Business
NNPC: We need $2.7bn investment to stabilise petroleum products supply
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.”
Business
Dangote, NNPCL back to negotiation over Naira-for-crude deal
Dangote, NNPCL back to negotiation over Naira-for-crude deal
The Nigerian National Petroleum Company Limited (NNPCL) on Monday said discussions are currently ongoing towards emplacing a new naira-for-crude contract with local refiners.
The company reacted after the reported collapse of the naira for crude deal between the NNPCL and the local refiners, prompting marketers, stakeholders and Nigerians to express mixed feelings.
The deal, which lasted barely six months, was said to have collapsed, raising fear of increase in prices of petroleum products and further depreciation of naira against the dollars.
Newstrends reports that President Bola Ahmed Tinubu had directed the sale of crude oil to Dangote in naira as part of move to bring down the cost of premium motor spirit (pms) otherwise known as petrol.
In October 2024, the Federal Executive Council (FEC) approved that 450,000 barrels intended for domestic consumption be offered in Naira to Nigerian refineries, with the Dangote Refinery acting as a pilot project.
But findings by our correspondent indicated that the deal which was signed in October 2024 and is expected to lapse at the end of March 2025 might have collapsed.
Sources said this was due to “irreconcilable” differences bothering on product delivery and other issues.
Daily Trust reports that under the scheme which commenced in the first week of October 2024, the NNPCL was expected to supply 385,000 barrels of crude oil to the 650,000 bdp Dangote Refinery located in Ibeju-Lekki Lagos.
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However, findings showed that there has been a consistent low supply of allocations to Dangote Refinery, forcing it to resort to importation.
Daily Trust earlier reported that there has been a sharp decline in the volume of crude allocated to the Naira-for-Crude scheme.
A document reviewed late January indicated that for February 2025, the scheme has been allocated only four cargoes, and for March, just two cargoes totalling 950,000 barrels (1.9 million barrels in total for the month). This represents an allocation of 61,290 barrels per day – far below the 385,000 bpd target under the scheme.
The shortfall has left Dangote Refinery with no option than to import crude oil from outside Nigeria. It recently received 12 million barrels of crude oil from the United States.
There was no official comment yet from Dangote on the reported collapse of the naira for crude deal but a source close to the refinery confirmed that it is true. He did not provide further clarification.
But the NNPC Limited while clarifying the development said it has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery.
Chief Spokesperson of the NNPC, Olufemi Shoneye said, “To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025.
“Discussions are currently ongoing towards emplacing a new contract. Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.
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“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions…”
Experts, Nigerians lament collapse of deal
There are concerns among Nigerians, experts and marketers over the negative implication of the deal on fuel supply and the local currency.
They said the arrangement ordered by the president was responsible for the relative stability recently recorded in the foreign exchange. They said the development would further trigger depreciation of the naira resorting to an increase in prices of petroleum products.
A petroleum industry player, Akinrinade Akinade in a chat with our correspondent warned that the development would affect the prices of petroleum products.
He called for the intervention of President Tinubu who initiated the scheme in the first place.
He said, “I read it like you. It has not been confirmed yet. It was the President that ordered the NNPC to do it. It is not final.”
According to him, the scheme was felt largely “in the value of naira to dollar.”
“It was one of the reasons the dollar had some air space. If that one changes, we might see another devaluation of the naira because the refineries would have to be looking for dollars to source their crude. This will also affect the price of petroleum products,” he said.
Dangote, NNPCL back to negotiation over Naira-for-crude deal
Business
Bitcoin plunges to $80k amid ongoing volatility
Bitcoin plunges to $80k amid ongoing volatility
Bitcoin’s price plummeted to $80,052 late Sunday night, marking a 7% decline over the past 24 hours as uncertainty surrounding U.S. President Donald Trump’s economic policies continues to ripple through the market.
At the time of writing, Bitcoin is trading at approximately $82,200.
The overall cryptocurrency market experienced a 7% drop, reducing its valuation to $2.77 trillion.
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Solana and XRP both recorded 7% losses, while Ethereum fell 8%, trading near the $2,000 mark. Despite the downturn, Bitcoin’s dominance remains steady at 58.2%.
The market’s decline has triggered significant liquidations, with Coinglass data reporting $616 million in liquidations over the past 24 hours, according to crypto.news price tracker.
Bitcoin plunges to $80k amid ongoing volatility
Railway
NRC targets moving 100 containers daily from Lagos to Kaduna, Kano by rail
NRC targets moving 100 containers daily from Lagos to Kaduna, Kano by rail
There are plans to commence movement of containers by rail soon from Lagos port to Kaduna by rail with an initial target of 50 to 100 containers daily.
Managing Director of the Nigerian Railway Corporation, Dr Kayode Opeifa, disclosed this when he received the management team of the ICNL, led by the Managing Director, Mr Omotayo Dada, at the corporation’s headquarters, Ebute Metta, Lagos, on Tuesday.
Only recently, the corporation re-launched the rail cargo train from Apapa port Lagos to Moniya container terminal deport in Ibadan, Oyo State, following a partnership deal with APMT.
The NRC MD had earlier paid a visit to ICNL headquarters in Kaduna, which paved the way for discussion on the resumption of container movement by rail to Kaduna, according to a statement by the corporation.
Opeifa said the corporation was willing to partner with major movers of large containers from across the country.
He said the corporation would continue to design products for companies willing to use the rail to move its cargoes.
He noted that with the ICNL partnership, the corporation hopes to move additional 50 to 100 containers per day from Lagos to Kano via Apapa, Ijoko, Ilorin, Minna and Kaduna.
L-R: Managing Director, Nigerian Railway Corporation, Dr Kayode Opeifa; Managing Director, Inland Containers Nigeria Ltd, Mr Omotayo Dada, and the Head of Commercial Services, Mrs Odetunde King Abigail, during the courtesy call on the NRC MD…on Tuesday.
Earlier, the Director of Operations and Commercial of the corporation, Mr Akin Osinowo, said the corporation was in talks with many manufacturers, including the Dangote Group of Companies and BUA, among others.
He added that the NRC still continues to service Lafarge, taking cement consignments from Ewekoro to Osogbo and Ilorin.
He however said any company or terminal operator partnering with it is meant to add value to rail movement by using their size and status to prospect new customers in order to boost the railway’s haulage capacity.
He said the ICNL is a long standing customer of the corporation, adding that some of the factors that led to the stoppage of cargo movement especially on the narrow gauge are being addressed.
He said issues such as insecurity, especially between Minna and Kaduna, and the washouts of several portions of the rail tracks, among others, were being aggressively addressed either by the corporation’s team of engineers or by the Federal Government.
The NRC management and that of ICNL expressed commitment to continue their engagement and draw a road map for quick commencement of container freight to as far as to Kaduna and Kano on the western line.
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