Excitement as Dangote refinery welcomes first crude oil shipment – Newstrends
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Excitement as Dangote refinery welcomes first crude oil shipment

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Excitement as Dangote refinery welcomes first crude oil shipment

Excitement rippled through the air as the Dangote refinery marked a significant milestone by receiving its first shipment of crude oil, heralding the commencement of operations for the eagerly anticipated $20 billion plant.

The OTIS tanker, carrying a cargo of 950,000 barrels of Nigeria’s Agbami crude, set sail on December 6 and is en route to Lekki, the closest land port to Dangote’s offshore crude receiving terminal. This shipment, chartered by the Nigerian National Petroleum Company (NNPC), signifies the initiation of crude supplies for the refinery’s operations.

The tanker’s estimated arrival on Thursday, December 7, at 8 pm marked the beginning of a new era for the Dangote refinery, which former President Muhammadu Buhari officially commissioned in May. The excitement was palpable as the refinery gears up to contribute to Nigeria’s oil industry.

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The NNPC, holding a 20% stake in the refinery, agreed to supply 6 million barrels of crude oil as feedstock to jumpstart Dangote’s operations. The first shipment is a symbol of this initial supply.

Agbami, operated by Chevron, is a major deepwater development in Nigeria’s central Niger Delta, producing approximately 100,000 barrels per day of light sweet crude. The refinery is designed to process multiple crudes concurrently, with plans to handle three Nigerian crude grades—Escravos, Bonny Light, and Forcados.

As the ship approached the Lekki Anchorage area in Lagos, an insider from Dangote revealed that preparations were in place to receive the shipment. Following regulatory clearances, the refinery’s management is set to commence the process of barging the crude, with ceremonies planned to commemorate this historic event.

Jasper Nwachukwu, an oil and gas expert, emphasized the significance of ensuring sustainable domestic supply to the refinery for maximum benefit to Nigeria. He suggested that as an oil-producing nation, Nigeria should be the direct supplier to the Dangote refinery. The commencement of operations is not only a momentous event for Dangote but also a positive development for the Nigerian oil industry.

Excitement as Dangote refinery welcomes first crude oil shipment

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Naira sells N1,770/$ at parallel market, 1,665/$ official window 

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Naira sells N1,770/$ at parallel market, 1,665/$ official window 

Naira on Friday closed at N1,770 against the US dollar at the parallel foreign exchange market.

This shows an appreciation by N90 or 4.84 percent, compared to the N1,860 per dollar reported on February 21, 2024.

Operators at the black market as the parallel market is called gave the buying price of the naira as N1,730 and the selling price N1,770, with a profit margin of N40.

It was however a different story at the official window where the naira depreciated by 5.99 percent to close at N1665.50/$ on Friday against N1,571.31/$ on February 22.

The naira has been on a free fall against the dollar and other major currently since January despite measures introduced by the Central Bank of Nigeria to stem the slide.

A few days ago, it was above N190/$ and there were fears it was going to hit the N200 mark before the end of February.

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Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency

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Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency

The Federal Government has insisted that the ongoing reforms in the foreign exchange market is beginning to yield results, with the naira stabilizing and the forex market experiencing surge of inflows.

The government stated that it has directed relevant regulatory and enforcement agencies to deal with speculators and other unscrupulous players within and outside the country who are engaged in malpractices capable of undermining the naira.

This disclosure is contained in a press statement issued by the Minister of Information and National Orientation, Mohammed Idris, on Friday, February 23, 2024.

Mohammed in the statement said that the latest figure from the National Bureau of Statistics (NBS) showed that capital importation into Nigeria increased by over 66% in Q4 2023 when compared with the previous quarter.

He also noted that the new reforms have led to an inflow of $1.8 billion into the foreign exchange market last week.

CBN proactive, forex market stabilizing

The statement partly reads, ‘’The CBN has been proactive, initiating a comprehensive strategy to enhance liquidity in the forex market.

In addition to unifying the rates, the bank has also cleared a significant amount of outstanding Forex obligations, and outlined new operational mechanisms for commercial banks, Bureau De Change (BDC) operators and International Money Transfer Operators (IMTOs).

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‘’It is heart-warming to note that we are starting to see the results. Indeed, the naira is stabilizing, and the foreign exchange market is seeing a surge of inflows.

The latest NBS figures show that capital importation into Nigeria rose by over 66 percent in Q4 2023, compared with the preceding quarter.

The CBN Governor has also highlighted the fact that $1.8 billion flowed into the forex market last week, on the back of the new reforms.’’

Government going after saboteurs, speculators

  • The minister added, ‘’Sadly, as with any effort to reform and sanitise a system entrenched in long-term malpractice, the CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country, who profit from dysfunction and opacity.
  • ‘’To tackle this, regulatory and enforcement agencies of government have been working round the clock in the past few days, joining forces to address these efforts at undermining the reforms. That strategic alliance has led to the intelligence-led identification, investigation and sanctioning of individuals and organizations involved in illegal activities and sabotage within the forex market.
  • ‘’Relevant regulatory and security agencies have been directed to remain vigilant to ensure that malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book. The government will not allow its efforts to be jeopardised.
  • ‘’The emerging stability of the naira is in the interest of all Nigerians.”

Government to take further steps

The minister assured that the Federal Government will continue to take further steps to stabilize the naira and safeguard the economy.

  • He said, ‘’Nigerians should rest assured that the government will continue to take further steps to stabilize the naira and safeguard our economy.
  • ‘’We will continue to seek the patience and understanding of Nigerians as we push through these difficult times, into a season of abundant benefits and truly renewed Hope. As the President never fails to emphasize, these headwinds we are facing are only temporary, and, collectively, we will surely overcome.
  • ‘’The President and his team are and will remain resolutely committed and focused on the task of bringing immediate relief and enduring prosperity to all Nigerians.’’

Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency

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BREAKING: Naira strengthens by 7.43% to N1750 against dollar at the black market

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BREAKING: Naira strengthens by 7.43% to N1750 against dollar at the black market

The Naira witnessed a notable surge on Thursday, reaching a high of N1750 per dollar in the parallel market, commonly known as the black market.

This surge represents a substantial 7.43% increase, with the currency strengthening by N130.00 compared to the previous day’s closing rate of N1,880.

The surge coincides with Nigeria’s intensified efforts to counter the ongoing depreciation of the Naira.

In response to the currency’s decline, Nigeria has ramped up measures to stabilize its value. These efforts include cracking down on informal foreign currency street traders and targeting a popular cryptocurrency trading platform.

Throughout the week, the naira experienced a significant decline in value, hitting a low of N1,880 to the dollar on Thursday.  

This depreciation has widened the disparity between the unofficial market rate and the official rate of the naira, presenting challenges to the government’s goal of unifying the two rates. 

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Despite the Central Bank of Nigeria’s implementation of various policies aimed at boosting the supply of foreign exchange (forex), these developments persist, underscoring the complexities of managing currency stability in the face of economic challenges. 

  • However, the Great British Pound (GBP) remained flat at £1/N2260, same as was recorded the previous day. 
  • Additionally, the Naira against the Euro traded flat, closing at N1960/EUR1 compared to N1960/EUR1 also reported the previous day. 

In the cryptocurrency market where forex is sold using stablecoins, the Naira also settled at N1,708.40/$1 as of 1.15 pm. 

Nairametrics reported that the National Security Adviser’s Office, led by Nuhu Ribadu, in collaboration with the Central Bank of Nigeria (CBN), has initiated a joint effort to combat forex speculation and tackle the issues affecting the country’s economic stability.  

In a statement on Tuesday, a spokesperson for Ribadu’s office, Zakari Mijinyawa, the partnership is set to include coordinated actions with leading law enforcement agencies such as the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU).   

Mijinyawa pointed out that the activities of speculators, operating both domestically and internationally through different mechanisms, have played a significant role in the naira’s depreciation, thereby exacerbating inflation and leading to economic instability in Nigeria.  

BREAKING: Naira strengthens by 7.43% to N1750 against dollar at the black market

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