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Korean Firm to Build 550 mw Plant in Cross River

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  • Korean Firm to Build 550 mw Power Plant in Cross River

A South Korean firm, Kingline Integrated Power Development Limited, is set to build a 550 Megawatts gas fired power plant in Cross River State.

Chief Executive Officer of the company, Mr. Sean Kim, stated this when he visited Governor Ben Ayade in Government House, Calabar.

He said: “We have already done some preliminary checks in Cross River State and the proposed sites meet all of the requirements which is why we are here today. The next phase will be the application for a generation licence, initiating processes for the Environmental Impact Assessment (EIA) and preparations for the project among other necessary bureaucratic processes.”

Kim added: “On financing, about $560 million will be coming in from the company and other investors which include the World Bank, this will be sufficient to get this power plant underway.

“We intend to invest around $10 million during the developing phase and then once we get to the financing closure, together with our investors, we plan to bring in about $150 million in terms of equity. At the same time, we will put together a debt package of around $400 million composed of export credit, agency support from Korea as well as the World Bank and others.”

Kim who appealed for land and security from the state government, described the partnership as one that will be a “win-win and beneficial” as the state will have the opportunity as a shareholder, the value creation on the share, the dividend and tax revenues as well as creation of over 1,000 jobs. He said the local content act will be effective in the hiring of labour for the building of the plant.

Governor Ayade lauded the firm for bringing the projects to the state. He added that the idea of gas-fired turbines was apt because the state’s capital city, Calabar, was designed to be “The epicenter of gas gathering around the southern flank in the national gas master plan.”

“You are doing the right thing, you are coming at the right time as this is the time that you also have the right incentives. The gas to power tariff is completely restructured in such a way that it will support you to buy gas to generate power. And so, I believe that with that scenario, the gas fired turbine will be a good way to go,” Ayade said.

The Governor explained that the choice of Cross River to invest, was not only good but that it also ticked all the boxes needed for business to thrive in the Niger Delta corridor, considering environmental peace, social peace, topography and others variables.”

He assured the firm of massive returns on its investment. “You don’t have to carry a policeman, you don’t need to carry law enforcement to force Cross Riverians to pay utility bills because we are educated, we are very civilized, we are very cultured because we had the earliest contact with civilization as a state,” he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually

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cooking gas cylinder

Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.

This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.

The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.

Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.

This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.

During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.

Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.

While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.

However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.

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Economy

CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.

The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.

Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.

This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.

Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.

While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.

Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.

 

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Economy

President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait

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Geometric Power Plant

After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.

The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.

Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.

He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.

Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.

He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.

The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.

The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.

The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.

He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.

In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.

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