Connect with us

Investment

FG Invests N87.2bn in Fertiliser Production

Published

on

Agriculture
  • FG Invests N87.2bn in Fertiliser Production

The Federal Government through the Nigerian Sovereign Investment Authority, which is the agency managing the Sovereign Wealth Fund, will from next week begin the implementation of a fertiliser project that will enable the country to conserve its foreign exchange by about $1.5bn (about N458bn) in the next three years.

Details of the fertiliser project, which were made available to our correspondent on Friday in Abuja, would see the NSIA and its partners invest a total sum of $286.4m (N87.2bn) in the project for blending of one million metric tonnes of fertiliser.

The SWF, which was set up in 2013 with about $1.55bn, has three pots from which investments can be anchored.

The pots are Future Generation Fund, Infrastructure Fund, and Fiscal Stabilisation Fund.

The NSIA had allocated 20 per cent of the fund to the Stabilisation Fund; 40 per cent to the Future Generation Fund and another 40 per cent to Infrastructure Fund.

Just last week, the National Economic Council gave approval that the sum of $250m (N76.3bn) be injected as additional capital to the SWF.

The fertiliser project, it was learnt, was part of the moves by the agency to increase its investment in domestic infrastructure owing to the immense opportunities in that segment of the economy.

The objective of the project is to deliver fertiliser to farmers in time and at a reasonable price of N5,500 per 50kg bag.

This, according to the project document, is a reduction of between 30 per cent and 40 per cent from current price, with deliveries starting from next week from the blending plants in Kaduna.

This, according to the project document, will enable the Federal Government to eliminate subsidy in the fertiliser sale projected to be about N120bn based on the budgetary provision for fertiliser subsidy in 2017.

Cumulatively, about N720bn is expected to be saved through import substitution on fertiliser within the next three years of the implementation of the project and create thousands of jobs by reviving the local blending plants.

The document read in part, “The objective is to deliver fertiliser to farmers in time and at a reasonable price. The target is N5,500/50kg bag.

“For the wet season, we are targeting one million metric tonnes in five batches of 200,000 tonnes each starting in February this year.”

Speaking on the impact of the project on the economy, the Managing Director of NSIA, Mr. Uche Orji, said the country would begin to see massive harvest of agricultural produce.

He added that the agency would be taking over the Nigerian Commodities Exchange under a pre-privatisation investment arrangement, adding that this would enable the NSIA to inject about $10m into the revival of the exchange.

Orji noted that under the arrangement, the NSIA would revive the commodities exchange by adding value to its operations and making it more attractive to investors before its final privatisation by the Bureau of Public Enterprises.

He said with the taking over of the commodities exchange as well as its investment in the fertiliser plant, the agency would be attracting more investments into the agricultural sector, particularly in the area of storage facilities.

He said, “We are working with the BPE on the commodities exchange. The commodities exchange is not operational; we will invest in its operations and use it as a way of creating infrastructure for agriculture, warehouse, storage, silos and have an exchange that works.

“The privatisation of the Nigerian Commodity Exchange between the BPE and the NSIA is expected to be concluded this year at a cost of $10m.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Investment

Nigeria Targets $10 Billion in Deep-Water Gas Investments with New Tax Incentives

Published

on

Lekki Deep Seaport

The Federal Government has perfected plans to attract $10 billion in new investments in deep-water gas exploration through tax breaks and other incentives.

In the new policy framework forwarded to the National Assembly to be passed into law, the Federal Executive Council (FEC) said about 67% of Nigeria’s offshore gas sector remains undeveloped.

However, the FEC believes that by providing tax credits for new investments in the sector, more global players can be lured to the untapped sector.

In a statement published by Olu Verheijen, special adviser to the president, the government also plans a gas-production allowance for greenfield developments in onshore and shallow-water locations.

“We intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near- to medium-term,” Verheijen said.

According to Verheijen, who also heads the Energy Office of the Presidency, once this is passed into, it would fast-track the development of natural gas, deepen gas usage for transportation and bolster energy security.

It was estimated that global businesses will be spending about $90 billion on deep-water oil and gas projects in coming years, this, Verheijen said is what the country is targeting.

“This is the pool of funds that our reforms are targeting,” she said.

The president has implemented a series of reforms to rejig the nation’s economy and set Nigeria on the right path. In a recent broadcast, the president claimed these reforms have attracted over $30 billion in foreign direct investment.

Despite the changes made to core policies, Nigerians are yet to see its results as earnings remained low and inflation rate remained at an all-time high while economic uncertainties in the face of chronic Naira depreciation have eroded the profitability of businesses.

Continue Reading

Investment

FG Secures $200m Afreximbank Investment For Creative Industry

Published

on

Afreximbank - Investors King

The African Export-Import Bank (Afreximbank) has announced plans to invest a sum of $200 million in the Nigerian creative industry.

The latest development was made known in New York during the “Destination 2030: Nigeria Everywhere” event held at the United Nations General Assembly (UNGA).

Speaking at the event which was organized by Nigeria’s Ministry of Arts, Culture, and the Creative Economy, the President and Chairman of Afreximbank, Professor Benedict Oramah, said that the funding was in line with the bank’s commitment to boost the nation’s creative industry.

He revealed that the latest move, aimed at building a foundation for sustainable economic growth will position the nation as a global leader in the global creative industry.

He said, “investing in the creative industries is about building a foundation for sustainable economic growth and positioning Africa as a global cultural leader.” 

 Speaking further, the Minister of Arts, Culture, and the Creative Economy, Hannatu Musawa, called for the support of investors, development partners, and global partners in the creation of 2 million jobs.

She described the event as a roadmap to transforming Nigeria into a global cultural powerhouse.

She stated, “Destination 2030: Nigeria Everywhere is our roadmap to transforming Nigeria into a global cultural powerhouse. To fully realize this vision, I urge investors, development partners, and global collaborators to join us in creating 2 million jobs and contributing $100 billion to the national GDP.” 

Investors King learned that after the main event of UNGA, Musawa engaged in talks with other investors to boost Nigeria’s cultural and creative industry.

She engaged in discussions with the UN Deputy Secretary-General Amina Mohammed, the Executive Director of the UN Office for Partnerships, U.S. State Department Under Secretary for Public Diplomacy, Lee Satterfield, and Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning.

Continue Reading

Investment

Contractor Speaks About Completion Timeline For Port Harcourt Refinery 

Published

on

Dangote refinery

Following outrage on the recurring delays in the completion of the Port Harcourt Refinery rehabilitation project, the contractor overseeing the facility rehabilitation has said it would soon release an update on when the project will be completed.

The contractor, Maire Tecnimont SpA, announced that it will provide details on the project’s completion by or before October 2.

Responding to a letter from human rights lawyer Femi Falana, who had inquired about the completion timeline for the refinery’s rehabilitation, the contractor, through the law firm Olajide Oyewole LLP, acknowledged Falana’s request and promised to give details next week.

The law firm stated that its client, Tecnimont, had received his letters dated September 17 and 24, 2024 regarding the contract with the Nigerian National Petroleum Company (NNPC) Limited and is considering the inquiries.

According to the law firm, “Our client is considering your letters and they intend to get back to you on or before 2 October 2024.”

The $1.5 billion engineering, procurement, and construction (EPC) contract for the rehabilitation of the Port Harcourt refinery was signed between the Nigerian National Petroleum Corporation (NNPC) – before becoming a public company – and Tecnimont on April 6, 2021.

Timipre Sylva, the former minister of state for petroleum, had initially stated that the rehabilitation would occur in three phases, lasting 18, 24, and 44 months, respectively.

However, despite NNPC’s announcement on December 21, 2023, that the mechanical phase of the refinery’s turnaround maintenance was completed, and the facility was ready, there have been ongoing delays.

On March 15, Mele Kyari, NNPC’s group chief executive officer (GCEO), said that production would begin by the end of that month, but this target was missed.

Kyari later set a new deadline for early August, yet the refinery still did not commence production.

On 5 September, Adedapo Segun, NNPC’s executive vice-president of downstream operations, said that despite the mechanical completion in December 2023, further safety checks were necessary to ensure the refinery’s safe operation.

Segun emphasised that NNPC would not rush into production simply to meet a deadline if there were unresolved safety concerns.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending