Business

NNPC to obtain gas from PH refinery during repairs – GMD

Published

5 years ago

March 23, 2021

Says $1.5bn project for rehabilitation, not turnaround maintenance

The Nigerian National Petroleum Corporation (NNPC) has said in 18 months gas will be obtained from the Port Harcourt refinery while the plant is still undergoing a total rehabilitation.

It said this would eventually scale up until the contractors leave the site, unlike a new one requiring the whole plant to be completed before it could start functioning.

The Group Managing Director of the corporation, Mele Kyari, said this in Abuja on Monday, while reacting to controversies and claims by some Nigerians on the $1.5bn meant for the rehabilitation project.

He said the $1.5 billion approved for refinery project was for its total rehabilitation and not turnaround maintenance

He said that the refinery would work in optimal capacity at the completion of rehabilitation programme.

According to him, the loan will be repaid as soon as the refinery becomes functional, adding that a refinery can produce a margin of $4-$7 per barrel which will be used to finance the loan.

“We are not doing turnaround maintenance; we are doing rehabilitation of the refinery, and it is very different; it means that we are replacing certain major components.

He disclosed that the actual cost of the project is about $1.34 billion, noting that the additional expenses include taxes and other duties that could come up.

Kyari said, “The real cost is $1.34 billion. Even then you could argue and say why you wouldn’t build a new refinery. We have also seen some curious comparisons that shell sold one of its refineries for $1.2 billion and that it’s even better than our own.

“This is mundane. Even a Google search will reveal that it was built in 1915 and it’s a 107,000 barrels per day refinery. It has been on shut down by the regulators since early last year. Not only that, when you buy a refinery you buy its assets and the liabilities.”

He maintained that many people do not know the financial transactions that go into some negotiations, saying that it is needless to compare a combined refinery of 210, 000 barrels to a much smaller and much older refinery which has many issues with regulators.

“Simple due diligence was not conducted before those comments were made. They have asked why we don’t just build a new one. What does it take to build a refinery of this status today? It’s anywhere between $7 billion to $12 billion to construct a refinery of this nature. This is what we call battery limit construction. That’s the estimate you see in the public space.

“There are things you do outside the battery limits like the tank and other utilities that are never accounted for when the estimates of this nature are done. That’s about 25 per cent of the total cost. So, when you say refineries can be built for $6 billion or even $10 billion, you should also think about the 25 per cent you will add to it,” Kyari said.

He said that another option would have been to scrap the current one and build a new one, but added that the resources are not available while the banking sector is not ready to put in the money because they no longer fund oil projects of that magnitude.

Kyari said that the refineries are national assets that must be used to ensure energy security for the country, maintaining that if a new refinery is started, it cannot become functional in less than four years, which means Nigeria will keep importing in the next four years.

According to him, even for national strategic purposes, that would be a wrong decision, with the last turn-around-maintenance of the Port Harcourt having been done 21 years ago.

The GMD stated that the current huge cost of rehabilitation was because the last turn-around-maintenance was badly carried out.

He said all stakeholders and agencies of the government were involved in the process leading to the award, saying that it wasn’t a TAM that was currently being carried out but total rehabilitation, which means that major components will be replaced, new items will be introduced and an upgrade of the plant.

Kyari argued that the process went through the Bureau of Public Procurement and other such bodies, saying that he was confident that the best decision was taken after the tender process.

He stressed that the process was delayed for the past 10 years because of unwarranted interferences and strategy problems, including going to the original refinery builders, which he said was the wrong thing to do.

Kyari said that the borrowing angle was introduced because typically, lenders will give conditions, one of which is an Operations and Maintenance contract arrangement, meaning that NNPC will not operate the plant, as it will be done in consonance with what he described as the best global practice.

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Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

Published

5 hours ago

April 21, 2026

Trends Admin

Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

Nigeria’s automotive landscape witnessed a significant shift on Wednesday as Soueast formally entered the Nigerian market, courtesy of the Kewalram Chanrai Group. The entry was marked by a media launch followed by a test drive of its full range of SUVs along the scenic Coastal Highway in Lagos, signalling a fresh wave of competition in the fast-evolving mobility space.

The high-profile event brought together dealerships, media, and auto enthusiasts, offering first-hand experience of the brand’s capabilities in real driving conditions.

Speaking at the launch, Chief Operating Officer, Mobility Division of Kewalram Chanrai Group, Mr. Anil Sahgal, described the move as a strategic response to changing consumer expectations in Nigeria.

“For over 165 years, Kewalram Chanrai Group’s reputation has been built on trust delivered through consistency,” he said. “Our decision to bring Soueast into Nigeria is deliberate. Today’s Nigerian customer is more informed and focused on long-term value. There is a growing demand for vehicles that combine modern design, safety, technology, durability, and affordability — and Soueast fits precisely into this space.”

Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

Business

FX Update: Dollar to Naira Exchange Rate for April 20, 2026

Published

1 day ago

April 20, 2026

Trends Admin

FX Update: Dollar to Naira Exchange Rate for April 20, 2026

The Nigerian Naira started the new trading week on Monday, April 20, 2026, with a slight adjustment across the foreign exchange market as demand for the US Dollar to Naira exchange rate continued to shape trading activity in both official and parallel markets.

In the Nigerian Foreign Exchange Market (NFEM), the official FX window, the Naira traded at an average rate of about ₦1,347.33 per $1 during early trading hours. This represents a mild depreciation compared to the previous week’s close, driven by increased demand at the start of the trading week and routine market adjustments.

Market analysts say the official market remains relatively stable due to continued monitoring and liquidity management efforts by the Central Bank of Nigeria (CBN), although pressure persists from importers and businesses requiring foreign exchange for transactions.

Business

Nigeria Bans Poultry, Cement, Pharma Imports from Non-ECOWAS Countries

Published

1 day ago

April 20, 2026

Trends Admin

Saudi Arabia Bans Poultry, Egg Imports from Nigeria, 39 Other Countries

Nigeria Bans Poultry, Cement, Pharma Imports from Non-ECOWAS Countries

The Federal Government of Nigeria has announced a sweeping ban on the importation of poultry, cement, pharmaceutical products, and agricultural goods from countries outside the Economic Community of West African States (ECOWAS).

The directive, contained in a circular issued by the Federal Ministry of Finance and signed by the Minister of Finance, Wale Edun, took effect from April 1, 2026, as part of the 2026 Fiscal Policy Measures (FPM) and tariff amendments.

According to the circular, the restriction affects 17 items listed under a revised import prohibition list, which applies strictly to goods originating from non-ECOWAS countries.

Full List of Restricted Imports

The items affected by the Nigeria import ban include:

Live or frozen poultry
Pork and beef products
Bird eggs (except for breeding and research)
Refined vegetable oils (with specific exemptions)
Sugar and sucrose products
Cocoa butter, powder, and cakes
Tomatoes and processed tomato products
Sweetened and flavoured beverages
Bagged cement
Pharmaceutical products (medicaments)
Waste pharmaceuticals
Fertilisers (NPK)
Soaps and detergents
Corrugated paper, cartons, and packaging materials
Hollow glass bottles above 0.15 litres
Flat-rolled steel products
Ballpoint pens and parts

90-Day Grace Period for Importers

To ease the transition, the government approved a 90-day grace period beginning from April 1, 2026. Importers who had already opened Form ‘M’ and entered into irrevocable trade agreements before the policy took effect can clear their goods under the previous duty regime.

However, all new import transactions initiated after the effective date must comply with the updated import duty rules.

Additional Measures: 2% Green Tax on Vehicles

As part of the broader fiscal reforms, the government also introduced a 2 percent green tax surcharge on motor vehicles with engine capacities of:

2000cc to 3999cc
4000cc and above

This measure is aimed at promoting environmental sustainability and reducing emissions from high-capacity vehicles.

Why the Government Introduced the Ban

The Federal Government said the import prohibition policy is designed to:

Boost local production and manufacturing
Reduce dependence on foreign goods
Strengthen intra-ECOWAS trade
Protect Nigerian industries and create jobs

Officials also noted that the measures will help improve Nigeria’s economic self-reliance and support long-term industrial growth.

Economic Implications

While the policy is expected to stimulate domestic industries, experts warn it could lead to short-term price increases and supply gaps, especially in sectors reliant on imports.

The new measures replace the 2023 Fiscal Policy Measures and are expected to be published in the Official Federal Government Gazette.