Industry (LCCI), said the Dangote Refinery was of strategic national importance.

“My views have always been that even though this is a private sector project, it makes  both commercial and nationalistic sense for NNPC to express a interest in it.

“This project has a good prospect to put an end to fuel importation and the associated leakages of public funds while also preserving our foreign exchange reserves,” Yusuf said.

He said the refinery would also stimulate the economy in areas such as job creation, agriculture and exportation of petrochemicals to other countries.

Yusuf said: “The proposal by NNPC to take 20 per cent equity stake in the Dangote Refinery is a move in the right direction. The reality is that the Dangote refinery is a project of significant and strategic national importance, even though it is promoted by the private sector.

“Taking a stake in the project also makes a great deal of business sense, especially given how far the project execution has gone and our heavy dependence on importation of petroleum products.

“It also makes both commercial and nationalistic sense for NNPC to express an interest in a project that has a good prospect to put an end to fuel importation and the associated leakages of public funds.

“It would also ensure the preservation of our foreign reserves as we currently spend billions of dollars annually on importation of petroleum products.”

He said in addition to the several multiplier effects of the refinery arising from related spin off industries like petrochemicals, fertilizer plants resonates well with the country’s aspiration for self reliance and backward integration.

He added that the export prospects of the Dangote Refinery were also quite bright.

Yusuf stated that another exciting thing about the investment proposition by the NNPC was that the national oil company would be a minority shareholder and would therefore not take responsibility for the management of the refinery.

He noted that the undoing of Nigeria’s public enterprises had been the quality of management, saying as a country, Nigeria had paid a huge price for this in the form of inefficiency, corruption, wastages and many more.

The LCCI DG further said that the model being proposed with the Dangote refinery was similar in a way to the Nigeria Liquefied Natural Gas (NLNG) Limited’s model, which according to him, remains the best example of how government funds should be invested.

“It is a model that shields the investment from interference by politicians and bureaucrats.

“This proposition is much better than the decision to commit scarce public funds to the rehabilitation of decrepit government owned refineries,” he added.

Similarly, Mr. Wilson Opuwei, Chief Executive Officer, Dateline Energy Services Limited, said the approval was a step in the right direction for the country.

“It makes sense for the NNPC to invest in ventures that will bring returns to the company. Every business need good investments and this is what the NNPC is doing with the Dangote Refinery.

He said that the refinery will ensure energy security as the Refinery is capable of meeting Nigeria’s gasoline requirements while generating revenue in hard currency from export of diesel, jet fuel, polypropylene among many others.

Chief Operations Officer, Dangote Oil Refining Company, Mr Giuseppe Surace told the marketers that the refinery has been designed to process a variety of light and medium grades of crude, including petrol and diesel as well as jet fuel and polypropylene.

He said the refinery was billed to produce up to 50 million litres of petrol and 15 million litres of diesel a day, roughly 10.4 million tonnes of the product, 4.6 million tonnes of diesel, and 4 million tonnes of jet fuel yearly.

 

According to him, this is in addition to having a fertiliser plant, which would utilise the refinery by-products as raw materials.

He disclosed that the refinery which has recorded 90 per cent completion, was expected to address the challenge of petroleum product importation in Nigeria and other African countries.

He said, “If you look at the overall percentage completion, we have achieved good, considerable progress. But that overall includes engineering and design, which is 100 per cent over.

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DIGITAL TRANSFORMATION: NITDA TAKES DIGITAL TECHNOLOGIES TO GRASSROOTS

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DIGITAL TRANSFORMATION: NITDA TAKES DIGITAL TECHNOLOGIES TO GRASSROOTS

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In its continued effort to transform Nigeria into a globally recognised hub of technology and innovation to drive economic diversification and boost productivity across all sectors, the National Information Technology Development Agency (NITDA) is set to collaborate with relevant organisations in effectively cascading the benefits of digital technology to all the local governments across the country.

Group photo of the DG NITDA, Kashifu Inuwa CCIE (middle) alongside Director CAER, NITDA, Hadiza Umar (right) SSA to the President, Comm. Eng. S/W Ms Moremi Ojudu(2nd right), SSA to the President, Comm. Eng. S/E, Barr Chioma Nweze (3rd left), SSA to the President, Comm. Eng. N/W, Hon Abdallah Tanko Yakassai (2nd left) and Member, NITDA Strategic Team, Ms Dayo Johnson (left).


This was disclosed by the NITDA Director General, Kashifu Inuwa CCIE when he played host to the Senior Special Advisers to President on Community Engagement – South East, Barr Chioma Nweze; South West, Ms Moremi Ojudu and North West, Hon. Abdallah Tanko Yakassai who visited the Agency to discuss possible areas of collaboration on Nigeria’s digital transformation journey.

This gesture is in total alignment with the present administration’s priority areas, particularly in the area of reforming the economy for sustained inclusive growth.
While stating the agency’s vision for Nigeria where inclusive economic growth is fostered through technological innovation, the NITDA DG noted that the vision aligned with the president’s 8 priority areas.


“The President wants to Reform the Economy to Deliver Sustained Economic Growth; Strengthen National Security for Peace and Prosperity; Boost Agriculture to Achieve Food Security; Boost Infrastructure and Transportation as Enablers of Growth; Focus on Education, Health and Social Investment as Enablers of Development; Accelerate Diversification through Digitisation, Industrialisation, Creative Art and Innovation; and Improve Governance for Effective Service Delivery to Citizens,” he said.


He added that the agency recently crafted its Strategic Roadmap and Action Plan (SRAP 2.0) 2024-2027, and its pillars are the tool that will help Mr President in delivering on all the presidential priority areas.


Enumerating the 8 pillars of the SRAP, Inuwa highlighted “Foster Digital Literacy and Cultivate Talents” as one of the most important pillars the document is anchored on where inclusivity is pronounced.


“To ensure we are inclusive, we need to get our citizens to be digitally literate, so we developed the National Digital Literacy Framework with an ambitious target of achieving 95% digital literacy by 2030 but Mr President cited a mid-term target for us to achieve 70% by 2027,” he stated.


He further said that the agency is collaborating with the Ministry of Education in infusing digital literacy into all academic institution’s curricula while at the same time developing standard training with certifications that would be a prerequisite for securing government employment.


“We have already worked with the Head of Service to put it as a requirement for government workers to be digitally literate. But for the market people, artisans and so on, what they need is the literacy to use digital devices to access internet banking, government digital services and others.

We have therefore been exploiting many channels to deliver them through TV programmes, social media, radio, roadshows and so on,” he averred.


The NITDA Boss stated that, the 3 Million Tech Talent programme was another initiative of the Ministry of Communications, Innovation and Digital Economy in collaboration with the agency to identify skill gaps in the country and build youth’s capacity on skills in high demand locally and internationally.


“We have started the training and so far we have trained over 30,000 and completed the first phase which is a pilot. We are now executing the second phase of the training,” he said.


While giving deep insight into the other seven strategic pillars of Building a Robust Technology Research Ecosystem; Strengthening Policy Implementation and Legal Framework; Promoting Inclusive Access to Digital Infrastructure and Services; Strengthening Cybersecurity and Enhance Digital Trust; Nurturing an Innovative and Entrepreneurial Ecosystem; Forging Strategic Partnerships and collaborations and lastly, Cultivating a Vibrant Organisational Culture and an Agile Workforce in NITDA, Inuwa shared the various infrastructures, innovative solutions, sponsorships and training programmes the government has been offering nationwide.


In his remark, Hon. Yakassai appreciated the DG NITDA for his wonderful presentation by sharing insights into the various activities of the agency to ensure a digitally empowered nation by building the digital capacities of Nigerians.


He however expressed his team’s willingness to collaborate with the agency in the areas of propagating the agency’s activities to the grassroots throughout the 774 local governments in the country.


“Mr President is a grassroots person that is why he created this office so that we make sure whatever the government is doing is taken down to the grassroots level and we need to show the people the importance of your programmes and how they can key into it”, he stated.

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NiMet And FUPRE To Partner On Weather Observation, Research And E-Learning

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NiMet And FUPRE To Partner On Weather Observation, Research And E-Learning

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Nigerian Meteorological Agency (NiMet), is to collaborate with the Federal University of Petroleum Resources Effurun (FUPRE),Delta state, on weather observation, research and e-learning.

Left to Right: Professor Charles Anosike, Director-General and Chief Executive Officer of NiMet, and Professor Akpofure Rim-Rukeh, Vice Chancellor, Federal University of Petroleum Resources Effurun (FUPRE), Delta state, at the signing of a Memorandum of Understanding (MoU), between NiMet and the university on Thursday, 16th May 2024.

This was disclosed by the Director-General and Chief Executive Officer of NiMet, Professor Charles Anosike, on Thursday, 16th May 2024, at the signing of a Memorandum of Understanding (MoU), between NiMet and the university.

Professor Anosike observed that oil companies have weather stations spread across the shores of Nigeria, which are illegal according to the new NiMet Act. He said that these weather stations need to be registered with NiMet in compliance with NiMet Act and solicited the collaboration of the University to achieve this.

Speaking further, Professor Anosike noted that the partnership with the petroleum institution will not only help improve data gathering on climate risk in the area, but also strategically make NiMet become the centre of excellence in disseminating the risk to the oil and gas sector.

“I will like the Federal University of Petroleum Resources Effurun (FUPRE), to take advantage of NiMet’s e-learning services that will soon be unveiled. It would actually fast-track introduction of joint courses between FUPRE and NiMet”, Professor Anosike concluded.

On his part, the Vice Chancellor of FUPRE, Professor Akpofure Rim-Rukeh disclosed that the institution expects support from NiMet in the installation of observatory stations, training personnel on generation of weather data that can support research, journals and academic publications and other good interventions that will impact on the university and its environment.

Amongst other things, the MoU aims to establish a collaborative framework between NiMet and FUPRE for joint efforts in research, training and promotion of activities relating to meteorology/climatology and climate change in Nigeria. Specifically the MoU will have NiMet Install its observatory station known as Resident Observatory Station (ROS) in suitable locations within FUPRE for the purpose of carrying out meteorological activities.

The MoU signing was witnessed by the Director, Legal Services of NiMet, Barr. Shola Gabriel and other staff of the Agency. The Vice Chancellor of FUPRE, Professor Akpofure Rim-Rukeh signed on behalf of the Federal University of Petroleum Resources Effurun (FUPRE) , Delta state, while Professor Anosike signed on behalf of NiMet.

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Tax Conference: Sanwo-Olu, Zulum, Amosun, Other Experts Seek Transparent Tax System to Boost Internally Generated Revenues

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Tax Conference: Sanwo-Olu, Zulum, Amosun, Other Experts Seek Transparent Tax System to Boost Internally Generated Revenues

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Lagos State Governor, Mr. Babajide Sanwo-Olu, and his counterparts from Sokoto and Borno States have emphasised the need to make the country’s tax system more transparent and accountable to Nigerians to boost confidence and voluntary compliance.

The governors made the call at the ongoing 26th Annual Tax Conference organized by the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, with the theme, “Sustainable Tax Culture and Economic Roadmap for Nation Building”.

Speaking at the conference, Governor Sanwo-Olu who was represented by his Special Adviser on Taxation and Revenue, Mr. Abdul-Kabir Opeyemi Ogungbo, said the theme of the Conference was apt and timely given that Nigeria, like many other nations, is currently facing significant economic challenges.

While underscoring the crucial role of a transparent and efficient tax administration in fostering confidence and voluntary compliance among taxpayers, he emphasized the necessity for citizens to witness tangible outcomes from their tax contributions, highlighting the pivotal role taxes play in fueling public services and infrastructural development.

Sanwo-Olu stressed the shift in mindset needed, urging taxpayers to view tax payments not as a burden but as an investment in a better future for Nigeria.

He said building a strong and sustainable future through a robust tax system that fosters economic growth and development had become inevitable.

Sanwo-Olu said, “We must all understand the crucial role taxes play in building a better Nigeria for ourselves and for generations to come.

“The theme also highlights the need for a clear economic roadmap which should take note of the architecture of our developmental ideologies as they are designed to provide the government with the necessary resources to cater for the social needs of its citizens, therefore we need a tax system that incentivizes investment, job creation, and economic diversification.

“We need to explore innovative ways to expand the tax base while fostering a business environment that allows our economy to thrive. The good news is that Nigeria is already taking positive steps in these directions. The recent efforts to streamline state-level taxes and the focus on integrating the growing remote workforce into the tax net are commendable initiatives.”

The governor said, “The CITN plays a vital role in fostering this vital shift. Your commitment to professional excellence and education is instrumental in ensuring a tax system that is fair, efficient, and promotes economic development.”

However, former Governor of Ogun State, Senator Ibikunle Amosun, who declared the conference open, while stressing the need to prioritize growing Internally Generated Revenue (IGR) over relying solely on borrowing to fund national and sub-national budgets, said borrowing to fund the budgets was not the way to go amid the current national economic challenge when “our nation and its constituent states and local governments are going through very difficult times and finding it hard to provide for its teeming populace, acceptable standards of living, employment with the growing population of youths, infrastructure and basic amenities that will make life more meaningful”.

Governor Babagana Zulum of Borno State criticized inefficiencies and corruption in the current tax administration system.

Zulum, represented by the Deputy Governor of Borno State, Umar Kadafur, highlighted the shortcomings of the current tax system, including tax evasion, avoidance, and lack of transparency.

He called for critical reforms to address these issues, including tackling corruption in both the oil sector and governance system. He criticized the political protection of tax evaders and emphasized the importance of transparency and accountability in tax administration.

While calling for critical reforms, he lamented the manipulation and connivance of multinationals with tax administration to short-change the system, he added that this represented one of the hallmarks of corruption in both the oil and governance system.

In his remarks, the Governor of Sokoto State, Ahmad Aliyu Sokoto, said the conference will greatly assist in exploring innovative ways of improving revenue generation in the country.

He said the economic and revenue challenges had made it difficult for governments at all levels to implement their people-oriented programmes, thus the need for the government to devise a means for more funds to provide the dividends of democracy to the people.

The governor said taxation remained a veritable source of resource mobilization for the government adding that his administration would work with CITN to boost IGR in the state.

The Auditor-General for the Federation (AuGF), Mr. Shaakaa Chira, said the country’s tax system was plagued by instances of tax evasion especially by the upper class, multiple taxation and inability to properly account for taxes collected by administrators.

The Chairman of the conference planning committee, Dr. Adeyemi Sanni, noted that for Nigeria to achieve meaningful fiscal development over the long term, it is imperative to establish a tax culture that can withstand economic fluctuations and challenges.

President and Chairman of the CITN council, Mr. Samuel Agbeluyi, emphasized the importance of investing in technology and people at the subnational level to effectively track revenues in the digital space, including cryptocurrency. This, he believes, will help maximize government revenue flow.

Mr. Agbeluyi stressed the need to provide support to revenue authorities through financial and administrative autonomy, empowering them to effectively administer taxes as he noted it is clear that a strategic approach to revenue management is crucial for the overall financial health of the government.

The CITN boss stated further, “This is a thought-provoking topic that requires all of us to put on our thinking hats. As we deliberate, we must recognize that our nation faces significant challenges. Our current economic realities as a country are multifaceted, despite efforts to improve the narrative by the current government.

He said, “The 2024 budget of “Renewed Hope” as we know relies significantly on non-oil revenue, and this trend is expected to continue in the future. Therefore, building a sustainable tax culture capable of significantly improving our tax revenue performance for an effective. economic and capital formation becomes a top priority.”

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