NNPC: We need $2.7bn investment to stabilise petroleum products supply – Newstrends
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NNPC: We need $2.7bn investment to stabilise petroleum products supply

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3 years ago

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Nigeria will require about $2.7 billion worth of investment to enable it to meet the rising demand for petroleum products and stabilise the supply process, the Nigerian National Petroleum Corporation has said.

Group Managing Director of NNPC, Mele Kyari, stated this on Tuesday in his keynote address at the 15th Oil Trading and Logistics, Africa Petroleum Downstream Expo 2021, held in Lagos.

According to him, about $3.097 billion investment opportunities exist in condensate refineries, while $1.6 – $2.7 billion is required by the NNPC to improve the supply and distribution of petroleum of products.

He said this would also be used to revamp Liquefied Petroleum Gas infrastructure and build Compressed Natural Gas plants.

Kyari, who was represented by Group Executive Director, Downstream of the NNPC, Mr Adetunji Adeyemi, said that Nigeria needed a refining capacity of about 1.52 million barrels per stream day (MBPSD), from the current 445,000 barrels per day, to meet its petrol requirement in the next four years.

“The NNPC Refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running at 60 per cent capacity respectively would supply 76 per cent of Nigeria’s PMS requirement.

“This will leave a shortfall of about 17 million litres of PMS daily. NNPC is adding 215,000 BPSD of refining capacity through private sector-driven co-location at the existing facilities in Port Harcourt Refinery and Warri Refinery respectively.

“Modular refineries are also adding capacities such as the 5,000 BPSD Walter smith refinery which will be upgraded to 50,000 BPSD.

“Additional 250,000 BSPD is expected to come from the Condensate Refineries through the private sector partnership.”

Kyari also said, “Key pipeline projects are ongoing to assure delivery of the gas to the demand nodes. The Obiafu-Obrikon-Oben (OB3) project which brings gas from East to West is nearing completion. The 614km Ajaokuta, Kaduna, Kano (AKK) project, which was inaugurated by Mr President in June 2020, is progressing very well.

“These could add up to $40 billion to annual Gross Domestic Product and create additional six million jobs.”

Also speaking, Governor  Babajide Sanwo-Olu of Lagos State, said Nigeria needed to reposition its oil and gas sector due to the global energy transition.

The governor, who was represented by Mr Olalere Odusote, the State Commissioner for Energy and Mineral Resources, emphasised the need for more collaboration among stakeholders.

He said, “The Lagos State Government is ready to drive the institutional framework that will provide a conducive, investor-friendly environment to encourage and support private sector investments.

“Lagos State plays a pivotal role in the Nigerian economy as the Nation’s commercial nerve centre and remains the focal point of the country’s economic activity.

“The state government is fully committed to supporting private-sector innovations targeted towards driving sustainable economic growth and making the state become a 21st century, low carbon economy.”

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Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

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2 hours ago

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December 21, 2024

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Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

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Business

NNPC denies claim of Port Harcourt refinery shutdown

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2 hours ago

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December 21, 2024

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Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down. 

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

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CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

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1 day ago

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December 20, 2024

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CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM). 

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM). 

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period. 

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department. 

The arrangement will be in effect from December 19, 2024, to January 30, 2025. 

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.  

Transactions to occur at the prevailing NFEM rate 

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department. 

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025. 

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.” 

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

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