Business
National Assembly tackles Amaechi over Nigeria-Niger Republic rail line, others
The Senate and House of Representatives Joint Committees on Land and Marine Transport on Thursday protested against the proposal of the Minister of Transport, Rotimi Chibuike Ameachi, to construct a standard gauge for the Kano-Maradi rail line while an old narrow gauge was planned for other parts of Nigeria.
The lawmakers became angry when Amaechi presented the 2022 budget proposal of his ministry before the Joint National Assembly Committee.
While presenting the budget, Amaechi said, “The construction of Kaduna-Kano railways to link up the Abuja-Kaduna rail line has commenced. Survey and design for Ibadan-Minna-Abuja is ongoing.
“Construction of the 284 kilometres Nigeria-Maradi (Niger Republic) standard gauge rail line enabling interconnectivity with countries in the West Africa sub region for the promotion of trade and commerce.
“This important contribution by Nigeria would be mutually beneficial by adding to the economic growth of the two countries, Niger and Nigeria.”
Chairman of Senate Committee on Marine Transport, Senator Danjuma Goje, and House Committee Chairman, Mr Pat Asadu, kicked against the marginalisation of other regions of the country in the rail line construction.
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Both Chairmen queried the minister why he was not constructing uniform rail lines across the country.
They also asked him to explain the rationale behind the modern standard gauge being proposed for the Kano-Maradi rail line when he was constructing the old narrow gauge in other parts of Nigeria.
The Chairman, Committee on Port, Pat Asadu, who opened the floor after the minister presented the budget to the committee, specifically asked why he was constructing modern rail line in one place and old rail lines in other parts of the country.
He said, “Looking at your key railway projects which you’ve highlighted, I think they are worth the spend.
“We are now looking at the difference between project D which is the construction of 284 kilometers Nigeria-Maradi railway standard world class line against Project C where you talked about the total rehabilitation and reconstruction of Port Harcourt to Maiduguri eastern rail network defined as narrow gauge.
“For a segment of this country that is known for trade and commerce, they need railway as they need air.
“Why is the ministry doing a 287 kilometers of railway track from Kano to Maradi that you will fund with Nigerian money borrowed for Nigerians to be paid by our children to do a world class railway to Maradi.
“I also know the economy of Niger Republic and I believe the economy of the South-East is bigger than that of Maradi. I am not even talking of South-South.
“So what policy guide, what need assessment, what study of federal character integration would make the Ministry of Transportation to put 284 kilometers railway from the end of the North to Maradi and then constructing a narrow gauge in the South-East and South-South.
“This to me is why the integration of this country will always be challenged because things are done with so much impunity. This is our commonwealth.
“So if we approve this budget for you, you will go and do Kano-Maradi standard rail line and do a narrow gauge rehabilitation for the South-East. My heart bleeds.
“Instead of doing the right thing, you are now giving us this one as what will enhance the economy of Niger and Nigeria, while the economy of Nigerians especially those who have the containers and who are always on the road are given a narrow gauge rehabilitation.”
Similarly, Danjuma Goje, said, “I concur with you because we have consistently challenged the minister.
“Why will you give those of us from the eastern part of Nigeria, from South-East, North-Central, North-East the archaic, old modern narrow gauge, then you are now spending a lot of money to do the modern standard gauge to another country.
“Are people from the South-East, North-Central and North-East not Nigerians? Why should there be double standard in this matter?
“That is why we are quarreling. You are telling us you are designing Ibadan to Abuja, you are doing Kaduna to Kano, you are doing Abuja to Itakpe and to Warri.
“What wrong did the South-East, North-Central and North-East, particularly the South-East, Benue, Plateau, Taraba, Bauchi, Gombe, Borno and Adamawa. What is wrong with us?
“Are we not Nigerians? I completely concur with Honourable Pat Asadu, 100 per cent.”
Ameachi, while responding to issue raised by the committee, said the difference between the narrow gauge and standard gauge was speed, adding that the country might not get the money to build standard gauge across the country.
He said that the negotiation for loan for the construction of Kano- Maradi standard gauge line was about to be completed.
He also clarified that his ministry was yet to get money for Kano-Kaduna, Port Harcourt-Maiduguri railway projects.
On the economic justification for constructing the $1.3bn Kano-Maradi rail, Ameachi said the project was not based on sentiments but economic benefits for the country.
Business
Nigeria’s foreign reserves in marginal increase, now $40.88bn
Nigeria’s foreign reserves in marginal increase, now $40.88bn
Nigeria’s foreign reserves rose to $40.88 billion as of November 21, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.
Cardoso disclosed this on Tuesday at a press conference after the Monetary Policy Committee’s 298th meeting in Abuja.
He said the external reserves grew from $40.06 billion at the end of October to $40.88 billion in November.
The amount represents an increase of $82 million or 2.05 per cent in 21 days.
“The external reserves rose marginally to 40.88 billion as of 21 November 2024, from 40.06 billion at the end of October 2024, available to finance 17 months of imports,” he said.
However, from the apex bank’s website, the increase in Nigeria’s foreign reserves showed $40.27 billion on November 22.
Cardoso also said, “The process of getting us where we are in terms of reserves has been a long one”.
“It is a clear indication that the policies we have put in place are certainly yielding fruits,” he added.
“However, and it’s very important to make a distinction here and to reiterate the fact that reserves are there for a multiplicity of different purposes, not least of which is to create buffers in the event of unanticipated shocks.
“So they are not there to simply whittle away. They are there to be used to more or less defend yourself where that becomes necessary
“And when we talk about shocks that are not anticipated, I think we can see how the global economies are.”
Cardoso also said the bank would continue to intensify efforts to stabilise the currency and prices.
The CBN governor said, “The currency has been stable compared to what it was in June”.
But he said for the value of the country’s currency to be stable, there must be increased exports and diversification of the economy.
Cardoso said diaspora remittance had increased due to policies put in place.
He commended those in the diaspora for helping the country accomplish over $600 million in remittances.
Business
Naira rises to N1,755/$ in parallel market
Naira rises to N1,755/$ in parallel market
The Naira yesterday appreciated to N1,755 per dollar in the parallel market from N1,770 per dollar on Monday.
Similarly, the Naira appreciated to N1,659.44 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,659.44 per dollar from N1,675.62 per dollar on Monday, indicating N16.18 appreciation for the naira. The volume of dollars traded (turnover) increased by 219.5 percent to $425.98 million from $108.79 million traded on Monday.
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Consequently, the margin between the parallel market and NAFEM rate narrowed to N95.56 per dollar from N117.38 per dollar on Monday.
Naira rises to N1,755/$ in parallel market
Business
PH refinery to blend 1.4-million litre petrol daily – NNPC
PH refinery to blend 1.4-million litre petrol daily – NNPC
Rehabilitated old Port Harcourt refinery is currently operating at 70 per cent of its installed capacity, the Nigerian National Petroleum Company Limited has said.
The Port Harcourt Refining Company (PHRC) operates two refineries: the old refinery with a capacity of 60,000 barrels per stream day (bpsd) and a new refinery with an installed capacity of 150,000 bpsd.
The NNPCL in a statement on Tuesday, said it planned to increase the operation to 90 per cent of the refinery’s capacity.
“The Board and Management of the Nigerian National Petroleum Company Limited (NNPC Ltd) express heartfelt appreciation to Nigerians for their support and excitement over the safe and successful restart of the 60,000 barrels-per-day Old Port Harcourt Refinery,” the statement reads.
“This achievement marks a significant step forward after years of operational challenges and underperformance.
“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the Old Port Harcourt Refinery is currently operating at 70% of its installed capacity, with plans to ramp up to 90%.”
According to NNPC, the refinery has commenced production of daily outputs of straight-run petrol (naphtha), which is blended into 1.4 million litres of petrol.
The national oil company said the refinery has also started producing 900,000 litres of kerosene per day and 1.5 million litres per day of diesel.
The NNPC said 2.1 million litres daily volume of low-pour fuel oil (LPFO) would also be produced at the refinery, adding that additional volumes of liquefied petroleum gas (LPG) will be refined at the plant.
“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications,” NNPC said.
“Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes.”
Additionally, the NNPC said it has made substantial progress on the new Port Harcourt refinery, “which will begin operations soon without prior announcements”.
“We urge Nigerians to focus on the remarkable achievements being realized under the able and progressive leadership of President Bola Tinubu and to support efforts aimed at delivering more dividends to the nation,” the energy firm said.
According to the statement, malicious attacks on “clear progress” only undermine the “significant strides made by NNPC Ltd and the country”.
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